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									November 19, 2008


Presentation to Investors
Annual Results - 31 August 2008




                    Tony van Marken, Executive Chairman
                    Douglas Reed, Chief Executive Officer
                    Mike von Holdt, Chief Financial Officer




                                                              1
Agenda
>   Introduction
>   Group Overview
>   Financial Performance
>   Segmental Performance
>   Shareholder Update
>   Competitive Landscape
>   Vision and Strategy
>   Summary
>   Q&A




                            2
Agenda
>   Introduction
>   Group Overview
>   Financial Performance
>   Segmental Performance
>   Shareholder Update
>   Competitive Landscape
>   Vision and Strategy
>   Summary
>   Q&A




                            3
Group Overview
> Key information:
   – Leading independent, alternative supplier of voice and data
     services to the South African and Namibian market
   – One of the top 5 telecommunications service providers in SA
     with Points of presence in the UK and throughout SA with MPLS
     network
   – Provide critical telecommunications products and services to
     over 18,000 corporate customers and 166,000 consumers
   – 698 highly skilled employees
   – Listed on Alt-X Exchange of the JSE
   – BEE shareholding of 47,73% - the largest black owned
     telecommunications company in SA
   – Largest South African VANS provider in terms Interconnect
     traffic termination



                                                                     4
Group at a Glance




                    5
Financial Highlights for 2008
>   Revenue up 87% to R1 847 billion
>   Operating profit up 64% to R137 million
>   Profit before taxation and exceptional items up 47% to R113 million
>   EBITDA up 76% to R181 million from R103 million
>   Profit before taxation for the year after exceptional items down 32%
    to R52 million
>   Cash generated from operations increased by 47% from R101
    million to R149 million
>   Exceptional “once off” loss of R60.8 million
>   Earnings per share down 51% to 3.78 cps from 7.67 cps
>   Headline earnings per share down 47% to 4.04 cps from 7.67 cps




                                                                           6
Agenda
>   Introduction
>   Group Overview
>   Financial Performance
>   Segmental Performance
>   Shareholder Update
>   Competitive Landscape
>   Vision and Strategy
>   Summary
>   Q&A




                            7
Financial Overview
Summary for the year ended 31 August 2008
                                             2008       2007        % Change


HEPS                                        4.04 cps   7.67 cps        -47%

EPS                                         3.78 cps   7.67 cps        -51%

                                              R'm        R'm

Revenue                                       1,847         990        87%

EBITDA                                          181         103        76%

Operating profit                                137            83      64%

Profit for the year                               38           55      -31%

Cash generated from operations                  149         101        47%

Cash and bank balances                            88        193        -54%

Gross Profit %                                24.6%       24.6%         0%

Operating profit %                              7.4%       8.4%        -12%




                                                                               8
Financial Overview
Revenue Growth as at 31 August 2008




                                      9
Financial Overview
Segmental Revenue per operating unit as at 31 August 2008




                                                            10
Financial Overview
Monthly Contracted Annuity Revenue as at 31 August 2008




                                                          11
Financial Overview
EBITDA as at 31 August 2008




                              12
Financial Overview
HEPS as at 31 August 2008




                            13
Dealstream : Accounting Impact
>   Cash Position
     – R30.4 m misappropriated.
     – Derecognition of a financial asset i.t.o. IAS 32.
     – EPS and HEPS adjustment as at 31 August 2008.
     – Capital loss that can be offset against future capital gains for tax purposes.
>   Staff Loans to acquire Shares
     – R29.3 as at 31 August 2008 ( capital and interest).
     – Derecognition of a financial asset i.t.o. IAS 32, resulting in an impairment thereof
        i.t.o. IAS 39.
     – EPS and HEPS adjustment as at 31 August 2008.
     – Loss is deductible for income tax purposes.
>   Shares for Stock Options
     – 27,3 million shares reserved for stock options missing.
     – Of this 2.348m options have been exercised to date by employees.
     – IAS 32 – no profit or loss to be recognised in the Income Statement therefore NO
        impact on EPS or HEPS.
     – Resulting in a reduction to Share Premium of R16.5m.



