Enero Group Limited · ASX:EGG
Enero — Photon Group — H1 2009 Earnings Presentation
22 slides from Enero's earnings presentation, Feb 24, 2009
Slide 1: Interim Results Presentation – Six Months Ended 31 December 2008
Interim Results Presentation Six Months Ended 31 December 2008
Slide 2: Executive summary
Executive summary • Strong revenue and earnings growth during tough times demonstrates Photon’s positioning as a diverse, non-traditional focused marketing and communications group • Net revenue increased 40% on prior period to $221.6 million • Underlying EBITDA increased 39% on the prior period to
Slide 3: Interim profit & loss summary
Interim profit & loss summary Six months ended 31 Dec, A$m 1H2009 1H2008 Change Revenue $333.2m $245.6m 36% Net Revenue $221.6m $158.6m 40% Underlying EBITDA $40.3m $28.9m 39% EBITDA Margin1 18.2% 18.2% Underlying Net Profit after minorities $9.5m $8.6m 10% Underlying Net Profit after minorities Adj
Slide 4: Reconciliation of underlying net profit to reported net profit
Reconciliation of underlying net profit to reported net profit • Review of carrying value of 28% minority holding in listed company Dark Blue Sea Limited • No impact on dividend in FY2009 Six months ended 31 Dec, A$m 1H2009 1H2008 Change Underlying Net Profit after minorities $9.5m $8.6m 10% Non-cas
Slide 5: Operational overview
Operational overview • The shift in marketing budgets has seen very strong growth in field marketing, internet marketing and public relations, which together account for 75% of EBITDA • Field marketing division EBITDA grew 23% like-for-like and internet marketing division EBITDA increased 38% like-f
Slide 6: Like for like growth continued at a double digit pace
Like for like growth continued at a double digit pace Like for like Net Revenue1 Like for like Underlying EBITDA +18% $221.6m +10% +21% +10% $40.3m $187.2m $36.5m $154.4m $33.1m 1H2007 1H2008 1H2009 1H2007 1H2008 1H2009 6 1. Throughout the presentation, like-for-like is based on results for all comp
Slide 7: Photon initiatives for the economic climate
Photon initiatives for the economic climate • Management focused on core operations – controlled costs and aggressively chased and won new business • Reviewed all companies on a marginal cost basis and made 129 positions redundant resulting in one-off costs of $1.2 million incurred during the half •
Slide 8: International
A consumer focus and innovation are common across each of the five divisions Strategic Internet Experiential and Integrated Specialised Intelligence Marketing and Field Marketing Communications Communications Communications and Digital Strategic media Technology enabled Point of sale Integrated bran
Slide 9: Half year divisional operating review – Field Marketing & Experiential
Half year divisional operating review – Field Marketing & Experiential • EBITDA growth of 23% on a like-for-like basis • Increase in new business driven by acceleration of trend to outsource sales forces and merchandising in tough times • Division also grew its market through horizontal diversificat
Slide 10: Half year divisional operating review – Strategic Intelligence
Half year divisional operating review – Strategic Intelligence • Naked performed exceptionally well as big brands turned to media neutral strategy specialists for advice on how to make their marketing spend more effective and efficient • Naked opened new offices in Sweden and Denmark increasing the
Slide 11: Half year divisional operating review – Integrated Communications & Digital
Half year divisional operating review – Integrated Communications & Digital • The Australian agency group grew strongly in the first half due to market share gains • In comparison to other Australian agency groups Photon’s agencies (Adpartners, BMF, BWM, Be.Interactive, Belong and Love) performed ex
Slide 12: Half year divisional operating review – Internet Marketing & Communications
Half year divisional operating review – Internet Marketing & Communications • Fastest growing division, focused on businesses which sell products and information using the internet • More and more businesses attracted to the internet as a sales distribution platform – direct and measurable • Increas
Slide 13: Half year divisional operating review – Specialised Communications
Half year divisional operating review – Specialised Communications • Public relations and public affairs consultancies did very well with net revenue up 35% and EBITDA up 19% on a like for like basis • Weakness in project-reliant experiential, event and corporate communications services • The focus
Slide 14: Growth across all divisions
Growth across all divisions Six months ended 31 December, A$m 1H2009 1H2008 Change Strategic Intelligence 38.2 16.5 131% Integrated Communications and Digital 48.0 38.9 31% Experiential and Field Marketing 75.0 60.8 31% Internet Marketing and Communications 21.0 13.1 60% Specialised Communications 3
Slide 15: Diversified across five specialist divisions
Diversified across five specialist divisions 1H08 Net Revenue 1H09 Net Revenue Specialised Strategic Specialised Strategic Communications Intelligence 10% Communications Intelligence 17% 19% 18% Internet Internet Integrated Marketing and Marketing and Communications Communications Integrated Communi
Slide 16: Diversified geographic presence
Diversified geographic presence - 13 countries 1H08 EBITDA 1H09 EBITDA North America 7% North America 14% UK & Europe 15% UK & Europe 19% Asia Pacific 67% Asia Pacific 78% 16 Excludes divisional, service centre and option expenses
Slide 17: Diversified industry exposure – greater than 60% non-cyclical
Diversified industry exposure – greater than 60% exposure to non-cyclical industries Professional Services 2% Pharmaceuticals 2% Energy, Oil and Mining 1% Travel, Tourism and Transport 2% Property and Construction 2% FMCG – Food 16% Government, Education, Health, Non-profit Org 3% Manufacturing, Ind
Slide 18: Balance sheet
Balance sheet • No impairment following review of goodwill attributed to controlled subsidiaries A$m 31 Dec 2008 30 June 2008 Cash 27.3 35.0 Working Capital 29.4 19.1 Investments in Associates 9.9 13.9 Other Assets 26.1 25.8 Fixed Assets @ WDV 22.6 22.4 Intangibles: Goodwill 513.4 462.6 Identifiable
Slide 19: Active capital management strategy
Active capital management strategy • Retained earnings resulting from 50% dividend payout ratio will be used to pay down debt over the next two financial years • The company is in advanced discussions with ANZ regarding the extension of $100 million due in July 2009. Based on these discussions to da
Slide 20: Photon vs Peers
Photon vs Peers CY2008 Organic Revenue Growth CY2008 Underlying EBIT Margin 16.0% +15.8% 15.6% 13.6% 12.6% 12.0% 10.9% +7.3% 6.7% +6.4% +5.8% +3.8% +3.8% +2.9% Omnicom Publicis WPP* Havas* IPG* Aegis* Photon IPG* Aegis** Havas** Omnicom WPP** Photon Publicis * Results for nine months to 30 September
Slide 21: Outlook
Outlook • Photon’s market positioning and diversity underwrite near- and medium-term revenue and earnings growth • Field marketing, internet public relations and larger advertising agencies are winning market share and operating in expanding markets e.g. outsourced sales forces and developing new st
Slide 22: Disclaimer
Disclaimer This document has been prepared by Photon Group Limited (Photon) and comprises written materials/slides for a presentation concerning Photon. This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise di