Presentation to Citi Investment Conference

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Presentation to Citi Investment Conference By Chris Sutherland, Managing Director 26 October 2011

Transcript of Presentation to Citi Investment Conference

Page 1: Presentation to Citi Investment Conference

Presentation to Citi Investment Conference By Chris Sutherland, Managing Director

26 October 2011

Page 2: Presentation to Citi Investment Conference

Important notice and disclaimer

The information contained in this presentation is for information purposes only and does not

constitute an offer to issue, or arrange to issue, securities or other financial products. The

information contained in this presentation is not investment or financial product advice and is

not intended to be used as the basis for making an investment decision.

This presentation has been prepared without taking into account the investment objectives,

financial situation or particular needs of any particular person. Before making an investment

decision, you should consider, with or without the assistance of a financial adviser, whether an

investment is appropriate in light of your particular investment needs, objectives and financial

circumstances. Past performance is no guarantee of future performance.

No representation or warranty, express or implied, is made as to the fairness, accuracy,

completeness or correctness of the information, opinions and conclusions contained in this

presentation. To the maximum extent permitted by law, none of Programmed Maintenance

Services Limited, its directors, employees or agents, nor any other person accepts any liability,

including, without limitation, any liability arising out of fault or negligence, for any loss arising

from the use of the information contained in this presentation.

In particular, no representation or warranty, express or implied, is given as to the accuracy,

completeness, likelihood of achievement or reasonableness of any forecasts, projections,

prospects or returns contained in this presentation. Such forecasts, projections, prospects or

returns are by their nature subject to significant uncertainties and contingencies.

This presentation should be read in conjunction with the Announcements issued to the ASX

since the 2011 Annual Report and can be found on the Programmed website at

www.programmed.com.au.

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Welcome to the world of Programmed

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Safety is paramount.

We will act to ensure

the safety and

environmental well-

being of our

customers, the public

and ourselves.

Our Vision: To be the leading provider of staffing, maintenance and project services, without injury

SAFETY TEAMWORK

We respect everyone’s

contribution by working

together to achieve

common goals and

project outcomes. Our

sense of team extends

to building long-term

customer and

community

relationships for the

benefit of all.

ACCOUNTABILITY

We encourage

individuals and teams

to take responsibility

and ownership of the

process, and the

outcome, through

decisive leadership

and initiative.

HONESTY

& INTEGRITY

Our business

relationships are

based on fair, open,

and ethical principles.

We take pride in the

way we work with our

customers and

communities, the

integrity of our

services, and doing

what we say we are

going to do.

RECOGNITION

& ENJOYMENT

We are a people

business. We

recognise and reward

outstanding

achievement, and

provide opportunity for

our employees to

develop and

succeed. We create

an environment for

every team member

to have a positive,

enjoyable and

rewarding work

experience.

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Programmed Today

$1200 million+ revenue

100 offices around Australia and NZ

10,000+ employees

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Our visible commitment, leadership, systems & processes to prevent

injury and achieve the goal of Zero Harm

Our ability to recruit, deploy and manage a large skilled workforce to

support our customers operations…5000+ permanent & 5000+

casuals…30,000+ different people each year

Our many long-term contracts…more then 5000

Our diversity across all industry sectors including the offshore oil and

gas sector

Our wide operations network that serves and supports large and

small customers alike across Australia and NZ…100+ branches

Our Competitive Advantages

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Where we are located

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Caption

Some of our clients

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Group revenue by region

Western Australia 38%

Victoria 15% South

Australia 6%

Queensland 16%

New South Wales 18%

New Zealand 4%

Other 3%

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Group revenue by industry

Government & Infrastructure

36%

Mining 23%

Manufacturing & Industrial

16%

Retail & Commercial

10%

Transport 7%

Other 8%

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INTEGRATED WORKFORCE Staffing Services

Customers contract a complete MANAGEMENT

and / or maintenance SOLUTION

Customers contract the STAFFING service

PROPERTY & INFRASTRUCTURE

Maintenance, Building and Operational Services

PROPERTY SERVICES FACILITY MANAGEMENT KLM ELECTRICAL & COMMUNICATIONS

Customers contract the TASK capability

Our Structure

RESOURCES

Maintenance, Construction and Operational Services

TOTAL MARINE SERVICES

CONSTRUCTION & MAINTENANCE

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Property & Infrastructure

A range of building, maintenance and operation

services, including:-

Painting / building maintenance programmes and sundry works

Grounds maintenance programmes and landscaping

Corporate imaging and signage

Building refurbishment, repairs and minor capital works

Electrical & lighting installation & repair

Audio visual data and communication installation & repairs

Facility management and complete maintenance services

These services are provided to 1000’s of customers across all

industries, often under long term contracts and preventative

maintenance programmes

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New Maintenance Programmes

Property Services improvement projects being delivered well

Three new maintenance programmme’s offered this year

-giving customers greater choice

-lower capital requirements

-approx. 25% of new programmes sold YTD are non classic

Classic Programme ™

An upfront work schedule with periodic payment

Choices Programme ™

You decide when, where and how often, and pay as you go

Multiform Programme ™

A uniform solution for multiple facilities or multiple locations

Safeguard Programme ™

Ongoing preservation programme to keep your coating as new

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WA Water Corporation

Perth Region Alliance

Programmed Facility Management successful tenderer.

