Investor Presentaiton
Outlook
Realistic about short term headwinds but optimistic on medium to long term opportunities
•
Operations
FY2019 guidance (updated 31 May 2019) reaffirmed:
>
Operating EBITDA: $350 - $360m (FY2018: $335m)
•
Pro-forma Operating EBITDA2: $315 - $325m (FY2018: $309m)
Operating NPATA: $195 - $205m (FY2018: $207m)
CPCS Operating EBITDA expected to be approximately $35m in
FY2019
Brexit uncertainty impacting business sentiment and operating
performance in Europe
Retirement & Superannuation Solutions revenue expected to see
short term effects of known client losses and account consolidation
(including the impact from ERF'ing activity and increased operating
costs relating to higher levels of activity)
> AustralianSuper contract renewed
REST contract continues to roll on a monthly basis - long term
contract remains in advanced stages of negotiation
Integration & transformation activities
Integration efficiency target of >£15m for Link Group EMEA is
reaffirmed notwithstanding the sale of CPCS1
European business aligned with Link Group structure, leveraging
group functions and the implementation of more uniform
technologies and processes
Capital management
Divestment of CPCS¹ will reduce the pro-forma leverage of
business to lower end of the guidance range
Board will consider both growth opportunities and capital
management initiatives
1.
All regulatory approvals received. Sale expected to complete on 28 June 2019.
2.
Pro forma Operating EBITDA excludes CPCS - sale announced January 2019
(completion expected to occur on 28 June 2019).
18 June 2019
Link Group Investor Presentation & Strategy Update
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