Mustek Limited · JSE:MST
Mustek — H1 2024 Earnings Presentation
23 slides from Mustek's earnings presentation, Mar 6, 2024
Slide 1: Results Announcement for the six months ended 31 December 2023
RESULTS ANNOUNCEMENT for the six months ended 31 December 2023 Virtual Presentation Date | 6 March 2024 Time | 11h00 Presentation starts soon
Slide 2: Results announcement
Results announcement for the six months ended 31 December 2023 Virtual Presentation Date | 6 March 2024 Time | 11h00 Presentation starts soon
Slide 3: Hein Engelbrecht and Shabana Aboo Baker Ebrahim
Hein Engelbrecht Shabana Aboo Baker Ebrahim Group CEO Group FD heine@mustek.co.za ShabanaA@mustek.co.za 3
Slide 4: Group Salient Features
GROUP SALIENT FEATURES REVENUE GP Margin PBT down down from down R4.3bn 13% 13.4% 14.1% R69m 61% HEPS NAV CASH per share used in OPS down No Dec ‘22 91 cents 59% R27,25 change R126m R125m Results of the six months ended 31 December 2023 4
Slide 5: Group Overview
GROUP OVERVIEW Established in Listed on the JSE 1987 in 1997 Our mission is centred on anticipating material stakeholder needs for long-term End-to-end IT sustainability and sustainable National technology presence solutions provider Results of the six months ended 31 December 2023 5
Slide 6: Group Structure
GROUP STRUCTURE Manufacturing Service Distribution Training assembly and support Results of the six months ended 31 December 2023 6
Slide 7: Group Brand Portfolio
GROUP BRAND PORTFOLIO Edge / Client Gaming Software / Cloud Results of the six months ended 31 December 2023 7
Slide 8: Group Brand Portfolio
GROUP BRAND PORTFOLIO Network / Infrastructure / Servers Sustainable energy Security & Compliance Training & Enablement Results of the six months ended 31 December 2023 8
Slide 9: Financial Summary
FINANCIAL SUMMARY H1:21 H2:21 H1:22 H2:22 H1:23 H2:23 H1:24 Revenue (R billion) 3.7 4.3 4.2 4.8 4.9 5.2 4.3 Gross Profit (R million) 516 672 677 596 691 722 570 GP margin (%) 13.9% 15.6% 16.2% 12.5% 14.1% 13.8% 13.4% EBITDA (R million) 236 280 277 179 268 240 213 Net Profit (R million) 140 157 152 7
Slide 10: Revenue
REVENUE • Green energy products R billion decline 6 5.2 • Overall subdued consumer 4.8 4.9 5 confidence 4.3 4.2 4.3 4 3.7 • Traditional business stablisation 3 2 1 0 H1:21 H2:21 H1:22 H2:22 H1:23 H2:23 H1:24 Results of the six months ended 31 December 2023 10
Slide 11: Gross Profit Margin
GROSS PROFIT MARGIN • Green energy products % attained lower margins 17.00% 16.2% 15.6% • Margin growth in 14.1% traditional business 15.00% 13.9% 13.8% 13.4% 12.5% 13.00% 11.00% 9.00% 7.00% 5.00% H1:21 H2:21 H1:22 H2:22 H1:23 H2:23 H1:24 Results of the six months ended 31 December 2023 11
Slide 12: Profit from Operations
PROFIT FROM OPERATIONS R (million) • Higher profitability versus pre-COVID 300.00 20.00% 270 271 • Slight slowdown 19.00% 250.00 242 • Cost containment 18.00% 217 213 17.00% 200.00 181 164 16.00% 150.00 15.00% 127 126 116 108 14.00% 100.00 13.00% 12.00% 50.00 11.00% - 10.00% H1:19 H2:19 H1:20 H2:20
Slide 13: Net Financing Cost vs Average Interest Rates
NET FINANCING COST VS AVERAGE INTEREST RATES 14.00% 120.00 11.8% 12.00% 10.9% 100.00 9.5% 10.00% 80.00 8.00% 60.00 6.00% 5.3% 4.7% 40.00 4.00% 2.9% 2.00% 20.00 36 35 28 42 68 83 109 0.00% - H1:21 H2:21 H1:22 H2:22 H1:23 H2:23 H1:24 Net finance cost Average prime rate Average SOFR rate SOFR: Secured
Slide 14: HEPS (cents)
HEPS (cents) 300 • Higher earnings versus 240 pre-COVID 250 237 222 202 200 153 150 120 100 91 76 51 50 0 H1:20 H2:20 H1:21 H2:21 H1:22 H2:22 H1:23 H2:23 H1:24 Results of the six months ended 31 December 2023 14
Slide 15: Dividend per Share (cents)
DIVIDEND PER SHARE (CENTS) 90 76 77 • Year End declaration • 20% payout ratio maintained 30 26 Jun-19 Jun-20 Jun-21 Jun-22 Jun-23 Results of the six months ended 31 December 2023 15
Slide 16: PE Ratio
PE RATIO Results of the six months ended 31 December 2023 16
Slide 17: NAV and NTAV per Share
NAV AND NTAV PER SHARE 3,000.00 2,724 2,725 2,575 2,500.00 2,395 2,259 2,250 2,227 2,139 2,046 2,000.00 1,761 1,826 1,702 1,546 1,440 1,500.00 1,000.00 500.00 - FY'21 H1 FY'21 H2 FY'22 H1 FY'22 H2 FY'23 H1 FY'23 H2 FY'24 H1 NAV per share (cents) Tangible NAV per share (cents) Results of the six mont
Slide 18: Inventory
INVENTORY 3 112 120 102 Millions 2.75 101 2.5 100 86 84 86 • Stock levels still elevated 2.25 2 •80 Healthy mix 68 1.75 • Working capital 1.5 60 management focus 1.25 1 40 0.75 0.5 20 0.25 1.5 1.3 1.6 2.1 2.0 2.4 2.3 0 0 FY'21 H1 FY'21 H2 FY'22 H1 FY'22 H2 FY'23 H1 FY'23 H2 FY'24 H1 On hand (net of
Slide 19: Trade Receivable Days
TRADE RECEIVABLE DAYS 80 72 70 • Debtor arrangements 56 56 • Project based deals 60 53 52 54 49 • Working capital 50 management focus 40 30 20 10 0 FY'21 H1 FY'21 H2 FY'22 H1 FY'22 H2 FY'23 H1 FY'23 H2 FY'24 H1 Results of the six months ended 31 December 2023 19
Slide 20: Cash Generated from Operations
CASH GENERATED FROM OPERATIONS 600.0 545 • Traditional 495 seasonality 500.0 patterns have returned 400.0 322 284 300.0 200.0 100.0 20 5 0.0 H1:20 H2:20 H1:21 H2:21 H1:22 H2:22 H1:23 H2:23 H1:24 -100.0 -114 -125 -126 -200.0 Results of the six months ended 31 December 2023 20
Slide 21: Strategic Priorities
STRATEGIC PRIORITIES Structural improvements in working capital and liquidity Unlocking the value in data driven decision making and process automation Grow product lines in sustainable technologies Grow and develop the Group’s human capital Results of the six months ended 31 December 2023 21
Slide 22: Opportunities
OPPORTUNITIES Strategic Cybersecurity Diversification of partnerships and solutions product portfolio collaborations Digital transformation Artificial and cloud intelligence solution offerings Results of the six months ended 31 December 2023 22
Slide 23: Thank You
Shabana Aboo Baker Ebrahim Group FD ShabanaA@mustek.co.za THANK YOU Hein Engelbrecht Group CEO heine@mustek.co.za