Invicta Holdings Limited · JSE:IVT
Invicta — FY2022 Earnings Presentation
54 slides from Invicta's earnings presentation, June 2022
Slide 1: 2022 Financial Results for the Year Ended 31 March
Invicta HOLDINGS LIMITED 2022 FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH Firmly rooted in South Africa and strategically geared for growth
Slide 2: Disclaimer
Disclaimer UMdddddddddddddddddddddddddddddddddddda The information contained in this presentation may differ from the financial information pertaining to the audited financial results of Invicta Holdings Limited (Invicta), as published on SENS in terms of the JSE Listings Requirements. Any pro forma
Slide 3: Table of Contents
Nelco Wel Table of Contents Page 02 Welcome & Introduction Page 06 Group Financial Overview Page 20 Operational Segment Review Page 48 Key Developments & Transactions Page 51 Prospects & Strategy wwwiinvictaholdings.co.za Introduction Welcome to our Financial Results Presentation | UM ddidsdidddiddd
Slide 4: The Year at a Glance
UM dddddididididéiddddiddidéddda Introduction The Year at a Glance Notwithstanding the challenging operating environment, we are extremely proud of how our businesses performed during the year Closed the Kian Ann transaction Disposed the Samrand property Concluded the KMP acquisition in January 2022
Slide 5: Reassessment of Reportable Operating Segments
WM dda Reassessment of Reportable Operating Segments Due to the corporate actions over the past two years, we have re-assessed our reportable operating segments Our new segments are as follows: Replacement parts, services and solutions: earth-moving equipment (“RPE”) Replacement parts, services and
Slide 6: Group Financial Overview
GROUP) FINANCIAL /~ OVERVIEW
Slide 7: Group Sustainable Operating Profit 2022 vs 2021
UM ddddddddddddddddddddddddddddddddddddddddddde Group Sustainable Operating Profit 2022 vs 2021 Operating profit before net finance income on financing transactions and forex as reported Add back: Retrenchment costs related to continuing operations Add back: Goodwill impairment Deduct: Loan impairme
Slide 8: Kian Ann Group Contribution to Sustainable Headline Earnings
UMdddddddddddddddddddddddddddddddddddddddidda Kian Ann Group Contribution to Sustainable Headline Earnings 2022 vs 2021 2022 2021 R'000 R'000 Profit/(loss) from discontinued operations 385 330 (12 357) Add: Equity accounted earnings 101 887 - Add back: IFRS 5 impairment of disposal group - 76 864 Ad
Slide 9: Group Sustainable Headline Earnings
Group Sustainable Headline Earnings 2022 vs 2021 UM Mddddddddddddddddddddddddddddddddidddddddde i R'000 R'000 Headline earnings 356 285 341152 Adjusted for the following net of tax: F Add back: Fair value loss on call and put options 17 235 14 853 i Deduct: Loan impairment reversal (5 178) (6 223) 3
Slide 10: Sustainable Results at a Glance
Ud dddddddddddddddddddddddddddddddiddide TO} Sustainable Results at a Glance nt Operating Profit 113% Before net finance income and forex* HEPS* INVICTA C) * 34% to 351 cents NAV per share 1 5,6% to R37.65 *Adjusted sustainable
Slide 11: Statement of Comprehensive Income (Extract)
Uddin LO} Statement of Comprehensive Income (Extract) R'000 R'000 % Continuing operations Revenue 7 188 991 6 251 484 15% Cost of sales (4981775) (4259 699) 17% Gross profit 2207 216 1991 785 11% 31% 32% Selling, administration and distribution costs (1536568) (1406 610) 9% -21% -23% Operating profi
