Invicta Holdings Limited · JSE:IVT
Invicta — FY2020 Earnings Presentation
54 slides from Invicta's earnings presentation, Aug 14, 2020
Slide 1: Final Results Presentation for the year ended 31 March 2020
FINAL RESULTS PRESENTATION For the year ended 31 MARCH 2020 Presented by Steven Joffe Chief Executive Officer
Slide 2: Disclaimer
Disclaimer The information contained in this presentation may differ from the financial information pertaining to Invicta Holdings Limited’s (Invicta’s) results as published on SENS in terms of the JSE Limited’s Listings Requirements. The additional pro forma financial information has not been revie
Slide 3: Agenda
01 Welcome & Introduction 02 Group Financial Overview 03 Divisional Review Engineering Solutions Group (ESG) Capital Equipment Group (CEG) Kian Ann Group (KAG) 04 Prospects & Strategy Invicta Holdings Limited |Final Results Presentation for the year ended 31 March 2020 3
Slide 4: The Year at a Glance
The Year at a Glance • Tough trading environment, locally and globally • Satisfactory set of results • Operating profit, excluding once-off adjustments, would have been 3% higher than 2019’s results • Better cash flow from operations • Net debt (excluding IFRS 16) decreased by R261 million • COVID-1
Slide 5: Group Financial Overview
Group Financial Overview Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 5
Slide 6: Impairments and Once-off Items
Impairments and Once-off Items Total impairments and once-off items = R1 102 million 700 639 13 600 8 75 500 400 300 543 196 196 200 61 100 196 71 135 58 - Super Stock Obsolescence Goodwill impairment Property impairment (Kian Deferred Tax Assets Written Ann Building and Samrand) Off ESG CEG KAG Hea
Slide 7: Normalised Results at a Glance
Normalised Results at a Glance Operating profit* EBITDA* Net profit* Before net finance income and forex ↑ 3% ↑ 2% ↑ 1% to R707 million to R870 million to R423 million TNAV per share NAV per share HEPS* ↑ 2% ↓ 12% ↑ 4% to R34.86 to R35.80 to 302 cents *Results excluding impairments, once-off items a
Slide 8: Statement of Comprehensive Income (Extract)
Statement of Comprehensive Income (Extract) GP% adjusted for super stock provision = (2 696 673+196 895)/10 037 636=28.8% Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 8
Slide 9: Normalised Operating Profit 2020 vs 2019
Normalised Operating Profit 2020 vs 2019 3% Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 9
Slide 10: Statement of Comprehensive Income (Extract)
Statement of Comprehensive Income (Extract) Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 10
Slide 11: Statement of Financial Position: Assets
Statement of Financial Position: Assets 31 March 2020 31 March 2019 R'000 R'000 Assets Property, plant and equipment 1 738 241 1 942 332 IFRS16 - Right of use asset *1 423 271 - Financial investments 5 241 958 Investments in associates and joint ventures 293 136 216 167 Goodwill 24 847 662 927 Other
Slide 12: Property Plant Equipment: Additions
Property Plant Equipment: Additions Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 12
Slide 13: Statement of Financial Position: Assets
Statement of Financial Position: Assets *1. IFRS 16 ROU assets – rentals of R129m replaced with depreciation R98m and interest R44m, Net increase of R13m. Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 13
Slide 14: Inventory
Inventory Gross stock R4,9bn at the end of March 2020 vs R5bn March 2019 (R5,2bn end of Sept 2019) Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 14
Slide 15: Statement of Financial Position: Equity & Liabilities
Statement of Financial Position: Equity & Liabilities Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 15
Slide 16: Debt Maturity Profile
Debt Maturity Profile Total debt = R2 864 million 1,000,000 924 335 900,000 100,000 800,000 730 945 700,000 600,000 488 396 500,000 400,000 368 885 824,335 351 251 730,945 300,000 100,000 488,396 200,000 351,251 268,885 100,000 - R’000 Year 1 Year 2 Year 3 Year 4 Year 5< Bank Loans SARS Bank Loans i
Slide 17: Net Debt
Net Debt Net debt 2020 vs 2019 R'000 R'000 at 31 March 2020 at 31 March 2019 Borrowings LT + current 2 528 353 3 084 099 Lease liabilities LT + current 135 459 164 164 SARS 200 000 300 000 Cash (1 131 704) (935 715) Overdraft 309 071 183 240 Deduct: long-term debt secured by FirstRand bonds (492 824
Slide 18: Bank Covenants met at 31 March 2020
