Invicta Holdings Limited · JSE:IVT
Invicta — RMB Morgan Stanley Off-Piste Conference 2017
28 slides from Invicta's conference presentation, Sep 29, 2017
Slide 1: Presentation: RMB Morgan Stanley Off-Piste Conference
PRESENTATION RMB Morgan Stanley Off-Piste Conference 29 Sep 2017 Presented by Arnold Goldstone (Chief Executive Officer)
Slide 2: Agenda
Agenda 01 COPORATE HISTORY 02 BUSINESS PROFILE Capital Equipment Group Engineering Solutions Group Building Supply Group 03 KEY FINANCIAL INFORMATION 04 PROSPECTS AND STRATEGY 05 EXEC MANAGEMENT & SHAREHOLDING Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 2
Slide 3: Corporate History
CORPORATE HISTORY • 1989: Founded and listed on Johannesburg Stock Exchange (JSE) • Top 100 Company for 21 years since then • Annual Global Revenue of Invicta Group R10bn+ (US$ 750m+) • Presence in over 20 countries • Over 5 000 employees • Revenue: 74% SA, 26% rest of world • Importer and distribut
Slide 4: Business Profile
BUSINESS PROFILE Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 4
Slide 5: Divisional structure
Divisional structure CAPITAL EQUIPMENT ENGINEERING SOLUTIONS BUILDING SUPPLY GROUP GROUP GROUP (Discontinued) Importer & distributor of Leading distributor of Manufacturer, wholesaler agricultural equipment, engineering consumables and distributor of building construction equipment, and provider of
Slide 6: Engineering Solutions
Engineering Solutions Engineering Solutions • BMG (Bearing Man Group) o Engineering components & technical services o 135 branches o Bearings, Seals, PT, Tools, Fasteners o Drives, Motors, Belting, Field Services o Filtration, Hydraulics, Lubrication, Pneumatics • Hansen • Mandirk Group (incl SA Too
Slide 7: Capital Equipment (SA)
Capital Equipment (SA)) • Northmec (Agricultural Machinery) • New Holland* (Agricultural Machinery) • CSE (Earthmoving Machinery) • Doosan (Earthmoving Machinery) • HPE (Hyundai Earthmoving) • Criterion (Forklifts) • ESP (Parts) • 201 dedicated outlets *Equipment sales discontinued. Aftermarket supp
Slide 8: Capital Equipment (Kian Ann Group)
Capital Equipment (Kian Ann Group) Kian Ann Engineering • One of the world's largest independent distributors of heavy machinery and diesel engine parts • HQ in Singapore • Subsidiaries in Singapore, Indonesia, China, Canada, United Kingdom and Myanmar • Joint venture in India • Associate in China K
Slide 9: Building Supply Group (Discontinued)
Building Supply Group (Discontinued) • Tiletoria • MacNeil Distributors • Brands 4 Africa • 15 outlets in SA Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 9
Slide 10: Key Financial Information
KEY FINANCIAL INFORMATION Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 10
Slide 11: Revenue (R bn)
REVENUE (R bn) Acquired Acquired Sold BSG 14 Sold Engineparts (T/O GFC Macneil Kian Ann after y/e R250m) 12 12 10 10 10 11 R billion 8 8 6 6 4 5 5 4 3 2 2 3 2 2 2 1 1 1 - Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 11
Slide 12: EPS (cents per share)
Feb 15: Special div EPS (cents per share) (R1.5bn) & rights issue (44% more shares 900 (107m in issue)) 788 800 737 742 700 647 Cents per share 600 504 499 500 437 453 396 400 356 292 300 200 164 190 170 133 100 46 60 0 Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 12
Slide 13: Revenue contribution by operating segment
Revenue contribution by operating segment (excluding Head Office) R’million 14 000 11,513 12 000 10,465 10,455 10,620 10 000 1,893 1,388 1,639 1,837 7,558 8 000 630 3,955 4,665 4,209 4,299 6 000 3,425 4 000 2 000 5,122 4,607 4,484 4,955 3,503 0 MAR 2013 MAR 2014 MAR 2015 MAR 2016 MAR 2017 Building S
Slide 14: Operating profit contribution by operating segment
Operating profit contribution by operating segment (excluding Head Office) R’million 1 200 1,058 1,024 1,043 1 000 67 87 108 838 768 800 70 39 473 499 480 600 406 390 400 200 484 457 470 339 362 0 MAR 2013 MAR 2014 MAR 2015 MAR 2016 MAR 2017 Building Supply Group 10% (9%) 44% (43%) Capital Equipment
