rxp services limited

Copyright 2013 RXP Services Ltd. 1

RXP Services LimitedCompany Overview – November 2013

Ross Fielding - Chief Executive OfficerChris Shearer - Chief Financial OfficerPaul Fielding - Group Executive OperationsBen Meek - Group Executive Strategy & InnovationJason Young - Group Executive Sales and Delivery


Introduction

Listed on ASX 28 November 2011

RXP is a provider of ITC Professional Services in Australia and Hong Kong with access to offshore capabilities in Malaysia and Dubai

Business is based on a Practice based model, structured around technology verticals with centralised administration to control and govern the operations

Offices in Melbourne, Sydney, Canberra, Brisbane and Hong Kong

Growth strategy centred on organic and acquisitive growth

Scalable business model led by Ross Fielding and a strengthening management team with extensive ICT consulting and business experience


Sydney Tel: +61 (0) 9 9252 9252

Melbourne (Head Office)Tel: +61 (0) 3 8256 4855

Canberra Tel: 1300 251 165

Brisbane

Our Business

We combine exceptionally talented people with proven methods to deliver solutions that enable our clients to increase revenue, improve customer satisfaction and engagement, and improve EBIT.

We are an ASX listed ICT consulting services company that has provided professional services to S&P / ASX 200 corporations and government bodies in Australia and Asia for over 20 years.

We are a client focussed, practice led organisation.

Our practices:

• group our capabilities in a way that optimises engagement with clients.

• integrate and work as “one rxp” when we engage end to end services

• structured to support optimal delivery while providing our staff with career progression and learning opportunities.

Strategic Advisory Services

Change & Communications

Enterprise Service

Management

Project Services

Infrastructure and Cloud Services

Business Intelligence & Information

Management

Business Process

Optimisation

IntegrationWeb & Mobile Development

Malaysia DubaiOffshore Facility Offshore Facility

Hong Kong Tel: +85 2 2529 2238


Why RXP

Customers choose us because together we unlock and optimise the business value of every client we represent. We have shared values and proven proprietary methods which empower us to achieve great outcomes.We build each delivery team

based on cultural fit, business & technical

domain knowledge, career development, location,

duration and availability. We establish a

collaborative approach that forms real partnerships and

deliver greater results, together.

Large teams can create complexity and overhead. We believe in allocating a

small team of highly skilled professionals to deliver

outstanding results. Our incremental delivery

approach also ensures that value is delivered sooner.

Often the most simple answer to the problem is the best. We consider project challenges from a holistic and multiple perspectives. Our technical depth and insight will ensure clients make the right technology and process choices.

Clever thinking is inherent in our approach. Our proprietary Transpire methods, aligned to leading and emerging industry standards, ensure that we progress down the most optimal route with the right preparation

Unashamedly clever thinkers

Methods that lead

the way to the right outcome

Specialisation always

wins

The right team, at the right time, achieving

value sooner.

Small teams, great

people, guaranteed

Our practices have been established around specialised expertise that are the most important to our clients and gets runs on the board faster.


Our People

Strengthened Executive team with the addition of Jason Young, Ramon Ali, Brad Taylor, Tim Moon and Ben Meek

Continued focus on People & Talent - single framework in place driving “shared leadership”

Staff incentive plans in place based on a “balanced scorecard” approach

Our focus on people remains: clever thinking, great people, great teams, delivering outcomes for clients

Run a balanced resourcing model between permanent and contract staff in line with overall market conditions

The right team, at the right time

Achieving the right outcomes


Our Clients

Banking & Financial Services

CommunicationsMiningRetail &

Consumer Goods

Media & Entertainment

Healthcare

Education

Energy and Utilities

Insurance & Superannuation

Government


Our Partners


Highlights – FY13

Revenue ($M) EBITDA ($M) Staff% EBITDA Margin

12.1

30.2

0.53

4.9

4.3

16.3

116

212

FY12 FY13 FY12 FY13 FY12 FY13 FY12 FY13

Revenue result at upper end of market guidance of $26M - $30M

EBITDA result with market guidance of $4.5M - $6.0M as we continue to aggressively hire staff ahead of the curve

