Alviva Investor Presentation 31 December 2018€¦ · 31/12/2018 · SMM OMNM OMNN OMNO OMNP OMNQ...
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Transcript of Alviva Investor Presentation 31 December 2018€¦ · 31/12/2018 · SMM OMNM OMNN OMNO OMNP OMNQ...
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OMNV
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• dêçìé=oÉîáÉï
• léÉê~íáçå~ä=oÉîáÉï
• ^Åèìáëáíáçå
• ^Åíáçåë=~åÇ=píê~íÉÖó
Salient Features
Revenue
R7,7 billion
up 20%
HEPS
146,2 cents
up 10%
Share buyback
and Dividend
R76 million
Excellent
Working Capital
management
EBITDA
R460 million
up 14%
Core EPS
172,4 cents
up 21%
Invested in
Growth assets
R391 million
dêçìé=oÉîáÉï
Financial - Summary
HY HY HY HY
R‘000 (unless otherwise stated) 2019 2018 2017 2016Revenue 7 722 6 428 6 346 4 331
Gross Profit 1 323 1 150 1 127 557
Gross Profit (%) 17,1 17,9 17,8 12,9
EBITDA 460 403 410 243
Operating Income 371 350 364 228
Operating Income (%) 4,8 5,5 5,7 5,3
Attributable Profit 214 209 179 150
Basic Earnings per Share (cents) 146,3 133,2 106,5 94,4
Basic Headline Earnings per Share (cents) 146,2 133,0 106,1 94,1
Basic Core Earnings per Share (cents) 172,4 142,8 110,2 94,1
Weighted Average Shares Outstanding (m) 146,1 157,0 168,0 159,0
Inventories excluding Goods in Transit 948 850 778 943
Total Shareholders Equity 2 230 2 075 2 155 1 838
Debt to Equity Ratio excluding Securitisation (%) 17,1 7,8 0,0 21,9
Debt to Equity Ratio (%) 36,5 26,5 18,7 26,7
Return on Equity (%) 19,9 20,5 16,9 17,8
EBITDA - Contribution
RRIVB
PMIUB
NRIPB
=aáëíêáÄìíáçå pÉêîáÅÉë=C=pçäìíáçåë
cáå~åÅá~ä=pÉêîáÅÉë dêçìé=`Éåíê~ä=pÉêîáÅÉë
RSITB
OTIRB
NOIUB
=aáëíêáÄìíáçå pÉêîáÅÉë=C=pçäìíáçåë
cáå~åÅá~ä=pÉêîáÅÉë dêçìé=`Éåíê~ä=pÉêîáÅÉë
HY 2019 HY 2018
Revenue and EBITDA
1 46
5 2 09
9 2 73
1
3 12
6
3 18
3
3 63
8 4 33
1
6 34
6
6 42
8
7 72
2
M
N=MMM
O=MMM
P=MMM
Q=MMM
R=MMM
S=MMM
T=MMM
U=MMM
V=MMM
OMNM OMNN OMNO OMNP OMNQ OMNR OMNS OMNT OMNU OMNV
89 13
3
197 22
9 255
207 24
3
410
403
460
M
NMM
OMM
PMM
QMM
RMM
SMM
OMNM OMNN OMNO OMNP OMNQ OMNR OMNS OMNT OMNU OMNV
Revenue (R m) EBITDA (R m)
- -
Cash Flow - Salient Features
Centrafin
Assets growth
R128 million
pÜ~êÉ=
êÉéìêÅÜ~ëÉë=çÑ=
R36 million
^Åèìáëáíáçåë=
ÅçåÅäìÇÉÇ
R160 million
HY 2019R'000
HY 2018R'000
Key outflows :
Funds applied in acquisitions 263 420 150 269
Purchase consideration paid on business combinations 159 550 150 669
