final results presentation - invicta holdings · 2. effect of steinhoff collapse on invicta • in...

FINAL RESULTS PRESENTATIONfor the year ended 31 March 2018

Presented by Arnold Goldstone (Chief Executive Officer)

2Invicta Holdings Limited | Results Presentation 2018

Agenda

Results at a glance02Divisional review03

Group financial overview04Prospects and strategy05Appendix06

Capital Equipment Group (CEG)

Engineering Solutions Group (ESG)

First things first01


First things first


First things first

1. Specific Taxation Provision• Stakeholder and market commentary over the potential tax consequences of certain

transactions which Invicta entered into several years ago• Based on advice received, the board is of the view that the transactions are tax

compliant• However, ongoing uncertainty is affecting the Group and hampering its ability to use

equity to fund expansion• Pragmatic solution, which provides certainty, is preferable to potentially protracted and

costly litigation (significant management time and material opportunity cost for the Group)

• The company therefore continues to negotiate with SARS with a view to reaching agreement regarding the tax consequences of these transactions

• Taking all the above considerations into account, the board has concluded that an amount of R400 million is the best estimate of an additional provision for taxation, which has been raised in the AFS for FY 2018

• Should agreement not be reached with SARS and, if SARS elects to issue revised assessments, the Group will defend its position fully


First things first (continued)

2. Effect of Steinhoff collapse on Invicta• In wake of the collapse of Steinhoff International’s share price in Dec 2017, Invicta

undertook a full review and considered all possible contagion risks

• No direct links to Steinhoff

• Common major shareholder (Wiese family)

• BSG sold to Steinhoff Africa Retail Ltd in Sep 2017. All proceeds were received in full on the due date

• No direct fallout on Invicta

• No sale of shares by Wiese family

• Business as usual


First things first (continued)

3. Involuntary sale of shares by CEO • Recent SENS announcement regarding the involuntary sale of shares by an associate

company of the CEO

• Shares were owned by an associate company of the CEO, owned by a trust of which the director is a beneficiary but not a trustee

• Shares were pledged to the bank as security for a loan to associate 7 years ago

• Margin call (as a result of decline in IVT share price) which the borrower could not meet

• Some of the shares which had been pledged to the bank were sold by the bank

• Total of 300 000 shares were sold which equates to < 7% of CEO’s holdings

• JSE waiver obtained


The year in perspective


Revenue0%

to R9.6 billion

Operating profit before foreign exchange movements-11%to R940 million

Headline earnings per share before specific tax provision-23%to 464 cents

Headline earnings per share after specific tax provision-81%to 90 cents

Results at a glance


Profit before tax-15%to R760 million

NAV per share0%

4 691 cents

to 3 921 CENTS

TNAV PER SHARE2.0%

Results at a glance (continued)


The year in perspectiveTough markets, satisfactory results• The markets in which Invicta operates:

o Mining : Weak in South Africa but improving in rest of worldo Agriculture: Severe drought in Western Cape, low maize prices, land expropriation

uncertaintyo Industrial & manufacturing: Deterioration in activity in South Africao South East Asia: trading conditions improving

• Credit ratings downgrade in SA in Apr 2017• 1Q2018: GDP -2.2%. Worst Quarter since 1Q2009

› agriculture -24.2%› mining -9.9% and › manufacturing -6.4%


The year in perspective (continued)• Sale of BSG Sep 2017• SARS negotiations• Loss of New Holland Agricultural machinery agency May 2017• Volatile ZAR, political uncertainty until Dec 2017• Reduced staff by 265 (7%) in SA• Bottom of cycle?• Better outlook


The year in perspective Exchange rate volatility

1 Apr 2017 (13.42)15 June 2018 (13.39)

31 Mar 2018 (11.82)


Divisional review


Divisional structure

Capital Equipment GroupCEG

• Northmec• New Holland*• CSE• Doosan• HPE• Criterion• Shamrock Handling Concepts• ESP• Landboupart• Kian Ann Group (Singapore)

• BMG o Hanseno OSTo Screen Doctor

• Man-Dirk Groupo SA Toolo Sibuyile

• Autobax• Hyflo Group

Importer & distributor of agricultural equipment, construction equipment,

forklifts and aftermarket replacement spare parts

Leading distributor of engineering consumables products, technical

services and provider of engineering solutions

Engineering Solutions GroupESG

*Equipment sales discontinued May 2017 Aftermarket support continues (spare parts).


