1
FINANCIAL RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
Agenda
Financial Review
Divisional Review
Prospects & Conclu...
2
Group Review1
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
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© 2014 Jasco Electronics Holdings Limited www....
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© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
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3-year strategy:
Rights offer concluded 22 Jan 2014
Rights o...
4
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Financial Summary
7
Unaudited (Rm) H1 2014
%
Change H1 2013
Re...
5
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Financial Summary
9
Unaudited (Rm) H1 2014
%
Change H1 2013
Re...
6
Financial Review2
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
11
© 2014 Jasco Electronics Holdings Limited...
7
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
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Group reporting structure from H1 2014
C A R R I E R
Teleco...
8
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
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Group reporting structure from H1 2014
C A R R I E R
E N T ...
9
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
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Group reporting structure from H1 2014
C A R R I E R
E N T ...
10
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Statement of Comprehensive Income
19
Unaudited (Rm) H1 2014
%...
11
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Statement of Comprehensive Income
21
Unaudited (Rm) H1 2014
%...
12
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Statement of Comprehensive Income
23
* Includes R8,8m profit ...
13
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Statement of Comprehensive Income
25
Unaudited (Rm) H1 2014
%...
14
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Statement of Comprehensive Income
27
Unaudited (Rm) H1 2014
%...
15
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Average Net Working Capital
29
Days
-81.7 -74.6
-89.8 -89.8 -...
16
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Summarised Statement of Cash Flows
31
Investing activities in...
17
© 2014 Jasco Electronics Holdings Limited
Divisional review3
www.jasco.co.za
33
© 2014 Jasco Electronics Holdings Limit...
18
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
ICT Carrier – Results Review
35
Unaudited (Rm) H1 2014
%
chan...
19
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
ICT Enterprise – Results Review
37
Restructure complete
19%
C...
20
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Contr.
to group
revenueICT Networks – Results Review
39
Stron...
21
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Contr.
to group
revenueE&I - Energy – Results Review
Electric...
22
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Contr.
to group
revenue
14%
E&I - Industry – Results Review
4...
23
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Divisional Prospects: Growth initiatives
45
ICT Solutions
Inc...
24
Prospects - Conclusion4b
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
47
© 2014 Jasco Electronics Holdings...
25
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Financial position improved
Conclusion
49
Business base now p...
26
© 2014 Jasco Electronics Holdings Limited www.jasco.co.za
Disclaimer
51
This presentation which sets out the interim re...
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Jasco Electronics Holdings Limited HY 2014 financial results presentation

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Jasco Electronics Holdings Limited HY 2014 financial results presentation

  1. 1. 1 FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 Agenda Financial Review Divisional Review Prospects & Conclusion Group Review1 Financial Review2 Financial Review Divisional Review3 Prospects & Conclusion4 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 2
  2. 2. 2 Group Review1 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 3 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Statements made in September 2013 Progress Improve funding position & reduce interest burden Bond programme to be registered for possible future use Planned rights issue (R30m-R60m) Settle pref shares & reduce interest charge Exit low-value manufacturing systematically Finalise sale of M-TEC Exit other non-core manufacturing activities, such as automotive, leisure and plugs, during F2014 Watch list E&I – Security: Overheads to be aligned to revenue ICT – Networks: Focus on revenue growth and cost containment ICT – Enterprise: Improve productivity Improve earnings Complete restructure programme (costs tapering off in H2 F2014) Consolidation of procurement Improvement in working capital Last year of 3-year restructuring strategy 4 3-year strategy: Group progress in H1 F2014
