stability through diversity focused on growth€¦ · health centre, healthpartners) ... cyber...
TRANSCRIPT
© Calian Group Ltd. Proprietary Information and Confidential
1
Stability through diversityFocused on growth
© Calian Group Ltd. Proprietary Information and Confidential
2
Investment Value Proposition
36 years in business
69 consecutive profitable quarters
Dividend stream ~3-4% yield + share value growth
2018 TSR 9%; last 3 years annualized: 35%
Investing in innovation
Strong backlog - $1.3B
Strong balance sheet
Strong management team
Organic and acquisitive growth strategy
Clear and differentiated value proposition in diverse markets
© Calian Group Ltd. Proprietary Information and Confidential
3
Diverse Service Offerings
Information Technology
TrainingHealth Engineering ContractManufacturingMarkets Served
• Department of National Defence
• Correctional Services
• Canadian Border Services
• Federal, Provincial & Municipal Police
• Oil & Gas industry
• Department of National Defence
• Indigenous Communities
• Nuclear
• Federal, provincial and municipal government departments
• Financial institutions
© Calian Group Ltd. Proprietary Information and Confidential
4
Calian Health
Clinician Services Clinic Management Health Practice Management
SpecializedPsychologicalAssessments
© Calian Group Ltd. Proprietary Information and Confidential
5
Calian Training
Emergency Management Solutions (EMS) Custom Training Solutions (CTS)
© Calian Group Ltd. Proprietary Information and Confidential
6
Calian IT Professional Services
Cyber Security Practice
SAP Consulting Practice
IT Development and Support
Services
IT Consulting Services
© Calian Group Ltd. Proprietary Information and Confidential
7
Calian Systems Engineering
ProductsGround Systems Gateways & Planning Nuclear
© Calian Group Ltd. Proprietary Information and Confidential
8
Calian Contract Manufacturing
DefenceCommercial Test
© Calian Group Ltd. Proprietary Information and Confidential
9
Four Pillar Growth Strategy
© Calian Group Ltd. Proprietary Information and Confidential
10
Growth Opportunities in Key Markets
AgTech EmergencyManagement
Cyber Security Health Care Satellite
$10B$180B $240B
$355B
$170B
12.4% 5.5% 9.5% 2.7% 2%
GroundEquipment
7%
$130B
© Calian Group Ltd. Proprietary Information and Confidential
11
Corporate Social Responsibility
Military Family Doctor Network (~1,600 family members)
Award-winning veteran-friendly employer
Support for military family health research (CIMVHR)
Community and charitable support (e.g., United Way, the Ottawa Hospital Foundation, the Royal Ottawa Mental Health Centre, HealthPartners)
ISO 26000 social responsibility standard
© Calian Group Ltd. Proprietary Information and Confidential
12
Innovation
© Calian Group Ltd. Proprietary Information and Confidential
13
SED: Innovation is in our DNA
Innovation has always played a key role at CALIAN SED
© Calian Group Ltd. Proprietary Information and Confidential
14
Core Building Blocks
Develop core building blocks to meet common project requirements
Better Systems Solutions at a Compelling Price
Mon-A-Co Equipment Management
4
2
3
14
16
15
5
8
12
76
3.0
3.0
3.0
1
1.3
1.3
3.6
3.6
3.6
3.6
3.6
3.6
3.0
3.0
3.0
3.0
3.0
3.0
3.0
3.0
9
10 11
3.0 3.0
1-1 1-2
2-2
3-2
4-24-1
3-1
2-1
10-1
6-1
5-1
7-1
9-1
11-1
8-1
10-2
8-2
6-2
5-2
7-2
9-2
11-2
13
Antenna De-Ice
© Calian Group Ltd. Proprietary Information and Confidential
15
Aggregating a Market Requirement into a Product that has Compelling Value
Look for that Inflection Point
Develop our own productsWhere innovation is needed
over existing solutions
Where we can make an entrance and take over market share
Decimator Spectrum Analyser
© Calian Group Ltd. Proprietary Information and Confidential
16
M&A: Opportunities to Leap Forward
Internal capabilities
Outside companies
The proverbial “1 + 1 = 3”
Mergers and Acquisitions
New opportunities
New markets Increased market
share
© Calian Group Ltd. Proprietary Information and Confidential
17
Innovation Cycle
Aggregating a market requirement into a product that has compelling value
Two examples of innovation:
DOCSIS Remote-PHY Technology
AgTech innovator IntraGrain
Innovation
Project
Core
Product
Acquisition
© Calian Group Ltd. Proprietary Information and Confidential
18
DOCSIS InnovationDOCSIS Innovation
© Calian Group Ltd. Proprietary Information and Confidential
19
What is a Cable Network?
