20 October 2017
Dr Miles Jakeman
Executive Deputy Chair
Macquarie Technology Conference Presentation
Specialists in managing information in complex environments
Corporate History…
A trusted brand that manages information in complex environments
Formed in 2007
Began with providing specialist advisory, training and
technology services to federal government departments
Services delivered predominantly under long-term contracts
Expanded into the private sector and into state & local
governments
Listed on the ASX in November 2014
Continued to grow organically and diversify solution &
software offerings
Have conducted several acquisitions since listing
Have added professional management into the original
founder team
Now a pure play software and technology company
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Armistice Day 2009 in Afghanistan
Running the country remotely – April 2014
Leading software & tech company…
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With genuine differentiators
With Unique IP
Proven Pedigree
Scalable SaaS
Solutions
Long-term Revenue Contracts
Best Practice EBITDA Margins
(>30%)
Strong growth (right markets,
right time)
With strong & aspirational leadership
Education
A Trusted Brand with proven pedigree…
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Across multiple high-growth markets
Private Sector
Leading Australian Telco
Government
Australian Government
Solicitor
Health
Sector
Business-critical
software
Big Data &
Knowledge
Management
Digital
Solutions
Defence &
Secure Agencies
Australian Government
Department of Defence
Owning Unique IP…
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Scalable end-to-end solution offering
Business-critical Software Big Data & Knowledge
Management
Digital Solutions
Enterprise Solutions:Laboratory Information Systems (Auslab),
Oncology Information Systems (Charm),
Blood management (eBloods), Productivity
(Kapish)
ICT as a Service:Unified Comms (Citadel-MX), Desktop
management, Application, Infrastructure,
Networks, Data Centres, CSOCs
Infrastructure as a Service:Citadel SecureCloud, Microsoft Azure ®,
Amazon Web Services ®
Tailored Solutions:Bespoke Design & Build, System Integration
Platform as a Service:Health (Evolution), Geospatial (Arcadius),
Security Incident & Event Management
(Overwatch)
Platform as a Service:ServiceNow®, Microsoft Azure ®, Amazon
Web Services ®
Software as a Service:Information Management & Media Exchange
(CiX), Assured Identity Management (AIM)
Managed Services:Service Desk, Service Management, Field
Services, Service Operations, Cybersecurity,
Support Services, Facilities Management
Tailored Advisory:Business Transformation, Enterprise Risk,
ICT Strategies
Long-term managed service contracts…
Provides stable, recurring revenue across all business lines (not a body shop)
>70% of FY revenues booked as at 1 July in each year
No major contracts due for renewal in FY18
1-2 additional managed service contracts added most years
Strong history of renewal through exceeding client requirements (5 year
extension on Queensland Health contract to 2022)
Strong pipeline of ‘net new’ opportunities
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Contract 1
Contract 2
Contract 3
Contract 4
Contract 5
Contract 6
Contract 7
Contract 8
Contract 9
Contract 10
Contract 11
Contract 12
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Key:
Original contract
First renewal
Second renewal
Third renewal
FY18 year end
25 year life remaining
Summary:
25 years?
PPP
Key outcomes for
CGL
FY17 was a record year across all key metrics
Best practice margins…
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30.1m
21.3m 15.5m
24.2 9.6
$98.8m total revenue
28%
$21.3m profit before tax
73%
24.0¢ earnings per share
42%
$11.4m net profit
attributable to
members
45%
$30.1m EBITDA
48%
$15.4m net profit
81%
12.8¢/share dividends declared
33%
Previous corresponding period: Year ended 30 June 2016
Transaction highlights
PJAS overview
Strategic rationale
Key outcomes for CGL
And continued strong growth…
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We are in the right markets at the right time
Looking for Proxies?
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We co-operate and/or compete with mostly Tier 1 Global Brands
Business-critical Software
Data & Knowledge
Management
Digital
Solutions
Business-critical software…
Delivering e-health integration in a disconnected sector
We run the largest Australian-based laboratory information
system supporting over 34 laboratories, 3500 laboratory
staff on a 24/7 basis;
Our modular solutions include amongst others:
– Order placement and management
– Positive patient identification
– Specimen and Image handling
– Point of care testing (POCT)
– Biochemistry, microbiology and haematology
– Molecular diagnostics and molecular genetics
– Immunology, oncology and anatomical pathology
Over 50,000 daily transactions (approx. 40% of all public
hospital tests nationwide);
Hold 28 years of patient histories for data analytics/BI; and,
Leveraging this case study into other health areas.
