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Briefing – May 2005 Ross Wraight Chief Executive Officer Raising the Standard.

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Presentation on theme: "Briefing – May 2005 Ross Wraight Chief Executive Officer Raising the Standard."— Presentation transcript:

1 Briefing – May 2005 Ross Wraight Chief Executive Officer Raising the Standard

2 Our Business SAI Global is a professional services company operating in the international standards, regulatory and compliance market. We provide; –Publishing, technical solutions, and information services –Regulatory, Risk and Compliance training and awareness –Business improvement, training and consulting services –Assurance services in the area of standardization, conformity assessment and business improvement

3 –We are listed on the Australian Stock Exchange and are a top 300 company –2004 pro-forma revenues of approximately $96.6 million –2004 pro-forma EBITDA of approximately $16.2 million –523 staff with 161 offshore –Physical operations in Australia, New Zealand, Indonesia, Mexico, India, the United Kingdom and United States. Business Dimensions

4 Staff by Division Business Publishing74 Regulatory Compliance 47 Professional Services76 Assurance Services 273 IT/Financial/HR etc53

5 Business Growth SAI Global ($’000s) Pro-forma HistoricalActuals First Half 20012002200320042005 Revenue68.373.583.296.651.7 EBITDA7.010.312.216.29.5 EBIT8.612.67.5 NPAT5.68.35.2 EPS (cents) 5.68.35.2

6 Business Competitors l The first organization of our type to list on a stock exchange and have no direct equivalent l In the international technical publishing space we compete with national standards bodies, IHS, Reed Elsevier and Thompson l In the regulatory compliance space there are numerous competitors but few who offer end to end solutions as we do. l The training and consulting market is highly fragmented and we have numerous competitors l In the certification space we compete with organizations such as SGS, BSI & Bureau Veritas

7 Industry Demand Drivers Greater demand for standards related training and assurance services Increasing industry turnover Regulation Demand to manage risks and compliance Demand for supply chain confidence Demand for continuous business improvement

8 l Leading market position l Strong branding l Key intellectual property l Expanding offshore growth l Global capability l Strong cash flows and low capital expenditure requirements SAI Key Features

9 Business Model – SAI Global Business Publishing Professional Services Develop and license Intellectual Property Publish and distribute (26% of revenue) Sources of Intellectual Property Commercialisation of Intellectual Property Enhance through training & consulting services (18% of revenue) Provide assurance through conformity assessment & certification: (46% of revenue) Assurance Services Compliance Services 10% Deliver compliance, regulatory awareness solutions 10%

10 Financial Summary – Pro-Forma

11 Business Divisions Four synergistic business Business PublishingPublishes and distributes more than 120,000 standards and related publications. Compliance Services Delivers regulatory and compliance solutions to global corporations and large government agencies from scope identification to learning program development and electronic and face to face delivery and management reporting ( charts exclude Easy i) Professional Services Provides training and consulting services related to standards and business improvement methodologies. Assurance ServicesProvides conformity assessment services to management system and product standards.

12 Business Publishing Division Revenue ($M) EBITDA ($M) EBITDA Margins %

13 Business Publishing Strategy Features l Mainly recurrent revenue l Little competitive pressure l Efficient, transportable and scalable business model l Business model produces excellent financial outcomes Trends l Increasing use of electronic delivery services l Limited growth opportunity in traditional geographic and product markets l Penetration of non-traditional markets has been limited l Platform services to others

14 Strategic Intent Build a $100 million plus technical publishing, distribution and information business Key Enablers l Entrepreneurial approach to opportunity identification and closure l Aggressive targeting of new business opportunities l Maintenance of “state of the art” delivery platform l Maintenance of existing business Business Publishing Strategy

15 Easy i - Regulatory and Compliance Services l Recently acquired $28.3M purchase price l Price includes issue of 2.2M SAI Global shares to executive shareholders l Revenues over $12M 2005/6 l EBITDA multiple Approx 7x l Consolidation from May 2005 l Clients include General Electric,US Dept.of Defense, Saudi Telecom, Roche, Standard and Poors,TD bank, PepsiCo and Daimler Chrysler

16 Easy i - Regulatory and compliance product range l Corporate Governance l Risk management l ITC security l Fraud protection l Anti money laundering l Business ethics l Etc.

17 Easy i Regulatory and compliance features l European and North American client group l Operations based in the UK and US l Advanced IT management and delivery tools (OCCAM) l Courseware development l 18 languages l Increasing recurring revenues l High growth rates and margins l Scaleable l EPS accretive

18 Professional Services Division Revenue ($M) EBITDA Margins % EBITDA ($M)

19 Professional Services Features l Business development component of our value chain l Few recurring revenue streams with services seen as discretionary expenditure by customers l Business model produces lower profit outcomes than other divisions l Consulting model not proven Trends l Traditional standards based products not growing l Significant growth in business improvement products l Electronic training or blended learning model commencing to grow strongly l Significant growth opportunities developing in compliance based training

20 Strategic Intent Diversify product range and develop sources of recurring revenue that drive growth and profitability improvement Key Enablers l Continue to develop non-standards based products l Establishment of electronic training platform l Development of compliance based training business l Development of information based products l Examine options for seminars business Professional Services

21 Assurance Services Division Revenue ($M) EBITDA ($M) EBITDA Margins %

22 Assurance Services Features l Recurring revenue streams l Strong local market share l Competitive advantage from StandardsMark l Solid growth and profit model Trends l Supplier driven industry consolidation l Customer driven industry consolidation l Major product maturity l Growth in new products

23 Strategic Intent Establish SAI Global as a leading international assurance business Key Enablers l Physical presence in key geographic markets l Integrated value added customer offering l Consistent international delivery platform l People capable of delivering l International market intelligence l Brand / image development Assurance Services

24 Shareholder Structure 102M shares issued 80 million - Institutions 20 million - Retail 2 million key Easy i staff (escrowed 12 months) Market capitalisation $220M May 2005

25 Looking forward l Strong business model easily scalable l Steady organic growth l Listed structure, balance sheet and cash generation capacity provides opportunity for continued growth through acquisitions l Positioned to continue to grow revenue and profits globally l More information? Visit www.sai-global.com


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