Wrap Text
Reviewed Provisional Condensed Consolidated Financial Statements for the year ended 31 March 2018
Ansys Limited
("Ansys" or "the company" or "the Group")
(Incorporated in the Republic of South Africa)
(Registration Number: 1987/001222/06)
Share Code: ANS
ISIN: ZAE000097028
Reviewed Provisional Condensed Consolidated Financial Statements
For the year ended 31 March 2018
(KEY FEATURES)
- Revenue decreased (down 29%) to R572.6 million (2017: 806.0 million)
- The revenue performance continues to reflect a positive trend of a compounded
annual growth rate (CAGR) of 31% over three years
- Gross Margin improved to 28,3% (2017: 26,3%)
- Headline Earnings per share halved (50% down) to 7.29 cents (2017: 14.72)
- Earnings continue to reflect an upward trend with a positive CAGR of 18% over
three years.
- EBITDA reduced (down 46%) to R60.7 million (2017: R113.1 million)
- The EBITDA result demonstrates an encouraging trend with a CAGR of 46% over
three years
- Tangible Net Asset Value increased to 39.9 cents from 32.6 cents (up 22%)
- Liquidity ratio improved from 1.7 to 2.1
Condensed consolidated statement of financial position
As at 31 March 2018
Notes 31 March 2018 31 March 2017
(Reviewed) (Audited)
R'000 R'000
Assets
Non-current assets 184 569 179 010
Property, plant and equipment 50 294 53 158
Intangible assets 118 543 118 692
Deferred tax asset 14 722 6 150
Other financial asset 1 010 1 010
Current assets 285 379 304 794
Inventories 3 88 276 101 099
Trade and other receivables 4 140 790 124 404
Current tax receivable 5 513 -
Cash and cash equivalents 50 800 79 291
Total assets 469 948 483 804
Equity and liabilities
Equity 302 446 269 022
Share capital 212 141 212 141
Accumulated profit 90 305 56 652
Minority interest - 229
Non-current liabilities 32 952 38 060
Interest bearing borrowings 27 788 36 602
Deferred tax liability 5 164 1 458
Current liabilities 134 550 176 722
Provisions 5 388 1 186
Interest bearing borrowings 9 461 5 211
Trade and other payables 110 155 166 467
Current tax payable - 3 802
Bank overdrafts 9 546 56
Total equity and liabilities 469 948 483 804
Condensed consolidated statement of comprehensive income
For the year ended 31 March 2018
Year Year
ended ended
31 March 2018 31 March 2017
Note (Reviewed) (Audited)
R'000 R'000
Revenue 572 562 806 019
Cost of sales (410 379) (593 887)
Gross profit 162 183 212 132
Other income 2 276 969
Operating costs (125 787) (130 304)
Other gains/(losses) 7 849 17 409
Operating profit 46 521 100 206
Finance income 1 975 3 106
Finance costs (6 143) (9 132)
Profit before taxation 42 353 94 180
Taxation (8 929) (26 429)
Net profit for the period 33 424 67 751
Total comprehensive income
for the period 33 424 67 751
Attributable to:
Equity holders of the company 33 473 67 876
Non-controlling interest (49) (125)
33 424 67 751
Basic earnings per share (cents) 1 7.26 14.72
Diluted earnings per share 7.26 14.72
(cents)
Condensed consolidated statement of cash flows
For the year ended 31 March 2018
Year Year
ended ended
31 March 2018 31 March
2017
(Reviewed) (Audited)
R'000 R'000
Cash flows from operating
activities
Cash receipts from customers 556 150 787 654
Cash paid to suppliers and
employees (550 935) (679 864)
Cash generated from operations 5 215 107 790
Interest paid (6 143) (9 132)
Interest received 1 974 3 106
Taxation paid (23 112) (26 765)
Net cash flow from
operating activities (22 066) 74 999
Cash flows from investing
activities
Purchase of property, plant and
equipment (4 942) (15 371)
Proceeds from disposal of
property, plant and equipment 1 169 612
Investment in intangible assets (7 578) (6 482)