Slide 15: Revenue contribution by region
Revenue contribution by region (includes discontinued operations) Other 5% Asia (3%) 14% (9%) Africa 7% (11%) 74% (77%) South Africa* Y/E 31 Mar 2017 (2016) *Target: 50% by 2020 Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 15
Slide 16: Revenue contribution by sector
Revenue contribution by sector (includes discontinued operations) Mining 12% (14%) 27% Construction Manufacturing & Industry 12% (29%) (15%) 24% 25% General Trading (19%) (23%) Agriculture & Forestry 2017 (2016) Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 16
Slide 17: Return on Net Operating Assets (RONA)
Return on Net Operating Assets (RONA) (based on average net operating assets) 35% 30% 25% 20% 15% 10% 5% 29,8% 25,8% 30,9% 24,8% 17,5% 21,8% 19,4% 17,6% 20,6% 24,1% 27,3% 22,5% 0% FY 2015 FY 2016 FY 2017 CEG ESG BSG IVT Group Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 17
Slide 18: Earnings per share H1 & H2 (5 yr history)
Earnings per share H1 & H2 (5 yr history) 1 000 955 78m weighted 900 average nr of 218 ordinary shares 788 800 742 700 88 Rights issue 600 430 107m weighted Cents 425 average nr of 499 500 ordinary shares 361 396 400 29 246 300 160 200 358 312 293 253 100 207 0 MAR 2013 MAR 2014 MAR 2015 MAR 2016 MA
Slide 19: Invicta share price history 5 yrs (cents)
INVICTA SHARE PRICE HISTORY 5 YRS (CENTS) Special dividend and rights issue Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 19
Slide 20: Prospects and Strategy
PROSPECTS AND STRATEGY Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 20
Slide 21: Prospects
Prospects • Signs of improvement in South East Asia • SA: tough trading conditions (mining charter, recession, low business confidence, too much political uncertainty = very little new investment) • Benefits of relocations, restructurings and expansions to start coming through in H2 • Focus of the G
Slide 22: Prospects contd.
Prospects contd. • Proceeds from sale of BSG likely to flow in next month • R1bn + available for acquisitions. Stay focused on industrial consumables and capital equipment (deep knowledge of these industries, high cash generation, good return on sales and good return on equity) • Local and internati
Slide 23: Strategy
Strategy 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 by organic growth and acquis
Slide 24: Group profit drivers
Group profit drivers • Mining and industrial activity (ESG) • Agricultural activity (Northmec and aftermarket parts) • Construction and earthmoving activity (CSE, Doosan SA & HPE) • Warehousing (Criterion Equipment) • Global replacement spares market (Kian Ann) Invicta Holdings Limited | Off-Piste C
Slide 25: Executive Management and Shareholding
EXECUTIVE MANAGEMENT AND SHAREHOLDING Invicta Holdings Limited | Off-Piste Conference 29 Sep 2017 25
Slide 26: Executive Management Team
Executive Management Team BOARD OF DIRECTORS Dr Christo Wiese (Non-Executive Chairman) ENTITY CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER Invicta Holdings ARNOLD GOLDSTONE CRAIG BARNARD Capital Equipment Group TONY SINCLAIR GEOFF BALSHAW Engineering Solutions Group GAVIN PELSER BENNIE GROENEWALD
Slide 27: Shareholding as at Sep 2017
Shareholding as at Sep 2017 1% Exec Directors 2% Samuels Family 1% Treasury Goldstone Family 4% Sherrell Family 7% Directors’ Total % 53% 47% Public % 47% 38% Public (approx. 25% of shares in issue are Wiese Family owned by financial institutions) Invicta Holdings Limited | Off-Piste Conference 29 S
Slide 28: Q&A
Q&A Thank you for your attendance and participation www.invictaholdings.co.za For any further Investor Relations questions please contact: Arnold Goldstone (CEO) arnoldg@invictaholdings.co.za Craig Barnard (CFO) craigb@invictaholdings.co.za Marlize Keyter (Keyter Rech Investor Solutions) mkeyter@kri
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