Enero Group Limited · ASX:EGG
Enero — Photon Group — H1 2008 Earnings Presentation
24 slides from Enero's earnings presentation, Feb 26, 2008
Slide 1: Photon announces 26% increase in net profit
ASX/MEDIA RELEASE 26 February 2008 ASX / MEDIA RELEASE PHOTON ANNOUNCES 26% INCREASE IN NET PROFIT Photon Group Limited (ASX:PGA) today announced its results for the six months ended 31 December 2007. EBITDA was $28.9 million representing an increase of 51% over the prior corresponding period. Net p
Slide 2: Media release continued
public relations and research. Approximately 84% of Photon’s EBITDA was derived from diversified marketing services.” Mr Hughes added “During the six months to December we acquired a dozen companies for a total cost of $195 million. Over 80% of this investment was in non-advertising sectors and over
Slide 3: Interim Dividend
pleased that Photon’s culture and entrepreneurial approach is allowing us to attract independent market leading companies to the group” Interim Dividend Photon today declared an interim fully franked dividend of 11.5 cents per share payable on 8 April 2008. The record date for the dividend is 28 Mar
Slide 4: 2008 Interim Financial Results – February 2008
2008 Interim Financial Results – 26 February 2008
Slide 5: Disclaimer
Disclaimer The information in this presentation: is not an offer or recommendation to purchase or subscribe for shares in Photon Group Limited (Photon) or to retain or sell any shares currently held; does not take into account the potential and current individual investment objectives or the fin
Slide 6: Contents
Contents Overview 4 Results Summary 5 1H2008 Financials 6 Half Year in Review 9 Divisional Structure 10 Advertising versus Diversified 12 Growing Global Footprint 13 Client Diversification 16 Acquisition History 18 Capital Management 20 Outlook 21 Photon Group Limited : Page 3
Slide 7: Overview
Overview Net Revenue increased 87% on prior period to $158.6 million EBITDA increased 51% on prior period to $28.9 million NPAT growth of 26% on prior period to $8.6 million Adjusted1 NPAT growth of 27% on prior period to $13.0 million Cash EPS of 17 cps versus 13.9 cps in 1H2007 – up 22%
Slide 8: Results Summary
Results Summary 1H2008 1H2007 Change Net Revenue $158.6m $84.7m 87% EBITDA $28.9m $19.1m 51% Net Profit after minorities $8.6m $6.9m 26% Adjusted Net Profit after minorities1 $13.0m $10.2m 27% EPS Reported2 11.5 cents 10.4 cents 11% EPS Adjusted1,3 17.0 cents 13.9 cents 22% Interim Dividend (ff) 11.
Slide 9: 1H2008 Financials - Income Statement
1H2008 Financials - Income Statement Audited Income Statement 1H2008 1H2007 % Change Six Months Ended 31 December 2007 ($’000s) ($’000s) Total Revenue 245,612 129,132 90% Net Revenue 158,640 84,636 87% EBITDA 28,875 19,126 51% EBIT 22,763 15,114 51% Reported NPAT (after minorities) 8,643 6,865 26% A
Slide 10: 1H2008 Financials – Like-for-Like Net Revenue & EBITDA
1H2008 Financials – Like-for-Like Net Revenue & EBITDA 1H2008 1H2007 Change ($’000s) ($’000s) Net Revenue (Organic)1 112,374 100,905 11% Acquired 46,266 – na Total Net Revenue 158,640 100,905 57% EBITDA (Organic)1 22,107 20,224 9% Acquired 6,768 – na Total EBITDA 28,875 20,224 43% 1. Organic growth
Slide 11: 1H2008 Financials – Balance Sheet
1H2008 Financials – Balance Sheet 31 December 2007 ($’000s) Cash 35,908 Working Capital 13,400 Financial Assets 18,717 Other Assets 22,508 Fixed Assets @ WDV 20,032 Intangibles: Goodwill 423,633 Identifiable Intangibles @ WDV 26,782 Total Assets 560,980 Provisions 32,544 Deferred Consideration (PV):
Slide 12: Half Year in Review
Half Year in Review Strategic Intelligence, Internet Marketing & Communications and Specialised Communications performed very strongly Strengthened international presence with the acquisition of seven off-shore companies and geographic expansion by existing group companies (e.g. ABT) Acquired
Slide 13: Divisional Structure
Divisional Structure Strategic Internet Experiential and Integrated Specialised Intelligence Marketing and Field Marketing Communications Communications Communications and Digital BellamyHayden Returnity The Bailey Group Love CPR The Leading Edge iMega Brand Impact AdPartners ABT Jigsaw Dark Blue Se
Slide 14: 1H2008 Net Revenue & EBITDA by Division
1H2008 Net Revenue & EBITDA by Division 1H2008 Net Revenue 1H2008 EBITDA Specialised Strategic Specialised Strategic Communications Intelligence 10% Communications Intelligence 9% 19% 23% Integrated Integrated Communications Communications and Digital 25% and Digital 16% Internet Marketing and Commu
Slide 15: 1H2008 Net Revenue & EBITDA – Advertising v Diversified
1H2008 Net Revenue & EBITDA – Advertising v Diversified 1H2008 Net Revenue 1H2008 EBITDA Advertising 25% Advertising 16% Diversified 75% Diversified 84% Photon Group Limited : Page 12
Slide 16: Growing Global Footprint
Growing Global Footprint Network of businesses with offices in 14 countries Photon Group Limited : Page 13 Australia – New Zealand – Japan – China – Thailand – Singapore – US UK – France – Germany – Spain – Italy – Netherlands – Norway
Slide 17: Net Revenue by Geography
Net Revenue by Geography FY2007 Net Revenue 1H2008 Net Revenue USA 4% USA 3% UK & Europe 19% Asia Pacific 96% Asia Pacific 78% Photon Group Limited : Page 14
Slide 18: EBITDA by Geography
EBITDA by Geography FY2007 EBITDA 1H2008 EBITDA USA 11% USA 7% UK & Europe 15% Asia Pacific 89% Asia Pacific 78% Photon Group Limited : Page 15
Slide 19: Client Diversification
Client Diversification Photon generated revenue from 1,302 unique client relationships in 1H2008 The top 50 clients generate 48.5% of net revenue 61 client relationships have between three and seven touch-points in the group No client relationship in the group represents more than 5% of net
Slide 20: Industry split – Top Customers by Net Revenue
Industry split – Top 50 Customers by Net Revenue Photon Group Limited : Page 17
Slide 21: Acquisition History
Acquisition History FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 Photon Group Limited : Page 18
Slide 22: FY2008 Acquisitions
FY2008 Acquisitions Companies acquired in FY08 are performing in line with expectations Company Division Upfront Payment ($m) REL Experiential & Field Marketing 17.8 MessageNet Integrated Communications 6.0 ISS Marketing Integrated Communications 6.0 Markson Sparks Specialised Communications 3.0 B
Slide 23: Capital Management
Capital Management Debt facility of $346 million - $279 million drawn at 31 December 2007; today drawn to $313 million Interest coverage of 4.0 times and debt to EBITDA ratio of 3.3 times Maturity within one year: $9 million, within two years: $150 million, within three years: $120 million A
Slide 24: Outlook
Outlook Organic growth and acquisitions expected to deliver FY2008 in excess of $375 million and EBITDA in excess of $75 million Truly diversified group with limited exposure to the traditional global advertising cycle Maintain a culture to attract the best talent in the industry Provide fin