Slide 12: Statement of Comprehensive Income (Extract)
Uddin LO} Statement of Comprehensive Income (Extract) 2022 2021 Variance R'000 R'000 % Interest received 26 436 53 482 -51% Dividends received é 2230 >100% Finance cost (106 029) (194 526) -45% Share of profits from associates 6378 3 862 65% Share of profits from joint venture 101 887 e >100% Profit
Slide 13: Statement of Financial Position: Assets
ULM ddddddddddddddddddddddddddddddddddddd Statement of Financial Position: in fl Assets R'000 R'000 Assets Property, plant and equipment (incl invest prop) 1164779 1003 772 IFRS16 - Right of use asset 220751 245 782 Financial investments and other financial assets 11.008 7177 Investments in associat
Slide 14: Inventory and Related Provisions
WMdddddddddddddddddddddeddddddddddiddidda Inventory and Related Provisions Gross value Provision Net value RPE ZAR R'000 R'000 R'000 Mar-22 403 292 25 652 377 640 Sep-21 169 412 10618 158 794 Mar-21 165 087 12 050 153 037 RPI ZAR Mar-22 1979 604 327 758 1651 846 Sep-21 1862 673 344 318 1518 355 Mar-
Slide 15: Statement of Financial Position: Assets
“ddd dda Statement of Financial Position: Assets R'000 R'000 Assets Property, plant and equipment (incl invest prop) 1164779 1003 772 IFRS16 - Right of use asset 220 751 245 782 Financial investments and other financial assets 11.008 7177 Investments in associates 50 636 8059 g Investment in joint v
Slide 16: Statement of Financial Position: Equity & Liabilities
WM dddddddddddddddddddddddddddddddddddiddida rO}} Statement of Financial Position: nl Equity & Liabilities R'000 R'000 Shareholders’ equity 4692 685 4726 088 Long-term borrowings 976 959 737 634 Finance lease liabilities 22 201 46 286 re IFRS 16 - Lease liabilities 201 457 237 632 g Deferred taxatio
Slide 17: Total Net-interest Bearing Debt
Uddddddddddddddddddddddddddddddddddddddddéddde Total Net-interest Bearing Debt R000 R'000 Borrowings and finance lease liabilities (non-current) 999 160 783 920 s Borrowings and finance lease liabilities (current) 199555 618 753 q Cash (582 354) (896 900) iQ Overdraft 53 379 253 926 Net debt excludi
Slide 18: Bank Covenants
Bank Covenants WM dddddiddiddddidddddddddddddedddddddddddddda | Bank Covenants Requirement Achieved / Net Debt to EBITDA Ratio 3.0< 1.16 Interest Cover Ratio 3.5> 10.77 18
Slide 19: Cash Flow Statement
“ddd ddd ddd 31March 2022 31 March 2021 Cash Flow Statement R’000 R’000 Cash flows from operating activities Cash generated from operations 978121 1856 936 Net finance costs (77552) (141 686) Net dividends paid (132 096) (73 131) Tax paid (183 489) (425 521) Net cash inflow from operating activities
Slide 20: Operational Segment Review
Next _ OPERATIONAL SEGMENT / REVIEW \ ~
Slide 21: RPE
Next RPE Ren 9
Slide 22: Results Summary
LM Results Summary Revenue (R’m) Sustainable Operating Profit Before Forex (R’m) 600 = 0 = 450 = 538 300 = oe 150 = Be a Os waa) waaizt wan 2022 wan zr20 wan 221 wan 2022 Net Operating Assets (R’m) Return on Net Operating Assets (%) 500 360 = 5 = 210 250 180 = 125 = 90 = : On wa 2020 yan 2021 an 202
Slide 23: Results Summary
UL Results Summary Sustainable Operating Profit Before Forex (R’m) 80 69 67 — 60 2 a 40 : 20 : 0 3 Segmental Operating Profit IFRS 16 Interest Paid Sustainable Operating Profit =
Slide 24: Revenue Contribution by Revenue Stream
