Interim Results For the period ended 30 Sep 2017

Teddy Daka/ Chief Executive OfficerBurt Lamprecht / Chief Financial Officer

AGENDA

1. PERFORMANCE HIGHLIGHTS

2. GROUP OVERVIEW/ Teddy Daka

3. STRATEGY UPDATE/ Teddy Daka

4. FINANCIAL PERFORMANCE/ Burt Lamprecht

5. STRATEGY AND OUTLOOK/ Teddy Daka

6. QUESTIONS

2

2017 TITLE OF PRESENTATION TO GO HERE

GROUP OVERVIEW AND KEY FEATURES

KEY FEATURES

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• Compounded annual growth of 57% since 2015

• Revenue decreased from R408.6 million to R314.2 million (down 23.1%)

• Gross profit margin increased from 24.9% to 31.7% (up 6.8%)

• EBITDA decreased from R57.2 million to R47.3 million (down 17.3%)

• Profit after tax decreased from R34.9 million to R28 million (down 19.7%)

• Headline Earnings per share decreased from 7.57 cents to 6.11 cents (down 19.3%)

• Basic Earnings per share decreased from 7.59 cents to 6.08 cents (down 19.9%)

• Tangible Net Asset Value increased from 25.6 cents to 38.8 cents (up 51.3%)

GROUP PROFILE

• Ansys is a digital provider of technology-based solutions to improve customer safety

and productivity, connectivity, original design manufacturing, cyber security and

digital defence needs.

• We produce, develop, distribute and integrate digital technology solutions to

implement our customers’ technical requirements.

• We are the most empowered JSE-listed group in South Africa for 2017 as verified by

Empowerdex.

• Ansys has been listed on the AltX since 2007 and intends to transfer to the main

board of the JSE in due course

• New strategy driven by innovation, technology enhancements, customer expectations

and market shifts including:

• digitilisation,

• technology convergence,

• product agnostics and disruptive technologies

Our technology and IP gives us a competitive advantage

5

Quick facts

• BBBEE Level 1

• 272 employees

• Manufacturing

plant: ISO

9001:2008

certified

ANSYS GROUP CORPORATE STRUCTURE

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Original Design

Manufacturing(ODM)

Digital Network Solutions

(DNS)

Safety & Productivity

Solutions (SPS)

Cyber Security Solutions

(CSS)

Digital Defence

Solutions(DDS)

• Currently Parsec

• Growth capacity to serve internal and external customers

• Expansion of vertical served beyond defence and mining

• Currently Tedaka Network Solutions • Focus extended to all digital networks in all market segments• Solution range expanded to include active connectivity• Services to be augmented to encompass active equipment and networks

• Currently Ansys Rail • Focus on safety and productivity solutions extended to all verticals• Current Rail products refocused towards digital rail networks• Digital mining solutions first to be incorporated

• Currently Parsec • Focus extended to all verticals• Public sector and Finance initial focus areas• Solution scope expanded to cover broader range in cyber security• Entry into consumer markets

• Currently Parsec• A new division to be created to focus on sub-system defence solutions

CURRENT VS FUTURE

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TRANSFORMING ANSYS

Ansys is in the process of rebranding. The rebrand will come into effect for the FY18 with the objective of which is to allowalignment in its go to market strategy with respect to developing and building one brand in the market and ultimately enablecross-selling across the various business areas

With this transformation, Ansys will:

Transform ODM to offer services to

internal and external

customers

Establish the cyber security as a distinct business

Re-think its defence

business

Transforming TNS into a Digital

NetworksSolutions Provider

Transform Ansys Rail to become Safety and Productivity Solutions Provider

Embed a new organisational structure and design

Building leadership capacity

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GROUP EXECUTIVE COMMITTEE

Teddy DakaGroup Chief Executive Officer

Burt LamprechtGroup Chief Financial Officer

Mervin Kamoetie

Managing Director: Digital

Network Solutions

Petrus Pelser

Managing Director: Parsec

Rynier van der Watt

Chief Acquisitions and Integration

Officer & Executive Director

Koketso Seripe

Chief Executive: Safety and

Productivity Solutions

Lebo Madiba

Group Chief Marketing OfficerNtokozo Magwaza

Group Executive Human Capital

Group Business Development

Vacant

Chief Digital OfficerVacant

OPERATING CONTEXT

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MARKET OVERVIEW• General trade conditions constrained / muted market conditions in the country specifically in sectors such as rail