Increase in other financial assets - (335)
Net cash flow from
investing activities (11 351) (21 576)
Cash flows from financing
activities
Decrease in other financial
liabilities - (8 442)
Increase in interest bearing
borrowings (4 564) 6 601
Net cash flow from financing
activities (4 564) (1 841)
Net (decrease)/increase in cash,
cash equivalents and bank (37 981) 51 582
overdrafts
Cash, cash equivalents and
bank overdrafts at beginning of year 79 235 27 653
Cash, cash equivalents and
bank overdrafts at year end 41 254 79 235
Condensed consolidated statement of changes in equity
For the year ended 31 March 2018
Accumu
Issued lated Non-
share (losses)/ controlling
capital profit interest Total
R'000 R'000 R'000 R'000
Balance as at 1 March
2016 (Audited) 212 141 (11 224) 354 201 271
Movements during the year
Profit for the year - 67 876 (125) 67 751
Balance as at 31 March
2017 (Audited) 212 141 56 652 229 269 022
Movements during the year
Profit for the year - 33 473 (49) 33 424
Acquisition of minority
interest - 180 (180) -
Balance as at 31 March
2018 (Reviewed) 212 141 90 305 - 302 446
Changes to the Group Segment Profile
Ansys has transformed its structure to align to the group's growth strategy, which
positions Ansys as a digital technology solutions provider. To this effect, three new
business units have been established, along three horizontal market segments. With
these, the group intends to unlock and broaden value for customers.
The transformation:
- Mining, Industrial, Defence and Cyber Security have transformed to: Original
Design Manufacturing (ODM)
As an ODM, the business designs, develops and manufactures a wide range of advanced
electronic and digital products for internal and external customers.
- Rail has transformed to: Safety and Productivity
This enables Ansys to provide digital safety and environment management systems that
range from sensors, asset management, telematics, IoT, robotics, mechatronics and
maintenance.
- Telecommunications has transformed to: Digital Network
This enables Ansys to offer connectivity and communications products, solutions and
services that include fibre and wireless deployment, data and digital radio
communications networks and network monitoring as well as power related
infrastructure solutions.
Condensed consolidated segment report
For the year ended 31 March 2018
Year Year
ended ended
31 March 2018 31 March 2017
(Reviewed) (Audited)
R'000 R'000
Segment revenue
Safety and Productivity 77 035 100 240
Solutions
Digital Network Solutions 266 469 428 836
Original Design Manufacturing 229 058 276 943
Total 572 562 806 019
Segment profit
Safety and Productivity (4 210) 5 530
Solutions
Digital Network Solutions 27 606 82 248
Original Design Manufacturing 31 542 22 455
Sub total 54 938 110 233
Corporate costs (8 416) (10 027)
Finance costs (6 143) (9 132)
Finance income 1 974 3 106
Profit before taxation 42 353 94 180
Financial position ^
Assets 469 948 483 804
Safety and Productivity 91 571 80 748
Solutions
Digital Network Solutions 142 646 198 290
Original Design Manufacturing 235 628 203 556
Corporate assets 103 1 210
Liabilities 167 502 214 782
Safety and Productivity 24 920 12 090
Solutions
Digital Network Solutions 45 471 114 977
Original Design Manufacturing 97 109 84 625
Corporate liabilities 2 3 090
^ In the current reporting period, the operating segments have been reclassified to align with the
Groups stated digital strategy. Consequently, the prior year reporting has been restated. As in the
past, the allocation of assets and liabilities is based on the principle of being directly related to the
segment.
