Invicta Holdings Limited · JSE:IVT

Invicta — JSE Showcase (August 2014)

33 slides from Invicta's conference presentation, Aug 5, 2014

  1. Slide 1: Presentation to Investors: JSE Showcase

    PRESENTATION TO INVESTORS : JSE SHOWCASE 5 AUGUST 2014 PRESENTER: CHARLES WALTERS (CEO ELECT)

  2. Slide 2: Core Business: BMG (Bearing Man Group)

    CORE BUSINESS  BMG (Bearing Man Group)  Leading distributor of engineering components & technical services in Africa  Over 120 branches Southern Africa  Bearings, Seals, Chains, Couplings  Fasteners, Tools  Drives, Motors, Belting  Filtration, Hydraulics, Lubrication  Field service, Con Mon

  3. Slide 3: Core Business: CEG (Capital Equipment Group)

    CORE BUSINESS CEG (Capital Equipment Group)  Northmec (Agric Machinery)  New Holland (Agric Machinery)  CSE (Earthmoving Machinery)  Doosan (Earthmoving Machinery)  HPE (Hyundai Earthmoving)  Criterion (Forklifts)  ESP (Parts)  200 Dedicated Outlets across SA

  4. Slide 4: Core Business: Kian Ann Engineering (Singapore)

    CORE BUSINESS  Kian Ann Engineering (Singapore) (CEG)  One of the world's largest independent distributors of  heavy machinery parts and  diesel engine components for the earthmoving and heavy truck industries  Annual Revenue R1.1 bn+  Outlets in Singapore, Indonesia, China, Malaysia

  5. Slide 5: Core Business: BSG (Building Supplies)

    CORE BUSINESS  BSG (Building Supplies)  Tiletoria  MacNeil Distributors (from 1 Oct 2012)  One Owl Distributors  Annual Revenue: R1.3 bn+  15 + outlets in SA  Big growth potential

  6. Slide 6: Revenue contribution 2014: Business Unit

    Revenue contribution 2014: Business Unit Bldg Supplies 13% BMG 38% CEG 49%

  7. Slide 7: Revenue contribution 2014: SA and Rest of World

    Revenue contribution 2014: SA and Rest of World Rest of World 22% South Africa 78%

  8. Slide 8: March 2014 - Results Highlights

    MARCH 2014 - RESULTS HIGHLIGHTS  Revenue up 38% to R10.5bn  Operating Profit up 18% to R1.04bn  Cash generated by operations R715m  EPS down 17% to 788c  Normalised EPS up 7% to 788c  HEPS down 14% to 765c  Normalised HEPS up 15% to 765c  DPS up 7% to 287c  Dividend cover 2.75x

  9. Slide 9: 2014 Results Highlights

    2014 RESULTS HIGHLIGHTS  R2.9bn growth in revenue  R610m from acquisitions made in the current year  Acquisition of HPE Africa  Hyundai Earthmoving distributor in SA  Labour unrest, subdued mining and manufacturing in SA hampered BMG  Agricultural industry sales down by 6%  Trading conditions

  10. Slide 10: Turnover (Rm)

    Turnover (Rm) 12 000 10 000 10 yr CAGR = 18% p.a. 8 000 6 000 4 000 2 000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

  11. Slide 11: Operating Profit (Rm)

    Operating Profit (Rm) 1 200 1 000 10 yr CAGR = 16% p.a. 800 600 400 200 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

  12. Slide 12: EPS

    EPS 1 000 900 800 10 yr CAGR in EPS = 17% p.a. 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EPS One-off

  13. Slide 13: EPS and DPS

    EPS and DPS 1 000 900 800 10 yr CAGR in DPS = 16% p.a. 700 600 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 EPS One-off DPS

  14. Slide 14: EPS

    EPS 1 200 1 000 -17% 800 +7% 600 400 200 0 2010 2011 2012 2013 2014 EPS One-off

  15. Slide 15: Segmental Operating Profit (Rm)

    Segmental Operating Profit (Rm) 1 200 19 1 000 67 116 800 39 484 14 600 27 339 37 247 400 158 123 473 200 371 390 293 320 0 2010 2011 2012 2013 2014 -31 -200 BMG CEG BSG Other