Cableheadend
Satellitesignals
Opticalnodes Amp
Homes
Coax cable
Coax cable
AmplifiersCoax
Up to 2,000 homesPer optical node
Fiber-opticalcables
© Calian Group Ltd. Proprietary Information and Confidential
20
What is the Cable Market Today?
Cable network operators (MSOs)
Equipment vendors
Technology vendors
© Calian Group Ltd. Proprietary Information and Confidential
21
What is DOCSIS?
Data Over Cable Service Interface Specification
© Calian Group Ltd. Proprietary Information and Confidential
22
What is our DOCSIS Story?
Satellite communications networks expertise Manufacturing capability Traction in DOCSIS test equipment Inflection point: DOCSIS 3.1
© Calian Group Ltd. Proprietary Information and Confidential
23
What is DOCSIS 3.1?
Gigabit Ethernet Lower latency, higher quality Remote PHY Full Duplex
© Calian Group Ltd. Proprietary Information and Confidential
24
What’s our Innovation?
DOCSIS test equipment DOCSIS Remote PHY technology
© Calian Group Ltd. Proprietary Information and Confidential
25
What’s our Competitive Advantage?
Strong team Compelling technology baseSuite of powerful business relationships spanning the
community
© Calian Group Ltd. Proprietary Information and Confidential
26
What’s our Strategy?
Technology and product development; IP licencing Investment opportunities Focus on products and technology for equipment vendorsBuilding relationships with key cable operatorsDOCSIS technology for other markets (e.g., 5G and satellite)
© Calian Group Ltd. Proprietary Information and Confidential
27
Kyle Folk, President
© Calian Group Ltd. Proprietary Information and Confidential
28
Can we grow more
food in 50 years
than in all of
history?
© Calian Group Ltd. Proprietary Information and Confidential
29
Grow more
Increase Efficiencies
Reduce Waste
© Calian Group Ltd. Proprietary Information and Confidential
30
GRAIN SPOILAGE
© Calian Group Ltd. Proprietary Information and Confidential
31
© Calian Group Ltd. Proprietary Information and Confidential
32
Developing countries lose far more to spoilage than we do in North America
© Calian Group Ltd. Proprietary Information and Confidential
33
© Calian Group Ltd. Proprietary Information and Confidential
34
© Calian Group Ltd. Proprietary Information and Confidential
35
203,000
148,000
72,000 80,000
503,000
SK AB MB REST OF CAD TOTAL
Bins in Service (est. based on 5,000 bushel average per bin)
Approximately 3% being served
0 2E+10 4E+10 6E+10 8E+10 1E+11
WORLD MARKET
CANADIAN MARKET
CURRENT CUSTOMERS
Bushels
Bushels
Only 0.07% of the world has been served
© Calian Group Ltd. Proprietary Information and Confidential
36
PartneringAcquiringDeveloping
© Calian Group Ltd. Proprietary Information and Confidential
37
We help the world communicate, innovate,
lead healthy lives and stay safe.
Agriculture affects each and every one of us multiple times a day. It is our very basis for survival and yet in many countries we seem to take it for granted.
Not only is this a massive opportunity for Calian, it’s a social responsibility.
