Slide 1: 12 Months Ended 31 March 2023
Transforming information to create insights and predictions. 12 MONTHS ENDED 31 MARCH 2023 THE DATA SPECIALIST COMPANY
Slide 2: Contents
CONTENTS FINANCIAL REVIEW 4-6 ABOUT US 8-11 SEGMENTAL REVIEW, REVENUE, COSTS, CAPITAL EXPENDITURE, OPERATING LEVERAGE, FREE CASH FLOW 13-22 SUMMARISED FINANCIALS 24-26 CAPITAL ALLOCATION STRATEGY 28-29 REASONS TO INVEST 31 ANNEXURE 33-42
Slide 3: Financial Review
LO PBT ns FINANCIAL REVIEW
Slide 4: Financial Review
FINANCIAL REVIEW Segments Group South Africa Australia Europe and UK (92% of Group revenue) (5% of Group revenue) (3% of Group revenue) • Record revenue of R1.1bn • Performed well with 13% organic • Unsatisfactory performance • Satisfactory performance with (+12% y/y). revenue growth and 8% EBITDA r
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue (ZARm) EBITDA (ZARm) Cash Generated From Operations (ZARm) 4-year CAGR +12% 4-year CAGR +2% +1% 17% y/y 29% y/y y/y 976 1,091 139 142 136 138 673 789 98 102 92 588 73 51 37 FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022
Slide 6: Five-Year Total Shareholder Return
FIVE-YEAR TOTAL SHAREHOLDER RETURN Total shareholder return is measured as the increase in market capitalisation plus distributions and share repurchases. 1 600 1 339 1 400 31 Cumulative cash returned 1 200 5-year Total Return to shareholders CAGR 369 1 000 40% R400m ZAR millions 800 Increase in mar
Slide 7: About Us
LO PBT ABOUT US
Slide 8: Summarised Corporate Structure
SUMMARISED CORPORATE STRUCTURE PBT Group Limited Comments Incorporated in South Africa and listed on the JSE PBT Group International BV Uncomplicated corporate structure. 100% Incorporated in The Netherlands The international holding entity provides corporate South African Operating Entities flexibi
Slide 9: PBT Group Overview
PBT GROUP OVERVIEW PBT Group is a streamlined and focused professional services business. Core business Non-core assets A Data Specialist and Software services and solutions In FY2023 we successfully disposed of our non-core provider. assets and returned the proceeds to our shareholders. As a result
Slide 10: A-Grade Clients
A-GRADE CLIENTS FINANCIAL INSURANCE TELECOMS RETAIL OTHER INTERNATIONAL Absa Bryte MTN Clicks AfroCentric Health 6 Degrees Capitec Discovery Telkom Pepkor Business AIB Coronation Hollard Vodacom Pernod Ricard Connexion AkzoNobel DirectAxis Liberty Pick ‘n Pay Bytes Brakes FNB MMI Holdings Pioneer Fo
Slide 11: Shareholder Interests Well Aligned
SHAREHOLDER INTERESTS WELL ALIGNED Management, directors, employees and affiliates* shareholding in PBT Group Limited 53% 53% 45% 48% 33% FY2019 FY2020 FY2021 FY2022 FY2023 Note: figures are rounded. Note: FY = 12 months ended 31 March. *Includes PBT Direct Partnership and The Intrepid PBT Direct Pa
Slide 12: Segmental Review, Revenue, Costs and Cash Flow
1. SEGMENTAL REVIEW 2. REVENUE 3. COSTS 4. OPERATING LEVERAGE 5. CAPITAL EXPENDITURE 6. FREE CASH FLOW
Slide 13: 1. Segmental Review
1. SEGMENTAL REVIEW Revenue earned by geographic area as a % of Group revenue Year-on-year growth rates by geographic area 2% 4% 4% 4% 3% 13% 11% 8% 7% 6% 5% South Africa 8% 15% Europe & UK 1% 87% 88% 89% 90% 92% -15% Australia -163% 12% Group 2% FY2019 FY2020 FY2021 FY2022 FY2023 South Africa Austr
Slide 14: Client Engagement Models
2. HOW PBT GROUP EARNS REVENUE A services and solutions-based business CLIENT ENGAGEMENT MODELS 1 2 3 Consulting Services Projects Managed Services and Solutions • Providing relevant expertise as a • Engaging a team in collaboration • Providing a pre-defined service professional service. with a clie
