Microequities Rising Stars Conference 2009
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2009 “Rising Stars” Microequities Conference
microequities.com.au
Profile of companies participating CLOVER CORPORATION
ASX:CLV (FOOD SCIENCE)
MICROEQUITIES RESEARCH COVERED
Clover Corporation is a life science company which develops innovative function food ingredients used to improve the nutritional qualities of a range of foods including infant nutrition and dietary supplements. Clover Corporation's wholly owned subsidiary, Nu-Mega Ingredients is a world class supplier of Omega-3 DHA sourced from tuna oil. Microequities is forecasting Clover’s PBT to grow by more than 20% for FY09. eServeGlobal ASX:ESV (SOFTWARE) eServeGlobal produces software that helps Telecommunications network operators manage their networks more effectively. eServeGlobal’s products specialize in Re-charging the balance of pre-paid mobile phones, charging for calls service and data in real time, volice mail, SMS messaging and content delivery. eServeGlobal installed base includes 80+ carriers in over 50 countries. The company has particular exposure to emerging market’s which have the fastest rate of subscriber growth. QMASTOR (MINING SOFTWARE)
ASX:QML (SOFTWARE)
MICROEQUITIES RESEARCH COVERED
QMASTOR is a technology company specialized in providing software solutions to the global mining, power generation, and bulk commodities industries. The company produces a number of software solutions including Pit to Port, Pit to Plant and Port Plant. The company recently made its first bolt on acquisition paying 3.5X EBIT for Coal Link Australia. Microequities is forecasting QMASTOR’s PBT to increase by more than 100% for FY09 to $2.2m. DWS LTD ASX:DWS (IT SERVICES) MICROEQUITIES RESEARCH COVERED
DWS Ltd is an IT services firm that provides three core services; Project outsourcing in including management, design and implementation of IT solutions. Co-Sourcing in which DWS works as a “preferred supplier” in conjunction with an organizations in house employees. DWS also works as individual specialists providing specialist staff on specific projects. MANACCOM ASX:MNL (INTERNET & SOFTWARE) Manaccom has two distinctive business divisions; Online Lotteries and a software distribution and publishing division. The Online Lotteries division recently signed a five year agreement with NSW Lotteries Corporation, in which it appointed Mancomm’s Ozlotteries as its exclusive online selling agent. Manacomm’s software distribution business sells a number of wekk known software brands (Trent Micro, Nitro PDF, Net Nanny) to some of the major software retailers in Australia (Havey Norman, Dick Smith, JB Hi Fi, Officeworks). LINDSAY AUSTRALIA ASX:LAU (TRANSPORT) Lindsay Australia is a transport, logistics and rural supply company. The company’s two principal business divisions are transport and rural. The transport division transport around 1.2 million tonnes of freight per annum across 16 freight terminals. The division has a fleet of over 700 vehicles and trailers. It has major customers including Coles, Cadbury, IGA Supermarkets, Woolworths. The Rural division supplies 750 farmers with agricultural products (fertilizers, chemicals, iriigation equipment and packaging). Linndsay recently upgraded its profit guidance for the year to a range of between $3.6 to $4.1m (FY08 NPAT $2.0M).
AMCOM TELECOM ASX:AMM (TELECOMMUNICATIONS) Amcom is a telecommunication services provider operating in two man divisions: Fibre Division which owns and operates an extensive fiber optic network across Australia’s man cities and Amnet which is focused on SME’s and retail clients. Amcom also holds approximately 23% of Retail Broadband provider iiNet (ASX:IIN). Amcom’s management expect the company to increase FY09’s NPAT by more than 25% (excluding iiNet’s contribution and significant items).
IPERNICA ASX:IPR (IP ASSERTION AND MEDIA TECHNOLOGIES) Ipernica origins stem from its activities in IP assertion. The company has over the past few years built a number of strategic partnerships with various international partners that help Ipernica’s client manage their IP technology and assert their IP rights. In March 2008 the company received $20m following a successful settlement against Ericsson and Longreach. Following a strategic review Ipernica acquired Nearmap Pty Ltd, an innovative geospatial media company that produces high resolution aerial photographs that has significant cost advantages over other competing technologies.
2 0 0 9 R IS IN G S TARS MIC RO C AP CO N F ERE N CE
Media partner
‘2009 Rising Stars’ MICRO CAP CONFERENCE Tuesday 2nd June 2009 / Level 4– Room 1/ SYDNEY HILTON (488 George St, NSW 2000)
Morning Sessions TIME: 9:00-9:50 h.
CLOVER CORPORATION
Dr. Ian Brown - CEO
9:50-10:30 h.
ESERVGLOBAL Ltd
Ian Budderry – Executive Chairman
9:50-10:30 h.
Morning Coffee Break
11:00-11:40 h.
QMASTOR LTD
Trent Bagnall - CEO
11:40-12:20 h.
DWS LTD
Lachlan Armstrong - CFO
12:20-13:30 h.
LUNCH BUFFET
Afternoon Sessions 13:30-14:10 h.
MANACCOM CORPORATION
Mike Verveka - CEO
14:10-14:50 h.
LINDSAY AUSTRALIA
Kim Lindsay– MD Graham Johnston- CFO
14:50-15:20 h.
Afternoon Coffee Break
15:20-16:00 h.
AMCOM LTD
Clive Stein- CEO
16:00-16:40 h.
IPERNICA LTD
Graham Griffiths- MD
www.microequities.com.au Unleashing the value of Micro Cap Companies
Media Partner
2009 “Rising Stars” Micro-Cap Conference Sydney, 2 June 2009 Presented by: Dr. Ian Brown
DISCLAIMER The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions. This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. Persons needing advice should consult their stockbroker, bank manager, solicitor, accountant or other independent financial advisor. Certain statements made in this presentation are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Clover Corporation’s current expectations, estimates and projections about the industry in which Clover Corporation operates, and its beliefs and assumptions. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks,” "estimates," and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Clover Corporation, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Clover Corporation cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Clover Corporation only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Clover Corporation will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.
2
1
INTRODUCTION
Clover Corporation (CLV) provides nutritional and functional ingredients for use in foods and specialty applications using proprietary technology. With a focus on the encapsulation and delivery of bioactives, the current primary activities of the company include the provision of HiDHA® omega-3 fish oils/powders and debittered soy ingredients.
Future Food Ingredients (100%)
(50%)
3
A COMPANY COMMITTED TO NEXT GENERATION NUTRITION •
Mission is to identify, develop and commercialise specialty functional and nutritional ingredients with an initial focus on HiDHA® marine oils (long chain omega-3).
•
Clover Corporation was founded in 1988 and listed on the ASX in 1999.
•
Nu-Mega Ingredients was founded as a JV in 2003 and fully acquired in November 2007.
•
Consistently profitable, strong cash position & zero debt.
•
Competitive position in the growing “nutraceutical” market.
•
Strong technical, manufacturing and sales organisation.
•
Focus on proprietary technology, such as microencapsulation.
4
2
SUMMARY OF FINANCIAL PERFORMANCE FY08 FY2008
FY2007
Shares on issue
165.18 million
165.18 million
Total contributed equity
$32.92 million
$32.92 million
Market capitalization
$33.04 million
$17.34 million
Cash total
$10.759 million
$10.960 million
Sales Revenue
$21.619 million
$16.469 million
Total Revenue
$22.928 million
$17.664 million
(# 20.0 c/s)
Clover Corporation is increasing its revenue base and is debt-free
As per Annual Reports
# Last sale 22/5/09
5
SUMMARY OF FINANCIAL PERFORMANCE FY08 FY2008
FY2007
EBITDA
$2.272 million
$537,000
Profit
$4.135 million
$635,000
EPS
2.5 cents/share
0.38 cents/share
Major shareholder
WHSP & Co. Ltd (28.55%)
WHSP & Co. Ltd (28.55%)
Top 20 shareholders
59.75% of shares
55.1% of shares
Dividend of 1 cent per share paid in November 2008 As per Clover Corporation Annual Reports
6
3
FINANCIAL PERFORMANCE: AN EMERGING GROWTH TREND million ($)
5 4 3 2 1 0 FY06
FY07 Net Profit
FY08
Tax Credit As per Clover Corporation Annual Reports
7
Summary Interim Results: strong growth in key areas HY’09
HY’08
Variance (%)
Revenue
$9.603M
$9.989M
Down3.9%
EBIT
$2.064M
$1.169M
Up 76%
NPAT
$1.609M
$0.685M
Up 134%
4
NU-MEGA INGREDIENTS PTY LTD •
Primary interest in the provision of HiDHA® omega-3 tuna oils/powders.
•
Refine crude tuna oils.
•
Prepare high quality oils & powders.
•
Utilise proprietary/patented encapsulation technologies for a range of nutritional oils and other bioactives.
•
Process protects oil from oxidation (“fishy” taste & smell).
•
Major applications in infant formulas, foods & animal feeds.
•
HiDHA® oils reported to have many nutritional & health benefits.
(100%)
9
CLINICAL RESEARCH & PUBLICATIONS
10
5
NU-MEGA SALES & DISTRIBUTION NETWORK
SALES OFFICE
MANUFACTURING SITE
AGENTS
11
WHERE DOES NU-MEGA SELL ITS INGREDIENTS? Australia/New Zealand
39%
Asia
52%
Europe
8%
USA
1%
Growth Opportunites •
•
Europe and North America represent significant growth opportunities. Asia will continue to offer growth as markets develop
Infant formula
Food
Supplement
Animal feed
AGM, November 2008
12
6
RECENT MILESTONES: A PLATFORM FOR THE FUTURE •
Improvements and increased production capacity at the Altona oil refinery.
•
Commercial launch of new ThermoMAX™ encapsulation technology developed in conjunction with Food Science Australia/CSIRO.
•
Secured 5 year supply contract in 2008 with Mead Johnston & Company, a leading global manufacturer and supplier of infant and children’s formula.
•
Improved sales performance.
•
Acquisition of remaining 30% equity in Nu-Mega.
•
Recruitment of selected experienced personnel.
13
DELIVERING ON FY09 PRIORITIES •
Consolidate improved sales in infant formula applications. – Improve the product mix.
•
Expand sales & distribution network.
•
Increase opportunities in food applications.
•
Selectively recruit for growth.
•
Move FFI to profitability
•
Continue development of encapsulation technology.
•
Identify new technical & commercial opportunities.
•
Update company image and communication.
14
7
NU-MEGA: FUTURE PRIORITIES • • • • • • • • •
Increase sales in value added applications. Increase sales & marketing presence. Improve oil quality & increase capacity. Finalise integration of Nu-Mega into Clover Corporation. Expand technology & new product development. Nutritional & clinical research. Identify new complementary bioactive opportunities. Selective recruitment for growth. Expand sales through GTC Nutrition 15
FUTURE FOOD INGREDIENTS (FFI)
Future Food Ingredients (50%)
•
Manufacturing facility located in Moree, NSW.
–
Plant capacity +20,000 t.p.a.
–
MD Warren Hannam
–
Plant Manager, QA & Production staff.
•
Nu-Soya technology exclusively licensed worldwide from Byron Australia.
–
Preparation of soy ingredients without the typical soy taste.
•
Sales, Marketing & Applications for NuSoya™ managed by Nu-Mega Ingredients.
–
Business Development Manager, Sales Personnel, Customer Service & Logistics and Applications Technologists.
