Cpt Global Limited · ASX:CGO
Cpt Global — H1 FY2011 Earnings Presentation
26 slides from Cpt Global's earnings presentation, Feb 21, 2011
Slide 1: Investor Presentation: Half Year Results FY2011 and Outlook
For personal use only CPT Global Limited Investor Presentation Half Year Results FY2011 And Outlook 21 February, 2011
Slide 2: Presentation Summary
Presentation Summary For personal use only • CPT Global Background • 2011 Half Year Financial Summary • 2011 Half Year Review • Market Strategy • Market Opportunities • 2011 Conclusion & Outlook Background | Summary | Financials | Review | Strategy | Opportunities | Outlook Slide 2
Slide 3: Background
Background For personal use only • 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 | Summa
Slide 4: IT Cost Optimisation
IT Cost Optimisation For personal use only 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
Slide 5: IT Management & Technical Consulting
IT Management & Technical Consulting For personal use only • 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 fu
Slide 6: Service Offerings
Service Offerings For personal use only Storage Services Testing Services Technical Consulting Asset Management IT Operational Governance Solution Design and Architecture Performance Tuning & benchmarking Capacity Planning Database Services IT Management Infrastructure Services Cloud Computing Trans
Slide 7: Global Operations and Offices
Global Operations and Offices For personal use only • Australia - 60 clients Melbourne Sydney Canberra • Europe - 15 clients London Paris Munich • North America - 16 clients New York Washington, DC Toronto Background | Summary | Financials | Review | Strategy | Opportunities | Outlook Slide 7
Slide 8: Financial Summary
Financial Summary For personal use only % Movement $ millions FY 11 FY 10 prior year Revenue $19.6 $18.8 4% EBITDA $1.2 -$0.7 271% NPAT $0.6 -$0.9 166% EPS 1.7¢ -2.3¢ 174% Interim Dividend (fully franked) 1.5 ¢* 0.0¢ 100% Total Shares 36.7m 36.7m 0% *: The interim dividend is a distribution of 90% o
Slide 9: FY2011 First Half – A Period of Consolidation
Fy 2011 First Half – A Period of Consolidation For personal use only Now that the business has been restructured and business development activities have been actively pursued it’s time for payback • Signing of four major contracts (3 risk / reward & 1 fixed price) • Renewal of two large annuity acc
Slide 10: Financial Performance – EPS & Dividends
Financial Performance – EPS & Dividends For personal use only 10.0 Current Interim 7.8 8.0 Dividend 6.0 6.0 1.5 5.5 5.5 5.0 Record Date: March 30, 2011 4.0 cents 3.3 3.3 Payment Date: 2.8 2.0 2.5 2.5 April 15, 2011 1.5 0.0 0.0 2005 2006 2007 2008 2009 2010 2011 100% franking for 0.0 Australian -2.0
Slide 11: Financial Performance - Revenue
Financial Performance - Revenue For personal use only 45.0 40.0 35.0 21.5 22.2 30.0 22.7 19.2 25.0 $ million 14.9 14.1 20.0 15.0 23.1 21.7 10.0 19.6 18.7 18.7 16.3 14.9 5.0 0.0 2005 2006 2007 2008 2009 2010 2011 First Half Second Half Background | Summary | Financials | Review | Strategy | Opportuni
Slide 12: Financial Performance – NPAT-Reported
Financial Performance – NPAT-Reported 4.0 For personal use only 3.0 1.7 2.0 Note: 1.1 1.0 1.1 0.3 The 2010 NPAT 1.0 includes a goodwill 1.2 1.3 1.3 1.1 $ million 1.0 write off of $2.4m 0.6 0.0 2005 2006 2007 2008 2009 2010 2011 -0.9 -1.0 -2.0 -2.2 -3.0 -4.0 First Half Second Half Background | Summar
Slide 13: Balance Sheet
Balance Sheet For personal use only $ millions FY 11 FY 10 Current Assets $11.8 $11.7 Total Assets $19.8 $19.8 Current Liabilities $6.0 $6.2 Total Liabilities $6.4 $6.7 Net Assets $13.4 $13.1 Net Tangible Assets $6.1 $5.7 Total Shares on Issue 36.7 36.7 Background | Summary | Financials | Review | S
Slide 14: Revenue | Line of Business
Revenue | Line of Business Globally, there is a significant shift in CPT’s revenue base from technical support and project For personal use only & program management to capacity management and performance tuning. This is in line with CPT’s value proposition and is expected to be the basis of further
