1. Tony Scotton - Chief Operating Officer
Raising the Standard
Emerging Leaders Conference
Tony Scotton - Chief Operating Officer
6 May 2005
SAI Global Limited
ASX Code: SAI

2. Our Business
SAI Global is a professional services company operating in the
international standards, regulatory and compliance market.
We provide;
Publishing, technical solutions, and information services
Training and consulting services
Assurance services in the area of standardization, conformity assessment and business improvement

3. Business Dimensions
We are listed on the Australian Stock Exchange and are a top 300 company
2004 pro-forma revenues of approximately $96.6 million
2004 pro-forma EBITDA of approximately $16.2 million
476 staff with 114 offshore
Physical operations in Australia, New Zealand, Indonesia, Mexico, India, the United States

4. Staff by Division Business Publishing 74 Professional Services 76
Assurance Services 273
IT/Financial/HR etc 53

5. Business Growth SAI Global ($’000s) Pro-forma Historical
Actuals First Half
2001
2002
2003
2004
2005
Revenue
68.3
73.5
83.2
96.6
51.7
EBITDA
7.0
10.3
12.2
16.2
9.5
EBIT
8.6
12.6
7.5
NPAT
5.6
8.3
5.2
EPS (cents)
4.1

6. Business Competitors
The first organization of our type to list on a stock exchange and have no direct equivalent
In the international technical publishing space we compete with
national standards bodies, IHS, Reed Elsevier and Thompson
The training and consulting market is highly fragmented and we have numerous competitors
In the certification space we compete with organizations such as SGS, BSI & Bureau Veritas

7. Industry Demand Drivers
Regulation
Demand to manage risks and compliance
Demand for supply chain confidence
Demand for continuous business improvement
Greater demand for standards related training and
assurance services
Increasing industry turnover
ROSS:
Let me talk you about what’s happening in the industry
Increasing regulation
Governments are looking to regulate
Reference standards eg the ASX Governance regime references the AS Risk management and compliance standards.
Companies wish to ensure compliance with these regulations
Boards and management want to ensure they are managing the risk in the business – using standards, ensuring their staff are trained about the standards and getting independent certification they are in accordance with those standards are all part of that business
Supply chains are getting more complex and specialised to different operators – companies want assurance about the quality of other inputs along the chain
Consumers wanting confidence and assurance about a product – suppliers want to give them that
Overall
There is a greater demand for standards and related training and services
This is not an industry which is going to decrease; only one way for turnover in this industry to go (ie increase)

8. SAI Key Features Leading market position Strong branding
Key intellectual property
Expanding offshore growth
Strong cash flows and low capital expenditure requirements
ROSS
Let me give you a snapshot of why we believe SAI Global is such a strong investment case
[Read through the points with very little detail given]
Leading market position
70% of the S&P/ASX 200 are customers of SAI Global
Strong branding
5 ticks the symbol of quality, represent one of the few and most recognized brands for quality that exist in our space.
Strong community/business recognition, our customers love it and put on their products their published material their advertising even their business cards.
Key intellectual property
Over 80,000 publications (majority of which are standards)
Business improvement frameworks
Offshore growth opportunities
Presence in US and Asia
The business model can be brought into other markets
No plans for an expansion frenzy but intend to be alert to acquisition and expansionary opportunities as appropriate
Strong cash flows, low capex, net debt = $0m
Conservative balance sheet
Strong position to fund any acquisitions

9. Business Model – SAI Global
Sources of
Intellectual
Property
Commercialisation of Intellectual Property
Business Publishing
Professional Services
Assurance Services
Develop
and
license Intellectual
Property
Publish
and distribute
(31% of revenue)
Enhance through
training & consulting services
(22% of revenue)
Provide assurance
through
conformity assessment & certification:
(47% of
revenue)
ROSS:
Although we see them as separate divisions, all 3 parts of the business are complimentary and inter-related
Customers and therefore revenue can come in at any point of the chain before moving along the chain or into other areas of it
I will now pass on to Tony to talk you through each of the businesses individually

10. Financial Summary – Pro-Forma

11. Business Divisions Three synergistic business
Business Publishing Publishes and distributes more than 120,000 standards and related publications.
Professional Services Provides training and consulting services related to standards and business improvement methodologies.
Assurance Services Provides conformity assessment services to management system and product standards.

12. Business Publishing Division
Revenue ($M)
EBITDA ($M)
EBITDA Margins %

13. Business Publishing Strategy
Features
Mainly recurrent revenue
Little competitive pressure
Efficient, transportable and scalable business model
Business model produces excellent financial outcomes
Trends
Increasing use of electronic delivery services
Limited growth opportunity in traditional geographic and product markets
Penetration of non-traditional markets has been limited
Platform services to others

14. Business Publishing Strategy
Strategic Intent
Build a $100 million plus technical publishing, distribution and information business
Key Enablers
Entrepreneurial approach to opportunity identification and closure
Aggressive targeting of new business opportunities
Maintenance of “state of the art” delivery platform
Maintenance of existing business

15. Professional Services Division
Revenue ($M)
EBITDA ($M)
EBITDA Margins %

16. Professional Services
Features
Fundamental component of our value chain
Few recurring revenue streams with services seen as discretionary expenditure by customers
Business model produces lower profit outcomes than other divisions
Consulting model not proven
Trends
Traditional standards based products not growing
Significant growth in business improvement products
Electronic training or blended learning model commencing to grow strongly
Significant growth opportunities developing in compliance based training

17. Professional Services
Strategic Intent
Diversify product range and develop sources of recurring revenue that
drive growth and profitability improvement
Key Enablers
Continue to develop non-standards based products
Establishment of electronic training platform
Development of compliance based training business
Development of information based products
Examine options for seminars business

18. Assurance Services Division
Revenue ($M)
EBITDA ($M)
EBITDA Margins %

19. Assurance Services Features Trends Recurring revenue streams
Strong local market share
Competitive advantage from StandardsMark
Solid growth and profit model
Trends
Supplier driven industry consolidation
Customer driven industry consolidation
Major product maturity
Growth in new products

20. Assurance Services Strategic Intent Key Enablers
Establish SAI Global as a leading international assurance business
Key Enablers
Physical presence in key geographic markets
Integrated value added customer offering
Consistent international delivery platform
People capable of delivering
International market intelligence
Brand / image development

21. Shareholder Structure
100M shares issued
80 million - Institutions
20 million - Retail
Market capitalisation $215M May 2005

22. Looking forward Strong business model easily scalable
Steady organic growth
Balance sheet and cash provides opportunity for continued growth through acquisitions
Positioned to continue to grow revenue and profits globally
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