Critical Minerals Group Ltd. · ASX:CMG
Critical Minerals — Ord Minnett Business Services Conference (November 2007)
24 slides from Critical Minerals's conference presentation, Nov 13, 2007
Slide 1: Chandler Macleod Presentation
Chandler Macleod Presentation Stephen Cartwright, Managing Director 13 November 2007
Slide 2: Company Data
Company Data Ordinary fully paid shares on issue 157.2 m Share Price (as at 9 November 2007) A$0.90 Market capitalisation (as at 9 November 2007) A$141.5m 12 month High/Low $1.20/ $0.75
Slide 3: Industry Structure
Industry Structure Margins Outsourcing & Consulting Professional Office Industrial
Slide 4: Industry Size
Industry Size $bn 18 16.6 16 15.5 14.1 14 13.0 11.9 12 11.2 10.2 10.4 10 9.2 8.4 8 89% 89% 89% 88% 6 88% 88% 88% 88% 88% 4 87% 2 0 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Financial Year Temporary Revenues Permanent Placement Revenues Source: BBY, IBISWorld
Slide 5: Industry Growth
Industry Growth CAGR CAGR 1999/04 2004/09 Total 7.70% 8.20% Permanent 5.80% 7.00% Temporary 7.90% 8.30% CAGR: Compound Annual Growth Rate Source: BBY, IBISWorld
Slide 6: Industry Dynamics
Industry Dynamics Australian Jobs (million) 6 5.5 5 4.5 4 3.5 3 2.5 2 1985 1988 1991 1994 1997 2000 2003 2006 White Collar Blue Collar
Slide 7: Industry Participation
Industry Participation Highly fragmented but consolidating rapidly Largest player (sales) – SKE with $1.4bn (approx 9%) Second largest – CHD with $0.8bn (approx 5%) Estimated to be about 3,500 other participants Dominant players in other countries – up to 30% market share
Slide 8: Industry Consolidation – Who Will Succeed?
Industry Consolidation – Who Will Succeed? Large multi-sector players and niche operators Companies with access to funds Innovative companies with unique IP Able to take advantage of industry changes, workplace trends and complexities Strong management team with breadth of experience Proven ability
Slide 9: Market Trends
Market Trends Talent shortages across all industries & regions Candidates becoming more savvy – seeking out specialist brands Simply spending more money on recruitment ads is not the answer Recruiters with specialist sector knowledge winning Employers seeking strategic HR partners to provide broader
Slide 10: Chandler Macleod is one of Australasia's largest HR Consulting, Outsourcing and Recruitment companies
Chandler Macleod is one of Australasia’s largest and most diverse HR Consulting, Outsourcing and Recruitment companies focusing on the provision of outstanding assessment, selection, recruitment and retention solutions across the Blue-Collar, Office Support, Health, Graduate, Engineering, IT, Profes
Slide 11: CHD Strategy
CHD Strategy ‘House of Specialist Brands’ – candidate attraction Client engagement across value chain Organic growth complimented by selective participation in consolidation CRM leadership Use IP to drive service & product innovation Strong Board & Management Team
Slide 12: House of Brands
HOUSE OF BRANDS HOUSE OF SPECIALIST BRANDS ON HIRE & PERMANENT CONSULTING & RECRUITMENT & CONTRACTING OUTSOURCING SERVICES INDUSTRIAL COMMERCIAL | TECHNICAL PROFESSIONAL & BUSINESS SUPPORT MiM@READY MBRECRUITMENT pus] any Eo MEWORKFORCE © MSOLUTIONS SSENTEC S=DIVERSITI fmmacieon’ fumnmactEoo. = MM F
Slide 13: Margin Contribution
Margin Contribution Full line of services for clients Exposure to all sectors of the economy Greater protection from sector cycles Capacity to grow high margin sectors
Slide 14: We are where our customers are!
We are where our customers are !
Slide 15: Just some of our customers
Just some of our customers Over 4,000 clients Blue chip client base More than 100 PSAs No client more than 10% Diverse industry sectors Food – recession proof Mining / Resources - boom
Slide 16: Approx. 14,000 employees on-hired every day
Approx. 14,000 employees on-hired every day Over 40,000 employees employed during FY 2007 Over 800 branch & head office staff in 70 locations across Aus & NZ
Slide 17: The Service Value Chain
The Service Value Chain SERVICE MODELS STEP 5 Managed STEP 4 Service Workforce Outsourcing STEP 3 Supervision ey ae uct or Onsite Step 3 + service delivery STEP 2 Administration Cree rot responsibility Process Customised Step 2+ Chandler Macleod ownership and STEP 1 Personnel Chandler Macleod employ
Slide 18: The New Management Team
The New Management Team Stephen Cartwright Managing Director Morgan Sloper Robert Johnston Co Sec / Legal CFO Ian Basser Cameron Judson Doug Caldwell Peter Bennett Stuart McLean Director – Director – Director – Director – Director – Recruitment & Business Services Staffing Services Client Services E
Slide 19: Job Network Version
Job Network Version Roll out slower than we had hoped for but now gathering momentum Early placement stats are very encouraging – will assist roll out Commercial Version Launched on 9 August 2007 ASP version now available anywhere in the world Rolling out to Chandler Macleod brands / clients First s
Slide 20: Financial Highlights – FY07
Financial Highlights – FY07 Sales of $777m – up $102m (or 15%) EBITDA for core business (excluding ESP) of $22.5m – up $4.8m (or 27%) EBITDA margin for core business (excluding ESP) – 2.9% (up from 2.6%) ESP – EBITDA contribution of ($2.3m) for FY 2007 Reported EBITDA for FY 2007 of $20.2m – up $4.8
Slide 21: Financial Highlights
Financial Highlights Organic & acquired growth drives Sales Cost control and business mix drive EBITDA and NPAT growth Improved working capital management and financial discipline drive cash flow improvement
Slide 22: Participation in industry consolidation
Participation in industry consolidation Diversiti acquired in September 2006 IT&T recruitment & contracting Sydney, Melbourne, Canberra & Brisbane Sept 2006 – Sales of $5.9m and EBIT of $50k Sept 2007 – Sales of $10.2m and EBIT of $250k Potential to expand to WA, SA, NZ and SE Asia JML Aus
Slide 23: Outlook
Outlook Strong start to FY 2008 – first 4 months in line with expectations Economic and market conditions remain robust Very low unemployment (approx 4.3%) = strong demand for all service lines More organic and acquisition growth expected Expecting strong FY 2008 Forecasting EBITDA growth of 10% to
Slide 24: Questions?
Questions?
Critical Minerals Group — Ord Minnett Business Services Conference (November 2007) on 6ix