INTRODUCING ALTRON MTETO NYATI CEDRIC MILLER GROUP CHIEF EXECUTIVE - - PowerPoint PPT Presentation

INTRODUCING ALTRON

MTETO NYATI

GROUP CHIEF EXECUTIVE

CEDRIC MILLER

CHIEF FINANCIAL OFFICER

About South Africa – Global Competitiveness Report 2018

6

Founded in

1965

Over

8000

Employees globally Operating in Continents Africa | Asia | Europe | Australia

4

Enterprise customers

25K

Over Strategic partners

15

Africa’s largest Mission Critical Communications network ATMs serviced per month

13,5K

Netstar vehicle subscribers

700K

Transactions per annum in retail and microfinance

76bn

Largest Xerox global partner GPs on Altron Switch system

12K

Facts and Figures – Altron Group

3

Ticker code: AEL.SJ

Board Members

MIKE LEEMING Joined the Altron board in 2002 ANTONY BALL Joined the Altron board in 2017 BERENICE FRANCIS Joined the Altron board in 2018 BRETT DAWSON Joined the Altron board in 2017 DR PHUMLA MNGANGA Joined the Altron board in 2019 ROBERT VENTER Joined the Altron board in 1997 MTETO NYATI Joined the Altron board in 2017 GRANT GELINK Joined the Altron board in 2012 STEWART VAN GRAAN Joined the Altron board in 2017 SAMUEL SITHOLE Joined the Altron board in 2017

4

MTETO NYATI Group Chief Executive ANDREW HOLDEN Group Chief Operations Officer DOLORES MASHISHI Group Executive: Human Capital COLLIN GOVENDER Group Executive: Shared Services ZIPPORAH MAUBANE Group Executive: Marketing CHRIS POTGIETER Group Executive: Legal

Group Executives

3

CEDRIC MILLER Group Chief Financial Officer SAYEEDA KHAN Group Executive: Risk and Compliance

6

CHAD BAKER MD: Altron Bytes Managed Solutions

GRANT VAN DER WAL

MD: Altron Karabina IKE DUBE MD: Altron Rest of Africa JOHAN BASSON MD: Altron Bytes Document Solutions IGSHAAN SOULES MD: Altron Bytes People Solutions JOHAN GELLATLY MD: Altron Bytes Secure Transaction Solutions LESLIE MOODLEY MD: Altron Bytes Systems Integration NEIL MURPHY MD: Altron Bytes UK PIERRE BRUWER MD: Netstar

Managing Directors

BRETT NASH MD: Altron Nexus

One Altron Strategy

OUR PURPOSE Delivering innovation that matters ONE GOAL 2-5-1 Double (2) EBITDA in 5 years by: ⎻ Being a great place to work for all ⎻ Delivering leading returns ⎻ Providing exceptional customer service ⎻ Doing good business while doing good ONE SET OF VALUES ⎻ Openness, honesty and integrity ⎻ Collaborate across teams ⎻ Embrace diversity and inclusion ⎻ Get things done and enjoy doing it ⎻ Leading returns for shareholders ⎻ Passionate about employees, customers, partners and communities OUR VISION Be the leading technology solutions provider OUR SET OF STRATEGIC PRIORITIES ⎻ Revenue growth ⎻ Improving profitability ⎻ Transform the customer experience ⎻ Employee excellence

SAFETY AND SECURITY SKILLS DEVELOPMENT FINANCIAL INCLUSION HEALTHCARE MANAGEMENT

SOCIETAL IMPACT

GROWTH AREAS Cloud Services IOT Data Analytics Security OUR SEGMENTS

Smart IOT Managed Services Digital Transformation Fintech & Healthtech

Our strategy roadmap

2017 2019 2021

Positioning for Growth Delivering Growth Accelerated Growth

Revenue Growth Employee Excellence Transform Customer Experience Improve Profitability

a) Sales effectiveness b) Influence influencers c) Innovation drive d) Bolt-on acquisitions a) Sell remaining non core b) Re-align core assets c) HO restructure & move a) Overhaul customer touch points b) Brand Repositioning c) New Altron Head Office a) One Altron (purpose, values etc) b) Sales enablement c) O365 and Yammer a) Systematic Africa growth b) Acquisitions high value services c) Cross selling inherent d) Partnerships – growth areas a) Shared Services & CoE b) Lean mgmt structures c) Public cloud mainstream d) Service automation a) Strong technology brand b) Lead with innovation c) Key account mgmt d) e-commerce key clients a) Diverse mgmt team b) Mobile workforce c) Talent management d) Facilitate staff giving a) Off shore growth b) Group wide solutions c) Healthtech & Fintech d) IT Security leadership a) Cost leadership b) Digital workplace a) Superior customer experience b) Reputation for innovation c) Stakeholder Advocacy a) Diversity inherent b) Employees as brand ambassadors

Our Businesses

9

Digital Transformation Bytes Technology UK Altron Nexus

Leading smart city solutions and broadband infrastructure.

