Enero Group Limited · ASX:EGG
Enero — Photon Group — H1 2011 Earnings Presentation
21 slides from Enero's earnings presentation, Feb 16, 2011
Slide 1: Results for six months ended 31 December 2010
16.2.2011 ASX ANNOUNCEMENT Results for six months ended 31 December 2010 Photon Group Limited (ASX:PGA) today announced its results for the six months ended 31 December 2010. Summary Following the recapitalisation process in the first quarter, the operational restructure is well progressed, the po
Slide 2: Net Revenue in the Field Marketing division is up 3% on the prior corresponding
Net Revenue in the Field Marketing division is up 3% on the prior corresponding period, and EBITDA is up 6%; Net Revenue in the International Agency division is down 14% on the same period last year and EBITDA is down 41%. The main contributor of this variance continues to be the lower results o
Slide 3: Photon Group Limited FY2011 Half Year Results
Photon Group Limited Fy2011 Half Year Results 16 February 2011
Slide 4: Topic Slide: Executive Summary
Topic Slide Executive Summary 3 Operational Update 5 Half Year Financials 12 2
Slide 5: Executive Summary
Executive Summary Focus of the first half has been on the strategic review, operational restructure and improving operational performance Strengthened management team - recent appointment of Craig Hart as Head of Field Marketing and Retail Agencies Completed a number of operational mergers and
Slide 6: Executive Summary: Profit & Loss Summary
Executive Summary Profit & Loss Summary SIX MONTHS ENDED 31 DECEMBER ($MILLIONS) 2010 2009 CHANGE Revenue 289.8 330.7 (3.6%) Net Revenue 188.1 196.3 (4.2%) EBITDA1,2 32.9 37.3 (11.8%) EBITDA Margin3 17.5% 19.0% (1.5bp) NPAT4 before significant items5 17.2 9.7 78.1% NPATA4 before significant items5 2
Slide 7: Operational Update
PhotonGroup. Operational Update
Slide 8: Operational Restructure
Operational Update Operational Restructure Focus of the first half has been on the operational restructure and strategic review At 31 December 2010 utilised approximately half of restructure provision - restructuring costs expected to continue be incurred in 2H2011 Reduce complexity and improv
Slide 9: Division Net Revenue & EBITDA
Operational Update Division Net Revenue & EBITDA Net Revenue EBITDA 56.1 13.7 International Agencies International Agencies 48.2 5.2 8.1 1.5 73.2 16.3 Australian Agencies Australian Agencies 69.0 14.5 63.3 11.0 Field Marketing Field Marketing 65.0 1.9 11.7 0.2 3.7 2.1 Search Marketing Search Marketi
Slide 10: Division Contribution
Operational Update Division Contribution Net Revenue 1H2011 Net Revenue 1H2010 3% 2% 26% 23% 33% 35% International Agencies International Agencies Australian Agencies Australian Agencies Field Marketing Field Marketing Search Marketing Search Marketing 36% 42% EBITDA 1H2011 EBITDA 1H2010 2% 5% 23% 3
Slide 11: First Half Performance
Operational Update First Half Performance International Agencies net revenue is down 14% and EBITDA is down 41% on the prior period (down 5% and 34% respectively on a constant currency basis) Main contributor continues to be the performance of Naked and The Leading Edge versus the prior period
Slide 12: Net Revenue by Client
Operational Update Net Revenue by Client Stability in top 20 clients versus same period last year – key movements driven by changes in client spend rather than wins or losses of clients. Net Revenue by Client 1H2011 25% Top 10 48% Next 10 (11-20) Next 30 (21-50) 10% Other 17% 10
Slide 13: Employee Incentives Update
Operational Update Employee Incentives Update A review of incentive structures across the group is ongoing with new arrangements being implemented as required, including Naked Communications Although details vary across the group, typical arrangements provide for management receiving a share of
Slide 14: Half Year Financials
PhotonGroup. Half Year Financials
Slide 15: Profit & Loss Summary
Half Year Financials Profit & Loss Summary SIX MONTHS ENDED 31 DECEMBER ($MILLIONS) 2010 2009 CHANGE Net Revenue 188.1 196.3 (4.2%) Staff Costs (125.4) (129.6) (3.2%) Other Expenses (29.8) (29.4) 1.4% EBITDA1,2 32.9 37.3 (11.8%) EBITDA Margin3 17.5% 19.0% Depreciation & Amortisation (8.5) (10.3) (17
Slide 16: Profit & Loss Summary cont'd
Half Year Financials Profit & Loss Summary cont’d The divestments completed to date in FY2011 crystallised a non-cash loss on sale of $22 million (net of deferred tax benefit), of which $19 million has been recognised in the first half Photon has assessed the carrying value of the remainder of t
Slide 17: Balance Sheet & Cash Flow
Half Year Financials Balance Sheet & Cash Flow 31 DECEMBER ($MILLIONS) 2010 2010 2009 SIX MONTHS ENDED 31 DECEMBER ($MILLIONS) Cash 20.5 EBITDA 32.9 37.3 Working Capital 21.8 Movement in Working Capital1 (5.2) (1.5) Receivable on Sale of Subsidiary 75.3 Release of Restructure Provision (3.0) - Other
Slide 18: Debt Profile
Half Year Financials Debt Profile Proceeds from sale of businesses to Salmat of $75.3 million were used to repay debt in January 2011 - improved facility terms including margin became effective at that time Facilities term to 30 September 2013 31 DECEMBER 2010 31 JANUARY 2011 ($MILLIONS) FACILIT
Slide 19: Deferred Consideration Profile
Half Year Financials Deferred Consideration Profile Deferred consideration outstanding of $131 million – present value of liability of $115 million Tranche 1 – $39 million cash payments (profile as per below) Tranche 2 – 167 million shares to be released from escrow Tranche 3A & 3B – EBITDA
Slide 20: Disclaimer
Disclaimer This document has been prepared by Photon Group Limited (Photon) and comprises written materials/slides for a presentation concerning Photon. This is not a prospectus, disclosure document or offering document. This document is for information purposes only and does not constitute or form
Slide 21: Appendix: Division Net Revenue & EBITDA
Appendix Division Net Revenue & EBITDA SIX MONTHS ENDED 31 DECEMBER ($MILLIONS) 2009 CURRENCY 2009 ORGANIC 2010 MOVEMENT CONSTANT MOVEMENT CURRENCY International Agencies 56.1 (5.2) 50.9 (2.7) 48.2 Australian Agencies 73.2 - 73.2 (4.2) 69.0 Field Marketing 63.3 (1.9) 61.4 3.6 65.0 Search Marketing 3