16
8
CREATING NEXT GENERATION SOY INGREDIENTS Expanding Product Range •
Range of Enzyme Active Soy ingredients – Flours, Grits, Splits & Flakes
•
Range of Nu- Soya™ ingredients – Using a propriety process to produce whole bean, bland flavoured Soy Ingredients – Flours, Grits, Flakes & Toasted Flakes
•
Certification – Halal, Organic, Kosher, HACCP
17
FUTURE FOOD INGREDIENTS • Increase Nu-Soya™ sales, particularly in Asia. • Increase product range to fully utilize the plant. • Identify specialty nutritional &/or functional applications. • Develop Asia for specialized organic soy ingredients. • Continued applications development. • Expand sales coverage. • Control expenses. • Move to profitability.
2 1.6 1.2 0.8 0.4 0 1H08
1H09 Sales Revenue
18
9
CLOVER CORPORATION: LOOKING TO THE FUTURE •
Meeting the challenge of an unsettled business environment.
•
Modest sales increase anticipated in FY09.
•
A clear focus on controlling expenditure.
•
Looking to continued profitability.
•
Expand the distribution and sales network in the America’s and Europe in association with GTC Nutrition.
•
Further develop sales in infant formula applications.
•
Continue new product and applications development.
19
2009 “Rising Stars” Micro-Cap Conference Sydney, 2 June 2009
THANK YOU Questions?
Media Partner
20
10
Media partner
Microequities 2009 Rising Stars Micro Cap Conference eServGlobal Limited ASX : ESV LSE : ESG Presented by Mr. Ian Buddery (Executive Chairman) SYDNEY HILTON, 2nd of June 2009
Our Role in Essence
Telephone companies run complex communications networks which connect and manage billions of phone calls instantly.
IN software makes the network intelligent – providing services as well as phone-calls. We build that software. eServGlobal specialises in charging and messaging
Re-charging the balance of a pre-paid mobile phone Charging for calls, services and data in real time
Voice mail, SMS messaging and content delivery
Global IN market valued at Convergent billing market:
US$2.6billion (2007) US$0.5billion (2007)
Gartner Dataquest Juniper Research
p. 2 | Copyright © 2009 eServGlobal. All rights reserved.
1
eServGlobal provides exposure to… Developing world
Our revenue: 77% Middle East / Asia
World‟s highest telecom growth rates Middle East / Asia / Africa / Latin Am. Payments revolution
Our revenue: 72% Charging & Recharge
In developing world, telcos are the new banks Charging and recharge drive their cash flow Software revolution
Our revenue: 100% software & related services
Telcos compete through promotions & services Require ability to create personalized offerings Big, sticky customers
Our customers: 100% telephone companies
Replacing network systems is high risk Ongoing support annuities in all cases p. 3 | Copyright © 2009 eServGlobal. All rights reserved.
Installed Base 90 Carriers in 54 Countries
p. 4 | Copyright © 2009 eServGlobal. All rights reserved.
2
Innovative portfolio of products:
Build flexible and creative solutions
p. 5 | Copyright © 2009 eServGlobal. All rights reserved.
Revenue Model
Revenue breakdown
25% 60% 15%
Revenue recognition according to IFRS % completion
Support (3-5 year contracts) Installed base upgrades/expansion New customer implementations
Days delivered vs. Total days in project plan Invoicing milestones at software delivery, provisional acceptance, final acceptance
Software licensed according to subscriber & call capacity Mobile payments platform however is a % of transaction value
p. 6 | Copyright © 2009 eServGlobal. All rights reserved.
3
A history of performance [AUD]
Company established: 1991 IPO: 2000 Consistent relationships, long-term trust, no debt
p. 7 | Copyright © 2009 eServGlobal. All rights reserved.
1 AUD = ~0.74 USD (06 May 09)
Telecoms Market
4
Growth of Mobile Connections & Teledensity Global 7.42% CAGR
Africa 9% CAGR
Global Emerging AP 7.42% CAGR 10% CAGR
170 160 150 140 130 120 110 100
100 80 70 60
2008
2009
2010
2011
2012
Year Global
Emerging AP
Africa
2013
Teledensity from 59% to 80% (6.28% CAGR)
Teledensity Teledensity
‘Emerging AP’ = Asia Pacific, excluding OECD nations, China and India
Global Teledensity (%)
Mobile connections growth (Base unit: 2008 = 100 )
Mobile Telecoms: Subscriber Growth
right hand scale
Data source: Ovum, Dec 2008
„Mobile relatively resistant to macroeconomic factors‟ ‘Mobile services are becoming so affordable and pervasive that people without mobile connectivity today will still seek mobile services and those with a mobile will seek to protect their connection, potentially at the expense of other spending.’ - Ovum, Dec 2008. p. 9 | Copyright © 2009 eServGlobal. All rights reserved.
But Revenue Decline per Subscriber
Revenue Stagnation
Global slow down – effecting new subscriber growth
How to stabilise Margin without sacrificing Revenue?
Source: Informa Telecoms & Media, 2007
p. 10 | Copyright © 2009 eServGlobal. All rights reserved.
5
Telecoms Industry Evolving…
The introduction of IP in the Telecom Industry is changing the competitive landscape:
!
Losing control over the Value Chain
!
Losing revenues from Value Added Services
!
Losing subscriber ownership
p. 11 | Copyright © 2009 eServGlobal. All rights reserved.
An explosion of applications
Differentiation?
Or commoditisation?
p. 12 | Copyright © 2009 eServGlobal. All rights reserved.
6
… Something has changed…
20th Century model
Dozens of markets of millions of people
21st Century model
Millions of markets of dozens of people
Personalisation is Key ! “The 20th Century mass production world was about dozens of markets of millions of people. The 21st Century is all about millions of markets of dozens of people” Joe Kraus – Pioneer of the Internet
p. 13 | Copyright © 2009 eServGlobal. All rights reserved.
Our product approach is driven by our beliefs that…
IP presents a threat to the telco business model of today content and media are diverging it is not advantageous for telcos to try to “own” the content or the apps. Value growth will be found in:
Communications: Enabling social networks, interactions
Content: Enabling personalised content and apps
Converting this to revenue and profit growth will require:
Leveraging the charging relationship for transactions
Leveraging account & network data to personalise offerings
p. 14 | Copyright © 2009 eServGlobal. All rights reserved.
7
New Products
Social Relationship Manager
p. 16 | Copyright © 2009 eServGlobal. All rights reserved.
8
Social Relationship Manager
Social Networking Domain
Carrier Domain
0797458493
0797458303
0797458309
0797383030
0797449203
0797483030
Universal Service Platform 2.0
0793745272
07979783030 0797583030
p. 17 | Copyright © 2009 eServGlobal. All rights reserved.
Acquire New Subscribers
David
Diagram shows one-way friend links
Who is the better target?
Peter
Colin
Derek
Key
Derek – one friend link?
Lee – one friend link?
James – four friend links?
James already has many friends on the network
James‟s friends will persuade him to switch networks
Lee One way Two way
James
Automated Referral Scheme converting Social Influence to $$$
p. 18 | Copyright © 2009 eServGlobal. All rights reserved.
9
p. 19 | Copyright © 2007 2009 eServGlobal. All rights reserved.
Remittance Market International Remittances exceed aid and foreign direct investment Flows reached US$320 billion and estimated to grow to US$700 billion by 2012 Juniper Research study of 4 Feb 09 indicates that the mobile money transfer market in the worst case scenario reaching $73bn by 2011. 0.5 million banks, 1 million ATMs vs. 3 billion mobile subscribers worldwide
Receiving
Remittance
Informal
Debit Cards
Country
Value ($bn)
Channel
Per
Usage Est. (%)
Population %
40%
1.6%
1
India
21.7
2
China
21.3
9.0%
3
Mexico
18.1
19.6%
4
France
12.7
69.2%
5
Philippines
11.6
6
Indonesia
5.2
5.3%
7
Brazil
5.0
61.8%
8
Pakistan
4.0
9
Morocco
3.6
Bangladesh
4.8
10
Others
124.0
TOTAL
232.0
38%
6.3%
37%
0.2%
54%
<10%
Highest sending countries: Middle East, US, UK Top 10 receivers = 45% of total market Over 50% through informal channels
4.1%
50%
Source: Team analysis
p. 20 | Copyright © 2007 2009 eServGlobal. All rights reserved.
10
HomeSend: The Concept
Global hubbing service offering cross border person-to-person transfer Mobile centric from sender to receiver One-time setup to reach the world (on top of world‟s largest GRX network) Single technical and commercial interface Fully compatible with any m-wallet system and bearer Combined solution for: Airtime exchange (airtime to airtime & m-wallet to airtime) Remittance (m-wallet to m-wallet) Roaming recharge – top up (ATM recharge & POS recharge)
p. 21 | Copyright © 2007 2009 eServGlobal. All rights reserved.
HomeSend: Key Differentiators
Mobile Centric from Sender to Receiver Historical Hubbing Business (Belgacom ICS) Interoperable with Different m-Wallet or Recharge Systems & Bearers
Transparent Exchange Rate In Line with Emerging Industry Standards GSMA & World Bank Endorsement p. 22 | Copyright © 2009 eServGlobal. All rights reserved.
11
eServ as a mobile commerce enabler
Today, our systems charge over US$4b every month of telecoms traffic and payments
Mobile transactions & commerce
1/3rd of the world‟s mobile subscribers
Mobile handset is the ATM + POS + eCash device in the developing world 6 times more handsets than bank accounts Operators need solutions, want revenue-sharing ventures
eServ has unique footprint eServ is delivering solutions today
Deep telco + deep financial knowledge
Massive scale, 99.999% reliability Integrated with major banking networks
p. 23 | Copyright © 2009 eServGlobal. All rights reserved.
www.eservglobal.com
p. 24 | Copyright © 2009 eServGlobal. All rights reserved.
12
Media partner
Microequities 2009 Rising Stars Micro Cap Conference QMASTOR Limited ASX : QML Presented by Mr. Trent Bagnall (Managing Director) SYDNEY HILTON, 2nd of June 2009
This presentation contains forward-looking statements concerning the future performance of QMASTOR’s business, its operations, and its financial performance and condition. These forward-looking statements are based on management’s current expectations and judgment. The Company cautions readers that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates, or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including but not limited to economic conditions, technological change, and changes in competitive factors, many of which are beyond the Company’s control.
1
Vision To be the leading bulk materials management information systems and services provider to the global mining, port, power generation & other bulk commodity industries.
Mission To facilitate operational excellence through the application of QMASTOR products in partnership with our customers.
3
PORTFOLIO Software Products: Pit to Port.net® Complete supply chain management
SMS3D.net ® 3D stockpile management
Horizon ™ Advanced Planning and Scheduling
iFuse ® Data Integration and Management
4
2
CLIENTS Strong tier 1 clients diversified across commodities and sectors
5
OPERATIONAL REVIEW
QMASTOR systems are now contracted to manage over 500 million tonnes of bulk commodity movements per annum.
