Ioco Limited · JSE:IOC
Ioco — EOH Holdings — Investor Presentation (December 2018)
20 slides from Ioco's investor presentation, Dec 11, 2018
Slide 1: CEO Insights 100 Day Review
CEO INSIGHTS 100 DAY REVIEW 11 DECEMBER 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by EOH Holdings (Pty) Ltd. (“EOH”) for the exclusive use of the party to whom EOH delivers this presentation ( "Recipient"). The information in this presentation has been obtained from third party licensors (described below) and publicly available sourc
Slide 3: Agenda
AGENDA 1 2 3 4 5 CEO CURRENT CURRENT DRIVE FOR PATH SUMMARY SITUATION TRADING CHANGE FORWARD
Slide 4: 2018 Results
2 2018 Results (ZAR, million) INTERNATIONAL IP / SOFTWARE TOTAL Revenue1 6,979 7,441 1,258 599 16,341 20182 EBITDA1 913 540 197 120 1,770 EBITDA1 13.1% 7.3% 15.7% 20.0% 10.9% margin 1 Results based on continuing operations. Total adjustments for discontinued operations would result in an impact of Z
Slide 5: Challenges impacting share price
2 Challenges impacting share price SHARE PRICE ECONO- Low economic Trump’s USA first growth in SA policy affecting EM (ZAR, 3 Jan 2017 – 5 Dec 2018) MIC ISSUES Complicated by 160 State Capture focus 140 120 Difficult investor Unclear strategy valuations 100 (80%) KEY 80 Public sector risks Service v
Slide 6: Outlining specific legacy issues faced by EOH
2 Outlining specific legacy issues faced by EOH ZAR Software licenses paid in SA, but resold and cash collected in country 1 c.600m since Jan International Debt for acquisitions/WC for businesses largely in growth phase not paying 2016 dividends 2 c.900m debtors Delayed payments/losses incurred on p
Slide 7: How EOH is addressing these legacy issues
2 How EOH is addressing these legacy issues Replaced management with EOH people as required 1 International Restructuring the operations including corporate structure Ring-fencing International into regional cash self-sustainable units ensuring investment in growth Projects largely completed by H1’1
Slide 8: Other ongoing initiatives
2 Other ongoing initiatives Action Responsibility Activities • Data room set-up • Regulatory review • Tax review - Boards Due diligence Governance - Returns - Annual financial statements - Assessed losses - Governance IFRS 9 / 15 External • Debtors & revenue recognition policy change compliance cons
Slide 9: Governance progress update
4 Governance progress update ABC COMPLIANCE (ISO 37001) Proportionate Top level Risk assessment Due diligence Communication Monitoring and procedures commitment (incl. training) review 33% 100% 0% 50% 100% 100% USB GOVERNANCE FRAMEWORK REVIEW FINDINGS COMPLIANCE INCIDENTS • Knowledge and compliance
Slide 10: What does EOH stand for?
4 What does EOH stand for? PHILOSOPHY Listed in 1998 BEST PEOPLE PARTNER FOR LIFE Over 11 500 employees RIGHT 1ST TIME SUSTAINABLE TRANSFORMATION A Force for Good LEAD AND GROW 51% black-owned, B-BBEE Level 1 YOUTH JOB - CREATION INITIATIVE • Established in 2012 Africa's Largest Technology Service P
Slide 11: Strategic focus going forward
4 Strategic focus going forward KEY OUTCOMES FOR 2019… DRIVEN BY 1 Restore share price Clear investor story for business lines Return to being a growth story Transparent reporting KPI driven incentives Complete business enabling governance framework 2 Fund growth Restoring Operational Customer Incen
Slide 12: Redefined operating structure
4 Redefined operating structure INVESTMENT HOLDING COMPANY INTERNATIONAL Own IP / SOFTWARE • Digital • Domain consulting and advisory • Software licensing (incl. owned • Vertical focus: e.g., financial • Data • Knowledge process outsourcing IP) services, construction Overview • Apps • People solutio
Slide 13: Creating an efficient head office structure
4 Creating an efficient head office structure MAIN GROUP FUNCTIONS KEY PRINCIPLES • Broad strategy setting Strategic, not operational management - Growth agenda - LT vision • Corporate actions Lean structure - Capital structure - Liquidity events • Policy guidelines No general recharge – Dividends o
Slide 14: IP / Software – Significant opportunities to unlock value
4 IP / Software – Significant opportunities to unlock value IP / SOFTWARE OPPORTUNITIES IP / SOFTWARE BUSINESS Company Description Footprint Revenue1 EBITDA1 • 120 types of IPs / Software: Currently included under IP/ software business CURRENT STATUS - Proprietary software Construction ERP & - Techn
Slide 15: Employee strategic priorities
4 Employee strategic priorities BUILDING CAPABILITY - SUPPORT CURRENT AND FUTURE BUSINESS GOALS PERFORMANCE, REWARD CULTURE (PURPOSE, (RIGHT PEOPLE, RIGHT ROLES, RIGHT TIME) & RECOGNITION PHILOSOPHY, VALUES) Attract & retain Develop critical Build future talent Drive high Embed EOH exceptional talen
Slide 16: Trading update
3 Trading update Business overview Working • Working capital has improved, barring highlighted 2018 problem debtors capital • A number of working capital management initiatives underway • Inflow of new, paying debtors creating recurring revenue • c. 50% of debtors collected in every following month
Slide 17: 2020+ Target Financial Profile
5 2020+ TARGET FINANCIAL PROFILE INTERNATIONAL IP / SOFTWARE Revenue growth 5-10% 5-10% 10-15% 10-15% targets 2020+ EBITDA margin 10-15% 10-15% 12-18% 15-25% targets 17
Slide 18: EOH's path forward
5 EOH’s path forward Focus the Scale the Collaborate Improve Clear Best portfolio business across economics governance people businesses 18
Slide 19: Investor relations roadmap
5 Investor relations roadmap Mar 2019 2019 H1 results presentation and roadshow Today 100 day Jun 2019 strategy Investor Day update 19
Slide 20: Slide 20