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1 RXP Services Annual General Meeting 19 October 2016

2 Items of Business A. Chairman and CEO Presentations 1. Discussion of Financial Statements and Reports 2. Consideration of Remuneration Report 3. Consideration Election of Director 4. Consideration of Re-election of Director 5. & 6. Consideration of Ratification and Approval of Previous Allotment and Issue of Securities 2

3 FY16 what we set out to do Our 6 strategic drivers: People Solutions Develop our people, continue to evolve and expand our specialisations Leverage our Intellectual Property, continue to evolve and monitise RXP Solutions Clients Build on existing and develop new Client Relationships Partners Build on existing and develop new targeted Partner Relationships Brand Build on our brand and reputation 3

4 FY16 the results at a glance Revenue up 61% ($127m) Underlying EBITDA up 71% ($18.2m) Headcount +310 (779) Training +503 FY16 Clients Growth from existing whilst adding new 4

5 FY17 looking forward We look forward with confidence once again Client drivers remain strong businesses focused on using design thinking and new technologies to drive growth One-RXP strategy and end-to-end capabilities set places RXP strongly to take advantage of growing spend in our sector Guidance reaffirmed revenue expected to grow 10-15% and target EBITDA margin of 13-14% We continue to leverage capabilities cross-practice to drive growth in client work We remain very well positioned for participation in industry consolidation Strong balance sheet, debt facility in place, growing cashflow conversion Our commitment to a progressive dividend policy remains 5

6 Ross Fielding Chief Executive Officer

7 Business Overview Design thinking and innovation - we combine energy, creativity and technology to make a real and positive difference Respecting our past, we continue to evolve our capabilities, products and services to deliver greater value to clients to increase efficiencies, to tap into new revenue streams, to grow their businesses and drive engagement with people We combine exceptionally talented people with proven methods to deliver client-specific solutions 7

8 FY16 record results across all key metrics Revenue up $47.9m ( 61%) to $127.1m 29% organic growth on FY15 EBITDA increased $8.8m to $16.6m Underlying EBITDA up $7.6m (71%) to $18.2m Underlying EBITDA margin improved to 14.3% Significant increase in EPS to 7.6 cents Our Team grew by 66% to 779 people Operating cashflow up 105% to $14.8m Board declared a final dividend of 2.0 cps fully franked paid on 7 October 2016 Total dividend for FY16 of 3.0 cps 8

9 Our year-on-year growth continues We ve made significant progress against our stated strategic priorities People We continue to drive engagement and connection with our people 779 people at 30 June 2016 A focus on driving cross-practice engagement at all levels of the consultant pyramid We continue to roll-out innovative training initiatives to develop leadership and capabilities across our workforce Clients We ve had significant client wins throughout FY16 An increasing presence within Telco & Media, Banking & Finance, Government, Utilities and Construction sectors A number of significant project wins within State Government departments The acceleration of our design thinking/digital evolution is delivering incremental project wins Solutions We continue the development and productisation of our IP-backed solutions Developed and executing a multi-platform commercialisation strategy for our first IP-backed Field Force Management product Developed and delivering an "insights-as-a-service" offer to a range of clients 9

10 Our year-on-year growth continues We ve made significant progress against our stated strategic priorities Partners Brand Our partner engagement has been a source of project wins and delivered revenue uplift throughout FY16 We continue to execute our mainstream, challenger, disruptive Partner strategy We continue to work with our Partners on joint product and service offers Our brand continues to evolve as the business drivers in our industry evolve Our chosen specialisations continue to drive significant year-on-year growth We continue to drive practice cross-sell opportunities leveraging our end-to-end capabilities Engagement size, complexity and duration continues to build with growth in multi-practice engagements Consolidate Successfully completed and integrated EV and 10C whilst maintaining our onerxp approach We have made significant progress in leveraging EV within our broader rxpengage Practice Quickly leveraged 10C s design thinking and customer experience capability to accelerate our digital evolution 10

11 Diversity of clients We continue to leverage our capabilities and experience across industries and geographies Constant evolution of our capabilities to meet client needs Digital & Cloud Customer knowledge and insights Government 12% Other 4% Engineering & Construction 5% Productivity, Scalability, Flexibility Innovation & Differentiation Retail / FMCG 5% Strengthened our position with many clients An increasing presence within Telco & Media, Banking and Finance, Utilities, Construction and Government Sectors Energy & Utilities 4% $127.1m 61% pcp growth Banking & Finance 37% An increasing number of significant project wins within State government bodies Actively leveraging our capabilities across regions Telecommunications & Media 26% Transport & Distribution 3% Health 2% Education 2% 11

12 Outlook - Continued growth in revenue and earnings expected in FY17 We have made a solid start to FY17 Expecting to deliver at the top end of our 10-15% Revenue growth guidance in FY17 EBITDA margin target remains at 13-14% Leveraging capabilities cross-practice will drive growth in client work Combination of Design thinking and Innovation is a focus Continue to see a strong pipeline of work in and across our specialist Practices Continue to be well positioned for participation in industry consolidation Strong balance sheet combined with the debt facility in place, positions us well for future growth through targeted acquisition(s) We remain committed to our progressive dividend policy and look forward to FY17 with confidence 12

