1 / 41

Investor Presentation

Investor Presentation. May 2002. Content. Introduction Financial Results Group Operations Issues Prospects Shareholding. Salient features. Six months ended 31 March 2002. Revenue R2,5bn +17% EBITDA R243m +21% HEPS 101c +30% Interim dividend 30 cents +25%. Growth drivers.

arista
Download Presentation

Investor Presentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Investor Presentation May 2002

  2. Content • Introduction • Financial Results • Group Operations • Issues • Prospects • Shareholding

  3. Salient features Six months ended 31 March 2002 • Revenue R2,5bn +17% • EBITDA R243m +21% • HEPS 101c +30% • Interim dividend 30 cents +25%

  4. Growth drivers • Acquisitions • Revenue growth • R/$ exchange rate • Market share • Export growth • Improved efficiencies

  5. Recent acquisitions • Nashua Mobile • Increased stake to 100% • Nedcor’s 37,3% & Metropolitan Life’s 4,7% • Effective 1 Dec 2001 • R261,6 million - Includes goodwill of R220,7m • 10 000 Vodacom contract subscribers • Be Clear and Simple • R700 per active subscriber • Effective 1 February 2002

  6. Recent acquisitions • Siemens Telecommunications • Increased stake to 40% • Acquired Marconi’s 21,5% Dec 01 • Siemens exercised 9% share option in Jan 02 • 12,5% = R161,3m • Includes goodwill of R137,7m

  7. Disclosure • Segmental analysis regrouped • Strategic focus • Comparative historical information

  8. Reunert structure

  9. Reunert structure

  10. Reunert structure

  11. Financial Results

  12. Six Months ended % Change R Millions 31 March 2002 2001 17 2 469,4 Revenue 2 112,2 21 242,9 EBITDA 200,4 (126) (37,8) Depreciation & amortisation (16,7) 12 205,1 Operating profit 183,7 (54) 15,5 Interest & Dividends 33,5 2 220,6 PBT 217,2 (7) (79,2) Taxation (73,8) (2) 141,4 PAT 143,4 69 48,3 Associates 28,6 25 (14,5) Minorities (19,3) Headline earnings adjustments 14,0 - Amortisation - (0,1) - Other (0,1) 24 189,1 Headline earnings 152,6 30 101,2 HEPS (cents) 77,7 29 99,2 Diluted HEPS (cents) 76,7 25 30,0 DPS (cents) 24,0 3 9,8 EBITDA % 9,5 1 33,8 Tax rate % before amortisation 34,0 Group Income Statement

  13. R Millions 2001 2002 NON-CURRENT ASSETS 1 083,2 1 609,0 155,6 Fixed Assets 152,2 10,9 Goodwill including associates 386,0 179,4 Investments 237,9 748,2 R C & C Finance Debtors 832,9 CURRENT ASSETS 1 525,4 1 380,3 432,2 Inventory & contracts in progress 509,6 570,5 Accounts Receivable 673,2 522,7 Cash 197,5 TOTAL ASSETS 2 608,6 2 989,3 SHAREHOLDERS' FUNDS 1 025,4 1 242,4 (226,2) Shares bought back (234,6) NON-CURRENT LIABILITIES (NET) 13,2 9,5 CURRENT LIABILITIES 1 796,2 1 972,0 636,6 R C & C Finance Borrowings 734,6 1 112,7 Accounts payable, provisions & tax 1 237,4 46,9 Shareholders for normal dividend - TOTAL EQUITY & LIABILITIES 2 608,6 2 989,3 Group Balance Sheet 31 March

  14. 6 months ended R Millions 31 March 2002 2001 EBITDA 242,9 200,4 Working Capital (Increase)/Decrease (2,7) 7,7 Net interest & dividends received 31,9 56,3 Taxation Paid (165,4) (105,0) Dividends Paid (143,7) (120,2) CASH GENERATED BY OPERATIONS (37,0) 39,2 Capital Expenditure (13,2) (17,2) Shares bought-back - (209,5) Purchase of businesses (456,8) (1,8) Other Movements 4,2 2,6 (502,8) (186,7) Net reduction in cash and cash equivalents Group Cash Flow

  15. Dividends 1.9 1.9 2.4 2.5 1.9 * Excludes Special dividend of 250 cents

  16. Revenue % contribution

  17. Operating profit % contribution

  18. Group Operations

  19. Office Systems • Revenue R420m +29% • Operating profit R71m +91% • Nashua • Strong growth • Digital conversion continuing • High % annuity income

  20. Office systems • IQ Works • Recently started breaking even • Satisfying growth in sales • Strong synergy with Nashua Mobile • RC&C Finance Company • Good growth in book • No increase in bad debts • Royce Imaging • Sales & profit growth • Support Nashua brand of products

  21. Consumer products • Revenue R1 387m +20% • Operating profit R78m +42% • Nashua Mobile • Panasonic • Futronic • Saco Systems

