Docstoc

Altron cash for annuity payment

Document Sample
Altron cash for annuity payment Powered By Docstoc
					   Altron Group
       2002 Interim results
              presentation
          15 October 2002




Building on solid foundations
                                www.altron.co.za
Agenda
• Introduction                   Dr Bill Venter

• The role of Altron             Robert Venter

• Strategy                       Robert Venter

• Financial highlights           Robert Venter

• Strategic partners/customers   Robert Venter

• Interim results                Diane Radley

• Segmental overview             Robert Venter

• The road ahead                 Robert Venter



                                                  www.altron.co.za
Dr Bill Venter
    Chairman




                 www.altron.co.za
 Robert Venter
Chief Executive




                  www.altron.co.za
Group at a glance
                                          *

     53.5%              54.7%                          100%


             *                      *

 Telecoms,          Information         Power            Financial
 multi-media,       technology          electronics      services
 information
 technology
 (TMT)

 Succeeding in an     IT services         people          Financing IT
 ever-converging      for the             innovation
 world                enterprise          technology

                                                        * = 3 listed vehicles
                                                                         www.altron.co.za
The role of Altron
• Proactively manage our investments in Altech,
  BTG, Fintech and Powertech
• Allocate capital where appropriate
• Provide commercial and operational input
  through executive committees
• Maximise synergies within group through
  centralised services
   – Legal, Tax, Audit, Treasury, Insurance,
     Purchasing, IT, Corporate Affairs, BEE
• Leverage critical mass of group to maximise
  benefits
    Maximising value for our investors

                                              www.altron.co.za
Delivering on strategy                  2002
                                       activity
                 Simplify structure
                                      Powertech
                                      delisting
Reduce complexity and entry points
                                      Sale of AAT,
                                      Voltex,
            Divest non-core assets    Fintech Manco

Focus on high growth opportunities
                                      Acquisition of
                                      TSS, Plato
                 Global expansion

              Succession planning     Excom managing
                                      day-to-day
                                      operations
        Increase shareholder value

                                             www.altron.co.za
                                                                             20
                                                                                  40
                                                                                       60
                                                                                            80
                                                                                                 100
                                                                                                       120
                                                                                                             140
                                                                                                                   160
                                                                2001/10/18
                                                                2001/10/30
                                                                2001/11/09




                   ATN SJ Equity
                                                                2001/11/21
                                                                2001/12/03
                                                                2001/12/13
                                                                2001/12/25
                                                                2002/01/04
                                                                2002/01/16
                                                                2002/01/28




                   FTSE/JSE IT Index
                                                                2002/02/07
                                                                2002/02/19
                                                                2002/03/01
                                                                2002/03/13
                                                                2002/03/25
                                                                2002/04/04
                                                                2002/04/16
                                                                2002/04/26
                                                                2002/05/08
                                                                2002/05/20
                                                                2002/05/30
                                                                2002/06/11
                                                                2002/06/21
                   FTSE/JSE Telecommunications Services index




                                                                2002/07/03
                                                                2002/07/15
                                                                2002/07/25
                                                                2002/08/06
                                                                2002/08/16
                                                                2002/08/28
                                                                                                                         Electronic & electrical - performance




                                                                2002/09/09
                                                                2002/09/19
                                                                2002/10/01
                   FTSE/JSE Electronics Index




                                                                2002/10/11
www.altron.co.za
Altech acquisition of PTSS
• Altech purchases TransSwitch Services
  from Prism Holdings for R47m
• Deal effective 1 December 2002
• Value enhancing annuity business
• Strengthen customer base of Altech Card
  Solutions
• Enable Altech to offer full end-to-end card
  payment solutions


                                           www.altron.co.za
BTG acquisition of Plato
• BTG acquires Plato Computer Services (UK) Ltd
  for GBP 22.5m as initial consideration
• Additional cash consideration of GBP 5.5m based
  on EBIT has been agreed
• Software, services and consulting business
• Plato plus Bytes (UK) will generate ± 40% of
  BTG’s total revenue for Feb ’04
• Blue chip customer base
• In line with global BTG strategy and complements
  current UK business


