Slide 1: Interim Results 31 August 2016
INTERIM RESULTS 31 AUGUST 2016
Slide 2: Table of Contents
TABLE OF CONTENTS Result highlights 3 Group structure and segmental overview 5 Financial performance 13 Strategy & prospects 18 Questions 20 2
Slide 3: Result Highlights
RESULT HIGHLIGHTS
Slide 4: Highlights to August 2016
HIGHLIGHTS TO AUGUST 2016 • Revenue increased by 28% to R75.0 million compared to R58.6 million to 30 June 2015. • Profit from continuing operations R15.4 million compared to R3.8 million to 30 June 2015. • EPS • 31 August 2016: 13.4c • 30 June 2015: 3.1c • HEPS • 31 August 2016: 11.5c • 30 June 201
Slide 5: Group Structure and Segmental Overview
GROUP STRUCTURE AND SEGMENTAL OVERVIEW
Slide 6: Group Structure
GROUP STRUCTURE Private Fund Asset Investment Private Wealth & management administration banking equity Investments 6
Slide 7: Segmental Developments: Fund Management
SEGMENTAL DEVELOPMENTS FUND MANAGEMENT • Institutional fund management focus. • Investments included in this segment: o Vunani FM – R15.7b AUM at 31 Aug 2016 (Feb 16: R14.1b) o Purpose Vunani – $22.5m AUM at 31 Aug 2016 (Feb 16: $17.8m) • Segment results • Revenue of R33.0m (June 15: R21.7m) • Segme
Slide 8: Segmental Developments (cont.): Asset Administration
SEGMENTAL DEVELOPMENTS (CONT.) ASSET ADMINISTRATION • Assets under administration of R6.2b (29 Feb 2016: R7.8b) • Good progress on new mandates with recognised players in the market. • Segment results • Equity accounted earnings for the period of R3.9m (R2.0m for two months post acquisition to June
Slide 9: Segmental Developments (cont.): Investment Banking
SEGMENTAL DEVELOPMENTS (CONT.) INVESTMENT BANKING • Institutional securities broking • The focus continues to be on revenue growth through the expansion of product offering and the existing client base. • Segmental result • Revenue of R33.4m (June 15: R25.2m) • Segment profit of R2.5m (June 15: R2.5
Slide 10: Segmental Developments (cont.): Investment Banking (continued)
SEGMENTAL DEVELOPMENTS (CONT.) INVESTMENT BANKING (continued) • Advisory services • The business has seen improved deal flow and has a strong pipeline. • The advisory team collaborates closely with the securities business. • Segment results • Revenue of R3.0m (June 15: R0.1m) • Segment loss of R0.4m
Slide 11: Segmental Developments (cont.): Private Wealth and Investments
SEGMENTAL DEVELOPMENTS (CONT.) PRIVATE WEALTH AND INVESTMENTS • Segment restructured during the period to focus on providing wealth and investment asset management to high net worth individuals. • Segment results • Revenue of R2.3m (June 15: R6.0m) • Segment profit R1.1m (June 15: loss of R0.8m) 11
Slide 12: Segmental Developments (cont.): Private Equity
SEGMENTAL DEVELOPMENTS (CONT.) PRIVATE EQUITY • Private equity initiatives explored with well established partners including Anglo American, Bidvest and Mion Holdings. • Segment results • Segment profit R5.1m (June 15: R1.4m) 12
Slide 13: Financial Performance
FINANCIAL PERFORMANCE
Slide 14: Revenue
REVENUE MAR - AUG 2016 JAN - JUN 15 3% 10% 37% 48% 43% 43% 10% 6% Fund management Fund management Private equity Private equity Investment banking Investment banking Private wealth and investments Private wealth and investments 14
Slide 15: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME • Other income • Historically, included amortisation of deferred income, but this has been fully amortised • Investment income • JSE – R1.1m • BSi – R0.4m • Fair value adjustments • Favourable fair value adjustments of R2.5m (June 15: R5.2m) 15
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 – R3.9m (June 15: R2.5m) • Workforce – R9.4m (June 15: R nil) • Operating expenses • Increased by 8% compared to June 15 • Major costs include
Slide 17: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION • Non-current assets held for sale • Workforce • BSi • Scrip dividend with cash alternative (R6.8m) • 4.3m shares issued • Cash payment of R0.5m 17
Slide 18: Strategy & Prospects
STRATEGY & PROSPECTS
Slide 19: Strategy & Prospects
STRATEGY & PROSPECTS • Growing focus areas and deepen product offerings on the existing platform. • Manage margins and costs. • Intergroup collaboration critical. • Focus efforts on organic growth within the existing businesses. • Employ high-calibre quality management and staff • Unlock value in pr
Slide 20: Questions
QUESTIONS
Slide 21: Thank You
THANK YOU
Slide 22: 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