Enero Group Limited · ASX:EGG
Enero — Photon Group — FY2011 Earnings Presentation
24 slides from Enero's earnings presentation, Aug 17, 2011
Slide 1: FY2011 Full Year Results Announcement
17.08.2011 ASX ANNOUNCEMENT FY2011 Full Year Results Announcement Photon Group Limited (ASX:PGA) today announced its financial results for the year ended 30 June 2011. Highlights: Normalised earnings: Based on unaudited preliminary accounts for the 12 months to 30 June 2011, Net Revenue was down 4
Slide 2: FY2011 Trading Notes and Divisional Commentary
NPAT pre Significant Items4, 5 30.0 20.9 5, 6 NPATA pre Significant Items 34.9 29.6 Notes: 1. The businesses sold in December 2010 contributed $16.1 million of Net Revenue and $3.9 million of EBITDA in 1H2011. In FY2010 these businesses contributed $34.5 million of Net Revenue and $9.3 million of EB
Slide 3: Operational Restructure and Management Improvements
acceptable prices, the working assumption continues to be to focus on operational improvements. The company will not sell assets at discounted prices. 2. Operational Restructure At the start of the year, Photon consisted of 45 individual operating units, spread across 14 countries. The majority of
Slide 4: Photon Group Limited FY2011 Full Year Results
Photon Group Limited FY2011 Full Year Results 17 August 2011
Slide 5: Topic Slide
Topic Slide Executive Summary 3 Operational Update 8 Full Year Financials 14 2
Slide 6: Executive Summary
Executive Summary Normalised earnings: Based on unaudited preliminary accounts for the 12 months to 30 June 2011, Net Revenue and EBITDA were down 4.8% and 24.9% respectively from the prior corresponding period, after removing the contribution of businesses sold during the year. Reduction of deb
Slide 7: Executive Summary: Debt Repayment
Executive Summary Debt Repayment Total unconditional cash liabilities at beginning of year was over $450 million. Reduced by 68% during year following recapitalisation, asset sales and repayments from operating cash flow. Bank debt reduced from $274 million to $118 million. Over time company wil
Slide 8: Executive Summary: Restructure of Portfolio
Executive Summary Restructure of Portfolio Quality of portfolio improved by selling, closing or Proportion of FY2011 EBITDA by merging businesses making business less fragile, business size more transparent, easier to manage and more sustainable. 5% 8% Continuing to scale up businesses to improv
Slide 9: Executive Summary: Profit & Loss Summary
Executive Summary Profit & Loss Summary YEAR ENDED 30 JUNE ($MILLIONS) 2011 2010 Net Revenue 343.6 378.6 EBITDA1,2 53.3 75.1 EBITDA Margin 15.5% 19.8% NPAT before significant items3,4 30.0 20.9 NPATA before significant items4,5 34.9 29.6 EPS before significant items6 1.95 cents 11.7 cents EPS-A befo
Slide 10: Executive Summary: Impact of Divestments during FY2011
Executive Summary Impact of Divestments during FY2011 YEAR ENDED 30 JUNE ($MILLIONS) 2011 2010 CHANGE Net Revenue 343.6 378.6 (9.2%) Net Revenue from divestments (16.1) (34.5) nm Pro Forma Net Revenue 327.5 344.1 (4.8%) EBITDA1,2 53.3 75.1 (29.0%) EBITDA from divestments (3.9) (9.3) Nm Pro Forma EBI
Slide 11: Operational Update
PhotonGroup. Operational Update
Slide 12: Management & Operational Improvements
Operational Update Management & Operational Improvements Made a number of key hires and promotions to strengthen management across the group during the year: Matthew Melhuish moved to role of Head of Australian Agencies Craig Hart appointed to run Field Marketing & Retail Agencies Steve Gatf
