IGNITE LIMITED — Investor Presentation 2007

Aug 27, 2007

Investor Presentation Full Year Ending 30 June 2007

Robert Collins Diana Eilert – Managing Director Candle Australia Limited

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August 28, 2007
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FY07 in brief

“The 2007 financial year was another outstanding year for the group, with record revenues, profits, earnings per share and dividends. Our focus on consolidation and back office improvements through the year has established a solid platform for growth well into the future. The outlook for the company remains very positive.” Robert Collins – outgoing Managing Director

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FY07 highlights

• Strong organic growth

• EBIT up 18% to $19.9 million

• Revenue up 10% to $298 million

• Net profit after tax up 16% to $13.6 million

• Earnings per share a record 26c

• Record ordinary dividend of 19c per share

• Cash flow almost doubled to $14.4 million

• Zero net debt

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FY07 achievements

• Initiated “project refresh”; back office consolidation and management reporting improvements, yielding great results

• Integrated three brands under new Alliance brand

• Continued focus on employer of choice initiatives

• Acquired E. L Consult in HK, China, Malaysia and Singapore

• Grew revenues, operating margin, staff numbers and operating efficiency to record levels

• Maintained ‘conversion ratio’ (EBITDA as percentage of gross profit or net disposable revenue) above industry average at 31%

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Revenue rowth g $350,000,000

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$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
$-
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2002 2003 2004 2005 2006 2007
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Stron EBITDA rowth g g $25,000,000

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$21,585,715
$20,000,000
$18,677,847
$15,000,000
$12,545,415
$10,000,000
$8,635,252
$7,472,134
$7,121,246
$5,000,000
$-
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2002 2003 2004 2005 2006 2007
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Margin return

	2004	2005	2006	2007
Operating Margin (EBIT as percentage of revenue)	3.9%	4.8%	6.3%	6.7%
Gross Margin or Net Disposable Revenue (NDR) Million $	32.1	41.9	60.7	69.6
EBITDA Million $	8.6	12.5	**18.7 ***	21.6
EBITDA margin on Gross Margin or NDR%	26.9%	29.9%	30.8%	31.0%
Income Per Share (excluding interest, tax, depreciation) cents	22.5	29.2	38.6	41.4

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* Includes an adjustment $0.1m to 2006 accounts to achieve common method for employee share option valuation
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Strong after tax profit growth

$16,000,000

35% compound annual growth rate in NPAT over last 5 years $13,551,361 $14,000,000 $11,707,226 $12,000,000 $10,000,000 $7,593,000 $8,000,000 $6,000,000 $4,552,050 $3,531,711 $4,000,000 $3,024,769 $2,000,000 $-

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Stron EPS rowth
g g
30
26
26% compound annual growth rate in EPS over last 5 years
24.2
25
20
17.7
15
11.8
9.5
10 8.3
5
0
Cents per share
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Full franked dividends y

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20
18 2
16
14 10
2 9
12
Special
10 Final
Interim
6
8
2.5
5
6
3.5
9
4 8
3
5.5
2 4
3
2
0
Cents per share
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Return on Equity 18.0% 16.5% 16.2% 16.0% 14.0% 13.1% 12.0% 9.8% 10.0% 8.3% 8.0% ~~7.6%~~ 6.0% 4.0% 2.0% 0.0%

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2002 2003 2004 2005 2006 2007
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Business model

SEVERAL HIGH VALUE ECONOMIES DIVERSIFY INTO ALIGNED AREAS PROVEN CORE BUSINESS MODEL SOLID FINANCIAL FOUNDATION

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AND SUSTAINABLE
SHAREHOLDER RETURN
SUPERIOR PERFORMANCE
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Strategy for ongoing success

• Preserve core recruitment model

• Add to existing lines and new lines by organic expansion and acquisition

• Diversify across economic zones

• Ensure income derived from multiple economic areas and expand into new geographic locations

• Diversify into “near-by” areas of expertise

• Leverage current assets (locations, clients etc.)

• Acquire and retain new talent

• Strict governance and financial discipline

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Post balance date events

• New Managing Director

• Diana Eilert – experienced manager working with very experienced team

• Acquired JAV IT Group, IT services business

• Low risk, high margins

• Peers trade on > 16x multiples

• Leverages existing assets and clients

• Acquired Reality Check

• Pre-employment screening

• Huge market potential

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New and existing clients
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Current Initiatives

• Leverage knowledge of IT markets

• Diversification into IT services via JAV IT Group

• Focus on major corporations and integrators

• Leverages Candle’s assets including client base

• Overseas expansion

• Further growth in Asia Pacific region

• Expansion of operations

• Expansion of brands

• Service the ‘in house’ recruitment market

• New revenue streams based on term contracts

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Pre-employment screening
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CND: compelling investment

• Sound macro economic conditions

• Proven business model with outstanding returns

• Experienced management who know the industry

• Diversified incomes across many geographies

• Low risk ‘blue chip’ client base

• No net debt & strong balance sheet

• Proven ability to execute with 24 year history

• Positive operating cash flow

• Organic growth underpins company success

• Proven acquisition model which delivers value

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70-80% earnings as franked dividends
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Outlook

• Expect macro conditions for employment services to remain in demand across all economic zones

• Expect demand for ICT, accounting, banking, finance and

• executive talent to remain strong

• Expect to diversify recruitment ‘lines of business’

• Improved efficiencies as a result of “project refresh”

• Launch new and innovative services in the RPO market

• Organic expansion of lines of business; more staff and offices

• Continued focus on quality acquisitions within the region

• Active diversification around the core services model

• Profit and earnings per share growth to continue

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Appendix: Valuation table

Shares on Issue	53.4 million
Share Price(24/8/07)	$3.48
Market Capitalisation	$186 million
Net Debt/Cash (-)	$0.1 millionsurplus
Enterprise Value	$186 million
EBITDA	$21.6 million
EBITDA/EV multiple	8.6 times
EPS	26 cents
Price Earnings Ratio (historical earnings)	13.4 times
Dividend per share (fully franked)	19 cents

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Yield (tax paid at 30c in $) 5.5%
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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 does not or take into account the investment objectives, financial situation needs of a particular investor. These should be considered when deciding if a particular investment is appropriate.

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