In the prior period the consolidated segment report was stated as follows:
Year
ended
31 March 2017
(Audited)
R'000
Segment revenue
Rail 100 240
Defence and Cyber Security 187 623
Mining and Industrial 89 320
Telecommunications 428 836
Total 806 019
Segment profit
Rail 5 530
Defence and Cyber Security 14 721
Mining and Industrial 7 734
Telecommunications 82 248
Sub total 110 233
Corporate costs (10 027)
Finance costs (9 132)
Finance income 3 106
Profit before taxation 94 180
Financial position
Assets 483 804
Rail 80 748
Defence and Cyber Security 142 045
Mining and Industrial 61 511
Telecommunications 198 290
Corporate assets 1 211
Liabilities 214 782
Rail 12 090
Defence and Cyber Security 61 872
Mining and Industrial 22 753
Telecommunications 114 977
Corporate liabilities 3 090
Group Profile
Ansys Limited is a diversified digital technology solutions provider. Through leveraging
off its own IP and that of its partners. Ansys develops, produces, distributes and
integrates technology solutions to enhance customer and consumer safety and
productivity, connectivity, cyber security and defence.
With its excellence in digital technologies and extensive technical and business
experience, the group creates value by offering integrated research, design and
manufacturing of customer-designed solutions, acting as a distributor, and a system
integrator of technology-based products which are generally geared towards
withstanding harsh environments.
Group Financial Results Highlights
Ansys has remained profitable with a consistent 50% NPAT CAGR over 3 years. The
group's financial results returned to normalised levels, following an exceptional 2017
performance, with only one business unit not contributing to the profitability. The group
has maintained its medium term upward trajectory, despite a difficult trading
environment.
Revenue declined by 29% to R572.6 million (2017: R806.0 million) with profit for the
year totalling R33.4 million (2017: R67.7 million).
The decline in financial performance can be attributed mainly to budget revisions by key
customers in response to adverse macro-economic factors. The impact of the exceptional
exchange gain in 2017 (R17.4 million) as opposed to R7.8 million in the current period
also contributed to reduced profitability. Gross profit margin improved to 28.3% (2017:
26.3%) on the back of improved product mix and the implementation of various
efficiency initiatives, and despite a product defect provision or R4.6 million in one of the
group's rail products.
While declining to R60.7 million in 2018 (2017: R113.1 million); EBIDTA continues to
reflect the encouragingly positive CAGR of 46% over the past three years.
Operational expenses which came in at R125.8 million, were 3.5% lower than they were
in the previous year (2017: R130.3 million), even though this figure includes expenses
of R8.2 million related to strategic investments. These investments were made to create
new group capability to support the growth strategy.
Headline earnings per share (HEPS) halved by 50% to 7.29 cents compared to 14.72
cents per share in the previous period. HEPS continued to show a positive CAGR,
trending over 3 years of 18%. The tangible net asset value per share increased by 22%
from 32.6 cents to 39.9 cents per share.
OUR OPERATIONS
During the period under review, the group continued to invest and leverage off its core
competencies in innovation and design to support its growth strategy.
Further investments were made in strengthening the leadership capacity of the group.
These investments impacted on profits and cash resources in the short-term but are
essential to the objective of creating a more sustainable business that can exploit
additional market segments in the medium to long term.
The group also changed its organisational structure during the period, establishing three
new business units to house the new solutions offerings. This enabled it to become more
outcome-focused, and to foster better collaboration by introducing group-level shared
services and centralising some functions including finance and human resources. Critical
to this process, was for the organisation to become more client focused, with an
enhanced ability to respond to customer needs and to have insightful narratives with
both existing and potential customers. To this effect the group insourced the marketing
and communication function to facilitate customer care, the organisation's rebranding
initiative and to champion the creation of a single core identity for the group, as well as
to streamline the group's marketing efforts.
SEGMENT PERFORMANCE
Original Design Manufacturing
The segment's profit increased by 40.5% to R31.5 million (2017: R22.5 million) as a
result of various initiatives launched at the beginning of the year which focused on
improving delivery schedules, efficiency, capacity and quality. The improvement reflects
the group's strategy of focusing its efforts on substantial customers, where it is able to
realise better efficiencies and establish long-term business relationships.
Revenue in this segment declined to R229.1 million (2017: 276.9 million) as local trading
conditions remained challenging and certain customers either reassessed or rescheduled
their orders.