Slide 15: Revenue | Sector
Revenue | Sector For personal use only There is a significant shift away from the telecommunications sector to banking and finance due primarily to the establishment of 2 new strategic accounts. CPT has 3 global telecommunications clients (one in Australia) and 7 Banking & Finance clients (4 in Aust
Slide 16: Revenue | Region
Revenue | Region The international business continues to grow as a percentage of global income as CPT For personal use only targets multinational companies with large computer installations. This is where CPT’s value proposition is best exploited. North America 15% Australia 14% 76% 14% Europe 10% 7
Slide 17: 2011 First Half Review | Australia: Challenges & Focus Areas
2011 First Half Review | Australia Key Challenges & Focus Areas For personal use only • Continued wind down of major project at CPT largest Australian client (49% PCP client revenue decrease) • Establishment of key strategic accounts • Refinement of intellectual property and service offerings • Redu
Slide 18: 2011 First Half Review | Australia: Key Achievements
2011 First Half Review | Australia Key Achievements For personal use only Revenue: $14.2m vs m $13.9m PCP • Establishment of 2 strategic accounts in the Financial Services sector • Increasing revenues from these clients by more than 120% on PCP • Establishing solid foundation for continued growth •
Slide 19: 2011 First Half Review | International: Challenges & Focus Areas
2011 First Half Review | International Key Challenges & Focus Areas For personal use only • Client delays on discretionary budgets • Capitalising on past business development investments • Converting clients from phase 1 projects to the lucrative phase 2 risk / reward engagements • Foreign exchange
Slide 20: 2011 First Half Review | International: Key Achievements
2011 First Half Review | International Key Achievements For personal use only Revenue: $5.4m vs $4.9m PCP • Signing of 4 large performance optimisation contracts (3 risk / reward & 1 fixed price), all of which will lead to long term revenue streams • Renewal of 2 long term contracts with CPT’s 2 lar
Slide 21: Growth Strategy
Growth Strategy Build reputation in the market For personal use only • Experts in capacity planning, performance tuning and IT management • Use reputation to establish more strategic client relationships and reduce reliance on previous largest client Target growth in multinational companies with lar
Slide 22: Future Market Positioning
Future Market Positioning For personal use only Market Coverage: FY11 Update Market Coverage: - 4 new contracts in North America & Europe • Expand international client base - Target new clients in North America & Europe • Focus on NSW region - Enhancement of services and product • Consolidate delive
Slide 23: Global Data Centre Optimisation - Opportunity
Global Data Centre Optimisation - Opportunity 18,000,000 £ € For personal use only $ 16,000,000 Projected Datacentre Server Demand Growth Projected Datacentre Storage Growth (Production) (Production) 14,000,000 12,000,000 25,000 160.00 CPT Significant cost 140.00 Data Centre 20,000 Optimisation
Slide 24: Key Opportunities in 2011 - Australia
Key Opportunities in 2011 - Australia For personal use only • 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 co
Slide 25: Key Opportunities in 2011 - International
Key Opportunities in 2011 - International • Commencement of new optimisation engagements in Europe For personal use only • Move from Phase 1 engagements to the larger more profitable Phase 2 engagements • New European engagements in Banking, Car Manufacturers and Insurance • Continued growth in our
Slide 26: Conclusion and Outlook
Conclusion and Outlook • First Half: A period of consolidation For personal use only • Australian operations have steadied. Improved performance protected CPT from the impact of a significant reduction in CPT business in its former largest client • International operations are starting to benefit fr