Slide 15: 2. Client Industries
2. CLIENT INDUSTRIES Revenue earned by client industry as a % of Group revenue Comments The bulk of revenue is earned from financial services clients. Driven by digital transformation. Most consultants are interchangeable between industries. Reduces risk of non-billability. 68% 76% 74% 73% 49% FY201
Slide 16: 2. Top Clients
2. TOP 10 CLIENTS Revenue earned by top 10 clients as a % of Group revenue Comments 12% Mostly Johannesburg Stock Exchange (JSE) listed A-grade clients. Low counterparty risk. 9% Revenue earned from the top 10 clients accounts for c. 61% of Group revenue. Although listed as a single client, we 7% 6%
Slide 17: 2. Revenue and Client Retention
2. REVENUE AND CLIENT RETENTION 12-month Revenue Retention Rate (RRR) by top 10 clients Comments RRR > 0% means that we retained the client. RRR > 100% means that we earned more revenue in FY2023 118% versus FY2022 from the client. 191% RRR < 100% means that we retained the client, but we 134% 127%
Slide 18: 2. Revenue Contracts
2. REVENUE CONTRACTS Revenue earned by contract type as a % of Group revenue Comments 7% 4% 3% 2% 2% 9% 7% 9% 98% of revenue is earned from low-risk time and material 15% contracts, where clients are billed for actual time spent. 21% Contracts mostly span over 12 months, after which it is typically
Slide 19: 3. Cost Breakdown
3. COST BREAKDOWN Cost breakdown as a % of Group revenue Comments Operating costs consist mainly of: 17% 14% 12% 10% 11% 1. Salaries relating to sales, general and administrative employees. We do not expect to add materially to the headcount in the foreseeable future. Cost of consulting consists of:
Slide 20: 4. Operating Leverage
4. OPERATING LEVERAGE EBITDA margin and operating expenses as a % of Group revenue Comments EBITDA margin contracted primarily due to: 17.5% 14.2% 1. Inflation pressures on costs. 13.0% 12.5% 14.0% 10.8% 2. Australian segment was a drag on profitability 12.2% (3% of Group revenue). 8.7% 10.7% 10.5%
Slide 21: 5. Capital Expenditure
5. CAPITAL EXPENDITURE Capital expenditure as a % of Group revenue Comments 10.0 1.00% 9.0 Asset-light business model. 8.0 0.80% Capital expenditure is mostly on computers for employees, As a % of Group revenue 7.0 office infrastructure and equipment. Purchased a new 6.0 0.60% server in FY2023. The
Slide 22: 6. Free Cash Flow
6. FREE CASH FLOW Free Cash Flow versus accounting profits Comments 120 180% 160% Free cash flow conversion 100 140% Generally, free cash flows track accounting profits. 80 120% ZAR millions 100% 60 98 80% 92 92 87 40 76 60% 60 65 40% 20 46 25 34 20% 0 0% FY2019 FY2020 FY2021 FY2022 FY2023 Group fre
Slide 23: Summarised Financials
LO PBT ns SUMMARISED FINANCIALS
Slide 24: Statement of Financial Position
SUMMARISED FINANCIALS Statement of Financial Position Comments (ZARm) FY2023 FY2022 Assets Investment at fair value 0.0 116.9 Uncomplicated. Trade and other receivables 156.8 142.1 Liquid. Cash and cash equivalents 220.9 50.0 Other 23.3 18.0 Ungeared. Total assets* 401.0 327.0 The large cash balance
Slide 25: Statement of Comprehensive Income
SUMMARISED FINANCIALS Statement of Comprehensive Income Comments (ZARm) Change FY2023 FY2022 Revenue 12% 1091.0 975.7 The South African segment (92% of Group revenue) Gross profit 6% 261.9 246.5 primarily drove the Group’s robust organic revenue growth. Gross profit margin 24.0% 25.3% Other (expense