                                                                                              14
Annual Financial Statements
for the year ended 31 August 2008

                    Consolidated Income Statement for the year ended 31 August 2008

                                                                        2008             2007
                                                                        R'000            R'000

  Revenue                                                                 1,846,749          990,110
  Cost of sales                                                          (1,392,909)        (745,855)
  Gross profit                                                              453,840          244,255
  Other income                                                                1,523            2,427
  Depreciation and amortisation                                             (44,474)         (19,726)
  Employment costs                                                         (144,460)         (76,085)
  Occupancy costs                                                           (14,087)          (4,100)
  Other operating costs                                                    (115,581)         (63,612)
  Operating profit                                                          136,761           83,159
     Finance costs                                                          (33,955)         (14,296)
     Finance income                                                          10,185            7,816
  Net finance costs                                                         (23,770)          (6,480)
  Profit before taxation and exceptional item                               112,991           76,679
  Exceptional item                                                          (60,841)             -
  Profit before taxation                                                     52,150           76,679
  Taxation                                                                  (14,135)         (21,763)
  Profit for the year                                                        38,015           54,916
  Attributable to:
      Equity holders of the parent                                              38,015           54,916
                                                                                38,015           54,916
  Earnings per share (cents)
  Basic EPS                                                                       3.78             7.67
  Diluted EPS                                                                     3.70             7.49




                                                                                                          15
     Annual Financial Statements for the year ended 31 August 2008
                               Consolidated Balance Sheet as at 31 August 2008


                                                                           2008         2007
                                                                           R'000        R'000

Assets
Non-current assets                                                          1,459,272      829,542
 Plant and equipment                                                          104,524       58,989
 Goodwill                                                                     597,296      214,742
 Other intangibles                                                            733,766      542,009
 Finance lease receivables                                                      2,902          -
 Deferred taxation                                                             20,784       13,802

Current assets                                                                449,143      434,714
 Inventories                                                                   52,859       14,174
 Trade and other receivables                                                  306,566      227,825
 Current tax receivable                                                         1,441          -
 Cash and bank balances                                                        88,277      192,715
Total assets                                                                1,908,415    1,264,256
Equity and liabilities
Capital and reserves                                                        1,085,270      642,112
 Share capital                                                                  1,101          884
 Share premium                                                              1,002,384      599,688
 Reserves                                                                       5,428        3,198
 Retained earnings                                                             76,357       38,342
Total equity                                                                1,085,270      642,112
Non-current liabilities                                                       296,934      279,980
 Non-current borrowings:
   - Interest-bearing                                                         123,550      142,311
   - Interest-free                                                                502          397
Deferred taxation                                                             172,882      137,272
Current liabilities                                                           526,211      342,164
 Trade and other payables                                                     363,090      264,464
 Provisions                                                                     2,342        5,791
 Taxation                                                                      15,107       27,582
 Short-term portion of non-current borrowings                                 145,672       44,327
                                                                                                     16
Total equity and liabilities                                                1,908,415    1,264,256
Annual Financial Statements
for the year ended 31 August 2008

                  Consolidated Cash Flow Statement for the year ended 31 August 2008

                                                                       2008             2007
                                                                       R'000            R'000

 Cash flow from operating activities
 Operating cash before working capital movements                           188,650          107,567
 Working capital movements                                                 (39,277)          (6,271)
 Cash generated from operations                                            149,373          101,296
 Interest paid                                                             (23,770)          (6,480)
 Taxation paid                                                             (49,313)         (13,104)
 Net cash inflow from operating activities before exceptional item          76,290           81,712
 Loss on collapse of Dealstream                                            (60,841)             -
 Net cash inflow from operating activities                                  15,449           81,712

 Cash flow from investing activities
 Additions to plant and equipment to expand operations                      (71,018)         (37,227)
 Additions to other intangibles to expand operations                        (18,822)             -
 Proceeds on disposal of property, plant and equipment                        2,249              145
 Acquisition of subsidiaries and business units                            (472,141)        (393,201)
 Additional vendor payments                                                 (12,004)             -
 Net cash outflow from investing activities                                (571,736)        (430,283)

 Cash flow from financing activities
 Procceds from shares issued (net of costs)                                408,307          362,805
 Proceeds from long and short-term borrowings                               62,652          160,538
 Net cash outflow from share buy back                                       (2,642)             -
 Loss on treasury shares misappropriated                                   (16,469)             -
 Net cash inflow from financing activities                                 451,848          523,343