                                             www.altron.co.za
The building blocks of our strategy

                                Increase
                               shareholder
                                  value


                 Focus on                        Black
                                 Global
               high-growth                     economic
                               expansion
               opportunities                 empowerment


                                                             Market
  Focus on         Value
                               Ownership      Annuity      leadership/
    core           added
                                of IPR        income         critical
  activities      services
                                                              mass




                                                                  www.altron.co.za
Financial highlights

                                    Aug       Aug
                                                     Change
                                   2002      2001
Revenue                           R6.2bn    R5.0bn       24%

Operating income                  R407m     R329m        24%

Operating income to sales          6.6%      6.6%               -

HEPS (cents)                        59.0      51.3       15%

Return on shareholders’ equity    15.4%     14.7%          5%
Net asset value per share
                                   820.4     612.7       34%
(cents)
Cash on hand                     R1.24bn   R1.09bn       14%



                                                      www.altron.co.za
  Group interim results at a glance
                                 *   Op income R171m

                         53.5%
                                     HEPS up 20.1%
                                     Cash   R926m

                         54.7%   *   Op income R79m
                                     HEPS up 65%
               *                     Cash R320m


                                     Op income R36m
                         100%
                                     HEPS up 12.4%
Op income R407m
HEPS up 15%
Cash R1.2      billion               Op income R121m
                         100%        HEPS up 10.2%
* JSE listed
                                     Cash R79m

                                                   www.altron.co.za
   5 year group overview
                                                         1st half                  2nd half
    Revenue                                                                                                        Operating income
    10000                                                                  800
     9000                                                                  700
     8000
                                                                           600
     7000
     6000                                                                  500
     5000                                                                  400
                                                                 5 year                                                                   CAGR
     4000                                                                  300
     3000                                                        CAGR                                                                      15%
                                                                           200
     2000                                                          16%     100
     1000
  Rm    0                                                                 Rm   0
               1998    1999    2000    2001    2002    8/ 2003                     1998    1999    2000     2001     2002   8/ 2003



    Actual HEPS                                                                                                                           ROCE
        140                                                                30

        120                                                                25
        100
                                                                 5 year    20
        80
                                                                 CAGR      15
        60                                                         15%     10
        40
        20                                                                  5

Cents    0                                                                % 0
              1998    1999    2000    2001    2002    8/ 2003                       1998    1999     2000     2001      2002     8/2003




                                                                                                                                      www.altron.co.za
Fintech
R millions                 2002    2001   % change
Net new capital financed    201     165          22
Revenue                    107.4   95.8          12
Operating income            35.6   30.4          17
HEPS (cents)                18.2   16.1          12

• Disposal of management business
• Refocus in terms of core business
• Exploring alternative capital raising options


                                              www.altron.co.za
Powertech
R millions             2002     2001   % change
Revenue                2 212   1 920          15
Operating income        121       92          32
HEPS (cents)            23.8    21.6          10



• Significant performance from power
  electronics
• Impact of telecommunications industry
  downturn
• Efforts made to find new markets
                                           www.altron.co.za
  Powertech
  Segmental results (6 monthly)                             Telecommunications
                                                            Power electronics
 Revenue
           Aug 01                  Feb 02                      Aug 02
                             27%                      24%
  32%                    R1 119m                    R532m
R607m




                    68%                     73%                          76%
                    R1 236m                 R2 617m                      R1 680m
Operating income
         62%                    52%                           7%
        R63m                  R118m                          R8m




                       38%                    48%                            93%
                       R29m                  R98m                            R113m

                                                                         www.altron.co.za
  Powertech
  Segmental results by products (6 monthly)
  Revenue
                                                   9%
            9%                                  R216m
         R161m
                                    15%
                                  R334m
  15%               64%
R287m               R1242m




