Critical Minerals Group Ltd. · ASX:CMG
Critical Minerals — Shareholder Meeting (October 2010)
22 slides from Critical Minerals's shareholder meeting presentation, Oct 28, 2010
Slide 1: Annual General Meeting
Annual General Meeting 28 October 2010 Ian Basser, Managing Director
Slide 2: Disclaimer
DISCLAIMER The forward looking statements included in these materials involve subjective judgment and analysis and are subject to significant uncertainties, risks, and contingencies, many of which are outside the control of, and are unknown to, Chandler Macleod Group. In particular, they speak only
Slide 3: Agenda
AGENDA § Summary and financial highlights § Outlook and growth 3
Slide 4: Summary
SUMMARY § Excellent increase in profitability § Strengthened balance sheet and significant reduction in debt driven by strong cash flow and new funding arrangements § Strong revenue momentum in the first quarter § Well positioned for growth both organically and via acquisition should the right oppor
Slide 5: In the past year we have repositioned Chandler Macleod
IN THE PAST YEAR WE HAVE REPOSITIONED CHANDLER MACLEOD FINANCIAL PERFORMANCE* § Extracted the company from TNIR, OPEX & EBITDA 2006-2010 $m highly unprofitable Defence contract achieving record recruitment levels at the same time § Delivered $35 million in cost savings taking costs below levels seen
Slide 6: We delivered the highest profit in the company's history
WE DELIVERED THE HIGHEST PROFIT IN THE COMPANY’S HISTORY § Revenue down 2%, but strong revenue momentum in the second half § EBITDA from continuing business of $22.5m (up 192%) § Reported Profit After Tax for the period $13.7m (compared to a loss of $13.3m in prior period) ▪ $9.7m from continuing bu
Slide 7: Full year results - 2010
FULL YEAR RESULTS - 2010 FY 2010 FY2009 Change $m $m % REVENUE* 817.1 834.8 (2%) Expenses 98.1 124.3 (21%) EBITDA* 22.5 7.7 192% REPORTED NPAT 13.7 (13.3) 203% NPAT* 9.7 (3.7) 362% REPORTED EPS (cps) 3.4 (4.5) 175% EPS (cps)* 2.4 (1.3) 285% DIVIDEND PER SHARE (cps) 1.35 Nil N/A * From continuing bus
Slide 8: Our balance sheet is positioned for growth
OUR BALANCE SHEET IS POSITIONED FOR GROWTH 30 Jun 10 31 Dec 09 30 Jun 09 $m $m $m Trade Receivables 79 83 76 Current Debt 24 41 34 Non-Current Debt 0 4 4 Total Debt 24 45 38 Net Assets 139 132 126 Gearing (Debt/Net Assets + Debt) 15% 25% 23% FY2010 H1 2010 ^ FY 2009 Interest Cover* (EBIT/Interest co
Slide 9: Total contractor hours ended the year up 24%
TOTAL CONTRACTOR HOURS ENDED THE YEAR UP 24%. THE TREND HAS CONTINUED INTO THE FIRST QUARTER WEEKLY CONTRACTOR UNITS 330,000 Units paid 280,000 230,000 Easter 180,000 Christmas period 130,000 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Week 9
Slide 10: Excellent cost reductions continued into FY10
EXCELLENT COST REDUCTIONS CONTINUED INTO FY 10. SIGNIFICANT INVESTMENT MADE TO MEET ORGANIC OPPORTUNITIES TOTAL OPERATING EXPENSES $m* 80 § We invested heavily 70 in additional front line staff in 4th 60 quarter 2010 50 § 2011 will see further 40 investment in front line staff 30 § New operating 20
Slide 11: Workforce - investing to continue growth and momentum
WORKFORCE - INVESTING TO CONTINUE GROWTH AND MOMENTUM § Building on underlying strength of Workforce Services § Continue to focus on breadth and depth in key industry sectors: - FMCG - Manufacturing - Transport & Logistics - Mining & Energy - Infrastructure - Health - Aviation 11
Slide 12: Workforce - investing to continue growth and momentum
WORKFORCE - INVESTING TO CONTINUE GROWTH AND MOMENTUM § Key Personnel: - Sector leaders - Frontline staff to meet future demands § Leveraged to long term growth in Mining & Energy and Infrastructure § Building new revenue streams: - New industry sectors - New geographies § Continued critical investm
Slide 13: Recruitment services initiatives
RECRUITMENT SERVICES INITIATIVES § Academy 1 – Investment in training a large group of recruitment novices with industry skills – 200 placements in 14 weeks § Academy 2 – a new intake leveraging the success of Academy 1 § Growing PSA delivery model § Expanded service offering into white collar workf
Slide 14: Efficiency – new system
EFFICIENCY – NEW SYSTEM § One database with all current candidate and client information § Manage relationships with all contacts § Higher productivity § Better management § Efficient candidate searching (internal and external) § One way of working 14
Slide 15: Operational investments
OPERATIONAL INVESTMENTS § HR and Training § Enterprise Sales § Marketing § Legal 15
Slide 16: We now go to the market as 'one brand'
WE NOW GO TO THE MARKET AS ‘ONE BRAND’ Multi-brand Single-brand silo strategy integrated strategy 16
Slide 17: Our occupational health and safety performance has been outstanding
OUR OCCUPATIONAL HEALTH AND SAFETY (OH&S) PERFORMANCE HAS BEEN OUTSTANDING LOST TIME INJURY FREQUENCY RATE (LTIFR) (per million man hours) § In 2H10 there were two months with zero LTIFR across our entire workforce, an incredible achievement. § Chandler Macleod’s excellence in OH & S management is a
Slide 18: Outlook and growth strategies
AGENDA § Summary and financial highlights § Outlook and growth strategies 18
Slide 19: Our market presents significant growth potential
OUR MARKET PRESENTS SIGNIFICANT GROWTH POTENTIAL Temporary Staff Services in 2010 (1) Revenue Profit Wages $13.9bn $485.1m $11.5bn Employment Placement Services in 2010 (2) Revenue Profit Wages $1.8bn $53.3m $819.1m We are growing market share because customers are increasingly looking to suppliers
Slide 20: Hours worked and full time jobs are rising
HOURS WORKED & FULL TIME JOBS ARE RISING CREATING A FAVOURABLE ECONOMIC LANDSCAPE FOR CHANDLER MACLEOD HOURS WORKED & EMPLOYMENT LABOUR MARKET Index (Trend, Jan 2007= 100) Index 106 106 6.0 % '000 150 Unemployment Employment rate (lhs) 105 105 5.5 100 104 104 103 103 4.9 50 102 102 Hours Worked 4.4
Slide 21: Key drivers of future growth
KEY DRIVERS OF FUTURE GROWTH 1. Increased demand for outsourced workforce solutions. We are the only end to end supplier of these solutions 2. Continued efficiency improvements with the new system due in May 2011 3. Increased scale. This drives EBITDA margin improvement 4. Acquisitions 5. Leverage t
Slide 22: Outlook for 2011 financial year
OUTLOOK FOR 2011 FINANCIAL YEAR § Revenue growth has been very strong in the first quarter. Our revenue levels are now higher than pre-GFC benchmarks § 2011 will see costs increase as we invest in front line staff to deliver the increased demand for our services. We are also building now to get ahea
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