6
3
KEY HIGHLIGHTS 1st Half Highlights Revenue $4.97M, EBITDA $1.44M and Net Profit After Tax $1.07M EPS share growth to 2.66 cents, up 187% Positive cash generation in the half of $324K Half Year Dividend of 1.0 Cents Per Share
7
KEY SALES HIGHLIGHTS Important new sales to Mines & Ports during the current year NCIG (Newcastle) and DBCT (Mackay) 2 Large iron ore Ports in Western Australia Vale Inco Installation at Goro Nickel Mine Major installation at Jim Walter Resources in the USA. JWR will provide entry into the North American market
8
4
KEY STRATEGIC HIGHLIGHTS
Perth, Mackay and South African offices opened and producing revenue The release of Horizon APS and exciting market response Product diversification in scheduling with Horizon APS Customer diversification in ports & infrastructure
9
Advanced Planning & Scheduling system enabling complete supply chain optimisation
For Process Plants; Vessel/Berth scheduling transportation and stockyard scheduling.
Currently being deployed at Onesteel; 2 Iron Ore Ports in WA NCIG, and Jim Walter Resources
10
5
Acquisition of Coal Link Australia completed in May 09
Profitable niche provider of bulk commodity management services.
Acquired at an estimated 3.5 NPAT
Adds to potential QMASTOR customer base
Will enhance QMASTOR IP in the Port logistics space
QML Services will on sell QMASTOR technology to their new and existing client base.
QMASTOR will sell QML services to QMASTOR client base. 11
COMPANY STRATEGY
The need for the company to become sizably bigger Organically growing the company remains the prime focus We are expecting further M&A activity Growing our presence both here and overseas Continuing product innovation to fulfill demand Maintaining a high level of customer service.
12
6
OUTLOOK
On track for guidance of 3.25-4.0 cents per share Slower activity in second half QMASTOR is employing defensive strategies in relation to the GFC including looking seriously at costs Maintaining capability is considered a high priority Organic Growth still remains the focus including international expansion
13
End
7
Media partner
Microequities 2009 Rising Stars Micro Cap Conference DWS Advanced Business Solutions ASX : DWS Presented by Mr. Lachlan Armstrong (CFO) SYDNEY HILTON, 2nd of June 2009
Presentation 1) Intro to DWS & History 2) Our Business Model 3) HY2009 Highlights 4) Regional Update 5) Outlook 6) Summary 7) Q&A
1
Intro to DWS DWS is a professional IT services company that provides IT solutions across the whole SDLC, from a project’s inception, through to post-implementation support and ongoing maintenance.
History Current Presence in VIC, NSW, QLD, SA, ACT
2008
Currently employ 530 people
2008 Jan - Acquired Strategic Data Management (SDM)
2007 July - Acquired Equest Consulting in NSW
2007 April - Acquired GlobalSoft Australia in NSW
2007
2007 Jan - Opened Brisbane office
2006 Jun - Listed on the Australian Stock Exchange (ASX:DWS)
2006
2005
1991
2006 Jan - Acquired Turnaround Solutions to have a NSW presence
1991-2005 - consecutive growth year on year
1991 - Commenced in Melbourne
2
Our Business Model Underpinned by Value How does our business model help us outperform in a recession?
HY2009 Highlights Financial highlights: ■ Total Rev $44.03M ■ EBITDA $10.47M ■ NPAT $7.22M ■ 3.5cent interim dividend ■ Maintained strong balance sheet with zero debt ■ Completed integration of Strategic Data Management into DWS’ existing regional operations ■ Two new non-executive directors to strengthen our Board ■ Finished the H1 539 staff nation wide
3
Regional Update ■
QLD ■
_
■
_
■
NSW ■
_
■
_
■
VIC ■
_
■
_
■
SA & ACT ■
_
■
_
Operational Outlook ■ Current eco environment will present challenges and opportunities ■ Spend in our clients has been maintained YTD ■ Smaller market participants are struggling thereby producing organic expansion opportunities for DWS ■ Some clients are rationalising suppliers thereby creating opportunities for DWS
4
Financial Outlook ■ In H2 FY2009 and in FY2010 the focus is on: ■ Maintaining strong utilisation (key driver of gross profit) ■ Ensuring we maintain a strong balance sheet ■ Cost mitigation across all regions ■ Continued delivery of client satisfaction
Summary Our Model will continue to perform strongly ■ Disciplined business model based on VALUE: ■ Not being opportunistic in our pricing ■ Recruiting carefully ■ Maintaining our long term client relationships ■ Sound fiscal management
5
Media partner
Thank you Q&A
6
Media partner
Microequities 2009 Rising Stars Micro Cap Conference Manaccom Corporation Limited ASX : MNL Presented by Mr. Mike Veverka (Chief Executive Officer) SYDNEY HILTON, 2nd of June 2009
The Business Online Lotteries Division
Distribution and Software Publishing Division
Investment in the growing
Investment in the growing
Online Lotteries Industry
Security Software Industry
1
Revenue $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0
FY 05
FY 06
FY 07
FY 08 Actual Revenue
$37.8 million
EBITDA
$2.87 million
NPAT
FY 08
NPAT $2.0 mil from trading. $0.7 mil from once-off tax benefit.
$2.7 million
EPS
4.7c
Online Lotteries Division •
Retails popular Australian lotteries online via www.ozlotteries.com and in 5 Pacific countries.
•
Exclusive 5 year agreement with NSW Lotteries to 2013 making Ozlotteries the official online channel for NSW Residents.
•
Additional 5 year agreement with Tattersalls to 2013.
•
Partnership Agreement with NineMSN.
•
Unique: The only independent operator permitted to sell lotteries over the Internet.
2
Distribution & Software Publishing Established in 1986 (business acquired Sep 07). Software publisher and distributor. Licensed to market and distribute popular software packages into leading retailers. Exclusive 3 year agreement with McAfee to 2012. Strong relationships with major retailers (Harvey Norman Software Supplier of the Year).
Divisional Split Revenue $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0
(Half year comparison)
Profit before tax
$1,200,000
Online Lotteries
$1,000,000
Distribution
$800,000
Distribution
Online Lotteries
$600,000 $400,000 $200,000 $0
HY Dec 07
HY Dec 08
HY Dec 07
HY Dec 08
• NSW Lotteries contract started AFTER Dec 08. • Distribution business also showing strong growth. McAfee contract expected to improve results.
3
Dividends • 1.0c fully franked paid for FY 08 • 0.5c fully franked paid for HY Dec 08 • Dividends at least 20% NPAT • 43 million shares on issue. • 3.5 million Employee Share Options at 50c 1.2 1.0 0.8 0.6 0.4 0.2 0.0 FY 08
FY 09 (First Half)
Valuation PE NPAT
PE
Market Cap Share Price
2.5
5
12.5m
30c
2.5 2.5
10 15
25.0m 37.5m
60c 90c
3.0 3.0 3.0
5 10 15
15m 30m 45m
35c 70c $1.05
3.5 3.5 3.5
5 10 15
17.5m 35.0m 52.5m
40c 80c $1.20
4
Current Share Price 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00
Share price level if PE = 15 (based on NPAT $2.5 mil) Share price level if PE = 10
Share price level if PE = 5
What will drive growth? 1. UK online lotteries estimated to generate AUD$750 mil (7% market share.) 2. Australian online lotteries estimated to generate AUD$110 mil (3% market share.) 3. Manaccom has 4.5 year left to run on exclusive NSW Lotteries deal. 4. Distribution & Software Publishing division to capitalise on the exclusive McAfee deal (3 years left to run). 5. Good market for IT acquisitions.
5
Balance Sheet
Debt / Equity
32% 31 Dec 08 Current Assets
$8.7 million
Non-current Assets
13.7
Total Assets
22.4
Current Liabilities
6.2
Non-current Liabilities
3.7
Total Liabilities
9.9
NET ASSETS
12.5
The Board Chairman: David Barwick Deputy Chairman: Ian Mackay CEO & Executive Director: Mike Veverka
6
Summary Positioning for Quick Recovery of share price. Solid factors driving profit in 2010. Aiming for dividend growth. For further information, please contact:
Mike Veverka (07) 3331 5999
7
Media partner
Microequities 2009 Rising Stars Micro Cap Conference Lindsay Australia Limited ASX : LAU Presented by Mr. Kim Lindsay (Managing Director) & Mr. Graham Johnston (CFO) SYDNEY HILTON, 2nd of June 2009
Outline of Presentation •About Lindsay Australia •Equity Structure •Structure/Products •Financials
1
About Lindsay Australia • We are an integrated transport, logistics and rural supply company with a specific focus on servicing major customers in the food processing, food services, fresh produce, rural and horticultural sectors
About Lindsay Australia • Emerged in current form in December 2002 • At this time existing ASX listed company which owned half of the Rural Business acquired the half of the Rural Business that it did not own from Amcor and the Transport Business from the Lindsay family • Lindsay Transport established in 1953 • Lindsay Rural established in 1984
2
Equity Structure • 153 million shares on issue • Market Capitalisation at 18 cents per share –$28 million • Three major shareholder groups • Amcor 16% • Mulawa Holdings 17% (2005) • Lindsay Family 26%
Products/Services • Two major products/services • Transport –principally refrigerated produce and processed food • Rural Merchandising –major productspackaging, nutrients, chemicals, fertiliser • Some of the customer base is common to both Transport and Rural • Approximately 90% of revenue derived from food or food related customers
3
Products/Services • While food related products are stable there is seasonality in the revenue cycle • Revenue and profitability correlate with harvest times • Peak harvest times are April-June and October-December
Products/Services • With common customers objective is to provide a total Rural solution • Costs savings achievable for customers when all products can be provided • Managers are trained in both Transport and Rural where applicable
4
Products/Services • Group operates from 34 locations from Adelaide to Innisfail • Expansion direction at present is in Northern Australia in areas with consistent rainfall • Customers include all major grocery retailers and major chilled and frozen food manufacturers
5
Fleet • •
B-doubles (refrigerated and dry) Single trailer (refrigerated and dry)
•
Pick up and delivery fleet (refrigerated and dry)
