BSA LIMITED — Investor Presentation 2007

Dec 12, 2007

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BSA Limited
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Investor Presentation Hills Merger Transaction

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For personal use only

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Agenda

• Why the Merger?

• The Transaction Explained

• Shareholder Impact

• What we will Look Like

• Financials & Projections

• What are we Getting?

• Summary

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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

• Hills bringing product opportunities in markets that have growth, in particular

• Satellite delivery of voice

• Data and telephony services

• A presence in the audio visual retail market

• Cost synergies should be realised as a result of improved purchasing power across a number of areas

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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 previously considered out of reach

• Geographic coverage now extends internationally to New Zealand

• Hills Divisions acquired are immediately accretive

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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% ownership of BSA

• A reduction of capital to existing shareholders of approximately 25 cents per share followed by a conversion of 4 existing BSA shares into 3 BSA shares

• Fully-franked interim dividend of approximately 3.5 cents per existing share

• Total cash to shareholders 28.5 cents per share

• Transaction requires shareholder and independent expert support to proceed

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The Transaction Explained

Hills Antenna Divisions to Be Acquired

Reported (Projected) EBIT

Current Projections $8.4 m

Valuation Multiple

• Trailing

• Projected

Acquisition Price – 92.3 million shares @ 55 cents

6 $50.8 m

• Hills Divisions acquired are immediately accretive

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Shareholder Im act p

Impact to “Example” Shareholder – 10,000 Ordinary Shares

Cash Consideration

Return of Capital Per Share at Record Date: Approximately 25 cents

Fully-Franked Interim Dividend: Approximately 3.5 Cents per Share held at record date

Total Cash to Shareholders

Total Cash to Shareholders – Per Share

$2,500 (approx)

$350 (approx)

$2,850 (approx 28.5 cents (approx)

Number of Shares

Shares Held at Record Date

Consolidation from Record Date

10,000

7,500

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What we will Look Like

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For personal use only45.8% of Revenue
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24.1% of Revenue 30.1% of Revenue

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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

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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%
Basic EPS	6.6 cents	6.64 cents	Up 0.6%

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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	$370 m	-	-
Forecast EBIT	$28 m	-	-
Forecast NPAT	$19 m	-	-

* Note: Yield based on inclusion of Hills Divisions results for 3 months of the Financial Year

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Revenue and EBIT Trend 2006 – 2008

Longer term trend shows sustained growth

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EBIT$ Million
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NPAT & EPS Trend 2006 - 2008

Longer term trend shows sustained growth

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NPAT $ Million
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Earnings Per Share
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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 fulfillment services to regional subscription television provider AUSTAR

• Hills Signal Master – New Zealand

• One of New Zealand’s largest installation companies

• Importer and distributor of antenna, satellite, MATV, SMATV, cable, home theatre, and microwave equipment and associated accessories

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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 & Triple M positioned to exploit opportunities from Hills associated companies (Orrcon, Fielders, Ezy-Strut, Woodroffe)

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