Transactions with non-controlling interests 51 294 -
Non interest bearing liabilities (earn-outs) 52 576 (400)
Net Investment in Finance Leases 127 541 44 842
Returns to Shareholders 76 395 125 901
Share repurchases 35 701 86 239
Dividends paid 40 694 39 662
aáîáÇÉåÇ=
m~áÇ
R41 million
^Åèìáëáíáçå=
ÑìåÇáåÖ=J líÜÉê
R104 million
Working Capital
` HY 2019 HY 2018 HY 2017 HY 2016R'000 R'000 R'000 R'000
Revenue 7 721 6 427 6 345 4 331
Inventories on hand (including WIP) 947 849 777 942
Inventories in transit 146 82 70 66
Inventory 1 093 931 847 1 008
Trade and other receivables 2 905 2 486 2 247 1 469
Trade and other payables 2 754 2 250 1 729 1 303
Deferred Revenue 107 154 206 12
Net Working capital 1 137 1 013 1 159 1 162 Inventory days (excluding in transit) 27 29 37 45
Net working capital (days) 18 23 41 44
Excellent
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léÉê~íáçå~ä=oÉîáÉïaáëíêáÄìíáçå
m_q=dêçïíÜ OMB
léÉê~íáåÖ=ÉñéÉåëÉë tÉää=ã~å~ÖÉÇ
aáîáÇÉåÇë=é~áÇ oNRT=ãáääáçå
Distribution - Salient Features
HY 2019 HY 2018
oÉíìêå=çå=Éèìáíó=EBF OTKN OPKM
HY 2019 HY 2018%R'000 R'000
oÉîÉåìÉ R=UMM=UNN Q=VRQ=QTQ 17
dêçëë=mêçÑáí SPP=UVO RSM=QSV 13
GP as % of Revenue 10.9 11.3
léÉê~íáåÖ=bñéÉåëÉë=áåÅäK=aÉéå PUR=STP PQO=QUN 13
Cost as % of Revenue 6.6 6.9
cáå~åÅÉ=`çëíë PQ MVS PV=UVO
Interest 5 929 2 137
Forward Points 28 167 37 755
mêçÑáí=_ÉÑçêÉ=q~ñ ONQ=NOP NTU=MVS 20
PBT as % of Revenue 3.7 3.6
• oÉã~áåë=ÜáÖÜäó=ÅçãéÉíáíáîÉ=~åÇ=ÉÑÑáÅáÉåí
• `çåíáåìÉÇ=ÑçÅìë=çå=kÉí=tçêâáåÖ=`~éáí~ä
Distribution - Revenue Contribution
HY 2019% of Revenue
HY 2018% of Revenue
38,0%
11,6%30,9%
19,5%36,5%
7,8%36,9%
18,8%
Enterprise & Infrastructure Software Client Computing Components & Accessories
Distribution - Enterprise Brands
léÉê~íáçå~ä=oÉîáÉïpÉêîáÅÉë=~åÇ=pçäìíáçåë
Services and Solutions - Salient Features
• fåîÉëíáåÖ=~ÜÉ~Ç=çÑ=íÜÉ=ÅìêîÉ=áå=ëâáääë
• sÉêó=ÇáÑÑáÅìäí=áåÑê~ëíêìÅíìêÉ=ã~êâÉí
• _~ä~åÅÉ=çÑ=íÜÉ=ÄìëáåÉëë=áë=ÅçãéÉíáíáîÉ=~åÇ=ÉÑÑáÅáÉåí
• pìÄëí~åíá~ä=éáéÉäáåÉ
o Datacentrix and Solareff
o Cross border opportunities
HY 2019 HY 2018
%R'000 R'000
oÉîÉåìÉ O=NVR=UVQ N=TRT=UON 25
dêçëë=mêçÑáí SMP=VUQ RMU=STU 19
GP as % of Revenue 27.5 28.9
léÉê~íáåÖ=bñéÉåëÉë=áåÅäK=aÉéå QVR=OPP QMP=QUM 18
Cost as % of Revenue 22.6 23.0
cáå~åÅÉ=fåÅçãÉ Q=PRM N=RUS
mêçÑáí=_ÉÑçêÉ=q~ñ NNP=NMN NMS=TUQ 6
PBT as % of Revenue 5.1 6.1
HY 2019 HY 2018
oÉíìêå=çå=Éèìáíó=EBF OQKT OSKP
