Ioco Limited · JSE:IOC
Ioco — EOH Holdings — Non-Deal Roadshow (March 2022)
23 slides from Ioco's roadshow presentation, March 2022
Slide 1: EOH Holdings Limited Investor Roadshow
EOH Holdings Limited Investor Roadshow March 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT: PLEASE READ THE BELOW BEFORE READING THIS PRESENTATION This presentation has been prepared in relation to EOH Holdings Limited (the Company) and is the sole responsibility of the Company. It is provided strictly for discussion and information purposes only. This presentation do
Slide 3: Disclaimer
Disclaimer This presentation contains non-IFRS measures and ratios that are not required by, or presented in accordance with, IFRS. The Company presents non-IFRS measures because it believes that they and similar measures are widely used by certain investors, analysts and other interested parties as
Slide 4: EOH | A market leading IT player with significant strength in IT service offerings
EOH | A market leading IT player with significant strength in IT service offerings EOH is one of the market leaders in the African IT sector, with a diverse service offering that is well positioned to serve the needs of their clients The Group is well positioned to expand into new markets and, clien
Slide 5: Key investment highlights
Key investment highlights Diverse value proposition across the IT value chain, providing comprehensive end-to-end solutions to clients Core annuity revenue base built off services, entrenched with core blue chip clients and unrivalled go-to-market strategy with more than 4,200(1) clients Global tech
Slide 6: Significant improvement in seven pillars of governance framework
Significant improvement in seven pillars of governance framework Risk management Accountability Regulatory and legacy and internal compliance contracts controls Significant improvement in EOH’s governance, risk and control framework between May 2019 and October 2021 as evidenced by the number of amb
Slide 7: Unpacking EOH
Unpacking EOH
Slide 8: Unpacking EOH's growth story
Unpacking EOH’s growth story EOH is well positioned to meet the evolving needs of clients with the ability to increase market share Harness the power of end-to-end capabilities to solve client problem Unearth hidden IP gem companies – surface for investment and expansion Extract value from significa
Slide 9: iOCO's future state ecosystem has been designed to align with evolving industry trends
iOCO’s future state ecosystem has been designed to align with evolving industry trends OEM Driven Strategy Own IP Driven Strategy (enabled by EOH market expertise, (enabled by own IP and multiple technology partners) sales & implementation) Sales & Advisory Multi-BU Solution Sales Advisory & Consult
Slide 10: iOCO Infrastructure Services
iOCO | Design, Develop, Optimise Division Product / Service Partners and suppliers Sales and Solutions This solution overlaps the four pillars of iOCO (Digital, Services, Technology and IS) and is not a standalone division. Bespoke IT advisory solutions are crafted for clients, either by plugging in
Slide 11: Rocketlab Ventures: Technology companies with strong IP, high growth potential and ability to scale
Rocketlab Ventures: Technology companies with strong IP, high growth potential and ability to scale Rocketlab Ventures is a silo within iOCO comprised of early- STRUCTURE stage product companies that sits within the broader iOCO Find /create more scalable division Invest in existing platforms platfo
Slide 12: iOCO is well positioned to access a large, addressable set of markets
iOCO is well positioned to access a large, addressable set of markets iOCO currently addresses a large, growing IT market in South Africa(1)…. iOCO in particular is positioned in some of the largest SA IT sub-sectors • iOCO is well positioned in some of the fastest sub-elements of the IT market, Tot
Slide 13: Nextec positioned for growth phase post-turnaround
Nextec positioned for growth phase post-turnaround Nextec has journeyed through a turnaround process and is well positioned for growth Key turnaround initiatives Turnaround initiated Performance / Value Offering Processes and structures implemented to turnaround Nextec business People and culture Re
Slide 14: Nextec | Infrastructure and People Solutions
Nextec | Infrastructure and People Solutions Division Sub-division Description of segments Strategic partners Communication and Connectivity Solutions: Turnkey and custom solutions catering to individual and complex wireless communications needs, from network design and implementation to physical in
Slide 15: EOH's large, addressable international markets
EOH’s large, addressable international markets The Group is well-positioned to expand into new markets and clients through a cost- effective service offering, concentrated in sub-Saharan Africa, Egypt and the UK International operations TAM(1)(3) Clients(2) Staff(2) Czech office South Africa c.R116b
Slide 16: Sustainable Earnings and Capital Structure
Sustainable Earnings and Capital Structure
Slide 17: Financial sustainability
Financial sustainability EOH has focused on the quality of revenue base Gearing has reduced significantly (R’mn) (R’mn) 4,038 4,50 0 4,00 0 634 3,50 0 3,00 0 2,069 2,50 0 (1,008) 4 2,00 0 3,404 7,882 1,50 0 6,874 2,065 1,00 0 ,500 , FY21A total revenue Discountinuing ops FY21A (Continuing ops) FY18A
Slide 18: Focus on quality of earnings paying off
Focus on quality of earnings paying off FY2019 FY2020 FY2021 28% 20% 22% 8% 0% 2% ( 22) (9%) (12%) ( 534) (29%) (1 751) GP Margin EBITDA Margin Operating Margin HEPS Source: EOH filings and reports, EOH management 18
Slide 19: Cash bridge
Cash bridge Despite EOH having a strong cash balance on hand, right-sizing the capital structure is imperative in improving the cash flow generation of the business R’m Interest and debt repayments of c.R674m absorb the operational cashflows generated by the business. A reduction in gearing via a ca
Slide 20: Right-sizing the capital structure
Right-sizing the capital structure The EOH strategic journey Understanding the equity capital requirement FY18A – FY19A FY20A – FY21A FY22E+ Maturing EOH debt Sources of capital • Unsustainable working capital • Creditors and working capital • In the process of concluding a R1 500mn R1 500mn levels
Slide 21: Conclusion
Conclusion
Slide 22: Opportunity for potential investors
Opportunity for potential investors Final thoughts Key catalysts to achieve a re-rating ✓ Significant progress: The transformative journey has helped shed legacy governance issues, right Right size the business operations and capital size the corporate structure and balance sheet and position the bu
Slide 23: Q&A?
Q&A?