Export revenue decreased from R158 million in 2017 to R96.4 million in 2018, a decline
of 39%. This decrease was mainly attributable to an overstock situation which resulted
in a temporary cutback of orders by some clients. International demand for the supply of
defence-related products as well as cyber security solutions remains strong and the
group is now well positioned to leverage off new projects being initiated by major
customers.
Safety and Productivity Solutions
The safety and productivity solutions business experienced a decline in both revenue and
profits in 2018. Supressed economic activity and flat commodity prices continued to
impact on transport volumes at major clients which, in turn, led to a lower number of
orders resulting from the deferment of infrastructure upgrades and replenishment of
rolling stock. Accordingly, revenue declined by 23% to R77 million (2017: R100.2
million).
The segment's performance was also negatively impacted by a product defect at one of
the rail clients. The process of replacing the affected units with an internally designed
and manufactured unit has commenced. In addition to the expense of R700k incurred in
this way, a provision of R4.6 million has been made for expected losses. Consequently,
the division recorded a net loss of R4.2 million (2017: R5.5 million profit) for the year.
Excluding the product recall, the business generated a profit of R1.1 million.
Operating margin, excluding the product defects, decreased to 1.4% (2017: 5.5%)
primarily due to the lower revenue.
Digital Network Solutions
The telecommunications segment experienced a significant slowdown in the roll-out of
FTTH (Fibre-to-the-home) by some of the network operators, following the upsurge in
demand in the previous financial year. The moderation in activity was largely driven by
key customers reviewing their infrastructure budgets due to a macroeconomic slowdown.
As a result, revenue dropped by 38% to R266.4 million (2017: R428.8 million) and profit
decreased from R82.2 million to R27.6 million. The segment's profit margin declined
from 19.2% to 10.4%. This decline was influenced by the exceptional foreign exchange
gain in 2017 (R 12.6 million) compared to a loss of R0.7 million in the current year.
Despite the low profit performance, the telecommunication business improved
efficiencies and reduced inventory levels by 28%. Overall liquidity improved from 1,4 to
2,5.
OUTLOOK
The immediate outlook for the South African economy remains cautious, although
medium-term prospects have improved since late 2017. This is primarily due to notably
less concern about domestic politics and the policy environment, as well as to the recent
confirmation of the country's investment grade rating by Moody's. GDP is expected to
grow by 1.4% and 1.7% in 2019, this will depend largely on political stability, improved
investor and business sentiment, and a less volatile exchange rate.
At group level, Ansys (recently rebranded as Etion) continues to implement the growth
strategy it introduced in 2012, which was then focused on creating long-term
sustainability and improving competitiveness, and has now evolved to building a digital
business. The group has restructured accordingly, with its new positioning as a
diversified digital technology group. With the extended opportunities that greater
integration at operational level will provide - we anticipate a steadily increasing demand
for Etion's products, services and solutions. We are also continuing to explore suitable
acquisitions and to focus on expansion into sectors and segments, which will support
growth in revenue.
We anticipate that the intensifying disruptions caused by the digital revolution, the
exponential growth in the Internet of Things (IoT) and the related threat of increasing
cyber-crime will create a greater demand for the integrated solutions that the group is
able to offer. Local demand across the current three segments, and the most recently
introduced segment, cyber security, is therefore expected to be healthy.
Internationally, where growth forecasts are generally higher, there are opportunities to
leverage our solutions in the rest of Africa and the Middle East. The group is also
considering expanding into Australasia, with its cyber security products.
We see market growth and demand for our design, development and manufacturing
services with the continued evolution of digital technology, especially the developments
in IoT (Internet of Things).
This is as enterprises continue to seek digital solutions to optimise efficiencies, as well as
enhance the safety and productivity of their operations. Digital mining in particular is
becoming a key focus for mining clients with stricter implementation of mine safety
regulations.
At the core of these technologies is connectivity, which is giving rise to the demand for
digital networks. The ability to provide secure network platforms that perform
intelligently with the exponential growth of data across industries, is driving the growth
for digital networks.
Systems, data, networks are more vulnerable to cyber threats than they have ever been
before. The cyber security market is growing at a rapid rate due to an unprecedented
increase in criminal activity. The extensive use of authentication, encryption, and
biometrics in enterprise applications and on the internet, to protect enterprises,
governments, and individuals makes this a high-growth segment, into the future.
