Salmat Investor Briefing. Thursday 25 th July, 2013

Transcription

1 Salmat Investor Briefing Thursday 25 th July, 2013

2 Page 2 Salmat s strategy for growth Peter Mattick

3 Ernesto Sirolli A global thought leader recognised for driving innovation, entrepreneurship and economic development Page 3

4 Video Page 4

5 Page 5

6 Our vision To be the leading multi-channel communication and engagement provider in the Australasian marketplace. Page 6

7 Global consumer trends Shopping is social Millennials (post generation Y) are driving change Mobile is the medium Seamless omnichannel experience Data insights are key Page 7

8 Consumer and client validation International study tour researching trends and technology. Extensive client validation: consistent feedback from more than 35 C-level contacts: o Greater reliance on strategic partners. o Preference to deal with subject matter experts. o Seek guidance to delineate between what s new vs. what s required. o Need to improve synergies between online and offline channels. Page 8

9 Client challenges and opportunities Businesses face a confusing array of fragmented media channels and disparate technologies: no single view of the customer. New media is not replacing the old: must be integrated. Cost-prohibitive to implement comprehensive communication solution in house. Can t afford to do it, can t afford not to. Page 9

10 Our strategy The cornerstone of our strategy is a deep understanding of the future needs and behaviours of consumers and our unique ability to seamlessly integrate existing and evolving technologies. This enables our clients to cost-effectively Reach and Influence their customers and maximise their sales and ROI. Page 10

11 What makes Salmat unique? We have products that cut through to deliver our clients a significant competitive advantage. Long-term, trusted client relationships across multiple sectors. We have the client base. A variable cost platform model provides a world-class competitive advantage. Strong experienced team Page 11

12 Strategic platforms for growth Consumer Marketing Solutions Customer Engagement Solutions Universal Catalogue Influence Single view of Customer Reach & Direct Sales Strategic Consulting & Data Insights Page 12

13 Page 13 Consumer Marketing Solutions Peter Anson

14 Universal Catalogue Seamless distribution of physical & digital catalogue content Distribution in to clients own websites & Lasoo.com.au A B Universal Catalogue A B WHY? Physical catalogues Lasoo s UC Platform Social distribution Distribution in to clients mobile sites and apps Driven by clients need to maximise ROI across their physical catalogues & own digital assets Page 14

15 Our unique value proposition By combining physical and digital assets, we are uniquely positioned to enable our clients to distribute more engaging content anytime, anywhere, on any device to drive MORE sales Page 15

16 Universal Catalogue provides: Best of breed letterbox targeting sophistication and reliability Increased digital audience reach Seamless repurposing of content for mobiles and tablets Ecommerce integration to drive more sales Streamlined client account servicing Richer data analytics & insights Page 16

17 Page 17 Universal Catalogue is resonating with retailers

18 e-tailers utilising physical catalogues

19 Universal Catalogue innovation roadmap Off the page transactions Off the page mobile coupons Digital catalogue data analytics Geo-fence triggered offers Lasoo affiliate network Page 19

20 Video

21 Universal Catalogue innovation roadmap Off the page transactions Off the page mobile coupons Digital catalogue data analytics Geo-fence triggered offers Lasoo affiliate network Page 21

22 Page 22 Growing the channel

23 Growing the channel Agencies Non-traditional Page 23

24 Page 24 Influence - Multichannel Campaign Management

25 Influence multichannel campaign management Influence combines Salmat s expertise in campaign management and marketing services with a best-ofbreed multichannel marketing platform to bring deeper customer interactions to life. Page 25

26 Influence solution overview Deliver the right offer to the right customer through the right channel Web Social Mobile Direct Mail Voice Optimise marketing efficiency with workflow and asset management Cleanse and aggregate data CRM POS Online Single Customer View Page 26

27 Page 27 Introducing Salmat Influence

28 Video Page 28

29 Page 29 Platform credibility

30 Our unique value proposition Strategy & Design Influence Technology & Platforms Service & Delivery Page 30

31 Page 31 Jax Tyres case study

32 Video Page 32

33 Page 33 Customer Engagement Solutions David Besson

34 Page 34 Introducing Salmat Reach

35 An integrated solution of best-in-class technology platforms speech Takes calls & routes them in the most cost effective manner. Facilitates multichannel connections between an organisation and its customers Enriches the customer experience with realtime customer data, knowledge, insights & workflow Page 35