•
Repair and maintenance in-house specialist or authorised external service providers
•
Workshop and wash bays
•
No off balance sheet financing
•
All prime movers and most rigids have satellite tracking
•
National Transport Office controls all truck movements on a 24/7 basis
6
Fleet TYPE Prime Movers Vans
NO. 223 286
Trailers & Tautliners
131
Rigids Forklifts
92 110
Transport Operational Statistics • Annual Freight>1.5 million Tonnes • Total kilometres >45 million per annum • Annual Fuel >28 million Litres • 550 Employees • All drivers covered by Workplace Agreements • Fatigue, Maintenance and Mass accredited
7
Transport Expansion • Mildura & Robinvale area in 2003 • Adelaide in 2006 • Proposing to increase coverage in North Queensland • Shift to B/Doubles now approximately 113 trailers sets in fleet • Increase in ambient freight fleet
Transport Environment • Lindsay Transport is a member of the Federal Government’s Greenhouse Challenge and Energy Efficiency Opportunities Scheme • Both schemes require public reporting • We have a Four-pronged strategy 1. Use of technology 2. Preventative maintenance 3. Load maximisation (B/Doubles) 4. Route planning
8
Transport Key Drivers • Operational performance (on-time delivery) • Customer yield • Balanced freight • Load Maximisation (B/Doubles) • Embracing fatigue management • Proper equipment maintenance and specifications • Ability to pass on fuel price movements
Rural Operational Statistics • Approximately 24 million packages sold each year • 110 Employees • HACCP and Agsafe accredited • Product mix is Packaging 29% Fertilser 24%, Chemicals 20%, Nutrients 10%, Other 17%
9
Rural Expansion • • • • • •
Mildura and Robinvale 2003 Renmark 2004 Shepparton 2007 Innisfail 2008 Gatton 2008 Focus is to expand packaging in conjunction with Amcor
Rural Key Drivers • Sales Growth • Customer Service • Margin maintenance and improvement • Stock control • Labour and Property cost control
10
Financial Financial Year Revenue EBITDA EBITDA % Finance Costs Profit after Tax Depreciation & Amortisation
2008 2007 $000’s $000’s 196,219 184,531 17,835 18,423 9.1% 10.0% 4,078 3,662 2,003 3,477 10,830
10,022
Financial Financial Year 2008 Revenue Segment Profit Segment Assets
Transport Rural $000’s $000’s 129,621 67,253 7,733 4,449 82,585 31,402
11
Financial • Financial Year 2009 ASX guidance $3.6 to $4.1 Million • Half year ended 31 December After tax Profit of $2.427 million 2007 $1.289 million • Total revenue increased 19% to $115 million • EBITDA 10.8 million at 9.4%
Balance Sheet Total assets 31 December Equity 31 December Net debt 31 December Gearing (net debt/net debt + equity)
$000’s 114,460 36,053 51,919 57%
12
Media partner
Microequities 2009 Rising Stars Micro Cap Conference Amcom Telecommunications Limited ASX : AMM Presented by Mr. Clive Stein (Managing Director) SYDNEY HILTON, 2nd of June 2009
Amcom’s Telco Position Essential fibre-based internet & networks to its customers delivered through fibre based networks Owns over 1,500km of fibre network infrastructure and accesses over 1,000 buildings The 2nd largest city based fibre network operator outside the eastern seaboard Amcom’s primary customers Government departments Other Telco providers Corporates across all industry segments 2
1
Corporate Structure
3
Sustaining Strong Growth Revenue
EBITDA
EBIT ** $m
** $m
** $m
44.5
14.2
36.7
16% 19.1
FY07
21.6
FY08
8.5
25.0
5.8
50% 5.7
6.3 3.8
4.7 1H09
9.0
35%
10.4
2.6
FY07
FY08
1H09
FY07
FY08
1H09
Strong performance in fibre division driving growth in earnings EBITDA margin – expanded from 29% to 34% Momentum to continue with guidance of at least 25% NPAT* growth for FY09 * NPAT guidance excludes equity accounted earnings of associates and significant items ** Exclude Projects
4
2
Recurring Billing Base Recurring Billing Base
Transparent view of performance
Two year contracts
$46.7m billings over next 12 months plus variable billings
Lead indicator guides future performance - Guidance
5
Financial Performance 1H09 $m
Var %
1H09
1H08
Revenue
25.0
21.8
15
Rev. (excl projects)
24.9
20.9
19
EBITDA
8.5
6.3
35
NPBT
4.9
3.4
42
NPAT*
3.5
2.4
48
Equity Accounting Earnings
2.6
2.0
26
NPAT**
6.1
4.4
38
(1.5)
-
Significant Item: Buy back & sell down costs (net of tax)
NPAT (as reported)
4.6
4.4
EPS
0.85c
0.87c
Dividend
0.3c
0.3c
3
* Net profit after tax before equity accounted earnings and significant item ** Net profit after tax including equity accounted earnings but before significant item
6
3
Cash Flow $m
1H09
1H08
8.5
6.3
Tax
(1.3)
(1.4)
Interest
EBITDA
(0.8)
(0.5)
iiNet dividend
1.4
1.3
Working capital
1.6
0.6
Operating Cash Flow
9.5
6.3
Increase in operating cash flow of 49% to $9.5m
Increasing operating cash flow reflective of annuity style of revenue base
7
Balance Sheet 1H09
1H08
Shareholders’ equity
103.1m
91.6m
Net debt
15.6m
11.6m
NTA per share
16.4c
15.1c
Interest cover (EBITDA/Interest)
11 x
16 x
Gearing*
13%
11%
*Net debt /(Net debt+shareholders’ equity)
Low gearing providing balance sheet flexibility $30m Bank facilities in place long term
8
4
How Customers use Amcom’s network Internet
Head Office
Interstate Office Fibre Network Branch Office
Data Centre
9
Strategic Assets
Perth
Adelaide
Darwin
1,260km fibre 954 buildings 30 DSLAMs
180km fibre 118 buildings 7 DSLAMs
60km fibre 12 buildings
Replacement cost > $100m 10
5
Diverse Revenue Base Wholesale (Telco)
Wholesale (Reseller)
Education
Government
Financial Services
16 %
13 %
4%
25 %
5%
“ Fibre, an essential service for today’s business ” Mining & Resources
Retail & Trade
Building & Construction
Professional Services
16 %
5%
5%
12 %
Fibre Division – Driving profit growth $m
Var %
1H09
1H08
Revenue
17.0
14.4
18
Rev. (excl projects)
16.9
13.5
26
EBITDA
8.1
6.3
29
EBIT
5.8
4.3
35
EBITDA/Revenue Margin
47%
44%
3
Strong annualised sales of $5.5m in 1H09 Revenue excluding projects up 26% Margin improvement driven by revenue growth with low incremental cost Growing recurring revenue generated across diverse customer base
12
6
Open Share Register Futuris 50% exit from Amcom Register
Selldown - Strong demand from Institutional Investors
Open Register
Current Share Register
13
Summary Opportunity to drive market share in Perth & Adelaide with low incremental cost Strong lead indicators -$46.7m recurring billing spread across a diverse customer base Established and proven business model Growing demand for data services, especially fibre “essential service” Strong balance sheet FY09 guidance maintained - grow NPAT* at least 25% to $7.1m, plus earnings of associates * NPAT guidance excludes equity accounted earnings of associates and significant items
14
7
Disclaimer Some of the statements in this presentation constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. These forward-looking statements reflect Amcom Telecommunications Limited’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Amcom Telecommunications Limited’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from Amcom Telecommunications Limited’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this presentation with caution. This management presentation may not be copied or otherwise reproduced.
15
8
Media partner
Microequities 2009 Rising Stars Micro Cap Conference ipernica ltd ASX : IPR
Presented by Mr Graham Griffiths (Managing Director) SYDNEY HILTON, 2nd of June 2009
Business Focus
Investment in innovative IP
Identify and negotiate a commercial interest in valuable IP
Defence of IP rights
2
1
Business Framework No. 1 IP commercialisation company in Asia-Pacific
3
Financial Performance FY 2007
FY 2008
Dec 31 ’08 Half Year
$21.3M $5.5M
$45.2M
$2.6M
$17.9M
$0.1M
Net Profit After Tax Earnings Per Share
$4.4M 1.79c
$15.2M
$0.0M
5.8c
0.02c
Net Equity
$12M
Revenue Profit Before Tax
Dividend Per Share Cash at Bank
$28M 1.0c $21.6M (at 31 Mar 2009)
$31M -
• No external bank debt, no capital raising plans • Strong foundation for sustainable profit & growth
4
2
Capital Structure & Shareholders Shares
322.6 million
Employee Share Option Program
30.7 million (av. price 17.3c)
Investor Options
12.5 million (price 40c, expiry Nov 2011) Major Shareholders (as at 30 April 2009)
Ross Norgard (Non-Exec Chairman IPR)
14.9%
Stuart Nixon (CEO NearMap)
12.1%
Planetek Italia s.r.l.
4.9%
Alison Farrelly
3.6%
Paul Farrelly (former CFO)
3.1%
ETR Nominees
2.8%
5
Board of Directors Ross Norgard (Non Exec. Chairman) • Former managing partner of a “Big 4” accounting firm • Multiple Directorships eg BRM
Karl-Christian Agerup (Non Exec. Director)
• International media and venture capital executive career • Director of Schibsted ASA (Scandanavian media group)
Dr Mary O’Kane (Non Exec. Director)) • • • •
Chairperson Spatial Cooperative Research Centre Past board member of CSIRO and F.H. Faulding Panel member Federal Govt National Innovation System Review Chief Scientist NSW
Conrad Crisafulli (Non Exec. Director) • Former Director Curtin University • Director of several start up technology ventures
Graham Griffiths (Managing Director) • 30+ years experience commercialising technology • Held senior positions with AT&T (US) and NCR (Asia Pacific)
6
3
ipernica Management Team Graham Griffiths (Managing Director) • 30+ years experience commercialising technology • Held senior positions with AT&T (US) and NCR (Asia Pacific)
Trevor O’Connor (Chief Financial Officer & Company Secretary) : CA • Experience in all facets of financial accounting across several industries • Skills in due diligence, valuation, financial modelling, capital raisings, etc
Jonathan Lawe Davies (General Counsel) : LLB, Master of Laws (IP), BSc • Specialist in IP and IT Law • Over 14 years of international technology licensing • Former legal counsel Amazon.com
7
• 100% owned IPR subsidiary 8
4
Innovation
Cost effective solution to create & serve very high resolution aerial photomaps with multiple angle views 9
Captured over time
10
5
Importance of Frequency, Resolution & Multi View
11
Who Cares? : Govt & Industry
Infrastructure planning
Climate change
Land Use
Insurance
Asset Management
Emergency Response 12
6
Who Cares?
