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Bluestone Global LimitedInvestor BriefingASX:BUE

Stephen Sasse – CEOAndrew Milln - CFO

Date: May 2014

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Disclaimer

All persons should seek appropriate professional investment advice in reviewing or consideringthis presentation and all other information with respect to Bluestone Global Limited (Bluestone,BUE or the Company), its business, financial performance and operations. Neither theprovision of this presentation nor the information contained therein, or any associatedcommunication to any person should be taken as constituting financial advice regarding thepurchase or dealing of shares in Bluestone. This presentation does not purport to provide allinformation that might reasonably be required to complete a detailed assessment of Bluestone.Individuals should conduct their own investigation of investment and financial parametersrelevant to their personal requirements for investment purposes.

The presentation may contain forward looking statements regarding the intentions of theCompany, and these will be affected by many other factors beyond the control of the Company.Forward-looking statements include, but are not limited to, statements concerning Bluestone’splanned strategies and programs and other statements that are not historical facts. AlthoughBluestone believes that its expectations reflected in these forward-looking statements arereasonable, such statements involve risks and uncertainties and no assurance can be giventhat actual results will be consistent with these forward-looking statements

The presentation must be considered in the light of these uncertainties and investments inBluestone should be considered as speculative in nature. The presentation is not a prospectusor similar disclosure document and does not constitute an invitation to apply for shares.

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Background

Bluestone History

rapid growth by acquisition but no integration

pursuit of revenue not margin

uncontrolled costs

poor working capital management

multiplicity of systems, some legacy

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Achievements to Date

Corporate Overhead • reduced by $2,500K pa

International

Businesses Closed • both the offshore and onshore businesses closed saving $900K pa

ResCo Divestment• non-core business with inadequate scale

• sale process underway and due to complete FY14

Margin Growth • systematic elimination of low margin contracts and clients

• strategic shift to contingent workforce solutions not ‘labour hire’

Flattened, Regional

Management Structure • one complete layer removed

• Branch/Region focus – close to candidates and clients

IT & Digital Strategy

• new ‘front end’ platform improves cost base and candidate/client experience

• exclusive rights to Provade VMS platform enabling MSP strategy

• new telephony and data infrastructure saving $300K and enabling faster

communications

Workers’ Comp • WHS and workers’ compensation initiatives to save $2,000K

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FY14/15 Normalisation and Initiatives

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F15-F17 Normalised Earnings Outlook

Normalisation

• ResCo Services divestment

• Closure of Ultimate Skills and Migration Services

• Reduction of Corporate Overhead by over 50%

• Workers Compensation savings of $2.0m pa

• Implementation of cohesive CRM & Candidate ERP

Key Outlook Assumptions

• Revenue growth from:

– introduction of Bluestone Advantage which adds independent contractor back office administration capacity;

– provision of managed services and VMS deployment to allow full contingent labour outsourcing;

– additional products and deployment models including permanent placement, outsourcing and training / JSA fees

• Higher margins from mix change to SME / Services sectors and managed services offerings.

• Cost reductions and ability to scale from new technology.

• Flat and lean overhead structure that allows scalability.

• Reduced financing costs from renegotiated factoring facilities.

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Restructuring and Funding

current Rights Issue in place (no longer underwritten)

further capital will be required

a 15% Placement suitably priced

an Entitlements Issue to all shareholders to expand shareholder base

a short dated ‘in the money’ Option Issue to increase tradeable securities

a further Rights Issue

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Proforma Balance Sheet –Post Current Rights Issue

• Impact of tax office compromise was a net $22.6m adjustment to Net Assets recorded December 2013.

• Rights Issue and termination of the Springsure Put Option put the balance sheet into a net asset position.

• Significant improvement in Current ratio on termination of put option.

• Intangible assets have been subject to audit sign off as at 31 December 2013. Relates entirely to Labour Hire segment.

• Significant and ongoing focus on cash flow and debtor days together with eliminating funding disapprovals from debtor financier.

