shaw and partners emerging leaders conference€¦ · case study: government clients leveraging our...
TRANSCRIPT
Citadel Group LimitedDarren Stanley – CEO
31 May 2017
Shaw and Partners Emerging Leaders Conference
Strategic rationale
What we do…
2
We specialise in managing knowledge in complex environments through integrating know-how,
systems and people to provide information securely on an anywhere-anytime-any device basis
Security & assurance
Protect and control
Integration &
Technology
Software-as-a-Service,
collaboration and
presentation systems, unified
communications,
telemedicine and video
conferencing
Big Data & Knowledge
Management
Capture, share, access and
use corporate information,
plus provide de-identified
data as-a-service
Trusted brand
Unique IP
Proven pedigree
Scalable cloud-based SaaS
Long-term sticky revenue contracts
Best practice EBITDA margins >25%
Strong growth drivers (right markets/right time)
People & Advisory
Strategic advice, systems
engineering, program management
and support services
...with a focus on IP scalability
3
Research & DevelopmentSecurity, Risk, Identity, Military, Intelligence, Health,
Information Management
AdvisoryBusiness Transformation, Enterprise Risk,
Digital Transformation, Enterprise Content
Management, ICT Strategy, Enterprise Service
Management
SolutionsBespoke Design & Build, System
Integration
Managed ServicesService Desk, Service Management, Field
Services, Service Operation, Support
Services, Facilities Management
IT as a ServiceUnified Comms, Desktop
management, Application,
Infrastructure, Network, Data
Centre, Control Centre
Software as a ServiceECMaaS, IDaaS, VCaaS
Integration Platform
as a ServiceHealth IPaaS
Platform as a ServiceServiceNow®, Microsoft Azure ®,
Amazon Web Services ®
Infrastructure as a
ServiceCitadel Cloud, Microsoft
Azure ®, Amazon Web
Services ®
ProductsLaboratory Information Systems, eBloods, Kapish
eDRMS Productivity Suite, Assured Identify
Management, Citadel Information Exchange (CiX)
Significant technology trends
4
Move away from ‘mass drowning’ of information to mass analysis and prediction.
Unprecedented information flows will require predictive analytics to determine what people
need to know and when
Inter-connectedness/hyper-connectedness to continue (IOTT - internet of things and
threats) but with greater controls to ensure connectedness does not mean information
‘compromise’
Continued blurring of lines between the individual and the corporation due to social media
(i.e. make my enterprise apps look like social apps) and make it available anywhere
anytime and any device (but particularly my own mobile phone!)
Secure content and collaboration trend is increasing the importance of securing data and
identities: information harder to conceal but easier to steal
GMM (Give Me More….of everything!) but make sure its actually for me. It is the
‘individualisation’ of information
Artificial intelligence, robots, intelligent sensors, virtualisation will all lead to disruption …..so
IP protection and competitive advantage now more important than ever
Strategic rationale
Key outcomes for
CGL
No longer just Government and Defence
Growing need for secure Information
5
Changing macro economic environment – greater ‘nationalisation’ and increasing threat of
‘information compromise’ across all industries and Governments
Numerous data security breaches have impacted large businesses globally
– May 16: 117 million LinkedIn emails and passwords hacked
– Jun 16: T-Mobile employee attempted to sell database of 1.5 million customer records
– Aug 16: Yahoo reveals that account information of 500 million users (names, emails,
phone numbers, encrypted passwords) hacked
– Nov 16: 1 million google accounts breached by malware to access data
– Nov 16: £2.5 million stolen from Tesco Bank online accounts
– Jan 17: Lloyds Bank hit by DDoS attack attempting to block access to bank accounts
– May 17: WannaCry ransomware attacks around 200,000 computers and up to 70,000
healthcare devices including MRI scanners, blood-storage refrigerators and theatre
equipment
As data migrates to the cloud, robust data security systems are required
Large and growing markets (no sector is immune from attack)
Citadel is leveraging its Government and Defence pedigree to drive growth
Strategic rationale
Key outcomes for
CGL
Managing integration in complex environments
Information anywhere, anytime - securely
6
As technology evolves, more data is migrating to the cloud requiring:
– Greater bandwidth and storage capacity to support “real-time” decisions
– Real time analytics of fully scalable big data (no sql database limits!)
