2018 Achieve more. BUSI BU SINESS OVERVIEW Achieve more. 2 - PowerPoint PPT Presentation

INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2018 Achieve more.

BUSI BU SINESS OVERVIEW Achieve more. 2

ABOUT ADAPT IT IT 1000+ employees 10 000 customers 53 Countries Africa and worldwide JSE listed ADI Software and Services Provider Level 2 B-BBEE contributor National offices: Johannesburg, Durban, Cape Town International offices: Mauritius, Botswana, Kenya, Ireland, Australia and New Zealand Strategic Partners: Microsoft | Oracle | IBM | SAP Achieve more. 3

DIR IRECTORATE CRAIG BONGIWE TIFFANY NOMBALI CATHERINE OLIVER SIBUSISO (SBU) CHAMBERS NTULI DUNSDON FORTUIN MBAMBO KOFFMAN SHABALALA BA, LLB, LLM MBA BCom CA (SA) CA (SA) CFA, PDM, BCom CA (SA) Admitted Attorney AMP (Harvard) Independent Independent Independent Independent Chief Executive Commercial Chief Financial Non-Executive Non-Executive Non-Executive Non-Executive Officer Director Officer Chairman Director Director Director Appointed Appointed Appointed Appointed Appointed Appointed Appointed 9 February 2015 8 February 2013 18 August 2016 3 May 2011 27 May 2008 5 December 2007 18 April 2002 Achieve more. 4

10 YEARS OF GROWTH MILESTONES OCT 2007 JAN 2016 InfoWave merges with Adapt IT creating a software Entry into the Financial Services Sector through business. the acquisition of CQS. 2014 OCT 2008 Adapt IT specialising in Manufacturing software, JUL 2017 Micros South Africa, a leader in Hospitality 5 th fastest growing African Tech moves to the main board of the JSE. Software, is acquired by Adapt IT. Company AUG 2009 Education specialisation through the acquisition of JUN 2018 Acquired LGR Telecommunications, provision and Integrated Tertiary Software (ITS) – a leader in tertiary management of end-to-end data warehouse and 2017 education ERP systems expanding the company into business intelligence systems with presence in Europe and Australasia. Africa and Australia. R1 billion annualised turnover OCT 2012 The Swicon360 acquisition extends the manufacturing NOV 2018 Adapt IT acquires Conor Group, a specialist in offering with SAP Human Capital Management high-performance telco and mobile financial 2017 Business Process Outsourcing. service solutions to extend the Telecoms division. 2 nd in the Sunday Times Top 100 OCT 2013 Energy sector entry through the Aquilon acquisition companies expands Adapt IT into Africa’s growing energy, sector, JAN 2019 Adapt IT acquires Wisenet Group, a provider of serving major oil companies. Software as a Service Learning Relationship 2020 Management System in the Australasian SEP 2014 Added Telecommunications intelligence education sector. management software through the AspiviaUnison R3 billion annualised turnover target acquisition. Achieve more. 5

SECTOR FOCUS FINANCIAL COMMUNICATIONS EDUCATION SERVICES MANUFACTURING ENERGY HOSPITALITY Achieve more. 6

EDUCATION MANUFACTURING FLAGSHIP SOFTWARE FLAGSHIP SOFTWARE • • Integrated Tertiary Software – ITS Integrator Sugar Industry ERP solution – Tranquillity • • CELCAT Timetabling Weighbridge and Laboratory Testing Solution – CaneLAB • • ICAS Safety Health Environment and Quality Solution (SHEQ) – OpSUITE • • Wise.NET EasyRoster SERVICES SERVICES • • ITS Integrator support Business advisory • • Implementation, customisation, development and integration Software development, implementations, systems integration • • Automated exam and class timetabling Sustainability Reporting • Training and consulting • Learning Relationship Management system CUSTOMERS CUSTOMERS Achieve more. 7

FINANCIAL SERVICES ENERGY FLAGSHIP SOFTWARE FLAGSHIP SOFTWARE • • CaseWare SAP™ Oil -in-One • • TaxWare FUEL-FACS+ Terminal Automation Software SERVICES • Probe Audit Working Papers • Audit International SERVICES • Supply Chain and Operational advisory • SERVICES Technology and ICT advisory • • Audit Industry Solution development, deployment and integration • • Practice Management SAP™ IS -OIL Services • • Financial reporting SAP™ Services and Support • • Tax and Secretarial solutions Business Process Outsourcing (BPO) CUSTOMERS CUSTOMERS Achieve more. 8

COMMUNICATIONS HOSPITALITY FLAGSHIP SOFTWARE FLAGSHIP SOFTWARE • • Technology Lifecycle Management (TLM) Oracle Hospitality Simphony POS • • Corporate Carrier Self Service (CCSS) platform Oracle Hospitality RES POS • • CDR Live Oracle Hospitality Opera Property Management • v.Services SERVICES • SERVICES Consulting • • Software as a Service (SaaS) Project Management • • Telecommunication industry benchmarking Implementation Services • • Telecommunication and technology expense management (TEM) best Hosting and Database Services • practice Application Services • Customer experience (CX) and self-service advisory • Enterprise data services and connectivity CUSTOMERS CUSTOMERS Achieve more. 9