OUR NEW STRUCTURE
Etion (formerly Ansys) has been reorganised into four businesses and horizontal market
segments in order to be able to deliver on its strategy. Both businesses and functions
are arranged by capabilities long an integrated value chain that draws on the group-wide
capability to deliver seamless end-to-end solutions for its customers.
The restructuring of the group has been driven by the vision of a value chain that can be
summarised in four words: Create. Digitise. Connect. Secure.
Original Design Manufacturing (create)
In line with Etion's new horizontal, solutions-focused structure, this business is
responsible for the 'create' component of the value chain. It designs, develops and
manufactures a wide range of advanced electronic and digital technologies for both
internal and external customers.
Etion's Create, will continue, as the group always has, to invest proactively in developing
own IP, which will enable it to remain competitive in the rapidly changing environment in
which Etion operates. The business's ability to partner with its customers will also
support its ability to establish and maintain long-term business relationships with large
clients that have multi-dimensional needs.
Safety and Productivity Solutions (digitise)
This business is responsible for the 'digitise' component of the value chain. It provides,
installs and maintains digital safety and environment management systems that include
sensors, telematics technologies, IoT technologies. Its service offering includes fully
integrated asset management and a complete maintenance service.
Customers in the mining and rail sectors in particular continue to seek digital solutions to
enhance safety, maximise efficiencies and improve productivity. Digitising operations is a
key focus for these customers, and this presents the group with many new and
sustainable opportunities. Stricter regulations in mine and rail safety will also offer
opportunities to develop integrated solutions for local customers that will be equally
applicable in other countries in the rest of Africa and the Middle East.
Digital Network Solutions (connect)
Digital Network Solutions is responsible for the 'connect' component of the value chain.
It offers connectivity as well as a comprehensive range of communications products,
services and solutions. These include fibre and wireless deployment, data and digital
radio communications networks, network monitoring services, and power-related
infrastructure solutions.
Like the rest of the group, this business will continue to invest in expanding its core
competencies and abilities in order to offer more value to customers.
Cyber Security Solutions (secure)
This, the fourth of the new businesses within the group is responsible for the 'secure'
component of the value chain. It provides essential cyber-security solutions and
services, creating trust in electronic business transactions by providing identification
technologies, biometric solutions, digital signatures, authentication, and encryption in
order to secure these transactions for countries, business and individuals alike.
FINANCIAL RESULTS COMMENTARY
While the business environment in which the group operates remained challenging
throughout the reporting period, marginal improvements were noticeable by year-end.
During the year, we continued to focus on those factors within our control, namely:
extracting operational efficiencies, cost and working capital management and managing
the balance sheet within liquidity and gearing risk parameters.
Significant movements other than noted above include the following:
CASH FLOW STATEMENT
Year Year
Ended Ended
31 March 2018 31 March 2018
(Reviewed) (Audited)
R'000 R'000
Profit before tax 42 353 94 180
Adjustments For:
Net finance costs 4 168 6 026
Depreciation 6 439 5 035
Amortisation 7 727 7 940
Loss/(Profit) on sale of property plant and equipment 198 (111)
Increase in provision for slow moving and obsolete 90 605
raw materials
(Decrease)/ increase in provision for impairment of (906) 996
trade receivables
Unrealised foreign exchange differences (2 486) (3 959)
Balance before working capital changes 57 583 110 712
Changes in Working Capital
Decrease/(increase) in inventories 12 733 (16 930)
Increase in trade and other receivables (15 477) (3 718)
(Decrease)/increase in trade and other payables (53 825) 18 044
(Decrease)/Increase in provisions 4 201 (317)
Cash generated from operations 5 215 107 790
Working capital changes had a significant impact on the cash outflow from operating
activities, which decreased to R5.2 million (2017: R107.8 million). Included in the
working capital changes is R 56.6 million material payments to trade creditors related to
prior-year orders driven by the group's extended credit terms. The increase in trade
receivables is directly related to the large volume of invoicing in March, which was not
yet due at the financial year-end.
