Ioco Limited · JSE:IOC
Ioco — H1 2024 Earnings Presentation
26 slides from Ioco's earnings presentation, April 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
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
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: 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 6: 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 7: 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 8: 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 9: Financial Overview
Financial Overview Marialet Greeff Chief Financial Officer
Slide 10: 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 11: 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 12: 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 13: 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
Slide 14: 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
Slide 15: 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
Slide 16: 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 Services International Corporate Rocket Lab Capital Expenditure Operating Expenses Cost of Sales Capital Expenditure Operating Expenses Cost of Sales The
Slide 17: 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 18: Working Capital (R'm)
Working Capital (R’m) Continued management focus avoiding cash leakage 2,002 1,960 1,772 253 334 Trade and other Payables 171 83 74 91 Trade and Other Receivables Inventory Net working capital (1,603) (1,742) (1,879) HY23 FY23 HY24 Trade Receivables and Payables difference to balance sheet is as a r
Slide 19: Cash flow (R'm)
Cash flow (R’m) Continued cash management remains key focus Onerous Contracts , 39% SIU, 61% Includes R8m cash in Assets Held for Sale and excludes R3m in exchange losses
Slide 20: 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 Mehleketo DOD DWS AutoSpec
Slide 21: 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 22: 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 23: 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 24: Outlook
Outlook
Slide 25: 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 26: Thank you
Thank you nN