Invicta Holdings Limited · JSE:IVT
Invicta — FY2021 Earnings Presentation
52 slides from Invicta's earnings presentation, 2021
Slide 1: Final Results Presentation
7 FINAL RESULTS PRESENTATION Invicta For the year ended 31 March 2021 HOLDINGS LIMITED 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 normalised financial information has not been revi
Slide 3: Proceedings
Invicta HOLDINGS LIMITED Proceedings rl (02 } Group Financial Overview Divisional Review Engineering Solutions Group (ESG) Capital Equipment Group (CEG) Kiann Ann Group (KAG) Prospects & Strategy idings Limited | Final Results Pr on fo ear ended 31 March 20:
Slide 4: The Year at a Glance
Invicta H The Year at a Glance The year under review will always be remembered as the Covid-19 year. Notwithstanding, we are extremely proud of how our businesses performed during the period. We increased normalised headline earnings by 19% compared to the prior period. imited | Final Results Presen
Slide 5: Group Financial Overview
Slide 6: Normalised Continuing Operating Profit 2021 vs 2020
Normalised Continuing Operating Profit 2021 vs 2020 lt). Invicta HOLDINGS LIMITED March 2021 2020 R'000 R'000 Operating profit/(loss) before net fin income on financing transactions and FX as 585,175 | (319,196) reported Add back: Retrenchment costs related to continuing operations 31,972 - Deduct:
Slide 7: Normalised Discontinued Operating Profit 2021 vs 2020
Normalised Discontinued Operating Profit 2021 vs 2020 if Invicta tach HOLDINGS LIMITED 2021 R'000 Operating profit before net fin income on financing transactions and FX from (59,161) discontinued operations as reported - Kian Ann Group = Add back: Superstock provision - [Add back: Property impairme
Slide 8: Normalised Continuing Operating Profit Incl. Kian Ann 2021 vs 2020
Normalised Continuing Operating Profit Incl. Kian Ann 2021 vs 2020 Normalised continuing operating profit before net fin income on financing transactions and FX from continuing operations Equity accounted income - Associates Normalised operating profit before net fin income on financing transactions
Slide 9: Normalized results at a glance
Normalized results at a glance tv (including held for sale disposed business and equity accounted income) dnvicta DLDINGS LIMITED EBITDA* Operating profit** T2% SS 0% to R1017 million to R759 million TNAV per share Net profit* y 19% 6 INVICTA G) T 7% to R35.26 to R437 million NAV per share 0% to R35
Slide 10: Normalized results at a glance (continuing operations)
Normalized results at a glance tv (continuing operations including Kian Ann and equity accounted income) dnvicta DLDINGS LIMITED Operating profit** Before net finance income and forex b2% to R626 million EBITDA* T 3% to R879 million TNAV per share Net profit* D1% INVICTA 15% to R35.26 to R345 millio
Slide 11: Statement of Comprehensive Income (Extract)
Statement of Comprehensive Income (Extract) Levicta NvVI1Ct HOLDINGS LIMITED March 2021 2020 Variance Continuing operations Revenue 6,251,484 6,873,907 Cost of sales (4,259,699) (4,827,346) -12% Gross profit 1,991,785 2,046,561 , , 7 4 Selling, administration and distribution costs (1,406,610) (2,36
Slide 12: Statement of Comprehensive Income (Extract)
Statement of Comprehensive Income (Extract) Ticta HOLDINGS LIMITED March 2021 2020 Variance R'000 R'000 % Interest and dividends received 55,712 85,687 -35% Finance cost (194,526) (265,691) -27% Share of profits from associates and JVs 3,862 2,694 43% Profit/(loss) before taxation 457,525 (525,223)
Slide 13: Statement of Financial Position: Assets
Statement of Financial Position: Assets Invicta DINGS LIMITED March 2021 2020 R'000 R'000 Assets Property, plant and equipment (incl invest prop) 1,003,772 1,738,241 IFRS16 - Right of use asset 245,782 423,271 Financial investments and other financial assets 7,177 5,241 Investments in associates and