  3. 3. 3 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 5 3-year strategy: Rights offer concluded 22 Jan 2014 Rights offer: Net R55m raised Reduces overdraft Improves D:E ratio Top 3 shareholders post rights issue AfroCentric CIH Goldsol II 72m new shares issued @ 80 cents per share (cps) New strategic shareholders introduced 2 BBBEE investment vehicles: Goldsol II & Harvibase ‒ Owners have track record in Industry & Telecommunications Provide technical alliance & cross-selling opportunities © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Financial Summary 6 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 Majority of operational businesses performed well on a like-for-like basis
  4. 4. 4 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Financial Summary 7 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 H1 2013: High base due to once-offs (net R4,3m) Restructuring costs (R6,1m) H1 2014: Impact of R8,4m restructuring costs Security disappointed – action taken © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Financial Summary 8 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 Core PBIT* 21,2 +2 20,7 * Adjusted to exclude once offs and restructuring costs 20.7 14.9 21.2 0 10 20 30 H1 2013 H2 2013 H1 2014
  5. 5. 5 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Financial Summary 9 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 Core PBIT 21,2 +2 20,7 EPS (cents) 4.9 -51 10.1 H1 2013 high base due to profit on disposal of property (R12m after tax) © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Financial Summary 10 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 Core PBIT 21,2 +2 20,7 EPS (cents) 4.9 -51 10.1 Headline EPS (cents) 5.3 +6 5.0 * Only difference between EPS & HEPS in H1 2014 is due to R0,6m loss on disposal of fixed assets 5.0 -4.7 5.3 -5 0 5 H1 2013 H2 2013 H1 2014
  6. 6. 6 Financial Review2 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 11 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 12 Group reporting structure from H1 2014 Information, Communications & Technology Energy & Industry
  7. 7. 7 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 13 Group reporting structure from H1 2014 C A R R I E R Telecom Structures Sold H2 F2013 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 14 Group reporting structure from H1 2014 C A R R I E R E N T E R P R I S E
  8. 8. 8 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 15 Group reporting structure from H1 2014 C A R R I E R E N T E R P R I S E N E T W O R K S © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 16 Group reporting structure from H1 2014 C A R R I E R E N T E R P R I S E N E T W O R K S E N E R G Y Lighting Structures Sold H1 F2013
  9. 9. 9 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 17 Group reporting structure from H1 2014 C A R R I E R E N T E R P R I S E N E T W O R K S E N E R G Y I N D U S T R Y © 2014 Jasco Electronics Holdings Limited www.jasco.co.za M-TEC Held for sale 18 Group reporting structure from H1 2014 C A R R I E R E N T E R P R I S E N E T W O R K S E N E R G Y I N D U S T R Y
  10. 10. 10 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Statement of Comprehensive Income 19 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 * Impacted by exit of Telcom Structures in H2 2013 ^ Mainly due to R55m once-off Telecom Namibia equipment sale in comparative period H1 F2013 # Impacted by exit of Lighting Structures H1 F2014 Verticals % change Contribution to the group ICT ─ Carrier Solutions 0%* 41% ─ Enterprise Solutions +6% 19% ─ Networks Solutions -45%^ 7% E&I ─ Energy Solutions -2%# 19% ─ Industry Solutions -5% 14% © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 PBIT margin 2.4% 3.4% Statement of Comprehensive Income 20 Verticals % change Contribution to the group* ICT ─ Carrier Solutions +10% 57% ─ Enterprise Solutions +46% 24% ─ Networks Solutions -360% -8% E&I ─ Energy Solutions +60% 32% ─ Industry Solutions -136% -5% * Excluding HQ cost
  11. 11. 11 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Statement of Comprehensive Income 21 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 Once-offs - 4,3* * Includes R8,8m profit on property disposal and R4,5m loss on disposal of Lighting Structures © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Statement of Comprehensive Income 22 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 Once-offs - 4,3* PBIT (Excl. once-offs) 12,8 -13 14,7 Restructuring costs 8,4 6,0 * Includes R8,8m profit on property disposal and R4,5m loss on disposal of Lighting Structures
