1 / 22

Jasco Electronics: Empowered Growth in Technology Sector

Learn about Jasco Electronics, a leading technology company with a strong BEE profile, sustainable growth, and a focus on empowerment.

bmina
Download Presentation

Jasco Electronics: Empowered Growth in Technology Sector

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. JOE MADUNGANDABAIncoming CEO: JASCO ELECTRONICS HOLDINGS LTDMARTIN LOTZCOO: JASCO ELECTRONICS HOLDINGS LTDDr STUART ROBERTSONOutgoing CEO: JASCO ELECTRONICS HOLDINGS LTD Nedcor mid-cap conference 1 August 2005

  2. INTRODUCTION & JASCO’S EMPOWERMENT PROFILE Joe Madungandaba Incoming CEO

  3. CURRENT SHAREHOLDER PROFILE • BEE/CIH (35,1%) • Public (33,2%) • Management and directors (21,5%) • Institutions (10,2%) .

  4. JASCO’S BEE PROFILE • Currently a BEE entity (51% voting rights) • Will become black owned in 2008 (“conversion” of prefs to ords based on CPIX+5% hurdle rate) • 2nd most empowered company in listed industrials • Broad-based empowerment independently verified by EmpowerDEX “A” rating • BEE status has already won new business and brought many new opportunities • BEE partners active on the Board/Exco

  5. STEP 1. ACQUIRE TASSLELANE ORIG. JASCO S/HOLDERS CIH STEP 2. ISSUE 21m ORDS & 30m REDEEMABLE PREFS & OBTAIN WAIVER OF OFFER TO MINORITIES 49m ORDS ORIG. JASCO S/HOLDERS CIH 30m PREFS 51% VOTING CONTROL 49m ORDS 21m ORDS CIH ORIG. JASCO S/HOLDERS 51% MAJORITY CONTROL 49m ORDS 51m ORDS BEE TRANSACTION 2003 BEE Entity 2003 – 2008 STEP 3. PRO-RATA CONVERSION OF PREFS TO ORDS BASED ON CPIX+5% HURDLE RATE FOR GROWTH FROM 2003-2008 2008 BLACK OWNED Co. 2008+

  6. BEE PARTNERS - THE CIH GROUP • Founded in 1995 • Led by Dr Anna Mokgokong (Chair) & Joe Madungandaba (CEO) • Entrepreneurial business with turnover currently in excess of R4 billion p.a. • Key investment strategy focused on: • Businesses involved in infrastructure development • Medium/large companies with above average growth potential & established management • Ensuring active/ongoing management involvement

  7. THE CIH GROUP Corporate Finance & Deal Flow Richard Came Nic Venter CZ ELECTRONICS DARTCOM MCT TELECOMS TOFO COSOURCE SUKUMANI TELECOMS Q MUZIK MALESELA TAIHAN ELECT. CABLE (M-TEC) MALESELA TECH. SERVICES MALESELA POWER PANELS MT&D NU-LEC CONLOG JASCO ELECTRONICS

  8. JASCO’S PERFORMANCE

  9. OPERATIONAL OVERVIEW Martin Lotz Group COO

  10. GROUP STRUCTURE 3X OPERATING DIVISIONS An integrator and supplier of surveillance & other security systems A provider of specialised, value added solutions, products and services to telecoms networks A focused component manufacturer to the electrical and electronics industries

  11. BUSINESS MODEL (33%) (25%) (50%) (25%) (66%)

  12. PMR/RF EQUIP. ANTENNAS MASTS HI SITES ACCESS NETWORK EQUIP. (INCL. TEST & BILLING S/WARE) CONNECTORS AND JOINT ENCLOSURES WIRING HARNESSES FOR FRIDGES AND STOVES PLASTIC EXTRUDED COMPONENTS ELECTRONIC SUB-ASSEMBLIES FOR AUTO’s POOL CHLORINATORS PRODUCTS AND SERVICES TELECOMS MANUFACTURING SECURITY • TURNKEY ELEC. SECURITY SYSTEMS • CCTV SURVEILLANCE SYSTEMS • ACCESS CONTROLS SYSTEMS • ALARMS • PNEUMATIC TUBE SYSTEM

  13. COMPETITOR ANALYSIS Security • Intervid • Provicom • Siemens (ESD) • Cuincidence/ BAC* • Guarding Co’s* Telecoms • Grintek • Spescom • Andrews* • Sietel* • Alan Dick* • Altron* Manufacturing • Smaller engineering shops* • Backward integration by customers* * Combination of a competitor and/or customer and/or a supplier

  14. HIGHLIGHTS - 2005 • Consolidation and turnaround complete • Loss-makers have been turned around • All operating divisions profitable • Cash flow significantly improved • Debt eliminated and balance sheet significantly strengthened

  15. HISTORICAL PROFIT FROM OPERATIONS

  16. FUTURE GROWTH & PROSPECTS Dr Stuart Robertson Outgoing CEO

  17. JASCO’S PERFORMANCE

  18. Strong BEE credentials KEY GROWTH DRIVERS Export Own IP NEPAD infrastructure build Sustainable growth & positive outlook Ongoing need for Security Telecoms Growth in SA & Africa Consumer demand (middle market)

  19. STRATEGIC INTENT I • Sustainable organic growth: • Exploit experience and BEE status to grow organically • Expand new products and services in de-regulated telecoms environment • Grow annuity type income to reduce earnings volatility • Continue generating cash to strengthen balance sheet • Use cash cows to fund organic growth • Maintain dividend payments (3X cover) • Sustained delivery in all businesses

  20. STRATEGIC INTENT II • Acquisitive growth: • M&A activity in SA largely centered around BEE deals • Use Jasco’s BEE status & partners to expand portfolio of businesses in the ICTE sector • Consider companies within the CIH stable to exploit synergies in the technology sector • Utilise CI Ventures’ experience and “venture capital” resources to filter potential acquisitions • C I Ventures’ incubator provides ongoing deal flow & helps reduce Jasco’s risk

  21. OUTLOOK 2006 AND BEYOND • Organic growth underpinned by well established, diverse businesses in growing markets (incl. exports) that are cash generative • Ongoing cash generation and strong balance sheet can be used to fund the organic growth • BEE credentials and “hands on” BEE partners underpin future growth potential, especially by bringing acquisition opportunities/consolidation • Major BEE shareholders with long term goals • Positive prospects

  22. QUESTIONS?

More Related