 Net (decrease) increase in cash and cash equivalents                      (104,439)        174,772
 Cash and cash equivalents at the beginning of the year                     192,715          17,943
 Cash and cash equivalents at the end of the year                              88,277       192,715




                                                                                                        17
Agenda
>   Introduction
>   Group Overview
>   Financial Performance
>   Segmental Performance
>   Shareholder Update
>   Competitive Landscape
>   Vision and Strategy
>   Summary
>   Q&A




                            18
Segmental Performance
> DataPro - Corporate ISP
   – Corporate ISP (traditional data business)
   – 4th largest player in market
   – Over 8,100 business customers
   – Twelve month revenues of R262 million
   – Achieved an organic growth rate of 30% per annum
   – Growth rate 45% including impact of acquisitions
   – Mature well-run business
   – Now providing converged IP service offering including voice and
     data
   – 28% of sales in the past 12 months was new business
   – Corporate data remains a fundamental building block and growth
     driver of the group
   – DataPro now leveraging opportunity to provide voice services to
     its corporate customer base



                                                                       19
Segmental Performance
> DataPro - Revenue and Annuity Growth




•   Annuity revenue grew by 45% (including Storm and ODS)
•   Annuity revenue organic growth rate of 30% (excl Storm and ODS)


                                                                      20
Segmental Performance
    > DataPro - Gross Profit Percentages




•    The addition of voice to the data business has been a positive factor in terms of
     growth and converged services - diluted the GP by approx 10%
•    Average GP%’s for the year: Data – 38%; Voice – 21%
•    Vox DataPro's target GP for 2009 is 30%

                                                                                         21
Segmental Performance
> DataPro - Churn as a percentage of Annuity Revenue




•   Churn includes all annuity revenue that is no longer billable (lost business and
    downgrades)
•   Churn as a % of annuity revenue on average for 2008 was 1.48% compared with
    1.51% for the previous year

                                                                                       22
Segmental Performance
    > DataPro - Average Revenue Per User (ARPU)




•   ARPU as at August 31, 2008 – R3,772
•   R2,603 excluding voice revenues – 35% increase from Aug 31, 2007




                                                                       23
Segmental Performance
> DataPro – Annuity Revenue Split




                                    24
Segmental Performance
> Orion Telecom - Corporate Voice
   – Orion Telecom offers a range of managed voice solutions for the
     corporate market
   – Twelve month revenues of R1,33 Billion
   – Achieved an organic growth rate of 14% per annum
   – Growth rate of 37% including impact of acquisitions
   – Over 7,930 corporate and government customers
   – Interconnects with Telkom, Vodacom, MTN, Neotel and major
     VANS operational
   – Now offering data solution to Orion customer base
   – Wholesale agreement with Neotel
       > add R4m monthly revenue
       > Made up of National, Local and International traffic
   – Orion serves 60% of the top 200 listed companies on the JSE
     and major government departments



                                                                       25
 Segmental Performance
       > Orion - Customer Growth

                                                        Customers

9000

8000

7000

6000

5000

4000

3000

2000

1000

  0
        Sep-07   Oct-07   Nov-07   Dec-07   Jan-08   Feb-08          Mar-08   Apr-08   May-08   Jun-08   Jul-08   Aug-08

                                                              Customers




                                                                                                                           26
 Segmental Performance
     > Orion - Monthly Renewals

                                                   Monthly Renewals (Actual vs Budget)

R 20,000,000

R 18,000,000

R 16,000,000

R 14,000,000

R 12,000,000

R 10,000,000

 R 8,000,000

 R 6,000,000

 R 4,000,000

 R 2,000,000

       R-
               Sep-07   Oct-07   Nov-07   Dec-07     Jan-08       Feb-08       Mar-08       Apr-08   May-08   Jun-08   Jul-08   Aug-08

                                                         Renewals Acc Budget Renewals Acc Actual




                                                                                                                                         27
Segmental Performance
> Orion - Customer Profile




                             28
Segmental Performance
> Orion - Customer Profile




                             29
Segmental Performance
 > @lantic - Consumer ISP
   – Provides ADSL, dial-up, wireless internet (3G/HSDPA and
      iBurst) and hosting services to consumer and small business
      market
   – Largest Service Partner of iBurst in SA (iBurst reseller of the
      year award for 2007/2008)
   – Leading reseller of Vodacom 3G
   – Annual revenues of R170 million
   – Churn on entire customer base is well below industry standard
        > Revenue Churn : 1.4% average per month
        > Customer Churn : 0.7% average per month
   – Contracted subscriber base of over 166,000 subscribers
   – Over 111 franchises country wide and more than 1100 resellers
   – Entrepreneurial, owner driven franchise operation
   – Integration of Absa Internet Access (AIA) and Storm consumer
      customers completed