 12%                              14%                             61%
 R230m                            R307m                         R1355m

                       Cables
                       Transformers
                       Battery Group
                       Electrical accessories
           Aug 01                                   Aug 02


                                                             www.altron.co.za
  Hard currency revenues
    2500




    2000




    1500


                                                          31%
    1000
                                                          of revenue



     500




         0
R ‘000       1998   1999   2000   2001   2002   8/ 2003




                                                            www.altron.co.za
Strategic partners




                     www.altron.co.za
Key customers




                www.altron.co.za
 Interim results
       Diane C Radley
Chief Financial Officer




                          www.altron.co.za
Group income statement
                                                 Aug      Aug
 R million                                       2002     2001     % change
 Revenue                                          6 200    5 008          24
 Operating income                                  407      329           24
 Income before goodwill amortisation and
 exceptional items                                 455      383           19
 Goodwill amortised                                (32)     (51)
 Exceptional items                                 302       (7)
 Income before taxation                            725      325         123
 Taxation                                         (146)    (103)          42
 Income after taxation                             579      222         161
 Attributable earnings to outside shareholders    (270)    (118)
 Attributable earnings                             309      104         198


 Basic EPS – cents                                114.9     36.5        214
 Headline EPS – cents                              59.0     51.3          15


                                                                        www.altron.co.za
 Results by sub-holding company
                                                             Aug      Aug
         R million                                           2002     2001     % change
 Contribution to revenue
         Altech                                               2 113    1 854          14
         Powertech                                            2 212    1 920          15
         BTG                                                  1 768    1 138          55
         Corporate & Financial Services                        107       96           11
                                                              6 200    5 008          24
 Contribution to headline earnings
         Altech                                                 77       64           20
         Powertech1                                             49       34           44
         BTG                                                    20       12           67
         Corporate & Financial Services2                        13       35         (63)
                                                               159      145           10
1.   Prior year comparative reflects Altron’s 59.2% share.
2.   Prior year comparative reflects Altron’s 64.3% share.


                                                                                    www.altron.co.za
Group balance sheet
                                       Aug     Aug    Feb
   R million                           2002    2001   2002
   Assets
   Non-current assets                  2 269 2 226 2 302
   Current assets                      4 997 3 937 4 678
     Inventories                       1 168 1 040 1 106
     Accounts receivable               2 590 1 806 2 128
     Net cash and cash equivalents     1 239 1 091 1 444
   Total assets                        7 266 6 163 6 980
   Equity and liabilities
   Ordinary shareholders’ interest     2 213 1 632 1 945
   Outside shareholders’ interest      1 198 1 626 1 635
   Non-current liabilities             1 031    819    892
   Deferred taxation                     54      53     50
   Current liabilities                 2 770 2 033 2 458
   Total equity and liabilities        7 266 6 163 6 980
   Net asset value per share - cents   820.4 612.7 725.1
                                                         www.altron.co.za
Group cash flow
                                                   Aug        Aug         Feb
 R million                                         2002       2001        2002
 Operating activities                                64         317           542
 Cash generated by operations                       466         468           821
 Net investment income                               45          39             82
 Changes in working capital                        (179)        147           238
 Taxation paid                                      (71)       (92)         (247)
 Cash available from operating activities           261         562           894
 Dividends paid                                    (197)      (245)         (352)
 Investing activities                              (283)      (376)         (229)
 Financing activities                                14          68          (51)
 Net funds (utilised)/generated                    (205)             9        262
 Cash and cash equivalents – beginning of period   1 444      1 082        1 082
 Translation of foreign cash                              -          -        100
 Cash and cash equivalents – end of period         1 239      1 091        1 444



