Slide 1: Results Announcement
Results Announcement Virtual Presentation Wednesday 14 September 2022 Time: 11h00 Presentation starts soon
Slide 2: Results of the Year ended 30 June 2022
Results of the Year ended 30 June 2022 1
Slide 3: Presenters
Mustek Limited Presenters • Hein Engelbrecht ( Group CEO) • Neels Coetzee (Mustek MD) • Shabana Aboo Baker Ebrahim ( Group FD) 2
Slide 4: Group – salient features
Group – salient features • Revenue at R8.9 bn (up 12% ) • EBITDA at R456m (down 12%) • HEPS of 357 cents (down 19% ) • NAV per share of R23,95 (up 17%) • Cash generated from Ops at R303m (down 30% ) • DPS 76 cents (down 15%) 3
Slide 5: Overview
Overview • Established in 1987 • Listed on JSE in 1997 • Distributor of ICT products and services • Head office in Midrand 4
Slide 6: 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 5
Slide 7: Group Brand Portfolio
Group Brand Portfolio Edge/ Client Gaming Software/ Cloud 6
Slide 8: Group Brand Portfolio (continued)
Group Brand Portfolio (continued) Network/ Infrastructure/ Servers/ Sustainable energy Security & Compliance Training & Enablement 7
Slide 9: Covid-19
Covid-19 • Installed base has increased • Supply chain easing but still constrained • New replacement cycle 8
Slide 10: Financial Summary
Financial Summary FY18 FY19 FY20 FY21 FY22 Revenue (R billion) 5.7 5.8 6.4 8.0 8.9 Gross Profit (R million) 795 818 910 1 188 1 273 GP % 14.0% 14.0% 14.2% 14.9% 14.3% EBITDA (R million) 194 243 247 516 456 Net profit (R million) 81 107 88 296 225 HEPS (cents) 104 139 127 442 357 NAV/share (cents) 1
Slide 11: Revenue R(billion)
Revenue R(billion) 8.9 8.0 • Organic growth and relevance • Demand still buoyant 6.4 5.7 5.8 • Product portfolio • Availability of inventory Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 10
Slide 12: Gross Profit Margin
Gross Profit Margin 14.9% • Oversupply of entry level notebooks • Slight tail off of pricing power 14.3% 14.2% 14.0% 14.0% Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 11
Slide 13: Opex as % of sales
Opex as % of sales 9.8% • Opex mostly fixed and well controlled 9.5% • Higher than inflationary increases on 9.4% some expenses • Absolute increase 7% 8.9% 8.6% Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 12
Slide 14: HEPS (cents) vs W.Ave. Shares (m)
HEPS (cents) vs W.Ave. Shares (m) 500 90 450 78 • Earnings growth 71 80 70 69 400 63 70 Millions 350 60 300 50 250 40 200 150 30 100 20 50 10 104 139 127 442 357 0 - Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 # of 73 m 70 m 70 m 66 m 59 m shares 13
Slide 15: Dividends per share (cents)
Dividends per share (cents) 90 • Pay out ratio – 20% 76 30 26 22 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 14
Slide 16: PE Ratio
PE Ratio 15
Slide 17: NAV and NTAV per share
NAV and NTAV per share 2,395 2,046 1,826 1,598 1,546 1,494 1,349 1,126 1,204 978 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 NAV per share (cents) Tangible NAV per share (cents) 16
Slide 18: Inventory
Inventory Inventory R (billion) vs Inventory days 3 120 • Big orders received earlier than expected Millions 3 94 93 0.4 100 • Lead times improving 2 101 2 • Supply chain easing but still 2 72 68 80 constrained 2 0.2 1 0.1 0.2 60 1 0.2 40 1 1 20 0 1.0 1.3 1.4 1.3 2.1 - - Jun-18 Jun-19 Jun-20 Jun-21
Slide 19: Trade Receivable Days
Trade Receivable Days 55 55 • Carefully managed • debtors 52 51 49 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 18
Slide 20: Cash Flow
Cash Flow FY18 FY19 FY20 FY21 FY22 EBITDA (R million) 194 243 247 516 456 Cash generated from ops 250.4 -16.2 500 431.3 303.4 (R million) CFO (R million) 149.3 -171.4 339.5 220.8 71.8 19
Slide 21: Strategic Priorities
Strategic Priorities • Unlock earnings potential of investments in associates • Working capital management • Evaluate new products with growth potential and phase out non-performers • Software distribution • IT Training • Complete ERP implementation • Maintain BBBEE Level 1 20
Slide 22: Opportunities
Opportunities • Cybersecurity and cloud solutions • Increased infrastructure and network size • Sustainable energy • New brands • IT Training 21
Slide 23: Presenters
Presenters Hein Engelbrecht Neels Coetzee Shabana Aboo Baker Ebrahim ( Group CEO) (Mustek MD) ( Group FD) HeinE@mustek.co.za NeelsC@mustek.co.za ShabanaA@mustek.co.za
Slide 24: Mastek
Mastek