  12. 12. 12 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Statement of Comprehensive Income 23 * Includes R8,8m profit on property disposal and R4,5m loss on disposal of Lighting Structures Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 Once-offs - 4,3* PBIT (Excl. once-offs) 12,8 -13 14,7 Restructuring costs 8,4 6,0 Core PBIT (Excl. once-offs & restructuring costs) 21,2 +2 20,7 Core PBIT margin 4.0% 3.7% © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Statement of Comprehensive Income 24 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 PBIT margin 2.4% 3.4% Net interest paid (7,6) -22 (9,8) R4,5m on bank overdrafts (H1 2013: R6,7m) R4,2m related to preference shares (H1 2013: R3,4m) Net R1,1m interest received on Telecom Namibia (H1 2013: R0,3m)
  13. 13. 13 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Statement of Comprehensive Income 25 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 PBIT margin 2.4% 3.4% Net interest paid (7,6) -22 (9,8) Share of income from associate - n/a 0,8 M-TEC classified as held-for-sale © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Statement of Comprehensive Income 26 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 PBIT margin 2.4% 3.4% Net interest paid (7,6) -22 (9,8) Share of income from associate - n/a 0,8 Profit before tax 5,1 -49 10,0 Taxation credit 1,9 -46 3,6 Tax credit due to utilisation of historic assessed losses after restructuring of legal entities
  14. 14. 14 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Statement of Comprehensive Income 27 Unaudited (Rm) H1 2014 % Change H1 2013 Revenue 530,4 -4 552,1 PBIT 12,8 -33 19,0 PBIT margin 2.4% 3.4% Net interest paid (7,6) -22 (9,8) Share of income from associate - n/a 0,8 Profit before tax 5,1 -49 10,0 Taxation credit 1,9 -46 3,6 Profit for the period 7,0 -48 13,6 Outside shareholders interest (0,1) -123 0,6 Outside shareholders’ share in profits in New Telco © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Statement of Comprehensive Income 28 Unaudited H1 2014 % Change H1 2013 Profit attributable to ord. shareholders (Rm) 6,9 -51 14,2 Total shares in issue (m)* 146,4 146,4 Weighted average no. shares (m) 141,3 141,1 EPS (cps) 4.9 -51 10.1 HEPS (cps) 5.3 +6 5.0 * Shares from rights issue only issued in January 2014 Difference between earnings & headline earnings (Rm) H1 2014 H1 2013 Lighting Structures - Loss on disposal - 4,5 Loss/(profit) on disposal of fixed assets 0,6 (11,7) Total headline earnings adjustments 0,6 (7,2)
  15. 15. 15 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Average Net Working Capital 29 Days -81.7 -74.6 -89.8 -89.8 -80.3 81.3 75.5 98.2 88.7 77.9 32.1 28.5 33.2 33.2 32.4 -100 -50 0 50 100 150 June 2012 Dec 2012 June 2013 June 2013 (adj for property receivable) Dec 2013 Debtors Stock Creditors 41.6 26.5 29.4 Net working capital 30.0 32.1 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Average Net Working Capital 30 Days -81.7 -74.6 -89.8 -89.8 -80.3 81.3 75.5 98.2 88.7 77.9 32.1 28.5 33.2 33.2 32.4 -100 -50 0 50 100 150 June 2012 Dec 2012 June 2013 June 2013 (adj for property receivable) Dec 2013 Debtors Stock Creditors 41.6 26.5 29.4 Return to target of 30 days Net working capital 11 day decrease reflects strong effort to improve collections; (Bad debts still <1% of revenue) Stock days steady 9 day decrease in line with debtors improvement 30.0 32.1
  16. 16. 16 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Summarised Statement of Cash Flows 31 Investing activities inflow includes R60m proceeds on sale of property Financing activities outflow due to settlement of property related loans Net decrease in overdraft = R17m (-R53.6m opening vs -R36,5m closing) Overdraft well within facility limits Rights issue further improves position in H2 -36.5 -36.1 55.0 0.0 -3.0 -7.6 8.8 -14.8 23.6 -53.6 -100 -50 0 50 100 Dec 2013 (Rm) Working capital changes Cash generated from operations before working capital changes Cash generated from operations Net finance charges Taxation paid Net effects of investing activities Dec 2012 (Rm) Opening balance Closing balance Dividend paid -65.1 -1.0 -16.9 -4.3 -0.5 -9.8 -0.8 -20.3 19.5 -31.8 -100 -50 0 50 100 Net effects of financing activities © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 100 100 100 100 100 70 139 90 90 29 47% 100% 82% 66% 45% 0 20 40 60 80 100 120 0 40 80 120 160 200 240 280 320 Dec 2012 June 2013 Dec 2013 Post rights issue (Jan 2014) Post rights issue & excl project funding Net interest-bearing debt 32 Maximum 50% D:E ratio excl. project funding EBITDA interest cover Improvement to 3.1x from 2.3x in June 2013 is pleasing, but still below sustainable target interest cover of 3.5x in short term R100m of debt = interest-bearing redeemable prefs Interest-bearing debt excludes short-term banking facilities Gearing % Rm %