                                                                         www.altron.co.za
Segmental
   review




            www.altron.co.za
Telecoms
Portfolio of assets – product and services




Cellular service   Installation of vehicle   Fibre optic and metallic   Standby power and   Installation and
provider           tracking devices          cables and                 rectifier systems   commissioning of two-
                                             accessories                                    way radio equipment
Sustainable        Vehicle monitoring                                   Solar systems       and systems
customer base of   and recovery
500k subscribers
                   Subscriber base of
                   200k




                                                                                                      www.altron.co.za
  Electronics & multi-media
  Portfolio of assets – products and services

                                    DESTA POWER
                                       MATLA




                                                                                   Whiteleys

Design of set-   Distributors of   Power and        Medium and     Automotive   Electrical
top boxes and    electronic        distribution     low voltage    batteries    accessories
related          components        transformers,    power cables
interactive      and products      including high                               Process
software                           voltage                                      Control
solutions                          transformers
                                                                                Metering




                                                                                    www.altron.co.za
  Information technology
   Portfolio of assets – products and services



                                                                          Bytes
                                                                       Communication
                                                                         Systems



                    BTG UK                        Bytes Software                         Bytes Technology Networks



Implementer of     Microsoft       Smart card     Employee           Document           Network                      Medical Aid
OMS solutions      licensing,      technologies   benefit            management         infrastructure,              claims
in the SA          storage                        solutions          and outsourcing,   managed                      submission
process industry   solutions, IT                  development,       PABX, voice &      services, ATM,               and electronic
                   consulting                     installation and   data solutions     point-of-sale, data          transaction
                                                  maintenance                           warehousing,                 switching
Design,
                                                                                        Microsoft
development
                                                                                        licensing
and integration
                                                                                                                     Practice
of vendor
                                                                                                                     management
independent
                                                                                                                     software
solutions




                                                                                                                        www.altron.co.za
  Contribution per segment
   Revenue          Financial &
                    Corporate
                                                        Financial &
                        1%
                                                        Corporate
 Elect. &                                Elect. &
                                                            0%                  IT
Multimedia                              Multimedia
                                                                               25%
   36%                             IT      38%
                                  31%




                    Telecoms                                   Telecoms
                      32%                                        37%

             2002                                    2001

                                                                      www.altron.co.za
   Contribution per segment
    Operating income
                                      Financial &
                                      Corporate               IT
Financial &                              13%                 15%
Corporate               IT
   10%                 23%




                       Telecoms
                         24%
  Elect. &                         Elect. &
 Multimedia                       Multimedia
    43%                              30%
                                                           Telecoms
                                                             42%


              2002                                  2001
                                                           www.altron.co.za
Industry prospects
• Telecoms
  – Telecoms industry remains depressed and key players
    burdened by excessive debt
  – Telkom IPO - end 1st quarter 2003. Will absorb
    substantial investor telecom funds due to high
    prospective weighting in FTSE / JSE Top 40 and All
    Share indices
  – No recovery expected in short term




                                                    www.altron.co.za
Industry prospects (cont)
• Multimedia & electronics
  – World-wide industry is challenged but still niche market
    growth opportunities
  – China and USA untapped
  – Local interest rates are a concern
• Information technology
  – Restructuring expected to become an overriding sector
    theme as companies respond to changed market
    conditions
  – BEE continues to be an essential factor

                                                       www.altron.co.za
Strategic and equity BEE partners




• Labat    • Maseco             • Matomo        • Arivia.kom
• Matomo   • TSS                • Power Matla
           (Tactical Software
           Systems)             • Wiphold
                                • Alcon Marepha




                                                           www.altron.co.za
The road ahead
• Focus on core activities
• Integrate TSS and Plato
• Maintain current listings
• Build the critical mass of BTG and play role in IT
  industry consolidation
• Next phase of growth at Altech is acquisition
  driven
• Fintech – refocus regarding core/non-core
  activities and review funding alternatives
• Ongoing corporate governance review (King II)
  and focus on BEE initiatives


                                                 www.altron.co.za
       Thank you
Questions and answers




                        www.altron.co.za

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:6
posted:6/28/2012
language:English
pages:37