Ann: Investor Presentation, page-14

Couple of articles for those interested:

http://www.********.au/2015/08/25/5-reasons-m2-group-ltd-shares-are-a-buy/

Yesterday, shares of telecommunications business M2 Group Ltd (ASX: MTU) finished the day sharply lower amid global market jitters.

However, amongst all the ‘noise’, the owner of Dodo, Primus, Eftel and Commander brands quietly reported a strong set of results to the ASX for its 2015 financial year.

In the year ended 30 June 2015, M2 powered ahead with a number of operational and financial achievements and reinforced my view of its shares being a good buy for the long term.

Here are five reasons to consider an investment in M2 today:

1. Revenue is growing. Year-over-year revenue growth was 9%, totalling $1.12 billion.
2. Profits per share are growing despite acquisitions. One risk when a company grows profits by acquisition is that shareholders lose out on a per-share basis because of extraneous costs associated with the transactions. However, despite making a number of acquisitions M2 grew earnings per share by a healthy 9%, to 40.5 cents.
3. Dividends are growing. As a savvy capital allocator, M2’s management and the board know how to spend the company’s money to the greatest effect. This was again reflected yesterday with the declaration of a fully franked 17 cents per share dividend taking the full year payout to 32 cents – up 23% on 2014.
4. The outlook is very good. In the short run, given the recent acquisition of CallPlus, M2 expect revenue growth of around 25% and profit growth of more than 30%. Longer-term use of telecommunications services locally is also likely to enable the company to continue growing modestly.
5. Shares are not expensive. Following recent share price falls, M2 shares don’t appear overly expensive. While I wouldn’t call them a definitive bargain, if we see any further weakness in price they’ll almost certainly move to the top of my buy list.

http://www.copyright link/street-ta...en-outline-groups-ma-wishlist-20150825-gj7e5w

M2 Group's Geoff Horth and Vaughan Bowen outline group's M&A wishlist

Melbourne-based M2 Group is better known as the company that owns Dodo and iPrimus.

It recently made headlines for losing the battle $1.56 billion battle against TPG Telecom's David Teoh to buy iiNet and become Australia's second-biggest broadband player.

But that doesn't mean the fourth-placed telco is ready to give up the ghost.

On Tuesday its chief executive Geoff Horth and founder Vaughan Bowen ran through a shopping list to a room full of analysts and fund managers over lunch in Sydney's Sofitel Wentworth.

Bowen, who is also head of mergers and acquisitions, spoke of his 2014 play for Lumo Energy. The company was eventually bought by Snowy Hydro for $600 million. His comment that the room would've punished him for bidding a higher amount was met with stern nodding from the crowd.

But looking forward over the next year, he outlined two key areas for acquisitions in both Australia and New Zealand - corporate telco rivals and other energy providers like Lumo.

Some pundits have noted the successful merger of Amcom and Vocus has created a strong new player in corporate telecommunications services with a national infrastructure footprint, which could be of benefit to M2.

Sources close to the company are less enthused, however, citing Vocus' $1.33 billion market capitalisation and the fact that it would force M2 to become an infrastructure player.


Bowen said telco acquisitions would need to be bolt-on plays and said the consumer telecommunications market was now fully-consolidated. He also noted Dodo's recent push into selling car and home insurance and said that it would open a new world for M&A if the venture took off.

The company is keen to use its billing and servicing platforms, which are currently used to supply telco and energy services, for other products with a focus on low-cost consumers.

M2 delivered a solid set of annual results on Monday and forecasts 30-35 per cent net profit growth in the year ahead. But its share price and analyst target prices have still suffered thanks Asian woes and the market's high expectations.

Over the past five days its shares have fallen by 12.67 per cent compared to Telstra's drop of 5.3 per cent and TPG's fall of 1.53 per cent.

Credit Suisse's Bradley Clibborn told clients in a note that tough competition in Victoria during the second half of financial year 2015 had slowed the growth of its energy sales - a point Horth attributed to an unsustainable price slashing by incumbent providers that would soon return to normal.

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