Invicta Holdings Limited · JSE:IVT

Invicta — RMB Morgan Stanley Off-Piste Presentation 2016

35 slides from Invicta's conference presentation, September 2016

  1. Slide 1: RMB Morgan Stanley Off-Piste Presentation

    RMB MORGAN STANLEY OFF-PISTE PRESENTATION September 2016

  2. Slide 2: Group profile

    Group profile • Invicta is an investment holding company, managing assets of R15 billion at 31 March 2016 • A leading player in the sub-Saharan region in industrial equip & parts, capital equip & parts, building supplies • A significant player in SE Asia in equipment and automotive parts Capital Equ

  3. Slide 3: Shareholding at 31 March 2016

    Shareholding at 31 March 2016 Public 40% Wiese family 38% Sherrell family 11% Treasury 1% Management & Staff 1% Exec Directors 2% Samuels family Goldstone family 3% 4%

  4. Slide 4: Invicta's history

    Invicta’s history 2016 Sibuyile, Hansen, Hyflo 2015 SA Tool 2014 Brands 4 Africa, Hyundai Power Equipment 2013 OMSA, Mandirk, MacNeil, Kian Ann 2012 ESP 2010 Criterion 2009 Doosan SA, Goldquest 2008 Tiletoria, OST 2007 New Holland 2001 BMG - 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 Mark

  5. Slide 5: Group structure

    Group structure BBBEE & Invicta SA Non - SA Staff Trusts Holdings 25% 75% 100% 100% 100% 100% Invicta Invicta Invicta Invicta Offshore Invicta SA Properties Treasury Finance Holdings 100% 100% 60% 100% 100% Invicta African Invicta Asian CEG ESG BSG Holdings Holdings BMG Northmec Mandirk N Holland Au

  6. Slide 6: Capital Equipment Group (SA)

    Capital Equipment Group (SA)  Northmec (Agric Machinery)  New Holland (Agric Machinery)  CSE (Earthmoving Machinery)  Doosan (Earthmoving Machinery)  HPE (Hyundai Earthmoving)  Criterion (Forklifts)  ESP (Parts)  > 200 outlets across SA SA

  7. Slide 7: Sales analysis

    Sales analysis 31 March 2016 34% (33%) 44% (42%) 4% (4%) 18% (21%) Agriculture Equip & Parts Construction Equip & Parts Logistics Aftermarket parts 2016 (2015)

  8. Slide 8: Management structure

    Management structure CEO Tony Sinclair New Northmec CSE Doosan HPE ESP Criterion Holland Managing Managing Managing Managing Managing Managing Managing Director Director Director Director Director Director Director Johan Peter Brenton Chris Alex Andrew Brenton van der Merwe Askew Kemp Whitehead Ackr

  9. Slide 9: Capital Equipment (SE Asia)

    Capital Equipment (SE Asia)  Kian Ann Engineering  One of the world's largest independent distributors of equipment spare parts  HQ in Singapore  Subsidiaries in Indonesia, China, Canada  Associates in UK, Myanmar, India  Kian Chue Hwa Industries  One of Asia’s largest independent distributor

  10. Slide 10: Sales analysis

    Sales analysis 31 March 2016 6% 3% 2% 12% 57% 20% SE Asia Other Asia EU/Russia/ME ANZ Americas Africa 2016

  11. Slide 11: Management structure

    Management structure Managing Director Loy Soo Chew KCHI HHI API AT SW NAT

  12. Slide 12: Engineering Solutions Group

    Engineering Solutions Group • BMG (Bearing Man Group) • Engineering components & technical services • 168 branches • Bearings, Seals, PT, Tools, Fasteners • Drives, Motors, Belting, Field Services • Filtration, Hydraulics, Lubrication, Pneumatics, Technical Resources • OMSA – integrated into BMG • H

  13. Slide 13: Revenue analysis

    Revenue analysis 31 March 2016 Africa 11% Engineering 35% Consumables 65% South Africa 89% Strategy of market differentiation by: • complementing product distribution • African revenue growing as a % of with technical expertise BMG revenues • enhanced through the acquisitions • Recent acquisitions h

  14. Slide 14: Management structure

    Management structure BMG Mandirk Group Autobax Hyflo (Bearing Man Group) Managing Director Managing Director Managing Director Managing Director Gavin Pelser Gavin Hall John Black Emil Berning

  15. Slide 15: Building Supplies Group

    Building Supplies Group  Tiletoria  MacNeil Distributors  Brands 4 Africa  15 outlets in SA

  16. Slide 16: Management structure

    Management structure CEO Neil Malherbe MacNeil Tiletoria B4A Managing Director Managing Director Managing Director Terry Uys Patrick Thonissen Antony Wannell

  17. Slide 17: Year to March 2016 at a glance

    Year to March 2016 at a glance Revenue EBITDA 11% 2% R10,636m R1,013m Operating Profit Attributable earnings 17% R846m 28% R419m Earnings per share Cash generated by operations 47% 391 cents 39% R594m NAV per share Total dividend per share 4 486 cents 28% 142 cents 9%

  18. Slide 18: Year to March 2016 at a glance

    Year to March 2016 at a glance  The markets in which Invicta operates saw difficult trading conditions:  Mining & construction: Dramatically weaker in Africa and South East Asia  Agriculture: Severely impacted by worst El Niño drought on record  Industrial & manufacturing: Deterioration in activ