                                                                       30
Segmental Performance
> @lantic – Monthly Revenue




                              31
Segmental Performance
> @lantic – Average Revenue Per Customer (ARPU)




                                102 000 ABSA
                                  Customers
                                 added to the
                                 @lantic base




                                                  32
Segmental Performance
 > Vox Telepreneur Goals
   – Ensure that Vox had a dominant share of
     the consumer and SME voice market
   – Growth driver for the Group
   – Provide a mechanism for the corporate,
     focused businesses to add consumer
     type products (reps, management, etc.)
   – Improve innovation and speed to market
   – Forge a new channel to market to
     provide the Group with a competitive
     edge
   – Design a flexible compensation plan that
     would drive marketing behaviour and
     harness small entrepreneurs as Vox
     dealers

                                                33
Segmental Performance
> Vox Telepreneur
   – ADSL phone
       > Provide rebates for inbound calls
       > Retain Telkom number with Vox number
         range as preference
       > 2 226 dealers
       > 4 047 customers
       > ARPU of R262 per consumer
   – Improved innovation and agility which has a
     positive spin off for the group
   – Opened up corporate sales opportunities
   – Speed to market has improved
   – Market concept been well received by the
     lower LSM levels
   – Major focus for 2009



                                                   34
Segmental Performance




                        35
Segmental Performance




                        36
Segmental Performance




                        37
Segmental Performance




                        38
Segmental Performance
> Amvia - Corporate ISP
   – Acquired effective 1 December, 2007
   – Over 15 years experience in local fax market
   – Leading international Captaris distributor
   – 600+ RightFax certified engineers in SA
   – Provide corporate faxing solutions to 90% of Top 200 JSE listed
     companies
   – Exceeded profit forecasts for 2008
   – Expanding annuity revenues to over 50% of gross revenues
   – Focus on penetrating top 350 companies
   – Leverage all group companies to drive further penetration of corporate
     faxing solutions
   – Focus on disintermediation of corporate fax traffic
   – Developing international market opportunities in China, India and
     Europe in conjunction with Captaris partners



                                                                              39
Segmental Performance
Amvia Customers




                        40

                        40
Group CAPEX Deployment
> Key Investments in 2008
   – CAPEX Investment of R71m during 2008 - R52m in network
     equipment and IT infrastructure
   – Major investment in software and systems of over R10,2m
   – Increased capacity of data centre facilities in JHB, Cape Town
     and Durban to provide world-class hosting capabilities
   – Upgraded Customer Care and Billing systems for Data and
     Voice
   – Set up new infrastructure for @lantic Exchange and Vox
     Telepreneur
   – Further investment in capacity for interconnects with incumbent
     operators to support growth in voice traffic
   – Investment in Vox ADSL phones for deployment by Vox
     Telepreneur
   – Expansion of office infrastructure across all regions to support
     growth of business



                                                                        41
Agenda
>   Introduction
>   Group Overview
>   Financial Performance
>   Segmental Performance
>   Shareholder Update
>   Competitive Landscape
>   Vision and Strategy
>   Summary
>   Q&A




                            42
Shareholder Summary
                                                       QuickTime™ and a
> BEE Shareholder Status                                 decompressor
                                                are needed to see this picture.

   – BEE Neutral:
      > Public Investment Corporation - 8,12%
   – BEE Shareholders:
      > Lereko Metier Capital Growth Fund -
        24,27%
      > Mvelaphanda Group Limited - 12,4%
      > Regiments Capital - 4,24%
      > Thembeka Capital - 1,61%
      > Historically disadvantaged - 0,82%
   – Key Shareholders :
      > RMB - 23,44%
      > PSG Group - 2,77%                                      QuickTime™ and a
                                                                 decompressor
                                                        are needed to see this picture.




