Aspermont Limited · ASX:ASP
Aspermont — Investor Presentation (August 2017)
30 slides from Aspermont's investor presentation, Aug 31, 2017
Slide 1: New Growth Phase
1 For personal use only New Growth Phase Alex Kent (Group Managing Director) Nishil Khimasia (Group Chief Financial Officer) August 2017 www.aspermont.com
Slide 2: Why invest: Investment Summary
Why invest 2 Investment Summary For personal use only • Globally dominant in resurgent resources industry • Digital media platform that scales both geographically and by sector • Strong revenue growth, quality and forward visibility • New management team & board now in place • 2 Year restructuring &
Slide 3: Who we are
Who we are 3 Leading Digital Media Services Provider to Industry For personal use only Aspermont is an International ASX listed company with offices in Australia, UK, Brazil and Canada The company has spent the last 20 years building a commercial model for B2B media that is founded on utilising high
Slide 4: Our history: Company Timeline
Our history 4 Company Timeline For personal use only PHASE 1: Develop digital model; PHASE 2: Geo expansion; PHASE 3: Structure, PHASE 4: Brand extension, Exchange listing Competitive build Platform, People New markets, Scalability ASX Listing Global Positioning Project Horizon New Board Appointed A
Slide 5: Year Turnaround Transformation Complete
2 Year Turnaround 5 Transformation Complete For personal use only Centralisation FY15 FY17 Financial FY15 FY17 Operational Structure Decentralised Centralised EBITDA ($3.5m) Positive Exec Team Located Globally spread London Annual Cash flow ($3m) Positive Board Located Globally spread London / Perth
Slide 6: Key Attributes: Ten Fast Facts in FY18
Key Attributes 6 Ten Fast Facts in FY18 For personal use only AUDIENCE STATS KEY FINANCIALS CORE SUBSCRIPTION METRICS 100+ +VE Earnings 5 Years Primary News Stories per day +VE NPAT Average Contract Length 195+ 7% 14% Growth Countries Covered Gross margin Annual Contract Value 35,000 35% Growth Paid
Slide 7: Hybrid Media Model: Industry Landscape
Hybrid Media Model 7 Industry Landscape For personal use only Old B2B Media New B2B Media Quality Content Focus Hybrid Model Content Volume Focus Retrenching Key Talent Freelancer Model Print Revenue Based Content Quality & Volume Focus Digital Revenue Based Ad In-House Sales Team Investing in Key T
Slide 8: Capability and Positioning: Competitive Strengths
Capability and Positioning 8 Competitive Strengths For personal use only Aspermont’s digital products have established leadership in a highly competitive field over the last 20 years. Our highly regarded content has supported paywall technology to differentiate a range of products and services Brand
Slide 9: Aspermont Business Model: Integrated Customer Journey
Aspermont Business Model 9 Integrated Customer Journey For personal use only Identify target market Hire content Re-architect existing freelancers Digitally market daily (Editorial Coverage portal site structure newsletter Ratio) (Quality/Volume) Onboarding and Multiple member Generate free trial Le
Slide 10: SAAS Metrics
SAAS Metrics 10 Growing Subs Base with Rising ARPU and Retention For personal use only FY16 FY17 IMPROVEMENT Large lifts in Growth alongside large Orders 8,637 8,963 4% price uplift Key metrics: Renewal Rate (Volume) 73% 78% 6% Now trending over 80% ACV & LY Annual Contract Value (ACV) $4,458,396 $5
Slide 11: Brand validation & cross-sector reach: Key Clients
Brand validation & cross-sector reach 11 Key Clients For personal use only COMPANIES SUPPLY CHAIN FINANCIAL SERVICE SERVICES MINING MACHINERY / EQUIPMENT BANKING ACCOUNTING ENERGY ENGINEERING INVESTMENT SERVICES LEGAL STEEL TECHNOLOGY INSURANCE MANAGEMENT CONSULTANT
Slide 12: Stabilisation; Turnaround; Growth: Financial Metrics
Stabilisation; Turnaround; Growth 12 Financial Metrics For personal use only Revenues (A$’m) OPEX (A$’m) 20 20 14.8 15 15 11.7 12.1 * 10 10 19.5 13.4 12.8 5 5 0 0 FY 15 FY 16 FY 17 FY 15 FY 16 FY 17 Revenue stabilised during transformation period Centralization, Digitalization and Offshoring *$0.7m+
Slide 13: Diversification and quality: Revenue Analysis
Diversification and quality 13 Revenue Analysis For personal use only Revenue by Geography Revenue by Source 1% 3% 1% Australasia 25% Other 34% 38% North America 17% 18% Subscriptions Europe 26% South America 57% Digital 44% 35% Advertising Africa Print FY15 FY16 FY17 Advertising Australian heartlan
Slide 14: Key Growth Strategy – Build Core
Key Growth Strategy 1 – Build Core 14 Keystone Revenue & Cross Monetization For personal use only Content Marketing Content Hubs, Webinars, Surveys, Client Profiles, List rental 23% Research & Intelligence Launch of new research business for open market and client $$ bespoke Lead Generation Engines
Slide 15: Key Growth Strategy – New Sector, New Geographies
Key Growth Strategy 2 – New Sector, New Geographies 15 Leveraging Model & Expertise For personal use only 1 Scale existing brands to new geographies 2 Leverage multi-lingual platform capabilities 3 Build/launch new brands in new sectors
