Our business model and value creation
Over the past three years, EOH has spent a significant amount of time on its turnaround strategy. The turnaround plan was focused on dealing with the legacy issues inherited by the current executive management team and refining and revising its capital and corporate structure to stabilise the business (with an emphasis on quality earnings, cost reduction and solving the substantial legacy debt and inefficient capital structure), and positioning EOH for future growth. The growth stage was kicked off in 2021 as the sound progress in bedding down of the business structure, debt relief and generating profits became evident.
CAPITAL INPUTS
FINANCIAL CAPITAL
- Leverage
- Working capital management
- EBITDA
INTELLECTUAL CAPITAL
- Own IP platforms
- Over 500 partnership certifications
- Specialised and bespoke solutions
- Technological expertise
HUMAN CAPITAL
- ~6 000 employees
- Strong executive team and Board
- Superior market expertise and sales capability
- Level 1 B-BBEE
SOCIAL AND RELATIONSHIP CAPITAL
- Enduring client relationships across private and public sector
- Strategic relationship with key tech partners
- Constructive engagement with public sector
- Preferential procurement
- Long-term socioeconomic development ('SED') partnerships
- Strong governance culture
NATURAL CAPITAL
- Energy and
water used
A presence in strong growth sectors
Technological capabilities in growth categories as companies migrate away from inefficient legacy systems
Capabilities to expand into new markets
while leveraging off the South African platforms
Expanding into UK, Europe and Middle East
A full repertoire of services delivered in a holistic fashion
Go-to-Market teams' ability to leverage the
Group's holistic service offering to clients
STRATEGIC PILLARS
International
expansion
OEM partnership
strategy
Tailored Go-To-Market
strategy
Cloud and infrastructure
services for mid-size
corporates
Automation across
the OT/IT spectrum
Organic growth through
cross-sell potential
Investment into own
IP platforms
SOLVE
for good
CAPITAL OUTPUTS
FINANCIAL CAPITAL
- Revenue R7 882 million
- Net working capital stable at R263 million
- EBITDA R667 million
INTELLECTUAL CAPITAL
- Continued progress in consolidating and aligning business
- Established Rocketlab Ventures to scale early-stage IP companies
HUMAN CAPITAL
- An enhanced employee value proposition ('EVP')
- Launched RiseUp Academy to assist in employee reskilling and upskilling
- Women now account for 46% of workforce, with 38% at management level and 33% at exco level
- Upskilled 455 employees at various business schools and providers in certified skills programmes and 58% were female for a total investment of R3.8 million
SOCIAL AND RELATIONSHIP CAPITAL
- Through partnership with Siyanqoba, 201 disabled learners have been trained in various qualifications over the 2021 financial year
- Provided R2.1 million in support of e-DEAF learnership and AET programmes
- Preferential procurement
- Level 1 B-BBEE status retained
NATURAL CAPITAL
- Lower energy and water use due to the reduction in number of occupied buildings, travel and use of Company vehicles as a result of COVID-19 lockdown
- Carbon footprint reduced by 55%