13 Priorities Strategic priorities guiding FY17 People - Clients - Solutions - Develop our people, continue to evolve and expand our specialisations; Drive engagement and connection Ensure depth, breadth and connection by building on our existing and developing new client relationships Leverage our IP, continue to evolve and commercialise RXP Solutions with a focus on cross-practice team delivery Partners - Maintain/evolve/acquire Partner relationships Brand - Continue to build on our brand and reputation Consolidate - Maintain our focus on strategic M&A activity 13

14 In Summary FY16 was another great year for RXP Revenue Underlying EBITDA Headcount 61% Growth 71% Growth 66% Growth $127.1m 18.2m 779 $78.9m $10.6m 469 FY15 FY16 FY15 FY16 FY15 FY16 Other: EPS 7.6cps Continued improvement in cash collection - 89% operating cashflow as percentage of EBITDA Declared an FY16 final dividend of 2.0 cps fully franked bringing total to 3.0cps for FY16 Outlook: Forecasting continued revenue and earnings growth in FY17 Revenue % (expected to be at the top end); EBITDA margin target remains 13-14% 14

15 AGM Items of Business

16 Items of Business Item 1 A Chairman and CEO Presentations 1. Discussion of Financial Statements and Reports 2. Consideration of Remuneration Report 3. Consideration Election of Director 4. Consideration of Re-election of Director 5. Consideration of Ratification and Approval of Previous Allotment and Issue of Securities 16

17 Items of Business Item 2 A Chairman and CEO Presentations 1. Discussion of Financial Statements and Reports 2. Consideration of Remuneration Report 3. Consideration Election of Director 4. Consideration of Re-election of Director 5. Consideration of Ratification and Approval of Previous Allotment and Issue of Securities 17

18 Ordinary Resolution 1: Consideration of Remuneration Report That, the Remuneration Report forming part of the Directors Report for the year ended 30 June 2016 is adopted. Voting Summary For 32,967, % Against 108, % Open usable 16,092, % Excluded 9,043,014 NA 16,014,999 OPEN USABLE PROXY VOTES ARE AVAILABLE TO THE CHAIRMAN 18

19 Items of Business Item 3 A Chairman and CEO Presentations 1. Discussion of Financial Statements and Reports 2. Consideration of Remuneration Report 3. Consideration Election of Director 4. Consideration of Re-election of Director 5. Consideration of Ratification and Approval of Previous Allotment and Issue of Securities 19

20 Ordinary Resolution 2: Election of Director Ms Sandra Hook That, Ms Sandra Hook be elected as a Director of the Company. Voting Summary For 42,121, % Against 0 0% Open usable 16,112, % Excluded 0 NA 16,034,999 OPEN USABLE PROXY VOTES ARE AVAILABLE TO THE CHAIRMAN 20

21 Items of Business Item 4 A Chairman and CEO Presentations 1. Discussion of Financial Statements and Reports 2. Consideration of Remuneration Report 3. Consideration Election of Director 4. Consideration of Re-election of Director 5. Consideration of Ratification and Approval of Previous Allotment and Issue of Securities 21

22 Ordinary Resolution 3: Re-election of Director Mr Kenneth Stout That, Mr Kenneth Stout, who retires by rotation as a Director pursuant to the Company s Constitution, be re-elected as a Director of the Company. Voting Summary For 42,118, % Against 0 0% Open usable 16,115, % Excluded 0 NA 16,037,163 OPEN USABLE PROXY VOTES ARE AVAILABLE TO THE CHAIRMAN 22

23 Items of Business Item 5. & 6. A Chairman and CEO Presentations 1. Discussion of Financial Statements and Reports 2. Consideration of Remuneration Report 3. Consideration Election of Director 4. Consideration of Re-election of Director 5. Consideration of Ratification and Approval of Previous Allotment and Issue of Securities 23

24 Ordinary Resolution 4: Ratification and approval of previous allotment and issue of securities That, for the purposes of ASX Listing Rule 7.4 and for all other purposes, shareholders ratify and approve the previous allotment and issue of 1,940,000 Shares to the vendors of Integrated Value Pty Ltd. Voting Summary For 41,014, % Against 212, % Open usable 16,092, % Excluded 898,434 NA 16,014,999 OPEN USABLE PROXY VOTES ARE AVAILABLE TO THE CHAIRMAN 24

25 Ordinary Resolution 5: Ratification and approval of previous allotment and issue of securities That, for the purposes of ASX Listing Rule 7.4 and for all other purposes, shareholders ratify and approve the previous allotment and issue of 740,741 Shares to the vendors of Centrum Systems Pty Ltd. Voting Summary For 41,912, % Against 212, % Open usable 16,092, % Excluded 0 NA 16,014,999 OPEN USABLE PROXY VOTES ARE AVAILABLE TO THE CHAIRMAN 25

26 Questions?

27 Disclaimer This presentation was not prepared for and should not be relied upon to provide all necessary information for investment decisions. Some of the information contained in this presentation contains forward-looking statements which may not directly or exclusively relate to historical facts. Although great care & diligence has been taken to ensure the accuracy of this presentation, RXP Services Limited gives no warranties in relation to the statements and information contained herein and disclaims all liability arising from persons acting on the information and statements in this presentation. Due to the dynamics and changing risk profiles of investment markets, RXP Services Limited reserves the right to change its opinion at any time. All investors are strongly advised to consult professional financial advisors whose role it is to provide professional financial advice, taking into account an individual investor s investment objectives, financial situations and particular needs. 27

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