Reunert Limited · JSE:RLO
Reunert — H1 2021 Earnings Presentation
24 slides from Reunert's earnings presentation, May 26, 2021
Slide 1: Reunert Interim Results Presentation
REUNERT INTERIM RESULTS PRESENTATION For the six months ended 31 March 2021
Slide 2: Agenda
AGENDA A Key highlights B Financial performance C Strategy update D Segmental performance E Business outlook and prospects 2
Slide 3: Key Highlights
KEY HIGHLIGHTS Alan Dickson Group CEO 3 3
Slide 4: Key Highlights
KEY HIGHLIGHTS Solid financial Key improvement actions Improved performance successfully implemented shareholder returns Group has effectively adapted to the Prior year actions yielded the required Positive cash generation enabled new operating reality results growth in dividend and commencement of
Slide 5: Financial Performance
FINANCIAL PERFORMANCE Group revenue Operating profit Attributable profit Dividend R4 614m R436m R311m 70c per share 11% 8% 1H2020: R4 144m 1H2020: (R155m) 1H2020: (R326m) 1H2020: 65c per share 5
Slide 6: Financial Performance
FINANCIAL PERFORMANCE Nick Thomson Group CFO 6 6
Slide 7: Consolidated Statement of Profit or Loss
CONSOLIDATED STATEMENT OF PROFIT OR LOSS Six months ended 31 March 2021 2020 % Rm Period on period change Rm Unaudited Unaudited change Revenue Revenue 4 614 4 144 11 EE 782 19% EBITDA before impairment of financial assets 570 529 8 ICT (239) -6% Credit write-off (5) (298) (98) AE (95) -2% Expected
Slide 8: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT FINANCIAL POSITION 31 Mar 2021 31 Mar 2020 30 Sep 2020 Rm Unaudited Unaudited Audited Non-current assets ► PP&E replacement in line with depreciation PP&E, investment property and intangibles 1 261 1 256 1 271 Right-of-use assets 163 200 186 ► No impairments required at 31 Mar
Slide 9: Cash Flow Analysis
CASH FLOW ANALYSIS MOVEMENT IN CASH FLOW (Rm) 323 553 (116) 11 235 216 (16) (137) (315) 270 34 216 (14) (76) (12) Opening Dividends Total cash FX effects on Closing Cash Working Interest, Taxation paid Capital Free cash Capital Investing Financing Total cash balance paid generated OD and cash balanc
Slide 10: Capital Expenditure
CAPITAL EXPENDITURE R million +36% +36% 31 Mar 31 Mar Category (Rm) 2021 2020 90 90 PP&E and solar assets 57 42 24 Intangibles 23 18 Other 10 11 Total 90 66 66 66 8 25 76 16 56 33 39 9 14 10 2 Mar 2020 YTD Mar 2021 YTD Mar 2020 YTD Mar 2021 YTD Other Applied Electronics Replacement Expansion ICT Ele
Slide 11: Strategy Update
STRATEGY UPDATE Alan Dickson Group CEO 11 11
Slide 12: Our Strategy: Scaling Early Life Cycle Business
OUR STRATEGY/ SCALING EARLY LIFE CYCLE BUSINESS Providing renewable energy technology and solutions ► Renewable energy market continues to grow strongly ► Energy generation market liberalisation continues as government progresses on its commitments ─ REIPP Window 5 released for tender ─ The Governme
Slide 13: Our Strategy: Scaling Early Life Cycle Business
OUR STRATEGY/ SCALING EARLY LIFE CYCLE BUSINESS Providing renewable energy technology and solutions ► Investment in energy management resulted in successful launch of the Astute product range ─ IoT devices enabling remote management of domestic energy ─ Range will be expanded with further product la
Slide 14: Our Growth Strategy: ICT as an enabler for business
OUR GROWTH STRATEGY/ SCALING EARLY LIFE CYCLE BUSINESS ICT as an enabler for business’ operational improvement ► Good progress on our acquisition strategy in our Solutions and Systems Integrator Cluster ► +OneX is expanding their service offering through the acquisition of two complementary bolt-on
Slide 15: Our Growth Strategy: Enhancing Shareholder Returns
OUR GROWTH STRATEGY/ ENHANCING SHAREHOLDER RETURNS African cable operations ► Reduced holding in our Zimbabwean cable operation, Cafca, by 18,8% ► Received binding offers to further reduce our equity stake Share buyback programme ► Commenced a share buyback programme to enhance shareholder returns ►
Slide 16: Segmental Performance
SEGMENTAL PERFORMANCE Alan Dickson Group CEO
Slide 17: Electrical Engineering
ELECTRICAL ENGINEERING 36% REVENUE (Rm) Operational performance 2 431 2 775 2 561 Cable operations 1 738 ► Weak local cable infrastructure demand continues in the Medium and High Voltage Cable Segments 1H2018 1H2019 1H2020 1H2021 ► Liquidity position in Zambia is unchanged ─ Steady cash position e
Slide 18: ICT
ICT 16% Operational performance REVENUE (Rm) 1 670 1 722 1 494 1 253 Finance ► A minor decrease in the overall book to R2,6bn resulting from settlements exceeding new deals discounted 1H2018 1H2019 1H2020 1H2021 ► The low interest rate environment reduced the return on the overall book, as expecte
Slide 19: ICT
ICT PERCENTAGE OF CUSTOMERS USING MORE THAN ONE PRODUCT Total Workspace Provider 27% 29% 21% 24% ► Steady improvement in financial performance as the economy opened and lockdown level 1 instituted ► Sales volumes returned to above 80% of pre-COVID-19 pandemic volumes ► Complementary products and ser
Slide 20: Applied Electronics
APPLIED ELECTRONICS 9% REVENUE (Rm) 1 038 Operational performance 999 949 ► The segment’s difficult trading conditions were due to: 895 ─ Component sourcing delays ─ Stronger rand 1H2018 1H2019 1H2020 1H2021 ─ Mark-to-market losses on cost of imports as rand strengthened ─ Travel restrictions impa
Slide 21: Applied Electronics
APPLIED ELECTRONICS RENEWABLE ENERGY SALES (% OF TOTAL SEGMENT SALES) Renewable energy CAGR 48% ► Terra Firma Solutions continued to successfully expand its B-O-O investments ► Launch of Lumika Renewables positions the Group to accelerate its renewable energy strategy ► A continuous improvement in
Slide 22: Business Outlook
BUSINESS OUTLOOK Alan Dickson Group CEO 22 22
Slide 23: Prospects
PROSPECTS ► Reunert has continued its recovery from the impact of Covid-19 ► The Group’s performance should remain robust into 2H2021 due to: ─ the sustained performance of the Electrical Engineering Segment ─ the ICT Segment continuing to deliver in line with its recent performance ─ an improved Ap
Slide 24: Q&A Key upcoming dates
Q&A Key upcoming dates ► Please type your questions on the webcast portal ► Financial year end 30 September ► Kindly email Karen Smith at ► Full year results 24 November karens@reunert.co.za should you wish to have a one-on-one call with the management team ► Integrated Report 17 December 24