Ioco Limited · JSE:IOC
Ioco — H1 2024 Earnings Presentation
28 slides from Ioco's earnings presentation, March 2024
Slide 1: H1-24 Results
H1-24 RESULTS
Slide 2: Operational Overview
Operational Overview Stephen van Coller Chief Executive Officer
Slide 3: The past 5 1/2 years milestones (2019-2021)
The past 5 1/2 years milestones 2019 Liquidity Credibility Sep ’18 – 1 Oct 2018 Feb 2019 March 2019 July 2019 July 2019 Oct 2019 Dec 2019 Transparency June ’19 Growth Efficiency Reorganised into three 70% sale of Release of ENSAfrica Turnaround plan initiated Appointed PWC as Appointed Stephen R750m
Slide 4: The past 5 1/2 years milestones (2022-2023)
The past 5 1/2 years milestones 2022 Efficiency Talent Feb 2022 April 2022 May 2022 June 2022 July 2022 November Transparency 2022 Growth Internal launch of GET Recognition by Disposal of Significant client successes Creditability Sale of Health and Announced an operating profit Negotiated with stra
Slide 5: Business Summary
Business Summary Highlights Low lights ↑ GET strategy bearing fruit ↓ Negative Local and Global political and economic issues continue ↑ Digital Enablement revenue grew 9% ↓ Public Sector delays continue ↑ International Revenue grew 11 % ↓ Profitability further affected by once off items of R73m ↑ O
Slide 6: Enable & Grow
Talent Include Enable & Grow Male | 49% Female | 51% Total Spend Differently Abled and AIC | 65 % of total workforce Youth | R12 783 556.20 Employee Resource Group launched| People with Disabilities | 120 1 x LGBTQIA+ SAICA Internships| 4 Care Employee Experience 92% | of leavers would return to EOH
Slide 7: Investing in EOH makes a difference....
Investing in EOH makes a difference.... Our People Our Our Women Our Country matter Communities matter matter matters Community Development Women Empowerment EOH solves for Opened second Period Poverty Hub ESD HUB launched in celebration of unemployment 2nd year in a row in KZN -20 jobs IWD 2024
Slide 8: Financial Overview
Financial Overview Marialet Greeff Chief Financial Officer
Slide 9: HY24 financial summary
HY24 financial summary HY2024 HY2023 Rm Unaudited Continuing Discont. Unaudited Continuing Discont. Revenue 3,146 3,146 - 3,244 3,215 29 Digital Enablement 882 - 790 - Infrastructure Services & Applications 982 - 1,003 29 Operational Technologies 618 - 728 - (incl Nextec Legacy) EasyHQ 382 - 429 - I
Slide 10: Revenue incl intersegment sales (R'm)
Revenue incl intersegment sales (R’m) Strong performance in Digital Enablement, Infrastructure Services & International offset by economic headwinds facing customers serviced by other segments 9% iOCO South Africa 918 844 HY23 HY24 Sold operations 4% (20%) (24%) 589 565 563 (2%) 534 446 431 427 426
Slide 11: Gross Profit incl intersegment sales & EBITDA (R'm)
Gross Profit incl intersegment sales & EBITDA(R’m) Economic slow-down placing pressure on margins Gross Profit EBITDA (excl sold entities & once-offs) HY23 HY24 Sold operations iOCO South Africa Total Total 11% Reduction: Reduction: R95m 207 246 R95m 223 27% (29%) 26% (25%) 192 (12%) (9%) 169 34% 16
Slide 12: iOCO South Africa EBITDA movement (R'm)
iOCO South Africa EBITDA movement (R’m) While the economic conditions have resulted in muted growth, operations have largely stablised from H2’23 with a forward-looking focus on cost rationalisation 22,753 183,064 2,050 180,119 (1,179) (9,802) 7,581 11,672 ,668 147,916 (36,688) H1'23 Digital Infrast
Slide 13: EasyHQ & iOCO International EBITDA movement (R'm)
EasyHQ & iOCO International EBITDA movement (R’m) EasyHQ business remains cyclical, however, the current economic climate places pressure on top line growth. iOCO International continues to target a 10% EBITDA margin EasyHQ iOCO International (9,0) (18,102) 16,706 39,391 (15,617) 64,974 (46,633) 36,
Slide 14: Normalised Continuing Loss After Tax (R'm)
