Slide 1: Altron Group Year end results 2010
5/4/2010 Altron Group Year end results 2010 Year‐end Agenda Altron group overview Robert Venter Altron group financial results Alex Smith Operational reviews: Altech Craig Venter Bytes Rob Abraham Powertech Norbert Claussen Altron – Outlook Robert Venter 1
Slide 2: Group overview and financial summary
5/4/2010 Group overview Altron results reflect divergent group trading performances based on different sectors Pleasing performance by Altech with 7% growth in operating profits Bytes maintained revenue levels but experienced margin pressure Powertech continued to face difficult conditions
Slide 3: Subsidiary company results
5/4/2010 Subsidiary company results (for the 12 months ended 28 February 2010) * * * listed on JSE Subsidiary company results (for the 12 months ended 28 February 2010) * Figures in (R millions) * % change 62% Revenue: 9 200 0% shareholding EBITDA: 1 165 9% EBITDA margin: 12.7% 11.6% Adjusted Dilute
Slide 4: Subsidiary company results
5/4/2010 Subsidiary company results (for the 12 months ended 28 February 2010) * Figures in (R millions) % change * Revenue: 7 233 25% EBITDA: 424 43% 100% EBITDA margin: 5.9% 7.8% shareholding Adjusted Diluted 123 54% Headline Earnings: ROE: 6.0% 11.2% * listed on JSE Subsidiary company results (fo
Slide 5: Contribution per subsidiary and corporate activity
5/4/2010 Contribution per subsidiary Feb 10 R9 200m 41% R 1 165m 59% R342m 55% R157m R5 952m 25% 27% R393m 20% R7 233m R29m R424m R97m 32% 5% 21% 16% Revenue* EBITDA* Headline earnings R9 164m R1 065m R342m 37% 48% 40% Feb 09 R207m R6 038 24% 24% R427m R 9 593 19% R46m R741m R266m 39% 5% 33% 31% * R
Slide 6: Acquisition analysis and contribution from exports
5/4/2010 Acquisition analysis Upfront (Price) / R millions Effective Date 2010 PAT Sale Acquisitions Fleetcall March 09 (40) 17 Technology Concepts March 09 (7.5) 3 NuPay (50%) June 09 (53.5) 6 KDN (10%) March 09 (160) 10 Other (26.9) 2 Disposals NamITech SA April 09 82.2 29 Total for acquisitions a
Slide 7: Group EBITDA
5/4/2010 Group EBITDA Peak of cycle Global financial crisis Inventory write‐offs Subdued demand Positive impact of 1400 rationalisation returns Altech Bytes Powertech 1200 EBITDA to H1 2008 levels 1000 800 600 400 200 0 H1 2006 H2 2006 H1 2007 H2 2007 H1 2008 H2 2008 H1 2009 H2 2009 H1 2010 H2 2010
Slide 8: Financial results: Group income statement
5/4/2010 Financial results Alex Smith Chief Financial Officer: Altron Group income statement ‐ highlights R millions Feb 10 Feb 09 % change Revenue 22 336 24 768 10 Operating profit before capital items 1 477 1 799 18 EBITDA 1 987 2 237 11 EBITDA Margin 8.9% 9.0% Net investment income (76) (108) Cap
Slide 9: Impact of appreciating rand; adjusted headline earnings
5/4/2010 Impact of appreciating rand EBITDA 1 165 393 424 1 987 EBITDA margin 12.7% 6.6% 5.9% 8.9% Forex losses 23 25 60 91 Effect of translation of foreign ops 51 6 3 60 Adjusted EBITDA 1 239 424 487 2 138 Adjusted EBITDA margin 13.2% 6.7% 6.6% 9.3% Effect of translation is difference between curre
Slide 10: Summarised balance sheet and cash flow statement
5/4/2010 Summarised balance sheet R millions Feb 10 Feb 09 Total non‐current assets 5 839 5 239 Current assets 5 433 6 234 Cash balances 1 255 2 108 Total assets 12 527 13 581 Shareholders equity 4 745 4 873 Minority interests 1 610 1 427 Non‐current liabilities 994 1 346 Current liabilities 5 178 5
Slide 11: Working capital
5/4/2010 Working capital Net working capital days 26 53 55 57 56 21 Accounts receivable days 16 18 58 48 46 43 Inventory days Accounts payable days ‐85 85 ‐89 89 ‐81 81 ‐81 81 2007 2008 2009 2010 R1 567m R1 598m R1 989m R1 625m Net working capital Altech results Craig Venter CEO 11
Slide 12: Altech financial summary and divisional review
5/4/2010 Altech financial summary R millions Feb 10 Feb 09 % change Revenue 9 200 9 164 0 EBITDA 1 165 1 065 9 EBITDA margin 12.7% 11.6% Operating profit 933 874 7 Adjusted j HEPS 605c 592c 2 Intangible write‐off in 40 25 operating profit Forex (losses) / profit included in (23) (5) operating profit
Slide 13: Altech divisional review
5/4/2010 Altech divisional review Feb 10 % R millions growth Comments revenue UEC 1 079 ( (18.5) ) Deferred f d orders d dued to economic slowdown l d Strengthening of the rand AAD 275 (15.4) Margins maintained; market leadership enhanced Multi‐Media & 1 354 (17.8) Electronics Total Isis 120 1
Slide 14: Altech – the way forward
5/4/2010 Altech – the way forward Annuity revenue (defensive) Cost containment Maintain operating margins Strong balance sheet Continued diversification of income base in TMT sector through: Globalisation; M&A activity; and Convergence opportunities Evaluating expansion of Altech D
Slide 15: Bytes financial summary and divisional review
5/4/2010 Bytes financial summary R millions Feb 10 Feb 09 % change Revenue 5 952 6 038 (1) EBITDA 393 427 (8) EBITDA margin 6.6% 7.1% Operating profit 285 351 (19) Adjusted diluted headline earnings 173 220 (21) Intangible write‐off in operating profit 27 29 Forex (losses) / profit included in (25)
Slide 16: Restructuring of Bytes; the way forward
5/4/2010 Restructuring of Bytes Reorganised management team Streamlined operations Raise Bytes profile and improve brand recognition Empower and develop staff Defined performance excellence plans (PEPs) Focus on superior delivery through specialist operating units Our vision – to be reco
Slide 17: Powertech results and financial summary
5/4/2010 Powertech results Norbert Claussen CEO Powertech financial summary R millions Feb 10 Feb 09 % change Revenue 7 233 9 593 (25) EBITDA 424 741 (43) EBITDA margin 5.9% 7.7% Operating profit 255 571 (55) Adjusted diluted headline earnings 123 270 (54) Intangible write‐off in operating profit 44
Slide 18: Internal efficiencies and Powertech divisional review
5/4/2010 Internal efficiencies Powertech headcount reduced by approximately 800 people – 20% reduction Cost base better aligned with changed demand levels Vigorous cost control saw manufacturing cost decrease by 1% despite inflationary pressures and increased depreciation charge SG & A expen
Slide 19: Powertech – the way forward
5/4/2010 Powertech – the way forward Defend market against international competition Continue to focus on internal efficiencies Leverage off low cost base and expected gradual recovery in markets Secure consistency in material supplies Investment in skills and development for greater IP
Slide 20: Outlook and Questions
5/4/2010 Outlook Successfully navigated through recession EEconomy and d market k t conditions diti expected t d to t improve i gradually d ll through the year Positive impact of lower interest rates should start benefitting sectors in which the group operates Benefits from group wide ration