F MMM ddddddddddddddédddd (O} Revenue Contribution I by Revenue Stream 100% [ ) Earthmoving @ Agriculture & Forestry ie) Parts 24
Slide 25: Outlook
Uddddddddddddddddddddddddddddddddddddde Outlook ¢ Market demand improving ¢ Supply challenges related to global demand and availability e Continuous good cash generation ¢ Working capital levels have increased to accommodate erratic supply ¢ Performing beyond expectations in Construction & Agricultu
Slide 26: Kian Ann Group
Next KIAN ANN GROUP
Slide 27: Results Summary
Wddddddidddsdddddddddddddddddddddddddddddda Results Summary Revenue (S$’000) Sustainable Operating Profit Before Forex (S$’000) 300000 30000 = 225000 22500 = 150000 = 15000 = 75000 7500 = 0 0. azo waa 2021 waa 2022 wan zo 2021 na zaz2 Net Operating Assets (S$'000) Return on Net Operating Assets (2%)
Slide 28: Results Summary
Udddddddddddddddddddddddddddddddddddd ddd Results Summary Sustainable Operating Profit Before Forex (SS’000) 70 000 58538 52500 3 35 000 17500 3 i 0 i Operating Profit FV Loss on Options Sustainable Operating Profit 2 Remeasurement Gain PPA Amortization less Taxes 2
Slide 29: Kian Ann Group Revenue Contribution
Kian Ann Group Z UMM ddd (O} Revenue Contribution I 7% 10% 79% 85% [ ) Heavy Machinery Automotive [ ) General Trading Mining [ ) Agriculture & Forestry e Construction 29
Slide 30: Kian Ann Group Business Outlook
Kian Ann Group Business Outlook UMdddddiddddddididdddddddcddddddddddddddddda In general, outlook for Kian Ann Group (KAG) will remain challenging as business activities are affected by the ongoing COVID 19 pandemic and Russia-Ukraine conflict. The sharp rise of energy & steel prices and shortage of
Slide 31: RPI
Slide 32: Results Summary
UMdeddddddddddddddddddddddddddddddiddd I Results Summary Revenue (R'm) Sustainable Operating Profit Before Forex (R’m) 6000 » 300 = 4500 205 tT i 13% 84% 3000 » 160 1500 = Bs 0 Oe wae use 2021 unezz wat 020 wne2021 wne022 Net Operating Assets (R'm) Return on Net Operating Assets (%) 2500 = 160 = 187
Slide 33: Results Summary
WIMMMMILLILULL LLL ddd Results Summary Sustainable Operating Profit Before Forex (R’m) 332 350 7 247 250 as =z 150 50 0 Segmental Operating Profit, IFRS 16 Interest Paid Profit on Sale of Sustainable Operating Profit Business/Investment = Invicta Holdings Limited | Final Results 33
Slide 34: RPI Revenue Contribution
RPI UMdddddddddddddddddddddddddddddddddddddddddddddiddda (O} Revenue Contribution I 82% 60% [ ) Consumables Engineering e South Africa |) Africa 34
Slide 35: RPI Revenue Contribution by Sector
RPI CMddddddddddddeddddddddddddddddddddddddddddiddda (O} Revenue Contribution I By Sector Mining 28% Oil & Gas 2% Projects & Consultanats 3% Parastatals 1% Industry 17% Other 18% Food & Beverage 7% Agriculture 10% Cash Sales 8% Construction Automotive & Transport 2% 4% 35
Slide 36: Business Outlook
UM dddddddddddddddddddddddddiddidda Business Outlook ° We had a slow start to the new financial year mainly as a result of the flooding in KZN that impacted shipments destined for docking in the Durban harbour ¢ Shipping delays are expected to normalise by the end of the financial year, whereafter s
Slide 37: RPA
Slide 38: Results Summary
VUMLLMMMILLL LLL LLL ddd Results Summary Revenue (R'm) Sustainable Operating Profit Before Forex (R’m) 600 100 = tT tT =— 19,2% a} 18,9% 300 50 = 150 = Ba 0 0. wa z020 waa 2021 waa 2022 wan ztz0 na 2021 na zaz2 Net Operating Assets (R’m) Return on Net Operating Assets (26) 300 = 400 = 25 = 300 = 150