Real estate
etc
The Consumer
Tourism
Advertising 13
Board of Directors Rob Newman (Non Exec Director ) • High Tech entrepreneur in Australia and Silicon Valley • Built two businesses with a combined value of $200M • Venture capital investor
Karl-Christian Agerup (Non Exec Director)
• International media and venture capital executive career • Director of Schibsted ASA (Scandanavian media group)
Stuart Nixon (Chief Executive Officer & Founder Nearmap) • Internationally recognized for setting global standard for geospatial image formatting (ECW format) • CEO & Founder of Earth Resource Mapping Ltd (ER Mapper)
Ross Norgard (Non Exec Director) • Former managing partner of a “Big 4” accounting firm • Multiple Directorships eg IPR, BRM
Graham Griffiths (Managing Director ipernica) • 30+ years experience commercialising technology • Held senior positions with AT&T (US) and NCR (Asia Pacific) 14
7
Management Team Stuart Nixon (Chief Executive Officer & Founder) • Internationally recognized for setting global standard for geospatial image formatting (ECW format) • CEO & Founder of Earth Resource Mapping Ltd (ER Mapper) • Honorary Fellow of Spatial Sciences Institute of Australia
Guy Perkins (Chief Operating Officer) : Bachelor of Engineering • International geospatial industry leader • Former Senior Vice President, Asia Pacific, ERDAS Pty Ltd • Former CEO & Director (US & Europe) Operations ER Mapper • Former Managing Director ESRI Australia
Simon Cope (Chief Technical Officer) : BSc Computer Systems and Electronics • Industry respected geospatial technology leader • Former Chief Technologist, ERDAS Pty Ltd • Former Chief Software Architect, ER Mapper Ltd 15
The Opportunity • • • • •
Revolutionary Photomap “Capture – Process – Serve” process Booming global new media (US$400 billion) industry Consumer demand for location sensitive content (& advertising) Govt infrastructure spending initiatives Compelling return on investment for many commercial applications • Media company geospatial M&A – Microsoft purchased Vexcel – Google purchased Image America
16
8
R&D and Deployment • End to end “Capture – Process – Serve” solution in final stages of development / quality assurance • Further Patent applications progressing • Capture system CASA certified • Test City : 18 month time series of very high resolution photomaps of Perth & surrounds captured • Capture rollout to other Australian cities underway • Commercial release of web portal Q4 calendar 2009 • Highly scalable for international deployment 17
9
microequities.com.au
Profile of companies participating CLOVER CORPORATION
ASX:CLV (FOOD SCIENCE)
MICROEQUITIES RESEARCH COVERED
Clover Corporation is a life science company which develops innovative function food ingredients used to improve the nutritional qualities of a range of foods including infant nutrition and dietary supplements. Clover Corporation's wholly owned subsidiary, Nu-Mega Ingredients is a world class supplier of Omega-3 DHA sourced from tuna oil. Microequities is forecasting Clover’s PBT to grow by more than 20% for FY09. eServeGlobal ASX:ESV (SOFTWARE) eServeGlobal produces software that helps Telecommunications network operators manage their networks more effectively. eServeGlobal’s products specialize in Re-charging the balance of pre-paid mobile phones, charging for calls service and data in real time, volice mail, SMS messaging and content delivery. eServeGlobal installed base includes 80+ carriers in over 50 countries. The company has particular exposure to emerging market’s which have the fastest rate of subscriber growth. QMASTOR (MINING SOFTWARE)
ASX:QML (SOFTWARE)
MICROEQUITIES RESEARCH COVERED
QMASTOR is a technology company specialized in providing software solutions to the global mining, power generation, and bulk commodities industries. The company produces a number of software solutions including Pit to Port, Pit to Plant and Port Plant. The company recently made its first bolt on acquisition paying 3.5X EBIT for Coal Link Australia. Microequities is forecasting QMASTOR’s PBT to increase by more than 100% for FY09 to $2.2m. DWS LTD ASX:DWS (IT SERVICES) MICROEQUITIES RESEARCH COVERED
DWS Ltd is an IT services firm that provides three core services; Project outsourcing in including management, design and implementation of IT solutions. Co-Sourcing in which DWS works as a “preferred supplier” in conjunction with an organizations in house employees. DWS also works as individual specialists providing specialist staff on specific projects. MANACCOM ASX:MNL (INTERNET & SOFTWARE) Manaccom has two distinctive business divisions; Online Lotteries and a software distribution and publishing division. The Online Lotteries division recently signed a five year agreement with NSW Lotteries Corporation, in which it appointed Mancomm’s Ozlotteries as its exclusive online selling agent. Manacomm’s software distribution business sells a number of wekk known software brands (Trent Micro, Nitro PDF, Net Nanny) to some of the major software retailers in Australia (Havey Norman, Dick Smith, JB Hi Fi, Officeworks). LINDSAY AUSTRALIA ASX:LAU (TRANSPORT) Lindsay Australia is a transport, logistics and rural supply company. The company’s two principal business divisions are transport and rural. The transport division transport around 1.2 million tonnes of freight per annum across 16 freight terminals. The division has a fleet of over 700 vehicles and trailers. It has major customers including Coles, Cadbury, IGA Supermarkets, Woolworths. The Rural division supplies 750 farmers with agricultural products (fertilizers, chemicals, iriigation equipment and packaging). Linndsay recently upgraded its profit guidance for the year to a range of between $3.6 to $4.1m (FY08 NPAT $2.0M).
AMCOM TELECOM ASX:AMM (TELECOMMUNICATIONS) Amcom is a telecommunication services provider operating in two man divisions: Fibre Division which owns and operates an extensive fiber optic network across Australia’s man cities and Amnet which is focused on SME’s and retail clients. Amcom also holds approximately 23% of Retail Broadband provider iiNet (ASX:IIN). Amcom’s management expect the company to increase FY09’s NPAT by more than 25% (excluding iiNet’s contribution and significant items).
IPERNICA ASX:IPR (IP ASSERTION AND MEDIA TECHNOLOGIES) Ipernica origins stem from its activities in IP assertion. The company has over the past few years built a number of strategic partnerships with various international partners that help Ipernica’s client manage their IP technology and assert their IP rights. In March 2008 the company received $20m following a successful settlement against Ericsson and Longreach. Following a strategic review Ipernica acquired Nearmap Pty Ltd, an innovative geospatial media company that produces high resolution aerial photographs that has significant cost advantages over other competing technologies.
2 0 0 9 R IS IN G S TARS MIC RO C AP CO N F ERE N CE
Media partner
‘2009 Rising Stars’ MICRO CAP CONFERENCE Tuesday 2nd June 2009 / Level 4– Room 1/ SYDNEY HILTON (488 George St, NSW 2000)
Morning Sessions TIME: 9:00-9:50 h.
CLOVER CORPORATION
Dr. Ian Brown - CEO
9:50-10:30 h.
ESERVGLOBAL Ltd
Ian Budderry – Executive Chairman
9:50-10:30 h.
Morning Coffee Break
11:00-11:40 h.
QMASTOR LTD
Trent Bagnall - CEO
11:40-12:20 h.
DWS LTD
Lachlan Armstrong - CFO
12:20-13:30 h.
LUNCH BUFFET
Afternoon Sessions 13:30-14:10 h.
MANACCOM CORPORATION
Mike Verveka - CEO
14:10-14:50 h.
LINDSAY AUSTRALIA
Kim Lindsay– MD Graham Johnston- CFO
14:50-15:20 h.
Afternoon Coffee Break
15:20-16:00 h.
AMCOM LTD
Clive Stein- CEO
16:00-16:40 h.
IPERNICA LTD
Graham Griffiths- MD
www.microequities.com.au Unleashing the value of Micro Cap Companies
Media Partner
2009 “Rising Stars” Micro-Cap Conference Sydney, 2 June 2009 Presented by: Dr. Ian Brown
DISCLAIMER The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions. This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. Persons needing advice should consult their stockbroker, bank manager, solicitor, accountant or other independent financial advisor. Certain statements made in this presentation are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Clover Corporation’s current expectations, estimates and projections about the industry in which Clover Corporation operates, and its beliefs and assumptions. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks,” "estimates," and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Clover Corporation, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Clover Corporation cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Clover Corporation only as of the date of this presentation. The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Clover Corporation will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.
2
1
INTRODUCTION
Clover Corporation (CLV) provides nutritional and functional ingredients for use in foods and specialty applications using proprietary technology. With a focus on the encapsulation and delivery of bioactives, the current primary activities of the company include the provision of HiDHA® omega-3 fish oils/powders and debittered soy ingredients.
Future Food Ingredients (100%)
(50%)
3
A COMPANY COMMITTED TO NEXT GENERATION NUTRITION •
Mission is to identify, develop and commercialise specialty functional and nutritional ingredients with an initial focus on HiDHA® marine oils (long chain omega-3).
•
Clover Corporation was founded in 1988 and listed on the ASX in 1999.
•
Nu-Mega Ingredients was founded as a JV in 2003 and fully acquired in November 2007.
•
Consistently profitable, strong cash position & zero debt.
•
Competitive position in the growing “nutraceutical” market.
•
Strong technical, manufacturing and sales organisation.
•
Focus on proprietary technology, such as microencapsulation.
4
2
SUMMARY OF FINANCIAL PERFORMANCE FY08 FY2008
FY2007
Shares on issue
165.18 million
165.18 million
Total contributed equity
$32.92 million
$32.92 million
Market capitalization
$33.04 million
$17.34 million
Cash total
$10.759 million
$10.960 million
Sales Revenue
$21.619 million
$16.469 million
Total Revenue
$22.928 million
$17.664 million
(# 20.0 c/s)
Clover Corporation is increasing its revenue base and is debt-free
As per Annual Reports
# Last sale 22/5/09
5
SUMMARY OF FINANCIAL PERFORMANCE FY08 FY2008
FY2007
EBITDA
$2.272 million
$537,000
Profit
$4.135 million
$635,000
EPS
2.5 cents/share
0.38 cents/share
Major shareholder
WHSP & Co. Ltd (28.55%)
WHSP & Co. Ltd (28.55%)
Top 20 shareholders
59.75% of shares
55.1% of shares
Dividend of 1 cent per share paid in November 2008 As per Clover Corporation Annual Reports
6
3
FINANCIAL PERFORMANCE: AN EMERGING GROWTH TREND million ($)
5 4 3 2 1 0 FY06
FY07 Net Profit
FY08
Tax Credit As per Clover Corporation Annual Reports
7
Summary Interim Results: strong growth in key areas HY’09
HY’08
Variance (%)
Revenue
$9.603M
$9.989M
Down3.9%
EBIT
$2.064M
$1.169M
Up 76%
NPAT
$1.609M
$0.685M
Up 134%
4
NU-MEGA INGREDIENTS PTY LTD •
Primary interest in the provision of HiDHA® omega-3 tuna oils/powders.
•
Refine crude tuna oils.
•
Prepare high quality oils & powders.
•
Utilise proprietary/patented encapsulation technologies for a range of nutritional oils and other bioactives.
•
Process protects oil from oxidation (“fishy” taste & smell).
•
Major applications in infant formulas, foods & animal feeds.
•
HiDHA® oils reported to have many nutritional & health benefits.
(100%)
9
CLINICAL RESEARCH & PUBLICATIONS
10
5
NU-MEGA SALES & DISTRIBUTION NETWORK
SALES OFFICE
MANUFACTURING SITE
AGENTS
11
WHERE DOES NU-MEGA SELL ITS INGREDIENTS? Australia/New Zealand
39%
Asia
52%
Europe
8%
USA
1%
Growth Opportunites •
•
Europe and North America represent significant growth opportunities. Asia will continue to offer growth as markets develop
Infant formula
Food
Supplement
Animal feed
AGM, November 2008
12
6
RECENT MILESTONES: A PLATFORM FOR THE FUTURE •
Improvements and increased production capacity at the Altona oil refinery.
•
Commercial launch of new ThermoMAX™ encapsulation technology developed in conjunction with Food Science Australia/CSIRO.
•
Secured 5 year supply contract in 2008 with Mead Johnston & Company, a leading global manufacturer and supplier of infant and children’s formula.
•
Improved sales performance.
•
Acquisition of remaining 30% equity in Nu-Mega.
•
Recruitment of selected experienced personnel.
13
DELIVERING ON FY09 PRIORITIES •
Consolidate improved sales in infant formula applications. – Improve the product mix.
•
Expand sales & distribution network.
•
Increase opportunities in food applications.
•
Selectively recruit for growth.
•
Move FFI to profitability
•
Continue development of encapsulation technology.
•
Identify new technical & commercial opportunities.
•
Update company image and communication.
14
7
NU-MEGA: FUTURE PRIORITIES • • • • • • • • •
Increase sales in value added applications. Increase sales & marketing presence. Improve oil quality & increase capacity. Finalise integration of Nu-Mega into Clover Corporation. Expand technology & new product development. Nutritional & clinical research. Identify new complementary bioactive opportunities. Selective recruitment for growth. Expand sales through GTC Nutrition 15
FUTURE FOOD INGREDIENTS (FFI)
Future Food Ingredients (50%)
•
Manufacturing facility located in Moree, NSW.
–
Plant capacity +20,000 t.p.a.
–
MD Warren Hannam
–
Plant Manager, QA & Production staff.
•
Nu-Soya technology exclusively licensed worldwide from Byron Australia.
–
Preparation of soy ingredients without the typical soy taste.
•
Sales, Marketing & Applications for NuSoya™ managed by Nu-Mega Ingredients.
–
Business Development Manager, Sales Personnel, Customer Service & Logistics and Applications Technologists.
