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CPT GLOBAL LIMITED — AGM Information 2005
Nov 29, 2005
64642_rns_2005-11-29_c9a546be-1606-48b5-98c2-1db2642e4f4a.pdf
AGM Information
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CPT Global Limited
Chairman's Address 2005 Annual General Meeting


Slide 1
ARE READY SERVICE
Le Sincal Consument
Introduction
Good Morning. In this presentation I would like to draw information from our 2005 annual report and our September 2005 investor presentations.
CPT Global
ASX code: CGO
Web site www.CPTqlobal.com
Slide 2
I will give a summary of our 2005 results and discuss the important elements of our business.
Finally I will give an update on the current year and an insight into our strategy for the future.
CPT GLOBAL
Slide 3
Summary of FY2005 Financials
Highlights: Record dividend, revenue steady, profit growing. Revenue \$29.0 million \$ 3.2 million i = Bihya Net Profit after Tax (pre amortisation) $$2.3$ million Net Profit after Tax \$1.8 million Normalised core operating net profit after tax increased by 27% EPS (pre amortisation)
Full Dividend (fully franked)
6.7 cents $55$ cents
Note: With the adoption of Australian equivalents to IFRS in 2006, amortisation of goodwill (2005 amortisation - \$481k) will no longer be expensed. This increase in profit will be available for dividend pending cash flow requirements.
Highlights of 2005 operationally.
- Increased CPT Global brand recognition by marketplace. U
- Expansion of client base and repeat business.
- Growing reputation and recognition of management of IT, midrange and n. mainframe technical services.
CPT Global
- Refinement of Risk/Reward model. rw
- Strengthened business development capability via specialised account ŋ managers.
Our Market Focus
CPT Global continues to consolidate its client footprint globally with ö engagements undertaken in sixteen countries.
CPT Global
- Focused company culture of independence and client side consulting 2 services to clients.
- Success in the continued development of signature clients in the D international regions.
- Focus on expanding the current client base through increased market n penetration locally and internationally leveraging its proven services and experienced consultant base.
CPT Global
Slide 6
Our Market Sector Focus
- Maintained a spread of industry exposure with a continued focus on the O banking, government & telecommunications sector.
- Focus on both banking & finance and manufacturing primarily via our cost o reduction line of business in our international operations.
- Continue to maintain a diversity of lines of business (LOB) in response to IJ client requirements.
- Continue ongoing development and enhancement of services including the O continued development of consultant toolkits and refinement of intellectual property.
- Maturing of quality control processes with ISO9001:2000 quality Ľ certification to worldwide operations.
2005 Revenue by LoB (Worldwide)

CPT Global
CPT Global
IT Cost reduction using the Risk/Reward model
- Performed assignments in Germany, United Kingdom, Switzerland, 0 Netherlands, Spain, Belgium and USA.
- This entrée service is the first step to establishing an annuity business with C) these international clients
- CPT Global believes this model will contribute to profits over time for the r. following reasons:
- Australia utilises approximately 1.7% of the world's mainframe processing power - CPT Global now works with clients overseas that utilise 1% of the world's mainframe processing power;
- profit margin increases as the client's savings increase; and
- introduction of Risk/Reward model to midrange cost reductions O assignments.
Focus on Consultants
- Recruitment of highly skilled consultants and leading industry experts. O
- Repositioning of consultant engagement model with the introduction of permanent employment for selected consultants.
- Strengthening business development capability via the employment of D specialised account managers with a focus on client sector and line of business.
- Focus on recruitment to facilitate growth while maintaining the quality of K. service delivered to clients.
- Underlying focus on consultant care at the heart of CPT Global's culture
- Sponsoring industry certification of consultants e.g. ITIL
- Valuing the strong working relationship with consultants and staff.
CPT Global
CPT etobal
Slide 10
Year to Date - Operations
- CPT Global Limited is now a member of the eServices Government Panel in Victoria which has opened up Victorian Government to our services.
- As clients move towards multi-sourcing relationships, our focus on client side consulting has been recognised by industry with a number of other consultancies partnering with us in client side assignments.
- In Victoria our historic reliance on Telstra as a client has decreased with a major Australian bank now our largest Australian client.
- We have successfully re-engaged with another Australian bank with both our management of IT and technical services lines of business.
Year to Date - Operations
As a result of the marketing efforts undertaken both nationally and internationally, seven new cost reduction assignments are anticipated to commence with a number of these to be invoiced under the Risk/Reward (success fee) model.
CPT Global
- Increase marketing expenditure in both the European and United States markets, including the completion of a number of revenue neutral due diligence cost reduction assignments.
- CPT Global is currently positioned with 63% of Australian annual revenue budget sitting as contracted forward load.
CPT Global
Focus on USA Operations
- Lesson's learnt in our expansion in Europe and the United Kingdom are O being applied to our USA operations.
- Our current focus is on Phoenix, Arizona as the hub our USA operations. n
- The IT capacity in Phoenix alone is significantly more than Australia as a K. whole.
- This IT centre has growth potential with other large USA IT centres including Denver, Los Angeles and Dallas being within easy access.
- Our current experience is that successful engagements are resulting in Œ additional client recommendations.
- We are using talented local American resources in conjunction with Australian experts to undertake our USA assignments.
- Our current marketing focus has been at the CIO and CFO level, with a Ö. recent international CIO conference seeing CPT very well received.
2005 YTD Performance
- October YTD Revenue \$ 11 million, an increase on the prior year.
- Growth in revenue and improved profitability is expected in 2006.
- The 2006 growth will be weighted to the second half of the financial year. D
CPT Global
- First Half Profit before Tax is tracking in line with last year's result. U
- This result could be impacted by timing and measurement of current O international risk reward assignments.
- The half year profit has been influenced by increased marketing n expenditure both nationally and internationally with anticipated payback to commence in the second half through increased revenue and profit.
Outlook - Market Conditions
Ongoing improvement in the general market sentiment and attitude to IT spending.
CPT Global
- Clients' increased focus on revenue generating IT expenditure.
- Clients' continued focus on IT and business cost reduction.
- Clients' continuing the process of establishing multi-sourcing relationships.
- Clients face the significant challenge of performing a company wide technology refresh of their IT operations.
- Over the next two years the majority of the major outsourcing contracts will require renegotiation or replacement - CPT Global is well placed to support clients with the significant challenges facing their outsourcing arrangements.
CPT GLOBAL
Slide 15
Outlook - Strategy
- Leverage growth from proven services and experienced consultant base.
- Combining management of IT and technical consulting to create unique solutions.
- Increasing independent client side delivery services.
- Continue to scale up business model to support additional clients and consultants.
- Capitalise on interim / phase 1 international engagements undertaken in the first half becoming full risk reward assignments in the second half.
- Committed to increasing financial returns.