Enero Group Limited · ASX:EGG
Enero — H1 FY2014 Earnings Presentation
20 slides from Enero's earnings presentation, Feb 13, 2014
Slide 1: Results for half year ended 31 December 2013
For personal use only ASX ANNOUNCEMENT 13 February 2014 Results for half year ended 31 December 2013 Enero Group Limited (ASX: EGG) today announced its results for the half year ended 31 December 2013. Summary Operating EBITDA1 up 135%, net revenue down 6% on prior reporting period on pro forma ba
Slide 2: Pro Forma business operating performance
For personal use only Pro Forma business operating performance: While pro forma revenue was down 6% on prior year, pro forma Operating EBITDA was up 135% on prior year. The Group achieved an improved EBITDA margin through revenue stability and a focus on tighter cost controls around staff and operat
Slide 3: FY14 Half Year Results
For personal use only Enero Group Limited FY14 Half Year Results 13 February 2014 Enero Group Limited
Slide 4: Disclaimer
Disclaimer For personal use only 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
Slide 5: Topic Slide
For personal use only Topic Slide Executive Summary 4 Operational Update 8 Financials 13 PAGE 3 Enero Group Limited
Slide 6: Executive Summary
For personal use only Executive Summary PAGE 4 Enero Group Limited
Slide 7: Executive Summary
Executive Summary For personal use only Financial • Operating EBITDA was up 135% on a pro forma continuing business basis. • Net revenue was relatively flat with first half focus being on margin attainment from the existing revenue pool. • Operating EBITDA margin increased from 3.2% to 8.1% as the b
Slide 8: Executive Summary cont'd
Executive Summary cont’d For personal use only Operational • Further co-location of operating brands in Sydney and London. • Key leadership appointments across several operating brands. • Increased collaboration and mobility of employees across the network as core skillsets are shared across the bus
Slide 9: Revenue and Operating EBITDA
Executive Summary cont’d For personal use only Revenue and Operating EBITDA Pro forma results are adjusted for significant restructuring and divestments to allow for review of continuing business. Refer to Appendix on slide 18 for further details. SIX MONTHS ENDED 31 DECEMBER ($M) 2013 2012 CHANGE N
Slide 10: Operational Update
For personal use only Operational Update PAGE 8 Enero Group Limited
Slide 11: Operational Update
Operational Update For personal use only • Collaboration and co-location • Improved infrastructure for sharing knowledge and leveraging client relationships • Sydney hub office completed in December 2013 housing BMF, Naked, Precinct, Frank PR and Hotwire • Hotwire and Corporate Edge co-locating in L
Slide 12: Operational Update cont'd
Operational Update cont’d For personal use only • Expected overall reduction of approximately $8m per annum in staff costs and approximately $2m per annum in operating costs from FY13 to protect EBITDA margin. • Frank PR and Hotwire continue to perform strongly, particularly in the UK markets. • BMF
Slide 13: Key leadership appointments this financial year
Operational Update cont’d For personal use only Key leadership appointments this financial year: • Carl Ratcliff – Naked Communications Australia CEO (December 2013) • Troy Kelley – Naked Communications USA CEO (January 2014) • Paul Ward – Naked Communications Chief Creative Operations Officer (Janu
Slide 14: Geographical Contribution from operating companies
Operational Update cont’d For personal use only Geographical Contribution from operating companies Pro forma Net Revenue Pro forma Net Revenue 1H FY2014 1H FY2013 13% Australia, NZ 11% Australia, NZ and Asia and Asia UK and UK and 52% Europe 29% Europe 35% 60% North America North America Pro forma O
Slide 15: Financials
For personal use only Financials PAGE 13 Enero Group Limited
Slide 16: Profit & Loss Summary
Financials For personal use only Profit & Loss Summary SIX MONTHS ENDED 31 DECEMBER ($M) 2013 2012 Net Revenue 61.6 67.8 Staff Costs (42.0) (48.9) Operating Expenses (14.6) (16.6) Operating EBITDA¹ 5.0 2.3 Operating EBITDA Margin 8.1% 3.4% Depreciation & Amortisation (2.2) (2.3) Net Interest (0.1) -
Slide 17: Profit and Loss Summary cont'd: Significant items
Financials con’t For personal use only Profit and Loss Summary con’t Significant items • No significant item reported in the half year SIX MONTHS ENDED 31 DECEMBER ($M) 2013 2012 Restructure costs - (0.7) Non-cash fair value gain on deferred consideration - 0.7 Non-cash impairment - (75.9) Total sig
Slide 18: Balance Sheet
Financials con’t For personal use only Balance Sheet ($M) 31 Dec 2013 30 Jun 2013 Cash 21.3 19.4 • All cash committed deferred consideration Net Working Capital 3.8 2.4 liabilities paid. Contingent deferred consideration (Tranche 3A&3B liabilities) of Other Assets 4.0 4.4 $52.7m not recognised a 31
Slide 19: Cash Flow & Working Capital Management
Financials con’t For personal use only Cash Flow & Working Capital Management SIX MONTHS YEAR ENDED 31 DECEMBER ($M) 2013 2012 • Conversion from Operating EBITDA to cash Operating EBITDA 5.0 2.3 remains strong Movement in Working Capital (1.9) 2.3 • Increase in working capital due to prior Restructu
Slide 20: Appendix: Net Revenue & Operating EBITDA
Appendix For personal use only Net Revenue & Operating EBITDA SIX MONTHS ENDED 31 DECEMBER ($M) 2013 2012 TOTAL TOTAL DIVESTED PRO FORMA COMPANIES Operating Companies 61.6 65.9 - 65.9 Unallocated¹ - 1.9 (1.9) - Total Net Revenue 61.6 67.8 (1.9) 65.9 Operating Companies 8.5 5.9 - 5.9 Unallocated¹ - 0