Altron Limited Class A · JSE:AEL
Altron Limited Class A — FY2015 Earnings Presentation
27 slides from Altron Limited Class A's earnings presentation, 2015
Slide 1: Year end results 2015
Year end results 2015 ROBBIE VENTER / CHIEF EXECUTIVE ALEX SMITH / CHIEF FINANCIAL OFFICER
Slide 2: Agenda
AGENDA Overview and financial summary Robert Venter Financial results Alex Smith Operations and way forward Robert Venter
Slide 3: Results overview
RESULTS OVERVIEW Altron TMT: In the telecommunications division Altech Netstar, Altech Radio Holdings and the Systems Integration Group performed well Altech Autopage results declined, the asset is now accounted for as an asset ‘Held-for-Sale’ with negotiations at an advanced stage to dispose of thi
Slide 4: Corporate activity
CORPORATE ACTIVITY Sale of non-core assets: Investment in core assets: 1 May 2014, Bytes UK disposed of 100% of its 1 May 2014, Altech acquired the remaining 50% equity interest in Bytes Document Solutions’ less one share equity interest in Altech NuPay, operation in the UK for R91 million which Alt
Slide 5: Financial highlights – total operations for the year ended 28 Feb 2015
FINANCIAL HIGHLIGHTS – TOTAL OPERATIONS FOR THE YEAR ENDED 28 FEB 2015 R millions FEB 2015 FEB 2014 % CHANGE Revenue 27 623 27 772 (1) EBITDA 1 383 1 788 (23) EBITDA margin (%) 5.0 6.4 HEPS (cents) 94 188 (50) Return On Capital Employed (%) 10.9 17.1 Net borrowings 3 534 3 315 Net debt / EBITDA (tim
Slide 6: Contribution per division
CONTRIBUTION PER DIVISION REVENUE FEB 15 FEB 14 Rm 8 288 9 195 8 379 8 711 29% 33% 30% 31% 3 049 2 193 11% 8% 7 945 Telecoms 8 326 28% 30% Multi-media EBITDA* FEB 15 FEB 14 Technology Rm 220 15% Power 386 532 20% 37% 723 38% 614 600 42% 84 32% 194 6% 10% * Excludes corporate
Slide 7: Financial Results
Financial Results ALEX SMITH / CHIEF FINANCIAL OFFICER
Slide 8: Group income statement – total operations
GROUP INCOME STATEMENT – TOTAL OPERATIONS R millions FEB 2015 FEB 2014 % CHANGE Revenue 27 623 27 772 (1) Operating profit before capital items 827 1 342 (38) EBITDA 1 383 1 788 (23) EBITDA margin (%) 5.0 6.4 Net finance expense (398) (260) Capital items (400) 5 Foreign exchange (losses)/profits (64
Slide 9: Movement in group revenue
MOVEMENT IN GROUP REVENUE Rm Altron TMT revenue declined marginally as a 28000 result of a marked decline in the Multi-media cluster, offset by limited revenue growth out of the Telecommunications and Technology clusters 27800 27 835 (99) All the businesses in the Telecoms cluster grew (91) revenue
Slide 10: Movement in group EBITDA
MOVEMENT IN GROUP EBITDA Altron TMT EBITDA declined by 16% as a result of Rm EBITDA declines in both Telecoms and Multi-media, 1900 while the Technology cluster achieved muted growth 1 801 (229) 1700 Telecoms EBITDA declined by 26% as a result of the deterioration in Altech Autopage and the (166) pe
Slide 11: Movement in group headline earnings
MOVEMENT IN GROUP HEADLINE EARNINGS Rm Altron TMT headline earnings reduced by 19%. A 700 significant decline in the Telecoms and Multi-media headline earnings was partially offset by a strong 600 603 (111) performance out of the technology businesses which grew by 20%. The Telecoms and Multi-media
Slide 12: Summarised balance sheet
SUMMARISED BALANCE SHEET R million FEB 2015 FEB 2014 Total non-current assets 4 496 5 496 Current assets 9 345 9 209 Cash balances 1 341 1 411 Total assets 15 182 16 116 Shareholders’ equity 3 639 4 256 Non-controlling interests 123 258 Non-current liabilities 3 260 495 Current liabilities 8 160 11
