Slide 1: BSA Limited Investor Presentation: Hills Merger Transaction
BSA Limited Investor Presentation December 2007 page 1 For personal use only BSA Limited Investor Presentation Hills Merger Transaction For personal use only
Slide 2: Agenda
BSA Limited Investor Presentation December 2007 page 2 For personal use only Agenda • Why the Merger? • The Transaction Explained • Shareholder Impact • What we will Look Like • Financials & Projections • What are we Getting? • Summary For personal use only
Slide 3: Why the Merger?
BSA Limited Investor Presentation December 2007 page 3 For personal use only Why the Merger? • Consistent with BSA’s strategy to diversify the business • Formation of a vertically integrated business with significantly enhanced diversity and quality of earnings • Revenues approaching $370 million •
Slide 4: Why the Merger?
BSA Limited Investor Presentation December 2007 page 4 For personal use only Why the Merger? • Strengthens the balance sheet, supporting strategy of seeking sensible acquisitions to complement the recent Triple M acquisition • Stronger balance sheet also allows BSA to participate in markets previous
Slide 5: The Transaction Explained
BSA Limited Investor Presentation December 2007 page 5 For personal use only The Transaction Explained • Acquire Antenna & TV Services divisions from Hills Industries Limited for 92.3 million Shares • Hills acquire a further 52.8 million shares at 90 cents per share for $47.5 million to achieve 50.1
Slide 6: The Transaction Explained
BSA Limited Investor Presentation December 2007 page 6 For personal use only The Transaction Explained Current Hills Antenna Divisions to Be Acquired Projections Reported (Projected) EBIT $8.4 m Valuation Multiple • Trailing 6 • Projected Acquisition Price – 92.3 million shares @ 55 cents $50.8 m •
Slide 7: Shareholder Impact
BSA Limited Investor Presentation December 2007 page 7 For personal use only Shareholder Impact Impact to “Example” Shareholder – 10,000 Ordinary Shares Cash Consideration Return of Capital Per Share at Record Date: Approximately 25 cents $2,500 (approx) Fully-Franked Interim Dividend: Approximately
Slide 8: What we will Look Like
BSA Limited Investor Presentation December 2007 page 8 For personal use only What we will Look Like 45.8%useofonly For personal Revenue 24.1% of Revenue 30.1% of Revenue
Slide 9: Hills Support Existing Executive Team
BSA Limited Investor Presentation December 2007 page 9 For personal use only Hills Support Existing Executive Team • Mark Foley remains Managing Director of BSA Limited • Mark Lowe remains Managing Director of Triple M • David Simmons to be appointed Chairman For personal use only
Slide 10: Impact on Profitability
BSA Limited Investor Presentation December 2007 page 10 For personal use only Impact on Profitability Increasing profitability and dividend June 2008 June 2008 Movement Forecast (Excl Hills) Pro forma (Inc Hills) Revenue $ $255 m $370 m Up 45.1% EBIT $ $19 m $28 m Up 47.4% NPAT $12 m $19.2 m Up 60%
Slide 11: Key Financial Metrics
BSA Limited Investor Presentation December 2007 page 11 For personal use only Key Financial Metrics Attractive investment fundamentals vs peers and market June 2008 All Ords Sector Pro forma (Inc Hills) P/E Ratio 10.5 16.7 18.8 Dividend Yield * 7.6% 3.9% 3.9% Debt : Equity 28% - - Forecast Revenue $
Slide 12: Revenue and EBIT Trend 2006 – 2008
BSA Limited Investor Presentation December 2007 page 12 For personal use only Revenue and EBIT Trend 2006 – 2008 Longer term trend shows sustained growth Revenue $ Million EBIT$ Million For personal use only
Slide 13: NPAT & EPS Trend 2006 - 2008
BSA Limited Investor Presentation December 2007 page 13 For personal use only NPAT & EPS Trend 2006 - 2008 Longer term trend shows sustained growth Earnings Per Share NPAT $ Million For personal use only
Slide 14: What are we Getting?
BSA Limited Investor Presentation December 2007 page 14 For personal use only What are we Getting? • Antenna & TV Systems – The leading supplier in Australia and New Zealand of a wide range of television reception and distribution equipment. • Access Television Services – Provides outsourced in-home
Slide 15: Summary
BSA Limited Investor Presentation December 2007 page 15 For personal use only Summary • Cash to shareholders of 25 cents per share • Interim fully franked dividend of 3.5 cents per share • Supports the BSA growth agenda • Opens new markets for BSA • Grows revenues to approximately $370 million • BSA