Metrofile : Results for the six months ended 31 December 2021

Results for the six months ended 31 December 2021

Pfungwa Serima / Shivan Mansingh 8 March 2022

Agenda

Welcome and introduction	Pfungwa Serima
Operating context	Pfungwa Serima
Strategy update	Pfungwa Serima

Financial and operational results

Outlook

Shivan Mansingh

Pfungwa Serima

2

Operating context

South Africa

Rest of

Africa

Middle

East

• Despite unforeseen events that affected two significant operating regions during the period, we have had a positive start to the year.
• During the first quarter we experienced destructions of higher priced boxes from various sectors following the implementation of
  POPIA.
• In the second quarter there was an increase in box intake and a reduction in destructions, however local government elections impacted the timing of various government related projects, which we expect to conclude in the second half of the financial year.
• The addition of IronTree to the Group will enhance our core capabilities in providing value-add services in virtual storage and information risk management.
• Botswana and Mozambique achieved pleasing results for the period under review, however Kenya experienced several headwinds particularly in the financial services sector that contributes the majority to the operation's revenue.
• This in turn led to significant pressure on the services revenue within Metrofile Kenya for the period under review, specifically active filing and image processing.
• MRM Middle East has demonstrated significant growth over the past 18 months and is now our largest region outside of South Africa.
• Current initiatives are more project orientated and we expect growth in project pipeline to be reflective of global digitisation trends, however we are currently working towards building a strong digital annuity base.

3

Revenue drivers - 1HFY22 (R'000)

35 476

8%

67 512

14%

	1HFY22
	Total revenue
95 225	R474 289
20%

Secure storage

276 076

58%

Digital services

26 285

6%

72 976

16%

1HFY21

Total revenue

15%	R454 948	289 150
66 537
		64%

Products and		Business support
solutions		services

• Secure storage contributed 58% to revenue down 5% year-on-year due to a 5% reduction in paper service and paper storage being flat year-on-year
• Digital services contributed 20%, up 43% mainly as a result of an increase in digital projects in South Africa, as well as an increase in digitisation activities in the Middle East
• Digital services is now our second largest revenue stream contributor and growth over the past 18 months has demonstrated the effect of the Group's introduction of relevant digital service offerings
• Products and solutions contributed 14%, down 7% due to local challenges that impacted demand for archiving products
• Business support services contributed 8%, up 35% mainly as a result of increased demand in confidential destruction

4

Strategy update