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JCURVE SOLUTIONS LTD — Investor Presentation 2007
Sep 10, 2007
65158_rns_2007-09-10_d2ba6c63-62da-4ba3-88fd-7a7294dd2843.pdf
Investor Presentation
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Investor Presentation
Mike Fairclough – CEO
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September 2007
Stratatel Mission & Philosophy
To generate sustainable and profitable annuity revenue from proprietary software systems that:
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deliver a fast ROI for clients
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deliver a higher share price for investors
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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
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2 Divisions
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~ $3m of annuity revenue as at 1/7/07
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~ 45 staff
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4 Australian offices
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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 Representative | |
| 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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Highlights
Stratatel:
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acquires Vircom (Competitor) – earnings accretive
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acquires Softlog Systems Pty Ltd – earnings accretive
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achieves 70.5% revenue growth in 2007
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achieves earnings of $398k in 2007. Increase of 203% on 2006
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announces 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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Stratatel Objectives 2007–2008
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To increase revenue by 80% over 2006-7 (organic growth)
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To increase earnings by 50% over 2006-7 (organic growth)
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Dividends to shareholders
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To complete further acquisition(s) (in line with Stratatel criteria)
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To continue integration of Softlog business
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Organic Growth Strategy Softlog & FleetManager
Group Sales (Softlog & FleetManager)
NEW BUSINESS
Lead Generation “Centre of Excellence”
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Sales Trainee Program
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CRM System
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Recognition and Reward
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Prospect Database
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Underpinned and supported by focused marketing
Selected Vertical Markets
- FMCG
– Government (Local, State and Federal)
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Transport and logistics
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Legal
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Accounting
Client Services
- Up-sell new consultancy and customisation to existing clients
CHANNEL PARTNERS
- Increase sales and revenue from Softlog & FleetManager Channel Partners
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International Sales Expansion
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Softlog
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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
FleetManager
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Investigate Stage 2 UK Sales expansion alternatives
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Expect sales impact in 2008-9 year
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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:
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Legal
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Accounting
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Future vertical market opportunities:
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Corporate
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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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About FleetManager
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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 Defence, RailCorp NSW, Coates Hire, Aon, Unilever
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–
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USP: identification and cost recovery of current business usage
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administration/process efficiency
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improved corporate governance
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incorrect charging by suppliers
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ROI in 6 months
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Strategic Direction
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Change the Game
Organic Growth
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new business growth direct and channel
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client retention
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continuous growth in recurrent revenue and earnings
Good Fit Acquisitions
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strong recurrent revenue
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- earnings accretive
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benefit from integration
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increased growth through upsell and cross sell to larger client base
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decrease costs through
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- efficiencies and integration
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improve margins of business model
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increase critical mass
=
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long term, growing strong annuity revenue
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diversified income base
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captured client base for further product opportunities
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larger sales footprint
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greater earnings
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greater financial capacity to pursue international growth
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higher share price
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regular dividends
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Capital Structure
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80,340,717 shares on issue
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3.45m unlisted employee options on issue
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Share price 11c at 5 September 2007
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Market Cap $8.8
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No debt
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Operating cash flow positive and profitable
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What’s In It For Investors/Shareholders?
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Capital growth
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Share price, Earnings Sensitivity
| Earnings | X10 | X15 | X20 |
|---|---|---|---|
| $1.2m | 15c | 23c | 30c |
| $2.0m | 25c | 37c | 50c |
| $3.0m | 38c | 57c | 75c |
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Continuing dividends
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Low risk
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