Slide 16: Growth Strategy – Disciplined Acquisitions
Growth Strategy 3 – Disciplined Acquisitions 16 Targeted Assets, Cost Synergy & Digitalization For personal use only 1 Target acquisitions 2 Restructure and deliver cost synergies 3 Transition to ASP platform, digitalize and develop product extension 4 Cross-sell
Slide 17: What we are doing in the next months: Execution Plan
What we are doing in the next 12 months 17 Execution Plan For personal use only Launch New Launch Accelerate Integrated Business Lines V4 Technology Subscriptions Sponsorship Commercially Platform Growth Solutions Data Further develop Order Volume Raising overall Research Our marketing ARPU
Slide 18: Conclusion
18 Conclusion For personal use only • 2 year transformation complete • Aspermont is now the worlds leading media services provider to global resources industry • Company has clear and substantial growth strategies to leverage its content platform and digital expertise; to aggressively expand the bus
Slide 19: For further information
19 For further information For personal use only Address 4th floor, Vintners Place 68 Upper Thames Street London, EC4V 3BJ Contact Info Email: alex.kent@aspermont.com Telephone Office Phone: +44 (0) 207 216 6060
Slide 20: Why we can win: Highly Experienced Leadership Team
Why we can win 20 Highly Experienced Leadership Team For personal use only Ajit Patel Nishil Khimasia Alex Kent Robin Booth Sean McKeown Chief Operating Chief Financial Group Managing Group General Manager General Manager; Officer Officer Director Australia Ajit has more than 30 years of Nishil has
Slide 21: Why we can win: Board of Directors
Why we can win 21 Board of Directors For personal use only Andrew Kent Geoff Donohue Alex Kent Christian West Clayton Witter Chairman and Lead Independent Director Group Managing Non-executive Director Non-executive Director Executive Director Director Andrew Kent, Chairman and Mr. Geoff Donohue has
Slide 22: Financial Highlights
Financial Highlights 22 For personal use only 50% 100% OPERATING REVENUE* Up 5% to $20.8 m Revenue from continuing +0.9 m From $19.9 m operations grow on constant Gross Margin1 up 39% To $3.2 m currency basis after years of +0.9m From $2.3m double digit decline Normalised EBITDA2 up 106% to $0.1 m
Slide 23: Continuing Operations: Summary P&L and Key Operating Metrics
Continuing Operations 23 Summary P&L and Key Operating Metrics For personal use only $’000 FY15 FY16 FY17 $’000 FY15 FY16 FY17 Revenue from Continuing Operations1 16,350 11,710 11,401 Gross Profit margin (% of revenue)4 3% 5% 7% Costs of undertaking business excl. (19,407) (12,733) (12,210) Normalis
Slide 24: Improved net position means almost zero debt
Improved net position means almost zero debt 24 Summary Balance Sheet For personal use only Current assets 30 June ‘16 30 June ‘17 Current Liabilities 30 June ‘16 30 June ‘17 Shareholders Equity 30 June ‘16 30 June ‘17 Cash and cash equivalent 1,795 2,626 Trade and other payables 7,235 4,470 Issued
Slide 25: Improved cash flow conversion
Improved cash flow conversion 25 $’000 For personal use only FY 16 FY 17 1 Cash Receipts from Suppliers 24,889 19,435 Notes: 1. 2016 Cashflows include revenues of $1.4m from Cash Payments to suppliers* (24,550) (19,220) discountinued products Financing/Other (496) (45) 2. Normalised Operating Cashfl
Slide 26: Cost composition and scalability
Cost composition and scalability 26 Margin expansion while increasing investment For personal use only Total expenditure ($ Millions) Direct costs / Gross Profit 40.0 16% 15% 35.0 14% Corporate, Occupancy & 30.0 12% Admin 25.0 10% 28% 9% 20.0 8% 15.0 6% Cost Of Sales Support & 54% 10.0 4% 3% Service
Slide 27: NPAT bridge
NPAT bridge 27 Continuing improvement in profitability For personal use only Attributable $’000 Reported to parent Key Improvements NPAT FY16 (6,829) (6,470) • EBITDA expansion +$0.6m YoY Improvement in operational profit 626 • Divestment +$5.9m Divestment related • Gain from Sale of Beacon Events 5
Slide 28: Clear Responsibility: Functional Structure – Board & Exec
Clear Responsibility 28 Functional Structure – Board & Exec For personal use only ASPERMONT General Managing COO CFO Board Manager Director Company IT Advertising Finance IR / Funding Secretary Vision & Production Events Premises Audit Strategy Marketing Research Insurance Legal Remuneration Corpora
Slide 29: Glossary
29 Glossary For personal use only Lifetime value based on average revenue per unit (ARPU) and renewal rates Gross Profit and Margin has been calculated as contribution from revenue less direct costs excluding Group Management and Corporate costs and margin as gross profit divided by revenue Normaliz
Slide 30: Disclaimer
30 Disclaimer Important notice disclaimer presentation. For personal use only Preparation of information Forward-looking standard elements All financial information has been prepared and reviewed in accordance with Australian Accounting Standards. This presentation may include forward-looking statem