Slide 14: Property Plant Equipment: Additions
0; Property Plant Equipment: Additions Invicta DINGS LIMITED Capital Expenditure & WIP 31 March 2021 R'000 CAPEX (163,346) Additions to property plant equipment (156,171) Additions to intangible assets (7,175) Expansionary capex 73,810 Rental assets 23,356 Property 50,454 Maintenance capex (89,536)
Slide 15: Statement of Financial Position: Assets
Statement of Financial Position: Assets Invicta TOLDINGS LIMITED March 2021 2020 R'000 R'000 Assets Property, plant and equipment (incl invest prop) 1,003,772 1,738,241 IFRS16 - Right of use asset 245,782 423,271 Financial investments and other financial assets 7,177 5,241 Investments in associates
Slide 16: Inventory and related provisions March 2021
Inventory and related provisions 31 March 2021 Gross value Net value CEG ZAR R'000 R'000 Mar-21 485,480 65,802 Sep-20 1,254,929 186,017 Mar-20 1,318,982 176,992 ESG ZAR Mar-21 2,055,562 359,802 1,695,760 Sep-20 2,159,728 325,910 1,833,819 Mar-20 2,246,829 313,711 1,933,119 KA SGD Mar-21 83,493 17,02
Slide 17: Statement of Financial Position: Assets
Statement of Financial Position: Assets Invicta TOLDINGS LIMITED March 2021 2020 R'000 R'000 Assets Property, plant and equipment (incl invest prop) 1,003,772 1,738,241 IFRS16 - Right of use asset 245,782 423,271 Financial investments and other financial assets 7,177 5,241 Investments in associates
Slide 18: Statement of Financial Position: Equity & Liabilities
Statement of Financial Position: Equity & Liabilities i. Invicta DINGS LIMITED Shareholders' equity 4,726,088 4,634,517 Long-term borrowing 737,634 2,326,733 Finance lease liabilities 46,286 68,194 IFRS 16 - Lease liability 237,632 443,430 Taxation liability 2 100,000 Deferred taxation 24,716 68,197
Slide 19: Total net-interest bearing debt
Invicta Total net-interest bearing debt Borrowings Finance lease liabilities SARS Cash Overdraft Net debt excluding IFRS 16 IFRS 16 ROU lease liabilities Net debt 1,286,470 116,203 (896,900) 253,926 2,528,353 135,459 200,000 (1,131,704) 309,071 759,699 309,393 2,041,179 530,261 1,069,092 2,571,440 I
Slide 20: Covenants 2021
1 Invicta LDINGS LIMITED Covenants 2021 We have complied with the loan covenants which have reverted to the pre COVID-19 measurement basis: ee 1 Net Debt to EBITDA Ratio 3.25 < 3.0 < 1.42 2 Interest Cover Ratio 30 > 35 > 5.81 Limited | Final Results Presentation for the year ended 31 March 2021
Slide 21: Cash Flow Statement
Cash Flow Statement [Cash flows from operating activities Cash generated from operations 1,856,936 959,891 Net finance costs (141,686) (201,401) Net dividends paid (73,131) (89,542) Tax paid (425,521) (287,583) Net cash inflow from operating activities 1,216,598 381,365, [Cash flows from investing a
Slide 22: Divisional Review
& a3 OO Divisional Review Invicta Holdings Limited | Final Results Presen n for the year ended 31 March 2021
Slide 23: Engineering Solutions Group
Engineering Solutions Group ings Limited | Final Results Presentation for the year ended
Slide 24: Executive Structure
Executive Structure (Excluding Head Office) (ESG Gavin Pelser FINANCE HR 7 Rennie Grosnewald Ruth Black _ Campbell Futier ESG SHARED SERVICES INDUSTM coaiosy RE Rastenburg Robin Briggs ong Bagennorst Dp ona ane Pretoria Kevin Bateman concen FS Gs Saws Invicta HOLDINGS LIMITED
Slide 25: ESG Results Summary March 2021
Argon Sens Ge Results Summary 31 March 2021 Revenue (R’m) Sustainable Operating Profit (R’m) q. 5238 5180 4524 324 292 320 6000 350 — ™ 4500 263 (99%) (12.7%) 3000 175 1500 88 0 0 March 2019 March2020 March 2021 March 2019 March 2020 March 2021 Net Operating Assets (R’m) Return on Net Operating Asse
Slide 26: ESG Results Summary March 2021
