CPT GLOBAL LIMITED — AGM Information 2010

Nov 25, 2010

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CPT Global Limited

Chairman ’ s Address Annual General Meeting 26 N ovem b er 2010

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Presentation Summary

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• CPT Global Background

• 2010 Financial Summary

• 2010 Year In Review

• Market Positioning

• Market Opportunities

• 2011 Outlook

Background | Summary | Review | Positioning | Opportunities | Outlook

Slide 2

Background

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• Founded in Australia in 1993

• ASX listed in 2000 | CGO

• All services target IT cost reduction

• Industry based expert consultants | ~ 200

• Global operations | Australia, Europe & North America

• Mixture of private sector and government clients

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Slide 3

Background | Summary | Review | Positioning | Opportunities | Outlook

IT cost optimisation

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	IT cost optimisation	IT cost optimisation	IT cost optimisation	IT cost optimisation
		Service Line	l C ient Outcome
		Capacity	Minimise cost via optimised IT capacity
		Performance	Reduce running costs and maximise lifetime of existing infrastructure
		Testing	Ensure systems perform to expectations while optimising the testing costs
	MIT Management of IT Optimise the cost of IT while ensuringalignment of future business strategy +
	MIT	Management of IT	Optimise the cost of IT while ensuringalignment of future business strategy

Slide 4

Background | Summary | Review | Positioning | Opportunities | Outlook

IT Management & Technical Consulting

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• CPT Global has two main lines of business

• IT Management and Technical Consulting

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• CPT’s services are designed to deliver solutions to clients that enhance the control ,

• stability , efficiency , reliability and cost effectiveness of all IT functions

• Our IT Management business delivers this by providing strategic advice, IT governance

• and project management services

• Our Technical Consulting focuses on delivering our core competencies of Capacity Planning, Performance Tuning and Testing services via our network of over 200 Independent, Experienced consultants

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Slide 5

Background | Summary | Review | Positioning | Opportunities | Outlook

Service Offerings

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Storage Services

Testing Services A sse t M anagemen t Capacity Planning

Testing Services Technical Consulting t M anagemen t IT pera O ti ona overnance l G Database Services IT Management Infrastructure Services Solution Design and Architecture Per ormance Tun ng enc f i & b h mar ki ng Cloud Computing Transition

IT Management

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Slide 6

Background | Summary | Review | Positioning | Opportunities | Outlook

International Operations

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• Australia ‐ 60 clients Melbourne Sydney Canberra • Euro p e ‐ 15 clients London Paris Munich • North America ‐ 14 clients New York Washington, DC Toronto

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Slide 7

Background | Summary | Review | Positioning | Opportunities | Outlook

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Financial Summar y

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$ millions FY 10 FY 09
Revenue $37.7 $43.9
EBITDA ($0.3) $3.7
NPAT ($3.1) $2.2	FY10 NPAT includes
EPS (8.5 ¢) 5.9¢	goodwill impairment of $2.4M
Full Dividend (fully franked) 0.0 ¢ 5.5¢
Final Dividend (fully franked) 0.0 ¢ 3.0¢
Total Shares 36 746 364 36 786 364 , , , ,

Slide 8

Background | Summary | Review | Positioning | Opportunities | Outlook

2010 – A year of challenge and investment

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• Economic environment remained challenging

• GFC delayed client decisions, particularly in Europe and North America

• IT projects put on hold and discretionary expenditures curtailed

• Awardin of new accounts failed to offset wind down at existin client sites g g

• Significant reduction of revenues from our largest Australian client

• Negative impact of Gershon report on Government clients

• Impact of Federal election

• Ongoing margin pressure

• The impact of the restructure and continued business development resulted in a turnaround in operating performance from an $0.8m loss in the first half to a modest profit in the second half.

• Results were exacerbated by a one off goodwill impairment charge of $2.4m.

