Telkom Sa Soc Ltd. · JSE:TKG
Telkom Sa Soc — Investor Day (2019)
18 slides from Telkom Sa Soc's investor day presentation, 2019
Slide 1: Jonas Bogoshi, CEO
Jonas Bogoshi CEO Telkom Capital Markets Day 2019 39
Slide 2: BCX playing a role in the lives of South Africans
BCX playing a role in the lives of South Africans Deepen Democracy Fuel The Economy Paying South Africa’s Sorting Your Workforce Medication Provisioning and managing Services 60% of South Process 1/3 of Enabling prescriptions of ICT for 284 Centres Africa’s fuel stations South Africa’s payslips and
Slide 3: BCX capabilities and scale
2 500+ Bank Branches & 5 500 ATM’s Support 68 000+ Unified Software defined Legacy app Tech agnostic 45 000 MDNS 574 000+ internet retail/fuel POS communications networks modernisation access sites sites connected Support top 5 largest retailers Cloud & Cloud Cyber security Big data & analytics Advanc
Slide 4: How BCX stands out from the market
How BCX stands out from the market Unique Capabilities The BCX client Delivering Solutions offering Industry Focused Understanding Unparalleled Deep World class Innovative customers business understanding Industry-specific infrastructure & solutions imperatives of the market knowledge applications Te
Slide 5: Accolades
Accolades • Networking Partner of theYear • Local Award for Highest Revenue Generation • IBM Beacon Award for Most Innovative Client Solution on IBM Mainframe • 2018 Commvault Partner ofthe Year Award 2013 - 2018 2019 2017 • 7 partner awards • 2 partner awards • Service Capability Development • Part
Slide 6: SA Enterprise ICT market share
SA Enterprise ICT market BCX Market Share 13% BCX Market Share 30% 5 yr CAGR 8.4% 5 yr CAGR 0.2% Telco spend IT spend Source: BMIT analysis Telkom Capital Markets Day 2019 44
Slide 7: Our position in the market
Our position in the market Fixed voice Fixed data Internet Mobile Hardware Software IT services CAGR (5Y) -3% 4% 2% 3% 2% 11% 9% BCX market share 80% 42% 15% 4% 12% 11% 13% Competitors • Liquid • Internet • Internet • MTN • Dimension • Dimension • EOH • ECN Solutions Solutions • Vodacom Data Data •
Slide 8: The industries we serve
The industries we serve Financial Mining Retail Manufacturing Health Government Market size R28bn R8.1bn R18.7bn R9.9bn R3.9bn R29.1bn 5yr CAGR 9.4% 6.3% 9.1% 6.3% 3% 9.5% Telco:IT Split 34:66 25:75 30:70 39:61 20:80 22:78 Source: BMIT analysis Telkom Capital Markets Day 2019 46
Slide 9: Operating environment
Operating environment Industry margins Cost to serve </> Market challenges Client churn Client demands Telkom Capital Markets Day 2019 47
Slide 10: Managing voice to enable to cross-sell and up-sell
Managing voice to enable to cross-sell and up-sell Our core issues Our interventions Results Customers Pricing Address declining spending less interventions voice revenues on voice Win Back Voice customers Upsell New offerings IT Customer rate quality Cross Sell Data services services of our voice s
Slide 11: Upsell IT services
Upsell IT services Exit Non-Core Businesses and Lead with Cloud – Drive Hybrid Cloud Geographies Adoption Optimize Product Portfolio and Digitize Expand own IP Products and Services Offerings Accelerate IT Services Revenue Growth Invest in Ecosystems for Scale and and Margin Expansion Access to Inno
Slide 12: Our focus – Big Bet solutions
Our focus – Big Bet solutions Converged Cyber Communication 1 3 Security Our Big Bet Solutions Cloud Digital Services 2 4 Edge Industry 5 Applications Telkom Capital Markets Day 2019 50
Slide 13: Converged communication
1 Converged communication Market size R31bn Our plan • Defend voice • Drive data growth • Accelerate OTT (Connected Workplace & Security) Telkom Capital Markets Day 2019 51
Slide 14: Cloud services
2 Cloud services Market size R5bn Growth 26% CAGR (5 years) Our plan • Horizon 1 - Core • Horizon 2 - Adjacencies • Horizon 3 - Disruptive Telkom Capital Markets Day 2019 52
Slide 15: Cyber security
3 Cyber security Growth 16% CAGR (5 years) Our key opportunities • Security Consulting • Managed Security Services • Managed Detection & Response (SaaS) • Security Operations Centre Telkom Capital Markets Day 2019 53
Slide 16: Digital edge
4 Digital edge Growth 15% CAGR (5 years) Our key opportunities • Robotics Process Automation • Automated Intelligent Service Management • AI, Machine Learning Telkom Capital Markets Day 2019 54
Slide 17: Industry solutions
5 Industry solutions Bespoke Application Market size R3,7bn Bespoke Application Growth 54% CAGR (5 years) Focus industries • Financial (5Y CAGR – 9.4%) • Retail (5Y CAGR – 9.1%) • Mining (5Y CAGR – 6.3%) • Health (5Y CAGR - 3%) • Government (5Y CAGR – 9.5%) Telkom Capital Markets Day 2019 55
Slide 18: Conclusion
Conclusion Accelerate revenue growth and drive Digitise offerings and touchpoints to margin expansion enhance customer experience Rebase cost structure and drive Leverage and invest in ecosystems for efficiencies scale and access and innovation Continue to improve capital efficiency Attract and buil