  17. 17. 17 © 2014 Jasco Electronics Holdings Limited Divisional review3 www.jasco.co.za 33 © 2014 Jasco Electronics Holdings Limited Businesses: Carrier Solutions Carrier RF Carrier Infrastructure Broadcast C A R R I E R Businesses: Contact Centres Voice & data recording Unified communications E N T E R P R I S E Businesses: Converged Solutions Co-location Solutions Value Added Services N E T W O R K S Divisional review: ICT Solutions3a www.jasco.co.za 34
  18. 18. 18 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za ICT Carrier – Results Review 35 Unaudited (Rm) H1 2014 % change H1 2013 Revenue 218,2 - 218,8 Exit of Telecom Structures (R14m in 2013) compensated for by volume growth in other businesses PBIT 21,7 -2 22,2 PBIT margin % 10.0% 10.1% All businesses outside of smallest contributor Broadcast Solutions grew PBIT ‒ Lower margin product mix & delayed order Carrier RF & Carrier Solutions combined with effect from 1 Jul 2013 ‒ More effective Key Account Management ‒ Decreased management cost Small organic investment in Property Technology Management start-up Maintained market share in mature market 41% Contr. to group revenue © 2014 Jasco Electronics Holdings Limited Businesses: Carrier Solutions Carrier RF Carrier Infrastructure Broadcast C A R R I E R Businesses: Contact Centres Voice & data recording Unified communications E N T E R P R I S E Businesses: Converged Solutions Co-location Solutions Value Added Services N E T W O R K S Divisional review: ICT Solutions3a www.jasco.co.za 36
  19. 19. 19 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za ICT Enterprise – Results Review 37 Restructure complete 19% Contr. to group revenue Unaudited (Rm) H1 2014 % change H1 2013 Revenue 102,0 +6 96,7 Maintained market share despite continued slow corporate spend Annuity income base of 50% maintained PBIT 9,2 +25 7,3 PBIT margin % 9.0% 7.6% Margin influenced by: ‒ Productivity improvements coming through ‒ Higher-margin product mix Traditional H2 costs to reduce margin somewhat (performance incentives, wage negotiations) Businesses: Carrier Solutions Carrier RF Carrier Infrastructure Broadcast C A R R I E R Businesses: Contact Centres Voice & data recording Unified communications E N T E R P R I S E Businesses: Converged Solutions Co-location Solutions Value Added Services N E T W O R K S Divisional review: ICT Solutions3a © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 38
  20. 20. 20 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Contr. to group revenueICT Networks – Results Review 39 Strong growth in annuity voice & data volumes 7% Unaudited (Rm) H1 2014 % change H1 2013 Revenue 40,5 -45 73,6 Telecom Namibia ‒ H1 2013 boosted by once-off R55m equipment sale ‒ Led to annuity income of R7,2m p.a. for 5 years Like-for-like revenue increase of 118% (90% annuity) PBIT (3,1) - 1,2 PBIT margin % -7.6% 1.6% PBIT decrease due to once-off high base in H1 2013 Excluding Telecom Namibia, like-for-like improvement of 52% As committed, start-up growth strategy on track 9.8 22.7 45.8 37.3 0 20 40 F2011 F2012 F2013 H1 2014 Growth in Networks annuity revenue © 2014 Jasco Electronics Holdings Limited Divisional review: E&I Solutions3b www.jasco.co.za 40 Manufacture and supply of: Cable harnesses for white goods and automotive markets Plugs & extension cables (Snapper) Plastic injection moulds E N E R GY Low voltage power solutions including: Transformers UPS (Uninterruptable Power Supplies) Voltage stabilisation Energy Monitoring & Management Power Filters I N D U S T R Y Integrated security solutions including: Surveillance systems (CCTV) Access control Fire solutions
  21. 21. 21 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Contr. to group revenueE&I - Energy – Results Review Electrical Manufacturers Unaudited (Rm) H1 2014 % change H1 2013 Revenue 99,8 +40 71,5 Benefits of investment: ‒ Improved utilisation of new capacity ‒ Diversification of product range PBIT 12,1 +41 8,6 PBIT margin % 12.1% 12.0% Traditional H2 costs to reduce margin somewhat (performance incentives, wage negotiations) 41 19% Strong performance – investment paying off © 2014 Jasco Electronics Holdings Limited Divisional review: E&I Solutions3b www.jasco.co.za 42 Manufacture and supply of: Cable harnesses for white goods and automotive markets Plugs & extension cables (Snapper) Plastic injection moulds E N E R GY Low voltage power solutions including: Transformers UPS (Uninterruptable Power Supplies) Voltage stabilisation Energy Monitoring & Management Power Filters I N D U S T R Y Integrated security solutions including: Surveillance systems (CCTV) Access control Fire solutions