Bank Covenants met at 31 March 2020 For the next 12 months: • Covenants are likely to be out of reach under COVID-19 trading conditions • Bankers have supported new covenant approach for the next six months, to be revisited following revised forecast in September 2020 to form covenant basis to year
Slide 19: Cash Flow Statement
Cash Flow Statement 31 March 31 March 2020 2019 R’000 R’000 Cash flows from operating activities Cash generated from operations 959 290 545 062 Net finance costs (201 401) (109 311) Net dividends paid (89 542) (193 446) Tax paid (287 583) (612 977) Net cash inflow/(outflow) from operating activities
Slide 20: Divisional Review
Divisional Review Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 20
Slide 21: Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020
Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 21
Slide 22: Executive Structure
Executive Structure (Excluding Head Office) Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 22
Slide 23: Final Results Summary
Final Results Summary 31 March 2020 Revenue (R’m) Sustainable Operating Profit (R’m) 6,000 500 463 5,238 5,180 5,000 4,559 (1,1%) 400 335 4,000 323 300 (3,6%) 3,000 200 2,000 1,000 100 0 0 March 2018 March 2019 March 2020 March 2018 March 2019 March 2020 Net Operating Assets (R’m) Return on Net Asse
Slide 24: Final Results Summary
Final Results Summary 31 March 2020 Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 24
Slide 25: Revenue Contribution
Revenue Contribution Revenue Stream Region Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 25
Slide 26: Revenue Contribution By Sector
Revenue Contribution By Sector Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 26
Slide 27: Outlook
Outlook • The 20/21 financial year started with COVID-19 and a countrywide Level 5 lockdown • This has created and forced a new look to review, reset and refocus our business • We have rationalised our operations throughout and across the ESG business • New focus on the following market segments; •
Slide 28: Outlook
Outlook • Route to market reviewed • E-commerce Tool at ESG - Cross sell, on sell, up sell, both to existing business – B2B and to new business to customer B2C • Direct delivery to customer from world class distribution center • Right size existing branch network – consolidation & review to Express
Slide 29: Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020
Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 29
Slide 30: Management Structure
Management Structure Chief Executive Officer Tony Sinclair SA companies Non SA company Criterion Northmec HPE Africa Landboupart Doosan CSE Shamrock ESP NHSA CCC Equipment MD DH MD MD MD MD MD MD DH MD Johan van Danie van Graham Marius Brenton Andrew Ross Collard Darrel David Visser John McHarg der
Slide 31: Final Results Summary
Final Results Summary 31 March 2020 Revenue (R’m) Sustainable Operating Profit (R’m) 4,000 400 3,529 334 3,500 3,206 3,124 350 3,000 300 (2,6%) 250 2,500 250 223 2,000 200 (10,8%) 1,500 150 1,000 100 500 50 0 0 March 2018 March 2019 March 2020 March 2018 March 2019 March 2020 Net Operating Assets (R
Slide 32: Final Results Summary
Final Results Summary 31 March 2020 Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 32
Slide 33: Revenue Contribution By Revenue Stream
Revenue Contribution By Revenue Stream 3.1% 2.7% 7.1% 50.3% 36.3% 42.6% 57.9% Agriculture & Forestry Construction Materials Handling Equipment Parts Rental Service Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 33
Slide 34: Revenue Contribution By Country
Revenue Contribution By Country 2% 98% South Africa United Kingdom Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 34
Slide 35: Outlook
Outlook • Markets are crowded, volumes down and very competitive • Good cash generation • Working capital under control • Expenses reduced and under control • Good absorption rate Agriculture Construction • Customer liquidity issues • Major construction companies not buying; many • Expropriation of
Slide 36: Kian Ann Engineering
KIAN ANN ENGINEERING Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 36
Slide 37: Corporate Structure
Corporate Structure Corporate Structure Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 37
Slide 38: Results Summary
Results Summary Results Summary – 31–March 31 March 2020 2020 Revenue (S$'000) Sustainable Operating Profit (S$'000) 200,000 14,000 161,698 11,826 11,989 161,430 12,000 150,000 10,000 129,418 (19,8%) 8,000 100,000 5,953 6,000 (50,3%) 50,000 4,000 2,000 0 0 March 2018 March 2019 March 2020 March 2018
Slide 39: Results Summary