Slide 13: Cash flows
CASH FLOWS Rm 2000 1500 330 (335) (253) 1000 (276) 1389 500 (1 018) 1 453 291 0 (314) -500
Slide 14: Investing activities
INVESTING ACTIVITIES Rm 1350 37 47 1150 Cash utilised in investing activities 306 reduced by 20% 950 577 Investment into PPE decreased by 50% 750 following some investment into 344 capacity in the prior year and tight 182 control, particularly in 550 Powertech. Investment is below the depreciation c
Slide 15: Working capital
WORKING CAPITAL 76 60 62 70 54 55 56 51 52 52 55 Creditor days 46 49 43 26 20 18 16 19 Debtors Days 14 14 Inventory days Net days (81) (81) (89) (86) (100) (105) (112) Feb 09 Feb 10 Feb 11 Feb 12 Feb 13 Feb 14 Feb 15 15
Slide 16: Operations
Operations ROBERT VENTER / CHIEF EXECUTIVE
Slide 17: Altron TMT
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Slide 18: Altron TMT financial summary
ALTRON TMT FINANCIAL SUMMARY Rm FEB 2015 FEB 2014 % CHANGE Revenue 19 357 19 456 (1) EBITDA 1 186 1 415 (16) EBITDA margin (%) 6.1 7.3 Headline Earnings 461 572 (19) ROCE (%) 24.9 30.7
Slide 19: Telecommunications divisional review
TELECOMMUNICATIONS DIVISIONAL REVIEW % Feb 15 % Feb 15 change EBITDA change Company / division Revenue Comments on prior on prior Rm year Rm year Altech Autopage 5 650 2 137 (48) Performance predominantly as a result of continued pressures on Group the consumer and deflation of voice charges resulti
Slide 20: Multi-media divisional review
MULTI-MEDIA DIVISIONAL REVIEW Feb 15 % change Feb 15 % change Company / division Revenue on prior EBITDA on prior Comments Rm year Rm year Altech Multimedia 1 821 (32) 61 (64) Results were negatively impacted by the NUMSA strike in July, reduced order intake in Africa as a result of delays in Africa
Slide 21: IT divisional review
IT DIVISIONAL REVIEW Feb 15 % Feb 15 % change EBITDA change Company / division Revenue Comments on prior on prior Rm year Rm year Bytes Technology 2 644 28 106 39 Business continued to diversify and leverage its market leading Group UK Software position in the UK. Strong local currency results assis
Slide 22: Altron Power
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Slide 23: Altron Power financial summary
ALTRON POWER FINANCIAL SUMMARY Rm FEB 2015 FEB 2014 % CHANGE Revenue 8 288 8 379 (1) EBITDA 220 386 (43) EBITDA margin (%) 2.7 4.6 Headline Earnings (9) 77 (112) ROCE (%) 1.1 5.5
Slide 24: Power divisional review
POWER DIVISIONAL REVIEW % % Feb 15 Feb 15 Change Change Company Revenue EBITDA on prior on prior Rm Rm year year Powertech Cables 5 117 (2) 202 74 Continued to demonstrate positive progress, with a good recovery Group during the period despite impact of NUMSA strike. Iberian operations were profitab
Slide 25: Altron Power order book
ALTRON POWER ORDER BOOK Orders on hand (Rm) FEB 2013 FEB 2014 FEB 2015 Cables R434m R803m R518m Transformers R692m R765m R625m System Integrators R281m R243m R220m Powertech Quadpro R56m R153m R223m Total R 1 463m R1 964m R1 586m Enabling Contracts FEB 2014 FEB 2015 Term of Value Term of contract Va
Slide 26: The way forward
The way forward ROBERT VENTER / CHIEF EXECUTIVE
Slide 27: Going forward
GOING FORWARD Review of business strategy already underway: Focus on assets which give group competitive advantage On-going review of core vs non-core assets Enter into equity and technology partnerships with multi-nationals Reduce central structure and costs Continue successful Altron TMT integrati