Slide 13: Division Revenue & EBITDA
Operational Update Division Revenue & EBITDA Net Revenue EBITDA 105.6 25.4 nternational Agencies International Agencies 96.5 18.0 23.9 113.5 Australian Agencies Australian Agencies 18.7 105.4 20.3 118.5 Field Marketing Field Marketing 20.1 118.2 5.2 6.5 Search Marketing Search Marketing 0.9 7.4 FY20
Slide 14: Division Contribution
Operational Update Division Contribution Net Revenue FY2011 Net Revenue FY2010 2% 2% 30% 31% 36% 34% International Agencies International Agencies Australian Agencies Australian Agencies Field Marketing Field Marketing Search Marketing Search Marketing 32% 33% EBITDA FY2011 EBITDA FY2010 2% 7% 31% 3
Slide 15: Full Year Performance
Operational Update Full Year Performance International Agencies net revenue is down 9% and EBITDA is down 29% on the prior period (down 2% and 22% respectively on a constant currency basis). Main cause of underperformance continues to be the performance of Naked and The Leading Edge versus the p
Slide 16: Net Revenue by Client
Operational Update Net Revenue by Client BWM Telstra contract lost in July 2011 accounted for approximately 3.5% of FY2011 Net Revenue – expected to be partially offset in FY2012 by new business wins. Net Revenue by Client FY2011 24% Top 10 Next 10 (11-20) 50% Next 30 (21-50) 11% Other 15% 13
Slide 17: Full Year Financials
PhotonGroup. Full Year Financials
Slide 18: Profit & Loss Summary
Full Year Financials Profit & Loss Summary YEAR ENDED 30 JUNE ($MILLIONS) 2011 2010 Revenue 538.3 587.3 Net Revenue 343.6 378.6 Staff Costs (234.0) (248.0) Other Expenses (56.3) (55.5) EBITDA1,2 53.3 75.1 EBITDA Margin3 15.5% 19.8% Depreciation & Amortisation (15.3) (21.1) EBIT 38.1 54.0 Net Interes
Slide 19: Profit & Loss Summary cont'd
Full Year Financials Profit & Loss Summary cont’d The divestments completed in FY2011 crystallised a non-cash loss on sale of $24 million. Photon has assessed the carrying value of the remainder of the Search Marketing businesses in light of the changing market dynamics and incremental capital r
Slide 20: Balance Sheet & Cash Flow
Full Year Financials Balance Sheet & Cash Flow 30 JUNE ($MILLIONS) 2011 2010 2011 2010 YEAR ENDED 30 JUNE ($MILLIONS) Cash 18.6 22.8 EBITDA 53.3 75.1 Working Capital 24.0 27.4 Movement in Working Capital1 (4.6) (5.8) Other Assets 6.8 6.7 Release of Restructure Provision (4.7) - Fixed Assets 12.2 18.
Slide 21: Debt Profile
Full Year Financials Debt Profile Total bank debt reduced from $274 million at 30 June 2010 to $118 million at 30 June 2011 after repayments from proceeds of capital raising, asset sales and operating cash flow during the year. Leverage covenants have been adjusted until 30 June 2012 to reflect
Slide 22: Deferred Consideration Profile
Full Year Financials Deferred Consideration Profile Deferred consideration outstanding of $104 million – present value of liability of $90 million. Tranche 1 – $28 million cash payments (profile as per below). Tranche 2 – 125 million shares to be released from escrow. Tranche 3A & 3B – EBITD
Slide 23: Division Net Revenue & EBITDA
Appendix Division Net Revenue & EBITDA YEAR ENDED 30 JUNE ($MILLIONS) 2010 DIVESTED CURRENCY 2010 ORGANIC 2011 COMPANIES MOVEMENT PRO FORMA MOVEMENT PRO FORMA CONSTANT CURRENCY International Agencies 107.5 (1.9) (7.5) 98.1 (1.6) 96.5 Australian Agencies 141.6 (28.1) - 113.5 (8.1) 105.4 Field Marketi
Slide 24: 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