IGNITE LIMITED — Interim / Quarterly Report 2013

Feb 19, 2013

==> picture [720 x 270] intentionally omitted <==

Presented by: Kym Quick Managing Director & CEO

• Offices in Australia, New Zealand, Singapore and China.

• House of specialist brands with focus on IT, Accounting, Banking and Finance, Corporate Services, Engineering, Records and Information Management, Sales and Marketing.

• Permanent, Contact and Temporary placements.

• 11 Cities, 34 Branches, 273 Employees

==> picture [720 x 270] intentionally omitted <==

Financial Results	Financial Results	Half Year PCP	Half Year PCP
		Dec 2012	Dec 2011	Change
	Revenue $m	$123.0m	$135.7m	9%
	Net profit after tax & before restructuring $m	$0.1m	$1.3m	92%
	Net (loss) / profit after tax & restructuring $m	($0.5m)	$1.3m	135%
	(Loss) / earnings per share (cents)	(0.53) cents	1.51 cents	135%
	Operating cash flow /(outflow)	$3.3m	$(4.1)m	Positive
	Gearing ratio	0.5%	4.0%	800%
	Dividend	nil	1.0 cent	1.0 cents

Financial Results – Half Years P&L Dec 12 $m Jun 12 $m Dec 11 $m Jun 11 $m Total Revenue $123.0 $137.8 $135.6 $127.4 Gross Margin $19.5 $22.0 $24.3 $24.5 Employee Benefits Expense $(14 0) $(15 5) $(16 8) $(16 5) . . . . Finance Costs $(0.2) $(0.2) $(0.1) $(0.1) Restructuring Costs $(0.6) - - - Other Overheads $(3.1) $(2.8) $(3.1) $(3.1) Statutory NPAT $0.1 $0.8 $1.3 $2.3** Operating cash flow $3.3 $2.1 $(4.1) $7.5 Excluding impairment, restructuring & de-recognition of tax losses

	Financial Position Financial Position Dec 12 $m Jun 12 $m Dec 11 $m Jun 11 $m Cash $0.4 $0.9 $1.3 $4.5 Trade Receivables $48 7 $60 5 $58 5 $53 6 . . . . Intangible Assets $43.0 $42.4 $53.6 $53.4 Bank Borrowings $(0.8) $(0.0) $(3.3) $(0.5) Total Equity $78.2 $78.8 $90.1 $90.3	Financial Position Financial Position Dec 12 $m Jun 12 $m Dec 11 $m Jun 11 $m Cash $0.4 $0.9 $1.3 $4.5 Trade Receivables $48 7 $60 5 $58 5 $53 6 . . . . Intangible Assets $43.0 $42.4 $53.6 $53.4 Bank Borrowings $(0.8) $(0.0) $(3.3) $(0.5) Total Equity $78.2 $78.8 $90.1 $90.3	Financial Position Financial Position Dec 12 $m Jun 12 $m Dec 11 $m Jun 11 $m Cash $0.4 $0.9 $1.3 $4.5 Trade Receivables $48 7 $60 5 $58 5 $53 6 . . . . Intangible Assets $43.0 $42.4 $53.6 $53.4 Bank Borrowings $(0.8) $(0.0) $(3.3) $(0.5) Total Equity $78.2 $78.8 $90.1 $90.3	Financial Position Financial Position Dec 12 $m Jun 12 $m Dec 11 $m Jun 11 $m Cash $0.4 $0.9 $1.3 $4.5 Trade Receivables $48 7 $60 5 $58 5 $53 6 . . . . Intangible Assets $43.0 $42.4 $53.6 $53.4 Bank Borrowings $(0.8) $(0.0) $(3.3) $(0.5) Total Equity $78.2 $78.8 $90.1 $90.3	Financial Position Financial Position Dec 12 $m Jun 12 $m Dec 11 $m Jun 11 $m Cash $0.4 $0.9 $1.3 $4.5 Trade Receivables $48 7 $60 5 $58 5 $53 6 . . . . Intangible Assets $43.0 $42.4 $53.6 $53.4 Bank Borrowings $(0.8) $(0.0) $(3.3) $(0.5) Total Equity $78.2 $78.8 $90.1 $90.3
	Financial Position	Dec 12 $m	Jun 12 $m	Dec 11 $m	Jun 11 $m
	Cash	$0.4	$0.9	$1.3	$4.5
	Trade Receivables	$48 7 .	$60 5 .	$58 5 .	$53 6 .
	Intangible Assets	$43.0	$42.4	$53.6	$53.4
	Bank Borrowings	$(0.8)	$(0.0)	$(3.3)	$(0.5)
	Total Equity	$78.2	$78.8	$90.1	$90.3

• 89m shares on issue

• 0.7m options

• Strong balance sheet with capacity for future growth and acquisitions

==> picture [720 x 270] intentionally omitted <==

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

Recruitment Business Mix
Gross Margin Gross Margin
H1 FY13 H1 FY12
----- End of picture text -----

