Hitech Group Australia Limited · ASX:HIT
Hitech Group Australia — Shareholder Meeting (November 2017)
20 slides from Hitech Group Australia's shareholder meeting presentation, Nov 24, 2017
Slide 1: AGM Presentation (ASX Code: HIT)
AGM Presentation (ASX Code: HIT) 24 NOVEMBER 2017
Slide 2: Important information and disclaimer
Important information and disclaimer This presentation has been prepared by HiTech Group Australia Limited ABN: 41 062 067 878 (“HiTech”). This document contains background information about HiTech current at the date of this presentation. The presentation is in summary form and does not purport be
Slide 3: HiTech overview
HiTech overview • HiTech Group Australia Limited is a specialist provider of recruitment and ICT consulting services • The term information and communications technology (ICT) is generally accepted to mean all technologies that, combined, allow people and organisations to interact in the digital wor
Slide 4: Board of Directors
Board of Directors Qualifications: BA (Sydney University), DipEd. Raymond Hazouri Experience: Founded HiTech in 1993 and has over 26 years’ experience in the IT industry. Prior to establishing HiTech, Ray worked in a number of capacities in the information technology industry ranging from management
Slide 5: Global ICT industry overview
Global ICT industry overview 5,000 1,000 Global Spending Asia Pacific Spending 4,000 800 US$ 752 BN US$ 3,486 BN US$ 720 BN US$ 3,387 BN 3,000 600 2,000 400 1,000 200 0 0 2016 2017 2016 2017 Data Center Systems Software Hardware / Device IT Service Communications Service In 2017, total spending is e
Slide 6: Australia ICT industry overview
Australia ICT industry overview Historical & Forecast ICT Employment, Selected Sector Spending⁽²⁾ 2011-22⁽¹⁾ A$ BN 2011 2016 2022 30 2016 2019 300,000 25.70 25 250,000 22.00 20 200,000 150,000 15 10.50 9.40 100,000 10 50,000 5 0 0 ICT ICT technical ICT sales ICT trades Electronic ICT industry IT Ser
Slide 7: Market Voices – ICT industry growth to continue
Market Voices – ICT industry growth to continue By 2020, half of the top 500 companies in Australia will 52% of the current ICT workforce is employed outside become part of the digital transformation economy, as ICT-related industries, in such areas as professional they see the majority of their bus
Slide 8: FY2017 Results highlights
FY2017 Results highlights 2015 2016 2017 A$ M 25 23.32 • FY2017 Revenue up 27% driven by 28% growth in contracting and 13% growth in permanent placement revenue 20 18.26 • FY 2017 is the company’s fourth consecutive year of double digit growth 15.04 15 10 4.71 5 3.89 3.43 3.18 3.12 1.35 0 Revenue Gr
Slide 9: FY2017 Results highlights cont’d
FY2017 Results highlights cont’d 2015 2016 2017 A$ M A$ Cent 3 9 2.31 7.01 2.17 6.55 2 6 1 0.81 3 2.61 0 0 NPAT EPS* • FY 2017 underlying growth represents the removal of the impact of the realised and unrealized investment gains in FY 2016 and FY 2017, which are non-core to HiTech • Final dividend
Slide 10: Specialised service with a winning formulae for success
Specialised service with a winning formulae for success • HiTech works closely with select, identified blue chip client base names on talent acquisition • Management intimately understands the key drivers of recruitment and ITC consulting services for its clients • Continually seeking out permanent
Slide 11: Revenue breakdown – majority Federal and State Govt clients
Revenue breakdown – majority Federal and State Govt clients FY 2017 Revenue Breakdown – Client Type 1.60% 1.84% 1.92% 8% 2.32% 2% 2.35% 19.37% 2.51% 2.52% Further Breakdown of 3.15% FY2017 Federal Govt Revenue 3.25% 7.68% 3.34% 3.61% 4.18% 3.72% 90% 3.88% Federal Govt State Govt Private Sector Feder
Slide 12: HiTech revenue breakdown cont’d
HiTech revenue breakdown cont’d FY 2017 Revenue Breakdown - Top 10 Clients Average History of Service by Client Type Concentration Federal Govt. 37% State Govt. 63% Private Sector Top 10 Others Years 0 4 8 12 16 20 + HiTech has a long history and robust working relationship with its key established
Slide 13: HiBase - proprietory, predictive database of ICT talent
HiBase - proprietory, predictive database of ICT talent • HiBase is a predictive intelligence tool built by HiTech for sourcing talent • A comprehensive up to date database of over 360,000 professional candidates for contract or permanent positions • The HiTech Services team is at the forefront of t
Slide 14: HiTech’s antidote to potential technology and competitor disruptions
HiTech’s antidote to potential technology and competitor disruptions • HiTech is at the forefront of enabling digital transformations by connecting the right people to work together and apply new, relevant and often non traditional technology, to transform the way we think about how we might communi
Slide 15: Strong Balance Sheet and financial discipline
Strong Balance Sheet and financial discipline Quick Ratio⁽¹⁾ Net Debt⁽²⁾ 6.00x A$ M 4.96x 0 5.00x -1 4.00x 3.36x -2 -1.84 3.00x 2.56x -3 2.00x -4 1.00x -4.41 -5 -5.21 0.00x -6 2015 2016 2017 2015 2016 2017 HiTech is a resilient and strong company with a safe balance sheet and no debt which is unique
Slide 16: Consistent track record is being rewarded in share price
Consistent track record is being rewarded in share price…. Volume in K Price A$ HIT’s Market Capitalisation A$ 1,800 0.90 Closing price as of 23-Nov-17 $0.80/share 1,600 0.80 52-week high on 17-Nov-17 $0.83/share 1,400 0.70 52-week low on 02-May-17 $0.52/share Ordinary shares on issue 35.15m 1,200 0
Slide 17: …but with significant upside left versus ASX Listed peers
…but with significant upside left versus ASX Listed peers HiTech Group Peer 1 Peer 2 Peer 3 Peer 4⁽¹⁾ Peer 5 Peer 6 Peer 7 Peer 8 Shares on issue M 35.15 89.58 67.17 231.99 246.15 171.46 154.18 61.52 64.04 Share Price A$ 0.80 0.08 0.16 1.00 0.04 0.11 0.17 0.13 1.38 Market Capitalisation A$ M 28.12 6
Slide 18: A simple 2 Tier growth strategy
A simple 2 Tier growth strategy - On-boarding of new clients Organic Growth - Enhance the service offering provided to existing clients by providing a broader suite of recruitment and ICT consulting solutions in addition to base contracting agreements - Expand the company’s ICT offering into high ma
Slide 19: Investment highlights – Investor proposition
Investment highlights – Investor proposition - 3 cents fully franked interim dividend was paid in FY2017, bringing total dividends for the year to 6 cents Dividends - Dividend yield of about 7.5% at the current share price of 80 cents* - Intention to maintain dividends - FY2017 was a third consecuti
Slide 20: Contact information
Contact information Elias Hazouri CEO elias@hitechaust.com (02) 9241-1919 www.hitechaust.com Level 9, 189 Kent street, Sydney, NSW 2000, Australia 20
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