Slide 1: Reviewed Results for Year Ended 28 February 2017
REVIEWED RESULTS FOR YEAR ENDED 28 FEBRUARY 2017
Slide 2: Table of Contents
TABLE OF CONTENTS Result highlights 3 Group structure and segmental overview 5 Financial performance 14 Strategy & prospects 19 2
Slide 3: Result Highlights
RESULT HIGHLIGHTS
Slide 4: Highlights for the Year
HIGHLIGHTS FOR THE YEAR • Revenue increased by 22% to R188.7 million compared to R154.2 million to 29 February 2016. • Profit from continuing operations R40.0 million compared to R8.3 million to 29 February 2016 • EPS • 28 February 2017 – 30.1c • 29 February 2016 – 6.2c • HPS • 28 February 2017 – 19
Slide 5: Group Structure and Segmental Overview
GROUP STRUCTURE AND SEGMENTAL OVERVIEW
Slide 6: Group Structure
GROUP STRUCTURE Fund Asset Investment Private Private management administration banking clients equity 6
Slide 7: Segmental Developments: Fund Management
SEGMENTAL DEVELOPMENTS FUND MANAGEMENT • Institutional fund management focus. • Investments included in this segment: • Vunani Fund Managers – R15.9b AUM at 28 Feb 2017 (Feb ‘16: R15.1b). • Purpose Vunani - $33.5m AUM at 28 Feb 2017 (Feb ‘16: $17.8m). • Segment results • Revenue of R64.5m (Feb ‘16:
Slide 8: Segmental Developments (Cont.): Asset Administration
SEGMENTAL DEVELOPMENTS (CONT.) ASSET ADMINISTRATION • Acquired an additional 30% in Fairheads. • Good progress is being made in winning good quality mandates. • Assets under administration of R6.2b (29 Feb 2016: R7.8b) • Segment results • Equity accounted earnings for the period of R5.7m (R9.7m to F
Slide 9: Segmental Developments (Cont.): Investment Banking
SEGMENTAL DEVELOPMENTS (CONT.) INVESTMENT BANKING Institutional securities Advisory broking services Equities Vunani Securities JSE Sponsor M&A Fixed Interest Bond Origination Vunani Capital Markets 9
Slide 10: Segmental Developments (Cont.): Investment Banking
SEGMENTAL DEVELOPMENTS (CONT.) INVESTMENT BANKING • Institutional securities broking and advisory services • The focus continues to be on revenue growth through the expansion of product offering and the existing client base. • Segmental result • Revenue of R73.2m (Feb ‘16: R70.8m) • Segment profit o
Slide 11: Segmental Developments (Cont.): Private Equity
SEGMENTAL DEVELOPMENTS (CONT.) PRIVATE EQUITY • Focus on mining, property and African investments. • Private equity initiatives explored with well established partners including Anglo American, Bidvest and Mion Holdings. • Segment results • Revenue of R23.6m (Feb ‘16: R10.1m) • Segment profit R15.2m
Slide 12: Segmental Developments (Cont.): Private Wealth and Investments
SEGMENTAL DEVELOPMENTS (CONT.) PRIVATE WEALTH AND INVESTMENTS • Segment restructured during the year with the retail securities broking operation sold. • Main activity to provide wealth and investment products to high net worth individuals. • Segment results • Revenue of R4.4m (Feb 16: R12.8m) • Seg
Slide 13: Financial Performance
FINANCIAL PERFORMANCE
Slide 14: Revenue
REVENUE Feb 2017 Feb 2016 2% 8% 12% 34% 39% 46% 39% 7% 13% Fund management Fund management Private equity Private equity Investment banking Investment banking Private wealth and investments Asset administration Private wealth and investments 14
Slide 15: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME • Other income • Includes the fair value of a deferred payment. Historically, included amortisation of deferred income, but this has been fully amortised • Investment income • JSE – R1.1m • Bsi – R0.4m • Profit on disposal of assets • Disposal of retail stockbroking
Slide 16: Statement of Comprehensive Income (Cont.)
STATEMENT OF COMPREHENSIVE INCOME (CONT.) • Equity accounted earnings • Includes Vunani’s share of post-tax earnings for Fairheads and Workforce. • Fairheads – R5.7m (Feb ‘16: R9.7m) • Workforce – R17.7m (Feb ‘16: R21.8m) • Operating expenses • Increased by 6% compared to Feb ‘16 • Major costs inclu
Slide 17: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION • Goodwill • Increased by R105.6m on consolidation of Fairheads • Intangible assets • Increased by R98.6m on consolidation of Fairheads • Other investments • Sale of a small portion of investment holdings • Share capitalisation issue award (cash alternative) • Stated
Slide 18: Strategy & Prospects
STRATEGY & PROSPECTS
Slide 19: Strategy & Prospects
STRATEGY & PROSPECTS • Broaden the product offering on the existing platform. • Manage margins and costs. • Intergroup collaboration critical. • Focus efforts on organic growth within the existing businesses. • Employment of high-calibre management and staff • Increase presence in property sector. •
Slide 20: Thank You
THANK YOU
Slide 21: Contact Us
JOHANNESBURG Vunani Capital Vunani House, Vunani Office Park 151 Katherine Street, Sandown Sandton 2196 Office: +27 (0) 11 263 9500 Email: info@vunanilimited.co.za CAPE TOWN Vunani Capital No. 9 Long Street– 3rd Floor Cnr Long & Riebeek Streets Cape Town, South Africa 8001 Telephone: +27 (0) 21 481