MANACCOM CORPORATION LIMITED Audio Webcast

MANACCOM CORPORATION LIMITED (MNL)

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MANACCOM CORPORATION LIMITED (MNL) Events

Company (Stock Code)	Date/Time	Event	Timezone: Australia/NSW
MANACCOM CORPORATION LIMITED (MNL) Manaccom Result Delivers on Forecast	Wed, 27 Aug 2008 09:45AM	MNL - Preliminary Final Report - Mr Mike Veverka, CEO & Executive Director
MANACCOM CORPORATION LIMITED (MNL) On Target for a Strong Result	Mon, 21 Jul 2008 12:00PM	MNL - Smart Business eConference - Mr Mike Veverka, CEO & Executive Director
MANACCOM CORPORATION LIMITED (MNL) Sales Spike with OZ Lotto Jackpot	Wed, 9 Jul 2008 03:15PM	MNL - Manacom Secures Tattersall’s Agreement to 2013 - Mr Mike Veverka, CEO
MANACCOM CORPORATION LIMITED (MNL) Profit Upgrade, Maiden Dividend & Strong Growth Outlook	Mon, 30 Jun 2008 03:15PM	MNL - Letter to Shareholders - Mr Mike Veverka, CEO
MANACCOM CORPORATION LIMITED (MNL)	Wed, 21 May 2008 03:40PM	MNL - Upgraded Forecast - Mr Mike Veverka, CEO
MANACCOM CORPORATION LIMITED (MNL)	Wed, 14 May 2008 01:30PM	MNL - Strong Growth drives Maiden Dividend and Acquisition Opportunities - Mr Mike Veverka, CEO
MANACCOM CORPORATION LIMITED (MNL)	Fri, 19 Sep 2008	Date Payable
MANACCOM CORPORATION LIMITED (MNL)	Wed, 10 Sep 2008	Record Date
MANACCOM CORPORATION LIMITED (MNL)	Thu, 4 Sep 2008	Ex Div Date
MANACCOM CORPORATION LIMITED (MNL)	Tue, 26 Aug 2008	Full Year Results
MANACCOM CORPORATION LIMITED (MNL)	Thu, 21 Feb 2008	Interim Results
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MANACCOM CORPORATION LIMITED (MNL)

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PRESENTATION BY MIKE VEVERKA, CHIEF EXECUTIVE OFFICER AND EXECUTIVE DIRECTOR OF MANACCOM CORPORATION LIMITED (MNL)

“Smart Business eConference - On Target for a Strong Result”

http://www.brr.com.au/event/47965

 

MONDAY, JULY 21 2008, 12:00 PM.

 

MNL Welcome to the July 2008 update from Manaccom Corporation Limited Financial Year 2008 - On target for a strong result. My name is Michael

10 Veverka and I’m the CEO of Manaccom Corporation. This presentation is for the Smart Business Conference for Boardroom Radio.

 

Recently, April was our best month ever. Both divisions had excellent sales results and this has placed us well on target to be within our forecast

15 guidance for the financial year 2008. We recently instituted a dividend policy which means that at least 20% of our net profit after tax will be distributed and the first distribution is scheduled for later this year.

 

This graph shows a strong revenue growth over the last five years. In

20 particular in the current financial year, the acquisition of Manaccom Proprietary Limited in September 2007 has really given our sales this year a real jump. The net profit after tax for the half year to December ’07 was 214,000 and this has more than tripled in the last half year to December 2008. Our forecast for the full year 2008 is between $1.7 to $2.3 million.

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Under our recently announced dividend policy, we’ll pay at least 20% of our net profit after tax as a dividend to shareholders. This means that investors can expect a dividend approaching 1.0 cent per share. This dividend is scheduled to be paid later this calendar year. We currently have around 43

30 million shares on issue and this has reduced as a result of our continuing share buyback. Our organic growth is strong and we’ll continue to seek acquisition opportunities to complement our organic growth.

 

So what is the Manaccom business? Basically, it’s divided into two divisions

35 of equal size: ozlotteries.com which sells lottery tickets online, and Manaccom, the distribution and software publishing division. The lottery division was established in 1990 and became part of our business in 2005 when we acquired the business.

 

40 Ozlotteries.com is the flagship website and retails popular Australian lotteries online. In addition to this, we also operate our lottery network throughout nine specific countries. The website has undergone tremendous growth and we have recently signed a partnership agreement with NineMSN to help promote the site. Ozlotteries.com is the only independent operator permitted to sell

45 lotteries over the internet and represents both Tattersall’s and New South Wales lotteries as our lottery supplier. And just last week, Manaccom announced that an extended reseller agreement had just been signed with Tattersall’s extending our relationship to 2013. This longer agreement gives Manaccom’s lottery division another five years to continue with strong growth.

 

The distribution and software publishing division was established in 1986 and acquired by our company in September 2007. Manaccom publishes softwares such as Trend Micro Internet Security, Net Nanny Internet Content

5 Filter, Acronis, Nitro PDF, and Zone Alarm and markets these products into leading retailers. In addition to this, Manaccom also sells direct to large corporations. The business has very strong relationships with the major retailers and has been Harvey Norman Software Supplier of the Year since 2005.

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Now, it’s worth spending a minute or two to review our market capitalization. The first half of the year when Manaccom Proprietary Limited only trade four of the six months and ozlotteries.com was much smaller than it is today, we have profits of $764,000. This would indicate how confident we are of

15 achieving an NPAT of at least $1.7 million in the full year. And if we look at a PE of 10 based on that 1.7 NPAT, our market capitalization should be around $17 million mark or a share price around about the 40 cent mark. And that’s at the lower end of the scale.

 

20 Now, if we consider the middle of the range around that profit after tax and take a figure of $2 million then with a PE of 10, our market capitalization would be around $20 million which gives us a share price of around 47 cents. Now, some companies in our sector have PEs around the 18 mark. So even at 15, our share price will be 70 cents based on the NPAT of $2 million.

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Now, if we consider the upper end of our guidance and NPAT comes in around $2.3 million with a PE of 10, our share price should be around 53 cents. And if we are looking at it optimistically, a PE of 15 quite clearly would give us a share price around 80 cents. And keep in mind we plan to pay a

30 20% dividend based on our net profit after tax.

 

This slide shows our current strong balance sheet as of 31 December 2007. As you can see we have ample liquid assets for trading and we have spare cash available should our strong acquisition present itself. The total assets

35 currently are around $17 million with net assets around $10 million and this of course has increased since December 2007.

 

The board for Manaccom Corporation: David Barwick is our chairman. David is an accountant by profession who’s been involved in many public listed

40 companies over the last 36 years. He brings his wealth of experience to Manaccom Corporation. Ian Mackay is our deputy chairman. He commenced the original Manaccom Proprietary Limited business back in 1986 and he is also an accountant. Myself, Mike Veverka, I commenced the original public company before the turn of the century and my background is engineering

45 and in the Internet industry. Both Ian Mackay and myself hold approximately 20% of the shares each.

 

Looking at the future, we believe that our organic growth will continue with our business maturing even further. Our profits are sustainable and this will mean continuing dividend. We’re also looking to grow further to complement our organic growth with acquisitions that complement our existing business. And we believe we have the right formula to capital growth in our share price. All in all, the future is looking great for Manaccom Corporation.

 

INTERVIEW CONCLUDED

 

 

 

Contact brr@brr.com.au for more information

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