© Calian Group Ltd. Proprietary Information and Confidential
38
Financial Report
© Calian Group Ltd. Proprietary Information and Confidential
39
Consolidated Financials FY 2018 Year ended Sept 30
© Calian Group Ltd. Proprietary Information and Confidential
40
HISTORICAL REVENUES
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2000 2005 2010 2015 2018 2019
© Calian Group Ltd. Proprietary Information and Confidential
41
Growth achievements
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
2005 2010 2015 2018
TSR
2005-20159.4%
2015-201834.9%
-
0.50
1.00
1.50
2.00
2.50
2005 2010 2015 2018
BASIC EPS
2005-20152.8%
2015-201820.1%
-
5,000
10,000
15,000
20,000
25,000
30,000
2005 2010 2015 2018
EBITDA
2015-201815.7%
2005-20151.4%
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2005 2010 2015 2018
REVENUE2015 -2018
8.6%
2005 -20153.6%
© Calian Group Ltd. Proprietary Information and Confidential
42
FY2015 - FY2018 Performance Highlights
EarningsPer ShareEBITDA
9% avg annual
$242M
2015
$17M
2015
$1.33
2015
$305M
2018
$25M
2018
$2.13
2018Revenue
16% avg annual
20% avg annual
© Calian Group Ltd. Proprietary Information and Confidential
43
Three-year share price performance
2015 to 2018
Annualized TSR FY2015-2018
35%
© Calian Group Ltd. Proprietary Information and Confidential
44
Investments
R&D in product development
Operating costs: Increased marketing investment Invested in business development and market research Invested in subject matter experts – cyber, emergency response
preparedness Invested in M&A support and back office to support growth
2017: > $4M 2018: > $4M 2019F: > $3M
© Calian Group Ltd. Proprietary Information and Confidential
45
Mergers and Acquisitions
Acquiree Date Acquired Description of BusinessService
LineEarn-Out
Achievement
Manufacturer of agriculture products with IoT capabilities
Contract Manufacturing On trackIntragrain November 2018
Specialized psychological assessmentsHealth
No earn-out. On target with
forecastPriorityOne July 2018
Management of medical clinics
Health Yr1 and Yr2: 122%Primacy March 2012
Dedicated partner in IT and Information Security
Cyber Resilience
OfficeOn trackSecure Tech June 2018
Provision of IT cyber security professionals
Cyber Resilience
OfficeYr1 and Yr2:
100%DWP June 2014
Nuclear safety and emergency preparedness and response
EmergencyManagement
Services
Yr1: 136%, Yr2: on trackISR May 2017
Provision of engineering services
EngineeringServices
Yr1 and Yr2: 102%Amtek April 2014
© Calian Group Ltd. Proprietary Information and Confidential
46
Financial StrengthDec 2018
ASSETS:Cash, net $ 8.4Receivables 65.6Work in Process 16.6Other Current Assets 7.4
98.0Capital Assets 13.0Goodwill 26.0Intangibles and Investment 14.1
$ 151.1LIABILITIES AND SHARHOLDERS’ EQUITY:
Payables and Other $ 43.6Unearned Revenue 8.1Total Liabilities 51.7Shareholders’ Equity 99.4
$ 151.1
-
200
400
600
800
1,000
1,200
1,400
1,600
2008 2010 2012 2014 2016 2018
Backlog (millions)
© Calian Group Ltd. Proprietary Information and Confidential
47
Looking forward – As of February 6, 2019
FY2019 HI FY2019 LO FY2018
Revenues $ 360.0 $ 330.0 $ 305.0% increase [18% - 8%]
5% from recent acquisitions
EBITDA $ 30.0 $ 28.0 $ 25.3% increase [20% - 10%]
Net Earnings per Share * $ 2.40 $ 2.10 $ 2.13% increase [13% - -1%]
* EPS impacted by acquisition interest accretion
© Calian Group Ltd. Proprietary Information and Confidential
48
Stability through diversityFocused on growth