STATEMENT OF FINANCIAL POSITION
Some of the line items on the statement of financial position that have shown significant
changes when compared to March 2017, have been included in the notes to the financial
information to give some context and explanation to these movements.
NOTES TO THE FINANCIAL INFORMATION
STATEMENT OF COMPLIANCE, BASIS OF PREPARATION
The reviewed provisional condensed consolidated financial statements have been
prepared in accordance with International Financial Reporting Standard, (IAS) 34 Interim
Financial Reporting, the SAICA Financial Reporting Guides, as issued by Accounting
Practices Committee; the financial pronouncements as issued by the Financial Reporting
Standards Council, the requirements of the Companies Act of South Africa and the
Listing Requirements of the JSE Limited. The accounting policies applied in the
preparation of these financial statements are in accordance with International Financial
Reporting Standards and are consistent with those applied in the previous annual
financial statements for the period ended 31 March 2017. The directors take full
responsibility for the preparation of the reviewed provisional condensed consolidated
financial statements.
1. Headline earnings per share
For the year ended 31 March 2018
Year Year
Ended Ended
31 March 2018 31 March 2017
(Reviewed) (Audited)
R'000 R'000
Profit attributable to ordinary shareholders 33 473 67 876
Basic earnings per share (cents) 7.26 14.72
Diluted earnings per share (cents) 7.26 14.72
Reconciliation of headline earnings:
Profit attributable to ordinary shareholders 33 473 67 876
Profit on disposal of property, plant and
equipment 198 (111)
Total tax effect of adjustments (55) 31
Headline earnings attributable to
ordinary shareholders 33 616 67 796
Headline earnings per share (cents) 7.29 14.71
Diluted headline earnings per share (cents) 7.29 14.71
Weighted average number of shares in issue 461 038 321 461 038 3211
Net asset value per share (cents) 65.6 58.4
Tangible net asset value per share (cents) 39.9 32.6
2. Earnings before interest, taxation, depreciation and amortisation (EBITDA)
For the year ended 31 March 2018
Year Year
Ended Ended
31 March 2018 31 March 2017
(Reviewed) (Audited)
R'000 R'000
Operating profit 46 521 100 206
Depreciation and amortisation 14 166 12 876
EBITDA 60 687 113 082
3. Inventories
31 March 31 March
2018 2017
(Reviewed) (Audited)
R'000 R'000
Inventories comprise:
- Raw materials and finished goods 72 273 82 036
- Work in progress 16 003 19 063
88 276 101 099
The current level of inventory is in line with the reduced business activities.
4. Trade and other receivables
31 March 31 March
2018 2017
(Reviewed) (Audited)
R'000 R'000
Trade and other receivables
Trade receivables net of provision 126 029 111 991
Other receivables 14 760 12 413
Total trade and other receivables 140 789 124 404
Trade receivable past due but not impaired 27 702 36 757
The trade receivables past due of R27.7 million (2017: R36.7 million) is an improvement
on the previous year and was largely driven by the group's focus on managing
collections. It must be noted that as at the time of this announcement we have collected
a material amount of the trade receivables past due.
AUDIT REPORT
These provisional condensed consolidated financial statements for the year ended
31 March 2018 have been reviewed by PricewaterhouseCoopers Incorporated, which
expressed an unqualified review conclusion. A copy of the auditor's report is available for
inspection at the company's registered office.
The auditor's report does not necessarily report on all the information contained in these
financial results. Shareholders are therefore advised that, to obtain a full understanding
of the nature of the auditor's engagement, they should obtain a copy of the auditor's
reviewed report together with the accompanying financial information from the issuers
registered office.
PREPARER
These results were prepared by BC Lamprecht CA(SA) under the supervision of EC De Kock FCMA.
GOING CONCERN
The directors have reviewed the group's budget and cash flow forecast for the year to
March 2019. On this basis and considering the group's current financial position, the
directors are satisfied that the group will continue to operate for the foreseeable future
and have adopted a going concern basis in preparing these reviewed provisional financial
results.
