CPT GLOBAL LIMITED — Interim / Quarterly Report 2012

Feb 28, 2012

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CPT Global Limited 2012 Half Year Report February 2012

Gerry Tuddenham – Chief Executive Officer Elliot Opolion – Chief Financial Officer

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Presentation Summary

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 CPT Global at a Glance

 Financials  First Half Review

 CPT Growth Strategy  Outlook

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CPT Global at a Glance

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• Founded in Australia in 1993

• ASX listed in 2000

• All services target IT cost optimisation

• Industry based expert consultants & scalable service centres

• Global operations - Asia Pacific, North America and Europe

• Approximately 100 “blue chip” / Fortune 500 clients worldwide

• Winner of Governor of Victoria Export Award for ICT services ‟11 & „07

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CPT Global at a Glance

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 Value Proposition

• IT cost optimisation

 Services

• Testing: Ensure systems perform to expectations and targeted benchmarks

• Capacity Planning: Cost minimisation via IT capacity optimisation

• Performance: Reduced running costs and maximisation of infrastructure lifetime

• Management of IT: Optimisations of IT costs while ensuring alignment of IT to business strategy

 Service Model

• Australia: Provision of expert IT services for large projects on the basis of a daily / solution rate

• International: Three Phase cost reduction approach

• Phase 1 – Exploration of IT environment & assessment of potential savings. Performed as T&M or Fixed Price (approx $100k – $150k revenue)

• Phase 2 – Recommendation and implementation of efficiency improvements. Fee charged based on % savings (approx $1m - $3m revenue)

• Phase 3 – Ongoing support ensuring efficiencies are maintained. Performed on T&M basis (approx $1m + revenue per annum)

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CPT Global at a Glance

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 Business Mix

 Australia

• Stable business, servicing approx 70 blue chip and government clients

• Revenue of approximately $28 m p.a. at low to medium margins

• Revenue predominantly time & materials or fixed price driven by headcount / solution

 International

• Growing business, servicing approx 30 Fortune 500 clients, mainly phase 1 with a growing phase 2 pipeline

• Revenue of $16m p.a. at medium to high margins

• Revenue predominantly success fee based, driven by client savings and then annuity

• The larger the client, the larger the revenue from the same level of CPT effort (US banks can be 20 times larger than Australian bank in processing power)

• Identification of 15% of mainframe computer usage savings per client in phase 1 and achievement of 19% in phase 2

• Highly scalable and can be serviced remotely from Australia

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Financial Summar y

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$ millions	FY 12	FY 11	% Movement prioryear
Revenue	$20.3	$19.6	4%
EBITDA	$1.0	$1.2	-17%
NPAT	$0.8	$0.6	33%
EPS	2.2 ¢	1.7 ¢	29%
Interim Dividend (fully franked)	1.5 ¢	1.5 ¢	0%
Total Shares	36.7m	36.7m	0%

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Financials

REVENUE

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----- Start of picture text -----

45.0
40.0
35.0
21.5
22.2
30.0 22.7
19.2 18.5
25.0
14.9
14.1
20.0
15.0
10.0 18.7 23.1 21.7 18.7 19.6 20.3
14.9 16.3
5.0
0.0
2005 2006 2007 2008 2009 2010 2011 2012
First Half Second Half
EPS & DIVIDENDS
$ million
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10.0
Current Interim Dividend
7.8
8.0 Record Date: April 30, 2012
6.0 Payment Date: May 18, 2012
6.0 1.5 5.5
5.5 5.0 100% franking for Australian
Shareholders @ 30% tax rate
4.0
3.3 3.3 2.5
2.0 2.5 2.8 2.5
1.5
0.0 0.0
2005 2006 2007 2008 2009 2010 2011 2012
0.0
-2.0
-4.0 EPS Interim Dividend Full Year Dividend
cents
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NPAT

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4.0
Note:
3.0
The 2010 NPAT
1.7
2.0 includes a goodwill
1.1 1.0 0.3 1.1 write off of $2.4m
1.0
0.4
1.2 1.1 1.3 1.3 1.0 0.6 0.8
0.0
2005 2006 2007 2008 2009 2010-0.9 2011 2012
-1.0
-2.0 -2.2
-3.0
-4.0 First Half Second Half
$ million
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BALANCE SHEET

	BALANCE	SHEET
	$ millions	FY 12	FY 11
	Current Assets Total Assets	$12.9 $20.9	$11.8 $19.8
	Current Liabilities Total Liabilities	$6.8 $7.2	$6.0 $6.4
	Net Assets	$13.8	$13.4
	Net Tangible Assets	$6.4	$6.1
	Total Shares on Issue (million)	36.7	36.7

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FY 2012 First Half Review

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 The international business grew 18% in difficult economic conditions

• CPT‟s value proposition continues to gain international acceptance

• Revenues increased from $5.5m to $6.5m in the half amid the continued strengthened Australian dollar and weak European economy

• Signed up three new Risk Reward Phase 2 engagements in December

• Performed several Risk Reward Phase 1 engagements

• Undertook CPT‟s first Asia based Risk Reward contract

 The Australian business declined 2%

• CPT‟s Sydney and Melbourne‟s growth of 26% and 2% were offset by declines in Canberra where a number of projects reached conclusion

• Established two new Tier 1 clients

• Expanded service offerings in the project services arena

• Eliminated the reliance on CPT‟s previous largest client

• Centres of excellence were enhanced to support the growing international resource requirements

• Won the Governor of Victoria Export award for ICT services in support of the overseas business

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CPT Growth Strate gy

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 International

• Cultivation of the opportunity pipeline to underpin business expansion to 50%+ total revenue

• Margin expansion through increased scalability and more success fee based engagements

• Increased annuity based engagements

 Australia

• Continue steady growth focused on growing strategic client relationships

• Grow Sydney operation through enhanced business development capability focusing on blue chip companies and previous CPT clients

• Enhance service centres to improve service delivery efficiencies

• Transition from resource based to solution based assignments to facilitate value billing

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Outlook

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 International

• Aggressive growth over next 2 – 3 years based on proven value proposition and very strong opportunity pipeline

• Increased margins through increased scalability and more success fee engagements

• Establishment of annuity revenue stream for many clients

• Opportunistic expansion in Asia

• Exploring opportunities in Brazil with alliance partners

 Australia

• Steady growth in Melbourne and Sydney

• Replacement of completed Canberra projects with new projects

 Risks

• European economy could delay project engagements

• Timing of international engagements: delays could force revenue growth back to 2013

• Delays in replacing completed Canberra projects

 Opportunities

• Increased client focus on cost reduction may bring forward Risk Reward project starts more than forecasted in the next 12 months

• Enhancement of solution centres could lead to improved margins in short term

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