• Alternative debtor funding options in progress to reduce cost of funding

• Assumes Rights Issue fully subscribed, less costs

• April position unaudited and unreviewed

A$'000 30/04/2014

(unreviewed)

Rights Issue Option Issue

Cost

Termination of

Put Option

Post

Restructure

ASSETS

Current assets

Cash at bank 1,304 3,450 4,754

Trade and other receivables 24,887 24,887

Inventories 1,088 1,088

Prepayments and other current assets 2,985 2,985

Total current assets 30,264 3,450 0 0 33,714

Non-current assetsProperty, plant and equipment 6,196 6,196

Intangible assets 10,293 10,293

Other assets 194 194

Total non-current assets 16,683 0 0 0 16,683

Total assets 46,947 3,450 0 0 50,397

LIABILITIES

Current liabilities

Trade and other payables 18,871 18,871

Interest bearing liabilities 17,439 17,439

Provisions 1,980 1,980

Other financial liabilities 9,000 (9,000) 0

Total current liabilities 47,290 0 0 (9,000) 38,290

0

Non-current liabilities 0

Interest bearing liabilities 5,134 5,134

Provisions 741 741

Total non-current liabilities 5,875 0 0 0 5,875

Total liabilities 53,165 0 0 (9,000) 44,165

NET ASSETS (6,218) 3,450 0 9,000 6,232

EQUITY

Contributed equity 91,922 3,450 95,372

Reserves 1,640 3,100 4,740

Accumulated Losses (99,780) (3,100) 9,000 (93,880)

Total equity (6,218) 3,450 0 9,000 6,232

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Rejuvenated Board

Chairman

Andrew Plympton

NED

Alan Fisher

NED

Tony Leibowitz

CEO/ED

Stephen Sasse

experienced and credible turnaround pedigree track record

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one layer removed fully accountable elimination of non

value-add functions regional/branch focus

Executive Structure

Stephen SasseCEO

Mark BartoloGM Southern &Shared Services

Joseph Di MauroLegal Counsel

Emily BazzardGM Northern

Ross PeoplesCIO

Cheryl HillGM NSW

Andrew MillnCFO

Carmel NorrisGM WA

Darren WinmillGM SEQ

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Locations

national network of

branch offices

enables F2F

relationships and

assessments

effectively service

national businesses

key component of SME

strategy

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Revised Work Health & Safety and Quality (WHSQ) Management System:

facilitation of horizontal consultation duties

Class One Incident identification and reporting

• identify latent risks on client locations

• facilitates improved cooperation and coordination

Officers’ due diligence reporting

supports enhanced workers’ compensation costs reducing cost of claims and premium

Safety – Code Blue

NSW – Retro Paid Loss Workers’ Compensation Policy approved for F15 $1,200K savingVIC – rationalisation of employing entities saving $300K in premium in F15WA – move to ‘burning cost’ policy saving $200K in F15Other States to produce F15 savings $300K

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Designed to capitalise on opportunities to up-skill Job Services Australia (JSA) candidates and make “Bluestone Client Ready”

Collaboration between Bluestone, JSA, Jobseeker & RTO

Bluestone partnership with national JSA’s & RTO’s

Candidates currently come from one of two streams

Apply directly for job – Bluestone either deploy to client or redirect to RTO for up-skilling prior to deployment to client.

JSA jobseeker stream – 3 day pre-assessment and workplace orientation process to determine “Bluestone Client readiness” (Fee for service invoiced to JSA provider)

F15 Revenue = $750K

JSA fees and wage subsidies

RTO referral fees

Bluestone Pathway to Employment Program

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Margin Improvements are Available

The business has traditionally sought revenue with insufficient regard to margin:

failure to recognise true cost of delivery

weighting toward larger clients compresses gross margin

insufficient emphasis on delivery of solutions

0% 5% 10% 15% 20%

BUE FY14 YTD

RIB FY14 YTD

GM/Gross Profit

Industry Average

May 14 14

Bluestone Average

1% GM = $1,760K EBITDA

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Margin Improvements

SMEs the principal target for contingent labour deployment

delivery of solutions/managed services

0% 10% 20% 30% 40%

1 - 9 Employees

10 - 49 Employees

50 - 99 Employees

100 - 499 Employees

>500 Employees75% of the Contingent Workforce are deployed with employers who have less than 500 direct hires.

46% of the Contingent Workforce are deployed with employers who have less than 100 direct hires.

Source: CIETT Economic Report 2014

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Margin Improvements

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

Agriculture Forestry & Fishing Mining Manufacturing Services

Large SME

Source: ABS Cat. 8155.0

The Australian Labour Market

Growth is in Services

Sector SMEs

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Margin Improvements

Additional Products and Services

• outplacement

• permanent placements

• training and VOC

• independent contractor and partnership administration

• workplace health and safety

Managed Services

• hospitality

• aged care

• RPO/MSP

Industrial Relations Solutions

• non-traditional deployments

• dedicated EAs

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Bluestone Advantage

Commenced operations 19 May 2014 and will acquire FWS business effective 1 June 2014

April 14: 189 contractors billing $2,300K

GM 3% - 5%

overheads cut

insurances remarketed

tax agent partnerships established

BA capacity allows us to offer a complete contractor contingent workforce solutionSingle invoice, integrated sourcing, client analytics