Services and Solutions - Datacentrix Update
• Well-positioned íç=äÉîÉê~ÖÉ=ÅçããçÇáíáë~íáçå=çÑ=Ü~êÇï~êÉ=~åÇ=^ëJ^JpÉêîáÅÉ=íêÉåÇëW
Compliance | Cost | Elasticity | Governance | Security
• sçä~íáäáíó=áå=competitive landscape
• pçäáÇ=ÜóÄêáÇ=cloud strategy
• Constrained ICT Market
• aÉëéáíÉ=Åçåëíê~áåÉÇ=trading conditions margin is holding ìåÇÉê=éêÉëëìêÉ
• Investment áå=ëìééçêí=çÑ=new services contracts ïçå=áå=åÉíïçêâáåÖI=ëÉÅìêáíó=~åÇ=çìíëçìêÅáåÖ=ÄìëáåÉëëÉë
• AAS deals on the uptake Ó ÜáëíçêáÅ~ä=Å~éÉñ=ÇÉ~äë=ÅçåîÉêíÉÇ=íç=çéÉñ=Åçåíê~Åíë
• Investment in Middle East EaìÄ~á=~åÇ=n~í~êF=áå=íÜÉ=áåÑçêã~íáçå=ã~å~ÖÉãÉåí=ëé~ÅÉ
Services and Solutions - Datacentrix Significant wins
• ^ÑêáÅ~å=_~åâ
• ^ìÇáíçê=dÉåÉê~ä=pçìíÜ=^ÑêáÅ~
• ^ìêÉÅçå
• _~êäçïçêäÇ=bèìáéãÉåí
• _~êäçïçêäÇ=içÖáëíáÅë=
• `çÅ~J`çä~=_ÉîÉê~ÖÉë=^ÑêáÅ~
• aÉé~êíãÉåí=çÑ=eçãÉ=^ÑÑ~áêë
• aÉé~êíãÉåí=çÑ=gìëíáÅÉ
• dbjp=
• gpb
• iáÄÉêíó=iáÑÉ
• mt`
• p^km~êâë
• qÜÉ=^ìêìã=fåëíáíìíÉ
• qëÜï~åÉ=råáîÉêëáíó=
• rãÖÉåá=t~íÉê
Services and Solutions - Sintrex Update
• Revenue and Profitability
o Total Revenue increased by 40%
o Profit Before Tax increased by 256%
• Significant contracts in this period
o Nedbank | Standard Bank
Services and Solutions - GridCars Update
• “New to market” ÉäÉÅíêáÅ=îÉÜáÅäÉë=ÅÜ~êÖáåÖ íÉÅÜåçäçÖó
• bëí~ÄäáëÜãÉåí=çÑ=dêáÇ`~êë=~ë=~=market pioneer
• pìÄëí~åíá~ä=ãÉÇá~=ÅçîÉê~ÖÉ=~åÇ=brand building ~ÅÜáÉîÉÇ
• Electric vehicle charge point áåÑê~ëíêìÅíìêÉ=ÚÜáÖÜï~óÛ=êçääçìí
• Jaguar-Land Rover é~êíåÉêëÜáé=
léÉê~íáçå~ä=oÉîáÉïcáå~åÅá~ä=pÉêîáÅÉë
Financial Services - Salient FeaturesHY 2019 HY 2018
R'000 R'000
qçí~ä=î~äìÉ=çÑ=íÜÉ=Äççâ TVU=SNV SUT=SQT
Portfolio at Risk - 1 Day overdue
mçëí ON=VUP U=NNU
Post % 2.7 1.2
mÉêáçÇJÉåÇ OV=RNM NR=OTS
Period-end % 3.6 2.2
oÉíìêå çå=Éèìáíó=EBF ORKO OTKM
dÉ~êáåÖ=EBF TQKS TSKR
HY 2019 HY 2018
R'000 R'000 %
oÉîÉåìÉ VO=PUN UT=QTS 6
dêçëë=mêçÑáí RT=QMM RQ=NNU 6
GP as % of Revenue 62.1 61.9
léÉê~íáåÖ bñéÉåëÉë=áåÅäK=aÉéå OU=MVP OM=OOU 39
Cost as % of Revenue 30.4 23.1
cáå~åÅÉ fåÅçãÉ O=RVV N=UPP 42
mêçÑáí=_ÉÑçêÉ=q~ñ PN=VMS PR=TOP (11 )
PBT as % of Revenue 34.5 40.8
Credit Risk Management remains market leading
^ÅèìáëáíáçåjÉêäóåå
Acquisition - Merlynn Intelligence Technologies
• Alviva acquired 65% of MerlynnI=~å=^êíáÑáÅá~ä=fåíÉääáÖÉåÅÉ=Åçãé~åó
• oÉã~áåáåÖ 35% held by founder and CEO
• k~íìêÉ=çÑ=ÄìëáåÉëë
o Merlynn is an AI company with the ability to clone specific human expertise versus data mining.