==> picture [720 x 270] intentionally omitted <==

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

Perm Perm
28% 26%
Contract 72%
Contract 74%
----- End of picture text -----

Revenue H1 FY13

Revenue H1 FY12

==> picture [720 x 300] intentionally omitted <==

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

Recruitment
Recruitment
IT Services
IT Services
Managed
Managed
Services
Services
Other
Other
Revenue
Revenue
----- End of picture text -----

• Investment in growth markets delivering results

• Investment in improved infrastructure and systems will enable a leaner cost structure for back office

• Continuing to adjust to market conditions with reduced management overhead

• � Cash flow improved significantly and debtor control was tightened further with a focus on terms of business and incentives for on time payment;

• � Reduction in levels of debt achieved over the half putting us in a strong financial position with un-drawn financing and little gearing

• The Ignite business increased its contribution to the results again in the Dec 12 half

• � Continue to consider strategic acquisitions that meet our rigorous criteria

• Revenue and GM declined 9% PCP due to the combined impact of a reduction in demand and margin pressure

• Permanent hiring activity continued to deteriorate and this was accompanied by a

• decline in contracting demand – particularly in the IT market

• A large contributor to this was the loss of a significant number of contractors in QLD on July 1 due to Government cuts

• Several major clients also undertook a reduction in contractor levels in the second quarter of FY2013

• The WA market slowed marginally in the second quarter of FY2013, but has since shown signs of recovery

• Profitability was also impacted by a high tax rate due to non deductibility of losses in Asia – benefits will be realised as tax losses recouped on return to profitability

• Cost savings realised through consolidation of functions, productivity improvements and outsourcing of non core activities in shared services;

• Throughout November and December, a restructuring of the Brand Management team took place providing us with significant savings in the management team through consolidation of brands for management purposes;

• The cost of this restructuring and was $605k and together with ongoing attrition will deliver annualised savings of approximately $4m in the Australian division;

• � Depreciation and amortisation costs increased due to the finalisation of the CRIS migration across the business and the release of software upgrades.

• The outlook continues to be conservative with some signs that hiring sentiment is improving – however, any indication that this is going to impact hiring activity is yet to be seen

• Stemming of losses in Asia and the recovery of the business in China will provide a solid platform for improved results

• With a lower cost base and improving efficiencies, the opportunity for growth is positive into H2 2013 and FY 2014

• With continued uncertainty in the market, we are positioned for stronger performance as a result of the internal improvements, consolidation of costs and the return on investments in growth markets

Protect and build our core business in the Asia Pacific Region; Attain Operational Excellence; Develop industry leading talent; Extend our capability into related lines of business

• The rebuild in China has seen revenue grow steadily as Beijing and Shanghai build the client base, revenue streams and productivity

• The team in these regions are now well established and showing strong potential as –

• demand continues to strengthen particularly in the rapidly growing Retail and Luxury market and Financial Services

• We now have 65 staff in China across Beijing and Shanghai

• It is expected that an additional office will be established before the end of FY 2013

• The business in PRC is expected to achieve break even and move into profit in the second half of FY 2013 after several years of losses

• Operations in less sustainable/profitable regions in Asia ie. Hong Kong have been closed down minimising the impact of losses sustained in the last calendar year

==> picture [720 x 540] intentionally omitted <==

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

Strategic Focus
Protect and grow our core business in the Asia Pacific Region
Clarius Group
• Lloyd Morgan
• Candle
Beijing
Tianjin
Chengdu
Shanghai
----- End of picture text -----

• Significant headway is being made in the implementation of a new payroll system and an upgrade to the accounting system

• The project is both on time and on-budget with the first brand roll out scheduled to take place March 2013

• It is expected that the full impact of the new system will take place in 2014, but it is anticipated that we will begin to realise some efficiencies in the latter part of calendar year 2013

• Full implementation will provide greater scalability as the market improves and shorter cycles between ‘pay’ and ‘bill’ which will provide a positive cash flow impact

�

Develop industry leading talent

• We have continued to support the development of our people through ongoing internal learning and development activities

• Keeping our consultants prepared for the rapidly changing market conditions will be a fundamental key to success when the market improves

• With a leaner management team a strong focus has been placed on leadership development to ensure our managers provide the best opportunity for our consultants to be successful

• Extend our capability into related lines of business

• � A new management structure in JAV is continuing to focus on growing opportunities in the IT services space and in more diversified disciplines

• Several long standing contracts with existing clients were renewed and re-won during the last half and a good pipeline of new business opportunities with both existing and new clients are providing good prospects for future growth

• Similarly, Ignite has enhanced its service offering and will diversify outside of the contract management and payroll space into FY 2014

Branding Collateral

==> picture [720 x 270] intentionally omitted <==

The material herein is a presentation of non-specific background information about Clarius Group 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 does not take into account the investment objectives, financial situation or needs of a particular investor.