Staff numbers have grown to 280 since 30 June 2013

Zero debt with $7.6M in cash as at 30 Sep 2013 to fund further organic and acquisitive growth

Nov 13

280


Income Statement – FY13

1st Half 2nd Half FY13 $M FY12 $M

Revenue 11,360 18,799 30,159 12,080

REPORTED EBIT 1,253 3,663 4,916 534

Net interest (16) 4 (12) (3)

PROFIT BEFORE TAX 1,237 3,667 4,904 531

Income tax (384) (1,048) (1,419) (160)

NPAT 853 2,619 3,485 371

EBIT margin (%) 11.02 19.48 16.30 4.42

Basic EPS (cents) 5.4 1.2

Strong second half result and strong growth over previous FY

Revenue exceeded top end of market guidance of between $26-30M

EBIT margin within market guidance of between $4.5-6.0M

EBIT margin increased to 16.3%, with room for further improvement


Cash Flow from Operations $’000

Cash Flow

Net cash flow from operations has doubled over the past 18 months

Growth in net operating cash flows expected to continue in FY14

Strong cash position at 30 September $7.6M

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Jun 12Qrt

Jun 13Qrt

Sep 13Qrt


Our Spread of Revenue - by Industry

Banking & Finance 27%

Utilities16%

Health 11%

Government 20%

Transport & Distribution 6%

Retail / Other 10%

Telco & Media 10%

#Note – based on July 2013 actuals


Our Spread of Revenue - by Practice

Business Intelligence & Information

Management 17%

Infrastructure & Cloud 6%

ApplicationsDevelopment 14%

Integration 21%

Business ProcessOptimisation 8%

Project Services 27%

Strategic AdvisoryServices 7%



Our Spread of Revenue - by Geography

Melbourne44%

Sydney 38%

Hong Kong 10%

Canberra 8%



Our Strategic Compass - priorities for the year ahead

Clever thinking is inherent in our approach. Our proprietary Transpire methods, aligned to leading and emerging industry standards, ensure that we progress down the most optimal route with the right preparation

Grow our People & Capabilities1.

Grow RXP Brand Awareness2.

Grow our Client Base3.

Increase Practice Penetration4.

Develop & Expand our Practices5.

Develop & Expand our Partnerships6.

Develop & Expand our Geographies7.


Acquisitions - The Criteria

We have a simple goal when we do an acquisition – zero unplanned staff loss, zero loss of clients and zero loss of partners

We have a simple set of criteriaDo the people in the acquired company fit culturally?1.

Does the acquisition have track record of delivery, is it profitable?

2.

Does the acquisition add “in demand” capabilities/services?

3.

Does the acquisition increase our client footprint?4.

Does the acquisition increase our geographical footprint?5.

Does the acquisition build on our key strategic partnerships?

6.

Does the acquisition build staff loyalty?7.

Does the acquisition help build the RXP brand?8.


Summary & Outlook

Performing strong in a sector that is portrayed as difficult

Aggressive growth strategy to continue by focusing on leveraging the current “in demand” services and Practice “x-sell” while fully leveraging our acquisitions

FY14 Revenue forecast to grow > 40% - (excludes last 3 acquisitions)

Expect FY14 EBITDA margin to continue to grow

With zero debt, $7.6M in cash as at 30 Sep and increasing positive cash-flows from operations, RXP is well positioned to take advantage of strategic acquisition opportunities that are presenting themselves

Completed MethodGroup, Nobel and Integrated value since last market update

Based on forecast cash flow from operations, the company will consider beginning our dividend policy in the first half of calendar 2014


This presentation was not prepared for and should not be relied upon to provide all necessary information for investment decisions. Although great care & diligence has been taken to ensure the accuracy of this presentation, RXP Services Limited gives no warranties in relation to the statements and information contained herein and disclaims all liability arising from persons acting on the information and statements in this presentation.

Due to the dynamics and changing risk profiles of investment markets, RXP Services Limited reserves the right to change its opinion at any time. All investors are strongly advised to consult professional financial advisors whose role it is to provide professional financial advice, taking into account an individual investor’s investment objectives, financial situations and particular needs.

Important notice

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