16
8
CREATING NEXT GENERATION SOY INGREDIENTS Expanding Product Range •
Range of Enzyme Active Soy ingredients – Flours, Grits, Splits & Flakes
•
Range of Nu- Soya™ ingredients – Using a propriety process to produce whole bean, bland flavoured Soy Ingredients – Flours, Grits, Flakes & Toasted Flakes
•
Certification – Halal, Organic, Kosher, HACCP
17
FUTURE FOOD INGREDIENTS • Increase Nu-Soya™ sales, particularly in Asia. • Increase product range to fully utilize the plant. • Identify specialty nutritional &/or functional applications. • Develop Asia for specialized organic soy ingredients. • Continued applications development. • Expand sales coverage. • Control expenses. • Move to profitability.
2 1.6 1.2 0.8 0.4 0 1H08
1H09 Sales Revenue
18
9
CLOVER CORPORATION: LOOKING TO THE FUTURE •
Meeting the challenge of an unsettled business environment.
•
Modest sales increase anticipated in FY09.
•
A clear focus on controlling expenditure.
•
Looking to continued profitability.
•
Expand the distribution and sales network in the America’s and Europe in association with GTC Nutrition.
•
Further develop sales in infant formula applications.
•
Continue new product and applications development.
19
2009 “Rising Stars” Micro-Cap Conference Sydney, 2 June 2009
THANK YOU Questions?
Media Partner
20
10
Media partner
Microequities 2009 Rising Stars Micro Cap Conference eServGlobal Limited ASX : ESV LSE : ESG Presented by Mr. Ian Buddery (Executive Chairman) SYDNEY HILTON, 2nd of June 2009
Our Role in Essence
Telephone companies run complex communications networks which connect and manage billions of phone calls instantly.
IN software makes the network intelligent – providing services as well as phone-calls. We build that software. eServGlobal specialises in charging and messaging
Re-charging the balance of a pre-paid mobile phone Charging for calls, services and data in real time
Voice mail, SMS messaging and content delivery
Global IN market valued at Convergent billing market:
US$2.6billion (2007) US$0.5billion (2007)
Gartner Dataquest Juniper Research
p. 2 | Copyright © 2009 eServGlobal. All rights reserved.
1
eServGlobal provides exposure to… Developing world
Our revenue: 77% Middle East / Asia
World‟s highest telecom growth rates Middle East / Asia / Africa / Latin Am. Payments revolution
Our revenue: 72% Charging & Recharge
In developing world, telcos are the new banks Charging and recharge drive their cash flow Software revolution
Our revenue: 100% software & related services
Telcos compete through promotions & services Require ability to create personalized offerings Big, sticky customers
Our customers: 100% telephone companies
Replacing network systems is high risk Ongoing support annuities in all cases p. 3 | Copyright © 2009 eServGlobal. All rights reserved.
Installed Base 90 Carriers in 54 Countries
p. 4 | Copyright © 2009 eServGlobal. All rights reserved.
2
Innovative portfolio of products:
Build flexible and creative solutions
p. 5 | Copyright © 2009 eServGlobal. All rights reserved.
Revenue Model
Revenue breakdown
25% 60% 15%
Revenue recognition according to IFRS % completion
Support (3-5 year contracts) Installed base upgrades/expansion New customer implementations
Days delivered vs. Total days in project plan Invoicing milestones at software delivery, provisional acceptance, final acceptance
Software licensed according to subscriber & call capacity Mobile payments platform however is a % of transaction value
p. 6 | Copyright © 2009 eServGlobal. All rights reserved.
3
A history of performance [AUD]
Company established: 1991 IPO: 2000 Consistent relationships, long-term trust, no debt
p. 7 | Copyright © 2009 eServGlobal. All rights reserved.
1 AUD = ~0.74 USD (06 May 09)
Telecoms Market
4
Growth of Mobile Connections & Teledensity Global 7.42% CAGR
Africa 9% CAGR
Global Emerging AP 7.42% CAGR 10% CAGR
170 160 150 140 130 120 110 100
100 80 70 60
2008
2009
2010
2011
2012
Year Global
Emerging AP
Africa
2013
Teledensity from 59% to 80% (6.28% CAGR)
Teledensity Teledensity
‘Emerging AP’ = Asia Pacific, excluding OECD nations, China and India
Global Teledensity (%)
Mobile connections growth (Base unit: 2008 = 100 )
Mobile Telecoms: Subscriber Growth
right hand scale
Data source: Ovum, Dec 2008
„Mobile relatively resistant to macroeconomic factors‟ ‘Mobile services are becoming so affordable and pervasive that people without mobile connectivity today will still seek mobile services and those with a mobile will seek to protect their connection, potentially at the expense of other spending.’ - Ovum, Dec 2008. p. 9 | Copyright © 2009 eServGlobal. All rights reserved.
But Revenue Decline per Subscriber
Revenue Stagnation
Global slow down – effecting new subscriber growth
How to stabilise Margin without sacrificing Revenue?
Source: Informa Telecoms & Media, 2007
p. 10 | Copyright © 2009 eServGlobal. All rights reserved.
5
Telecoms Industry Evolving…
The introduction of IP in the Telecom Industry is changing the competitive landscape:
!
Losing control over the Value Chain
!
Losing revenues from Value Added Services
!
Losing subscriber ownership
p. 11 | Copyright © 2009 eServGlobal. All rights reserved.
An explosion of applications
Differentiation?
Or commoditisation?
p. 12 | Copyright © 2009 eServGlobal. All rights reserved.
6
… Something has changed…
20th Century model
Dozens of markets of millions of people
21st Century model
Millions of markets of dozens of people
Personalisation is Key ! “The 20th Century mass production world was about dozens of markets of millions of people. The 21st Century is all about millions of markets of dozens of people” Joe Kraus – Pioneer of the Internet
p. 13 | Copyright © 2009 eServGlobal. All rights reserved.
Our product approach is driven by our beliefs that…
IP presents a threat to the telco business model of today content and media are diverging it is not advantageous for telcos to try to “own” the content or the apps. Value growth will be found in:
Communications: Enabling social networks, interactions
Content: Enabling personalised content and apps
Converting this to revenue and profit growth will require:
Leveraging the charging relationship for transactions
Leveraging account & network data to personalise offerings
p. 14 | Copyright © 2009 eServGlobal. All rights reserved.
7
New Products
Social Relationship Manager
p. 16 | Copyright © 2009 eServGlobal. All rights reserved.
8
Social Relationship Manager
Social Networking Domain
Carrier Domain
0797458493
0797458303
0797458309
0797383030
0797449203
0797483030
Universal Service Platform 2.0
0793745272
07979783030 0797583030
p. 17 | Copyright © 2009 eServGlobal. All rights reserved.
Acquire New Subscribers
David
Diagram shows one-way friend links
Who is the better target?
Peter
Colin
Derek
Key
Derek – one friend link?
Lee – one friend link?
James – four friend links?
James already has many friends on the network
James‟s friends will persuade him to switch networks
Lee One way Two way
James
Automated Referral Scheme converting Social Influence to $$$
p. 18 | Copyright © 2009 eServGlobal. All rights reserved.
9
p. 19 | Copyright © 2007 2009 eServGlobal. All rights reserved.
Remittance Market International Remittances exceed aid and foreign direct investment Flows reached US$320 billion and estimated to grow to US$700 billion by 2012 Juniper Research study of 4 Feb 09 indicates that the mobile money transfer market in the worst case scenario reaching $73bn by 2011. 0.5 million banks, 1 million ATMs vs. 3 billion mobile subscribers worldwide
Receiving
Remittance
Informal
Debit Cards
Country
Value ($bn)
Channel
Per
Usage Est. (%)
Population %
40%
1.6%
1
India
21.7
2
China
21.3
9.0%
3
Mexico
18.1
19.6%
4
France
12.7
69.2%
5
Philippines
11.6
6
Indonesia
5.2
5.3%
7
Brazil
5.0
61.8%
8
Pakistan
4.0
9
Morocco
3.6
Bangladesh
4.8
10
Others
124.0
TOTAL
232.0
38%
6.3%
37%
0.2%
54%
<10%
Highest sending countries: Middle East, US, UK Top 10 receivers = 45% of total market Over 50% through informal channels
4.1%
50%
Source: Team analysis
p. 20 | Copyright © 2007 2009 eServGlobal. All rights reserved.
10
HomeSend: The Concept
Global hubbing service offering cross border person-to-person transfer Mobile centric from sender to receiver One-time setup to reach the world (on top of world‟s largest GRX network) Single technical and commercial interface Fully compatible with any m-wallet system and bearer Combined solution for: Airtime exchange (airtime to airtime & m-wallet to airtime) Remittance (m-wallet to m-wallet) Roaming recharge – top up (ATM recharge & POS recharge)
p. 21 | Copyright © 2007 2009 eServGlobal. All rights reserved.
HomeSend: Key Differentiators
Mobile Centric from Sender to Receiver Historical Hubbing Business (Belgacom ICS) Interoperable with Different m-Wallet or Recharge Systems & Bearers
Transparent Exchange Rate In Line with Emerging Industry Standards GSMA & World Bank Endorsement p. 22 | Copyright © 2009 eServGlobal. All rights reserved.
11
eServ as a mobile commerce enabler
Today, our systems charge over US$4b every month of telecoms traffic and payments
Mobile transactions & commerce
1/3rd of the world‟s mobile subscribers
Mobile handset is the ATM + POS + eCash device in the developing world 6 times more handsets than bank accounts Operators need solutions, want revenue-sharing ventures
eServ has unique footprint eServ is delivering solutions today
Deep telco + deep financial knowledge
Massive scale, 99.999% reliability Integrated with major banking networks
p. 23 | Copyright © 2009 eServGlobal. All rights reserved.
www.eservglobal.com
p. 24 | Copyright © 2009 eServGlobal. All rights reserved.
12
Media partner
Microequities 2009 Rising Stars Micro Cap Conference QMASTOR Limited ASX : QML Presented by Mr. Trent Bagnall (Managing Director) SYDNEY HILTON, 2nd of June 2009
This presentation contains forward-looking statements concerning the future performance of QMASTOR’s business, its operations, and its financial performance and condition. These forward-looking statements are based on management’s current expectations and judgment. The Company cautions readers that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates, or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including but not limited to economic conditions, technological change, and changes in competitive factors, many of which are beyond the Company’s control.
1
Vision To be the leading bulk materials management information systems and services provider to the global mining, port, power generation & other bulk commodity industries.
Mission To facilitate operational excellence through the application of QMASTOR products in partnership with our customers.
3
PORTFOLIO Software Products: Pit to Port.net® Complete supply chain management
SMS3D.net ® 3D stockpile management
Horizon ™ Advanced Planning and Scheduling
iFuse ® Data Integration and Management
4
2
CLIENTS Strong tier 1 clients diversified across commodities and sectors
5
OPERATIONAL REVIEW
QMASTOR systems are now contracted to manage over 500 million tonnes of bulk commodity movements per annum.
6
3
KEY HIGHLIGHTS 1st Half Highlights Revenue $4.97M, EBITDA $1.44M and Net Profit After Tax $1.07M EPS share growth to 2.66 cents, up 187% Positive cash generation in the half of $324K Half Year Dividend of 1.0 Cents Per Share
7
KEY SALES HIGHLIGHTS Important new sales to Mines & Ports during the current year NCIG (Newcastle) and DBCT (Mackay) 2 Large iron ore Ports in Western Australia Vale Inco Installation at Goro Nickel Mine Major installation at Jim Walter Resources in the USA. JWR will provide entry into the North American market
8
4
KEY STRATEGIC HIGHLIGHTS
Perth, Mackay and South African offices opened and producing revenue The release of Horizon APS and exciting market response Product diversification in scheduling with Horizon APS Customer diversification in ports & infrastructure
9
Advanced Planning & Scheduling system enabling complete supply chain optimisation
For Process Plants; Vessel/Berth scheduling transportation and stockyard scheduling.
