INTRODUCING ALTRON MTETO NYATI CEDRIC MILLER GROUP CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER
About South Africa – Global Competitiveness Report 2018 6
Facts and Figures – Altron Group 76bn Founded in Over 15 Africa’s largest Mission 1965 8000 Largest Xerox Critical Communications global partner network Strategic partners Transactions per annum Employees globally in retail and microfinance Operating in Over 12K 700K 4 25K 13,5K Continents Enterprise customers Netstar vehicle ATMs serviced per month GPs on Altron Switch system Africa | Asia | Europe | Australia subscribers Ticker code: AEL.SJ 3
Board Members MIKE LEEMING MTETO NYATI ANTONY BALL BERENICE FRANCIS BRETT DAWSON Joined the Altron board Joined the Altron board Joined the Altron board Joined the Altron board Joined the Altron board in 2002 in 2017 in 2017 in 2018 in 2017 ROBERT VENTER DR PHUMLA MNGANGA GRANT GELINK STEWART VAN GRAAN SAMUEL SITHOLE Joined the Altron board Joined the Altron board Joined the Altron board in Joined the Altron board Joined the Altron board in 2017 in 1997 2019 in 2012 in 2017 4
Group Executives MTETO NYATI CEDRIC MILLER ANDREW HOLDEN DOLORES MASHISHI COLLIN GOVENDER Group Chief Executive Group Chief Financial Group Chief Group Executive: Group Executive: Officer Human Capital Operations Officer Shared Services CHRIS POTGIETER ZIPPORAH MAUBANE SAYEEDA KHAN Group Executive: Legal Group Executive: Group Executive: Risk Marketing and Compliance 3
Managing Directors BRETT NASH IKE DUBE IGSHAAN SOULES CHAD BAKER GRANT VAN DER WAL MD: Altron Nexus MD: Altron Karabina MD: Altron Rest of MD: Altron Bytes MD: Altron Bytes Africa People Solutions Managed Solutions JOHAN BASSON JOHAN GELLATLY PIERRE BRUWER LESLIE MOODLEY NEIL MURPHY MD: Altron Bytes MD: Altron Bytes MD: Netstar MD: Altron Bytes MD: Altron Bytes UK Document Solutions Secure Transaction Systems Integration Solutions 6
One Altron Strategy OUR SEGMENTS OUR PURPOSE OUR VISION Delivering innovation that matters Be the leading technology solutions provider ONE GOAL 2-5-1 ONE SET OF VALUES Smart Fintech & Managed Digital IOT Healthtech Double (2) EBITDA in 5 years by: Services Transformation ⎻ Openness, honesty and integrity ⎻ Being a great place to work for all ⎻ Collaborate across teams ⎻ Delivering leading returns ⎻ Embrace diversity and inclusion ⎻ Providing exceptional customer service ⎻ Get things done and enjoy doing it OUR SET OF STRATEGIC PRIORITIES ⎻ Doing good business while doing good ⎻ Leading returns for shareholders ⎻ Revenue growth ⎻ Passionate about employees, customers, ⎻ GROWTH AREAS Improving profitability partners and communities ⎻ Transform the customer experience ⎻ Employee excellence Cloud IOT Data Security Services Analytics SOCIETAL IMPACT HEALTHCARE MANAGEMENT SAFETY AND SECURITY SKILLS DEVELOPMENT FINANCIAL INCLUSION
Our strategy roadmap 2017 2019 2021 Positioning for Growth Accelerated Growth Delivering Growth a) Systematic Africa growth a) Sales effectiveness a) Off shore growth Revenue b) Acquisitions high value b) Influence influencers b) Group wide solutions services Growth c) Innovation drive c) Healthtech & Fintech c) Cross selling inherent d) Bolt-on acquisitions d) IT Security leadership d) Partnerships – growth areas a) Shared Services & CoE a) Sell remaining non core Improve a) Cost leadership b) Lean mgmt structures b) Re-align core assets b) Digital workplace c) Public cloud mainstream Profitability c) HO restructure & move d) Service automation a) Overhaul customer a) Strong technology brand a) Superior customer Transform Customer touch points b) Lead with innovation experience b) Brand Repositioning c) Key account mgmt Experience b) Reputation for innovation c) New Altron Head Office d) e-commerce key clients c) Stakeholder Advocacy a) One Altron a) Diverse mgmt team a) Diversity inherent Employee (purpose, values etc) b) Mobile workforce b) Employees as brand b) Sales enablement c) Talent management Excellence ambassadors c) O365 and Yammer d) Facilitate staff giving
