Integrated Report 2024

Integrated Report 2024

CFO'S REPORT

ASHONA KOOBLALL

In this, my first letter to shareholders, I am pleased to report progress on various fronts.

Notably, for the first time in several years, this year’s financial results do not include any normalised accounting, and the Group has received an unqualified audit opinion for the fifth consecutive year.

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CEO'S REPORT

MARIUS DE LA REY

Creating exceptional value in a digital world

My appointment as interim Group CEO, on 30 May 2024, has given me the opportunity to lead during a critical business turnaround. The changes have impacted the entire EOH ecosystem, with sacrifices made across teams and systems that brought us to this point.

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CHAIRMAN'S REPORT

JABU MOLEKETI

Leading the way into a promising new era

EOH continues to improve its operations to create lasting value for its stakeholders. Despite leadership changes, restructuring and a tough economy, the Group strengthened its market position in the 2024 financial year (FY2024), setting the stage for future growth and innovation.

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WHAT WE OFFER

iOCO SA
Infrastructure
Services and Applications

% contribution to Group revenue

34%

+

Solutions encompassing the configuration, security and management of IT hardware, spanning from server rooms to end-user computing.

  • Infrastructure provisioning
  • Outsourced managed services
  • Infrastructure-as-a-Service
  • Private cloud and hosting
  • Enterprise applications
  • Software reseller

Typical client profile


Clients of different sizes looking to manage and streamline their infrastructure environments.

Digital Enablement

% contribution to Group revenue

30%

+

Bringing together a diverse range of innovative talents to create and enhance business agility and digital resilience for our customers.

  • Design and strategic advisory
  • Software development
  • Data and analytics
  • Intelligent automation
  • Cloud and security
  • Software quality assurance
  • RLab
  • Security and building technology (SBT)

Typical client profile


Large and enterprise-sized clients across various industries aiming for business agility and digital resilience.

Connected Industrial Ecosystems

% contribution to Group revenue

15%

+

Solutions that help design, operate and optimise critical information technology and infrastructure across heavy industry sectors, including industrial, energy, mining, manufacturing, and oil and gas.

  • Digital Industries
  • Power Solutions
  • Connectivity Solutions

Typical client profile


Industrial, energy, mining, manufacturing, and oil and gas clients across Africa seeking to digitise their engineering and operations while improving safety and efficiency.

International

% contribution to Group revenue

11%

+

The International Business is a portfolio of unique businesses across different territories.

Each of these have their own focus areas – all largely supported by digital enablement as a key growth driver.

  • Europe (UK, Switzerland)
  • Middle East

Typical client profile


Middle East: Clients in sectors like financial services, public sector, agriculture and telecommunications.


UK/Switzerland: Clients seeking our digital enablement, system integration and software resale capabilities.

EasyHQ

% contribution to Group revenue

15%

+

EasyHQ enables businesses to meet and exceed their goals by delivering specialist solutions that ensure compliance, mitigate risks, align people and practices, and optimise vital Company assets.

Typical client profile


A broad spectrum of clients, ranging from emerging companies refining their governance, risk, compliance and people management frameworks to established blue-chip firms and multinationals with intricate solution needs.

Percentage revenue contributions do not add up to 100% as the percentages for NEXTEC Legacy (4%) and Reconciliations (-9%) are not represented in this section.

OUR ESG FRAMEWORK

The EOH ESG framework is distinctive in its focus and extends beyond addressing the sustainability needs of its people and communities. It also delivers practical solutions to help clients achieve their sustainability goals. This commitment to action seamlessly aligns with the United Nations Sustainable Development Goals (UN SDGs), which provide a global agenda for development toward an equitable and shared future. The table below illustrates how EOH’s ESG framework actively supports the advancement of the UN SDGs.

EOH materiality
Environment
  • Greenhouse gas (GHG) emissions
  • Energy management, water and wastewater management
Social
  • Community impact, access and affordability, labour practices, employee health and safety
Governance
  • Business ethics, systemic risk management, customer privacy and data security, management of the legal and regulatory environment
Our business
Environment
  • As a services business, EOH has a low emissions profile. We continue to challenge ourselves to manage and reduce emissions efficiently each year.
Social
  • Our talent is essential for long-term sustainability. For this reason, EOH believes an exceptional employee experience is critical to the success of the Company and the individual. EOH strives to create an environment where talented individuals can thrive.
Governance
  • EOH’s approach to systemic risk management has cultivated a robust culture that protects and guides the Company as it works towards its strategic objectives. This framework encompasses all aspects of governance, legal and regulatory environments.
Our clients
Environment
  • EOH businesses provide professional services to clients in the mining, industrial, manufacturing, and oil and gas sectors to improve the efficiency of their operations.
Social
  • EOH’s People Solutions optimise human capital through recruitment, training and functional outsourcing for our clients.
Governance
  • EOH has developed world-class GRC solutions based on lessons learnt and enhancements to governance, risk, and compliance controls. The solutions are available as platforms for our clients.
Our community
Environment
  • EOH supports entrepreneurs in launching green businesses and provides assistance with climate literacy initiatives.
Social
  • EOH supports various community-oriented projects as an ethical corporate citizen. We focus on community education, employability opportunities, volunteerism and skills development in entrepreneurship as catalysts for change.
Governance
  • EOH continues to recognise its responsibility to help corporate South Africa be part of the solution in the fight against corruption.