– 24/7 service desk to support thousands of users globally
– 24/7 system management for more complex environments
– Security management (people, process AND technology)
– Enterprise grade cloud as a fully-managed service
– Secure direct access to provision and manage cloud instances (data sovereignty)
– Centralised management and control of cloud environments (private, hybrid, public, enterprise)
+ ability to automate and manage very complex environments across all popular technology
stacks
– Ability to capture all cloud, server, device and application logs in a centralised system to enable
detailed Operations & Security Intelligence
Citadel’s scalable platform solutions address all complex integration requirements
CitadelWATCH
7
Our eye in the sky that captures all cloud, server, device & application logs in a centralised
system enabling us to provide detailed Operations & Security Intelligence and predictive
analytics to our clients
8
Case study: Government clients
Leveraging our “trusted provider” status with a long-term
customer to deliver tangible outcomes
Selected given security specialist
pedigree
An ‘end-to-end’ solution: scoping,
training, migration, integration, security &
service support
>110,000 users (30,000 log in every day)
Users access and manage over 350m
electronic objects from across the globe
Contract held since 2005, with three
‘market retests’
Replicable into other Government and
Corporate clients
SHARE COLLABORATE
INDEX SEARCH
ENTERPRISECONTENT MANAGEMENT
STORE
PUBLISH DEPLOY
RECORDARCHIVE
REUSE
PROCESS MANAGE
Case study: complex e-health integration
Optimising service delivery in a disconnected sector
Solutions for clients are enabled via multiple modules
– Order placement and management
– Positive patient identification
– Specimen and Image handling
– Point of care testing
– Biochemistry, microbiology and haematology
– Molecular diagnostics and molecular genetics
– Immunology and anatomical pathology
Largest Australian-based LIMS supporting >34
laboratories, 3,500 laboratory staff on a 24/7 basis
>50,000 daily transactions… ~40% of all public
hospital tests
27 years of patient histories for data analytics/BI
Leveraging into other health areas9
Strategic rationale
Key outcomes for
CGL
A history of service contract renewal…
10
Managed service contracts prolong the average duration of client relationships and provide stable,
recurring revenue streams, as well as opportunity to upsell
Information security and track record often more important than price
Strong history of renewal through exceeding client requirements and adding value to the relationship
Strategic rationale
Key outcomes for
CGL
Knowledge
Operational Update
11
Extended the suite of cloud-based ‘as-a-service’ offerings to support clients pursuing secure cloud
initiatives, coupled with fully managed solutions:
– Follows a two year intense period of client-led product development
– Enterprise information solutions (CiX - Citadel Information Exchange) successfully grown into
broader markets including new engagements with Unity Water, Queensland Police and the
Department of Defence
– Enterprise Service Management solutions for fully hosted asset management, risk/compliance
management and workflow management across key sectors including Health, Education, all
levels of government and Defence
– Work progressing well in the first $24.8m work package (over 2 years) for a large Federal
Government agency
– Secure Content and Collaboration Service (SC2S) project with Defence also progressing well and
have moved to Navy trials at sea
– Just awarded 2017 HPE APJ Partner of Year for Information Management and Governance
Strategic rationale
Key outcomes for
CGL
Knowledge continued
Operational Update
12
Defence has extended its contract for the sustainment of its electronic document and records
management environments (now holding 500 million items accessed by over 110,000 users).
Citadel are now also engaged to:
– Update the suite of tools and utilities allowing integration with other Defence enterprise systems
– Replace Defence’s archival hardware and software to support the department’s move to a wholly
digital records management regime
– Provide support to the wider Defence community in managing and optimising corporate records
management practices (via enhanced workflow, digitisation and audit controls)
Initiatives to deliver revenues of more than $23 million over the term of the contracts
Strategic rationale
Key outcomes for
CGL
Health
13
Citadel signed a contract with Queensland Health that will generate $6.7 million over the term to
deliver a fully hosted cloud-based laboratory information management solution
– Follows the signing of a five year contract extension with Queensland Health in February 2017
Implementation of Citadel’s new Evolution Laboratory System at the Peter MacCallum Cancer
Centre is progressing well
– Project will go live before the end of FY 2017
Interfaces for the National Blood Authority’s Bloodnet initiative have passed trials with one of
Citadel’s key customers and now certified
– Being rolled out in Queensland Health now
Citadel continues to commercialise IP across the e-health spectrum and remains well positioned
to expand its Government and Private Health sector customer base as ‘cloud first’ initiatives are
brought to market
Operational Update
Strategic rationale
Key outcomes for
CGL
Technology
Operational Update
14
Expanded ranges of services for Monash University with a strong pipeline to deliver similar
services to other Australian tertiary institutions
The technology team has also been engaged to:
– Deliver complex collaboration solutions to Defence in support of its highly advanced electronic
attack Growler aircraft fleet in Amberley (QLD). Similar solution just won in Williamtown (NSW)
and looking positive for Edinburgh (SA)
– Commence support and maintenance work for the New Royal Adelaide Hospital’s visual
collaboration systems under an agreement with the hospital’s facilities manager
Together, these initiatives will deliver additional revenues of at least $12 million
over the life of the contracts
Citadel is on track to meet current market expectations for the 2017 Financial
Year, reflecting another year of strong growth at industry-leading margins
Strategic rationale
Key outcomes for
CGL
Looking forward
15
Increased Defence and ‘national security’ spend on local quality companies positions the Group
well for continued organic growth
Our investments in cloud-enabled solutions will enable the Group to rapidly scale our unique IP
across a larger client base (including international clients)
The pipeline of work for our cloud-based information management solutions, our integration
services in Defence and Federal Government Agencies, and our e-Health initiatives will support
continued strong underlying growth for the business in the years ahead
We will continue to pursue attractive M&A opportunities as they arise in support of our organic
growth strategy
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
16
CONTACT:
Darren Stanley, CEO
Tel: +61 2 6124 0800
Ronn Bechler, Managing Director – Market Eye
Tel: +61 400 009 774