1460 sites

Gauteng Broadband Network

130

business partners in SA

71 708

incidents managed 24/7 at the National Network Operations Centre

Software & Cloud specialists in commercial and Public sector. Licensing, software asset management, security and cloud optimisation. Microsoft’s #1 UK Partner.

Altron Karabina

We specialise in Cloud Computing and Data Analytics and helping customers to digitally transform their businesses through Microsoft technologies.

Over 300

customers

70

Local & International Industry Awards

Microsoft

Gold Partner

Altron Bytes Systems Integration

We are an end-to-end ICT service provider of consulting, implementation and outsourcing services.

30 000

service desk calls managed per month

Certified

Data Cloud provider

• n AWS

Providing network platform to two Metro’s – enabling Smart City solutions and Citizen Services

B-BBEEE Level: 1 B-BBEEE Level: 2

Netstar

Pioneered vehicle recovery technology, provides insurance telematics and fleet management and data analytics.

180%

growth in net connections

Insurance Telematics

fast report device

Vehicle Jamming resistant

solution

Our Businesses

10

Healthtech & Fintech Smart IOT Altron Bytes Secure Transaction Solutions

Provides HealthTech, FinTech and CyberTech solutions.

+R1 billion

Collections/mth

+6.7 transactions/mth Own IP

• f solutions

B-BBEEE Level:4 B-BBEEE Level: 4

Our Businesses

11

Managed Services Altron Bytes People Solutions

The largest South African-owned business Process Outsourcing (BPO) solutions provider

100 000

student days delivered annually

+12 000

People received workplace experience

+2.4

calls managed monthly

Altron Bytes Document Solutions Altron Bytes Managed Solutions

Largest Xerox partner providing integrated print managed services. Hardware and software technologies in financial, retail and petroleum

• sectors. Partners with NCR, Dell, HP and Lenovo.

50%

market share high-end printers Largest Xerox distributor in the world

Stockholding

188 locations 788 items, 526 147 units

259 949

retail devices

+13 500

ATMs serviced per month

3

DELL devices

B-BBEEE Level: 2 B-BBEEE Level: 3 B-BBEEE Level: 3

Our Businesses

59% 87% 45% 73% 40% 26% 52% 49% 74% 86% 64% Total Altron Karabina Altron Rest of Africa Altron Bytes People Solutions Altron Bytes Document Solutions Altron Nexus Altron Bytes Managed Solutions Altron Bytes Systems Integration Altron Bytes Secure Transaction Solutions Altron Netstar Bytes UK

Annuity %

Strategic Partners

13

Financial focus areas

GROWTH AND RESILIENCE PORTFOLIO MIX ONE ALTRON IN CONTEXT OF CUSTOMER CENTRICITY WORKING CAPITAL MANAGEMENT OPTIMISATION OF CAPITAL STRUCTURE EFFICIENT CAPITAL ALLOCATION

Improving profitability

18

Non-core disposals materially completed

Discontinued Status Disposal date Proceeds realised R’ million Proceeds deferred R’ million Autopage Sale concluded 12-Feb-16 1 300

• Aberdare Cables

Sale concluded 30-Jun-16 1022

• IST Holdings Property

Sale concluded 15-Dec-16 107

• Powertech Batteries

Sale concluded 01-Jul-17 334

• Powertech Systems

Sale concluded 01-Aug-17 20

• Swanib Cables

Sale concluded 01-Sep-17 56

• Switchgear / Quadpro

Sale concluded 31-Oct-17 10

• Crabtree

Sale concluded 01-Feb-18 39

• Powertech Transformers

Sale concluded 31-Jul-18 139 150 Powertech Property Sale concluded 28-Sep-17 35

• Altech Multimedia/UEC

Sale concluded 31-Jan-19 35 3 CBI Telecom Cable In progress In progress

• 3 097

153

16

Strategic acquisitions successfully integrated

Operation Contribution to revenue Contribution to EBITDA Phoenix UK (Cloud) 2019 R2 037 million R95 million 2018 R843 million R25 million EZY2C Australia (IoT) 2019 R68 million R24 million 2018 R52 million R23 million Karabina RSA (Data Analytics & Cloud) 2019 R105 million R20 million