OUR VALUE CREATION IN PRACTICE

EOH is one of the largest end-to-end technology companies in Africa, with a growing international presence. The Group enables critical services across diverse industries by developing innovative solutions that support its clients’ ambitions.

Human Capital Icon
+

Top Employer

Maintained Top Employer status

R2.62 billion

salaries paid in SA

>4 600

employees

52%

black employees

51%

female employees

70%

AIC employees

85%

AIC proportion of new hires and promotions

55%

female proportion of new hires

83%

percentage of employees that are proud to work for EOH

Financial Capital Icon
+

R6.0 billion

Group revenue

77%

revenue type from services

R112 million

operating profit

R41 million

debt pay down

59%

reduction in facilities cost since 2019

28%

y-o-y reduction in net interest charges

Natural Capital Icon
+

27%

y-o-y reduction in electricity consumption

53%

y-o-y reduction in generator diesel expense

10 000m2

reduction in property footprint in FY2024

+

B-BBEE

level 1

status

1 521 hours

total volunteer hours

521 hours

total volunteer hours

1 814

youth employed through the Talent business

5 012

number of learners trained by People Solutions

3 837

number of unemployed learners placed for work experience at host companies by People Solutions

482

number of youth employed through People Solutions, in partnership with Yes4Youth

R3.5 million

SED partner spend

~R1 million

value of furniture donated to NGOs

R1.1 million

CSI spend

Intellectual Capital Icon
+

The first sale of our i-Rams integrated asset management solution to a client outside the ‘roads’ sector.

Examples of IP businesses

Digital signatures/chain of custody

Impression

Identity verification and background screening

VeriX

Banking platform

Emid

A risk identification tool that uses advanced voice analytics to assess an individual’s risk profile

AuthentIQ

Smart agriculture solution

NAMAA

HR and payroll platforms

Symplexity/Educos

An all-encompassing, unified asset lifecycle solution for operational technology infrastructure

i-RAMS

Manufactured Capital Icon
+

41 million

number of security incidents investigated for clients over the five years since our Security Operations Centre began operations, helping to prevent cyberattacks

110

number of APIs simulated on our Hoverfly Cloud platform for a large US-based retailer (removing dependency on nine major back-end systems and seven payment integration suppliers in development environment)

13

number of new services offered to clients across our Anything-as-a-Service (XaaS) and Security-as-a-Service (SECaaS) offerings

30

IS3 hosted its 30th Annual AVEVA X-Change User Conference, furthering the creation of digital champions and strengthening connections within the industrial ecosystem

>35 000

number of meters read every 30 minutes by CIE’s advanced systems across the continent

170 000

number of kilometres of fibre modelled in geospatial asset management systems deployed and supported by iST

1st

iST developed the first fully local distribution grid-monitoring solution for revenue enhancement, asset management and operations digitalisation in municipalities, using IoT technology

15

years of consecutive ISO accreditation achieved by the Infrastructure Services business

8 652

number of reports submitted to SAPS for investigation through a data-driven platform for lawful interception built for a telecommunications client

15

number of AI agents (virtual AI employees) developed to enhance decision-making and workflow processes

353

number of prebuilt industry–specific AI models created for clients by our Data and AI teams

63 000

number of new users for our Impression digital signature and chain-of-custody solution

AIC: African, Indian, Coloured (people)

CIE: Connected Industrial Ecosystems

CSI: Corporate Social Investment

SED: Socioeconomic Development

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Our stakeholders

Our understanding of stakeholder needs and expectations informs our business approach, enabling us to identify risks and adapt to change effectively.

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Our strategy

Our GET (Growth-Efficiency-Talent) strategy is focused on driving the growth of our operating businesses.

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Corporate governance

EOH has a fully functional Board that leads and controls the EOH Group. The Board and the leadership team aim to promote a culture of ethics and compliance, adhering to corporate governance principles. As a result, sound corporate governance is deeply embedded throughout the organisation and its subsidiaries.

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