Mustek Limited · JSE:MST
Mustek — FY2023 Earnings Presentation
23 slides from Mustek's earnings presentation, Sep 19, 2023
Slide 1: Results Announcement for the year ended 30 June 2023
RESULTS ANNOUNCEMENT for the year ended 30 June 2023 Virtual Presentation Date | 19 September 2023 Time | 11h00 Presentation starts soon
Slide 2: Results announcement for the year ended 30 June 2023
Results announcement for the year ended 30 June 2023 Virtual Presentation Date | 19 September 2023 Time | 11h00 Presentation starts soon
Slide 3: Presenters
PRESENTERS Hein Engelbrecht Shabana Aboo Baker Ebrahim Group CEO Group FD heine@mustek.co.za ShabanaA@mustek.co.za Results of the year ended 30 June 2023 3
Slide 4: Group Salient Features
GROUP SALIENT FEATURES REVENUE EBITDA HEPS up up up R10.1bn 14% R508m 12% 375 cents 5% NAV CASH DPS per share generated from OPS up down up R27,24 14% R198m 35% 77 cents 1% Results of the year ended 30 June 2023 4
Slide 5: Group Overview
GROUP OVERVIEW Established in Listed on the JSE 1987 in 1997 Our mission is centred on anticipating stakeholder needs for long-term End-to-end IT sustainability and sustainable National technology presence solutions provider Results of the year ended 30 June 2023 5
Slide 6: Group Structure
GROUP STRUCTURE Manufacturing Service Distribution Training assembly and support Results of the year ended 30 June 2023 6
Slide 7: Group Brand Portfolio
GROUP BRAND PORTFOLIO Edge / Client Gaming Software / Cloud Results of the year ended 30 June 2023 7
Slide 8: Group Brand Portfolio
GROUP BRAND PORTFOLIO Network / Infrastructure / Servers Sustainable energy Security & Compliance Training & Enablement Results of the year ended 30 June 2023
Slide 9: Financial Summary
FINANCIAL SUMMARY FY19 FY20 FY21 FY22 FY23 CAGR Revenue (R billion) 5.8 6.4 8.0 8.9 10.1 15% Gross Profit (R million) 818 910 1 188 1 273 1 412 15% GP margin (%) 14.0% 14.2% 14.9% 14.3% 13.9% EBITDA (R million) 243 247 516 456 508 20% Net Profit (R million) 107 88 296 225 220 20% HEPS (cents) 139 12
Slide 10: Revenue
REVENUE R (billion) 10.1 • Organic growth and relevance 8.9 8.0 • Sustainable energy • Product portfolio 6.4 5.8 • Mobility category under strain Jun 2019 Jun 2020 Jun 2021 Jun 2022 Jun 2023 Results of the year ended 30 June 2023 10
Slide 11: Gross Profit Margin
GROSS PROFIT MARGIN % 14.8% • Stabilisation of margins 14.2% 14.3% • Over supply of entry level notebooks 14.0% 13.9% Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Results of the year ended 30 June 2023 11
Slide 12: Profit from Operations
PROFIT FROM OPERATIONS R (million) 472 454 407 • Strong operational performance • Expenses well controlled 218 201 Jun 2019 Jun 2020 Jun 2021 Jun 2022 Jun 2023 Results of the year ended 30 June 2023 12
Slide 13: Net Financing Cost vs Average Interest Rates
NET FINANCING COST VS AVERAGE INTEREST RATES Finance cost Average prime rate SOFR 160.00 12.00% 10.2% 140.00 9.4% 10.00% 120.00 7.0% 7.4% 8.00% 100.00 6.00% 80.00 3.8% 4.00% 60.00 1.2% 2.00% 40.00 0.2% 0.1% 20.00 0.00% 101 70 70 151 - -2.00% FY2020 FY2021 FY2022 FY2023 Results of the year ended 30 J
Slide 14: HEPS (cents)
HEPS (cents) 442 375 357 • Earnings growth and sustainability 139 127 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 # of 70m 70m 66m 59m 58m shares Results of the year ended 30 June 2023 14
Slide 15: Dividend Per Share (cents)
DIVIDEND PER SHARE (CENTS) 90 76 77 • 20% payout ratio maintained 30 26 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Results of the year ended 30 June 2023 15
Slide 16: PE Ratio
PE RATIO Results of the year ended 30 June 2023 16
Slide 17: NAV and NTAV per Share
NAV AND NTAV PER SHARE NAV per share (cents) Tangible NAV per share (cents) 2,724 2,395 2,250 2,046 1,826 1,598 1,546 1,494 1,204 1,126 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Results of the year ended 30 June 2023 17
Slide 18: Inventory
INVENTORY Inventory (billions) vs days 3 101 102 3 94 93 • Elevated stock levels 2 • Healthy mix 68 • Working capital management 2 focus 1 1 1.3 1.4 1.3 2.1 2.4 - Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 On hand In transit Inventory days (excl GIT) Results of the year ended 30 June 2023 18
Slide 19: Trade Receivable Days
TRADE RECEIVABLE DAYS 55 55 52 • Debtor arrangements 51 • Working capital management 49 focus Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Results of the year ended 30 June 2023 19
Slide 20: Cash Generated from Operations
CASH GENERATED FROM OPERATIONS 545 495 322 284 5 20 H1:20 H2:20 H1:21 H2:21 H1:22 H2:22 H1:23 H2:23 -114 -125 Results of the year ended 30 June 2023 20
Slide 21: Strategic Priorities
STRATEGIC PRIORITIES Structural improvements in working capital and liquidity Unlocking the value in data driven decision making and process automation Grow product lines in sustainable technologies Grow and develop the Group’s human capital Results of the year ended 30 June 2023 21
Slide 22: Opportunities
OPPORTUNITIES Strategic Cybersecurity Diversification of partnerships and solutions product portfolio collaborations Digital Focusing on transformation sustainable and cloud technologies solution offerings Results of the year ended 30 June 2023 22
Slide 23: Thank You
SUSTAIN AB Es THANK YOU