ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2018 Achieve more.
BUSINESS OVERVIEW 1 Achieve more.
ABOUT ADAPT IT 1000+ employees 10 000 customers 53 Countries Africa and worldwide JSE listed ADI Software and Services Provider Level 3 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 2 Achieve more.
DIRECTORATE 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 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 3 Achieve more.
MARKET POSITIONING VISION VALUES PERSONALITY POSITIONING To be a leading provider of Respect, Honesty, Leading. Professional. Experts. Achieve more. specialised software. Responsibility, Accountability. 4 Achieve more.
10 YEARS OF GROWTH OCT 2007 OCT 2008 AUG 2009 OCT 2012 OCT 2013 SEPT 2014 JAN 2016 JUL 2017 JUNE 2018 The Swicon360 Energy sector InfoWave Adapt IT Education Added Financial Acquired LGR Micros South acquisition entry through merges with specialising in specialisation Telecommunications Services Telecommunications, Africa, a leader Manufacturing extends the the Aquilon Adapt IT through the intelligence Sector is provision and in Hospitality software, moves manufacturing acquisition creating a acquisition of management entered management of end- Software, is to the main offering with expands Adapt software Integrated Tertiary software through the through the acquired by to-end data business. board of the JSE. SAP Human IT into Africa’s acquisition of Software (ITS) – a AspiviaUnison Adapt IT. warehouse and Capital growing energy, CQS. leader in tertiary acquisition. business intelligence education ERP Management sector, systems with systems expanding Business serving major oil presence in Africa and the company into Process companies. Australia. Outsourcing. Europe and Australasia. MILESTONES 2014 2017 2017 2020 target 5 th fastest growing African Tech Company 2 nd in the Sunday Times Top 100 companies R1 billion annualised turnover R3 billion annualised turnover 5 Achieve more.
OUR NEW CORPORATE IDENTITY Delivering solutions for your environment. Achieve more. As Adapt IT evolves in delivering specialised software solutions worldwide, we have similarly revived our corporate identity to reflect our core positioning and expertise. Our promise ‘Achieve more. ’ is lucidly expressed in line with the rebranded logo which boldly incorporates the red icon and Adapt IT wordmark. The icon is the composite of the infinity sign and the Adapt IT letter A which represents a symbol of excellence and empowerment, while Adapt IT wordmark portrays our legacy and dynamic global approach as the leading provider of specialised software. This rebranding initiative allows us to grow our people and solutions to enable our customers to achieve more as well as to accentuate how we are experienced as Leading. Professional. Experts. 6 Achieve more.
SECTOR FOCUS EDUCATION ENERGY COMMUNICATIONS HOSPITALITY MANUFACTURING FINANCIAL SERVICES 7 Achieve more.
EDUCATION MANUFACTURING FLAGSHIP SOFTWARE FLAGSHIP SOFTWARE • • Integrated Tertiary Software – ITS Integrator Sugar Industry ERP solution – Tranquillity • • CELCAT Timetabling Weighbridge and Laboratory Testing Solution – CaneLAB • Safety Health Environment and Quality Solution (SHEQ) – SERVICES OpSUITE • ITS Integrator support • Implementation, customisation, development and integration SERVICES • • Automated exam and class timetabling Business advisory • • Training and consulting Software development, implementations, systems integration • Sustainability Reporting CUSTOMERS CUSTOMERS 8 Achieve more.
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 9 Achieve more.
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 SERVICES SERVICES • • Software as a Service (SaaS) Consulting • • Telecommunication industry benchmarking Project Management • • Telecommunication and technology expense management Implementation Services • (TEM) best practice Hosting and Database Services • • Customer experience (CX) and self-service advisory Application Services CUSTOMERS CUSTOMERS 10 Achieve more.
TRANSFORMATION LEVEL 3 B-BBEE CONTRIBUTOR TARGET SCORECARD 2017 SCORE Ownership 21,07 25 Management & Control 14,66 23 Skills Development 17,20 20 Enterprise Development 48,28 50 Socio-Economic Development 12,00 12 OVERALL SCORE 113,21 130 11 Achieve more.