• Continued political and economic uncertainty

Telecoms

• Upsurge in previous reporting period with high growth driven by FTTH roll out

• A subsequent slowdown of the FTTH roll out of some of the network

operators impacted negatively on revenue

Defence and Cyber security

• International markets account for 67% of Ansys defence and cyber security

revenue

• Local expenditure in Defence and Aerospace sector remains subdued

• Margins up to 14.5% from 11.8%

Mining and Industrial

• Stringent adherence to high safety standards and the move towards digital

mines led to high revenue growth in this segment

Rail

• Suppressed economic conditions in SA with a direct impact on key market

sectors such as rail

• Opportunities in digitisation of rail

REVENUE SPLIT

10

International vs Local Public vs Private Sector

International Local Public Private Sector

REVENUE GROWTH PER YEAR

11

-100 000

-

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

R’000 R’000 R’000 R’000 R’000

2014 - full year 2015 - full year 2016 - full year 2017 - full year 2018 - interims

Revenue and NPAT growth

Revenue NPAT

ORGANIC VS ACQUISITION

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-10 000

-

10 000

20 000

30 000

40 000

50 000

60 000

70 000

R’000 R’000 R’000 R’000

2014 2015 2016 2017

Acquisitive and organic profit history

Organic profit/(loss) Acquisitive profit/(loss) Total profit/(loss) for the year

TOP 10 CLIENTS

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Full year ended March 2017 Period ended September 2017

2017 TITLE OF PRESENTATION TO GO HERE

FINANCIAL PERFORMANCE

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the 6 months ended 30 September 20176 months 6 months Year

ended ended ended

30 September 2017 30 September 2016 31 March 2017

Note (Unaudited) (Reviewed) (Audited)

R’000 R’000 R’000

Revenue 314 419 408 633 806 019

Cost of sales (214 594) (306 766) (593 887)

Gross profit 99 825 101 867 212 132

Other income 251 1 197 969

Operating costs (62 177) (60 993) (130 304)

Other gains 2 214 8 993 17 409

Operating profit 40 113 51 064 100 206

Finance income 1 104 1 396 3 106

Finance costs (3 006) (3 980) (9 132)

Profit before taxation 38 211 48 480 94 180

Taxation (10 230) (13 618) (26 429)

Net profit for the period 27 981 34 862 67 751

Total comprehensive income

for the period 27 981 34 862 67 751

Attributable to:

Equity holders of the company 28 029 34 987 67 876

Non-controlling interest (48) (125) (125)

27 981 34 862 67 751

Basic and diluted earnings per

share (cents)4 6.08 7.59 14.72

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 201730 September

2017

30 September

2016

30 September

2016 31 March 2017

Notes

(Unaudited) (Re-stated)

(Previously

reported) (Audited)

R’000 R’000 R’000 R’000

Assets

Non-current assets 176 787 175 601 183 405 179 010

Property, plant and equipment 51 631 52 107 52 107 53 158

Intangible assets118 346 118 060 118 060 118 692

Deferred tax asset 5 800 5 434 13 238 6 150

Other financial assets 1 010 - - 1 010

Current assets 276 541 292 657 292 657 304 794

Inventories 6 99 466 91 079 91 079 101 099

Trade and other receivables 7 130 973 146 739 146 739 124 404

Cash and cash equivalents 46 102 54 164 54 164 79 291

Other financial assets - 675 675 -

Total assets 453 328 468 258 476 062 483 804

Equity and liabilities

Equity 297 002 236 131 236 131 269 022

Share capital212 141 212 141 212 141 212 141

Accumulated profit 84 680 23 763 23 763 56 652

Minority interest 181 229 229 229

Non-current liabilities 36 250 41 334 49 139 38 060

Interest bearing borrowings 34 828 37 462 37 462 36 602

Other financial liabilities - 2 155 2 155 -

Deferred tax liability 1 422 1 718 9 522 1 458

Current liabilities 120 076 190 793 190 793 176 722

Provisions 857 2 377 2 377 1 186

Interest bearing borrowings 4 258 5 858 5 858 5 211

Other financial liabilities - 4 218 4 218 -

Trade and other payables 8 112 219 159 368 159 368 166 467

Current tax payable 2 577 9 615 9 615 3 802

Bank overdrafts 165 9 357 9 357 56

Total equity and liabilities 453 328 468 258 476 062 483 804

17

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

6 months 6 months Yearended ended ended

30 September 2017 30 September 2016 31 March 2017

(Unaudited) (Reviewed) (Audited)

