Slide 1: Financial Results for the 6 months ended 31 March 2011
Financial Results for the 6 months ended 31 March 2011 Nick Wentzel, CEO
Slide 2: Salient features
Salient features Revenue 2%Ï R5,1bn to R5,2bn Operating profit 4%Ï R582m to R604m EBITDA margin 2% Ï 12,4% to 12,7% HEPS 18%Ï 223 cents to 263 cents Normalised HEPS 9%Ï 239 cents to 261 cents 4% due to share buyback Interim dividend per share 15%Ï 67 cents to 77 cents Abnormal item R346m Profit on s
Slide 3: Income Statement
Income Statement for the six months ended 31 March 2011 % 2011 Change 2010 R million R million Revenue 5 223 223.55 2 5 113 113.66 EBITDA 661.5 5 632.3 Depreciation (57.5) (13) (50.8) Operating Profit 604.0 4 581.5 I t Interestt & Dividends Di id d 46 2 46.2 (5) 48 4 48.4 Abnormal items 346.4 (34.0)
Slide 4: Segmental revenue contribution
Segmental revenue contribution 5 350 15.4 (78.1) 185.9 5 300 5 250 0.8 0 8 ((14.1)) 5 223.5 R million 5 200 5 150 5 113.6 5 100 5 050 5 000 Revenue 1H2010CBI-electric Nashua Reutech Other NSN 1H2011 Six months ended 31 March Year ended 2011 2010 30 September 2010 Revenue R million % R million % % ch
Slide 5: Segmental operating profit contribution
Segmental operating profit contribution 660 22.1 (7.4) 640 (13.3) 35.2 (14.1) 620 604.0 600 R million 581.5 580 560 540 520 500 Operating CBI-electric Nashua Reutech Other NSN Operating Profit 1H2010 Profit 1H2011 Six months ended 31 March Year ended 2011 2010 30 September 2010 Operating profit R mi
Slide 6: Condensed group balance sheet
Condensed group balance sheet R Millions 31 March 31 March 30 September 2011 2010 2010 Fixed assets 631.6 632.0 635.3 Goodwill 504.4 491.8 492.1 Investments and loans 45.5 841.4 44.3 Quince receivables 758.7 838.9 821.7 Other accounts receivable - 86.3 - Deferred taxation 37.1 28.7 40.4 Non current
Slide 7: Cash flow statement
Cash flow statement for the six months ended 31 March 31 March 31 March R Millions 2011 2010 EBITDA 661.5 632.3 Workingg Capital p change g -Finco receivables 68.9 118.6 -Other (234.9) (10.3) IFLs (utilised)/received (6.3) (10.8) Net interest & dividends received 46.2 48.4 Taxation Paid (185.5) (213
Slide 8: CBI-electric
CBI-electric Revenue 14%Ï to R1,5 billion – Strong g demand for low-voltage g p products in export p markets – 1H11 order intake at energy cables consistent with the previous year – Telecom cables experienced disappointing 1st half Strong improvement in operating profit 16%Ï to R253 million – Im
Slide 9: CBI-electric: low and medium voltage
CBI-electric: low and medium voltage Strong contribution from exports – Exports p contributed 32,8% , of revenue – Australia demand due to commodity boom and rebuilding after the floods – USA and Europe due to mobile network upgrade from 3G to 4G and renewable energy (solar) Local construction a
Slide 10: Energy cables
Energy cables Varied business sector performance – Utilities: increased consumption p – Mines and industry: flat consumption – Construction and building: negative consumption Utility consumption – 1st off-takes received for Medupi power station – Kusile power station is still under negotiation –
Slide 11: Telecom cables
Telecom cables Better 2nd half expected – Received order for national long g distance p project j roll-out – Improved order book
Slide 12: Nashua group
Nashua group Subdued market conditions Revenue flat at R3,4 billion Operating profit up 8% to R315 million Counter potential LCR losses with ECN acquisition – Expect E pect Competition Commission rruling ling b by end Ma May Started implementation of Nashua group strategy – Strategy is to
Slide 13: Nashua Mobile
Nashua Mobile Lower interconnect rates impact on least cost routing business – ECN acquisition q adding g converged g voice and data capabilities p – Convert customers from least cost routing to VOIP 8ta added to service offering from May Will re-enter prepaid market aggressively from June – D
Slide 14: Nashua Mobile comparative numbers
Nashua Mobile comparative numbers 6 months ended % change 6 Months 12 Months % change March March 12 months ended ended 6 months 2011 2010 Sept 10 Sept 10 Mar11/ Sep10 Contract connections 54 336 91 818 (41) 58 701 150 519 (7) Data connections 26 025 12 537 108 24 326 36 863 7 Total connections 80 3
Slide 15: Office Automation
Office Automation Nashua retained its No 1 market position with 21% market share – Lead increased to 7% over next competitor p Tygerberg and Paarl & West Coast franchises bought back for R15,7m net – Target is to own at least 70% of channel revenue – Currently own a majority share in 36 % of tot
Slide 16: Market shares
Market shares 2010 Mkt % Growth 2009 Mkt 2010 Ranking 2010 2009 share 09 to 10 share 1 Nashua 21.1% 13 997 25.2 11 183 21.0% 2 Konica Minolta 14 1% 14.1% 9 326 19 1.9 9 154 17 2% 17.2% 3 Canon 9.6% 6 347 63.5 3 883 7.3% 4 Xerox 8.6% 5 731 33.1 4 306 8.1% 5 Kyocera 8.4% 5 546 35.8 4 083 7.7% 6 Ricoh
Slide 17: Nashua Communications
Nashua Communications Strong performance – boosted byy includingg Panasonic PABXs in the service offering g – 1st full six months performance reported
Slide 18: Reutech
Reutech No improvement in contribution Revenue 20% down to R308m Operating profit 35% down to R14m Poor results mainly due to anticipated order still not received – Still e expecting pecting ffuze e order to be a awarded arded to F Fuchs chs Solutions was impacted by the slower roll-out of
Slide 19: Outlook
Outlook Import competition increases with the strong rand Margin pressure continues Strong cost management will continue Acquisitions Prospects Given current market conditions and provided they do not deteriorate, the 2nd performance will exceed that achieved in the 1st six months and half p