Background | Summary | Review | Positioning | Opportunities | Outlook

Slide 9

2010 – A year of challenge and investment

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• Continued investment in business development resulted in the expansion of our overseas footprint and an increase in the pipeline

• Management restructure, reducing a management layer and enhancing of business development function by taking sales closer to the client

• Investment in practice and methods to “modernise and productise” service offerings

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Slide 10

Background | Summary | Review | Positioning | Opportunities | Outlook

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Financial Performance - Revenue

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50.0
45.0
4 0 . 0
35.0
30.0
25.0
44.5 43.9
41.4
20.0
37.7
15.0 29.0 31 . 1
10.0
5.0
0.0
2005 2006 2007 2008 2009 2010
n
$millio
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Slide 11

Background | Summary | Review | Positioning | Opportunities | Outlook

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Financial Performance – Net Profit after Tax

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4.0
3.0
2.0
3.0
1.0 2.3 2.1 2.2
1.7
0.0
Goodwill Impairment
-0.7
Operating Profit/(Loss)
-1.0
- 1st Half Loss ($856k)
- 2nd Half Profit $123k
-2.4
-2.0
-3.0
-4.0
2005 2006 2007 2008 2009 2010
n
$millio
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Background | Summary | Review | Positioning | Opportunities | Outlook

Slide 12

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Financial Performance – Dividends er Share p

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9.0
8.0 7.7
-
7. 0 History of strong returns
6.0
6.0
5.5 5.0 5.5 - No distribution in a loss
making year
5 . 0
4.0 - New significant
shareholder. Largest
3.0 South American IT service
provider
2.0
1.0
0.0
-
2005 2006 2007 2008 2009 2010
Cents
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Slide 13

Background | Summary | Review | Positioning | Opportunities | Outlook

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Balance Sheet

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||||||||
|---|---|---|---|---|---|---|
|$ millions|FY 10|FY 09|
|Current Assets|$11.7|$14.3|
|Total Assets|$19.8|$24.8|
|Current Liabilities|$|6.4|$|6.7|
|Total Liabilities|$6.7|$7.0|
|Net Assets|$13|.|1|$17|.|9|
|Net Tangible Assets|$5.7|$10.5|
|Total Shares on Issue|36.7|36.7|

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Slide 14

Background | Summary | Review | Positioning | Opportunities | Outlook

Revenue | Line of Business

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Capacity Management
8%
Technical Support
Services 20%
9%
22%
Sourcing
Mainframe & Distributed
1% 25%
22% Performance Tuning
4%
21% 19%
Project &
Program 19%
Management 5%
4% 21%
Management, Functional &
MIT General
Automation Testing
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Slide 15

Background | Summary | Review | Positioning | Opportunities | Outlook

Revenue | Sector

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Transport
1%
Telecommunications
1%
31%
29%
42%
Banking &
47%
Finance
1%
2%
2%
Retail 4% 20%
Other
20%
Government
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Slide 16

Background | Summary | Review | Positioning | Opportunities | Outlook

Revenue | Region

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North America
10%
Australia
10%
19%
15%
75%
71%
Europe
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Slide 17

Background | Summary | Review | Positioning | Opportunities | Outlook

2010 in Review | Australia

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Key Challenges

• Economic environment / delays on discretionary budgets

• Winding down of major project at CPT’s largest Australian client

• 24% Year‐On‐Year client revenue decrease

• in NSW market

• Expanding presence

Key Achievements

• i i i i h ncrease i d i b k s

• Expans on n F nance sector, w t engagement n two ma or an j

• Establishment of new clients in government and insurance

• Business restructure

• Reduce layer of management

• Enhanced service offerings through investment in Intellectual Property

• Establishment of Data Centre modelling service offering

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Slide 18

Background | Summary | Review | Positioning | Opportunities | Outlook

2010 in Review | International

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Key Challenges

• GFC / delays on discretionary budgets

• Foreign Exchange impact

Key Achievements

• Retention of major client base and expansion of service offering throughout USA and Canada

• Re emergence of previous North American clients seeking cost savings

• Provision of continued Cost Reduction engagements to major clients in Germany and France, generating significant interest in these markets

• Establishment of CPT’s strongest ever opportunity pipeline

“For the fifth continuous year, American Express is our largest customer in North America. We continue to have a very healthy relationship with them and look forward to supporting them into the future.

“On the back of successful 3 year relationship with Rogers Communications, (a Fortune 500 company), CPT have opened a Toronto office and service five local clients covering the Insurance, Telecommunications & Banking sectors”

We are working with other similar sized clients in the region and expect to have significant cost saving projects with an additional two or three accounts in 2011.”

