CSG LIMITED More than you expect.
CSG Limited
ABN: 64123 989 631
252 Monta ue Road
West End QLD 4101
1800985445 cs .com.au info@csg.com.au
20 November2014
The Mana er,Listins (Melbourne) Australian Securities Exchange Limited Level4
Rialto North Tower
525 Collins Street
MELBOURNE VIC 3000
Dear Sir/Madam
AGM ADDRESSES BY THE CHAIRMAN AND MANAGING DIRECTOR MANAGING DIRECTOR- NEW EMPLOYMENT CONTRACT
AGM Addresses
ln accordance with ListinRule 3.13.3,we attaeh a copy of the addresses to be iven by the
ActinChairman and the Mana inDirector at CSG Limited's Annual Generai Meetintoday.
Managing Director- New Employment Contract
In accordance with ListinRule 3.16.4,we attach as an Annexure a copyofthe material terms of the Mana inDirector's new employment contract.
Yours faithfully,
Jillian Bannan Company Secretary CSG Limited
More than you expect.
CSG Annual Generai Meetin
20 November 2014
Speech by Philip Bullock- Acting Chairman
Before l invite CSG's Managing Director,Julie-Ann Kerin to address you,l wouId like to congratulate management on achieving the growth targets that were set for the Company
by the Board. The fact that there is solid growth on ali key financial measures is testament to the hard work and single minded determination to make this Company succeed.
At the 2012 AGM, shareholders approved a Tax-Exempt Share Pian for employees and a Lon Term lncentive Pian for executives which has resulted in the Company havinmore than 90% of staff as shareholders and mana ement achievinStae 1 of the LonTerm lncentive Pian. The aligned interests of staff and shareholders is an achievement that the Board is very pleased with.
ln addition,the Board is pleased to announce the extension of Julie-Ann lcontract as
Chief Executive Officer and Mana inDirector. She is currently employed under a service a reement until31January 2015 and today we have a reed to enter into a new continuin contract. In light of Julie-Ann's outstanding leadership today and given the achievements we have made, the Board is strongly of the view that she is the best person for the role. SecurinJulie-Ann's services on an on oin9: basis wili provide the stability and stren9:th to CSG's leadership team.
lt now ives me weat pleasure to introduce our Mana inDirector,Julie-Ann lCSG's operational performance for the 2014 financial year.
Speech by Julie-Ann Kerin - Mana inDirector
Thank you for the introduction Phil and l wouId like to welcome you ali here today.
This year CSG has delivered solid rowth on ali key financial measures. The results of 2014 confirm that our strategie five year pian for the business ison track and when fully executed wiIl continue to deliver a positive outcome for shareholders.
More than you expect.
Our focus for 2014 was to put in piace the buildin9; blocks for the future 9;rowth of the Company. ln 2014 we commenced our 9;rowth goals with revenue increasing by 1O% on the previous year to $199.2 miIlion.
Our business transformation pian was a key focus as we prepared to rollout a world class cloud based IT platform across the whole business, we kicked off our new relationship with Samsung and began our vision of providing a full suite of technology products,financed by our own leasin9; company and fully backed by the hi9;h quality service CSG is reco9;nised for.
Financial AchievementsOur 2014 financial results were pleasin9; across ali key areas. For the full year,our underlyin9; EBITDA was $29.1 miIlion which represented a 26% growth on a proforma basis on the previous corresponding period. There was continued strength in underlyingEBITDA mar9;ins which 9;rew to14.6% from 12.6% in 2013.
Underlyin9; NPATwas up 22% to $19.0 million and our CSG Finance lease receivables book exceeded expectations by growing by 40% to close at $161.5 million.
Capitai management has been a strong focus for the Board of CSG and we have returned to shareholders a total of $109 million overthe past two years in the form of share buybacks, capitai returns and dividends.
ln our Business Solutions business,we have begun the transformation of the business from
a provider of print solutions to a single source technology solutions provider. Our goal in this business is to bring back consultancy and service to the small and medium enterprise customer.Fundamental to this vision is our all-encompassin9; leasingsolution,which is now enterin9; its second year in Australia, levera9;ing off the highly successful New Zealand business model and expertise.
The launch ofthe Samsung relationship in 2014 will provide a platform for increasing revenue from existing customers as well as finding paths into new customers with new products and services in 2015. In the launch phase the average sale of non-print products was $30,000 in revenue per customer.
