Citadel and Tech Market Trends April 2016 Important Notice and - PowerPoint PPT Presentation

Citadel and Tech Market Trends April 2016

Important Notice and Disclosure 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. 2

Contents Who is Citadel 4 Example Technology & Innovation case studies 6 Technology market trends & drivers 10 Emerging future opportunities 14 Appendices 17 3

Who is Citadel? 4

Citadel Overview We manage information securely anywhere-anytime-any device 5

Case Studies of Our Tech Innovation 6

Delivering to Government Clients Leveraging trusted provider status to deliver tangible outcomes Enterprise Content Management Lifecycle  Chosen because of pedigree as a security specialist.  Provided an ‘end -to- end’ solution: scoping, training, migration, integration, security & service support.  Now over 110,000 users (30,000 log in every day).  Users access and manage over 350 million electronic objects from across the globe.  Size and complexity of this deal usually reserved for global SIs, but in this domain we are seen as an obvious Strategic Partner. 7

Enabling complex e-health integrations Optimising service delivery in a disconnected sector  Solution includes amongst others: Highly configurable lab information management system (LIMS)  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 and anatomical pathology.  Largest Australian-based LIMS supporting over 3500 laboratory staff on a 24/7 basis.  Over 25,000 daily transactions (approx. 40% of all public hospital tests nationwide).  Leveraging this case study into other health areas. 8

Enabling unified collaboration Anytime-anywhere-any device  World’s largest multi-point video conferencing deployment: entire student-teacher-staff population can connect real-time from anywhere using any device.  Designed and delivered through combining proprietary software and hardware.  Integrates seamlessly with scheduling, timetabling, audio visual and recording solutions.  Done at significantly less cost.  Students are happier with their learning experience.  Device and application-agnostic solution has enabled a true “BYOD” culture. 9

Tech Market Trends & Drivers 10

Where the Tech World is going Overall Industry Trends  Increasing convergence [the IOTT/device mesh] and ability to share information between devices.  Desire for mobility, functionality and Information availability: anytime – anywhere – any device.  Unprecedented information flows resulting in big data issues: storage, search, awareness, mass drowning.  Increasing number of competitors.  Blurring lines between individual and the corporation in social media and apps.  ‘First mover’ advantage still of benefit.  Entire approach to enterprise architectures, security and sharing is changing.  Still a trade-off between cost, benefit and exposures. 11

Where Tech World is going (2)… Application Trends  Demand for open source, ‘plug -n- play’, or ability to integrate with other apps.  Rise in AI, 3D, augmentation, visualisation and immersion capabilities…all lead to disruption...  Number of competitors and applications increasing exponentially.  Because of this proliferation, search engines, marketplaces, app stores and social media referrals are now the start point for awareness.  Users often ignorant of the IP or information they hand over as part of signing up for ‘free’ apps . 12

Where Tech World is going (3)… Device Trends  Greater number of interoperable platforms and smart sensors.  Highly commoditised at lower end.  But still a place for advanced manufacturers.  Users are happy to adopt devices if these add perceived value. Network Trends  Can source experts and expertise from anywhere.  Original giants predominate. Strength of their position allows them to bundle offerings.  But more agile teams are ‘swarming’ to make rapid advances.  Increasing criticality of securing data and identities: it gets harder to hide and easier to steal information.  The next war is likely to be won or lost in cyberspace. 13

Emerging future opportunities 14

Advancing Healthcare Technology is innovating faster than the marketplace Virtual DIY Home dissections biotech diagnostics  Advances are enabling innovations across health ecosystem. Digital Opto- Semantic  A data explosion, accompanied by new pathology genetics Health record processing power and cognitive technology, is fuelling software intelligence. Nanorobots Wearable Robotic  In blood e-skins assistants Ecosystem is moving from one of sickness to one of wellness. 3D printed AI in decision Virtual trials  Not only is it proactive, it is also personalised. biomaterials support & databases  But where there’s a healthcare advance…then issues with interoperability, Gamification Digestible Remote payments/processing, privacy and information of healthcare sensors monitoring security won’t be far behind…  Anti-ageing Body part Capability This is where Citadel will continue to play … drugs regeneration augmentation 15

Federating Information Demonstrating ability to extend information boundaries securely  Developing next generation of Secure Content & Collaboration.  Currently designing the prototype.  Solution combines: o Collaboration & search via shared web front-end o Standardised reports and templates o Fully integrated information back-end (linking 2200 disparate document stores) and ensuring ‘single version of the truth’ always available o Increased resilience when unreliable connectivity o Security to operate across sensitive and restricted networks globally o Low bandwidth/mixed bearer solutions o Managed service to ensure solution is always supported. 16

Appendices 17

Statutory Results 1H2016 (v PCP) 1H Results: $46.77m $12.61m  Statutory total revenues of $46.77m (up 57%); total revenue EBITDA  EBITDA of $12.61m (up 515%); 57% 515%  Business acquisitions, contract wins and renewals have increased profit before income tax of $8.65m (up 432%); $8.65m $5.57m  Net Profit After Tax of $5.57m (up 312%); profit before net profit  Cash and cash equivalent reserves remain strong at income tax after tax $42.98m (up from $37.22 million in FY2015); 432% 312%  An increase in the balance sheet by $3.26m with net assets of $60.25m; and,  Earnings per share 11.9 cents (up 222%). 11.9¢ Market data as at close 15 February 2016: earnings per share  Share price up from $2.20 (15 Feb 2015) to $4.60 222% (up 109%);  46.7m shares on issue; and,  Market capitalisation circa $215m. 18

Strong Client List Managing complexity across multiple verticals Defence & Health Sector Government Education Private Sector Secure Agencies Australian Government Department of Defence People and Advisory Australian Federal Police Tatts Group Australian Government Department of Defence Big Data & Knowledge Australian Government Management Solicitor Australian Government Leading Australian Telco Department of Defence Integration and Lockheed Martin Australia Technology 19