Growth Strategy – Mining Sector• Multiple growth opportunities...

Growth Strategy – Mining Sector
• Multiple growth opportunities in a highly focused sector
• Multiple geographic markets including Australia, South America,
USA, China, Eastern Europe, South Africa and Papua New
Guinea
• Products at different stages of lifecycle (inc. new offerings)
Multiple mining products
- Underground Directional Drilling
- Aboveground Directional Drilling
- Collision Avoidance Systems
- Contractor Management
- Mobile Asset Tracking
- Driver safety performance index
• Significant increase in marketing effort globally with emphasis on
Australia, China, Russia and South America
Business Outlook
• Mining products and services revenues – In Excess of 70% of
group revenues will arise from mining products and services
• Return to Profitability - GPS has achieved an un-audited profit of
$1.95m for Y/E 2006
• Strong Future Profitability - Forecast of $6.11m for Year End
2007 excluding Wadam. Profit Forecast has been upgraded to
$10.25m for the Year End 2007 including Wadam or 1.89 cents
per share on a fully diluted basis
• Further Profit Upgrade – Profit forecast upgraded to $12.3m
NPBT or 2.2 cents per share post the PJ Berriman acquisition
• Cash-Flow Positive -GPS will be strongly cash-flow positive with
group tax losses in excess of $24m
• Key industry sectors -GPS business units trade in the Mining,
Construction, Waste and Asset Management, Defence and
Contract Engineering areas
Business Environment
• Health & Safety-Increased emphasis on health and safety initiatives
being observed from both mining and transport sectors
• Blue Chip Clients-GPS Group clients include BHP, Rio Tinto, Anglo, OK
Tedi mines, major Chinese Coal Bureaus, Boeing, Queensland Rail,
Leica Geosystems, Hitachi Data Systems, TabCorp, Royal Australian
Navy, Army Avionics
• Distribution Synergies- Client cross-over is occurring due to
complimentary product and service range
• Research & Development Benefits-Ability to fast-track product
development increases speed to market
• High Market Entry Costs-Development costs in both time and money are
significant for both Directional drilling market and Collision Avoidance
market
• Succession Planning-Orderly 2-3 year transition for existing owners and
key management for all acquisitions achieved
• Intellectual Property-GPS and AMT both hold significant IP