Slide 1: Interim Results Six months to December 2022
Interim Results Six months to December 2022 Virtual Presentation Thursday 9th March 2023 Time: 10h00 - 11h00 Presentation starts soon
Slide 2: Interim results for the six months ended 31 December 2022
Interim results for the Six months ended 31 December 2022 1
Slide 3: Presenters
Mustek Limited Presenters • Hein Engelbrecht ( Group CEO) • Shabana Aboo Baker Ebrahim ( Group FD) 2
Slide 4: Overview
Overview • Established in 1987 • Listed on JSE in 1997 • Distributor of IT and green energy products and services • Head office in Midrand 3
Slide 5: Group Structure
Group Structure Mustek Limited Service and Distribution Training Manufacturing Support Mustek Mecer Inter-Ed YOA Sizwe Rectron Continuous Power Khauleza Systems Mustek Mustek Rectron 4
Slide 6: Group Brand Portfolio
Group Brand Portfolio Edge/ Client Gaming Software/ Cloud 5
Slide 7: Group Brand Portfolio (continued)
Group Brand Portfolio (continued) Network/ Infrastructure/ Servers Sustainable energy Security & Compliance Training & Enablement 6
Slide 8: Group – salient features
Group – salient features • Revenue at R4.91 bn (up 18%) • EBITDA at R268m (down 3%) • HEPS of 222 cents (down 6.5% ) • NAV per share of R25.75 (up 14%) • Cash used in operations R125m 7
Slide 9: Financial Summary
Financial Summary H1:20 H2:20 H1:21 H2:21 H1:22 H2:22 H1:23 Revenue (R billion) 3.0 3.4 3.7 4.3 4.2 4.8 4.9 Gross Profit (R million) 432 479 516 672 677 596 691 GP % 14.4% 14.1% 13.9% 15.6% 16.2% 12.5% 14.1% EBITDA (R million) 142 105 236 280 277 179 268 Net profit (R million) 54 35 140 157 152 73 1
Slide 10: Revenue (R billion)
Revenue R(billion) 6 4.8 4.9 5 • Organic growth and relevance 4.3 4.2 • Green energy products 3.7 4 • Notebook market under strain 3.4 3.0 3 2 1 0 H1:20 H2:20 H1:21 H2:21 H1:22 H2:22 H1:23 9
Slide 11: Gross Profit Margin
Gross Profit Margin 16.70% 16.60% 16.50% 16.40% 16.30% 16.20% 16.10% 16.00% 16.2% 15.90% 15.80% 15.70% 15.60% • Margin pressure from reducing high mobility stock 15.50% 15.40% 15.6% 15.30% 15.20% 15.10% 15.00% 14.90% • Rest of margins stable 14.80% 14.70% 14.60% 14.50% 14.40% 14.30% • Margin stabili
Slide 12: Opex as % of sales
Opex as % of sales 12.00% • Absolute increase of 11% 9.9% • Opex mostly fixed and well controlled 10.00% 8.9% 9.2% 8.6% 8.4% 8.8% 7.9% • Higher than inflationary increases on 8.00% some expenses 6.00% 4.00% 2.00% 0.00% H1:20 H2:20 H1:21 H2:21 H1:22 H2:22 H1:23 11
Slide 13: HEPS (cents)
HEPS (cents) 300.00 250.00 240 237 222 202 200.00 • Recovery from H2:2022 150.00 120 100.00 76 51 50.00 - H1:20 H2:20 H1:21 H2:21 H1:22 H2:22 H1:23 # of 70 m 70 m 70 m 66m 61m 59m 58 m shares 12
Slide 14: Dividends per share (cents)
Dividends per share (cents) 100.00 • Year-end 90 90.00 • Pay out ratio – 20% 80.00 76 70.00 60.00 50.00 40.00 30 30.00 26 22 20.00 10.00 - Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 13
Slide 15: PE Ratio
PE Ratio 17 TradingView 2017
Slide 16: NAV and TNAV per share
NAV and TNAV per share 3,000.00 2,575 2,395 2,500.00 2,259 2,046 2,139 2,000.00 1,761 1,826 1,598 1,702 1,540 1,440 1,546 1,500.00 1,201 1,204 1,000.00 500.00 - H1:20 H2:20 H1:21 H2:21 H1:22 H2:22 H1:23 NAV per share (cents) Tangible NAV per share (cents) 15
Slide 17: Inventory
Inventory Inventory R (billion) vs Inventory days 2.75 120 101 Millions 2.5 • Stock management remains a focus 91 93 84 0.4 86 100 2.25 86 • Lead times improving 2 0.1 0.6 80 • Supply chain continues easing 1.75 68 0.3 1.5 0.2 1.25 0.1 0.2 60 1 40 0.75 0.5 20 0.25 1.3 1.4 1.5 1.3 1.6 2.1 2.0 0 0 H1:
Slide 18: Trade Receivable Days
Trade Receivable Days 56 56 55 55 55 • Carefully managed and in line 54 54 53 53 52 52 51 50 49 49 48 47 46 H1:20 H2:20 H1:21 H2:21 H1:22 H2:22 H1:23 17
Slide 19: Cash Flow
Cash Flow H1:20 H2:20 H1:21 H2:21 H1:22 H2:22 H1:23 EBITDA (R million) 142 105 236 280 277 179 268 Cash generated from ops (R million) 5 495 -114 545 284 20 -125 CFO (excl div paid) (R -61 422 -188 429 205 -73 -210 million) 18
Slide 20: Strategic Priorities
Strategic Priorities • Working capital management • Evaluate new products with growth potential and phase out non-performers • Software distribution • IT Training • Maintain BBBEE Level 1 • Unlock earnings potential of investments in associates 19
Slide 21: Opportunities
Opportunities • Green energy • Cybersecurity and cloud solutions • Increased infrastructure and network size • New brands • Drone technology solutions • IT Training 20
Slide 22: Mustek
Mustek