FY21 Investor Presentation Empired Ltd - Welcome to the - Further information contact - Russell Baskerville MD & CEO | This document has been ...
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Welcome to the
FY21 Investor
Presentation
Empired Ltd
Further information contact – Russell Baskerville MD & CEO | This document has been approved by the Board of Directors
A History of Growth
Plan to develop Develop East Secure several large Full integration & growth Secure largest deal in Scale out our Strategic focus
leading ANZ Digital Coast and NZ multi year contracts of acquisitions company’s history Azure focus on growth in
Services company presence to underpin organic with Western Power East Coast
+ Development of + Azure Expert
through growth
+ Secure several systems and platforms + Strong market MSP status + Largest East
acquisitions
large multi year + Main Roads $48m presence and Coast deal:
+ Portfolio sales model + Strategic win:
contracts to drive
+ Rio Tinto $50m implemented unique modern Department of Environment
organic growth
+ Rio Tinto $20m + Industry aligned & capability Skills & Protection
+ Focus on annuity Agency (Vic)
solution Innovation (SA)
revenue through + ENI $10m
led services
managed services + Horizon Power $10m
+ NZ secures biggest
deal: DIA
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22
FY21 Investor Presentation | August 2021 | Empired Limited Page 2
ANZ Digital Powerhouse
Empired International Sticky Predictable Strong Growth
Competitive Advantage
(ASX:EPD) Reach Revenue Platform
Modern Workplace Digital Transformation ~1,089 people Multi-year digital Attractive market
& Security to Digital Operations transformation thematic
Australia contracts
Digital & Data Industry based $30B+ market
software & solution New Zealand Multi-year managed
Business Extensive capability
accelerators services contracts
Applications USA
Scalable platform
Deep end-end High repeat revenue
Cloud Platforms
Microsoft Expertise from long term clients
Leveraged to Expect double digit
Unique Scalable Long term
growth segments revenue and earnings
differentiation platform value drivers
of the market growth FY22
FY21 Investor Presentation | August 2021 | Empired Limited Page 3
Delivering on Performance
Revenue of
$186.1m
FY21 Results up 12%
+ Revenue of $186.1m, up 12%
Net profit after
+ EBITDA(1) of $22.6m, up 52%
tax of $10.5m
up 72%
+ NPAT of $10.5m, up 71%
+ Operating cash flow of $25.5m, 99% EBITDA/OCF Conversion
+ Net Cash(2) $7.3m, up from Net Debt(2) $4.4m at 30 June 20
Operating cash
flow of $25.5m
99% Conversion
(1) Normalised EBITDA excludes $4.9m of JobKeeper, Scheme costs of $0.1m and credit losses
on dispute $1.8m
(2) Net Cash and Net Debt excludes AASB16 Leases
FY21 Investor Presentation | August 2021 | Empired Limited Page 4Strategic Highlights
+ Secured Western Power Systems Integrator contract
+ Secured $52m Environmental Protection Authority contract
in Victoria
+ Secured $9m Department of Innovation and Skills digital
transformation contract in South Australia
+ FY21 sales results up 21% on pcp
+ Australian East Coast Sales up 27% on pcp excluding EPA
contract win above
+ Sales Pipeline up 13% on pcp
Page 5FY21 Results
AUD m FY21 FY20
Revenue 186.1 165.5 12%
+ Strong revenue growth driven by large multi-year
Gross profit (1) 63.5 53.2 19%
contract wins underpinning sustainability
Gross Margin (1) 34% 32%
+ Gross margin expansion continues, driven by EBITDA (2) 22.6 14.8 52%
revenue growth utilisation & recoverability EBITDA (2) /Rev % 12% 9%
+ EBITDA up strongly on the back of gross margin JobKeeper 4.9 4.1 20%
growth with prudent management of expenses /
Depreciation & amortisation (9.1) (8.5)
overheads
+ Significant operating leverage with revenue EBIT (2) 13.5 6.3 114%
growth driving EBITDA margin expansion NPAT 10.5 6.1 71%
EPS c 6.57 3.84 71%
(1) Normalised for credit losses $1.8m
(2) Normalised for JobKeeper, credit losses and Scheme costs
FY21 Investor Presentation | August 2021 | Empired Limited Page 6FY21 Cash Flow
$m FY21 FY20
+ Operating cash flow to EBITDA conversion of 99% EBITDA reported 25.6 19.0
Working capital changes 0.4 4.4
+ CAPEX continues downward trend Income tax (0.6) 0.4
+ Strong free cash flow generation of $14m up Operating cash flow 25.5 23.8
materially from pcp (Prior period inflated as a result of high
working capital inflow) Capex (5.4) (6.5)
+ Balance sheet shows Net cash of $7.3m
Lease principle (4.9) (6.3)
Lease interest (0.7) (0.8)
Bank interest (0.5) (0.8)
Free Cash Flow 14.0 9.6
Operating cash flow to EBITDA % 99% 125%
FY21 Investor Presentation | August 2021 | Empired Limited Page 7Revenue Breakdown
Country Services/Operations Business Unit
16% 20%
39% 37%
FY21
61% 63% 29%
36%
17%
21%
37%
41%
FY20
59% 63% 31%
31%
Platforms Modern Workplace & Security
New Zealand Australia Operations Services
Digital, Data & AI Business Apps
FY21 Investor Presentation | August 2021 | Empired Limited Page 8FY21 Growth by Business Unit
+ Exceptional Business Applications growth with FY21 Growth / BU
an outstanding FY22 pipeline of material $70 $66.2
contract opportunities demonstrates the
$60
strength of Microsoft partnership $53.9 $53.9