  16. Slide 16: BMG Bearing Man Group

    BMG BEARING MAN GROUP

  17. Slide 17: BMG Results Summary

    BMG Results Summary 31 Mar 2014 Rm 31 Mar 14 vs PY Sales 3,955 +15% Operating Profit 473 +21% OP% 12.0% 11.4% Ave NOA 1,438 +13% RoNOA 32.9% 30.8%

  18. Slide 18: Sales

    Sales 4 500 4 000 3 955 3 500 3 425 3 000 2 500 2 742 2 395 2 000 2 056 1 928 1 500 1 550 1 000 500 0 2008 2009 2010 2011 2012 2013 2014

  19. Slide 19: Operating Profit

    Operating Profit 500 450 473 400 390 350 371 300 319 320 293 250 200 220 150 100 50 0 2008 2009 2010 2011 2012 2013 2014

  20. Slide 20: Slide 20

  21. Slide 21: CEG Results Summary

    CEG Results Summary 31 Mar 2014 Rm 31 Mar 14 vs PY Sales 5,122 +46% Operating Profit 484 +43% OP% 9.4% 9.7% Ave NOA 1,497 +87% RoNOA% 32.3% 42.3%

  22. Slide 22: Turnover

    Turnover 31 Mar 2014 5 500 5 000 5 122 4 500 4 000 3 500 3 503 3 000 2 500 2 549 2 000 2 254 1 877 1 500 1 700 1 749 1 000 500 0 2008 2009 2010 2011 2012 2013 2014

  23. Slide 23: Operating Profit

    Operating Profit 31 Mar 2014 500 484 450 400 350 339 300 250 247 200 150 156 157 100 121 123 50 0 2008 2009 2010 2011 2012 2013 2014

  24. Slide 24: Building Supply Group

    BUILDING SUPPLY GROUP DIVISION OF INVICTA HOLDINGS

  25. Slide 25: BSG Results Summary

    BSG Results Summary 31 Mar 2014 Rm 31 Mar 14 vs PY Sales 1,383 +121% Operating Profit 67 +73% OP% 4.8% 6.2% Ave NOA 207 - RoNOA 32.4% -

  26. Slide 26: Sales

    Sales 31 Mar 2014 2 000 1 500 1 383 1 000 500 625 0 2013 2014

  27. Slide 27: Operating Profit

    Operating Profit 31 Mar 2014 80 70 67 60 50 40 39 30 20 10 0 2013 2014

  28. Slide 28: OP %

    OP % 31 Mar 2014 7% 6.2% 6% 5% 4.8% 4% 2013 2014

  29. Slide 29: Invicta Share Price at March

    INVICTA SHARE PRICE at 31 Mar 14 000 11 000 12 000 11 530 CAGR SINCE 2000 = 32% p.a. 10 200 Cents per share 10 000 8 000 6 500 6 000 4 350 4 000 2 750 2 550 2 880 2 000 2 000 1 550 1 850 935 295 310 550 225 -

  30. Slide 30: Shareholding March 2014

    SHAREHOLDING MAR 2014 CH Wiese * 36.4% Staff & Treasury (Chairman) Public & Fin Institutions 3% Directors 36% Sherrell family 10.9% 61% (LR Sherrell) * A Goldstone (CEO) 5.7% D Samuels * 4.8% 75.6 million shares in issue 1.5 million thereof held in treasury Other exec directors 3.0% * = non-executiv

  31. Slide 31: Invicta Group Profit Drivers

    INVICTA GROUP PROFIT DRIVERS  General mining and industrial activity (BMG)  Agricultural activity (Northmec & New Holland)  Construction activity (CSE, Doosan SA & HPE)  Warehousing (Criterion Equipment)  Building and Renovations (BSG)  Global replacement spares market (Kian Ann)

  32. Slide 32: Prospects

    PROSPECTS  Aim to grow EPS at CPI plus 10% over the long term  Last 13 financial yrs = 32% pa CAGR  Long term aggressive growth, focus on generating strong cash flows  Acquisitions and organic growth  Looking for acquisitions - will stay in core businesses  Dividend cover policy stays at 3.5 x

  33. Slide 33: Thank You & Questions

    THANK YOU & QUESTIONS THANK YOU

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