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Data & Knowledge Management…
Largest Enterprise Information Management solution in
Australian Government
Over 110,000 users (30,000 log in every day) accessing over
400 million electronic objects from across the globe;
Providing an ‘end-to-end’ solution: scoping, training, migration,
integration, security, audit & service support;
Size and complexity of this deal usually reserved for global SIs,
but in this domain we are seen as an obvious Strategic Partner;
Contract has been held since 2005 including progressing
through three further ‘market retests’; and,
This model is replicable into other Government and Corporate
clients in regulated markets.
Digital Solutions Integration…
Setting a new benchmark in health - The New Royal Adelaide Hospital (NRAH)
Sole provider of unified communications to NRAH,
responsible for design, installation and maintenance
of systems and components:
– Technical suites (operating theatres)
– Lecture theatre supported by six additional
learning spaces
– Check-in, Location and Way finding Kiosks
– Supporting networks
Installation completed in 2016;
Contract initially delivered $29m in revenues for the
design and construction phases;
Then we entered into the first 5 year term of a 30
year maintenance agreement; and,
Additional technology refreshes expected throughout
life of PPP.
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Transaction highlights
1. S overview
Strategic rationale
Strong pipeline across all segments:
– Queensland Health Contract extended to 2022
– Defence contracts stable through FY18
– Pipeline to replicate existing case studies into other clients
– Opportunities being developed in new markets leveraging
Citadel’s pedigree of managing information in complex
environments
Continued focus on building IP and SaaS solutions:
– Will require greater upfront investment, so will trade some
margin for revenue growth in early stages of new contracts
Continuing to innovate:
– Health Data Exchange
– SocialSafeGuard
Another busy year ahead…
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Supplemented by quality acquisitions…
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Will continue to review M&A opportunities in support of organic growth and scalable IP initiatives.
Deal parameters:
– Established and profitable businesses with genuine IP and recurring revenue style contracts.
– Preference for B2B or B2G (health, national security, FSI, law enforcement/fraud, education).
– Well positioned in Australia, UK/US, western Europe, or select Asian markets (e.g. Singapore).
Providing speed to market and new clients
Transaction highlights
Strategic rationale
Key outcomes for
CGL
Board of Directors…
Mr Kevin McCann, AM
Chairman & Independent Non-
Executive Director
Former Chairman of Macquarie Group and Macquarie Bank.
Chairman of the Sydney Harbour Federation Trust and the Menzies Research Centre.
Fellow of the Senate of the University of Sydney, Co-Vice Chair of the New Colombo Plan Reference
Group, as well as a member of the Male Champions of Change. Member of the Order of Australia in 2005.
Bachelor of Arts and Law (Honours) from Sydney University and Master of Law from Harvard University.
Dr Miles Jakeman
Deputy Chairman & Executive
Director
CGL co-founder and Managing Director from inception to 2016.
Highly skilled in business strategy, security risk management and staff development.
Extensive experience working overseas with multinational companies with full P&L responsibility.
PhD Asian Studies and a PhD in Business Leadership.
Lieutenant General Peter Leahy,
AC (Rtd)
Independent Non-Executive Director
Retired in 2008 as the Chief of Army.
Professor at the National Security Institute at the University of Canberra.
Chairman of the Salvation Army Red Shield Appeal Committee in the ACT, Chairman of ”Soldier On”, and
Chairman of the Australian International Military Games (Invictus).
Member of the Australian Institute of Company Directors and a NED at Codan (ASX: CDA) and Electro
Optic Systems Holdings (ASX: EOS).
Ms Deena Shiff
Independent Non-Executive Director
Extensive executive experience in the communications industry, serving as Group Managing Director at
Telstra Corporation between 2005 and 2013 where she managed $5Bn in annual revenues.
Chairmanships include BAI Communications and the Alertness CRC. She is also a NED with Appen Limited
(ASX: APX), the Sydney Writers’ Festival, and Opera Australia.