Normalised Continuing Loss After Tax (R’m) Excluding once offs the Group continues to trend towards break even 21,0 (18,310) 6,683 19,780 4,0 21,610 (91,383) Reported IFRS impact Mehleketo Goodwill Legacy SARS Investments Normalised Loss After Tax on legacy items Impairment Matter Loss After Tax
Slide 15: Investments (R'm)
Investments (R’m) Continued focus on long term outlook of the Group Investment Type Area of Investment 19% 11 28% R26m 7 53% 3 3 2 Infrastructure Se rvices International Corporate Rocket Lab Capital Expenditure Operating Expenses Cost of Sales Capital Expenditure Operating Expenses Cost of Sales The
Slide 16: Corporate Overheads (R'm)
Corporate Overheads (R’m) Continued focus on streamlining 20% 26% 5% 13% Forecast for H2'24 410 198 Actual 326 99 241 228 99 FY20 FY21 FY22 FY23 FY24
Slide 17: Working Capital (R'm)
Working Capital (R’m) Continued management focus avoiding cash leakage 2 002 1 960 1 772 334 Trade and other Payables 253 171 83 74 91 Trade and Other Receivables Inve ntory Net w orking capital (1 603) (1 742) (1 879) HY23 FY23 HY24 Trade Receivables and Payables difference to balance sheet is as a
Slide 18: Cash flow (R'm)
Cash flow (R’m) Continued cash management remains key focus Onerous Contracts ; 39% SIU; 61% 110,462 Includes R8m cash in (28,680) Assets Held for Sale (24,821) and excludes R3m in exchange losses 128,927 (37,737) 333,994 (18,237) (38,980) 14,786 254,685 239,899 (55,115) 204,080 Opening Cash Working
Slide 19: Legacy Payments (R'm)
Legacy Payments (R’m) Final payments expected by FY26 with SARS matter now closed out 203 19 42 4 25 2 75 3 112 42 20 24 18 6 2 FY24 FY25 FY26 SARS Pia Solar Mehle keto DOD DWS AutoSpec
Slide 20: Debt (R'm)
Debt (R’m) With the net capital raise of R550m, the Group has managed to right-size its capital structure Capital Portion of Debt (excluding restructuring reserve) Finance Charges 27% 17% 305 36% 18% 2 483 13% 221 2 065 48% 27% 180 1% 157 1 332 114 687 676 FY20 FY21 FY22 FY23 HY1'24 FY20 FY21 FY22 F
Slide 21: Disposal progress
Disposal progress On track to generate R75m from disposal proceeds R millions 50 155 150 30 Paid 20 Binding 42 In Progress 14 28 35 22 6 Q1 Proceeds Q2 Proceeds Escrow Release Q3 Expected Q4 Expected Total (Paid) (Paid) Proceeds Proceeds
Slide 22: Balance Sheet
Balance Sheet R’m HY24 FY23 R’m HY24 FY23 Non-current assets Equity Stated capital 4 775 4 775 Property, plant and equipment 154 145 Other reserves 77 112 Intangible assets 83 94 Accumulated loss (4 375) (4 325) Equity and Equity attributable to EOH 476 562 Goodwill 648 669 Liabilities Assets Non-co
Slide 23: Outlook
Outlook
Slide 24: Outlook
The central growth focus is partnering with both key OEM’s The tough economic and and top customers assisting political conditions globally and them to realise their in RSA are set to continue but digital strategies create both opportunities and threats EOH will continue to drive efficiencies to inv
Slide 25: Leadership
Leadership Fatima Newman Marius de la Rey Brian Harding CEO EasyHQ CEO iOCO SA CEO iOCO International Exco Member from April 2019 Exco Member from April 2019 Exco Member from October 2019
Slide 26: Annexure
Annexure nN
Slide 27: AFS Segmental Report
AFS Segmental Report Revenue, gross profit and adjusted EBITDA Unaudited for the six months to 31 January 2024 1 Digital Infrastructure Operational Fioures in Revd thouserd (ia Services Technologies EasyHQ International Reconciliation” External revenue 881 894 982 218 617 945 381 691 281 807 = 3145
Slide 28: AFS Segmental Report (cont)
> AFS Segmental Report (cont) Unaudited restated" for the six months to 31 January 2023 TT Digital Infrastructure Operational Figures in Rand thousand Enablement Services Technologies. EasyHQ International Reconciliation” External revenue 7901631031329 721 145 429 321 265 260 = 3243818 Hardware sale