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ASG Group Limited FINANCIAL RESULTS PRESENTATION - FY2006 Geoff LewisMD and CEO Dean LangenbachChief Financial Officer.

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Presentation on theme: "ASG Group Limited FINANCIAL RESULTS PRESENTATION - FY2006 Geoff LewisMD and CEO Dean LangenbachChief Financial Officer."— Presentation transcript:

1 ASG Group Limited FINANCIAL RESULTS PRESENTATION - FY2006 Geoff LewisMD and CEO Dean LangenbachChief Financial Officer

2 Agenda Corporate Overview Major Contracts Financial Performance Value Strategy Outlook

3 Corporate Overview ASX codeASZ Shares on issue113.9 million Options on issue18.6 million Share price (8 September 06)$0.73 12 month trading range$0.48 – $0.79 Market capitalisation$80 million FY06 Dividend yield (FF)4.6%

4 ASG Group National operations Strong geographical spread Strong Government and private sector client base Experienced management team Proven business model

5 Operations Provision of IT services to federal and state government departments and major blue chip companies 1. Selective Outsourcing – Infrastructure & Applications 2. Systems integration 3. Specialist technical services 4. Internet and e-commerce security

6 Major Contracts

7 FY2006 – Key Highlights Revenue 45% EBITDA 66% Net Profit 99% EPS 68% Dividend 46% EBITDA margin increase Strong cash generation Balance sheet continues to strengthen Reaping benefits of infrastructure investment Strong new business performance Positive outlook for FY07

8 Financial Performance Profit growth as economies of scale kick in

9 Year on Year Comparison FY05FY06 % Increase Revenue $ 40.8m$59.5m45% EBITDA $ 4.3m $7.2m66% Profit after tax $ 2.6m $5.2m99% Operating Cash $ 2.7m $4.6m70% EPS 2.8 cents4.7 cents 68% Dividend FF 2.2 cents3.2 cents45%

10 Cash Flow Overview Cash balance @ 1 July 2005$3.5m Net operating cash $4.6m Share Issue proceeds $1.2m Investments ($2.7m) Debt Reduction ($1.0m) Dividend paid ($2.5m) Cash balance @ 30 June 2006 $3.1m

11 Balance Sheet Strength FY05FY06 Cash $3.5m$3.1m Net current assets $4.6m$5.9m Gross debt $3.7m$2.6m Net interest $170k$189k EBITDA to interest cover27x38x Gross debt to equity14%7%

12 Revenue Growth Cumulative revenue model: - Predictable cash flows - Operating rather than capital budget - Approx 70% of revenue rolls forward - Accumulating multi-year contract book Established high quality customer base Strong federal and state government emphasis

13 Cumulative Revenue Model Major slice of FY07 revenue locked in at start of year/under long-term contracts $24.4m $40.8m $59.3m Revenue $m

14 Blue Chip Customer base Strong diversity by sector and geography Federal Government 31% State Government 29% Corporate Clients 40%

15 National Footprint Revenue $mStaff Numbers WA$26.3225 VIC$12.765 ACT$15.4111 NSW$5.151

16 Growth Strategy Leverage national presence and growing track record to win more major contracts Pursue acquisitions that meet criteria: - Access to profitable client-base - Consistent with ASG strategy - EPS accretive

17 Market Advantage Market momentum and critical mass Established reference sites in government and corporate sectors Strong, proven delivery capability Australian, vendor independent Resistant to economic cycles

18 Value Strategy Ability to significantly leverage existing contract base to increase profitability Opportunity to close major new contracts in the immediate future Advanced discussions on substantial acquisition opportunities Cumulative revenue model

19 ASG Group Limited FINANCIAL RESULTS PRESENTATION - FY2006 Geoff LewisMD and CEO Dean LangenbachChief Financial Officer


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