Currently being deployed at Onesteel; 2 Iron Ore Ports in WA NCIG, and Jim Walter Resources
10
5
Acquisition of Coal Link Australia completed in May 09
Profitable niche provider of bulk commodity management services.
Acquired at an estimated 3.5 NPAT
Adds to potential QMASTOR customer base
Will enhance QMASTOR IP in the Port logistics space
QML Services will on sell QMASTOR technology to their new and existing client base.
QMASTOR will sell QML services to QMASTOR client base. 11
COMPANY STRATEGY
The need for the company to become sizably bigger Organically growing the company remains the prime focus We are expecting further M&A activity Growing our presence both here and overseas Continuing product innovation to fulfill demand Maintaining a high level of customer service.
12
6
OUTLOOK
On track for guidance of 3.25-4.0 cents per share Slower activity in second half QMASTOR is employing defensive strategies in relation to the GFC including looking seriously at costs Maintaining capability is considered a high priority Organic Growth still remains the focus including international expansion
13
End
7
Media partner
Microequities 2009 Rising Stars Micro Cap Conference DWS Advanced Business Solutions ASX : DWS Presented by Mr. Lachlan Armstrong (CFO) SYDNEY HILTON, 2nd of June 2009
Presentation 1) Intro to DWS & History 2) Our Business Model 3) HY2009 Highlights 4) Regional Update 5) Outlook 6) Summary 7) Q&A
1
Intro to DWS DWS is a professional IT services company that provides IT solutions across the whole SDLC, from a project’s inception, through to post-implementation support and ongoing maintenance.
History Current Presence in VIC, NSW, QLD, SA, ACT
2008
Currently employ 530 people
2008 Jan - Acquired Strategic Data Management (SDM)
2007 July - Acquired Equest Consulting in NSW
2007 April - Acquired GlobalSoft Australia in NSW
2007
2007 Jan - Opened Brisbane office
2006 Jun - Listed on the Australian Stock Exchange (ASX:DWS)
2006
2005
1991
2006 Jan - Acquired Turnaround Solutions to have a NSW presence
1991-2005 - consecutive growth year on year
1991 - Commenced in Melbourne
2
Our Business Model Underpinned by Value How does our business model help us outperform in a recession?
HY2009 Highlights Financial highlights: ■ Total Rev $44.03M ■ EBITDA $10.47M ■ NPAT $7.22M ■ 3.5cent interim dividend ■ Maintained strong balance sheet with zero debt ■ Completed integration of Strategic Data Management into DWS’ existing regional operations ■ Two new non-executive directors to strengthen our Board ■ Finished the H1 539 staff nation wide
3
Regional Update ■
QLD ■
_
■
_
■
NSW ■
_
■
_
■
VIC ■
_
■
_
■
SA & ACT ■
_
■
_
Operational Outlook ■ Current eco environment will present challenges and opportunities ■ Spend in our clients has been maintained YTD ■ Smaller market participants are struggling thereby producing organic expansion opportunities for DWS ■ Some clients are rationalising suppliers thereby creating opportunities for DWS
4
Financial Outlook ■ In H2 FY2009 and in FY2010 the focus is on: ■ Maintaining strong utilisation (key driver of gross profit) ■ Ensuring we maintain a strong balance sheet ■ Cost mitigation across all regions ■ Continued delivery of client satisfaction
Summary Our Model will continue to perform strongly ■ Disciplined business model based on VALUE: ■ Not being opportunistic in our pricing ■ Recruiting carefully ■ Maintaining our long term client relationships ■ Sound fiscal management
5
Media partner
Thank you Q&A
6
Media partner
Microequities 2009 Rising Stars Micro Cap Conference Manaccom Corporation Limited ASX : MNL Presented by Mr. Mike Veverka (Chief Executive Officer) SYDNEY HILTON, 2nd of June 2009
The Business Online Lotteries Division
Distribution and Software Publishing Division
Investment in the growing
Investment in the growing
Online Lotteries Industry
Security Software Industry
1
Revenue $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0
FY 05
FY 06
FY 07
FY 08 Actual Revenue
$37.8 million
EBITDA
$2.87 million
NPAT
FY 08
NPAT $2.0 mil from trading. $0.7 mil from once-off tax benefit.
$2.7 million
EPS
4.7c
Online Lotteries Division •
Retails popular Australian lotteries online via www.ozlotteries.com and in 5 Pacific countries.
•
Exclusive 5 year agreement with NSW Lotteries to 2013 making Ozlotteries the official online channel for NSW Residents.
•
Additional 5 year agreement with Tattersalls to 2013.
•
Partnership Agreement with NineMSN.
•
Unique: The only independent operator permitted to sell lotteries over the Internet.
2
Distribution & Software Publishing Established in 1986 (business acquired Sep 07). Software publisher and distributor. Licensed to market and distribute popular software packages into leading retailers. Exclusive 3 year agreement with McAfee to 2012. Strong relationships with major retailers (Harvey Norman Software Supplier of the Year).
Divisional Split Revenue $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0
(Half year comparison)
Profit before tax
$1,200,000
Online Lotteries
$1,000,000
Distribution
$800,000
Distribution
Online Lotteries
$600,000 $400,000 $200,000 $0
HY Dec 07
HY Dec 08
HY Dec 07
HY Dec 08
• NSW Lotteries contract started AFTER Dec 08. • Distribution business also showing strong growth. McAfee contract expected to improve results.
3
Dividends • 1.0c fully franked paid for FY 08 • 0.5c fully franked paid for HY Dec 08 • Dividends at least 20% NPAT • 43 million shares on issue. • 3.5 million Employee Share Options at 50c 1.2 1.0 0.8 0.6 0.4 0.2 0.0 FY 08
FY 09 (First Half)
Valuation PE NPAT
PE
Market Cap Share Price
2.5
5
12.5m
30c
2.5 2.5
10 15
25.0m 37.5m
60c 90c
3.0 3.0 3.0
5 10 15
15m 30m 45m
35c 70c $1.05
3.5 3.5 3.5
5 10 15
17.5m 35.0m 52.5m
40c 80c $1.20
4
Current Share Price 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00
Share price level if PE = 15 (based on NPAT $2.5 mil) Share price level if PE = 10
Share price level if PE = 5
What will drive growth? 1. UK online lotteries estimated to generate AUD$750 mil (7% market share.) 2. Australian online lotteries estimated to generate AUD$110 mil (3% market share.) 3. Manaccom has 4.5 year left to run on exclusive NSW Lotteries deal. 4. Distribution & Software Publishing division to capitalise on the exclusive McAfee deal (3 years left to run). 5. Good market for IT acquisitions.
5
Balance Sheet
Debt / Equity
32% 31 Dec 08 Current Assets
$8.7 million
Non-current Assets
13.7
Total Assets
22.4
Current Liabilities
6.2
Non-current Liabilities
3.7
Total Liabilities
9.9
NET ASSETS
12.5
The Board Chairman: David Barwick Deputy Chairman: Ian Mackay CEO & Executive Director: Mike Veverka
6
Summary Positioning for Quick Recovery of share price. Solid factors driving profit in 2010. Aiming for dividend growth. For further information, please contact:
Mike Veverka (07) 3331 5999
7
Media partner
Microequities 2009 Rising Stars Micro Cap Conference Lindsay Australia Limited ASX : LAU Presented by Mr. Kim Lindsay (Managing Director) & Mr. Graham Johnston (CFO) SYDNEY HILTON, 2nd of June 2009
Outline of Presentation •About Lindsay Australia •Equity Structure •Structure/Products •Financials
1
About Lindsay Australia • We are an integrated transport, logistics and rural supply company with a specific focus on servicing major customers in the food processing, food services, fresh produce, rural and horticultural sectors
About Lindsay Australia • Emerged in current form in December 2002 • At this time existing ASX listed company which owned half of the Rural Business acquired the half of the Rural Business that it did not own from Amcor and the Transport Business from the Lindsay family • Lindsay Transport established in 1953 • Lindsay Rural established in 1984
2
Equity Structure • 153 million shares on issue • Market Capitalisation at 18 cents per share –$28 million • Three major shareholder groups • Amcor 16% • Mulawa Holdings 17% (2005) • Lindsay Family 26%
Products/Services • Two major products/services • Transport –principally refrigerated produce and processed food • Rural Merchandising –major productspackaging, nutrients, chemicals, fertiliser • Some of the customer base is common to both Transport and Rural • Approximately 90% of revenue derived from food or food related customers
3
Products/Services • While food related products are stable there is seasonality in the revenue cycle • Revenue and profitability correlate with harvest times • Peak harvest times are April-June and October-December
Products/Services • With common customers objective is to provide a total Rural solution • Costs savings achievable for customers when all products can be provided • Managers are trained in both Transport and Rural where applicable
4
Products/Services • Group operates from 34 locations from Adelaide to Innisfail • Expansion direction at present is in Northern Australia in areas with consistent rainfall • Customers include all major grocery retailers and major chilled and frozen food manufacturers
5
Fleet • •
B-doubles (refrigerated and dry) Single trailer (refrigerated and dry)
•
Pick up and delivery fleet (refrigerated and dry)
•
Repair and maintenance in-house specialist or authorised external service providers
•
Workshop and wash bays
•
No off balance sheet financing
•
All prime movers and most rigids have satellite tracking
•
National Transport Office controls all truck movements on a 24/7 basis
6
Fleet TYPE Prime Movers Vans
NO. 223 286
Trailers & Tautliners
131
Rigids Forklifts
92 110
Transport Operational Statistics • Annual Freight>1.5 million Tonnes • Total kilometres >45 million per annum • Annual Fuel >28 million Litres • 550 Employees • All drivers covered by Workplace Agreements • Fatigue, Maintenance and Mass accredited
7
Transport Expansion • Mildura & Robinvale area in 2003 • Adelaide in 2006 • Proposing to increase coverage in North Queensland • Shift to B/Doubles now approximately 113 trailers sets in fleet • Increase in ambient freight fleet
Transport Environment • Lindsay Transport is a member of the Federal Government’s Greenhouse Challenge and Energy Efficiency Opportunities Scheme • Both schemes require public reporting • We have a Four-pronged strategy 1. Use of technology 2. Preventative maintenance 3. Load maximisation (B/Doubles) 4. Route planning
8
Transport Key Drivers • Operational performance (on-time delivery) • Customer yield • Balanced freight • Load Maximisation (B/Doubles) • Embracing fatigue management • Proper equipment maintenance and specifications • Ability to pass on fuel price movements
Rural Operational Statistics • Approximately 24 million packages sold each year • 110 Employees • HACCP and Agsafe accredited • Product mix is Packaging 29% Fertilser 24%, Chemicals 20%, Nutrients 10%, Other 17%
9
Rural Expansion • • • • • •
Mildura and Robinvale 2003 Renmark 2004 Shepparton 2007 Innisfail 2008 Gatton 2008 Focus is to expand packaging in conjunction with Amcor
Rural Key Drivers • Sales Growth • Customer Service • Margin maintenance and improvement • Stock control • Labour and Property cost control