Revenue contribution by operating segment(excluding Head Office)

5,122 4,607 4,484 4,955 5,074

3,955 4,209 4,299 4,665 4,559

0

2,000

4,000

6,000

8,000

10,000

12,000

MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018

53%47%

8,8169,6339,620

8,7839,077

R’million

(52%)(48%)Engineering Solutions Group Capital Equipment Group

2018 (2017)


Operating profit contribution by operating segment after forex costs (excluding Head Office)

484 457 362 426 404

473 499406

486 460

0

200

400

600

800

1,000

1,200


47%53%

2018 (2017)

R’million

957 956

768

912864

(53%) (47%)Engineering Solutions Group Capital Equipment Group


Revenue contribution by region(continuing operations only)

**Target: 50% by 2020

79%

5%

11%5%

South Africa**

Africa

2018 (2017)

Asia

Other(4%)

(10%)

(6%)

(81%)


Revenue contribution by sector(continuing operations only)

(63%)

(5%)

2018 (2017)

14%

30%12%

General Trading

Agriculture & Forestry

(30%)

28%

16%Construction

Manufacturing & Industry

(16%)

(11%)

(14%)

(29%)

Mining


Return on Net Operating Assets (RONA)(based on average net operating assets)

17.5

%

20.6

%

19.2

%

21.8

%

24.1

%

22.0

%

19.4

%

27.3

%

9.0%

17.6

%

22.5

%

18.5

%

0%

5%

10%

15%

20%

25%

30%

FY 2016 FY 2017 FY 2018

CEG ESG Discont. Ops IVT Group

*Discontinued operations represents the Building Supplies Group which has been disposed of during the current year as well as the MacNeil Plastics business which remains as a discontinued operation.

*

Capital Equipment Group

DIVISIONAL REVIEW


Review of 2018

• Difficult trading conditions overcome by increased market share, better sales mix

• Activity in mining in general is saving construction unit sales

• Reduced level of investment in infrastructure by both private and public sectors

• Increase in demand in the South East Asia markets

• Strength of the South African Rand against the US Dollar contributing to more competitive prices –lower margins

• Good rains resulted in a record crop of 16.7m tons of maize however the maize price dropped by 37% on yellow and 52% on white to below R2000 a ton, affecting farmers liquidity.

• Operating margin decreases from 9.5% in 2017 to 8.9% in 2018

Revenue 2.4%

Operating profit before foreign exchange movements 3.8%


Review of 2018

Chief Executive OfficerTony Sinclair

Northmec NHSA CSE Doosan HPE Africa ESP Criterion Shamrock

Managing Director

Tony Sinclair

Managing Director

RossCollard

Managing Director

Darrel Holton

Managing Director

BrentonKemp

Managing Director

Andrew Grobler

Managing Director

Alex Ackron

Managing Director

Johan van der Merwe

Managing Director

Marius Schutte

Managing DirectorLoy Soo Chew


Final results summary31 March 2018

2,285 2,380 2,556

2,199 2,575 2,518

0

1,000

2,000

3,000

4,000

5,000

6,000

MAR 2016 MAR 2017 MAR 2018

5,074

7.9% 9.2% 8.5%

8.2%9.7% 9.3%

MAR 2016 MAR 2017 MAR 2018

2,255 2,306 2,410

1,000

1,250

1,500

1,750

2,000

2,250

2,500

MAR 2016 MAR 2017 MAR 2018

181 219 218

181251 234

0

100

200

300

400

500

600

MAR 2016 MAR 2017 MAR 2018

Revenue (R’m)

Operating profit margin (R’m)Net operating assets (R’m)

Operating profit before foreign exchange movements (R’m)

