Results presentation August/September 2010 2010.pdfAugust/September 2010. 2 Operating environment....
Transcript of Results presentation August/September 2010 2010.pdfAugust/September 2010. 2 Operating environment....
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Results presentationAugust/September 2010
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2
Operating environment
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Unemployment
December 2009
Not economically active
Unemployed
Formal employment
Other employment13%
45%29%
13%
Source: Stats SA Community Survey
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Unemployment update
4
Q1 2010
Official unemployment now over 25%, to 4.3 million
The comparable figure at Dec 2009 is 23.6%
Including discouraged job-seekers, now over 35%
Job losses over the last 4 quarters 833 000
Economic growth to increase to 3% in 2010
Unlikely to spur job creation
Source: Stats SA
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Discretionary spending
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For 2010 …
… nearly half of respondents plan to reduce discretionary
spend this year.
This ratio has increased since September 2009.
Only 11% plan to increase it.
15% of respondents were planning to spend on "tuition".
Source: Mastercard consumer survey March 2010
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Consumer spending
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Consumer spending by category
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Effect of household debt
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On the importance of education
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“The most important
investment in the future
of any nation is in
education. No legacy
can be higher than
that.”
Source:
President Zuma: 1Goal Education for All Summit
11 July 2010
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Financial results
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Financial highlights
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1H20101H2009 % change
R693m R740m +7%Revenue
R103m R101m -3%Operating profit
19.6c 18.2c -7%HEPS and diluted HEPS
56.2c 58.7c +4%Free operating cash flow per
share
7.5c 8.0c +7%Distribution per share
R79m R73m -7%Profit for period
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Financial overview
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0
200
400
600
800
05 06 07 08 09 10
R'm
CAGR = 17%
Group revenue
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Financial overview
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0%
5%
10%
15%
20%
06 07 08 09 10
Group operating margin
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Financial overview
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0
5
10
15
20
25
05 06 07 08 09 10
Ce
nts
CAGR = 21%
HEPS
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Analysis of operating results
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Rm
To
June
2009
Approx
effect of
inflation %
Capacity
growth %
Efficiency
savings %
To
June
2010
Revenue 693 47 7 740
Remuneration 315 21 7 11 3 347
Depreciation 28 2 7 3 11 33
Occupancy 70 5 7 8 11 83
Other costs 177 12 7 13 8 176
EBIT 103 101
Totals 22 13
Investment in capacity growth is thus approx 4% of expenditure
This is offset by savings of 2%
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Financial overview
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0
50
100
150
200
250
300
06 07 08 09 10
R'm
Cash flow generation
Cash generated by operations
Cash from operations (after working capital)
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Financial overview
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0
50
100
150
200
250
06 07 08 09 10
R'm
Net cash position
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Cash flow comparison
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1H20101H2009 % changeRm
251 263 +5%Cash generated
8 6 -27%Interest received
-119 -65 -45%Investments
-49 -53 +8%Distributions
-38 -79 +109%Tax paid
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Balance sheet insight
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1H20101H2009 % changeRm
555 630 +13%NAV
117 118 +1%Net cash on hand
187 201 +7%Intangibles
590 647 +10%Fixed assets
229 273 +19%Fees in advance
119 120 +1%Debtors
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Segmental analysis
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Segmental analysis
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84%
16%
Revenue 2009
Education Resourcing
86%
14%
Revenue 2010
Education Resourcing
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Segmental analysis
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87%
13%
Operating profit 2009
Education Resourcing
86%
14%
Operating profit 2010
Education Resourcing
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SCHOOLS HIGHER EDUCATION SKILLS
ADvTECH Education
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Education division
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0
200
400
600
800
05 06 07 08 09 10
R'm
CAGR = 17%
Revenue
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Education division
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0
20
40
60
80
100
120
05 06 07 08 09 10
R'm
CAGR = 17%
Operating profit
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RECRUITMENT
ADvTECH Resourcing
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Resourcing division
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0
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40
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120
05 06 07 08 09 10
R'm
CAGR = 21%
Revenue
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Resourcing division
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0
5
10
15
20
25
05 06 07 08 09 10
R'm
CAGR = 29%
Operating profit
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Prospects
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Outlook
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Education
• Strategy of investing in quality education
• High academic standards
• Graduate and alumni success
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Outlook
31
Education
• Strategy of investing in quality education
• High academic standards
• Graduate and alumni success
Resourcing
• Successfully met difficult market challenges
• Market niche focus
• High demand scarce skills
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Outlook
32
Education
• Strategy of investing in quality education
• High academic standards
• Graduate and alumni success
Resourcing
• Successfully met difficult market challenges
• Market niche focus
• High demand scarce skills
Sound management, balance sheet and cash flow
sustain well-proven business model and long term
investment planning
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5 Year – Market Cap Index
0
50
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400
5 yr ADH Mark Cap JSE All Share Index JSE Small Cap Index
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Questions