R’000 R’000 R’000Cash flows from operating activities

Cash receipts from customers 330 185 383 576 787 654

Cash paid to suppliers and employees(342 863) (350 568) (679 864)

Cash (utilised in)/generated from operations (12 678) 33 008 107 790

Interest paid (3 006) (3 980) (9 132)

Interest received 1 104 1 396 3 106

Taxation paid (10 671) (6 455) (26 765)

Net cash flow (utilised in)/generated from operating activities (25 251) 23 969 74 999

Cash flows from investing activities

Purchase of property, plant and equipment(1 944) (11 533) (15 371)

Proceeds from disposal of property, plant and equipment 23 128 612

Cash payment for acquisition of subsidiary net of cash acquired - (2 070) -

Movement in intangible assets (3 397) (1 447) (6 482)

Increase in other financial assets - - (335)

Net cash flow (utilised in)/generated from investing activities

(5 318) (14 923) (21 576)

Cash flows from financing activities

Settlement of other financial liabilities - - (8 442)

(Repayment of)/proceeds from interest bearing borrowings (2 728) 8 109 6 601

Net cash flow (utilised in)/generated from financing activities

(2 728) 8 109 (1 841)

Net (decrease)/increase in cash, cash equivalents and bank overdrafts

(33 297) 17 155 51 582

Cash, cash equivalents and bank overdrafts at beginning of period

79 234 27 653 27 653

Cash, cash equivalents and bank overdrafts at end of period

45 937 44 808 79 234

For the 6 months ended 30 September 2017

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GROSS PROFIT MARGIN

• Although Revenue for the period decreased by 23.1% , Margins in most segments improved, and has contributed towards overall Gross Profit Margin which have increased by 6.8%

• Up from 24.9% to 31.7%

Gro

ss p

rofi

t %

Financial Year

19

SEGMENT PERFORMANCE – TELECOMMUNICATIONS

FDH – Fiber Distribution Hub• Various Sizes Available 144,288,576 & 864• Pre-Fibred Solutions & Splice Versions• Integrated Splitters• Full Plug and Play• Customized Cabinets

Achieved revenue of R171.7 million in the current period, which is 6% down from R182 million in the previous interim period

Profit decreased from R29.3 million to R28.8 million, down by 1.8%.

R’ 000

20

SEGMENT PERFORMANCE – DEFENCE AND CYBER SECURITY

Revenue dropped by 49.4% From R115.2 million to R58.3 million

Profit dropped by 38.2% as a direct result of the decrease in revenueMargins however showed an improvement, at 14.5% (R8.4 million) compared to the margin of 11.8% (R13.6 million) reported in the comparative period.

FORTIS SecureChat

Encrypted communications for Instant Messages, File Transfer, Voice A user friendly system that facilitates secure communications over mobile and desktop platforms with seamless integration into business processes. WhatsApp and Email “look and feel” with no on-device storage of communication data.

R’ 000

21

SEGMENT PERFORMANCE – MINING & INDUSTRIAL

Revenue growth due to move towards digitisation in mining sectorFrom R45.2 million to R47.5 million

Profit increased by 27%From 6 million to 7.7 millionMargins went up by up to 16.2 %

Ansys state of the art Original Design Manufacturing Facility

R’ 000

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SEGMENT PERFORMANCE - RAIL

Headless Train Cab System

The system employs two GSM modems to enable voice

and data communications to the rail infrastructure. An

on board GPS provides position information which

enables location based reporting, speed and line profile

information and tracking capabilities

The system provides vital information to the driver and

asset tracking information to the Train Control Officer

Revenue dropped 43.8% From R65.5 million in 2016 to 36.8 million

Margins were under pressure and profits dropped from R6.9 million in the comparable period last year to a loss of R0.5 million this year.

R’ 000

2017 TITLE OF PRESENTATION TO GO HERE

OUTLOOK AND STRATEGY

OUTLOOK

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• Major clients are digitising their operations, and the repositioning of Ansys towards offering digital

technology solutions is expected to yield benefits.

• In the telecommunications sector, we expect the market growth trend to continue due to current

investments made in expanding our offering beyond passive connectivity to include active equipment.

• We envisage increased activity in certain segments of the mining and industrial sectors, due to

digitising of operations

• The international defence market is expected to continue on a growth path.

• Cyber Security: High growth area due to demand for cyber security solutions

• Aggressive expansion in health monitoring systems is expected to bring annuity income.

POSITIONING ANSYS FOR THE FUTURE

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QUESTIONS?