Argon Sens Ge 400 300 Results Summary 200 31 March 2021 100 0 Invicta H imited | Final Results Presentation for the year en: 372 Segmental operating profit Sustainable Operating Profit 26 BB aaa 58 -20 IFRS 16 Retrenchment Profit on sale interest paid cost of business/ investment 0) Invicta HOLDINGS
Slide 27: Revenue Contribution
Revenue Contribution 1. -_—™ Invicta HOLDINGS LIMITED Revenue Stream Region e Consumables e@ Engineering @ South Africa re) Other 62.1% (PY 61.0%) 37.9% (PY 39.0%) 80.6% (PY 84.4%) 15.9% (PY 13.2%) 3.5% (PY 2.4%)
Slide 28: Revenue Contribution By Sector
Argon Sens Ge Revenue Contribution Invicta By Sector Mining 31.5% (PY 35.0%) Oil & Gas 1.8% (PY 2.0%) Industry 13.5% (PY 15.0%) Projects & Consultants 3.3% (PY 4.0%) Parastatals 0.8% (PY 1.0%) Food and Beverage 6.1% (PY 6.0%) Other 10.7% (PY 8.0%) Cash Sales Agriculture 8.2% (PY 7.0%) SH aE) Constru
Slide 29: ESG Outlook 2021/2022
{ESG Outlook 2021/2022 Invicta c GS LIMITED The outlook for the 2021/2022 financial year certainly looks better than the 2019/2020 financial year. The ESG businesses have been reset and restructured for growth. The markets we trade in have shown signs of recovery and the number of enquiries for our
Slide 30: Outlook 2021/2022
Outlook 2021/2022 7. Invicta OLDINGS LIMITED The ESG businesses continue to look for new products and solutions to service our existing customers and will focus in increasing our distribution globally. The divisions within the ESG group of companies continue to explore opportunities and ensure we gr
Slide 31: ESG Outlook 2021/2022
Invicta OLDINGS LIMITED {ESG Outlook 2021/2022 ¢ With the shortage of supply of products globally, in particular steel-based products, and the delay in shipments, we are focused on improving our logistics and enhancing our supply chain efficiencies — improved planning. ¢ Our margins will remain unde
Slide 32: Capital Equipment Group
Invicta ILDINGS LIMITED CAPITAL EQUIPMENT GROUP If Memoer or THe INvicTA Grour:
Slide 33: CEG Results Summary March 2021
BB continuing discontinued BB continuing I viscontinues rl Invicta 4000 2192 3124 2792 300 250 219 HOLDINGS LIMITED 0 24, “ 3000 225 145 Revenue (R’m) 2000 woe pean eee 150 Sustainable Operating Profit (R’m) 1000 75 105 1264 1354 1272 Results Summa ry March 2019 Marcha020. March 200 march 2019 March
Slide 34: CEG Results Summary March 2021
BB continuing discontinued BB continuing I viscontinues rl Invicta 4000 2192 3124 2792 300 250 219 HOLDINGS LIMITED 0 24, “ 3000 225 145 Revenue (R’m) 2000 woe pean eee 150 Sustainable Operating Profit (R’m) 1000 75 105 1264 1354 1272 Results Summa ry March 2019 Marcha020. March 200 march 2019 March
Slide 35: Results Summary March 2021 Sustainable Operating Profit
400 300 200 100 Results Summary 31 March 2021 12 month rolling Sustainable Operating Profit 31 March (R’m) 332 = — 283 271 -12 156 115 Invicta NGS LIMI ED
Slide 36: Revenue Contribution By Revenue Stream
Revenue Contribution . (Including 9 months from Businesses sold to CNH Industrial) Invicta By Revenue Stream — 7.4% 2.2% 3.4% 47.7% 37.9% 56.5% 44.9% @ Agriculture & Forestry @ Construction @ = Materials Handling @ Equipment @ Parts Rental @ Service
Slide 37: Revenue Contribution By Country
Revenue Contribution . (Including 9 months from Businesses sold to CNH Industrial) Invicta ILDINGS LIMITED By Country 98.0% @ = South Africa @ United Kingdom mited | Final Results
Slide 38: Outlook
Outlook Ut. Invicta OLDINGS LIMITED ¢ Market demand 90% of average trading value ¢ Excellent cash generation ¢ Working capital value generations exceeded all expectations ° Expenses reduced — leaner group © Good return on Capital employed and Net Assets (0) Agriculture (2 ) Construction Very good fi
Slide 39: Kian Ann Engineering Ltd
_= % > 4 - ~~ =e NX ‘ \Invicta WPERINGS EnaTeD KIAN ANN ENGINEERING LTD The Trusted Name In Heavy Machinery And Diesel Engine Parts Invicta Holdings Limited | Final Results Presentation for the year ended 31 March 2021