  22. 22. 22 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Contr. to group revenue 14% E&I - Industry – Results Review 43 Security disappointed, Power on target Unaudited (Rm) H1 2014 % change H1 2013 Revenue 77,0 -5 81,2 Volumes disappointing ‒ Delay in larger projects - Security ‒ Annuity base growing - Power PBIT (2,0) -136 5,6 PBIT margin % -2.6% 6.9% Security loss: ‒ Margin pressure (lack of large projects) ‒ Corrective action taken in H1 2014 • Retrenchment costs of R1,5m • Business relocated to head office in Midrand, some costs in H2 • Restructure complete, overheads in line with revenue Power Solutions: Profit on track (lumpy profit nature due to current size) Prospects - Divisional4a © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 44
  23. 23. 23 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Divisional Prospects: Growth initiatives 45 ICT Solutions Increase cross-selling with large customers through: • Key Account Management • Leverage new shareholders - Telecommunications Continue to grow annuity income base through: • Property technology management ‒ Rooftop management ‒ In-building solutions • Using joint ventures for growth ‒ International connectivity ‒ IT solutions • Building on African presence ‒ Leverage Telecom Namibia success in Africa ‒ SADC – expand Enterprise footprint © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Divisional Prospects: Growth initiatives 46 E&I Solutions Growing market share in Power through: • Mining customer and shareholders - Industry • Diversifying customer base • Expanding new offerings: ‒ Energy optimisation: Continue investment to create annuity growth ‒ Rooftop management: Off-grid solutions (PV) for industrial applications
  24. 24. 24 Prospects - Conclusion4b © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 47 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Looking forward - focus areas Key focus areas Actions to achieve these Watch list E&I – Security: Ensure improvements post right-sizing Developing annuity business ICT – Networks E&I – Energy Management Exit non-core business units systematically Negotiating sale of M-TEC Exit of non-core activities Resolve pref shares R10m part redemption post Automotive disposal in Feb 2014 Secure alternative funding to settle remaining R90m or extend Improve earnings Complete restructure programme (final costs in H2 F2014) Drive growth off restructured cost base - organically or JVs Finalise consolidation of procurement Last 6 months of 3-year restructuring strategy 48
  25. 25. 25 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Financial position improved Conclusion 49 Business base now positioned for growth H2 F2014 to show further improvement; full benefits of 3-year restructure from F2015 Questions & answers © 2014 Jasco Electronics Holdings Limited www.jasco.co.za 50
  26. 26. 26 © 2014 Jasco Electronics Holdings Limited www.jasco.co.za Disclaimer 51 This presentation which sets out the interim results for Jasco Electronics Holdings Limited for the six months ended 31 December 2013 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. The unaudited summarised consolidated financial statements comply with IAS 34 – Interim Financial Reporting. The accounting policies and methods of computation used in the preparation of this report are consistent with those used in the preparation of the annual financial statements for the year ended 30 June 2013, which comply with the International Financial Reporting Standard (IFRS), the AC500 standards as issued by the Accounting Practices Board and the Listings Requirements of the JSE Limited and the Companies Act (2008) of South Africa. The directors take full responsibility for the preparation of the summarised report and the financial overview information has been correctly extracted from the underlying financial records. 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. © 2014 Jasco Electronics Holdings Limited www.jasco.co.za For further information please contact: 52 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 Pete da Silva Warren Prinsloo www.jasco.co.za

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