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Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
Jasco Electronics Holdings Limited FY 2012 financial results presentation
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Jasco Electronics Holdings Limited FY 2012 financial results presentation

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Jasco Electronics Holdings Limited FY 2012 financial results presentation

Jasco Electronics Holdings Limited FY 2012 financial results presentation

Published in: Investor Relations
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  • 1. 1 © 2012 Jasco Electronics Holdings Limited www.jasco.co.za Jasco Interim Results December 2012
  • 2. 2 Agenda 3 Update & Results Summary1 Financial Review2 Divisional Review & Prospects3 Conclusion4 Progress from Sep 2012 to Feb 2013 4 September 2012 February 2013 3-year strategy (ONE Jasco) • Phase II of strategy rolling out (Customer centricity) • Halfway through strategy roll-out – on track • New clients and new agencies secured – orders on hand up 16% to R159m • Investment in annuity income continues Balance sheet optimisation • Cash/optimising property • Complete preference share negotiations with Afrocentric • Arrange funding for large project rollout • Improve working capital to within 30-day target • Head office property sold, reducing D:E ratio • Agreement in final stage • Achieved • Achieved – post disposal of Lighting Structures (LS) Watch list • Lighting & Telecom Structures: Significant market changes • M-TEC: Focus to continue • LS: Losses; sold effective 1/12/12 • TS: Restructuring complete • Equity increase from 34% to 51% achieved – at zero cost • F2012 improvement not sustained – significant customer rollout delays • Investment under review
  • 3. 3 Results Summary 5 Unaudited (Rm) H1 2013 % Change H1 2012 H2 2012 Revenue 552,1 +12 493,9 496,1 • Market share growth PBIT 19,0 -8 20,6 10,6 • Positive impact of property sale • Negative impact of Lighting Structures & Telecom Structures EPS (cents) 10,1 +56 6,4 9,1 • Profit on property sale offsets loss on disposal of LS Headline EPS (cents) 5,0 -27 6,9 10,0 • Mainly M-TEC: Contribution 84% down Financial Review 6
  • 4. 4 Statement of Comprehensive Income 7 Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue 552,1 +12 493,9 496,1 Mainly due to market share growth Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue 552,1 +12 493,9 496,1 PBIT 19,0 -8 20,6 10,6 PBIT margin % 3.4% 4.2% 2.1% Statement of Comprehensive Income 8 Positive / Neutral Negative ICT (Largest contributor) Carrier: Majority Telecom structures Enterprise Industry Fire & Security Power (1st time contributor) Energy Electrical Manufacturers Lighting Structures Property disposal
  • 5. 5 Statement of Comprehensive Income 9 Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue 552,1 +12 493,9 496,1 PBIT 19,0 -8 20,6 10,6 PBIT margin % 3.4% 4.2% 2.1% Net interest paid (9,8) +58 (6,2) (8,1) • Interest received: ‒ As expected, Transnet rental down due to repayment of capital amount (R0,3m vs R2,1m) • Interest paid: ‒ 50% increase in interest paid (Mortgage bond increased in H2 F2012) ‒ High levels of activity = higher working capital outflow ‒ Preference dividend - R3,4m of net interest paid Statement of Comprehensive Income 10 Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue 552,1 +12 493,9 496,1 PBIT 19,0 -8 20,6 10,6 PBIT margin % 3.4% 4.2% 2.1% Net interest paid (9,8) +58 (6,2) (8,1) Share of income from Associates 0,8 -84 4,9 5,2 M-TEC contribution significantly down on lower volumes
  • 6. 6 Statement of Comprehensive Income 11 Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue 552,1 +12 493,9 496,1 PBIT 19,0 -8 20,6 10,6 PBIT margin % 3.4% 4.2% 2.1% Net interest paid (9,8) +58 (6,2) (8,1) Share of income from Associates 0,8 -84 4,9 5,2 Profit before tax 10,0 -48 19,3 7,7 Taxation 3,6 (8,1) 1,0 Effective tax rate -36.1% 41.7% -13.6% • Current rate below statutory rate: ‒ Reversal of deferred tax liability on sale of property (R3,3m) ‒ Strategic utilisation of unrecognised historic assessed losses (likely to last 2-3 years) Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue 552,1 +12 493,9 496,1 PBIT 19,0 -8 20,6 10,6 PBIT margin % 3.4% 4.2% 2.1% Net interest paid (9,8) +58 (6,2) (8,1) Share of income from Associates 0,8 -84 4,9 5,2 Profit before tax 10,0 -48 19,3 7,7 Taxation 3,6 (8,1) 1,0 Effective tax rate -36.1% 41.7% -13.6% Profit for the period 13,6 +21 11,3 8,7 Outside shareholders interest 0,6 (2,2) 4,1 Statement of Comprehensive Income 12 • LeBlanc share in Lighting Structures loss • NewTelco GmbH share in Co-location’s first-time profit
