Interim Results For the six months ended 31 January 2020 7 April - PowerPoint PPT Presentation

Interim Results For the six months ended 31 January 2020 7 April 2020

Strategic & Operational Overview Stephen van Coller Group CEO

THE STORY SO FAR… • Attracted experienced talent while retaining existing key talent • Significantly improved governance, risk and control procedures • Avoided Government and BUSA blacklisting/suspension • Stabilised core revenue • Traction on legal company rationalisation • Collected R400m in long outstanding debt • Closed 31 properties - annualised R70m pa savings • Contained headcount as staff numbers down by 3,000 • Sold over 40 businesses - value of R1,17bn • Paid R227m in one off costs & settlements in last 6 months • Paid lenders R1,5bn in the last 19 months • Significant accounts clean up though data cleansing • Restructured the core iOCO business into 5 manageable units 3

KEY ACHIEVEMENTS FOR THE PERIOD Total Revenue R 6 354 million Business performance stabilised with Gross Profit margin improvement with 24% GP margin Normalised EBITDA Significant cost management progress made R405 million with ῀ 65% cash conversion rate Cash balances R826 million (1) with an Stable cash balances consistent with prior period improvement to R950 million as at 2 April 2020 Clear path to extinguishing drain of large one-off settlements and loss making business units Note: All numbers include continuing and discontinuing operations 1. R826 million (excluding R126 million lost to disposals) compared to R957 million in HY 2019 4

NEW MINDSET REQUIRED FOR CHANGING ENVIRONMENT TOUGH ECONOMIC ENVIRONMENT COVID-19 GOVERNMENT DEBT MOODY’S & FITCH DOWNGRADE LOADSHEDDING 5

HIGHLY EXPERIENCED LEADERSHIP TEAM WITH DIVERSE SKILLS Ste Stephen van Megan Me an Pydi digad gadu Fati tima Newman Coller Chief Financial Chief Risk Officer Chief Executive Officer Officer Lu Lufun uno o Na Natash sha Tsepa pa Brian Harding g Sean Bennet ett Marius Ma us de la Rey Nevhutal Ne alo Andrykow owsk sky Ramorit oriting ng Head of iOCO Interim COO Interim COO iOCO Head of Public Head of Strategy Head of iOCO Solutions NEXTEC Sector and Change Technology Entrepreneur as a Moved to South Africa Over 25 years ICT Previously served as Head of ICT industry veteran ICT industry experience industry experience International Banking for the pioneer, owner and who founded in 2008 . Previous Head spanning over 25 years, operator of retail of HSBC Global Banking including running own South African region for the Cornastone. Corporate having worked in business and working for Absa Group. Was the project operations including experience includes Africa, CEO of UBS SA various management & King Pie and Mugg & and Head of UBS Sub- IBM (6yrs) and Oracle lead for CIB with respect to serving as Executive executive positions. Corporation (5,5yrs) as a its separation from Barclays Bean. Executive of Director of listed entity Saharan Africa as well Co-founder & owner of Senior Exec. Plc. retail banking in ABSA CCH, where he oversaw as CEO of listed software development and Standard Bank company Kore Potash. 17 subsidiaries. company (Airborne Consulting) 6

WITH STRONG SUPPORT AT A CORPORATE LEVEL AND PUBLIC SECTOR LEVEL.. Me Megan an Pydi digad gadu Fati tima Newman Chief Financial Chief Risk Officer Officer Damian Naicken (Legal) LLB and admitted attorney. Previously Servest Group Louise Pinto (Financial reporting, Planning and Analysis) CA(SA). Proprietary Limited ,HR Director for Servest Security a division of Servest Proprietary previously at Absa in various senior finance and data analytics roles. Limited. Joined EOH November 2019 Joined EOH May 2019 Jo Vipond (Procurement) Previously Group Chief Procurement Officer Standard Bank Debbie Millar (Treasury and IR) CA(SA). Previously at Vodacom, MTN and (retired) Country GM Siemens Australia, COO Siemens Business Services SA, Project Edcon as treasury and IR head. Joined EOH November 2018 Executive IBM. Joined EOH October 2019 Marialet Greeff (Tax) CA (SA) Hdip Tax. Previously at Cell C within Malisha Awunor (HR) Previously HR director of Barloworld Global Power and financial control and tax and Micro Mega Holdings. Joined EOH April 2019 Handling HR Head Coal of Africa and Anglo America. Joined EOH Jan 2020 Jo Pohl (iOCO Finance) CA(SA) and ACCA and PBSA. Telesure Investment Garreth Young (Compliance) BA LLB Previously head of compliance and governance Holdings, Standard Chartered Bank and Barclays Africa. Previously CFO of risk and control Absa CIB, Eurasian Resources Group and Partner at Schindlers. Bowmans. Joined EOH April 2020 Joined EOH August 2019 Sandrika Chetty (Nextec Finance) CA (SA) Previously Group CFO Lonrho Cara Laing (Risk) CA (SA) Previously Head of Risk at Mix Telematics, Etisalat and EY Group and FD of Netcare Hospitals Division and Barloworld Handling. (Qatar). Joined EOH Apr 2019 Joined EOH August 2019 Lwando Sangcozi (Business Exec for CFO) CA (SA) Previously CFO Hollard Muhammad Kaamil Buckas (Internal Audit) (CA) SA. Previously Regional Executive: Affinities and Direct and FP&A for AIG. Joined EOH May 2019 Audit and Risk at Liquid Telecommunication. Joined EOH Dec 2019 7

CREATING A SUSTAINABLE BUSINESS MODEL FOCUSED ON RESTORING GROWTH TRAJECTORY & DELEVERAGING • Energy • Sybrin • Water • Information Services • Learning and • Syntell Development • CCS • Optimise iOCO i OCO i OCO Solutions Customer Technology • Compute • Sales & Advisory • App Dev Businesses require focus & scale • Enterprise • Network Solutions • Data & Analytics Consulting and Engineering offerings. • Manage & Operate • Cloud & Security Applications EOH cannot provide given current focus • Software reseller • International Businesses under review for strategic fit Good progress in sale/strategic partnerships Will allocate appropriate businesses to iOCO & divestments of non-core assets Key to deleverage process to be largely completed over the next Range of solutions, products and services across the ICT value chain. 12- 18 months OPTIMISING THROUGH A SINGLE ORGANISATION WITHOUT LOSING AGILITY 8

OUR VALUE PROPOSITION – 5 MAIN BUSINESS LINES IN iOCO Extensive consulting capability offering industry advisory and extensive technology advisory services covering CT architecture, human-centered Advisory & design, agile and digital Consulting Outsourced management of IT infrastructure, services and hosted network solutions Manage & Software resell, Enterprise applications Digital Operate & implementations and support, provisioning of Industries CUSTOMER Connectivity hardware infrastructure and data center services CENTRIC Automation & AI IOT driven software solutions for heavy industrial & mining customers; advisory; design and implementation Application development; Data & Analytics solutions and API management together with Solutions Technology Cloud and Security 9