“Trinkhaus HSBC is our longest serving customer in Germany, with over 6 years provision of performance assurance support. We continue to partner with then and expect this to continue into 2011.”

Slide 19

Background | Summary | Review | Positioning | Opportunities | Outlook

Future Market Positioning

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• Market Coverage: FY10 Update

• Market Coverage: - Target new clients in North America & Europe

• • Expand international client base - Enhancement of services and product

• • Focus on NSW region offerings across all Lines of Business

• • Consolidate delivery capability - Penetration of mid-range market • Increase local resourcing • Leverage Intellectual Property Service Positioning:

• Service Positioning:

• Market Penetration • Consolidate and improve -Oracle tools continued to be enhanced existing services -SAP focus with exciting expansions

• Current Market Position • Incremental expansion • New services that leverage

• Service offering requires little change. existing competencies

• Emphasis is to increase market coverage • Cloud Computing • Bill reconciliation

Background | Summary | Review | Positioning | Opportunities | Outlook

Slide 20

Global Data Centre Optimisation - Opportunity

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Projected Datacentre Server Demand Growth Projected Datacentre Storage Growth
(Production) (Production)
$ £ €
25,000 160.00 CPT
20,000 140.00
Data Centre growth is  15,00010,000  120.00 100 80.0060.00. 00 Optimisation Significant cost sav ngs or c i f li en s t
driven by 3 5,000 40.0020.00 = +
main services 0 Current Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 0.00 Current Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
10% Annual Growth - Virtualised10% Annual Growth No Virtualisation 40% Annual Growth60% Annual Growth
Green IT Savings
Mainframes Distributed Servers Storage • Power
•
Floor space
acity es
RelativeCap Petabyt
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Opportunity

• Optimisation is key to controlling costs

• Data Centres are constantly evolving and growing(four fold increase since 2001)

• • CPT has IP and staff to undertake role on a global basis

• Potential

• Approx worldwide MIPS is 14million * $2000 per MIPS = $28B annually spend

  • Currently engaged with 3% of global usage

  • Our Pipeline is focused on an additional 4% of global usage

• Scalability

• CPT grow th s no i t m li it e d y num b b er o f consu lt an t s

Slide 21

Background | Summary | Review | Positioning | Opportunities | Outlook

Key Opportunities in 2011 - Australia

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• Increased government opportunities with the appointment to supplier panels

• Continued expansion of footprint in Financial Services sector

• ’

• • Esta bl is h ment o f CPT s C ou l d Computing service o ff ering

• Greater presence in NSW market

• The commencement of the National Broadband Network

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Slide 22

Background | Summary | Review | Positioning | Opportunities | Outlook

Key Opportunities in 2011 - International

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• Commencement of five new optimisation engagements in Europe in FY11

• New European engagements in Banking, Car Manufacturers and Insurance

• Continued in our North American market new clients as well as growth covering

• additional services at existing clients

• Canadian clients continue to demonstrate promise on the back of five 2010 initial Proof Of Concept engagements

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Slide 23

Background | Summary | Review | Positioning | Opportunities | Outlook

Board Changes

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• Mr. Ian MacDonald will retire from the Board on December 31, 2010

• Non Executive Director since A ril 2006 p

• Chair of Remuneration and Nomination Committee

• Mr. Alan Baxter will be appointed to the Board effective from January 1, 2011 as Non Executive Director

• Prior senior executive experience in the IT industry (IBM , Unisys , DMR & Fujitsu) locally and internationally

• Experienced across many Non Executive Director roles in the IT industry

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Slide 24

Outlook

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• The Australian market will remain difficult as new client wins are offset a by

• reduction in revenue from CPT’s largest client

• Global spending remains tight , although clients are now making decisions on well considered investments and cost reduction initiatives

• CPT’ s s t rong p pe i li ne w ill e everage b l d o commence a num t b er o f ong erm l t International engagements

• New offices in France and Canada will support growing market presence

• Sourcing high quality resources to meet growing demand will remain a challenge but CPT has the advantage of utilising staff remotely

Slide 25

Background | Summary | Review | Positioning | Outlook