SOCIAL RESPONSIBILITY 2018 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 finance practices and policy of extending the impact of projects to embrace more beneficiaries. The company continues to invest in larger longer-term initiatives that are sustainable and provide the most benefit for disadvantaged South African communities. 12 Achieve more.
FINANCIAL HIGHLIGHTS 13 Achieve more.
ADI YEAR ENDED 30 JUNE 2018 FINANCIAL HIGHLIGHTS > > > > > 36% 39% 32% 14% 11% TURNOVER EBITDA BASIC EARNINGS PER HEADLINE EARNINGS NORMALISED HEADLINE SHARE PER SHARE EARNINGS PER SHARE 14 Achieve more.
ADI 5 YEAR REVIEW TURNOVER ( R’m ) EBITDA (R’m) TURNOVER EBITDA 1,600 300 270 1 348 36% 39% 1,400 250 1,200 ORGANIC EBITDA MARGIN 194 994 TURNOVER 200 GROWTH * 165 1,000 796 13% 20% 800 150 ACQUISITIVE EBITDA CAGR 575 102 TURNOVER 600 GROWTH 406 100 30% 37% 56 400 50 TURNOVER 200 CAGR - - 27% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 * From continuing operations 15 Achieve more.
ADI 5 YEAR REVIEW BEPS (cents) BEPS 90.00 77.51 80.00 32% 70.00 BEPS CAGR 57.61 58.74 60.00 18% 50.00 42.34 34.45 40.00 30.00 20.00 10.00 0.00 2014 2015 2016 2017 2018 16 Achieve more.
ADI 5 YEAR REVIEW HEPS (cents) NORMALISED HEPS (cents) HEPS NORMALISED 87.59 90.00 90.00 HEPS 78.96 80.00 80.00 71.67 14% 11% 66.97 70.00 70.00 HEPS CAGR NORMALISED 58.76 57.54 HEPS CAGR 60.00 60.00 52.02 14% 20% 50.00 42.31 50.00 34.55 34.55 40.00 40.00 30.00 30.00 20.00 20.00 10.00 10.00 0.00 0.00 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 17 Achieve more.
ADI 5 YEAR REVIEW DIVIDEND PER SHARE (cents) 18.00 17,10 16 TH DIVIDEND 16.00 SEPT 2018 13,70 17,10 cps 13,40 14.00 DIVIDEND PER 12.00 10,90 SHARE 25% 10.00 8,23 POLICY OF 8.00 4 X COVER 6.00 4.00 2.00 - 2014 2015 2016 2017 2018 18 Achieve more.
ADI ABRIDGED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME Group Group 2018 2017 R’000 R’000 % Change Turnover 1 348 403 993 671 36 39 EBITDA 270 102 194 326 Depreciation and amortisation (18 002) (14 238) 26 Amortisation of intangible assets acquired (33 895) (29 105) 16 Profit from operations 218 205 150 983 45 1 Net finance cost (23 067) (22 851) Share of loss of equity accounted investment after tax - (88) (100) Profit before taxation 195 138 128 044 52 Income tax expense (65 526) (35 498) 85 Profit for the year 129 612 92 546 40 Headline earnings 105 426 88 149 20 Amortisation of intangible assets acquired net of deferred tax 24 404 20 956 16 Fair value adjustment to financial liability 8 048 9 356 (14) Normalised headline earnings 137 878 118 461 16 Weighted average number of ordinary shares in issue 157 415 150 028 5 HEPS (cents) 66,97 58,76 14 Normalised HEPS (cents) 87,59 78,96 11 19 Achieve more.
ADI ABRIDGED CONSOLIDATED STATEMENTS FINANCIAL POSITION Group Group 2018 2017 R’000 R’000 Non-current assets 974 154 730 781 Current assets 413 361 355 666 Total assets 1 387 515 1 086 447 Total equity 753 204 668 537 Non-current liabilities 287 750 193 178 Current liabilities 346 561 224 732 Total equity and liabilities 1 387 515 1 086 447 Gearing ratio 29% 15% 20 Achieve more.
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