Cpt Global Limited · ASX:CGO
Cpt Global — Shareholder Meeting (November 2010)
25 slides from Cpt Global's shareholder meeting presentation, Nov 26, 2010
Slide 1: Chairman's Address – Annual General Meeting
CPT Global Limited Chairman’s Address Annual General Meeting 26 November 2010
Slide 2: Presentation Summary
Presentation Summary • CPT Global Background • 2010 Financial Summary • 2010 Year In Review • Market Positioning • Market Opportunities • 2011 Outlook Background | Summary | Review | Positioning | Opportunities | Outlook Slide 2
Slide 3: Background
Background • Founded in Australia in 1993 • ASX listed in 2000 | CGO • All services target IT cost reduction • Industry based expert consultants | ~ 200 • Global operations | Australia, Europe & North America • Mixture of private sector and government clients Background | Summary | Review | Position
Slide 4: IT cost optimisation
IT cost optimisation Service Line Client Outcome Capacity Minimise cost via optimised IT capacity Performance Reduce running costs and maximise lifetime of existing infrastructure Testing Ensure systems perform to expectations while optimising the testing costs + MIT Management of IT Optimise the co
Slide 5: IT Management & Technical Consulting
IT Management & Technical Consulting • CPT Global has two main lines of business IT Management and Technical Consulting •CPT’s services are designed to deliver solutions to clients that enhance the control, stability, efficiency, reliability and cost effectiveness of all IT functions •Our IT Managem
Slide 6: Service Offerings
Service Offerings Storage Services Testing Services Technical Consulting Asset Management IT Operational Governance Capacity Planning Database Services IT Management Infrastructure Services Solution Design and Architecture Performance Tuning & benchmarking Cloud Computing Transition Background | Sum
Slide 7: International Operations
International Operations • Australia - 60 clients Melbourne Sydney Canberra • Europe - 15 clients London Paris Munich • North America - 14 clients New York Washington, DC Toronto Background | Summary | Review | Positioning | Opportunities | Outlook Slide 7
Slide 8: Financial Summary
Financial Summary $ millions FY 10 FY 09 Revenue $37.7 $43.9 EBITDA ($0.3) $3.7 NPAT ($3.1) $2.2 FY10 NPAT includes goodwill impairment EPS (8.5 ¢) 5.9¢ of $2.4M Full Dividend (fully franked) 0.0 ¢ 5.5¢ Final Dividend (fully franked) 0.0 ¢ 3.0¢ Total Shares 36,746,364 36,786,364 Background | Summary
Slide 9: 2010 – A year of challenge and investment
2010 – A year of challenge and investment • Economic environment remained challenging • GFC delayed client decisions, particularly in Europe and North America • IT projects put on hold and discretionary expenditures curtailed • Awarding of new accounts failed to offset wind down at existing client s
Slide 10: 2010 – A year of challenge and investment
2010 – A year of challenge and investment • Continued investment in business development resulted in the expansion of our overseas footprint and an increase in the pipeline • Management restructure, reducing a management layer and enhancing of business development function by taking sales closer to
Slide 11: Financial Performance - Revenue
Financial Performance - Revenue 50.0 45.0 40.0 35.0 30.0 $million 25.0 44.5 43.9 20.0 41.4 37.7 15.0 31.1 29.0 10.0 5.0 0.0 2005 2006 2007 2008 2009 2010 Background | Summary | Review | Positioning | Opportunities | Outlook Slide 11
Slide 12: Financial Performance – Net Profit after Tax
Financial Performance – Net Profit after Tax 4.0 3.0 2.0 3.0 1.0 2.3 2.1 2.2 1.7 $million 0.0 Goodwill Impairment -0.7 Operating Profit/(Loss) -1.0 - 1st Half Loss ($856k) - 2nd Half Profit $123k -2.0 -2.4 -3.0 -4.0 2005 2006 2007 2008 2009 2010 Background | Summary | Review | Positioning | Opportun
Slide 13: Financial Performance – Dividends per Share
