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 2010 RISING STARS MICROCAP CONFERENCE
Thursday 10 of June 2010 / Level 4– Room 1/ SYDNEY HILTON (488 George St, NSW 2000)

AGENDA

MORNING SESSION

9:00-9:50 h. SILVER CHEF (ASX SIV) Allan English (CEO)

Charles Gregory (COO)

9:50-10:30 h. KONEKT LIMITED (ASX KKT) Serhat Oguz (CEO)

10:30-11:00 h MORNING COFFEE BREAK

11:00-11:40 h CLOVER CORPORATION (ASX CLV) Dr. Ian Brown (CEO)

11:40-12:20 h BIGAIR LIMITED (ASX BGL) Jason Ashton (Co-CEO)

12:20-13:30 h LUNCH BUFFET

AFTERNOON SESSION

13:30-14:10 h. CASH CONVERTERS INTERNATIONAL Ralph Groom (CFO)

(ASX CCV)

14:10-14:50 h. MANACCOM CORPORATION (ASX MNL) Mike Veverka (CEO)

14:50-15:20 h AFTERNOON COFEE BREAK

15:20-16:00 h PATTIES FOODS LTD (ASX PFL) Greg Bourke (CEO)

16:00-16:40 h XRF SCIENTIFIC LIMITED (ASX XRF) Terry Sweet (CEO)

.

www.microequities.com.au
 2010 RISING STARS MICROCAP CONFERENCE

PROFILES

EVENT ORGANISER

Microequities is a specialised Microcap asset manager. Established in 2005 as an independent

investment research house devoted to Microcaps. Microequities expanded into funds
management in early 2009 by launching our flagship Deep Value Microcap Fund.

Why us? Microequities' investment managers and analysts operate uniquely within the Microcap
asset class. This asset class offers investors access to Australian companies with an attractive
growth profile. However, it also necessitates a systematic and process driven research approach
to investing. We are uniquely positioned within the Microcap asset class and posses research
capabilities, deep knowledge and experience within the Microcap space. Our value-growth
approach, coupled with a long term investment strategy, provides us with an investment ethos
that is particularly well suited to Microcap investing.

The Deep Value Microcap Fund: Launched in March 2009, is a high conviction, value growth
Fund that seeks to identify and invest in growing, profitable undervalued companies. The Fund
does not have a broad based approach to investment. It maintains concentrated holdings in what
we consider the most compelling companies within the Microcap asset class with the most
attractive risk/reward metrics. The fund has returned 83% since inception (net of fees) compared
to 43.12% for the All Ords Index.

Carlos Gil (CIO) / cgil@microequities.com.au / +61 2 9231 6169

EVENT SPONSOR

Fortbridge Consulting is a media and investor relations firm representing publicly listed
companies. Fortbridge works with their clients to build corporate reputation and promote value.

Fortbridge investor communications programs target a range of stakeholders, including

shareholders, institutional investors and funds, as well as the financial media, in the markets in
which their clients operate.

With access to up-to-date research and investor contact information for financial centers around
the world, Fortbridge is able to research and maintain meaningful sector specific investor lists for
their clients. Using this information, Fortbridge target relevant institutional investors and funds to
engage their support for their clients’ IPOs, institutional placements, capital raisings, SPPs or
on-market trades.

Fortbridge consultants in Sydney, Perth, London Toronto and Santiago have a track-record in
working with clients to build shareholders value and to grow business; to communicate the value
of new developments and to manage significant issues that impact reputation.

Bill Kemmery (Managing Director) / bill.kemmery@fortbridge.com / +61 2 9331 0655

2010 Rising Stars
Microcap Conference

MANACCOM CORPORATION
ASX‐ MNL
Presented by Mike Veverka (CEO)

SYDNEY HILTON, 10 of June 2010

The Business
Lotteries on the Internet

• 10 years experience
• Strong growth over the past 5 years
• Contracts until December 2013
• 2% of $3.6 billion market in
Australia
• $70 billion lottery market in USA
and Canada
• $110 billion lottery market in Europe
 Lottery
Revenue
$70,000,000
Lottery results on
$60,000,000
$ , ,
A
Australia’s
stralia’s largest
$50,000,000 website.
$40,000,000

$30,000,000

$20,000,000 Signed 5 year

$10,000,000 exclusive deal
with NSW Lotteries
$0 until Dec 2013
FY 05 FY 06 FY 07 FY 08 FY 09 FY 10

5 year agreement with Tattersall’s until 2013.

Lottery
Profit
$6,000,000
Dividends:
$5,000,000
FY08 1.0c
$4,000,000 FY09 1.5c
$3,000,000

$2,000,000

$1,000,000

$0
FY 07 FY 08 FY 09 FY 10
‐$1,000,000

Lottery profit before tax

contributed to the group.
 FY 2010
Restructuring of
Software Distribution Division
2007 Acquired Software Distribution Business for $5.1 million.
Appointed Ian Mackay as director.

2008
June Distribution business contributes a profit of $2.0 million.
Oct Acquires software business for $3.45 million.

2009
Mayy Signs
g agreement
g with McAfee to replace
p Trend Micro.
June Distribution business contributes a profit of $1.8 million.
Nov Ian Mackay resigns.
Dec HY loss of $0.5 million.

2010
April Restructuring complete. New McAfee agreement.
$9.5 million write down.

Group Performance
FY08 FY09 FY10
Revenue (mil) $37 $59 $70 to $75
NPAT Trading (mil) $1.7 $3.0 $2.0 to $2.5
Write down (mil) ‐ ‐ ($9.5)
NPAT Reported (mil) $1.7 $3.0 ($7.0) to ($7.5)
Dividend 1.0c 1.5c 0.5c
 Balance Sheet
31 Dec 09

Current Assets $12.9 million

Non-current Assets 14.9

Total Assets 27.8

Current Liabilities 9.0

Non-current Liabilities 3.8

Total Liabilities 12.8

NET ASSETS 15.0

Share Price Ian Mackay resigns

and begins selling
0.60

0.50
Shares on issue:
50c = 43 million
$21 mil 0.40
Market Cap
Employee Options:
0.30
2.90 mil at 50c
0.20 1.35 mil at 70c
4.25 total
0.10

0.00
Major Shareholders:
1. Mike Veverka 21%
2. Ian Mackay 19%

All others under 10%

 Future Growth
• 10 years to produce an online lottery business model based on the well known
Agency model that lottery operators understand.
• Built up assets:
• Software and systems
• Website and customer traffic
• Customer database

• Proven in the Australian market ($3.6 billion).

• Expand to the USA ($60 billion), Canada ($10 billion) and Europe ($110 billion).
• Agency business model is competitive with software systems sale model.
• Barriers to competition:
• Software and Systems
• Website and Customer Traffic
• Customer Database
• Government Contract

Board

Chairman:
David Barwick

CEO & Executive Director:
Mike Veverka

Non‐executive Director:
Bill Lyne
 Summary

• Strong cash flow from online lottery business

• 3rd year
ear of dividends
di idends
• Software distribution business restructured
• Strong growth prospects

Contact Details:

Mike Veverka - CEO

Phone: 07 3831 3705
Email: mikeveverka@manaccom.com