o The Merlynn owned TOM (Tacit Object Modeler) technology looks to be unique in the global market
o Fast, effective and accessible manner
o Has large banking and insurance clients and has captured the attention of some of the largest global
companies in this sector
o Engaged in projects with the intelligence community in the US around the application of TOM as a
decision support technology for areas including customs, border patrol, homeland security, and
cyber-intelligence, amongst others
Merlynn - Reasoning
• m~êí=çÑ=çìê=strategy
• ^f=ÄÉáåÖ=çåÉ=çÑ=íÜÉ=fastest growing and highest profile technologies ÖäçÄ~ääó
• qlj=áë=highly differentiated Ñêçã=íê~Çáíáçå~ä=^f=áå=~=åìãÄÉê=çÑ=ï~óë=áåÅäìÇáåÖ=speed to value and ease of use
• mêçîÉå=íê~Åíáçå=áå=ÖäçÄ~ä=ÜáÖÜ=î~äìÉ=ëçäìíáçåë=Ebanking, insurance, securityF
• Limitless application and market development Ñçê=íÜÉ=íÉÅÜåçäçÖó
• qÉÅÜåçäçÖó=äÉåÇë=áíëÉäÑ=íç=scaling through reseller network ïáíÜ=î~äìÉ=ÇÉäáîÉêÉÇ=ïáíÜáå=Ç~óë
• Annuity revenue áå=íÜÉ=Ñçêã=çÑ=ÉåíÉêéêáëÉ=äáÅÉåëáåÖ=~ë=ïÉää=~ë=íê~åë~Åíáçå=êÉîÉåìÉ
• `ìêêÉåíäó=Ü~îÉ=three ‘assets’ that focus on íÜÉ=Ñáå~åÅá~äI=áåëìê~åÅÉ=~åÇ=ëÉÅìêáíóLáåíÉääáÖÉåÅÉ=ëÉÅíçêë
Managing risk - ïÜÉêÉ=íÜÉ=íÉÅÜåçäçÖó=áë=ÄÉáåÖ=ìëÉÇ=íç=ãçåáíçê=íê~åë~Åíáçåë=áå=~=ê~åÖÉ=çÑ=~êÉ~ë=
áåÅäìÇáåÖW
o Anti-money laundering
o Fraud
o Sanctions screening
o Customer attrition amongst others
Merlynn - Financial sector
Monitoring for risk áå=ÜáÖÜ=îçäìãÉ
o Where critical decisions and assessments need to be made in real time
o Removing the limitations ~êçìåÇ=ëÉÅìêáíó=~å~äóëí=~î~áä~Äáäáíó
Merlynn – Security/Intelligence sectors
Merlynn - Insurance and Industrial sectors
fåëìê~åÅÉ=ïÜÉêÉ=íÜÉ=íÉÅÜåçäçÖó=áë=ÇÉéäçóÉÇ=áå=ãìäíáéäÉ=~êÉ~ë=áåÅäìÇáåÖW
o Claims management
o Underwriting
o Broker support
mêçàÉÅí=~åÇ=Åçêéçê~íÉ=risk management ïÜÉêÉ=íÜÉêÉ=áë=~=åÉÉÇ=íç=~ëëÉëë=~åÇ=ã~å~ÖÉ=ÅçãéäÉñ=êáëâ=áå=î~êáÉÇ=
äçÅ~íáçåë
Merlynn - Giving back
• qÜÉ=My Choices Foundation ~áãë=íç=ÖáîÉ=ïçãÉå=~åÇ=Öáêäë=íÜÉ=ÅÜçáÅÉ=íç=äáîÉ=
äáîÉë ÑêÉÉ=Ñêçã=îáçäÉåÅÉI=~ÄìëÉ=~åÇ=Éñéäçáí~íáçn.