Bachelor of Science (Economics) from the London School of Economics and Political Science and a
Masters of Arts (Law) from the University of Cambridge.
Ms Anne Templeman-Jones
Independent Non-Executive Director
Over 20 years’ experience in institutional and commercial banking, wealth management and insurance.
Significant experience as a Chair and non-executive director of listed and unlisted entities.
Strong audit background and currently a NED of HT&E Limited, GUD Holdings Limited, and Cuscal Limited.
In addition, Anne is the Chair of the Financial Advice Licensee Subsidiary Companies of the Commonwealth
Bank of Australia.
Mr Mark McConnell
Non-Executive Director
Founder of New Territories Investments (NTI), a private equity fund focussed on clients in North Asia.
Extensive experience in acquisitions, capital raising and strategy.
Member of multiple private boards and previously served on several public company boards.
BSc and MBA and is a fellow of AICD. 20
Transaction highlights
Experienced management team…
Mr Darren Stanley
CEO
Strong tech background gained from working internationally and domestically in a range of Executive roles.
Prior to joining CGL, Darren worked in senior positions with the Commonwealth Bank and SMS
Management & Technology where he managed Banking, Finance and Resources Industry verticals.
Darren was also an Officer of the Australian Army Engineer Corp with postings all over the world including
Asia and the Middle East.
His skills cover business strategy, client and staff management, business development, operational
excellence and leadership.
Mr Robert (Andrew) Burns
CFO
Andrew has been CFO and Company Secretary since 2008.
Prior to joining CGL, he spent 10 years with GE in various leadership roles including Finance Manager of
GE Healthcare ANZ and Six Sigma Quality Leader for GE Healthcare Financial Services globally.
Andrew is a proven leader of change with strong competencies in financial management, accounting, and
process improvement techniques.
Chartered Accountant, graduate of the AICD, as well as a Six Sigma Master Black Belt and an alumni
member of Australian Graduate School of Management’s MBA Program.
Ms Cindy Schwartz
General Manager
Cindy is the GM responsible for Advisory, People and Knowledge Management solutions.
Previously, she worked for Microsoft as the Solutions and Pre-Sales lead for Australian Services and the
Enterprise Strategy and Cloud business for Microsoft Services Asia.
Cindy has extensive background in Professional Services and specialises in Business Strategy and Cloud
Solutions for the Enterprise Collaboration/Knowledge Management space.
Mr Stephen Lynch
General Manager
Stephen is GM Health and has over 28 years’ experience in the Health Industry in Australia and
internationally as a manager, sales executive and health strategist.
Previous roles include COO of Global Health where he was active in the e-Health reforms and involved in
projects for secure message delivery to GP’s and other primary care providers.
Also worked at Digital Equipment Corporation (DEC) as the Business Development Manager for the Health
industry and remained in that role through their merger with Compaq Computer Corporation (now Hewlett
Packard).
Mr Mike Ricketts
General Manager
Mike is GM Technology & Integration. He is also responsible for the creation and management of the
company footprint in Melbourne and the expansion of operations in South Australia.
He has extensive management experience working with medium and large businesses across a range of
industries with a particular emphasis on sales, operational leadership and change management.
His most recent experience in the technology space has seen him lead large scale, complex deployments
into the education and government sectors.
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The information contained in this presentation prepared by The Citadel Group Limited (ASX:CGL) 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 specific needs of any particular person. Potential investors must make
their own independent assessment and investigation of the information contained in this presentation
and should not rely on any statement or the adequacy or accuracy of the information provided.
To the maximum extent permitted by law, none of the CGL Group of Companies, its directors,
employees or agents 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
or correctness, likelihood of achievement or reasonableness of any forecasts, prospects, statement or
returns contained in this presentation. Such forecasts, prospects, statement or returns are by their
nature subject to significant uncertainties and contingencies. Actual future events may vary from those
included in this presentation.
The statements and information in this presentation are made only as at the date of this presentation
unless otherwise stated and remain subject to change without notice.
Important Notice and Disclosure
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Investor enquiries
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Darren Stanley, CEO
Tel: +61 2 6124 0800
Ronn Bechler, Investor Relations
Tel: +61 400 009 774