Estimated revenue over 10 years $785m

Work commences 1 Feb 2012

In partnership with the Water Corporation scope is for

supply of operation and maintenance services covering

water, sewerage, and storm water network across north &

south metropolitan Perth and Mandurah / Peel region.

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Bioscience Research Centre

KLM currently completing the installation of a major

electrical and communication system for a new

bioscience research centre located at La Trobe University,

Bundoora (Vic)

The building will house over 400 staff and students

Work commenced in 2010 and will be completed towards

the end of 2011

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Integrated Workforce

Recruitment and labour hire services are provided to a

range of industries including mining & construction,

industrial, manufacturing, transport and logistics.

The services are tailored to suit customer needs – from

the provision of a single staff member to complete

workforce and contract labour management.

Operates through a network of more than 40 branches

across Australia and New Zealand.

Supported by extensive health, safety and environmental

management systems, industrial relations and payroll

services.

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Integrated Workforce Case Studies

2 + 1 year contract (panel)

Greater consistency to induction / safety

National recruitment of specific skills

3 +1 year contract

Australia wide

Workforce for new distribution centres

e timesheeting / manage solution

Implement safety program

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Resources

A range of construction, maintenance and

operational services, including:-

Marine manning

Vessel management

Catering

Maintenance

Construction support

These services are provided to many oil, gas and mining

companies both offshore and onshore across Australia and

New Zealand.

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Total Marine Services

Total Marine Services is a leading provider of vessel

management, manning and logistic services

Significant pipeline of further opportunities under

development

Gorgon offshore contract commences late 2011.

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Construction & Maintenance

Restructured successfully in 2010

Focus is maintenance and construction support in the

resources sector of WA

Pipeline of opportunities now growing

Workforce now over 200 employees

Simcoa Silicon Processing Plant (SW WA)

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Key growth strategy

.....mine the customer base

One of 6 key strategies for 2011

Common Customer Relationship Management System (CRM)

-being installed across Property & Infrastructure operations initially

Align Incentives

-common group wide customer referral incentive scheme running

since April 2011

-215 opportunities registered YTD

-15 converted for contract revenue of approx $3m so far

Brand refresh

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We have the power

to build your business

• Reposition Programmed.

• Staff think & act as one business.

• Customers know our full offer

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A fresh new and consistent look in 2011

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Appendix - Financials

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Group Revenue by halves

0

200

400

600

800

1,000

1,200

1,400

1H 2H Full Year

Group Revenue ($m)

FY2010

FY2011

1,2

1from continuing operations 2 includes two month contribution from KLM in FY2010

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Group EBITA by halves

0

10

20

30

40

50

60

70

1H 2H Full Year

Group EBITA ($m)

FY2010

FY2011

1from continuing operations before restructuring costs 2 includes two month contribution from KLM in FY2010

1,2

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Property & Infrastructure

Weak first half due to weakness in retail and commercial sectors

Restructured division – Nov / Dec 10 ($7.5 million costs out)

Stronger second half performance (above 2HFY10)

Business improvements continue to be implemented

0

100

200

300

400

500

600

700

1H 2H Full Year

Property & Infrastructure Revenue ($m)

FY2010

FY2011

0

5

10

15

20

25

30

35

1H 2H Full Year

Property & Infrastructure EBITA ($m)

FY2010

FY2011

1,2

1from continuing operations before restructuring costs 2 two month contribution from KLM in FY2010

1,2

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Workforce

Year on year increase in revenue as slow economic recovery occurs

Major gains in mining and infrastructure

SME’s remain cautious

Tight control of costs and margins

0

50

100

150

200

250

300

350

400

450

1H 2H Full Year

Workforce Revenue ($m)

FY2010

FY2011

0

2

4

6

8

10

12

1H 2H Full Year

Workforce EBITA ($m)

FY2010

FY2011

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Resources

Weak first half FY11 due to impacts of major industrial dispute

Some delays in start of major works

Stronger second half FY11 performance onshore and offshore

Work for major offshore oil and gas projects commenced

0

50

100

150

200

250

300

1H 2H Full Year

Resources & Industrial Revenue ($m)

FY2010

FY2011

0

5

10

15

20

25

1H 2H Full Year

Resources & Industrial EBITA ($m)

FY2010

FY2011

1excludes restructuring costs

1

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