• qÜÉó=~Åí=íÜêçìÖÜ=íïç=çéÉê~íáçåë=focusing on two important issuesW
Stop domestic violence : Operation Peacemakersfpflk=W=ëíçé=ÇçãÉëíáÅ=îáçäÉåÅÉ=~åÇ=ÅêÉ~íÉ=ãÉ~åáåÖÑìä=ÅÜ~åÖÉ=áå=ïçãÉåÛë=äáîÉë=
ïáíÜ=íÜÉáê=äçÅ~ä=ÅçããìåáíáÉëK
End sex trafficking : Operation Red Alertsfpflk=W=^=ìåáíÉÇ=îçáÅÉ=íç=ÉåÇ=ä~êÖÉ=ëÅ~äÉ=ëÉñ=íê~ÑÑáÅâáåÖ=áå=fåÇá~=Äó=OMOR
^Åíáçåë=~åÇ=píê~íÉÖó
BEE Strategy - Alviva Black Ownership
B-BBEE ICT Charter Requirement
30%
Current Shareholding
26%
Short Term Objective
31%
Long Term Objective
51%
Alviva - Potential Group Structure
DistributionSolutions
and Integrators
Applications and IP
Financial Services
Acquisition - Strategy
SCALABLE
cçÅìë=çå=ÅìäíìêÉ=ÑáíI=ëÅ~ä~ÄäÉ=fq=Åçãé~åáÉë=
ïáíÜ=íê~Åâ=êÉÅçêÇ=~åÇ=èì~äáíó=áåJÜçìëÉ=fm
FOCUSED
`óÄÉêëÉÅìêáíóI=^fI=cáåíÉÅÜI=^ééäáÅ~íáçå
pçÑíï~êÉI=kÉíïçêâáåÖ=~åÇ=`äçìÇ
FOREIGN EARNINGS
mçíÉåíá~ä=cçêÉáÖå=ÅìêêÉåÅó=É~êåáåÖë=áå=íÜÉ=rhI=rp^=~åÇ=^ìëíê~äá~
MEDIUM SIZED COMPANIES
^Åèìáëáíáçå=çÑ=ãÉÇáìã=ëáòÉÇ=Åçãé~åáÉëI=ã~ñáãìã=NMB=çÑ=ã~êâÉí=Å~éI=åç=ëí~êíJìéë=çê=ëã~ää=ÄìëáåÉëëÉë=
ìåäÉëë=ëíê~íÉÖáÅ
Key Drivers - That bring our business model to life
WE INVEST IN HIGH-QUALITY COMPLEMENTARY OPERATIONS
^äîáî~=ÉåëìêÉë=íÜ~í=íÜêçìÖÜ=Åçåíáåìçìë=áåîÉëíãÉåí=áå=êÉéä~ÅáåÖ=~ëëÉíë=~åÇ=áåÅçêéçê~íáåÖ=åÉï=íÉÅÜåçäçÖóI=ÉåÜ~åÅÉÇ=Äó=~å=ÉÑÑÉÅíáîÉ=ïçêâéä~ÅÉ=
áãéêçîÉãÉåí=éêçÖê~ããÉI=~=ÄÉëíJÅçëí=ÅìäíìêÉ=~åÇ=î~äìÉJ~ÇÇÉÇ=çÑÑÉêáåÖ=~êÉ=ÑçëíÉêÉÇ=íç=ëìééçêí=ÖêÉ~íÉê=éêçÇìÅíáîáíó=~åÇ=ÉÑÑáÅáÉåÅó=áãéêçîÉãÉåíëK
WE INVEST IN OUR PEOPLE