  22. Consumer products • Nashua Mobile • Internal re-organisation • Least Cost Routers • Corporate Customers • Clear focus at top end of corporate market • 260 000 Contract subscribers • ARPU over R500 per month • 11 % Churn lowest in market • Focus on quality service & product offering • SMS gateway • R&D facility opened in Stellenbosch

  23. Consumer products • Panasonic • Benefit from improved business model • Direct sales to customer - Leaf • Indent • Retail • Introduced Futronic • Focus on lower end of consumer market • Sourcing additional product

  24. Reunert 40.0% Siemens 60.0% Telecommunications • Revenue R867m +57% • Operating profit R100m +112% • Siemens Telecommunications • Excellent growth • R/$ exchange rate • Progress on roll-out of Cell C • No overdue debts • Well positioned to benefit from SNO • Eskom’s Easitel • 30% of total turnover is into Africa • Cellular opportunities in RSA - GPRS (2.5G); 3G

  25. Teledensity Gambia Fixed Line 2.56% Cellular 0.43%Internet Subs’ 4 000 Burkina Faso Fixed Line 0.45% Cellular 0.99% Internet Subs’ 10 000 Nigeria Fixed Line 0.43 % Cellular 0.03% Internet Subs’ 200 000 Sudan Fixed Line1.24% Cellular 0.29% Internet Subs’ 30 000 DRC Fixed Line 0.04% Cellular 0.93% Internet Subs’ 500 Eritrea Fixed Line 0.8% Cellular 0.00 % Internet Subs’ 5 000 Guinea Conakry Fixed Line 0.79% Cellular1.04% Internet Subs’ 8 000 Uganda Fixed Line 0.28% Cellular 1.55% Internet Subs’ 40 000 Congo Fixed Line 0.75% Cellular 4.57%Internet Subs’ 500 Zambia Fixed Line 0.85% Cellular 0.81% Internet Subs’ 20 000 Angola Fixed Line 0.53% Cellular 0.28% Internet Subs’ 30 000 Tanzania Fixed Line 0.49% Cellular 0.95% Internet Subs’ 115 000 Namibia Fixed Line 5.94% Cellular 6.07% Internet Subs’ 30 000 Malawi Fixed Line 0.44% Cellular 0.46% Internet Subs’ 15 000 Zimbabwe Fixed Line 1.91% Cellular 2.76%Internet Subs’ 30 000 Mauritius Fixed Line 23.52% Cellular 15.49% Internet Subs’ 87 000 Botswana Fixed Line 9.27% Cellular 16.40% Internet Subs’ 15 000 Lesotho Fixed Line1.03% Cellular1.32% Internet Subs’ 1 000 RSA Fixed Line 11.36% Cellular 22.77% Internet Subs’ 2 400 000 Swaziland Fixed Line 3.19% Cellular 4.52% Internet Subs’ 10000 Mozambique Fixed Line 0.44% Cellular 0.62% Internet Subs’ 30 000 Madagascar Fixed Line 0.36% Cellular 0.61% Internet Subs’ 30 000 Feb 2002 © Siemens Mobile Network Fixed Network

  26. South Africa

  27. Reutech • Revenue R186m -26% • Operating profit R12m -73% • Difficult 6 months • Substantial order received • Major increase in revenue and earnings FY03+ • Excellent prospects to grow order book

  28. Electrical Engineering • Revenue R268,9m +46% • Operating profit R41,9m +39% • CBI • 26% revenue growth from Mitsubishi product range • 71% from exports • Mitsubishi & meter products lower margins than traditional CBI products • Export to Europe, USA, Africa & Far East

  29. CBI Ratio Export/Total Sales

  30. Pirelli 10.5% Marconi 50.9% Pirelli 50.0% Reunert African Cables Reunert ATC 50.0% 38.6% Cables • Revenue R295,6m +1% • Operating profit R6,0m -82%

  31. Cables • African Cables • Performance continued • Gaining market share • Improved efficiencies • Strong order book • BEE

  32. African Cables

  33. Cables • ATC • Sporadic copper demand • Weak demand for optical fibre continues • Restructured business to reduce costs • No short-term improvement expected

  34. Issues & Prospects

  35. Black Economic Empowerment • Equity participation • Subsidiaries • Reunert • Franchisees • Expected Revenue of R95m by Sept 02 • Employment equity • Agreed plans in place • Focus on senior management & professional level

  36. Black Economic Empowerment Community involvement • Reunert College • 400+ Students since 1993 • Maths, Science & English • Outsourcing & subcontracting

  37. Prospects • Continued strong growth for 2nd half expected

  38. Thank you Questions

  39. Shareholding

  40. Equity • Shares in issue • In issue 204 060 264 • Shares held by subsidiary 17 168 058 • No additional shares bought back since May 2001 • AGM approval • Ave value traded R19,7m/week

  41. Major institutional shareholders

More Related