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FINANCIAL RESULTS PRESENTATION - FY2006

ASG Group Limited. FINANCIAL RESULTS PRESENTATION - FY2006. Geoff Lewis MD and CEO Dean Langenbach Chief Financial Officer. Agenda. Corporate Overview Major Contracts Financial Performance Value Strategy Outlook. Corporate Overview. ASX code ASZ Shares on issue 113.9 million

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FINANCIAL RESULTS PRESENTATION - FY2006

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  1. ASG Group Limited FINANCIAL RESULTS PRESENTATION - FY2006 Geoff Lewis MD and CEO Dean Langenbach Chief Financial Officer

  2. Agenda • Corporate Overview • Major Contracts • Financial Performance • Value Strategy • Outlook

  3. Corporate Overview ASX code ASZ Shares on issue 113.9 million Options on issue 18.6 million Share price (8 September 06) $0.73 12 month trading range $0.48 – $0.79 Market capitalisation $80 million FY06 Dividend yield (FF) 4.6%

  4. ASG Group • National operations • Strong geographical spread • Strong Government and private sector client base • Experienced management team • Proven business model

  5. Operations Provision of IT services to federal and state government departments and major blue chip companies • 1. Selective Outsourcing – Infrastructure & Applications • 2. Systems integration • 3. Specialist technical services • 4. Internet and e-commerce security

  6. Major Contracts

  7. FY2006 – Key Highlights • EBITDA margin increase • Strong cash generation • Balance sheet continues to strengthen • Reaping benefits of infrastructure investment • Strong new business performance • Positive outlook for FY07

  8. Financial Performance Profit growth as economies of scale kick in

  9. Year on Year Comparison FY05 FY06 % Increase Revenue $ 40.8m $59.5m 45% EBITDA $ 4.3m $7.2m 66% Profit after tax $ 2.6m $5.2m 99% Operating Cash $ 2.7m $4.6m 70% EPS 2.8 cents 4.7 cents 68% Dividend FF 2.2 cents 3.2 cents 45%

  10. Cash Flow Overview Cash balance @ 1 July 2005 $3.5m Net operating cash $4.6m Share Issue proceeds $1.2m Investments ($2.7m) Debt Reduction ($1.0m) Dividend paid($2.5m) Cash balance @ 30 June 2006 $3.1m

  11. Balance Sheet Strength FY05 FY06 Cash $3.5m $3.1m Net current assets $4.6m $5.9m Gross debt $3.7m $2.6m Net interest $170k $189k EBITDA to interest cover 27x 38x Gross debt to equity 14% 7%

  12. Revenue Growth • Cumulative revenue model: - Predictable cash flows - Operating rather than capital budget - Approx 70% of revenue rolls forward - Accumulating multi-year contract book • Established high quality customer base • Strong federal and state government emphasis

  13. Cumulative Revenue Model Major slice of FY07 revenue locked in at start of year/under long-term contracts $24.4m $40.8m $59.3m Revenue $m

  14. Blue Chip Customer base Strong diversity by sector and geography Federal Government 31% Corporate Clients 40% State Government 29%

  15. National Footprint

  16. Growth Strategy • Leverage national presence and growing track record to win more major contracts • Pursue acquisitions that meet criteria: - Access to profitable client-base - Consistent with ASG strategy - EPS accretive

  17. Market Advantage • Market momentum and critical mass • Established reference sites in government and corporate sectors • Strong, proven delivery capability • Australian, vendor independent • Resistant to economic cycles

  18. Value Strategy • Ability to significantly leverage existing contract base to increase profitability • Opportunity to close major new contracts in the immediate future • Advanced discussions on substantial acquisition opportunities • Cumulative revenue model

  19. ASG Group Limited FINANCIAL RESULTS PRESENTATION - FY2006 Geoff Lewis MD and CEO Dean Langenbach Chief Financial Officer

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