Ioco Limited · JSE:IOC
Ioco — EOH Holdings — H1 FY2013 Earnings Presentation
42 slides from Ioco's earnings presentation, Mar 12, 2013
Slide 1: EOH Interim Results 2013
EOH Interim Results 2013 12th March 2013 1
Slide 2: Agenda
Agenda ▲ EOH Overview ▲ Enterprise Applications ▲ Infrastructure Technologies ▲ Industrial Technology ▲ Business Process Outsourcing ▲ Financial Results Highlights ▲ Strategy and Way Forward 2
Slide 3: EOH Overview
EOH Overview A EQH
Slide 4: Purpose
Purpose To provide technology, knowledge, skills and organisational ability, critical to Africa’s development and growth To be an ethical, relevant force for good and to play a positive role in our society, beyond normal business 4
Slide 5: EOH philosophy
EOH philosophy ▲Best people To attract, develop and retain the best people ▲Partner for life To develop lifelong mutually beneficial partnerships with our customers and technology partners ▲Right 1st time To ensure excellent professional planning and execution and have pride in all we do ▲Sustainabl
Slide 6: Portfolio
Portfolio Design Build Operate • Knowledge services • Enterprise applications • Transformational outsourcing • Business operations improvement • Information management • Cloud computing • IT strategy • Information security • Managed services • IT architecture • IT management & optimisation • IT infr
Slide 7: Points of presence
Points of presence Klerksdore Vryburg (Bophirima) gton Springbok AQ: & Cape Town khukhune a Bela Mpumalanga KwaZulu wa, aritzburg lesburg haba Nhu ismith Eastern Cape _of East London 7oX Port Elizabeth EOH Business Park Gillooly’ z- 7eN & 8- . EQH
Slide 8: Abridged client list
Abridged client list Public sector Mining Manufacturing Health 8
Slide 9: Abridged client list (Cont.)
Abridged client list (Cont.) Telecommunications Retail State owned entities Financial services 9
Slide 10: Enterprise Applications
Enterprise Applications A EQH
Slide 11: Our business
Our business EOH is the largest implementer of enterprise systems and custom applications in Southern Africa Over 1 000 ERP professionals We have the largest footprint in Southern Africa for: • SAP • Microsoft • Oracle • Infor • Syspro 11
Slide 12: Enterprise applications
Enterprise applications FRM Finance Resource Management MRP SCM Manufacturing Supply Chain Resource Management Management ERP System CRM HCM Customer Human Relationship Resource Management Management Re-invents your business with best practice process management 12
Slide 13: Infrastructure Technologies
Infrastructure Technologies 13
Slide 14: The business requirements
The business requirements ▲ Upgrade of Infrastructure Technologies (Design, Build, Optimise and Manage) • New architecture adoption (Cloud and Virtualisation) • Desktops, laptops and servers • Active Directory and Exchange (email) • Archiving and retrieval of email • Upgrading LAN’s • Cost effective
Slide 15: EOH and the Cloud
EOH and the Cloud Cloud Technology Consulting Application Optimisation & Security Platform Enterprise Infrastructure as a Platform as a Service Applications Applications Service (IaaS) (PaaS) (SaaS) (SaaS) Servers Hosting Mail – Hosted ERP & CRM Storage Data Archiving Mail – Archiving
Slide 16: Managed Services
Managed services Service Desk Managed Security (130 000+ contacts/month) (100 000+ endpoints) Managed Infrastructure and Managed Applications Hosting (Microsoft and client specific) (12 000+ servers) Managed Workspace Managed Consulting and Strategy (80 000+ registers users) Services (60+ outsourced
Slide 17: Managed services national footprint
Managed services national footprint Over 100 points of presence 1 600+ employees 17
Slide 18: Infrastructure technologies
Infrastructure technologies 18
Slide 19: Industrial Technology
Industrial Technology A EQH
Slide 20: The need for Industrial Technology
The need for Industrial Technology Convergence Green Infrastructures Legacy Today Disparate Building Networks Open Standards Building Network Green Intelligent Bright Green • Increased role of the network infrastructure as the • Green environmentally relevant designs are gaining converged ITS (Infor
Slide 21: The business of Industrial Technology
The business of Industrial Technology Industrial Technology combines state-of-the-art technology and best practice to create facilities that are smart, safe, healthy and secure by: • Creating optimum working and living conditions • Ensuring sustained protection of people and assets • Enhancing comfo
Slide 22: Business Process Outsourcing
Business Process Outsourcing 22
Slide 23: What is KPO?