                                                                                          43
Shareholder Update
> BEE Shareholder Status
   – BEE Neutral:
       > Public Investment Corporation - 8,35%
   – BEE Shareholders: (excluding BEE neutral
     shares)
       > Lereko Metier Capital Growth Fund -
         24,27%
       > Mvelaphanda Group Limited - 12,4%
       > Regiments Capital - 4,24%
       > Thembeka Capital - 1,61%
       > Historically disadvantaged - 0,82%
   – Final BEE Shareholding:
       > 43,35% BEE shareholding
       > 47,17% (excluding BEE neutral shares)
       > The largest black owned
         telecommunications company in SA


                                                 44
Agenda
>   Introduction
>   Group Overview
>   Financial Performance
>   Segmental Performance
>   Shareholder Update
>   Competitive Landscape
>   Vision and Strategy
>   Summary
>   Q&A




                            45
Competitive Landscape
> The telecommunications land grab (as at 31 August, 2007)




                                                             46
Competitive Landscape
> The telecommunications land grab (as at 31 August, 2008)




                                                             47
Alternative Telcos
> Key requirements to compete:
   – Delivery of converged service offering (voice and data) supported by
     sophisticated account management
   – Ownership and management of own MPLS network
   – Interconnection arrangements with incumbent operators (Telkom, MTN,
     Vodacom, Cell C, Neotel) and other major VANS
   – Call centre infrastructure for customer support
   – SP Agreement and/or Super Dealer arrangements with cellular
     operators (Vodacom and MTN)
   – Wholesale arrangements for local/international bandwidth with major
     operators
   – Experienced management expertise in voice and data markets
   – Developed and trusted brand with industry track record and loyal
     customers
   – BEE credentials


                                                                            48
Agenda
>   Introduction
>   Group Overview
>   Financial Performance
>   Segmental Performance
>   Shareholder Update
>   Competitive Landscape
>   Vision and Strategy
>   Summary
>   Q&A




                            49
Vision

> “To be the leading
  alternative, independent
  provider of voice and
  data services to the
  Southern African
  market”




                             50
Business Strategy
> Key focus areas:
   – Grow core business organically via
     channel and direct sales
   – Consolidate acquisitions and
     leverage synergies across the group
   – Drive growth in converged voice and
     data offering
   – Continue to improve financial
     performance across all aspects of
     the business
   – Improve operational capability
     across all aspects of the business
   – Deliver innovative products that are
     competitively priced and provide
     tangible benefits to customers




                                            51
Business Strategy




                    52
Agenda
>   Introduction
>   Group Overview
>   Financial Performance
>   Segmental Performance
>   Shareholder Update
>   Competitive Landscape
>   Vision and Strategy
>   Summary
>   Q&A




                            53
Summary
> Vox Telecom has built a solid platform to
  build a next generation, alternative telecom
  operator
> Combination of organic growth and
  accretive strategic acquisitions provides
  platform for growth
> Well positioned to capitalise on further
  liberalisation of telecom market
> Experienced and committed management
  team and employee base
> Well supported by key shareholders who
  underwrite growth strategy
> Vox provides excellent investment
  opportunity supported by embedded value
  of annuity book and strength of customer
  base



                                                 54
Agenda
>   Introduction
>   Group Overview
>   Financial Performance
>   Segmental Performance
>   Shareholder Update
>   Competitive Landscape
>   Vision and Strategy
>   Summary
>   Q&A




                            55
Q&A




      56
Investor Information
>   Investor packages are available with
    latest Annual Report
>   Additional information available at
    www.voxtelecom.co.za

>   Contact Details :

     – Tony van Marken
       Executive Chairman
     – Mobile: +27 (0)72 229 0547
     – Email: tonyvm@voxtelecom.co.za

     – Block B, Rutherford Estate
     – 1 Scott Street, Waverley
     – PO Box 369, Rivonia, 2128, South
       Africa
     – Tel: +27 (0)11 809 1737
     – Fax: +27 (0)86 502 1876
     – www.voxtelecom.co.za



                                           57
Block D, Rutherford Estate       Tel: +27 (0)87 805 0000
1 Scott Street, Waverley, 2090   Fax: +27 (0)86 502 1876
PO Box 369, Rivonia, 2128        info@voxtelecom.co.za
South Africa                     www.voxtelecom.co.za




                                                           58

								
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