More than you expect.
ln New Zealand,we've also acquired the lar est HP reseller and launched our relationship with 3D Systems, a leadin lobai3D printincompany. This enables us to move into new markets,with new and different products.
We have also established a new online transactional model through our new website which is showinencoura insi ns. The conversion of web to leads has doubled and we are reaching markets where we do not currently have a physical presence including Tasmania, re ional New South Wales,re ional Queensland and re ional Victoria.
ln the Enterprise Solutions business our new,disruptive business model is the basis for continued growth in the sales pipeline. We have established a new Print as a Service model which is predicated on the concept of delivering a service nota device. The model is based on annuity service fees,rather than the traditional transactional based model. In 2014,we have won contracts with new and existincustomers includin: the renewal of our contract with the University of Melbourne fora further three years,New Zealand Police,University of Sydney,Mirvac,Bank of New Zealand and the continued rollout into Queensland Department of Education.
ln the first half of 2015,we have been appointed to the Whole of Queensland Government's StandinOffer Arran ement for the provision of print and ima inas a service. This effectively is a compulsory panel arran ement forali Queensland departments and
a encies to use when they are buyinprint and ima inservices.
lt is a good win for our new offering of Print as a Service and confirms that our approach is consistent with customer demand. lt will complement our Standing Offer Arrangement with the Queensland Department of Education to provide print services. There are only three companies on this panel and CSG is the only full service non-manufacturer. This contraet provides us with an opportunity to manae any device as a service across Queensland Government.
We have also won another contract with a leadinAustralian University for the provision of managed print services. This will be rolled out in thesecond half of2015. This is in line with our planned objective of winning one enterprise contract each haif.
The pipeline in the enterprise business has continued to row in line with expectations and we look forward to Enterprise Solutions growinin the cominyears.
More than you expect.
The CSG Finance business delivered a stron9; performance for 2014 supported by continued low level of bad debts,operational efficiencies and low interest rates. The Australian business continued to convert 95% of customers to CSG Finance and commenced financing non-print products from the Samsungrange.
Durin9; the year we completed a refinancin9; of ali facilities with two major banks.
ln 2014, we commenced our business transformation pian and be9;an rollin9; out our new mobile and cloud based IT platform which wili transform the way we mana9;e ali aspects of our business at CSG. This platform wili replace more than one hundred le9;acy systems and is built around the Salesforce.com platform.
Our dedicated staff have continued to beat the heart of everything we do. l would like to thank shareholders for their continued support ofthe Lon9; Term lncentive Pian and the Tax-Exempt Share Pian for employees. The ali9;nment of employee incentives with shareholder objectives certainly assists in bringingfocus to the organisation.
Outlook
The priorities for 2015 are in line with previously stated objectives:
• Continue to grow the product and services offerings for small and medium enterprise customers by launching our first phase of cloud applications in January of
2015.
• Launch the sale of non-print Samsung products in the New Zealand market.
• Further develop our online transactional model.
• Look for opportunities to grow the IT managed services business in New Zealand now that the NEC restraint is completed.
• Continue to build the pipeline and grow customers in the Enterprise Solutions business.
• Look for opportunities to work with other originators in the CSG Finance business.
More than you expect.
Ourfull year uidance remains
• Forecast underlying EBITDA (excluding LTIP) to be in the range of$32- $34 million.
This represents 1O% to17% growth on FY14.
• Tar etinrevenue of reater than $220 million.
• Finance receivables expected to exceed $180 million which represents growth of at least10%.
• Capitai expenditure to be in the rangeof$2.5 million to $3.5 million.
• Maintain $25 million (9 cents per share) return to shareholders.
Before l hand back toPhil,l would like to thank one of our foundingBoard Members, who is stepping down at this AGM,lan Kew. lan has been on the Board of CSG since 2007 and has made a significant contribution to the development of the Company. He's also brought his skills to be Chair of our Audit Committee. lan,on behalf of our Chairman and aIso personally, l say thank you.
l would aIso like to welcome our new Board members, whose election is beinvoted on today. ln the election of Stephen,Robin and Mark,we are gaining considerable depth and expertise for CSG and llook forward to working with you.
Thankyou
o
o
|
distributed by
|