1 Raising the standard Half Year Results Presentation Period Ended 31 December 2004 Ross Wraight, Chief Executive Officer Tony Scotton, Chief Operating.

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Presentation transcript:

1 Raising the standard Half Year Results Presentation Period Ended 31 December 2004 Ross Wraight, Chief Executive Officer Tony Scotton, Chief Operating Officer Geoff Richardson, Chief Financial Officer 23 February 2005 ASX Code: SAI SAI Global Limited ABN:

2 Agenda 1.Highlights and Market Conditions 2.CRS Acquisition 3.Financial Overview 4Operations 5.Outlook

3 1. Highlights Ross Wraight Chief Executive Officer

4 l Continued revenue and profit growth: –Compared to pro-forma first half last year: –Revenue up 6.2% to $51.7 million –NPAT up 28.7% to $5.2 million –Compared to actual first half last year: –Revenue up 56% –NPAT up 81% l EPS of 5.2 cents, up 26.8% from pro-forma 4.1 cents last year and up 79.3% on actual EPS last year l Strong operating cash flow - $6.8 million for half year l Higher dividend cents fully franked compared to 3.4 cents last year Highlights

5 l High pay-out ratio sustainable, whilst retaining funds for acquisition opportunities l Business Publishing and Assurance Services had solid growth in revenue and profit. l Professional Services grew revenue and profit on a normalized basis. l CRS acquisition completed in January 2005 Highlights

6 Market Conditions l Demand for SAI Global’s products and services remained strong – new products and services such as risk management and OHS drove Publishing and Assurance growth. l Improved market conditions for Professional Services - focus on business improvement products drove growth. l Continuing market rationalization. l Continuing movement towards global service providers in Assurance.

7 l Financial: –Revenue $5.0 million –EBIT $0.78 million –Price (net) $5.64 million –EBIT Multiple7.2x l Customers across the USA including Pratt Industries, Cessna Aircraft Company and Swift Transportation. l Strong positioning in aerospace and automotive markets. l Sound management structure and skills (key managers locked in) – 15 employees. l Fully integrated with current USA Assurance business by 30 June. 2. CRS Acquisition

8 Geoff Richardson Chief Financial Officer 3. Financial Overview

9 Financial Summary

10 Operating Cash Flow

11 Financial Summary - Actuals

12 Normalized Result

13 Key Performance Indicators

14 Tony Scotton Chief Operating Officer 4. Operations

15 Business Publishing Division

16 l Continued revenue, profit & margin growth. l Focus on consolidation of gains in web capability & customer functionality made last year and growing internet based transactions. l Revenue growth driven by price, subscription services and revised content (risk management, storage and distribution of dangerous goods, gas standards). l 62% of revenue now ordered on-line (up from 58%). l Higher EBITDA & margins due to hard copy to electronic migration and cost savings through shop closures. l Added ANSI standards to collection and completed Austroads web platform. l Second half outlook - continued revenue and profit growth. Business Publishing

17 Professional Services Division

18 l On a normalized basis, both revenue and profit grew. l Focus on growth following a year of consolidation and restructuring of the Australian operations. l Diversification of product range into business improvement now generating growth. l Commenced development of e-learning platform – prelude to entry into compliance training. l Excel Partnership (USA) solid revenue and profit growth. l Second half outlook – continued revenue and profit growth. Professional Services

19 Assurance Services Division

20 l Strong revenue, profit and margin growth. l Growth mainly organic (7.5%) with acquisitions adding 1.5%. l Geographic growth focus continues in North America, North Asia and Europe. l Focus on operational efficiencies and controls and new product growth. l Organic growth driven by high growth rates for newer products (20-40%) offsetting decline in ISO l Newer products include environment, OH&S, food safety, information security and disability. l EBITDA growth driven by higher revenue and improved efficiencies without the need for comparable growth in operating expense. l Second half outlook – growth driven by CRS and new product sales. Assurance Services

21 l Ongoing solid demand for SAI Global products and services in Australia and overseas. l Revenue and profit growth to continue. l Focus on: –Accelerating organic growth. –Developing footprint offshore. –Continuing to improve organizational effectiveness. 5. Outlook