  • 7. 7 Statement of Comprehensive Income Difference between Earnings and Headline earnings (Rm) H1 2013 H1 2012 H2 2012 Loss on disposal of fixed assets 0,5 0,6 0,8 FVA: M-TEC (increased stake) - - 0,4 Loss on disposal of Lighting Structures 4,4 - - After tax profit on disposal of head office property (12,1) - - Total headline earnings adjustments (7,2) 0,6 1,2 13 Unaudited H1 2013 % change H1 2012 H2 2012 Profit attributable to ordinary shareholders (Rm) 14,2 +57 9,1 11,8 EPS (cps)* 10,1 +56 6,4 9,1 HEPS (cps)* 5,0 -27 6,9 10,0 * Weighted average number of shares remained unchanged Average Net Working Capital Days • Stringent focus on working capital – now within target range: ‒ Elimination of Lighting Structures • Bad debt : revenue = <1%; blue-chip client base 14 Debtors Stock Net Days -78.7 -74.9 -81.7 -74.6 75.4 79.5 81.3 75.5 29.7 30.8 32.1 28.5 -100 -50 0 50 100 June 2011 (Incl. Spescom) Dec 2011 June 2012 Dec 2012 (Excl LS) Creditors 26.5 35.4 31.7 29.4 Dec 2012 (Excl. LS) Target: 30 days
  • 8. 8 Summarised Statement of Cash Flows • Cash generated from operations in line with operating profit • Investing activities ‒ New plant for Electrical Manufacturers, group IT & building refurbishments • Overdraft within facility limits -65.1 -17.9 -4.3 -0.5 -9.8 -0.8 -20.3 19.5 -31.8 -80 -60 -40 -20 0 20 40 Dec 2012 (Rm) Dec 2011 (Rm) -38.4 -2.8 -3.2 -3.7 -6.2 -5.6 -38.7 33.1 -16.9 -80 -60 -40 -20 0 20 40 Working capital changes Cash generated from operations Net cash generated from operations Net finance charges Taxation paid Net effects of financing & investing activities Opening balance Closing balance Dividend paid 15 Interest-bearing debt • Net D:E ratio ‒ 47% incl. redeemable prefs • Sale of property improves D:E ratio from H2 F2013 ‒ 31% incl. redeemable prefs • Debt restructuring programme well advanced 100 100 100 100 100 51 64 54 70 10 44% 48% 44% 47% 31% -10 10 30 50 0 40 80 120 160 200 June 2011 Dec 2011 June 2012 Dec 2012 Post property disposal Net interest-bearing debt (excl. redeemable prefs) Interest-bearing redeemable prefs Rm 16 D:E ratio - max 50% D:E % Interest bearing debt excludes short-term banking facilities
  • 9. 9 Divisional Review 17 * M-TEC Telecom reported separately Delivery on Strategy 18 ICT Solutions Grow Market Share 6.8 14.8 17.4 0 5 10 15 20 H1 F2012 H2 F2012 H1 F2013 Growth in voice & data annuity base • Mining existing client base • 5 New blue-chip customers • 3 New agencies • 3 New business sectors • Focus on annuity income ‒ Currently >30% of total ICT revenue ‒ New push into Voice & Data annuity income +156%
  • 10. 10 ICT Carrier – Results Review 19 Unaudited (Rm) H1 2013 % Change H1 2012 H2 2012 Revenue 292,4 +25 234,7 243,6 • Very competitive market conditions • Market share increased across the board, excluding Telecom Structures PBIT 20,9 +1 20,7 18,9 PBIT margin % 7.1% 8.8% 7.8% • R2,8m investment in converged solutions, growing annuity income • R1,7m loss in Telecom Structures ‒ Remaining Carrier businesses up 58% Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue 96,7 +1 95,9 113,3 • 50% annuity income • Maintained volumes against continued slow corporate spend on technology upgrades PBIT 6,3 -3 6,5 14,7 PBIT margin % 6.5% 6.7% 13.0% • Margins impacted by: − Change in product mix due to fluctuating demand cycles − Strategic blue-chip customer wins at initial lower margins – higher-margin service business to follow • H2 F2012 skewed by timing of 2 significant, once-off equipment installations ICT Enterprise – Results Review 20
  • 11. 11 Divisional Review 21 Delivery on Strategy Diversification • Moving up the value chain ‒ Fire revenue now contributing meaningfully ‒ Strong 1st time H1 contribution from Power • Expanding into new business sectors, eg. mining & logistics • One Jasco (Cross-selling) ‒ 5 contracts won through inter-group collaboration Industry Solutions 22
  • 12. 12 Industry Solutions – Results Review 23 * Excludes inter-company sales but includes gross interest received on Transnet rental Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue* 81,2 +35 60,4 69,3 • Fire up >200% • 1st time contribution from low voltage power PBIT 4,0 -13 4,6 2,0 PBIT margin % 4.9% 7.7% 2.9% • First time overhead allocation of R1,8m from group to vertical • As expected, R1,9m decrease in net interest received on Transnet rental Divisional Review 24 ELECTRICAL MANUFACTURERS LIGHTING STRUCTURES * M-TEC Electrical reported separately
  • 13. 13 Delivery on Strategy Growth • Repositioning Electrical Manufacturers ‒ Focus on contract manufacturing ‒ Assessing divestment of small non-core assets • Long term positioning for high growth energy market ‒ IPP – balance of plant ‒ Transformer market Energy Solutions 25 Energy Solutions – Results Review 26 Electrical Manufacturers Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue 71,5 +7 67,0 66,7 • Increased volumes from white goods customers PBIT 8,6 +27 6,8 6,3 PBIT margin % 12.0% 10.1% 9.4% • Consolidation of production facilities bearing fruit • More cost-effective supply chain
  • 14. 14 Energy Solutions – Results Review 27 Lighting Structures Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue 30,8 -43 53,9 25,0 • Market changed significantly and permanently ‒ Erratic spend from municipal customers ‒ New spend via nominated sub-contractors only PBIT -1,1 -137 3,0 -7.7 PBIT margin % -3.6% 5.6% -30.8% • Decisive action taken: Jasco’s 50.5% stake sold to LeBLANC effective 1 Dec 2012 Divisional Review Associate – M-TEC 28
