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RXP Services Limited

RXP Services Limited. Company Overview – November 2013. Ross Fielding - Chief Executive Officer Chris Shearer - Chief Financial Officer Paul Fielding - Group Executive Operations Ben Meek - Group Executive Strategy & Innovation J ason Young - Group Executive Sales and Delivery. Introduction.

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RXP Services Limited

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  1. RXP Services Limited Company Overview – November 2013 Ross Fielding- Chief Executive Officer Chris Shearer - Chief Financial Officer Paul Fielding - Group Executive Operations Ben Meek - Group Executive Strategy & Innovation Jason Young - Group Executive Sales and Delivery

  2. 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

  3. 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. Malaysia Dubai Offshore Facility Offshore Facility • 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. Hong Kong Tel: +85 2 2529 2238 Sydney Tel: +61 (0) 9 9252 9252 Melbourne (Head Office) Tel: +61 (0) 3 8256 4855 Canberra Tel: 1300 251 165 Brisbane

  4. 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. 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. 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. The right team, at the right time, achieving value sooner. Unashamedly clever thinkers Specialisation always wins Our practices have been established around specialised expertise that are the most important to our clients and gets runs on the board faster. 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. Methods that lead the way to the right outcome Small teams, great people, guaranteed 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

  5. 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

  6. Our Clients

  7. Our Partners

  8. Highlights – FY13 Revenue ($M) EBITDA ($M) % EBITDA Margin Staff 280 Nov 13 FY13 FY13 FY13 FY13 FY12 FY12 FY12 FY12 • 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

  9. Income Statement – FY13 • 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

  10. Cash Flow Cash Flow from Operations $’000 • 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

  11. Our Spread of Revenue - by Industry Banking & Finance 27% Government 20% Retail / Other 10% Health 11% Utilities16% Transport & Distribution 6% Telco & Media 10% #Note – based on July 2013 actuals

  12. Our Spread of Revenue - by Practice Business Process Optimisation 8% Integration 21% Business Intelligence & Information Management 17% Strategic Advisory Services 7% Applications Development 14% Infrastructure & Cloud 6% Project Services 27% #Note – based on July 2013 actuals

  13. Our Spread of Revenue - by Geography Hong Kong 10% Canberra 8% Melbourne44% Sydney 38% #Note – based on July 2013 actuals

  14. Our Strategic Compass - priorities for the year ahead 1. 2. 3. 4. 5. 6. 7. Grow our People & Capabilities Grow RXP Brand Awareness Grow our Client Base Increase Practice Penetration Develop & Expand our Practices Develop & Expand our Partnerships Develop & Expand our Geographies 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

  15. 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 criteria 1. • Do the people in the acquired company fit culturally? 2. • Does the acquisition have track record of delivery, is it profitable? 3. • Does the acquisition add “in demand” capabilities/services? 4. • Does the acquisition increase our client footprint? 5. • Does the acquisition increase our geographical footprint? 6. • Does the acquisition build on our key strategic partnerships? 7. • Does the acquisition build staff loyalty? 8. • Does the acquisition help build the RXP brand?

  16. 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

  17. Important notice 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.

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