Enero Group Limited · ASX:EGG

Enero — FY2018 Earnings Presentation

19 slides from Enero's earnings presentation, Aug 16, 2018

  1. Slide 1: Results for year ended 30 June 2018

    ASX ANNOUNCEMENT 16 August 2018 Results for year ended 30 June 2018 Enero Group Limited (ASX: EGG) today announced its results for the year ended 30 June 2018. Summary:  Net Revenue up 3.5% to $103.7m and Operating EBITDA up 29.8% to $13.5m.  Net profit after tax to equity holders $8.5m.  Operati

  2. Slide 2: Business operating performance

    Business operating performance: Net Revenue was up 3.5% and Operating EBITDA was up 29.8% on the prior year. On a like for like basis excluding the impact of acquisitions and closed offices, revenue was flat and Operating EBITDA was up 10% on the prior year. International markets represented 54% of

  3. Slide 3: Enero Group Limited FY18 Full Year Results

    Enero Group Limited FY18 Full Year Results 16 August 2018 Enero Group Limited

  4. Slide 4: Disclaimer

    Disclaimer This document has been prepared by Enero Group Limited (Enero) and comprises written materials/slides for a presentation concerning Enero. This is not a prospectus, disclosure document or offering document. This document is for information purposes only and does not constitute or form par

  5. Slide 5: FY18 Highlights

    FY18 Highlights Financial highlights summary • Net revenue up 3.5% and Operating EBITDA up 29.8% on the prior reporting period • Operating EBITDA margin up from 10.4% to 13.0% as overall business performance increased and cost efficiencies realised. • Currency impacts immaterial. • Statutory EPS of

  6. Slide 6: FY18 Highlights

    FY18 Highlights Transitioning into the Re-imagined phase • Align to key pillars: • Strategy, Research & Insights • Creative and Content • Digital • Integrated Communications & Public Relations • The acquisition of Orchard on 2 February 2018 with offices in Sydney and New York now represents the key

  7. Slide 7: Group Financial Performance

    Group Financial Performance Revenue and Operating EBITDA YEAR ENDED 30 JUNE ($M) 2018 2017 CHANGE NET REVENUE Operating Companies 103.7 100.2 3.5% Net Revenue 103.7 100.2 3.5% OPERATING EBITDA Operating Companies 19.3 16.1 19.9% Support office (5.3) (5.3) - Share based payments charge (0.5) (0.4) (2

  8. Slide 8: Group Financial Performance: Results ratio analysis

    Group Financial Performance Results ratio analysis YEAR ENDED 30 JUNE ($M) 2018 2017 Net Revenue 103.7 100.2 • A marginal increase in staff costs matched against revenue increase resulted in staff Staff costs 72.3 71.4 costs ratio being under 70%. Staff costs % 69.7% 71.3% • Operating costs reduced

  9. Slide 9: Revenue By Industry

    Group Financial Performance Revenue By Industry Transportation, Airlines & Property & Construction Automotive 3% 1% Utilities Energy, Oil & Mining 1% • Strong mix of clients across market industry Telecommunications 1% 4% and sector groups demonstrates Banking, Finance & Insurance Information Techno

  10. Slide 10: Operating Performance

    Operating Performance Geographical Contribution from operating companies Net Revenue Net Revenue FY2018 FY2017 • Geographical contribution to revenue largely consistent with prior period 20% 19% Australia with the decrease in UK and Europe 43% UK and Europe offset by growth in USA. Australian 46% re

  11. Slide 11: Operating Performance

    Operating Performance Geographical Results from operating companies CONSTANT • Currency impact: weaker YEAR ENDED 30 JUNE ($M) 2018 2017 CHANGE CURRENCY CHANGE Australian dollar positively impacting reported net revenue NET REVENUE by $1m and reported Operating Australia 48.2 42.9 12.4% 12.4% EBITDA

  12. Slide 12: Operating Performance: Australia

    Operating Performance Australia CONSTANT YEAR ENDED 30 JUNE ($M) 2018 2017 CHANGE CURRENCY CHANGE Net Revenue 48.2 42.9 12.4% - Operating EBITDA 8.9 7.0 27.1% - Operating EBITDA margin 18.5% 16.3% 2.2bp - Key highlights: • Increased revenue year on year (including 5 month contribution from Orchard)

  13. Slide 13: Operating Performance: UK and Europe

    Operating Performance UK and Europe CONSTANT YEAR ENDED 30 JUNE ($M) 2018 2017 CHANGE CURRENCY CHANGE Net Revenue 35.1 38.0 (7.6%) (10.4%) Operating EBITDA 6.9 7.4 (6.8%) (6.8%) Operating EBITDA margin 19.7% 19.6% 0.1bp - Key highlights: • While overall revenue was down 7.6% year on year, excluding

  14. Slide 14: Operating Performance: USA

    Operating Performance USA CONSTANT YEAR ENDED 30 JUNE ($M) 2018 2017 CHANGE CURRENCY CHANGE Net Revenue 20.4 19.3 5.7% 8.7% Operating EBITDA 3.5 1.7 105.9% 122.8% Operating EBITDA margin 17.2% 8.5% 8.7bp Key highlights: • Revenue improvement in the year and excluding the impact of the closed Naked C

  15. Slide 15: Profit & Loss Summary

    Group Financial Performance Profit & Loss Summary YEAR ENDED 30 JUNE ($M) 2018 2017 Net Revenue 103.7 100.2 Other revenue 0.2 0.2 Staff Costs (72.3) (71.4) Operating Expenses (18.1) (18.6) Operating EBITDA¹ 13.5 10.4 Operating EBITDA Margin 13.0% 10.4% Depreciation (2.5) (3.5) Amortisation of intang

  16. Slide 16: Significant items

    Group Financial Performance Significant items YEAR ENDED 30 JUNE ($M) 2018 2017 Gain on sale of asset 0.6 - • A gain on the sale of the Dark Contingent consideration fair value loss - (2.3) Blue Sea domain registry Incidental acquisition costs - (0.2) business and domain asset Non-recurring dual occ

  17. Slide 17: Balance Sheet

    Group Financial Performance Balance Sheet ($M) 30 June 2018 30 June 2017 • Orchard Marketing acquisition – 2 February Cash 34.4 32.5 2018. Initial payment of $5m and recognised contingent consideration payments tied to Net Working Capital (0.4) (2.4) EBIT targets through to 30 June 2021. Refer Other

  18. Slide 18: Contingent consideration

    Group Financial Performance Contingent consideration Contingent ($M) Consideration • Recognised contingent consideration relating Opening 1 July 2017 (at present value) 10.1 to both the Eastwick Communications and Orchard Marketing acquisitions. Acquisition 19.4 Payments (4.5) • There is uncertainty

  19. Slide 19: Cash Flow & Working Capital Management

    Group Financial Performance Cash Flow & Working Capital Management YEAR ENDED 30 JUNE($M) 2018 2017 • Small working capital balance unwind in the Operating EBITDA 13.5 10.4 period however working capital balance (excluding cash) remains comparatively low. Movement in working capital 1.7 1.8 Share ba

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