COMMUNICATIONS ACQUISITION • Acquired 31 December 2018 • R80 million purchase consideration • EV/EBITDA: 3x • P/E: 5x • Provides: • High-performance telecommunications solutions • Mobile financial service solutions From the left: Muzi Tshabalala, Jacques Oosthuizen, Chris Breytenbach, Tiffany Dunsdon, Duncan de Klerk, Stefan van Zyl and Edwin van Zyl Achieve more. 10

EDUCATION ACQUISITION • Signed 8 January 2019 • R53.4 million purchase consideration • EV/EBITDA: 5x • P/E: 7x • Provides: • Software as a Service (“SaaS”) • Learning Relationship Management System (Student Lifecycle Management and Compliance) Achieve more. 11

TRANSFORMATION LEVEL 2 B-BBEE CONTRIBUTOR TARGET SCORECARD 2018 2017 SCORE Ownership 18,00 21,07​ 25 Management & Control 18,00 14,66​ 23 Skills Development 16,92 17,20​ 20 Enterprise Development 51,52 48,28​ 50 Socio-Economic Development 12,00 12,00​ 12 OVERALL SCORE 116,44 113,21​ 130 Achieve more. 12

SOCIAL RESPONSIBILITY 2019 ADOPT-A-SCHOOL FOUNDATION Adapt IT has a long track record of investing in the upliftment of disadvantaged South African communities and remains committed to continuing with this practice through its sustainable • Supporting 220+ schools finance practices and policy of extending the impact of projects to embrace more • Benefitting 590 000+ learners beneficiaries. • Adapt IT donation R2 715 000 The company continues to invest in larger longer-term initiatives that are sustainable and provide the most benefit for disadvantaged South African communities. Achieve more. 13

FIN INANCIAL RESULTS Achieve more. 14

INTERIM RESULTS 31 DECEMBER 2018 IN FINANCIAL RESULTS > > > > 4% 10% 5% 1% TURNOVER HEADLINE EARNINGS NORMALISED HEADLINE EBITDA EARNINGS PER SHARE PER SHARE FROM CONTINUING FROM CONTINUING OPERATIONS OPERATIONS Achieve more. 15

ADI I 5 YEAR REVIEW TURNOVER (R’m) EBITDA (R’m) TURNOVER* EBITDA* 140 800 676 118 667 4% 10% 700 111 120 34 4 600 ACQUISITIVE EBITDA MARGIN 90 100 GROWTH 461 500 4% 18% 80 62 400 310 ANNUITY EBITDA CAGR 60 642* 107* 261 TURNOVER 42 300 58% 23% 40 200 COMPOUND 20 100 ANNUAL GROWTH RATE - 21% - 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Business disposed * From continuing operations Achieve more. 16

SHARE BUYBACK NUMBER OF SHARES (Million) AVERAGE PRICE 12 10,8 10 772 cps 8,2 8 TREASURY SHARES AS 5,6 % OF SI 6 4,5 3,6 6,7% 3,0 4 759 WEIGHTED AVERAGE 2 824 NUMBER OF 733 ORDINARY SHARES - 5% DEC 2017 JUN 2018 DEC 2018 -0,5 -2 -1,1 Bought (average price cents per share) Issued Total Achieve more. 17

ADI I 5 YEAR REVIEW HEPS (cents) NORMALISED HEPS (cents) HEPS NORMALISED 45,00 45,00 HEPS 40,81 38,73 1% 40,00 5% 40,00 34,74 35,00 35,00 HEPS CAGR NORMALISED 29,70 29,89 28,89 HEPS CAGR 30,00 30,00 23,96 24,41 12% 14% 25,00 25,00 21,38 16,82 20,00 20,00 15,00 15,00 10,00 10,00 5,00 5,00 0,00 0,00 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Achieve more. 18

ADI I ABRID IDGED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME Unaudited Unaudited Audited 6 months ended 6 months ended year-ended 31 Dec 2018 31 Dec 2017 30 Jun 2018 Period-on-period R’000 R’000 R’000 change % Turnover 667 211 676 189 1 348 404 -1 EBITDA 117 742 111 240 270 102 6 52 Depreciation and amortisation (12 555) (8 253) (18 002) Amortisation of intangible assets acquired (18 911) (16 815) (33 895) 12 Profit from operations 86 276 86 172 218 205 0 Net finance cost (14 917) (11 078) (23 067) 35 Profit before taxation 71 359 75 094 195 138 -5 Income tax expense (25 207) (26 159) (65 527) -4 Profit for the period 46 152 48 935 129 611 -6 Headline earnings 45 110 47 369 105 426 -5 Amortisation of intangible assets acquired net of deferred tax 14 363 12 107 24 404 19 Fair value adjustment to financial liability 2 117 2 298 8 048 -8 Normalised headline earnings 61 590 61 774 137 878 -0 Weighted average number of ordinary shares in issue 150 913 159 509 157 415 -5 HEPS (cents) 29,89 29,70 66,97 1 Normalised HEPS (cents) 40,81 38,73 87,59 5 Achieve more. 19