36 The multi-channel challenge Salmat client change in contact volume over 2 years Voice up 75% up 201% Social & Web Chat up 80% Offshore migration of service delivery 25% Source: Salmat 2013 Page 36

37 Salmat CES yesterday Limited channels Bricks & mortar outsourced services from fixed locations Page 37

38 Page 38 Salmat CES today

39 Page 39 Salmat Virtual Contact Centre

40 Page 40 Salmat Reach: Unified Experience Manager

41 Salmat Reach: Unified Experience Manager An example Car accident? Take a photo of the damage & exchange details. Call your insurer, advise details & get instructions to organise repair. Forward photo via to agent. System receives photo & knows it s you you re on file. System issues a work order to repairer including your details. You receive a text, confirming location and opening hours of repairer. They re expecting you at the repairer & can advise how long the repairs will take. Page 41

42 New business won utilising Salmat Reach routing Proactive outbound More than $30 million TCV new business closed in 9 months Web chat Unified Experience Manager Page 42

43 Video Page 43

44 Page 44 Unique multi-channel communication platform. Based on a variable cost model. Combines multiple best of breed technology platforms. Provides channel and systems integration for a 360 degree view of the customer. Connects and automates the front office with back office processes and service delivery.

45 Page 45 Growth strategy outlook Peter Mattick

46 Improving profit and shareholder returns Page 46

47 Progressing our strategy 2011 * Page Acquire Photon digital assets LDN portal build Reach first customer Universal Catalogue build commences Single customer view E-Commerce launches $30m TCV Reach new clients LDN portal live Reach build commences Influence build commences Influence live and first clients 2014 Reach migration complete costs out BPO transition completes costs out Strategy opex investment of $12m in FY14 (P&L) (FY13 $4.5m) Strategy capex investment of $12m in FY14 (FY13 $6m) BPO divestment & transition commences Universal Catalogue migration complete sales uplift * Calender Year Page 47

48 Business update Confirm EBITA guidance. Consumer Marketing Solutions: Australian media sector under pressure in 2013, with market conditions driving short term cost focus. Catalogue remains resilient. Online and offline convergence of campaigns increasing, e.g.: o Online retailers now using catalogue o Mid-market starting to return to multichannel campaigns Customer Engagement Solutions: Contact centres improved margin performance. Impacted by direct sales with energy retailers pulling out of the channel. Page 48

49 Acquisition and investment criteria Any acquisitions will: o Be established businesses o Deliver recurring revenue and Profit o Have strong IP, capabilities and client base o Complement the growth strategy Page 49

50 Dividend Yield (%) Salmat s strong capital management history 10.0% Dividend Yield 1 Including Special Dividends 8.0% 6.0% 4.0% SLM 2.0% Peer_Index DiscRet_Index -% FY SLM Peer Index 2 Disc. Retail Index 3 Average 6.7% 3.7% 4.5% If you bought shares for $1.90 at listing you will have earned $2.28 in dividends (fully franked) after the final dividend for FY For the purpose of this analysis historic dividends for the fiscal year have been used. Dividend yield has been calculated on the average closing price across the fiscal year. 2. Peer Index is composed of a simple average of PMP, SAI Global and STW Communications. 3. Discretionary Retail Index is composed of a simple average of HVN, SUL, MYR, DJS, JBH, PBG, BBG. PMV, ORL, KMD, TRS, FAN. SFH. NCK. NRL. Source: Factset, IRESS Page 50

51 Capital management $40 million already returned via special dividend. Intend to maintain some flexibility for potential investments. Guaranteed 15cps dividend fully franked for FY14*. Represents a yield of 7.2% on current price. Board strongly believes in investing the BPO proceeds for our shareholders future benefit. * Subject to the normal approval process and there being no unexpected material events. Page 51

52 Page 52 Questions

53 Page 53 Please join us for lunch and meet the team

54 Disclaimer Company announcements and presentations can contain forward-looking statements. Words such as believe, anticipate, plan, expect, intend, target, estimate, project, predict, forecast, guideline, should, aim and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include but are not limited to: competition and product pricing in the markets in which we operate; general economic and market conditions; compliance with, and possible changes in, environmental and health and safety laws; dependence on cyclical markets; the supply and cost of materials; exposure to environmental or other legal proceedings; and risks of conducting business internationally. We caution you that the foregoing list of factors is not exclusive and that other risks and uncertainties may cause actual results to differ materially from those contained in forwardlooking statements. Forward-looking statements speak only as of the date they are made. Page 54