JASCO ELECTRONICS HOLDINGS LTD

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JASCO ELECTRONICS HOLDINGS LTD
Six months to 31 August 2005
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JASCOS PROFILE AND STRATEGY
Joe Madungandaba Chief Executive Officer
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PROFILE

• Jasco has been rated by Empowerdex as an A
  rated BEE group. The group was founded in 1976
  and listed in 1987. Today the group is involved
  in telecommunications, manufacturing and
  security.

2006 will be our 30 year anniversary
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SHAREHOLDER ANALYSIS

• Shares have traditionally been very widely held
• Of the 1 565 shareholders, 73 owns less than 10
  000 shares
• Institutions increased from 10 last year to
  current level of 14
• Directors and management still owns 49 of shares
• CIH has majority voting control

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THE CIH GROUP
CIH (PTY) LTD
Corporate Finance Deal Flow Richard Came Nic
Venter
CI VENTURES
CI HEALTH
CI LOGISTICS
CI TECHNOLOGIES
CI DEVELOPMENT
POWER
ICTE
CZ ELECTRONICS DARTCOM MCT TELECOMS TOFO COSOURCE
SUKUMANI TELECOMS Q MUZIK
MALESELA TAIHAN ELECT. CABLE (M-TEC) MALESELA
TECH. SERVICES MALESELA POWER PANELS MTD NU-LEC C
ONLOG
JASCO ELECTRONICS
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JASCO MANAGEMENT
J Madungandaba CEO
M Lotz COO
Telecommunications
Security F de Villiers
Manufacture
Finance M Tait
Webb P Richards
Multivid C Volschenk
Special Cables D Macdonald
Telesciences N Wright
Scaffel P Achterberg
Tasslelane L Watt
Aerocom L Herholdt
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STRATEGY

• Grow Jasco to a significant player with a
  balanced portfolio in the Telecommunications,
  Electronic and Electrical Sector
• Telecommunications specific focus on access
  layer the last mile preferred technical
  partner
• Manufacturing continued focus on electrical
  market and exploit synergies
• Security establish as an integrator in the
  higher end of the market

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OPERATIONAL FINANCIAL OVERVIEW
Martin Lotz Chief Operating Officer
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FINANCIAL HIGHLIGHTS

• Strong organic growth resulted in 23 revenue
  growth
• Operating profit increased by 36
• Interest charge reduced significantly
• Headline earnings increased by 43
• Earnings increased by 32

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OPERATIONAL HIGHLIGHTS

• All divisions were profitable and improved
  performance
• Product lines expanded in all businesses
• Telecommunications
• Increased spending from major customers
• Manufacturing
• Output grew due to increased product offering and
  continued demand
• Security
• Continued recovery

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GROUP STRUCTURE
JASCO ELECTRONICS
TELECOMS Webb Industries Telesciences Tasslelane
MANUFACTURING Special Cables
SECURITY Multivid Scaffell Aerocom
3X OPERATING DIVISIONS

A provider of specialised, value added solutions,
products and services to telecoms networks
A focused component manufacturer to the
electrical and electronics industries
An integrator and supplier of surveillance
other security systems
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COMPETITOR ANALYSIS

• Manufacturing
• Smaller engineering shops

• Security
• Intervid
• Provicom
• Siemens (ESD)
• Cuincidence/BAC

• Telecoms
• Grintek
• Spescom
• Andrews
• Sietel
• Alan Dick
• Altron

Combination of a competitor and/or customer
and/or a supplier
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MAJOR CUSTOMERS

• Manufacturing
• Defy
• Whirlpool
• Smiths Automotive

• Security
• ABSA
• Standard Bank
• Edgars
• Municipalities

• Telecoms
• Telkom
• Plessey
• Multiband
• Likusasa
• Siemens
• MTN
• Alcom

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TELECOMMUNICATIONS

• Group revenue contribution 57
• Revenue increased by 16
• Operating profit up by 20
• Operating margin further improved to 12,8
• Growth in orders received from Telkom SA
• New export opportunities identified
• Partnership with international firm in the Mast
  and towers division investigated

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MANUFACTURING

• Group revenue contribution 27
• Revenue up 19
• Operating profit increased in line with revenue
• Operating margin consistent with last year at
  12,5
• Strong consumer demand for domestic appliances
  and autos
• Increase in exports of pool products continue

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SECURITY

• Group revenue contribution 16
• Revenue increased by 65
• Loss position reversed
• Operating margin increased to 7,2
• Business re-structured into three business units
• Annuity income base doubled by purchase of long
  term service contract

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REVENUE BY DIVISION
AUG04
AUG05
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CONTRIBUTION BY DIVISION
AUG04
AUG05
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INCOME STATEMENT
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CASH FLOW STATEMENT
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RATIO ANALYSIS
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BALANCE SHEET
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MAIN OPERATIONAL INITIATIVES

• Cement our turnaround
• Increase organic growth
• Grow through acquisitions

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OPERATIONAL INITIATIVES

• Cement the turnaround
• Sustain profitability in all business units
  through investment in infrastructure and
  nurturing talent
• Aggressive management of cash resources to
  strengthen balance sheet
• Continuous improvement of our BEE status through
  procurement and equity employment
• Maintain dividend payments (3X cover)

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OPERATIONAL INITIATIVES

• Sustainable organic growth
• Exploit experience and BEE status to grow
  organically
• Grow annuity type income to reduce earnings
  volatility
• Utilise cash from operations to fund organic
  growth
• Identify and implement synergies with external
  parties to increase market share and/or capacity

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OPERATIONAL INITIATIVES

• Acquisitive growth
• Use Jascos BEE status partners to expand
  portfolio of businesses in the ICTE sector
• Consider companies within the CIH stable to
  exploit synergies in the technology sector
• Utilise CI Ventures experience and venture
  capital resources to filter potential
  acquisitions

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OUTLOOK 2006 AND BEYOND

• Organic growth underpinned by well established,
  diverse businesses in growing markets
• Ongoing cash generation can be used to fund the
  organic growth
• BEE credentials and hands on BEE partners with
  long term goals underpin future growth potential
• Positive prospects

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QUESTIONS
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APPENDIX
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JASCOS PERFORMANCE
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KEY GROWTH DRIVERS
Strong BEE credentials
Export Own IP
NEPAD infrastructure build
Sustainable growth positive outlook
Ongoing need for Security
Telecoms Growth in SA Africa
Consumer demand (middle market)