Slide 26: Statement of Cash Flows
SUMMARISED FINANCIALS Statement of Cash Flows Comments (ZARm) FY2023 FY2022 Cash generated from operations 137.7 135.8 Continue to generate strong cash flows. Net cash from operating activities 96.1 99.2 Capital expenditure -2.9 -1.5 We prioritise organic growth and returning cash flows to Proceeds
Slide 27: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY
Slide 28: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY ORGANIC DISTRIBUTIONS SHARE ACQUISITIVE EXPANSION REPURCHASES EXPANSION • Substantial portion of • Secure new clients. • Thorough • Last acquisition was in 2012. earnings is paid as cash understanding of PBT distributions. • Growth within client Group’s business. • Will c
Slide 29: Capital Allocation
CAPITAL ALLOCATION Where capital was allocated over the past 5 years. PBT Group’s market capitalisation was c. R250m at the beginning of FY2019 300 Cumulative cash returned Increased shareholding in to shareholders CyberPro (58% subsidiary) 250 R400m R17m 10 200 ZAR millions 150 246 100 5 50 12 1 16
Slide 30: Considering Investing in PBT Group?
CONSIDERING INVESTING IN PBT GROUP?
Slide 31: Key Considerations
KEY CONSIDERATIONS Focused business Operate in a growing industry Cash generative business A-grade clients Clear capital allocation strategy Clear value unlock strategy (disposed of non-core assets in FY2023) Management and director ownership align interests with shareholders
Slide 32: Annexure
LO PBT ANNEXURE
Slide 33: CyberPro Consulting Proprietary Limited
CYBERPRO CONSULTING PROPRIETARY LIMITED (58% SUBSIDIARY OF PBT GROUP)
Slide 34: CyberPro Consulting Proprietary Limited
CYBERPRO CONSULTING PROPRIETARY LIMITED (58% SUBSIDIARY OF PBT GROUP) SIMPLIFIED STATEMENT OF FINANCIAL POSITION (ZARm) FY2023 FY2022 Non-Current Assets 6.0 5.2 Current Assets 89.8 85.1 Total assets 95.8 90.3 Non-Current Liabilities - 0.7 Current Liabilities 40.3 42.4 Total liabilities 40.3 43.1 Net
Slide 35: Additional Information
< PN LO PBT ns ADDITIONAL INFORMATION
Slide 36: Five-Year Review
FIVE-YEAR REVIEW Change FY2023 FY2022 FY2021 FY2020 FY2019 Revenue (ZARm) 11.8% 1091.0 975.7 789.0 672.5 588.4 EBITDA (ZARm) 2.5% 142.0 138.6 98.3 72.8 51.4 Profit After Tax (ZARm) 6.7% 98.5 92.3 65.3 46.0 33.6 Cash Generated From Operations (ZARm) 1.5% 137.7 135.8 92.1 102.1 36.5 Normalised Headlin
Slide 37: PBT Group History
PBT GROUP HISTORY Prescient listed on the JSE through a Following the downscaling of Africa and reverse listing via PBT Group, Middle East operations, PBT Group shifts its PBT Group continuing to operate through its two main international focus to the United Kingdom Australia subsidiaries, Prescient
Slide 38: SWOT Analysis of PBT Group
SWOT ANALYSIS OF PBT GROUP STRENGTHS WEAKNESSES OPPORTUNITIES THREATS • A focused and easy to • Longstanding client • Growth within client • Upward pressure on the understand business relationships can put accounts cost of consulting • Asset-light business pressure on profit • Securing new client mo
Slide 39: Disclaimer
« > LD PBT en DISCLAIMER
Slide 40: Disclaimer
DISCLAIMER PBT Group has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information contained in this presentation, including all information that may be defined as 'forward-looking statements’. Forward-looking statements may be identified by
Slide 41: Thank You
THANK YOU Investor relations contact: Francois de Wet Email: francois.dewet@pbtgroup.nl