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1 Full Year Results Presentation Full Year Ended 30 June 2006 ASX Code: SAI Thinking Business SAI Global Limited ABN: 67 050 611 642.

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Presentation on theme: "1 Full Year Results Presentation Full Year Ended 30 June 2006 ASX Code: SAI Thinking Business SAI Global Limited ABN: 67 050 611 642."— Presentation transcript:

1 1 Full Year Results Presentation Full Year Ended 30 June 2006 ASX Code: SAI Thinking Business SAI Global Limited ABN: 67 050 611 642

2 2 Agenda 1.Results and Highlights 2.Financial Overview 3.Operational Performance 4.Outlook 5.Q and A

3 3 1. Results Highlights Ross Wraight Chief Executive Officer “Our business strategy is being executed delivering solid financial outcomes. SAI Global has grown revenue and profit strongly since listing in December 2003. These results correlate directly with our strategic intent to build a global company. We have now established SAI’s key business capability in Europe, North America and Australia and made good progress in the high growth Asian region.”

4 4 Consolidated Trends

5 5 Financial Outcomes –Underlying Business Performance Revenue 1 up 50.7% to $159.7 million, EBITDA up 56.2% to $30.1 million –AIFRS Reported Results NPAT up 20.7% to $14.0 million, EPS up 8.7% to 12.5 cents –Underlying Cash Earnings Cash earnings up 52.9% to $19.6 million, Cash earnings per share up 36.2% to 17.3 cents 1.Excludes interest income

6 6 Financial Outcomes Cost to income ratio down to 82.8% from 83.6% Operating cash flow strong at $21.8 million up 43.4% from $15.2 million Dividend per share of 10.4 cents up 13.0% from 9.2 cents last year Total dividend payments (interim and final) of $13.4 million up 35.8% Net assets up 175% from $70 million to $192.6 million Conservatively geared balance sheet Cash in the bank of $49.6 million (pre Anstat earn-out of $9.6 million)

7 7 Business Strategy Delivers Strong Publishing & Assurance performances and the new Compliance Division supported by Professional Services, drove the Company’s continued strong revenue and profit growth SAI Global’s business model now deployed in Europe, North America and Australia Business Publishing expanded and diversified with acquisitions of Anstat and ILI Compliance Services enhanced with Lawlex Further restructuring of Professional Services Assurance Services scaled up with acquisitions of EFSIS and CCS and operations commencing in Japan Capital raising solidly supported

8 8 Market / Business Trends Global industry trends remain favourable Industry rationalization continues Non-Australian revenues 31% of total in FY06, will increase in FY07 Global infrastructure rolling out to support next growth phase, ITC, global brand, divisional management and enhanced corporate leaders in ITC, HR and marketing in place Balance sheet in strong shape with significant financing capacity available

9 9 Geoff Richardson Chief Financial Officer 2. Financial Overview

10 10 Financial Summary 1

11 11 Reconciliation of NPAT to Cash Earnings

12 12 Balance Sheet

13 13 3. Operational Performance Tony Scotton Chief Operating Officer

14 14 Business Publishing 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 00/0101/0202/0303/0404/0505/06 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% EBITDA

15 15 Business Publishing Business model enhanced with acquisition of Anstat and ILI. Strong operational performances from both Standards Publishing and Anstat – solid start from ILI Focus on developing capability while maintaining operational performance –.NET technology, on line select expansion and mini-shop development in Standards Publishing –Lawlex update and news-feed development –ILI Logicom launch Focus shifting to identifying and leveraging global assets to yield revenue and cost synergies Outlook – continued solid revenue and profit growth

16 16 Compliance Services

17 17 Compliance Services First year for Compliance Services Division – Easy i plus 10 months of Lawlex compliance Strong year on year performances (revenue and profit) but results a little below expectation –Higher than expected customised solutions resulted in increase in deferred revenue Quality revenue and profit contribution – EBITDA margin 20.6% Operational focus on product and strategy development Need to achieve critical mass – combined strong organic growth and acquisition Outlook – strong growth expected from this division

18 18 Professional Services (1,000) (500) 0 500 1,000 1,500 2,000 00/0101/0202/0303/0404/0505/06 -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% EBITDA

19 19 Professional Services Natural disasters and automotive industry impacted USA business in first half Small decline in revenue - EBITDA affected by restructuring cost Global Divisional Head appointed and Australian business restructured further Remains an important element of our business model – supports the development of our other businesses Focus continues on developing electronic capability and establishing recurring revenue base Outlook – historical trends to continue

20 20 Assurance Services 0 2,000 4,000 6,000 8,000 10,000 12,000 00/0101/0202/0303/0404/0505/06 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% EBITDA

21 21 Assurance Services Global capability enhanced with –Acquisition of EFSIS and CCS in the UK –Commencement of operations in Japan –Signing JV agreement in China Owned offices in 12 countries, representative offices in 7 others – important gaps still remain Focus unchanged –Improving customer service (built enhanced survey tool) –Driving high growth products (health and safety, information security) –Improving operational efficiencies (higher utilisation, fewer exceptions) –Building global delivery platform Outlook – continued solid revenue and profit growth, increased focus on multinational accounts

22 22 Consolidated Trends

23 23 4. Outlook Solid revenue and profit growth expected to continue Organic revenue growth rate guidance lifted to (6-8%) Solid platform will drive further growth Further acquisitions likely Market gaps in Continental Europe, South America and Eastern Europe elevated focus China opened

24 24 Revenue:Revenue growth to exceed 25%. Impact of any acquisitions as per announcements. Amortisation:$8.3m - $8.7m (including Publishing License Agreement), depending on exchange rate movement. Discount on earn-out:$850K Tax Rate:30%. Reported NPAT growthIn excess of 30%, but with a second half bias. Earnings per shareContinued growth AIFRS Guidance FY07

25 25 5.Q&A


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