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Technology

New CRM / Candidate Mgt. System

Automates end to end process of Job Order through to Payment

Sophisticated Awards engine that will interpret over 800 different awards

Front end CRM to help consultantsmanage client pipelines

Candidate portal that allows online time capture, access to payslips and profiles

Client portal allows online access to job schedule, timesheets and invoices

Mobile Apps to help capture 85% plus time sheets on-line

Real time business analytics to help drive better / faster decisions

Integrated CRM system that eliminates manual processes and paper based documents and reduces overall FTE

support staff

Net Project Benefits

Year 1 $615,000

Year 2 $695,000

Year 3 $695,000

Best in Class Business Intelligent Reporting

Real Time

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Technology

Outsourced infrastructure

services to Mac Tel

Replaced redundant systems

Lowered overall costs by $250k .pa.

Implementing Microsoft Lync for

Telephony

VOIP Technology

Integrated to outlook and mobile

Video, Voice, IM

Upgrading computer hardware

to support new technologies

Supports mobile access

Outsourced Services

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Technology

Offering Tailored Managed Services

Enabled by Leading Technology

VMS/SCIBOX

Supported by our Service Teams to deliver program outcomes

RPO MVS MSPGross Margins of 60-

70%

Upsell into other categories to expand

footprint

Delivers Program benefits and

compliance savings

5-20%

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Technology

In addition to the technology updates for the core contingent labour business, Bluestone has the exclusive resellers license for Asia Pacific Region for both Provade VMS:• best in class Cloud based Vendor Management System (VMS) helps clients and managed

service providers automate/streamline a manual fragmented process, reduce operational risk and provide COMPLETE visibility across the entire Request to Pay process supported by real time business intelligence.

and SCIBOX• next generation technology platform for Contingent Workforce that supports advanced

digital media, enhanced VMS end 2 end functionality, community/marketplaces and latest technology around mobility and business intelligence.

These form additional lines of revenue in their own right(s), but also allow Bluestone to provide fully integrated, IT enabled MSP solutions

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May 14

Technology

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Opportunities Management

Sales Pipeline

Contracts Management

Reporting

Community Talent Pool Capability

Job Order Management

KPI’s and reporting

Live news feeds. Leads / Campaigns

Digital Profiles and Job History

Auto Matching to Jobs

Reverse Marketing

Mobile + online portal

SCIBOX Community Networks

Marketplace fees and Commissions

Order Crowd Sourcing

Chat and support forums – Webinar

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new CRM/Candidate Mgt. system

upgraded communications & hardware to support technology shift

embedding Digital Strategy that leverages Social Media and latest technology to build brand awareness, scale and revenue

develop our IP and brand awareness

expanding our service offering beyond traditional Labour Hire to include:

Managed Services for Contingent Workforce

Enabled by “Best of Breed” technology, and

Providing “One Stop Shop”

front of mind for clients and candidates

Technology Summary

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Digital Strategy

•Google and YouTube now linked to maximise SEO

•Deliver regular content via Video/Webinar

•Oneload.com will push content to 30 major sites

•Use Automated Engagement Sequences

•Video delivers more traffic, positioning and SEO

•Creating Candidate value and incremental revenue

•Offer value adds via Joint Venture Partners

• Financial Planning & Tax Returns

• Mortgages

• Training & Development

• Deliver Content via Video/Webinars

• Special education forums

• Use market aggregators for job posting i.e. Adzuna

•Selective use of Job Boards

•Develop own talent pool via communities

•Website that supports Mobile, SEO and is interactive and user friendly

•Blogs , tweets and feedback

•Hot Candidates (reverse marketing)

•Using social media ( Facebook/Linked In)

•Develops specialist talent pools i.e. Project Engineers/Java Developers

•Become Industry Experts – Candidates will come to BGL

•Deliver Content via Webinar/Video

•Chat forums/ Networking

•Clients also benefit as BGL will have best talent

•Contractor Care services

•Enabled by SCIBOX Marketplace

Creating Talent

Communities

Maximise Reach

Front of Mind

Strategy

Candidate Care

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The Future

•low overhead

•technology enabled productivity (front and back office) and consultant performance measurement

•scalable Low Cost

•SME ‘solutions’

•managed services – acceptance of delivery risk

•additional products – outplacement, permanent placement, training, JSA

Higher Margins

•Bluestone Advantage adds independent contractor back office administration capacity – allows for complete contingent labour outsourcing

•Provade enables VMS solution (procure to pay)

Managed Service Provider

•digital candidate attraction, retention and communications – social media platforms

•sourcing of roles and projects for high end ICs

•open to other agencies

•reverse marketing

Digital Strategy

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