5g Networks Limited · ASX:5GN
5g Networks — Shareholder Meeting (May 2014)
27 slides from 5g Networks's shareholder meeting presentation, May 27, 2014
Slide 1: Media Release: Melbourne IT – AGM
MEDIA RELEASE MELBOURNE IT – AGM CEO announces new phase of growth for Melbourne IT Netregistry integration well underway Revenue turnaround gathers pace Strong sales and marketing orientation foreshadowed Melbourne IT is looking towards a new phase of growth and product investment according t
Slide 2: Looking ahead
Looking ahead, Mr Mercer said his vision was to achieve a successful transition from Melbourne IT as a product-led, technology oriented business into a sales and marketing oriented business, with its point of difference being exceptional customer experience. ‘In the next two years, the SMB business
Slide 3: Annual General Meeting
Annual General Meeting Melbourne, Australia 27 May 2014 Board of Directors Simon Jones, Chairman Martin Mercer, CEO & MD Tom Kiing, Non-Executive Director Naseema Sparks, Non-Executive Director Rob Stewart, Non-Executive Director Larry Bloch, Non-Executive Director And Arnaud Desprets,
Slide 4: Agenda
Auditors Slide 3 Agenda Chairman’s Address CEO’s Address Larry Bloch Q&A Formal Business Q&A Tea & Coffee Slide 4
Slide 5: Chairman's Address
Chairman’s Address Simon Jones Chairman's address Group Performance FY2013 Overview Continuing operations Stable half on half result Segment performance SMB Solutions Enterprise Services Strategic Review Unlocking Value Creating focus Shareholder Benefit Transformational Acqu
Slide 6: Group Performance – FY2013 Overview
Group Performance – FY2013 Overview Year ended 31 Dec (A$) FY 13 FY 12 % Revenue * $103.4m $108.5m -5% NPAT $68.9m $11.4m 502% Cash at Bank $80.5m $17.8m 352% Bank Debt $0m $33.8m - Basic Earnings Per Share 82.9c 14.0c 492% Dividend Paid 32c 15c 113% Capital return paid # 54c 0 - * Continuing opera
Slide 7: Group Performance - Stable half on half result
Group Performance - Stable half on half result H1 FY13 H2 FY13 Total FY13 H1-H2 Change Segment Revenue $50.2m $50.5m $100.7m Steady Interest Revenue $1.2m $1.5m $2.7m + 25% Gross Margin $31.1m $31.2m $62.3m Steady Operational Expenditure $27.4m $29.1m $56.5m + 6% EBITDA Contribution $3.7m $2.1m $5.8
Slide 8: Segment Performance - Enterprise Services
Segment Performance - Enterprise Services FY13 FY12 Change Revenue $24.5m $26.1m -6% Gross Margin $17.6m $18.4m -4% Operational Expenditure $15.2m $14.3m 6% EBITDA Contribution $2.4m $4.1m -42% Highlights Growing managed services revenue base as new (non-DETE) sales increased strongly year on year
Slide 9: Strategic Review – Unlocking Value
Strategic Review – Unlocking Value Total value returned Share price and return graphs during period Paid dividend Capital return 86c $2.40 7c 54c Paid dividend 25c $2.20 $2.00 $1.80 Total value to shareholders $1.60 equivalent of $2.28 $1.40 $1.20 Strategic Review Sale of DBS Sale of FTR Acquisition
Slide 10: Creating Focus – Business footprint reduced
Creating Focus – Business footprint reduced Business Units 2012 GPS SMB DBS FTR ES Merged Sold 2014 SMB ES Melbourne IT is now split into two business units allowing for more focus on customer facing initiatives and solutions Investment in the business can now be channelled more effectively and
Slide 11: Shareholder Benefit - Capital Management
Shareholder Benefit - Capital Management Melbourne IT has a strong balance sheet and renewed focus with good operating cash flows. At the end of July the business is forecasting to have cash on hand of circa $25m with a $20m debt facility in place drawn at $15m This position will allow the Board
Slide 12: Transformational Acquisition
In appreciation Thanks to my Board colleagues for their valuable advice and support Thanks to all the staff of Melbourne IT and Netregistry for all their efforts Thanks to our past CEO and Managing Director Theo Hnarakis, Acting CEO Peter Findlay and the Melbourne IT executive team Thanks to
Slide 13: CEO's Address: Group 2014 Outlook
Group 2014 Outlook Integration will gather pace PMO established and annualised gross savings of $1m already locked in Articulate a clear strategy for the SMB business set a foundation for growth in the core and expansion into adjacent opportunities Pipeline of new products and marketing op
