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JCURVE SOLUTIONS LTD — AGM Information 2007
Nov 7, 2007
65158_rns_2007-11-07_53240aef-ec50-4c22-9985-cca8a996218d.pdf
AGM Information
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Annual General Meeting
Mike Fairclough – CEO
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8[th] November 2007
Stratatel Mission & Philosophy
To generate sustainable and profitable annuity revenue from proprietary software systems that:
-
deliver a fast ROI for clients
-
deliver a higher share price for investors
-
deliver sustainable dividends for shareholders
and provides
- career opportunities for staff
in an atmosphere:
- that recognises the Company’s responsibilities to the community and environment
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Stratatel Today
-
2 Operating Divisions
-
~ $4m of annuity revenue as at 1/11/07
-
~ 50 staff
-
5 Australian offices
-
3 International representative offices
| Office Location | Role | |
|---|---|---|
| Sydney | Stratatel Sales; Softlog Sales; Client Services | |
| Melbourne Perth |
Stratatel Sales; Softlog Sales Group Finance; Product Development; Softlog Sales |
|
| Brisbane | Softlog Sales; Client Services; Development | |
| Adelaide | Softlog Sales Representation | |
| Singapore | Softlog Sales & Support Representation | |
| Johannesburg London |
Softlog Sales & Support Representation Stratatel Sales Representation |
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Stratatel
FleetManager [®] Group Softlog
Group Finance Group Sales
Operations Development Operations
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Financials
Consolidated Revenue by Fiscal Quarter
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$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2005/2006 2006/2007 2007/2008
(unaudited)
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Financials
Consolidated Revenue Contribution by Product & Fiscal Quarter
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100%
90%
80%
70%
60%
50%
Softlog
40%
FleetManager
30%
20%
10%
0%
Q1 Q2 Q3 Q4 Q1
2006/2007 2007/2008
(unaudited)
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Financials
Consolidated Net Profit/Loss by Fiscal Quarter
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$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
-$50,000
2005/2006 2006/2007 2007/2008
-$100,000
(unaudited)
-$150,000
-$200,000
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6
Stratatel Objectives 2007–2008
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Increase
revenue by
80% over
06/07 (organic
growth)
Increase
Complete earnings by
further 50% over
acquisition/s 06/07 (organic
Objectives growth)
2007-2008
Continue
Dividends to integration of
shareholders Softlog
business
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Strategic Direction
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Organic Good Fit Change the Growth Acquisitions Game long term, growing strong annuity revenue
-
new business growth strong recurrent revenue diversified income base direct and channel earnings accretive captured client base for benefit from integration
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captured client base for further product opportunities
-
client retention
-
increased growth through upsell and cross sell to larger client base
-
continuous growth in recurrent revenue and earnings
-
larger sales footprint
-
greater earnings
-
decrease costs through efficiencies and integration
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greater financial capacity to pursue international growth
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improve margins of business model
-
higher share price
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increase critical mass
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regular dividends
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About FleetManager
One system, One Password, For Life[TM]
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Asset and expense management software
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Mobile telephones, taxi cards and tickets, fixed line telephones, fuel cards, credit cards
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Clients include: Department of Commerce, RailCorp NSW, Aon, Asciano
-
–
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USP: identification and cost recovery of non-business usage
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administration/process efficiency
-
improved corporate governance
-
incorrect charging by suppliers
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- ROI in 6 months
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About Softlog
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Softlog Enterprise: cost recovery and expense management system
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Telephone, print, photocopy, fax, email primarily from Multi-Function Devices (MFD’s)
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Traditional vertical markets:
-
Legal
-
Accounting
-
Future vertical market opportunities:
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Corporate
-
Government
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Business model:
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up front software sale
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maintenance income
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Future business model: add SAAS model for corporate/government clients
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USP; cost recovery up to 80%
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Highlights
Stratatel:
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signs reseller agreement with Canon to distribute softlog.onboard across Australia and Asia
-
signs partnership agreement with Fuji Xerox to deliver embedded solution - softlog.onboard
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acquires Vircom (Competitor) – earnings accretive
-
acquires Softlog Systems Pty Ltd – earnings accretive
-
achieves 70% revenue growth in 2007
-
achieves earnings of $398k in 2007. Increase of 203% on 2006
-
pays maiden dividend
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launches ERA FleetManager[® ] system
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Optus re-launch Optus MobileFleet to Optus Management and Sales
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Organic Growth Strategy Softlog & FleetManager
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New Channel $
-
Business Partners
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Lead Generation Increase sales and revenue from: “Centre of Excellence”
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Sales Trainee Program FleetManager CRM System Optus Recognition & Reward ERA Prospect Database TollRing
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Recognition & Reward
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Prospect Database Supported by focused marketing
Softlog
Vertical Markets
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FMCG
-
Government
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Transport & logistics
-
Legal
-
Accounting
Client Services
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Canon Australia
-
Recovery Systems
-
Hamner Investments (Softlog Vic)
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Dynamic Cost Management (South Africa)
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ServTouch (South East Asia)
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Up-sell new consultancy & customisation to existing clients
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12
International Sales Expansion
FleetManager
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Investigate Stage 2 UK Sales expansion alternatives
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Expect sales impact in 2008-9 year
-
Softlog
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Develop and support Canon relationship
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Develop Fuji Xerox partnership across Asia Pacific
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Improve level of support and visibility to Servtouch (SE-Asia partner)
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Increased impact on sales in 2007-8
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Investigate UK opportunity
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13
Research & Development
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Exciting new
product
developments in
the pipeline
Ongoing
development
and
optimisation of
FleetManager
system
Continuing development of
cost recovery solution for
MFDs
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14
Capital Structure
-
80,340,717 shares on issue
-
3.45m unlisted employee options on issue
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Share price 12.5c at 5 November 2007
-
Market Cap $10m
-
No debt
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Operating cash flow positive and profitable
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What’s In It For Investors/Shareholders?
-
Capital growth
-
Share price, Earnings Sensitivity
| Earnings | X10 | X15 | X20 |
|---|---|---|---|
| $1.0m | 13c | 19c | 25c |
| $2.0m | 25c | 37c | 50c |
| $3.0m | 38c | 56c | 75c |
-
Continuing dividends
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Low risk
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