What is KPO? ▲ Knowledge process outsourcing (KPO) is a term that has emerged to distinguish a specific type of BPO that involves highly skilled professional services focused on business processes that provide competitive advantage ▲ Requires specialised knowledge or expertise for analytical, indust
Slide 24: Value Added Business Process Outsourcing
Business Process Outsourcing Horizontal Activities Strategic Activities Vertical Industry Activities ITO KPO Banking / Financial Information Technology Knowledge Process Outsourcing Service / Insurance Outsourcing Software R&D Business Consulting / Manufacturing Analytics / Market Legal Services Int
Slide 25: Financial Results Highlights
Financial Results Highlights 25
Slide 26: Condensed Consolidated Statement of Comprehensive Income
Condensed Consolidated Statement of Comprehensive Income for the six months to 31 January 2013 31 Jan 2013 31 Jan 2012 % (R’000) (R’000) Change Revenue 2 389 185 1 642 339 45.5% Cost of sales (1 392 060) (925 598) Gross margin 997 125 716 741 Results from operating activities 247 733 175 478 Investm
Slide 27: Condensed Consolidated Statement of Comprehensive Income (per share)
Condensed Consolidated Statement of Comprehensive Income for the six months to 31 January 2013 31 Jan 31 Jan % 2013 2012 Change Total shares in issue ('000) 106 045 96 610 Weighted average shares in issue ('000) 92 684 83 708 Total diluted shares in issue ('000) 102 338 95 216 EPS (cents) 176,4 127,
Slide 28: Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Financial Position Interim Interim Annual 31 Jan 2013 31 Jan 2012 31 Jul 2012 ASSETS (R'000) (R'000) (R'000) Non-current assets Property, plant and equipment 209 258 99 985 183 856 Investment properties 2 872 - 2 872 Goodwill and intangible assets 950 695 610 004
Slide 29: Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Financial Position Interim Interim Annual 31 Jan 2103 31 Jan 2012 31 Jul 2012 (R'000) (R'000) (R'000) EQUITY AND LIABILITIES Equity attributable to owners of the parent 1 303 806 921 256 1 128 438 Non-controlling interest 1 431 51 1 400 Total equity 1 303 237 921
Slide 30: Condensed Consolidated Statement of Cash Flows
Condensed Consolidated Statement of Cash Flows for six months ended 31 January 31 Jan 2013 31 Jan 2012 (R'000) (R'000) Cash generated by operating activities 285 076 166 570 Investment income 9 479 7 313 Finance costs (20 209) (11 777) Taxation paid (77 803) (78 626) Net cash inflow from operating a
Slide 31: Financial highlights
Financial highlights Up Up Up Up Up 45.5% 53.5% 38.7% 35.2% 37,0% Revenue PAT EPS HEPS CASH R2 389,2m R163,5m 176,4 cents 171,5 cents R532,5m 31
Slide 32: Revenue growth
Revenue growth 2 389,2 Revenue (R millions) 1642.3 1139.8 787.3 559.7 436.3 301.1 188.1 236.6 146.4 88.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 32
Slide 33: Earnings growth
Earnings growth 171,5 126.9 Headline EPS (cents) 96.2 70.0 54.2 42.2 29.1 34.9 24.0 15.5 19.6 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 33
Slide 34: Reporting segments
Reporting segments Infrastructure revenue R378,3m Infrastructure 16% Software Software revenue R350,0m 15% Services 69% Services revenue R1 660,2m 34
Slide 35: Strategy and Way Forward
Strategy and Way Forward A EQH
Slide 36: EOH today
EOH today • 6 000 People • Management and staff own around 40% of the company • R4.7bn market cap • Around R5.0bn revenue • Strong service growth • Expansion in Infrastructure Technology • Very strong BPO growth • Winning much larger deals • Often automatically invited to bid • Healthy, stable, posi
Slide 37: Industry outlook
Industry outlook • Generally the industry is healthy • Roles of players are changing • Services is the name of the game • Strong drive for managed services & cloud services • Customers seeking larger players to do business with • Still growing at 7% p.a. • Customers want to buy wider solutions vs. p
Slide 38: Growth drivers
Growth drivers • Everything as a service • Client solutions • Mobile & digital world • Public sector • Cloud services • Managed services • Enterprise applications – major differentiator • Information management • Industrial technology • Business process outsourcing • Larger deals • Strategic and key
Slide 39: Transformation update
Transformation update ▲ Equity 34.62% black ownership ▲Board Representation 60% black ▲ Employment Equity 59% black ▲ BEE Procurement Recognition 156% ▲ Skills Development Variety of programmes 620 trainees ▲ Enterprise Development 6% of NPAT ▲ Corporate Social Investments Job Creation Initiative Ma
Slide 40: EOH operating model
EOH operating model Public Financial Category Lines of Business Health Manufact. Mining Telco’s Retail Sector Services Consulting – core industry Technology Consulting Enterprise Applications Information Management IT Security IT Management & Optimisation Enterprise Content Management Software Devel
Slide 41: Job creation initiative update
Job creation initiative update Objective • EOH is committed to the creation of sustainable employment opportunities in South Africa • Aimed at stimulating job creation by interacting with our customers, business partners and government Focus areas • Internships and training programmes • Repatriation
Slide 42: Thank you
Systems make it possible... www.eoh.co.za People make it happen Thank you A EQH 42