Enero Group Limited · ASX:EGG
Enero — Photon Group — FY2007 Earnings Presentation
17 slides from Enero's earnings presentation, August 2007
Slide 1: 2007 Annual Results – August 2007
2007 Annual Results – August 2007 Photon Group Limited : Page 1
Slide 2: Contents
Contents PAGE Overview 3 Results Summary 4 Income Statement 5 Organic and Acquisition Revenue / EBITDA Analysis 6 Balance Sheet 7 Cash Flow 8 2007 Year in Review 9 Photon Group Five Divisions 10 Acquisitions 11 Division Composition 12 Diversification by Sector 13 Diversification by Client 14 2007 Re
Slide 3: Overview
Overview • Net Revenue increased 56% to $195 million and EBITDA was up 60% to $45.1 million. • Net profit increased 38% to $16.3m • EPS (adjusted for amortisation and PV interest) increased from 27.51 cents in 2006 to 34.43 cents in 2007. • EBITDA margin was 23.2% (up from 22.5% in 2006). • Acquisit
Slide 4: Results Summary
Results Summary 2005 2006 Change 2007 Change Revenue $107.0m $169.5m 58% $307.3m 81% Net Revenue $80.4m $124.8m 55% $194.6m 56% EBITDA $17.9m $28.1m 57% $45.1m 60% EBITDA margin 22.2% 22.5% 1% 23.2% 3% Net Profit before minorities $8.6m $12.1m 40% $17.5m 45% Net Profit after minorities $8.7m $11.8m
Slide 5: Income Statement
Income Statement Audited Income Statement 2005 Actual 2006 Actual 2007 Actual % Change Year Ended 30 June 2007 ($'000s) ($'000s) ($'000s) 06-07 Revenue 107,029 169,508 307,328 81% Net Revenue 80,394 124,778 194,596 56% EBITDA 17,989 28,061 45,054 60% Depreciation 1,743 3,126 4,898 57% Amortisation –
Slide 6: Organic and Acquisition Revenue / EBITDA Analysis
Organic and Acquisition Revenue / EBITDA Analysis 2006 2007 Change Net Revenue (Organic)* $141.3m $156.8m 11% Acquired – $37.8m Total $141.3m $194.6m 38% EBITDA (Organic)* $31.2m $34.4m 10% Acquired – $10.7m Total $31.2m $45.1m 45% Photon Group Limited : Page 6 * Organic growth represents like-like
Slide 7: Balance Sheet
Balance Sheet $’000 Cash 17,994 Working Capital 16,620 Financial Assets 15,912 Other Assets 9,030 Fixed Assets @ WDV 13,801 Intangibles: Goodwill 263,465 Identifiable Intangibles @ WDV 22,712 Total Assets 359,534 Provisions 25,648 Deferred Consideration (PV): Current 14,432 Non-Current 32,157 Borrow
Slide 8: Cash Flow
Cash Flow 2006 2007 Operating EBITDA 28,096 45,053 Increase in working capital (7,153) (6,250) Gross cash flow 20,943 38,803 Net interest paid (2,987) (5,826) Other 253 Tax (5,766) (5,941) Operating cash flow 12,190 27,289 CAPEX (4,229) (6,278) Free cash flow (Pre dividends) 7,961 21,011 Photon Grou
Slide 9: 2007 Year in Review
2007 Year in Review • New structure in place with divisional managing directors appointed. Currently interviewing for an Internet Marketing and Communications Division Managing Director. • Experiential and Field Marketing, Internet Marketing and Communications and Specialised Communications Division
Slide 10: Photon Group Five Divisions
Photon Group Five Divisions Internet Marketing and Communications Integrated Communications Experiential and Field Marketing and Digital Specialised Communications Strategic Intelligence Photon Group Limited : Page 10
Slide 11: Acquisitions
Acquisitions Acquisitions 2006/2007 Strategic Internet Experiential and Integrated Specialised Intelligence Marketing and Field Marketing Communications Communications Communications and Digital Jigsaw iMega Ausrep BWM BCG (NZ) DVL Smith Dark Blue Sea (20%) OBMedia (US) C4 Found Agency Acquisitions
Slide 12: Division Composition
Division Composition Strategic Internet Experiential and Integrated Specialised Intelligence Marketing and Field Marketing Communications Communications Communications and Digital The Leading Edge Returnity The Bailey Group Love Bellamyhayden Jigsaw iMega Brand Impact AdPartners Ideass/Precinct DVL
Slide 13: Diversification by Sector
Diversification by Sector Top 25 Clients by Industry For Year Ended 30 June 2007 Photon Group Limited : Page 13
Slide 14: Diversification by Client
Diversification by Client Number of Photon % of Total Relationships Revenue Client 1 Telecommunications 7 6.5% Client 2 Retail 7 2.6% Client 3 Internet 2 2.4% Client 4 Telecommunications 4 2.4% Client 5 Alcohol 4 2.4% Client 6 FMCG Food 2 2.1% Client 7 Banking Finance Insurance 3 1.7% Client 8 FMCG
Slide 15: 2007 Revenue and EBITDA by Division
2007 Revenue and EBITDA by Division Revenue EBITDA Specialised Strategic Specialised Strategic Communications 16% Intelligence 13% Communications 14% Intelligence 12% $31.0m $25.5m $6.7m $5.7m Integrated Integrated Communications Communications Internet Marketing and and Digital 27% and Digital 20%
Slide 16: 7 Year Revenue and EBITDA
7 Year Revenue and EBITDA Revenue (’000) EBITDA (’000) Photon Group Limited : Page 16
Slide 17: Outlook
Outlook • Continue international expansion into both the UK and USA. • Expand in developing international markets with our existing businesses, e.g. ABT China. • An emphasis on people development and succession planning. • Drive financial disciplines within all businesses, e.g. cash flow. • Maintain