Vunani Limited · JSE:VUN
Vunani — H1 2019 Earnings Presentation
22 slides from Vunani's earnings presentation, Aug 31, 2018
Slide 1: Interim Results 31 August 2018
INTERIM RESULTS 31 AUGUST 2018
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: Results Highlights
RESULTS HIGHLIGHTS
Slide 4: Highlights for the Period
HIGHLIGHTS FOR THE PERIOD • Revenue increased by 46% to R233.7 million compared to R160.1 million to 31 August 2017. • Profit from operating activities of R40.0 million compared to R22.3 million to 31 August 2017 • EPS • 31 August 2018 – 15.7c • 31 August 2017 – 8.5c • HPS • 31 August 2018 – 15.7c •
Slide 5: Group Structure and Segmental Overview
GROUP STRUCTURE AND SEGMENTAL OVERVIEW
Slide 6: Group Structure
GROUP STRUCTURE Private Fund management Asset administration Investment banking equity 6
Slide 7: Segmental Developments: Fund Management
SEGMENTAL DEVELOPMENTS FUND MANAGEMENT • Institutional fund management focus. • Investments included in this segment: • Vunani Fund Managers – R25.5b AUM at 31 Aug 2018 (Feb ‘18: R20.9b). • Purpose Vunani – R381.5m AUM at 31 Aug 2018 (Feb ‘18: R290.4m). • Alliance Capital – R347.1m AUM at 31 Aug 201
Slide 8: Segmental Developments: Asset Administration
SEGMENTAL DEVELOPMENTS (CONT.) ASSET ADMINISTRATION • This business continued to perform well during the period. • The business now administers beneficiary funds from three of the four large insurance companies in the country. • Assets under administration of R6.5b (28 Feb 2018: R6.2b) • Segment res
Slide 9: Segmental Developments: 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: Investment Banking (cont.)
SEGMENTAL DEVELOPMENTS (CONT.) INVESTMENT BANKING • Institutional securities broking experienced difficult trading conditions due to the decline in equity markets volumes. • The advisory services performed well, as they completed mandates during the period. • The focus continues to be on revenue gro
Slide 11: Segmental Developments: Private Equity
SEGMENTAL DEVELOPMENTS (CONT.) PRIVATE EQUITY • Focus on mining, property and investments in private equity companies. • Private equity initiatives explored with well established partners including Anglo American and South 32. • The recently announced FinTech Fund is expected to increase deal flow a
Slide 12: Resources
RESOURCES Investment Location Shareholding Partner Economics 1. Black wattle Colliery • Middelburg • 15%- debt free • Bisichi PLC • Vunani earns a monthly (“BWC”) • 22.5%- vendor management fee loan • A fee for securing the Quatro allocation at R.B.C.T • Dividends • BWC is a junior coal miner with i
Slide 13: Resources
RESOURCES Investment Location Shareholding Partner Economics 4. Coal processing • Anglo Coal • 75% • Management (25%) • Processing and trading of 30 000 • Blackhill • 75% • Management (25%) tons of coal per month • In October 2016 Vunani Resources secured the right to retreat/process/mine a 2 millio
Slide 14: Financial Performance
FINANCIAL PERFORMANCE
Slide 15: Revenue
REVENUE Aug 2018 Aug 2017 16% 27% 20% 38% 24% 15% 42% 18% Fund management Fund management Private equity Private equity Investment banking Investment banking Asset administration Asset administration 15
Slide 16: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME • Other income • Includes non-operational revenue earned by the group. • Investment income • JSE – R0.8m • Black Wattle – R7.5m • Fair value adjustments and impairments • Negative fair value adjustments of R3.7m (Aug ‘17:Positive R6.6m) 16
Slide 17: Statement of Comprehensive Income (cont.)
STATEMENT OF COMPREHENSIVE INCOME (CONT.) • Equity accounted earnings • Alliance Capital – Negative R0.3m (Aug ‘17: Positive R 0.7m) • Zbet – R 0.3 (Aug ‘17: R nil) • Operating expenses excluding coal processing costs • Increased by 33% compared to Aug ’17 due to the increase in coal processing oper
Slide 18: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION • Intangible assets • Intangible assets arose on the consolidation of Fairheads • Decreased by R5.6m as a result of the amortisation of the asset • Other investments • Decreased by R13.4m due to the disposal of investment in BSI and negative fair value adjustments • E
Slide 19: Strategy & Prospects
STRATEGY & PROSPECTS
Slide 20: Strategy & Prospects
STRATEGY & PROSPECTS • Identify significant acquisition opportunities for the group. • Broaden the product offering on the existing platform. • Manage margins and costs. • Better intergroup collaboration. • Focus efforts on organic growth within the existing businesses. • Employment of high-calibre
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