DIRECTORATE
The following changes were made to the board of directors with effect from 8th January
2018 when Elvin de Kock was appointed as Chief Financial Officer and director and Burt
Lamprecht resigned from the same position.
On 20 June 2018 Christi Maherry was appointed as an Executive Director and
Rynier van der Watt resigned from the board of directors.
EVENTS SUBSEQUENT TO THE YEAR END
LAWTRUST ACQUISITION
In October 2017 Ansys entered negotiations to acquire 100% of the shares of Law
Trusted Third Party Services (Pty) Ltd (LawTrust), for a purchase consideration of
R108.5 million funded from a combination of debt, cash and Ansys shares. Post year-end
all conditions related to the agreement of sale were met and the effective date of
acquisition was 1 June 2018.
LawTrust is an information technology developer and provider of cyber/information
security solutions. Its solutions include:
- Authentication products and services used to verify the authenticity of digital
identities and counterparty systems in transactions
- Encryption of data sent and received over secure online environments with secure
socket layer (SSL) certificates, as well as the encryption of information sent via email
- Digital signatures to enable the sending and receiving of sensitive documents
- Biometrics solutions that utilise a variety of technologies for identity management.
These include fingerprint and facial recognition technologies.
LawTrust was one of the first accredited authentication service providers in the country,
and the only accredited private company to provide advanced electronic signature
solutions. It is legally qualified to be a certificate authority and has a trust centre which
can create, issue and revoke advanced digital certificates. LawTrust owns and develops
its own intellectual property which it uses in combination with third party solutions to
deliver services to its clients.
The acquisition of LawTrust will enhance Ansys's existing cyber security business by
introducing strategically aligned products and providing access to new markets which, in
turn will provide increased annuity revenue. The incorporation of LawTrust' s technical
team into the Ansys team will allow the company to develop and provide an expanded
range of solutions to a combined client base.
ANSYS REBRAND
Over the past 31 years, Ansys has built a strong reputation for the design,
manufacturing and supply of technology-based solutions used in some of the world's
toughest environments. However, each segment had its own established brand in its
individual market, which limited the group's ability to cross-sell across sectors as well as
to enter new sectors.
Following extensive engagements with key stakeholders, including customers,
employees and the media, the brand identity of Ansys has been refreshed into a single
core brand and the company's name has been changed to Etion, which represents
energy and action.
By establishing a single core brand, the group aims to change the understanding of its
market positioning from that of a provider of individual products and services in specific
sectors to that of a provider of integrated digital technology solutions across multiple
sectors. This positioning will improve the organisation's ability to market its capacity to
build customised digital technology solutions to meet the specific needs of customers in
any sector, including the sectors in which it already operates. It will also facilitate cross-
selling, both within the group's business units and across them, as well as a better
understanding of the features and benefits of the greater solutions offering. We are
already starting to experience a new energy in the organisation following on the recent
rebranding process.
APPRECIATION STATEMENT
The directors would like to thank our clients, suppliers, business partners and all other
stakeholders for their continued support and for the confidence they have shown in us
over the past year. Without your support the past year would not have been successful.
By order of the board
Teddy Daka Elvin De Kock
Chief Executive Officer Chief Financial Officer
27 June 2018
Directors
CP Bester; T Daka (CEO)*; Dr. SJ Khoza; EC De Kock (CFO)*; N Medupe;
NS Mjoli-Mncube; SP Mzimela, C Maherry*
*Executive
Company secretary
Fusion Secretarial Services (Pty) Ltd
Telephone: +27 12 749 1800
Facsimile: +27 12 665 2767
Website: www.ansys.co.za
Registered office: 85 Regency Drive, Route 21 Corporate Park, Irene, Pretoria 0157
(PO Box 95361, Waterkloof, Pretoria)
Designated adviser: Exchange Sponsors 2008 (Pty) Ltd
Transfer secretaries: Computershare Investor Services (Pty) Ltd
Date: 27/06/2018 07:46:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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