  • 15. 15 Associate – Results Review 29 M-TEC Unaudited (Rm) H1 2013 % change H1 2012 H2 2012 Revenue 426,9 -19 529,8 544,9 • Operational management improved • Unexpected 50% (R100m) decline in customer offtake due to project delays in Q2 Jasco’s after tax share 0,8 -84 4,9 5,1 • Costs remained the same on significantly lower revenue Prospects & Conclusion 30
  • 16. 16 Management Focus Areas Driving a focused strategy • Simplify processes across group • Identified growth hurdles per business ‒ Small non-core assets identified for divestment Watch list • Telecom Structures – restructure complete • M-TEC: investment under review Funding • Continued focus on working capital • Debt restructuring – Reduce overall debt-servicing commitments – Finalise alternatives for preference shares 31 • Market conditions to remain competitive • Cloud Solutions gaining traction • Build up IT capacity & capability • Implementing efficiency measures • New technology developments ‒ LTE - 4G ‒ In-building coverage solutions • Annuity business growing • Further market share gains CARRIER ENTERPRISE Prospects 32
  • 17. 17 • Market conditions to remain competitive • Cloud Solutions gaining traction • Build up IT capacity & capability • Implementing efficiency measures • New technology developments ‒ LTE - 4G ‒ In-building coverage solutions • Annuity business growing • Further market share gains CARRIER ENTERPRISE Prospects • Increased offering meets clients’ one-stop requirements • Energy optimisation: ‒ Essential offering due to Eskom price increases • Government spend still lagging 33 • Market conditions to remain competitive • Cloud Solutions gaining traction • Build up IT capacity & capability • Implementing efficiency measures • New technology developments ‒ LTE - 4G ‒ In-building coverage solutions • Annuity business growing • Further market share gains CARRIER ENTERPRISE Prospects • Increased offering meets clients’ one-stop requirements • Energy optimisation: ‒ Essential offering due to Eskom price increases • Government spend still lagging • Increased value-add in white goods manufacturing ‒ More wallet-share of key customer ‒ Retail consumer spend could come under pressure • Positioning for IPP balance of plant spend 34
  • 18. 18 Conclusion 35 Decisive action on non-performing areas Core businesses positioned to achieve medium- to long-term earnings growth Example of clients Q & A
  • 19. 19 Forward looking statements 37 This presentation which sets out the year end results for Jasco Electronics Holdings Limited for the year ended 30 June 2012 contains ‘forward-looking statements’, which have not been reviewed or reported on by the Group’s auditors, with respect to the Group’s financial condition, results of operations and businesses and certain of the Group’s plans and objectives. In particular, such forward looking statements include statements relating to, amongst others, the Group’s future performance; future capital expenditures, acquisitions, divestitures, expenses, revenues, financial conditions, dividend policy, and future prospects; business and management strategies relating to the expansion and growth of the Group; the effects of regulation of the Group’s businesses by governments in the countries in which it operates; expectations regarding the operating environment and market conditions. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as ‘will’, ‘anticipates’, ‘aims’, ‘could’, ‘may’, ‘should’, ‘expects’, ‘believes’, ‘intends’, ‘plans’ or ‘targets’. By their nature, forward-looking statements are inherently predictive, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future, involve known and unknown risks, uncertainties and other facts or factors which may cause the actual results, performance or achievements of the Group, or its industry to be materially different from any results, performance or achievement expressed or implied by such forward-looking statements. Forward-looking statements are not guarantees of future performance and are based on assumptions regarding the Group’s present and future business strategies and the environments in which it operates now and in the future. Undue reliance should not be placed on such statements and opinions because by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors that could cause actual results and Group plans and objectives to differ materially from those expressed or implied in the forward looking statements. Neither the Group nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (based on negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation and do not undertake to publicly update or revise any of its opinions or forward looking statements whether to reflect new information or future events or circumstances otherwise. For further information please contact: Chief Executive Officer Tel: +27 11 266 1500 E-mail: info@jasco.co.za Chief Financial Officer Tel: +27 11 266 1500 E-mail: info@jasco.co.za www.jasco.co.za 38 Pete da Silva Warren Prinsloo

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