17

Financial overview – progress on key metrics

2016 2019 Revenue (R’million) 26 592 20 354 Continuing 14 357 19 152 Discontinued 12 235 1 202 EBITDA (R’million) 376 1 661 Continuing 888 1 607 Discontinued (512) 54 Net debt (R’million) 3 435 1 623 Share price (R) 5.30 18.80

• Strong organic revenue and EBITDA growth assisted by strategic acquisitions
• Significant debt reduction at more favourable funding costs

14

Share price performance

• 50%

0% 50% 100% 150% 200% 250% 300%

• 5%

0% 5% 10% 15% 20% 25% 30% 28-Feb-2016 28-Feb-2017 28-Feb-2018 28-Feb-2019

Share price performance vs ALSI

ALSI Altron Share price information obtained from Thomson Reuters

Double digit EBITDA growth

Extend our Microsoft Capability to include Licensing Solution Provider and geographic expansion Margin Expansion in Altron Bytes Systems Integration Increase wallet share in top 44 accounts through cross and upselling Increase focus on Automotive Sector in Netstar South Africa Scale operations in Netstar India

FY20 Outlook

19

THANK YOU

Appendices

Shareholder analysis

Top 20 shareholders (by group) %holding Rank Manager Investment Style Holding 28-Jun-19 31-May-19 1 Value Capital Partners (ZA) Speciality 83 780 172 20.98 20.98 2 Coronation Asset Management (Pty) Ltd (ZA) Value 81 478 585 20.40 20.42 3 Biltron (PTY) Limited (ZA) Unclassified 56 192 243 14.07 14.07 4 Sanlam Investment Management (Group) 39 213 032 9.82 10.05 5 Kagiso Asset Management (Pty) Ltd (ZA) Value 17 983 663 4.50 4.51 6 Old Mutual Ltd (Group) 11 779 786 2.95 2.85 7 Venter Dr W P (ZA) Retail 8 740 419 2.19 2.19 8 RMB Morgan Stanley (Pty) Ltd (ZA) Trading Position 6 766 483 1.69 1.65 9 Investec Asset Management (Group) 5 969 199 1.49 1.49 10 The Vanguard Group Inc (Group) 5 795 193 1.45 1.43 11 PIC (ZA) Index 5 274 600 1.32 1.32 12 Nedgroup Private Wealth (Pty) Ltd (ZA) GARP 4 217 961 1.06 1.06 13 Sanlam Capital Markets (ZA) Trading Position 3 845 330 0.96 0.46 14 Prudential Investment Managers (ZA) Value 3 726 690 0.93 0.90 15 Altron Finance (Pty) Limited (ZA) Corporate 3 049 544 0.76 0.76 16 Dawson B W (ZA) Retail 2 721 088 0.68 0.68 17 Dimensional Fund Advisors (Group) 2 102 395 0.53 0.53 18 Mazi Asset Management (Pty) Ltd (ZA) Hedge Fund 2 019 962 0.51 0.31 19 GlobeFlex Capital LP (US) Growth 1 976 623 0.49 0.49 20 Ellerine Brothers (Pty) Ltd (ZA) Retail 1 743 219 0.44 0.44

21

Operating Company Public % Private % Altron Netstar South Africa 4 96 Altron Karabina 100 Altron Bytes Managed solutions 2 98 Altron Bytes Secure Transaction Solutions 2 98 Altron Arrow 1 99 Altron Nexus 78 22 Altron Bytes People Solutions 1 99 Altron Bytes Systems Integration 15 85 Altron Bytes Document Solutions 9 91 Total Altron South Africa 17 83

23

Public vs Private Revenue Contribution in South Africa

22

Key Customers

PUBLIC FINANCE

24

RETAIL AGRICULTURE

Key Customers

HEALTHCARE TELECOMMUNICATIONS MINING

25

INSURANCE TRANSPORT & FLEET MANAGEMENT MULTIMEDIA

Share price & relative performance vs. peers*

20

• 20.0%
• 10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 1/2/19 2/2/19 3/2/19 4/2/19 5/2/19 6/2/19 7/2/19

Altron share price vs ALSI & JSE Technology sector

ALSI Altron JSE Technology Sector