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IGNITE LIMITED — AGM Information 2007
Nov 28, 2007
65110_rns_2007-11-28_c3d5243c-9b71-4cf2-98bb-6d6785882c99.pdf
AGM Information
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Annual General Meeting 29 November 2007 “Room for Growth” Diana Eilert CEO/Managing Director Clarius Group
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Year to 30 June 2007
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Year to 30 June 2007: Financial
Revenue up 10% to $298 million
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$350,000,000
$300,000,000 $297,116,578
$270,327,616
$250,000,000 $231,890,043
$200,000,000 $177,115,551 $179,359,746
$162,055,254
$150,000,000
$100,000,000
$50,000,000
$-
2002 2003 2004 2005 2006 2007
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EBITDA up 18% to $19.9 million
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$25,000,000
$21,585,715
$20,000,000 $18,677,847
$15,000,000
$12,545,415
$10,000,000 $8,635,252
$7,121,246 $7,472,134
$5,000,000
$-
2002 2003 2004 2005 2006 2007
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Return on Equity strong
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18.0%
16.5% 16.2%
16.0%
14.0% 13.1%
12.0%
10.0% 9.8%
8.3%
8.0% 7.6%
6.0%
4.0%
2.0%
0.0%
2002 2003 2004 2005 2006 2007
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Ordinary dividend of 19c per share
Net profit after tax up 16% to $13.6 million
Earnings in cents per share 26c
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30
Click to edit Master subtitle style 26 20
25 24.2 18 2
16
20 17.7 1412 2 9 10
Special
15 10 FinalInterim
11.8 8 2.5 6
10 8.3 9.5 6 5
4 3 3.5 8 9
5.5
5 2 2 3 4
0
2002 2003 2004 2005 2006 2007
0
2002 2003 2004 2005 2006 2007
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$16,000,000
$14,000,000 $13,551,361
$11,707,226
$12,000,000
$10,000,000
$8,000,000 $7,593,000
$6,000,000
$4,552,050
$4,000,000 $3,024,769 $3,531,711
$2,000,000
$-
2002 2003 2004 2005 2006 2007
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*CAGR: compound annual growth rate
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Initial Review of Operations
Core Candle business is robust with:
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A history of good organic growth
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High margins
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Award winning client and candidate service
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Recruitment Firm of the Year 2006 and NOW 2007
- A motivated capable team of people with a positive ‘can do’ attitude
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Initial Review of Operations
Organic growth is good, with room to improve Recent poor performance of Lloyd Morgan is impacting H1 FY08 …turnaround plans being implemented
One-off impacts of $1.1m in FY08 Click to edit Master subtitle style
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Restructuring costs
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Executive management changes
… restructuring benefits to roll through in FY09
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My background and what I consider important
My background:
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Extensive senior executive experience outside recruitment sector
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Focus on our people
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Strong financial disciplines
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Project and risk management
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Track record of delivering
What we have done so far:
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Developed strategy and associated workstreams
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Leadership roles defined, team in place
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Financial modelling and disciplines being implemented
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Implemented cost reduction to save ~ 800K annually
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Renaming and repositioning parent company as Clarius
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Strategy
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The market opportunity is significant
Growth Sector Premium
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2% 10.4%
Industry Average Annual 3% 0.2%
Growth
3% 5.2%
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0.2%
2%
Volume Growth Wage Industry Volume Growth Wage Potential
• Underlying Growth Average • Underlying Growth
• New Growth • New Growth
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Source: ABS; RBA; Department of Employment and Workplace and Relations
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Clarius – Our vision
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To set the benchmark for recruitment and contracting services within Asia Pacific, for
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investors,
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our people,
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candidates and
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our clients
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The Clarius strategy sharpens our focus
Specialist recruiter and contractor for professionals. We are focused on high growth, higher margin sectors:
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Information, Communication and Technology (ICT)
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Banking and Finance
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Property and Construction
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Business Services
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Health
Click to edit Master subtitle style …competing only where we can leverage our operating models and scale to drive returns well over industry
We selectively provide IT services where there is limited capital required, and we can leverage our contractor skill sets to take on slightly more project/service risk for higher returns
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Clarius Group Brands
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Australia Asia Click to edit Master subtitle style J. Bianchini P. Barbaro G. Smith (Acting) A. Chown K. Quick
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Strategy will be delivered through 6 workstreams
We will achieve superior organic growth through:
1. Our people
Superior selection, training and a culture of performance and reward for success
2. Markets
Targeting high growth/high value markets with specialist brands
3. Margins Improving the margins via more disciplined pricing, and weighting investment to higher margin areas
4. Efficiency
Driving efficiency through centralisation and automation of back office
5. Advocacy
Delivering superior customer, candidate and contractor experiences through a culture, technology, and measurement systems that encourage innovation and initiative
AND
6. Acquisitions
We pursue acquisitions proactively , only within target sectors where value is high with even stricter criteria
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Outlook
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Business outlook FY 2008
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Provided business confidence remains, we expect the market for professionals to continue strong growth
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Profit growth when compared to previous corresponding period, before impact of Lloyd Morgan Australia and “one –offs”
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Investment in organic growth should deliver some improvements in H2 FY08, flowing through fully into FY09 Click to edit Master subtitle style
H1 FY08 slightly lower than pcp, prior to “one-offs” Improvement in H2
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In Summary
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A strong recruitment and contracting franchise
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…some small short term challenges
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Longer term we can outperform due to
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Focus on selecting and driving growth in profitable, growing segments in recruitment and contracting for professionals
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Emphasis on selecting, motivating and developing our people Click to edit Master subtitle style
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Stronger financial and measurement disciplines
More room for growth
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Disclaimer
The material herein is a presentation of non-specific background information about Candle Australia Limited’s current activities. It is information given in summary form and does not purport to be complete. Investors or potential investors should seek their own independent advice. This material is not intended to be relied upon as advice to investors or potential investors and Click to edit Master subtitle style does not take into account the investment objectives, financial situation or needs of a particular investor. These should be considered when deciding if a particular investment is appropriate.
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