Slide 14: Melbourne IT/NRG – A Great Fit
Melbourne IT/NRG – A Great Fit Products: Combination enables Melbourne IT to offer best in class domain registration & management, email and web hosting products Management Team: Adds a proven management team experienced in the SMB segment Efficiencies: Eliminates duplication in product offeri
Slide 15: SMB - Returning to Growth
SMB - Returning to Growth Growth Dividend Harvest and Build on strategic Grow Consolidate repositioning Integration Revenue from new essentially products and complete services making a Integration of MLB material and Netregistry Leverage industry contribution leading position to One lead
Slide 16: Larry Bloch
Larry Bloch Table of Contents Why sell Netregistry to Melbourne IT? Why take a large position in Melbourne IT? An insiders view of the Opportunity? Slide 28
Slide 17: Logic of sale to Melbourne IT
Logic of sale to Melbourne IT Strong industrial logic to merger: Significant unlocked potential in world class NRG infrastructure NRG experience of consolidating and integrating businesses Duplicated infrastructure and HR costs Local and Global Industry structure has matured - 4 Global gia
Slide 18: Strategic Opportunity for a merged business
Strategic Opportunity for a merged business Local industry has stabilised after years of foreign, price-based incursion Merger creates clear local leader in most valuable market segment Scale enables investment in HR, market and product NRG platform & integration expertise + MLB scale opens
Slide 19: Business of the Meeting
Business of the Meeting Item 1: Financial Statements & Report To receive and consider the Annual Financial Report and the Reports of the Directors and Auditor for the financial year ended 31 December 2013 Slide 34
Slide 20: Business of the Meeting: Election of Directors
Item 2: Election of Directors a) Mr Robert Stewart retires by rotation in accordance with rule 9.3 of the Company’s Constitution and, being eligible, offers himself for re-election b) Ms Naseema Sparks retires by rotation in accordance with rule 9.3 of the Company’s Constitution and, being eligible,
Slide 21: Remuneration for Executives and Key Senior Employees
Remuneration for Executives and Key Senior Employees The objective is to reward executives and senior managers with a level and mix of remuneration commensurate with their position and responsibilities to: Provide competitive rewards to attract high calibre executives Link rewards to sharehold
Slide 22: General Staff Remuneration
General Staff Remuneration Almost all remuneration is based on a fixed component with some staff on sales based incentive. Slide 39 Non-Executive Director Remuneration Objective The Board seeks to set aggregate remuneration at an appropriate level to attract & retain Directors of the highest c
Slide 23: Non-Executive Director Remuneration
Non-Executive Director Remuneration NED Deferred Share Plan was suspended at end of 2009 NED received a 2.5% base fee increase in 2011; no increase in 2012 or 2013 For 2012, the NED base fee is $76,875 with an additional $10,000 for Board Committee Chairs The Board Chairman’s fee is set at 2
Slide 24: Item 4: Approval of Long Term Incentive Plan 2014
Item 4: Approval of Melbourne IT Long Term Incentive Plan 2014 Requirements for a New LTI Program: The previous LTI plan has come to an end in accordance with the resolutions voted by shareholders on 28 January 2014; The Plan is the principal vehicle to grant long term incentives awards and for
Slide 25: Item 5: Grant of Performance Rights to the MD and CEO
Item 5: Grant of Performance Rights to the MD and CEO Resolution: To approve the grant of performance rights to the Managing Director and Chief Executive Officer, Mr Martin Mercer, under the proposed Performance Rights Plan Slide 45 Item 6: Approval of potential termination benefits to the MD and
Slide 26: Item 7: Approval of shares issued to Corpsand Pty Ltd
Item 7: Approval of shares issued to Corpsand Pty Ltd Resolution: To approve the exclusion of the 9,208,363 ordinary shares issued to Corpsand Pty Ltd from the calculation of the 15% Rule set by ASX Listing Rule 7.1. Slide 47 Item 8: Financial Assistance In order to assist in funding the Netregi
Slide 27: Questions
Questions Any final questions? Slide 49 Annual General Meeting Melbourne, Australia 27 May 2014