Slide 40: Corporate Structure
Corporate Structure Ut. Invicta NGS LIMITED KIAN ANN ENGINEERING PTE LTD id Diesel Engine Parts The Trusted Name tn Heavy Mac! Singapore PT Haneagle Heavyparts Indonesia Kian Chue Hwa (Industries) Pte Ltd Kunshan Kensetsu Buhin Co Pte Ltd Indonesia Singapore China Kian Ann Engineering Trading (Shang
Slide 41: Results Summary March 2021
Results Summary 31 March 2021 Revenue (R’m) Sustainable Operating Profit (R’m) 161,430 129,418 118,874 180000 135000 (8.1%) 45000 |: March 2019 March 2020 March 2021 15,268 10,371 9,443 16000 12000 (8.9%) - | March 2019 March 2020 March 2021 Net Operating Assets (R’m) Return on Net Operating Assets
Slide 42: Kian Ann Results Summary 31 March 2021
Invicta KIAN ANN ENGINEERING PTE LTD The Trasted Name In Heavy Machinery And Dievel Egine Parts Results Summary 31 March 2021 * Once-off adj comprise Fair value loss on derivative instruments, loss on disposal of investment in subsidiaries. Operating profit March 2021 Once-off adj* Equity acct earni
Slide 43: Revenue Contribution By Revenue Stream
KIAN ANN ENGI The Trasted Name In Heavy Machinery And Dive 72% (PY: 78%) ERING PTE @ Heavy Machinery Revenue Contribution By Revenue Stream [DINGS LIM 28% (PY: 22%) | Automotive 18.5% 8.0% (PY: 17.8%) (PY: 10.2%) 6.7% 66.8% (PY: 6.7%) (PY: 65.3%) Construction @ Agriculture & Forestry @ Mining © Gene
Slide 44: Revenue Contribution By Country
KIAN ANN ENGINEERING Pte LtD Revenue Contribution 1 The Trusted Name In Heavy Machinery And Dicyel Engine Party ae By Country Invicta DINGS LIMITED Other Asian Countries 17% (PY 14%) Other ASEAN Countires 9% (PY 12%) Indonesia 16% (PY 18%) Non-Asian Countries 30% (PY 27%) Malaysia 13% (PY 14%) Singa
Slide 45: Kian Ann Engineering Outlook
KIAN ANN ENGINEERING PTE LTD Outlook J pester ar Invicta OLDINGS LIMITED ¢ In general, outlook for South East Asia will remain challenging as business activities are very much affected by the ongoing COVID 19 pandemic. However, demand for parts beyond South East Asia, especially in North America, is
Slide 46: Prospects & Strategy
Y. Invicta PROSPECTS & STRATEGY
Slide 47: COVID-19 Operational Reality
COVID-19 Operational Reality Ticta LDINGS LIMITED New normal © 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 © Daily income stateme
Slide 48: CNH Deal
CNH Deal i Invicta The transaction HOLDINGS LIMITED The Invicta agreement with CNH Industrial to dispose of four businesses within CEG took effect 1 January 2021. Consideration A cash consideration equal to the tangible NAV excluding interest bearing debt and net cash plus an additional USS6 million
Slide 49: KAG restructure
KAG restructure . Invicta The transaction HOLDINGS LIMITED Invicta has reached agreement with our partner in the Chinese manufacturing business to enter into a series of transactions to unlock value. The transactions will restructure the business as follows: ¢ Before the transaction: * 100% sharehol
Slide 50: Looking Forward
Looking Forward Focus * Kian Ann restructure * BMG e-commerce * Acquisition opportunities Simplify * Group structure needs to be simplified * Continued improvement in reporting © & 31 March 2021 i. Invicta HOLDINGS LIMITED Gearing Levels * Invicta generates good cash flow * Bank gearing levels furth
Slide 51: Invicta Holdings Executive Management
Invicta Holdings Executive Management Company Secretary Chief Executive Officer Chief Financial Officer Commercial Director and Legal Advisor Steven Brian Joffe Nazlee Rajmohamed Craig Barnard Lize Dubery Invicta HOLDINGS LIMITED Od & Se CEO: ESG CEO: CEG CEO: KAG Gavin Pelser Tony Sinclair Loy Soo-
Slide 52: Thank you
1 Invicta LDINGS LIMITED www.invictaholdings.co.za Thank you for you attendance & participation 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 Limited |