Financial Performance – Dividends per Share 9.0 8.0 7.7 7.0 - History of strong returns 6.0 6.0 5.5 5.0 5.5 - No distribution in a loss making year 5.0 Cents 4.0 - New significant shareholder. Largest 3.0 South American IT service provider 2.0 1.0 0.0 - 2005 2006 2007 2008 2009 2010 Background | Sum
Slide 14: Balance Sheet
Balance Sheet $ millions FY 10 FY 09 Current Assets $11.7 $14.3 Total Assets $19.8 $24.8 Current Liabilities $6.4 $6.7 Total Liabilities $6.7 $7.0 Net Assets $13.1 $17.9 Net Tangible Assets $5.7 $10.5 Total Shares on Issue 36.7 36.7 Background | Summary | Review | Positioning | Opportunities | Outlo
Slide 15: Revenue | Line of Business
Revenue | Line of Business Capacity Management 8% Technical Support 20% Services 9% 22% Sourcing Mainframe & Distributed 1% 25% 22% Performance Tuning 4% 21% 19% Project & Program 19% Management 5% 4% 21% Management, Functional & MIT General Automation Testing Background | Summary | Review | Positio
Slide 16: Revenue | Sector
Revenue | Sector Transport 1% Telecommunications 1% 31% 29% 42% Banking & 47% Finance 1% 2% 2% Retail 20% 4% Other 20% Government Background | Summary | Review | Positioning | Opportunities | Outlook Slide 16
Slide 17: Revenue | Region
Revenue | Region North America 10% Australia 10% 19% 15% 75% 71% Europe Background | Summary | Review | Positioning | Opportunities | Outlook Slide 17
Slide 18: 2010 in Review | Australia
2010 in Review | Australia Key Challenges • Economic environment / delays on discretionary budgets • Winding down of major project at CPT’s largest Australian client • 24% Year-On-Year client revenue decrease • Expanding presence in NSW market Key Achievements • Expansion in Finance sector, with inc
Slide 19: 2010 in Review | International
2010 in Review | International Key Challenges • GFC / delays on discretionary budgets • Foreign Exchange impact Key Achievements • Retention of major client base and expansion of service offering throughout USA and Canada • Re emergence of previous North American clients seeking cost savings • Provi
Slide 20: Future Market Positioning
Future Market Positioning Market Coverage: FY10 Update Market Coverage: - Target new clients in North America & Europe • Expand international client base - Enhancement of services and product • Focus on NSW region offerings across all Lines of Business • Consolidate delivery capability - Penetration
Slide 21: Global Data Centre Optimisation - Opportunity
Global Data Centre Optimisation - Opportunity $ £ € Projected Datacentre Server Demand Growth Projected Datacentre Storage Growth (Production) (Production) 25,000 160.00 CPT Data Centre 20,000 140.00 Optimisation Significant cost RelativeCapacity 120.00 Petabytes savings for clients 15,000 100.00 gr
Slide 22: Key Opportunities in 2011 - Australia
Key Opportunities in 2011 - Australia • Increased government opportunities with the appointment to supplier panels • Continued expansion of footprint in Financial Services sector • Establishment of CPT’s Cloud Computing service offering • Greater presence in NSW market • The commencement of the Nati
Slide 23: Key Opportunities in 2011 - International
Key Opportunities in 2011 - International • Commencement of five new optimisation engagements in Europe in FY11 • New European engagements in Banking, Car Manufacturers and Insurance • Continued growth in our North American market covering new clients as well as additional services at existing clien
Slide 24: Board Changes
Board Changes • Mr. Ian MacDonald will retire from the Board on December 31, 2010 • Non Executive Director since April 2006 • Chair of Remuneration and Nomination Committee • Mr. Alan Baxter will be appointed to the Board effective from January 1, 2011 as Non Executive Director • Prior senior execut
Slide 25: Outlook
Outlook • The Australian market will remain difficult as new client wins are offset by a reduction in revenue from CPT’s largest client • Global spending remains tight, although clients are now making decisions on well considered investments and cost reduction initiatives • CPT’s strong pipeline wil