Results Summary Results Summary – 31–March 31 March 2020 2020 Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 39
Slide 40: Revenue Contribution by Stream
Revenue Contribution Revenue Contribution by Stream by Revenue Revenue Stream 22% 6.70% (PY: 19%) 10.20% 17.80% 78% 65.30% (PY: 81%) Heavy Machinery Automotive Construction Agriculture & Forestry Mining General Trading Invicta Holdings Limited | Final Results Presentation for the year ended 31 March
Slide 41: Revenue Contribution by Country
Revenue Contribution Revenue Contribution by Country by Country 15% (PY: 14%) 27% (PY: 28%) 14% (PY: 15%) 14% (PY: 11%) 18% (PY: 17%) 12% (PY: 15%) Singapore Malaysia Indonesia Other ASEAN Countries Other Asian Countries Non-Asian Countries Invicta Holdings Limited | Final Results Presentation for t
Slide 42: Business Outlook
Business Outlook Outlook • In general, outlook for South East Asia will remain flat as business activities for coal mining in Indonesia and logging industry in Malaysia are expected to be sluggish • However, demand for parts beyond South East Asia, especially in North America, is expected to recover
Slide 43: Prospects & Strategy
Prospects & Strategy Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 43
Slide 44: COVID-19 New Operational Reality
COVID-19 New Operational Reality First Response • Protect staff, sanitize premises, temperature checks on entry • Issue of personal protective equipment, cordoned off work areas, shift work • Remote working Managing the business in the short term for the long term • Three-month forecast rolled weekl
Slide 45: Innovation
Innovation E-commerce Platform Oxygen Helmets & Ventilators Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2020 45
Slide 46: Covenants 2021
Covenants 2021 With the onset of Covid 19 and the various lockdown levels announced in late March of 2020, the Group engaged with its various banking partners to come up with alternative arrangements for the year ahead, in terms of monitoring mechanisms and covenants to be used. We are pleased to an
Slide 47: CNH Deal
CNH Deal THE TRANSACTION Invicta reached an agreement with CNH Industrial to dispose of four businesses within CEG: • Landboupart a distributor of replacement spare parts for the agricultural and industrial markets • Northmec a supplier of farming OEM spare parts • CSE a distributor of earthmoving,
Slide 48: Looking Forward
Looking Forward • CNH Disposal • Invicta generates good cash flow • BMG e-commerce • Bank gearing levels should be lower • Oxygen helmet and ventilator • Proposed sale to CNH helps greatly project • Property portfolio can be conservatively • Restructuring INDUSTRI geared, prefer to own strategic • R
Slide 49: Invicta Holdings Executive Management
Invicta Holdings Executive Management CHIEF EXECUTIVE CHIEF FINANCIAL COMMERCIAL COMPANY SECRETARY OFFICER OFFICER DIRECTOR AND LEGAL ADVISOR STEVEN BRIAN JOFFE NAZLEE RAJMOHAMED CRAIG BARNARD LIZE DUBERY CEO: CEG CEO: ESG CEO: KAG TONY SINCLAIR GAVIN PELSER LOY SOO-CHEW Invicta Holdings Limited |Fi
Slide 50: Invicta Holdings Non-Executive Directors
Invicta Holdings Non-Executive Directors INDEPENDENT NON- NON-EXECUTIVE CHAIRMAN NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR DR CHRISTO WIESE DAVID SAMUELS ADV. JACOB WIESE LANCE SHERRELL INDEPENDENT NON- INDEPENDENT NON- INDEPENDENT NON- NON-EXECUTIVE DIRECTOR EXECUTIVE DIRECTO
Slide 51: Board Committees to be reconstituted
Board Committees to be reconstituted Investment Social & Ethics Audit Committee Committee Committee • Rashid Wally • Jacob Wiese • Mpho Makwana • Frank Davidson • Iaan van Heerden • Rashid Wally • Mpho Makwana • Frank Davidson • Lance Sherrell • Steven Joffe • Steven Joffe Remuneration Nominations C
Slide 52: Group Structure
Group Structure Invicta Holdings Limited |Final Results Presentation for the year ended 31 March 2020 52
Slide 53: Top Shareholders at 31 March 2020
Top 10 Shareholders at 31 March 2020 Ordinary Shareholders % Preference Shareholders % Wiese, CH 39,64 Wiese, CH 20,39 Sherrell Family 9,58 Wiese, JD 8,16 Foord 7,44 Nedbank Group 7,18 PSG Konsult 7,07 Goldstone, A 5,89 Government Employees Liberty Group 3,90 3,63 Pension Fund Rula Bulk Materials Ha
Slide 54: Thank you for your attendance & participation
Thank you for your attendance & participation www.invictaholdings.co.za For any further Investor Relations questions please contact: Steven Joffe(CEO) stevenjoffe@invictaholdings.co.za Marlize Keyter (Keyter Rech Investor Solutions) mkeyter@kris.co.za 087 351 3810 Invicta Holdings Limited | Final Re