Our Businesses Digital Transformation Altron Karabina Altron Nexus B-BBEEE Level: 1 We specialise in Cloud Computing and Data Analytics and helping Leading smart city solutions and broadband infrastructure. customers to digitally transform their businesses through Microsoft technologies. 71 708 1460 sites 70 130 Over 300 Microsoft Gauteng incidents managed 24/7 at the National Local & International Industry Broadband Network business partners in SA Network Operations Centre customers Awards Gold Partner Altron Bytes Systems Integration B-BBEEE Level: 2 Bytes Technology UK Software & Cloud specialists in commercial and Public sector. Licensing, We are an end-to-end ICT service provider of consulting, implementation software asset management, security and cloud optimisation. Microsoft’s and outsourcing services. #1 UK Partner. Providing network platform to 30 000 Certified two Metro’s – enabling Smart Data Cloud provider service desk calls City solutions and Citizen on AWS managed per month Services 9
Our Businesses Smart IOT Healthtech & Fintech Netstar B-BBEEE Level:4 Altron Bytes Secure Transaction Solutions B-BBEEE Level: 4 Pioneered vehicle recovery technology, provides insurance telematics and Provides HealthTech, FinTech and CyberTech solutions. fleet management and data analytics. Insurance Vehicle Jamming 180% Telematics resistant +R1 billion Own IP growth in net +6.7 transactions/mth connections fast report device solution Collections/mth of solutions 10
Our Businesses Managed Services Altron Bytes Document Solutions B-BBEEE Level: 2 Altron Bytes Managed Solutions B-BBEEE Level: 3 Hardware and software technologies in financial, retail and petroleum Largest Xerox partner providing integrated print managed services. sectors. Partners with NCR, Dell, HP and Lenovo. 50% +13 500 Stockholding 259 949 3 Largest Xerox distributor market share 188 locations ATMs serviced high-end printers in the world 788 items, 526 147 units retail devices per month DELL devices Altron Bytes People Solutions B-BBEEE Level: 3 The largest South African-owned business Process Outsourcing (BPO) solutions provider 100 000 +12 000 +2.4 student days delivered People received workplace experience calls managed monthly annually 11
Our Businesses Annuity % Bytes UK 64% Altron Netstar 86% Altron Bytes Secure Transaction Solutions 74% Altron Bytes Systems Integration 49% 52% Altron Bytes Managed Solutions Altron Nexus 26% Altron Bytes Document Solutions 40% Altron Bytes People Solutions 73% Altron Rest of Africa 45% Altron Karabina 87% Total 59%
Strategic Partners 13
Financial focus areas EFFICIENT GROWTH AND CAPITAL RESILIENCE ALLOCATION Improving OPTIMISATION OF PORTFOLIO MIX profitability CAPITAL STRUCTURE ONE ALTRON IN CONTEXT OF WORKING CUSTOMER CAPITAL CENTRICITY MANAGEMENT 18
Non-core disposals materially completed Proceeds realised Proceeds deferred Discontinued Status Disposal date R’ million 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 Share price performance vs ALSI 30% 300% 25% 250% 20% 200% 15% 150% 10% 100% 5% 50% 0% 0% -5% -50% 28-Feb-2016 28-Feb-2017 28-Feb-2018 28-Feb-2019 ALSI Altron Share price information obtained from Thomson Reuters
FY20 Outlook Extend our Microsoft Increase wallet share in top Capability to include 44 accounts through cross Licensing Solution Provider and upselling and geographic expansion Increase focus on Automotive Sector in Netstar South Africa Margin Expansion in Altron Bytes Systems Scale operations in Netstar India Integration Double digit EBITDA growth 19
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