  19. Slide 19: Revenue

    Revenue 12 000 10 465 10 460 10 636 5-yr CAGR = 19% 10 000 7 558 8 000 5 336 5 190 5 311 R’million 5 599 6 000 4 044 4 000 3 036 5 129 5 270 5 325 2 000 3 514 2 563 - MAR 2012 MAR 2013 MAR 2014 MAR 2015 MAR 2016 1st Half 2nd Half

  20. Slide 20: Revenue contribution by segment

    Revenue contribution by segment (excluding Group segment) R’million 12 000 10 465 10 455 10 620 10 000 1 388 1 639 1 837 7 558 17% (16%) 8 000 630 3 955 43% (44%) 5 599 4 209 4 299 6 000 308 3 425 40% (40%) 4 000 2 742 5 122 4 607 4 484 2 000 3 503 2 549 - CEG ESG BSG MAR MAR MAR MAR MAR 2012 2013 2

  21. Slide 21: Revenue contribution by region

    Revenue contribution by region 3% (3%) 9% (9%) 11% (12%) 77% (76%) South Africa Africa Asia Other 2016 (2015)

  22. Slide 22: Revenue contribution by sector

    Revenue contribution by sector 19% 29% 14% 15% 23% Construction Agriculture & Forestry Manufacturing & Industry Mining General Trading 2016

  23. Slide 23: Operating profit

    Operating profit Operating profit (R’m) Operating margin (%) 1 200 5-yr CAGR = 11% 1 043 10.7% 1 014 10.0% 1 000 884 69 9.3%* 9.0%* 846 34 800 179 7.6%* 550 11.2% 601 518 9.6% 10.3% 390 10.0% 600 7.4% 390 340 400 493 10.2% 200 427 422 9.0% 9.6% 7.9% 8.1% 315 261 - MAR MAR MAR MAR MAR MAR MAR MAR MAR

  24. Slide 24: Operating profit contribution by segment

    Operating profit contribution by segment (excluding Group segment) R’million 1 200 1 043 1 024 1 000 67 87 843 9% (8%) 768 800 75 43% (44%) 632 39 473 499 14 48% (48%) 600 406 390 371 400 484 457 200 362 339 247 - CEG ESG BSG MAR MAR MAR MAR MAR 2012 2013 2014 2015 2016 2016 (2015)

  25. Slide 25: Earnings

    Earnings 800 743 710 691 700 66 158 69 600 64 70 515 22 510 28 42 500 23 31 R’million 74 400 17 300 580 535 510 492 200 388 100 - MAR 2012 MAR 2013 MAR 2014 MAR 2015 MAR 2016 Ordinary s/h Minority s/h Pref s/h Once-off

  26. Slide 26: Earnings per share

    Earnings per share 1 000 955 900 218 788 800 742 700 647 88 600 430 Cents 425 500 378 361 391 400 29 300 155 200 358 312 293 269 100 207 - MAR 2012 MAR 2013 MAR 2014 MAR 2015 MAR 2016 1st Half 2nd Half Once-off

  27. Slide 27: Return on Net Operating Assets (RONA)

    Return on Net Operating Assets (RONA) 35.0% 32.9% 32.3% 32.4% 30.6% 29.8% 30.0% 25.8% 25.0% 21.8% 20.8% 20.0% 17.5% 15.0% 10.0% MAR 2014 MAR 2015 MAR 2016 CEG ESG BSG

  28. Slide 28: BMG World

    BMG World Additional land being Acquired 19 000m2 Engineering Assembly Building 9 330m2 Parking Deck 6 000m2 BMG Park Original 36 891m2 Fluid Technology Building 9 208m2 New CDC 9 206m2

  29. Slide 29: BMG World: Central Distribution Centre

    BMG World Central Distribution Centre

  30. Slide 30: BMG World: Central Distribution Centre

    BMG World Central Distribution Centre

  31. Slide 31: The Invicta team

    The Invicta team Executive team and head office support  Executive Deputy Chairman Arnold Goldstone  Group CEO Charles Walters  Group CFO Craig Barnard  CEO – CEG SA Tony Sinclair  Head Office BMG World (Johannesburg 11 people

  32. Slide 32: Invicta's strategy is to…

    Invicta’s strategy is to…  Generate healthy cash from existing businesses  Build on the strength of the current businesses  Focus on customer service, value-added distribution and supply chain efficiencies  Diversify the Group’s revenue stream geographically  Acquire businesses that are a strat

  33. Slide 33: Prospects

    Prospects  Improved results in the main areas of the business  GP margin pressure offset by cost and working capital efficiency  Trading conditions expected to remain challenging  South Africa; and  South East Asia  Benefits of relocations, restructurings to start coming through in 2017  Focu

  34. Slide 34: Why invest in Invicta?

    Why invest in Invicta?  A leading player in the sub-Saharan region  A strong position in Asia  Experienced management team  Strong supplier networks  Represent world leading brands  Unrivalled distribution networks  Cash generative, fixed asset light  Conservative operational Net Debt:Equity

  35. Slide 35: Q&A Thank you

    Q&A Thank you for the opportunity! www.invictaholdings.co.za Charles Walters (CEO) charlesw@invictaholdings.co.za (011) 620-7300 For any Investor Relations queries please contact: Marlize Keyter (Keyter Rech Investor Solutions) at mkeyter@kris.co.za or on 087 351 3810

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