AGM  November  2012  

 Ron  Baxter         Chairman  Geoff  Lewis       Chief  Executive  Officer    F

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FY12  reflected  our  investment  in  ASG s  future  as  the    IT  services  industry  undergoes  a  historic  revolution.    

ASG  is  now  poised  to  become  established  in  the  rapidly  expanding  market  segment  of   new  world  IT  services.    

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ASG  Turning  Threat  into  Opportunity  

FY12  in  strategic  context  

The  IT  industry  is  undergoing  one  of  the  most  fundamental  revolutions  in  its  history  as  customers  transition  from  old  world  IT  systems  

This  transition  is  inevitable  and  unavoidable,  and  is  driven  by  our  customers need  to  be  more  efficient  and  effective  to  enhance  productivity  

new  world IT  

IT  Service  companies  that  do  not  embrace   new  world will  be  competing  in  a  price-‐based  commodity  market  within  3-‐5  years    

ASG  continues  to  position  itself  to  win  larger  strategic  contracts  

As  a  result  ASG  aims  to  deliver  long-‐opportunities,  rather  than  static  traditional  old  world IT  services  F

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FY12    Operational  Highlights  

Nearing  completion  of  our  investments  in   new  world  IT  services.  ASG  now  has    

Business  focussed  consultancies  System  design  and  optimisation  Managed  service  pedigree  Enterprise  applications  portfolio  Service  brokerage  offering  Sunset  management  of  legacy  systems  

ASG s  accumulating  Cloud  services  contract  wins  

Strong  recurring  revenues  from  existing  business  

 

Sound  underlying  performance  in  FY12  and  FY13  

ASG s  investments  now  on  track  to  deliver  business  growth  

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FY12    Financial  Summary  F

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Recent  Bidding  Success  

Client  Support  and  Migration  

Unsolicited  Approach  

Capital  Raising  and  Balance  Sheet  Strength    

Market  Outlook  

Guidance  

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Market  Update  &  Outlook  F

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 IT  -‐  an  inevitable  revolution  

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. It is a key technology for innovative and flexible business solutions. Most organisations lack the strategy and tools to build and manage such an environment. (Source: Forrester Consulting)

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Global Cloud spending will grow from $41 billion in 2011

to $241 billion by 2020 (Source: Forrester Consulting)

The  opportunity  is  immense  F

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Efficiencies  and  effectiveness  

Industry  is  undergoing  a  fundamental  revolution  as  businesses  transition  from      IT  departments  a  law  unto  themselves  The  way  businesses  procure  and  deliver  IT  is  changing:  

1980s:  mainframe  environment;    1990s:  client  server  environment  New  world IT:  Transition  of  power  from  back  office  IT  departments  to  front  office,  driven  by  increased  mobility  and  connectivity  of  digitised  data.  Systems  need  to  be  friendlier  for  customers  and  employees.  

This  transition  is  inevitable  and  unavoidable,  driven  by:  enormous  growth  in  Internet-‐enabled  connectivity,  mobility  and  digitisation    Businesses  need  to  be  more  efficient  and  effective  the  digital  world  is  creating  more  data  by  a  factor  of  10  every  5  years    

 

Technology  roles  will  become  commoditised,  application  development  gets  replaced  by  standard  services,  and  creativity  changes  from  developing  to  sourcing.      IDC  

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Transformation  is  inevitable  

transformation:    Commonwealth  Bank  CIO  Michael  Harte  said   new  world  IT  has  saved  the  bank   tens  

of  millions  as  the  company  was  only  24%  dependent  on  traditional  infrastructure.  He  predicts  hundreds  of  millions  more  in  efficiencies  as  CBA  spends  three  times  less  on  IT.  

 Amazons  entry  in  2012  is  a  game  changer  for  many  Australian  companies  (61/100  top  companies  pushing  Amazon  for  the  last  3  years)  

 Many  of  ASGs  clients  are  already  planning  for  the  future,  particularly  large  government  departments  and  many  of  our  blue  chip  corporate  clients.  

 Cloud  adoption  among  Australian  companies  rose  to  58%  from  43%  last  year  (Forrester  research)  

 

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The  benefits  are  huge    

The  benefits  for  Australian  companies  that  embrace  change:  

   Enhanced  business  agility    

   Improved  service  levels    

   Reduced  cost  of  capital  

   IT  operational  efficiency    

   Improved  business  value  

   Reduced  power  and  facilities  requirements    

   Ability  to  drive  value  from  expanding  data    

 

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As  Cloud  services  mature  and  the  digital  world  expands,  the  organisational  impact  on  traditional  IT  services  is  profound:  

Some  80%  or  more  of  corporate  IT  budgets  are  still  spent  on  maintaining   old  world  infrastructure  and  systems  

Technology  roles  will  shift  from  in-‐house  to  cloud  service  providers  and   more  people  will  be  required  to  manage  relationships  with  suppliers.    IDC  

 IDC    o Technical  IT  roles  are  becoming  commoditised  o In-‐house  IT  departments  will  shrink  and  move  much  closer  to   front  office  o Focus  of  IT  roles  changing  from  technical  IT  skills  to  identifying  third-‐party  

services  suppliers  that  get  the  job  done  o Spending  on   on  premise computers,  networks,  servers  and  storage  gear  

will  drop  as  companies  focus  on   as  a  service enterprise  solutions  

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Winners  and  Losers  

Winning  companies   Losing  companies  Recognise now that their industry is changing profoundly

Understand their customers enormous opportunities and challenges

Be focused on their traditional aggregation IT services models

Help their customers manage the transition through strong and established service brokerage offerings

Fail to make the necessary adjustments and investments to secure future growth

Make the adjustments to their business models and the necessary investments in new world IT services

Take advantage of data to extract business value

Commodity-based people and technology supplier

Provide services and skills that help F

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The  ASG  Cloud  is  unique  in  the  Australian  marketplace  because  it  extends  beyond  the  simple  provision  of  commodity-‐based  technical  platforms  to  enabling  organisations  to  undertake  transformation  of  their  business  and  technology  operations.      

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Questions

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