10
Financial Financial Year Revenue EBITDA EBITDA % Finance Costs Profit after Tax Depreciation & Amortisation
2008 2007 $000’s $000’s 196,219 184,531 17,835 18,423 9.1% 10.0% 4,078 3,662 2,003 3,477 10,830
10,022
Financial Financial Year 2008 Revenue Segment Profit Segment Assets
Transport Rural $000’s $000’s 129,621 67,253 7,733 4,449 82,585 31,402
11
Financial • Financial Year 2009 ASX guidance $3.6 to $4.1 Million • Half year ended 31 December After tax Profit of $2.427 million 2007 $1.289 million • Total revenue increased 19% to $115 million • EBITDA 10.8 million at 9.4%
Balance Sheet Total assets 31 December Equity 31 December Net debt 31 December Gearing (net debt/net debt + equity)
$000’s 114,460 36,053 51,919 57%
12
Media partner
Microequities 2009 Rising Stars Micro Cap Conference Amcom Telecommunications Limited ASX : AMM Presented by Mr. Clive Stein (Managing Director) SYDNEY HILTON, 2nd of June 2009
Amcom’s Telco Position Essential fibre-based internet & networks to its customers delivered through fibre based networks Owns over 1,500km of fibre network infrastructure and accesses over 1,000 buildings The 2nd largest city based fibre network operator outside the eastern seaboard Amcom’s primary customers Government departments Other Telco providers Corporates across all industry segments 2
1
Corporate Structure
3
Sustaining Strong Growth Revenue
EBITDA
EBIT ** $m
** $m
** $m
44.5
14.2
36.7
16% 19.1
FY07
21.6
FY08
8.5
25.0
5.8
50% 5.7
6.3 3.8
4.7 1H09
9.0
35%
10.4
2.6
FY07
FY08
1H09
FY07
FY08
1H09
Strong performance in fibre division driving growth in earnings EBITDA margin – expanded from 29% to 34% Momentum to continue with guidance of at least 25% NPAT* growth for FY09 * NPAT guidance excludes equity accounted earnings of associates and significant items ** Exclude Projects
4
2
Recurring Billing Base Recurring Billing Base
Transparent view of performance
Two year contracts
$46.7m billings over next 12 months plus variable billings
Lead indicator guides future performance - Guidance
5
Financial Performance 1H09 $m
Var %
1H09
1H08
Revenue
25.0
21.8
15
Rev. (excl projects)
24.9
20.9
19
EBITDA
8.5
6.3
35
NPBT
4.9
3.4
42
NPAT*
3.5
2.4
48
Equity Accounting Earnings
2.6
2.0
26
NPAT**
6.1
4.4
38
(1.5)
-
Significant Item: Buy back & sell down costs (net of tax)
NPAT (as reported)
4.6
4.4
EPS
0.85c
0.87c
Dividend
0.3c
0.3c
3
* Net profit after tax before equity accounted earnings and significant item ** Net profit after tax including equity accounted earnings but before significant item
6
3
Cash Flow $m
1H09
1H08
8.5
6.3
Tax
(1.3)
(1.4)
Interest
EBITDA
(0.8)
(0.5)
iiNet dividend
1.4
1.3
Working capital
1.6
0.6
Operating Cash Flow
9.5
6.3
Increase in operating cash flow of 49% to $9.5m
Increasing operating cash flow reflective of annuity style of revenue base
7
Balance Sheet 1H09
1H08
Shareholders’ equity
103.1m
91.6m
Net debt
15.6m
11.6m
NTA per share
16.4c
15.1c
Interest cover (EBITDA/Interest)
11 x
16 x
Gearing*
13%
11%
*Net debt /(Net debt+shareholders’ equity)
Low gearing providing balance sheet flexibility $30m Bank facilities in place long term
8
4
How Customers use Amcom’s network Internet
Head Office
Interstate Office Fibre Network Branch Office
Data Centre
9
Strategic Assets
Perth
Adelaide
Darwin
1,260km fibre 954 buildings 30 DSLAMs
180km fibre 118 buildings 7 DSLAMs
60km fibre 12 buildings
Replacement cost > $100m 10
5
Diverse Revenue Base Wholesale (Telco)
Wholesale (Reseller)
Education
Government
Financial Services
16 %
13 %
4%
25 %
5%
“ Fibre, an essential service for today’s business ” Mining & Resources
Retail & Trade
Building & Construction
Professional Services
16 %
5%
5%
12 %
Fibre Division – Driving profit growth $m
Var %
1H09
1H08
Revenue
17.0
14.4
18
Rev. (excl projects)
16.9
13.5
26
EBITDA
8.1
6.3
29
EBIT
5.8
4.3
35
EBITDA/Revenue Margin
47%
44%
3
Strong annualised sales of $5.5m in 1H09 Revenue excluding projects up 26% Margin improvement driven by revenue growth with low incremental cost Growing recurring revenue generated across diverse customer base
12
6
Open Share Register Futuris 50% exit from Amcom Register
Selldown - Strong demand from Institutional Investors
Open Register
Current Share Register
13
Summary Opportunity to drive market share in Perth & Adelaide with low incremental cost Strong lead indicators -$46.7m recurring billing spread across a diverse customer base Established and proven business model Growing demand for data services, especially fibre “essential service” Strong balance sheet FY09 guidance maintained - grow NPAT* at least 25% to $7.1m, plus earnings of associates * NPAT guidance excludes equity accounted earnings of associates and significant items
14
7
Disclaimer Some of the statements in this presentation constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. These forward-looking statements reflect Amcom Telecommunications Limited’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Amcom Telecommunications Limited’s control. Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward-looking statements include known and unknown risks. Because actual results could differ materially from Amcom Telecommunications Limited’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this presentation with caution. This management presentation may not be copied or otherwise reproduced.
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8
Media partner
Microequities 2009 Rising Stars Micro Cap Conference ipernica ltd ASX : IPR
Presented by Mr Graham Griffiths (Managing Director) SYDNEY HILTON, 2nd of June 2009
Business Focus
Investment in innovative IP
Identify and negotiate a commercial interest in valuable IP
Defence of IP rights
2
1
Business Framework No. 1 IP commercialisation company in Asia-Pacific
3
Financial Performance FY 2007
FY 2008
Dec 31 ’08 Half Year
$21.3M $5.5M
$45.2M
$2.6M
$17.9M
$0.1M
Net Profit After Tax Earnings Per Share
$4.4M 1.79c
$15.2M
$0.0M
5.8c
0.02c
Net Equity
$12M
Revenue Profit Before Tax
Dividend Per Share Cash at Bank
$28M 1.0c $21.6M (at 31 Mar 2009)
$31M -
• No external bank debt, no capital raising plans • Strong foundation for sustainable profit & growth
4
2
Capital Structure & Shareholders Shares
322.6 million
Employee Share Option Program
30.7 million (av. price 17.3c)
Investor Options
12.5 million (price 40c, expiry Nov 2011) Major Shareholders (as at 30 April 2009)
Ross Norgard (Non-Exec Chairman IPR)
14.9%
Stuart Nixon (CEO NearMap)
12.1%
Planetek Italia s.r.l.
4.9%
Alison Farrelly
3.6%
Paul Farrelly (former CFO)
3.1%
ETR Nominees
2.8%
5
Board of Directors Ross Norgard (Non Exec. Chairman) • Former managing partner of a “Big 4” accounting firm • Multiple Directorships eg BRM
Karl-Christian Agerup (Non Exec. Director)
• International media and venture capital executive career • Director of Schibsted ASA (Scandanavian media group)
Dr Mary O’Kane (Non Exec. Director)) • • • •
Chairperson Spatial Cooperative Research Centre Past board member of CSIRO and F.H. Faulding Panel member Federal Govt National Innovation System Review Chief Scientist NSW
Conrad Crisafulli (Non Exec. Director) • Former Director Curtin University • Director of several start up technology ventures
Graham Griffiths (Managing Director) • 30+ years experience commercialising technology • Held senior positions with AT&T (US) and NCR (Asia Pacific)
6
3
ipernica Management Team Graham Griffiths (Managing Director) • 30+ years experience commercialising technology • Held senior positions with AT&T (US) and NCR (Asia Pacific)
Trevor O’Connor (Chief Financial Officer & Company Secretary) : CA • Experience in all facets of financial accounting across several industries • Skills in due diligence, valuation, financial modelling, capital raisings, etc
Jonathan Lawe Davies (General Counsel) : LLB, Master of Laws (IP), BSc • Specialist in IP and IT Law • Over 14 years of international technology licensing • Former legal counsel Amazon.com
7
• 100% owned IPR subsidiary 8
4
Innovation
Cost effective solution to create & serve very high resolution aerial photomaps with multiple angle views 9
Captured over time
10
5
Importance of Frequency, Resolution & Multi View
11
Who Cares? : Govt & Industry
Infrastructure planning
Climate change
Land Use
Insurance
Asset Management
Emergency Response 12
6
Who Cares?
Real estate
etc
The Consumer
Tourism
Advertising 13
Board of Directors Rob Newman (Non Exec Director ) • High Tech entrepreneur in Australia and Silicon Valley • Built two businesses with a combined value of $200M • Venture capital investor
Karl-Christian Agerup (Non Exec Director)
• International media and venture capital executive career • Director of Schibsted ASA (Scandanavian media group)
Stuart Nixon (Chief Executive Officer & Founder Nearmap) • Internationally recognized for setting global standard for geospatial image formatting (ECW format) • CEO & Founder of Earth Resource Mapping Ltd (ER Mapper)
Ross Norgard (Non Exec Director) • Former managing partner of a “Big 4” accounting firm • Multiple Directorships eg IPR, BRM
Graham Griffiths (Managing Director ipernica) • 30+ years experience commercialising technology • Held senior positions with AT&T (US) and NCR (Asia Pacific) 14
7
Management Team Stuart Nixon (Chief Executive Officer & Founder) • Internationally recognized for setting global standard for geospatial image formatting (ECW format) • CEO & Founder of Earth Resource Mapping Ltd (ER Mapper) • Honorary Fellow of Spatial Sciences Institute of Australia
Guy Perkins (Chief Operating Officer) : Bachelor of Engineering • International geospatial industry leader • Former Senior Vice President, Asia Pacific, ERDAS Pty Ltd • Former CEO & Director (US & Europe) Operations ER Mapper • Former Managing Director ESRI Australia
Simon Cope (Chief Technical Officer) : BSc Computer Systems and Electronics • Industry respected geospatial technology leader • Former Chief Technologist, ERDAS Pty Ltd • Former Chief Software Architect, ER Mapper Ltd 15
The Opportunity • • • • •
Revolutionary Photomap “Capture – Process – Serve” process Booming global new media (US$400 billion) industry Consumer demand for location sensitive content (& advertising) Govt infrastructure spending initiatives Compelling return on investment for many commercial applications • Media company geospatial M&A – Microsoft purchased Vexcel – Google purchased Image America
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R&D and Deployment • End to end “Capture – Process – Serve” solution in final stages of development / quality assurance • Further Patent applications progressing • Capture system CASA certified • Test City : 18 month time series of very high resolution photomaps of Perth & surrounds captured • Capture rollout to other Australian cities underway • Commercial release of web portal Q4 calendar 2009 • Highly scalable for international deployment 17
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