qÜêçìÖÜ=ÅçãéÉíáíáîÉ=êÉãìåÉê~íáçå=ëíêìÅíìêÉëI=í~êÖÉíÉÇ=íê~åëÑçêã~íáçå=éêçÖê~ããÉëI=Äêç~ÇJÄ~ëÉÇ=ëâáääë=ÇÉîÉäçéãÉåí=éêçÖê~ããÉëI=ÇáîÉêëáíóI=îáëáÄäÉ=ëìÅÅÉëëáçå=éä~åë=~åÇ=~=ÅìäíìêÉ=çÑ=
éêçãçíáåÖ=Ñêçã=ïáíÜáåI=^äîáî~=ÉåëìêÉë=íÜ~í=ëí~ÑÑ=ÇÉîÉäçéãÉåí=~åÇ=êÉíÉåíáçå=ÉãÄÉÇ=ëíêçåÖ=ëìééçêí=Ñçê=íÜÉ=dêçìéÛë=äçåÖJíÉêã=Öç~äëK
WE FOCUS ON PERFORMANCE, RELIABILITY AND SUSTAINABILITY
qÜÉ=ÉñáëíÉåÅÉ=çÑ=âÉó=ÄÉëí=éê~ÅíáÅÉë=ìåÇÉêéáååáåÖ=ÖççÇ=Åçêéçê~íÉ=ÅáíáòÉåëÜáé=~åÇ=íÜÉ=áÇÉåíáÑáÅ~íáçå=çÑ=íÜÉ=ã~áå=ÄìëáåÉëë=êáëâë=~åÇ=éêçÅÉÇìêÉë=
Ñçê=çåÖçáåÖ=êáëâ=Åçåíêçä=~åÇ=ã~å~ÖÉãÉåíI=ÇçÅìãÉåíÉÇ=í~êÖÉíë=Ñçê=ëíê~íÉÖáÅ=ÖêçïíÜ=éä~åë=~åÇ=ëíê~íÉÖáÅ=çÄàÉÅíáîÉë=~ë=ïÉää=~ë==ëóëíÉãë=íç=ã~å~ÖÉ=~åÇ=éêçíÉÅí=âÉó=~ëëÉíëI=^äîáî~=ëíêáîÉë=íç=ÉåëìêÉ=~=äçåÖJíÉêã=
ëìëí~áå~ÄäÉ=êÉëìäíë=ÇêáîÉå=éÉêÑçêã~åÅÉ=ïáää=ÄÉ=ÇÉäáîÉêÉÇK
WE ARE PASSIONATE ABOUT OUR EXTERNAL RELATIONSHIPS
^äîáî~=áë=é~ëëáçå~íÉ=~Äçìí=çìê=ÉåÖ~ÖÉãÉåí=ïáíÜ=ÉñíÉêå~ä=ëí~âÉÜçäÇÉêëI=~åÇ=~=ÅçããáííÉÇ=çêáÉåí~íáçå=íçï~êÇë=íÜáë=áÇÉ~ä=áë=ëìééçêíÉÇ=Äó=~=ÅìäíìêÉ=çÑ=çéÉå=~åÇ=íê~åëé~êÉåí=ÅçããìåáÅ~íáçåI==
éêçÇìÅí=êÉëéçåëáÄáäáíóI=èì~äáíó=ã~å~ÖÉãÉåí=ëóëíÉãëI=ëí~íìíçêó=~åÇ=êÉÖìä~íçêó=Åçãéäá~åÅÉI=ÅçìéäÉÇ=ïáíÜ=~=ëíêçåÖ=ëÉåëÉ=çÑ=ëÉäÑJêÉÖìä~íáçå=
~åÇ=ÜáÖÜ=ÉíÜáÅ~ä=ëí~åÇ~êÇëK
“Longevity in this business is about being able to
re-invent yourself or invent the future”
Satya Nadella, CEO, Microsoft Corporation
Q & A
Thank you
^åó=êÉÑÉêÉåÅÉ=íç=ÑìíìêÉ=éÉêÑçêã~åÅÉ=áåÅäìÇÉÇ=áå=íÜáë=éêÉëÉåí~íáçå=Ü~ë=åçí=ÄÉÉå=êÉîáÉïÉÇ=åçê=êÉéçêíÉÇ=çå=Äó=^äîáî~Ûë=~ìÇáíçêëK
E&OE - Errors and omissions excluded.