$50.7
+ Digital, Data & AI transitioned out of some $50
large contracts in H2 and will return to solid 30.5%
Millions
$40
growth in FY22 on the back of Western Power $36.3 $36.4
SI contract ramp up and DIS wins $30
$29.6
$24.6
0.2%
+ Platforms up strongly on the bask of Western
$20
Power managed services contract, expect 20.5%
continued growth FY22 as Western Power $10
expands and EPA contract ramps up
$-
+ Modern Workplace forecasting improved Business Applications Digital, Data & AI Platforms Modern Workplace
growth into FY22 on the back of EPA contract FY20 FY21
FY21 Investor Presentation | August 2021 | Empired Limited Page 9FY21 Growth by Geography
+ Full year revenue growth up strongly with
$200
outstanding H2 growth of 18% on pcp $186.1
$180
+ WA led growth up 20%, fueled by large contracts $165.5
$160
with Western Power and Anglo American. Growth
expected to continue with material increase in $140
12.4%
Western Power contribution in FY22 $120 $113.4
Millions
$98.0
+ East Coast growth solid at 10% and positioned for $100
outstanding growth with EPA and DIS contract $80 $72.7
15.7% $67.5
wins plus exceptional FY21 sales results $60
+ New Zealand delivered a record year in revenue $40
7.7%
growth and margin contribution. A strong FY22 $20
pipeline will be offset by an expected run-off in
$-
DIA revenues, leading to a modest growth outlook Group AU NZ
in FY22 FY20 FY21
FY21 Investor Presentation | August 2021 | Empired Limited Page 10FY21 Sales Results
+ Record sales results in FY21 up 21% on PCP
+ East Coast sales up 27% excluding EPA which was
by far the largest contract secured at $52m TCV
+ WA sales flat compared to pcp due to Western
Power IMS in FY21 and does not include any value
for Western Power SI in FY22
+ Outstanding New Zealand sales driven by large
Business Applications and Digital Transformation
contracts
Sales are the first 12 months revenue of a sales order received in the reported period
FY21 Investor Presentation | August 2021 | Empired Limited Page 11Predictable Revenue
+ 61% of revenue derived from multi-year contracts
+ Base contracted revenue forecast to grow strongly with
$52m EPA contract win
+ Additional projects from multi-year contracts
anticipated to increase considerably as new Western
Power and EPA projects ramp up and DIS contract
commences
+ Healthy pipeline of new large multi-year contracts
currently being contested
*Multi-year contracts are Managed services, support services and any contract that spans greater than a 1 year period
FY21 Investor Presentation | August 2021 | Empired Limited Page 12Industry & Clients Revenue/Industry
Energy & Natural Resources (31%)
+ Public Sector are currently increasing spending as a result Government(27%)
of major digital initiatives Health & Education (11%)
+ Natural Resources/Utilities are predominately classified Other(8%)
as essential services providing some resilience from the Wholesale & Retail Trade (6%)
impacts of the COVID-19 pandemic. Spend up ICT (6%)
predominately as a result of Rio Tinto and Anglo American Manufacturing & transport (6%)
expansion Finance & Insurance (5%)
+ Health and Education are key growth sectors in Australia 5%
and spend is up as a result of a number of key strategic 6%
contract wins on the Australian East Coast 6%
31%
6%
8%
11%
27%
FY21 Investor Presentation | August 2021 | Empired Limited Page 13Revenue diversity
Revenue diversity – balance of clients
+ 61% of revenue derived from multi-year contracts
+ Base contracted revenue forecast to grow strongly with
$52m EPA contract win
+ Additional projects from multi-year contracts
anticipated to increase considerably as new Western
Power and EPA projects ramp up and DIS contract
commences
+ Healthy pipeline of new large multi-year contracts
currently being contested
No over-reliance on any key client
FY21 Investor Presentation | August 2021 | Empired Limited Page 14Outlook & Forecasts
+ Focus on client partnerships + Poised for solid growth FY22
+ Demand for digital solutions
accelerating + Leverage our breadth of service + Australian East Coast expected to
capability and solution IP grow ahead of market and provide
+ Tightening labour market
+ Invest in our people ensuring uplift in earnings contribution
+ Market/industry consolidation
high levels of retention and + Risks around margin erosion as labour
happening at pace
engagement market continues to tighten
+ Clients seeking long-term
+ Capitalise on unique growth + Market consolidation remains active
full-service partners
opportunity
+ Empired Directors unanimously
recommend that Empired
shareholders vote in favour of the
Scheme at the Scheme meeting*
MARKET RESPONSE OUTLOOK
*in the absence of a superior proposal and subject to the Independent Expert concluding (and continuing to conclude) that the Scheme is in
the best interests of Empired shareholders. Each Empired Director intends to vote all Empired shares in which he has a relevant interest in
favour of the resolution to approve the Scheme, subject to those same qualifications.For further information contact – Russell Baskerville MD & CEO
This document has been approved by the Board of DirectorsYou can also read