Slide 39: Results Summary
Results Summary 100 75 50 25 Uddddddddddddddddddddddddddddddddddddddéddide Sustainable Operating Profit Before Forex (R’m) 94 91 a 3 Segmental Operating Profit IFRS 16 Interest Paid Sustainable Operating Profit i 39
Slide 40: RPA Revenue Contribution
RPA RPA Revenue Contribution 98% [ ) Consumables @ Engineering UM bddddidddddddeddeddddedddddddcdeddddddddddda © 37% 63% [ ) South Africa Europe 40
Slide 41: RPA Revenue Contribution by Sector
RPA UMddddddddddddddddddddddddddddddddddddddddddiddddddidda 0) Revenue Contribution I By Sector Construction 1% Industry 2% Mining 2% Automotive & Transport 85% Agriculture 10% 41
Slide 42: Business Outlook
UM dddiddsdddddddddddddddddddddddddddddddddédid Business Outlook © The restructure of the RPA businesses in South Africa created a sound base to optimise synergies for growth in the 2022/2023 financial year. © Shipping delays are expected to normalise by the end of the financial year whereafter stoc
Slide 43: CE
Slide 44: Results Summary
UM dddddddddddddddddddddddddddddddddddddde Results Summary 1200 900 600 300 600 450 300 150 Sustainable Operating Profit Before Forex (R’m) Net Operating Assets (R'm) Return on Net Operating Assets (%)
Slide 45: Results Summary
Lt Results Summary Sustainable Operating Profit Before Forex (R’m) 120 . 113 12 g — 2 1 3 90 i 60 30 i 9 F Segmental Operating Profit IFRS 16 Interest Paid Sustainable Operating Profit 3
Slide 46: CE Revenue Contribution
CE “Md ddd © Revenue Contribution I 28% 66% 79% [ ) Earthmoving Materials Handling e Equipment Parts [ ) Rental [ ) Service 46
Slide 47: CE Business Outlook
CE UMMM ddd ddddddddddiddddide O Business Outlook e Unit demand in construction lowest in 10 years * Challenges relate to long lead times, erratic supply, freight increases & shipping space ° Demand for spare parts increasing because machine life has been extended; price increases and availability e
Slide 48: Key Developments and Transactions
Slide 49: Key Developments and Transactions: KAG Structure
ey Developme y Y I nsaction MM ddd KAG Structure The Transaction Invicta together with our partner in the Chinese manufacturing business entered into a series of transactions to unlock value. The restructuring of the business was as follows: Before Transaction ¢ 100% shareholding in Kian Ann Group w
Slide 50: Key Developments and Transactions: Acquisition of KMP
Key opment d Transaction UMMM ddddddddddddddiide Acquisition of KMP The Transaction On the 1st of January this year Invicta acquired KMP for £12.7 million. ¢ KMP has its head office in Chertsey England and offices in Houston and Miami in the USA. * The KMP brand is widely recognized and is a highly
Slide 51: Prospects and Strategy
Slide 52: Looking Forward
Looking Forward Identifying, evaluating and securing appropriate acquisitions Managing the supply chain challenges e FOCUS Managing working capital oe ; ia and optimising operations Growing BMG China Integrating KMP into the group
Slide 53: Looking Forward
LOOKING FORWARD,
Slide 54: Thank you for your attendance & participation
Thank you for your attendance & participation www.invictaholdings.co.za <a | < For any further Investor Relations questions please contact: Te if J Marlize Keyter (Keyter Rech Investor Solutions) mkeyter@kris.co fas 12783 701 2021 or Lebohang Mpumiwana (Invicta Holdings) lebo@invictaholdings.co.za A