for personal use only - asx · 2008. 10. 21. · ]fully franked final dividend of 12.00 cents, up...
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Sydney Level 3, 65 Berry Street North Sydney NSW 2060 Australia
Canberra 2/45 Wentworth Avenue Kingston ACT 2604 Australia
Brisbane Level 1, 46 Edward Street Brisbane QLD 4000 Australia
Hyderabad Plot No 5, Road No 2, Banjara Hills Hyderabad 500-034 Andhra Pradesh India
Oakton LimitedABN 50 007 028 711
MelbourneLevel 8, 271 Collins Street
Melbourne VIC 3000Australia
T +61 3 9617 0200F +61 3 9621 1951
www.oakton.com.au
Wednesday, 22 October 2008
The Manager, Listings Australian Stock Exchange Limited Company Announcements Office
Dear Sir:
Please find attached the presentation given by the Company’s Managing Director at the Oakton Annual General Meeting held on 22nd October 2008.
Sincerely yours,
Michael Miers Company Secretary
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Oakton Limited ABN 50 007 028 711
Focused on what matters
2008 Annual General Meeting
October 22nd 2008
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Oakton Limited ABN 50 007 028 711
Focused on what matters
2008 Annual General Meeting
Managing Directors address
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Record Revenue of $201.29m (up 75.3 %)
Record EBITDA of $41.01m (up 37.7%)
Record NPAT of $27.63m (up 34.6%)
Results include full year contribution of Acumen Alliance
Oakton organic growth excluding Acumen Alliance contribution was 20%
Diluted earnings per share increased to 31.1 cents, 31.2% higher than last year
Fully franked final dividend of 12.00 cents, up 17.1% on last year
Total dividend payout for the year of 23.00 cents, 13.6% higher than last year
Ended June 2008 with 1,289 staff, 286 more than the same time last year
Operating cash flow of 24.89m up 51.0% on last year
FY2008 Headlines
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Completion of the Acumen Alliance integration and brand transition
Continued growth of Oakton’s offshore operation in India
Increase in project size and duration
Entered FY09 with a record level of committed revenue
Continued improvement in existing client service line ratios and introduction of new clients in existing and new locations
Appointment of additional senior management
Enhanced internal quality and risk management processes and upgrades to internal systems to manage business growth and scale
FY2008 Headlines (continued)
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FY2008 Client Analysis
1.65
3.26
4.12
2007
7%1.541.76Total clients
26%2.644.12Top 50 clients
9%3.244.48Top 25 clients
% Change
07/0820062008
Average services per client
Revenue Committed into next FY
0
10
20
30
40
2006 2007 2008 2009
Year Commencement
Tota
l Per
cent
age
Industry Sector Revenue Spread Client / Service Line Ratios
Possible maximum service line ratio is 10 (FY07 was 7)
Includes the impact of Acumen Alliance which has increased the number of services available for cross sell to 10
Financial Services16%
Products & Services30%
Public Sector - Federal
22%
Public Sector - State15%
Resources3%
Utilities14%
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FY2008 Market Positioning
Package Solutions
Software and Infrastructure Products
Facilities Outsourcing
Infrastructure Consulting
Business Process Outsourcing
Managed Services - Applications
Integration and Application Development
Information Management
Systems Integration and Project Management
I.T. Strategy and Architecture
Operational Business Consulting
Strategic Business Consulting
Consulting Services(30% revenue*)
Delivery Services(50% revenue*)
Operational Services(20% revenue*)
*Indicative based on FY2008 revenue and includes full contribution from Acumen Alliance
AcquisitionTargets
Glo
bal C
onsu
lting
Com
pani
es
oaktonFocus on service depth within the consulting, delivery and operational services domain
Priv
ate,
spe
cial
ist c
ompa
nies
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FY2008 People Summary
259363 457
1,003
1,289
04 05 06 07 08
Total Resources
Location Segmentation
VIC46%
NSW25%
ACT19%
QLD3%
IND7%
Total Staff Numbers
Staff growth excluded any contribution from acquisitions – organic growth only
Staff numbers grew in each location
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Oakton India
Oakton's India office in HyderabadFor
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Oakton ACT office
Acumen Alliance’s ACT office rebranded to Oakton in July 2008
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Oakton’s new Melbourne office
Oakton’s new Melbourne office which consolidates the Acumen Alliance and Oakton offices
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Oakton Outlook “focused on what matters”
ContinuedProfitable
Growth
People
Clients
Locations
Operations
Continued focus on retaining and attracting the best people
Implement the Oakton leadership program
Optimise utilisation to drive margin growth
Increased segmentation to allow deeper focus on key clients
Continued focus on cross sell of services
Continue to pursue growth industries such as infrastructure
Grow market share in each location with a priority focus in the ACT cross sell delivery services
Continued development of the offshore model
Continue to implement processes, systems and organisation models to support increased scale and efficiency
Leverage new roles and senior appointments
Services
Partner focus including new product vendors
Continued shift from resource provision to delivering solutions
Continued increase in larger and longer projects
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FY2009 Full Year outlook updateMarket update
Market volatility and the credit crisis is translating into:
Impact on client spend in some industry sectors, others remain relatively stable
General market sentiment being more conservative than at the start of the financial year
An outlook that is less predictable
Federal government spend overview:
1st Quarter FY2009 spend has been below last year.
Spend is currently expected to increase sometime in the future following a number of reviews
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FY2009 Full Year outlook updateMarket update - key themes in the Consulting and IT industry
Focus on cost saving initiatives
Investment in core system refurbishment and replacement
Customer focus and speed-to-market imperatives in most industries
Internet based investment
Compliance and regulatory requirements
Selective outsourcing
M/A activity across a number of industries
M/A activity in the product vendor and service provider market
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FY2009 Full Year outlook updatePerformance update
Increased focus on “Just in time hiring” and on maximising utilisation of existing people
Offshore staff numbers are continuing to grow
Reduction in recruitment cost and salary expectations anticipated
September staff numbers = 1,294 with a decrease in contractors of 17 and an increase in permanent staff of 22 over the June year end numbers
Focus on market share acquisition through targeting more predictable industries such as state government, utilities and infrastructure
Extensive cost review underway
First half earnings currently expected to be marginally ahead of last year
Full year earnings currently expected to be ahead of last year
Consider appropriate acquisitions in a market where there is an increased number of opportunities at lower purchase prices F
or p
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nal u
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nly