Slide 1: Results for the year ended 30 June 2024
RESULTS FOR THE YEAR ENDED 30 JUNE 2024 Date | 19 September 2024 Time | 10h00 Presentation starts soon
Slide 2: Results for the year ended 30 June 2024
RESULTS FOR THE YEAR ENDED 30 JUNE 2024 Date | 19 September 2024 Time | 10h00 Presentation starts soon
Slide 3: Hein Engelbrecht and Shabana Aboo Baker Ebrahim
Hein Engelbrecht Group CEO Shabana Aboo Baker Ebrahim Group FD Results of the year ended 30 June 2024 3
Slide 4: Group salient features
GROUP SALIENT FEATURES REVENUE EBITDA HEPS down down down 16% R8.5bn 31% R353m 82% 67 cents NAV CASH DPS PER SHARE GENERATED FROM OPERATIONS up down down 3% R28,01 69% R61m 90% 7,5 cents Results of the year ended 30 June 2024 4
Slide 5: Group overview
GROUP OVERVIEW End-to-end IT and Established sustainable in 1987 technology Our mission is solutions provider centred on Listed on the JSE in 1997 anticipating material stakeholder needs National presence for long-term sustainability Results of the year ended 30 June 2024 5
Slide 6: Group structure
GROUP STRUCTURE Results of the year ended 30 June 2024 6
Slide 7: Group brand portfolio
GROUP BRAND PORTFOLIO Edge / Client Gaming Software / Cloud Results of the year ended 30 June 2024 7
Slide 8: Group brand portfolio
GROUP BRAND PORTFOLIO Network / Infrastructure / Servers Sustainable energy Security & Compliance Training & Enablement Results of the year ended 30 June 2024 8
Slide 9: Financial summary
FINANCIAL SUMMARY FY20 FY21 FY22 FY23 FY24 Revenue (R billion) 6.4 8.0 8.9 10.1 8.5 Gross Profit (R million) 910 1 188 1 273 1 411 1 040 GP margin (%) 14.2% 14.9% 14.3% 13.9% 12.2% EBITDA (R million) 247 516 456 509 349 Net Profit (R million) 88 296 225 220 21 HEPS (cents) 127 442 357 375 67 NAV/Sha
Slide 10: Revenue
REVENUE R (billion) • Green energy products 10.1 decline 8.9 • Uncertainty leading up to 8.5 8.0 local election • Traditional business 6.4 stabilisation June'20 June'21 June'22 June'23 June'24 Results of the year ended 30 June 2024 10
Slide 11: Gross profit margin
GROSS PROFIT MARGIN GP % • Green energy products attained lower margins • Product mix • Margins for the rest of the 14.9% business is stable 14.2% 14.3% 13.9% 12.2% Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Results of the year ended 30 June 2024 11
Slide 12: Profit from operations and margin
PROFIT FROM OPERATIONS AND MARGIN R(million) 500.00 6% 7% • Higher operating profit 450.00 versus pre-COVID 6% 400.00 5% • Sustainable operating margin 5% 350.00 5% • Cost containment efforts 4% 4% 300.00 4% 4% 250.00 3% 200.00 150.00 2% 100.00 1% 50.00 218 201 472 407 455 279 - 0% Jun 2019 Jun 2020
Slide 13: Net financing cost vs average interest rates
NET FINANCING COST VS AVERAGE INTEREST RATES 250.00 14% 11.8% 12% 10.2% 200.00 10% 7.0% 7.4% 150.00 8% 5.3% 6% 3.8% 100.00 4% 2% 50.00 0.1% 0.2% 0% 70 70 151 206 - -2% Jun-21 Jun-22 Jun-23 Jun-24 Net finance cost Average prime rate SOFR* * Secured overnight financing rate Results of the year ended 3
Slide 14: HEPS (cents)
HEPS (CENTS) 442 • Driven by decline in operating profit and increase 375 357 in net finance costs • Impairment of investment in Zaloserve (Sizwe) 127 67 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Results of the year ended 30 June 2024 14
Slide 15: Dividend per share (cents)
DIVIDEND PER SHARE (CENTS) 90 • 20% pay-out ratio of 77 attributable profit 76 maintained 26 7 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 Results of the year ended 30 June 2024 15
Slide 16: PE ratio
PE RATIO Results of the year ended 30 June 2024 16
Slide 17: NAV and TNAV per share
NAV AND TNAV PER SHARE 2,801 2,724 2,395 2,446 2,250 2,046 1,826 1,598 1,546 1,204 Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 NAV per share (cents) Tangible NAV per share (cents) Results of the year ended 30 June 2024 17
Slide 18: Inventory
INVENTORY 3 120.00 101 102 • Improvement but stock levels 3 94 93 100.00 still elevated • Working capital management 2 80.00 68 focus 2 60.00 2.4 2.1 2.1 1 40.00 1.4 1.3 1 20.00 - - Jun-20 Jun-21 Jun-22 Jun-23 Jun-24 On hand In transit Inventory days (excl GIT) Results of the year ended 30 June 2024
Slide 19: Trade receivable days
TRADE RECEIVABLE DAYS 62 • Economic constraints 55 56 52 • Project-based deals 49 • Working capital management focus Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Results of the year ended 30 June 2024 19
Slide 20: Cash generated from operations
CASH GENERATED FROM OPERATIONS 600.0 545 • Return to traditional 500.0 seasonal patterns • Cash release from inventory 400.0 322 and receivables 284 300.0 • Repayment of trade finance 186 200.0 100.0 20 0.0 H1:21 H2:21 H1:22 H2:22 H1:23 H2:23 H1:24 H2:24 -100.0 -114 -125 -126 -200.0 Results of the y
Slide 21: Strategic priorities
STRATEGIC PRIORITIES • Structural improvements in working capital and liquidity - Reduced stock holding - Stricter credit terms • Disposing of non-strategic/non-core assets • Smaller complimentary acquisitions that make sense for the group Results of the year ended 30 June 2024 21
Slide 22: Opportunities
OPPORTUNITIES Cybersecurity Artificial Intelligence ICT Skills Self-service shortage – offerings training Results of the year ended 30 June 2024 22
Slide 23: Contact details
Hein Engelbrecht – Group CEO heine@mustek.co.za Shabana Aboo Baker Ebrahim – Group FD shabanaa@mustek.co.za