4,4844,955 452470

362

8.9%9.5%8.1%

First Half Second Half


Market volumes

• Agriculture equipment volumes

o Tractors 14%

o Combines 2%

o Sprayers 4%

• Construction equipment volumes

o Segments serviced by Invicta 15%

FY 2018


CEG’s volume increases

• Agriculture equipment volumes

o Tractors 40%

• Construction & Forklift equipment volumes

o Case 37%

o Hyundai 46%

o Forklift 15%

FY 2018


Yellow/White Maize prices/ZARMaize Safex Prices – May 2013 to April 2018

Pric

e in

ZAR

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

8-M

ay-1

311

-Jun-

1315

-Jul-1

316

-Aug

-13

19-S

ep-1

323

-Oct

-13

26-N

ov-1

331

-Dec

-13

3-Fe

b-14

7-M

ar-1

410

-Apr

-14

14-M

ay-1

417

-Jun-

1421

-Jul-1

422

-Aug

-14

25-S

ep-1

429

-Oct

-14

2-De

c-14

6-Ja

n-15

9-Fe

b-15

17-M

ar-1

520

-Apr

-15

22-M

ay-1

525

-Jun-

1529

-Jul-1

51-

Sep-

155-

Oct

-15

6-N

ov-1

510

-Dec

-15

26-Ja

n-16

29-F

eb-1

61-

Apr-

165-

May

-16

8-Ju

n-16

12-Ju

l-16

15-A

ug-1

616

-Sep

-16

20-O

ct-1

623

-Nov

-16

27-D

ec-1

630

-Jan-

1703

-Mar

-17

06-A

pr-1

710

-May

-17

13-Ju

n-17

17-Ju

l-17

18-A

ug-1

721

-Sep

-17

25-O

ct-1

728

-Nov

-17

2-Ja

n-18

05-F

eb-1

809

-Mar

-18

12-A

pr-1

8

Yellow Maize

White Maize


Sales analysis 31 March 2018

45%

51%

4%

Manufacturing & Industry

Agriculture & Forestry

Construction

2018


Tractor & Sprayers Market Share 31 December 2017

9%

14%

21%

20%

16%

22%

19%

32.4%

39%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2009 2010 2011 2012 2013 2014 2015 2016 2017

Sprayers

7.5%6.7%

8.1%

6.6%

8.4%

6.7%

5.5%

9.1%

11.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017

Tractors

Engineering Solutions Group

DIVISIONAL REVIEW


Review of 2018

Revenue 2%

Operating profit before foreign exchange movements 0%

• Satisfactory results considering the volatile year • BMG World Site Reveal – complete

• Wildcat strike Dec 2017 hurt operations

• Focussed on tight cost management

• Simplify for Success remained a high priority

• One acquisition – Fenner Belting (Sales & Marketing) – February 2018

• Since Y/E: Forge Industrial Group (Toolquip & Allied, F&H Machine Tools, Belt Brokers) – some conditions outstanding

• Trading conditions:o Mining: Continued closing / downscaling of operations

Major project work remained stagnant

o Agriculture: Spend recovery slow as rains returned, but Western Cape still heavily affected by drought

o Heavy industry: This continued to be a challenging market


Management structure

Man-Dirk Group Autobax Hyflo

Managing DirectorGavin Pelser

Managing DirectorGavin Hall

Managing DirectorJohn Black

Managing DirectorEmil Berning

Chief Executive OfficerGavin Pelser

BMG(Bearing Man Group)


Final results summary31 March 2018

2,085 2,346 2,270

2,214 2,319 2,289

0

1,000

2,000

3,000

4,000

5,000

6,000

MAR 2016 MAR 2017 MAR 2018

9.3% 10.3% 8.9%

9.6% 10.3% 12.1%

MAR 2016 MAR 2017 MAR 2018

1,936 2,039

2,321

1,6001,7001,8001,9002,0002,1002,2002,3002,400

MAR 2016 MAR 2017 MAR 2018

194 241 202

212239 277

0

100

200

300

400

500

600

MAR 2016 MAR 2017 MAR 2018

Revenue (R’m)

Operating profit margin (R’m)Net operating assets (R’m)



4,299 4,5594,665479480

406

10.5%10.3%9.4%


• Divisional performances:

o BMG: met expectations

o Autobax: excellent performance

o ManDirk: met expectations

o Hyflo: disappointing results; project work lumpy, muted; business restructured

• African operations:

o Good performance of African branches (weakened local currencies)

o Establishment of BMG Ghana – Trading commenced in February 2018

• Working capital:

o Increased stock as a result of the Fenner acquisition and strategic increase of certain stock subject to new import duties (fasteners) and increased lead times due to world demand

o Debtors book well managed; Debtors >R250,000 insured

Review of 2018


Revenue analysis31 March 2018

• Strategy of market differentiation by:o complementing product distribution with

technical expertise

• African revenue declined marginally as a % of ESG revenues mainly as a result of strengthening of the Rand

• The Fenner acquisition has mainly SA-based revenues

66%

34%

Consumables Engineering

88.4%

10.7%

0.9%(0.6%)

South Africa Africa Other

(35%)

(65%)(88%)

(11.4%)

2018 (2017)


28%

18%

14%

8%

7%

6%

4%

6%4%

1% Parastatals (1%)

(4%)

Sales by industry sector31 March 2018

2018 (2017)

Mining

Industry

Other

Cash Sales

Automotive & Transport

Food & Beverage

Projects / Consultants

Agriculture

Construction 3% Oil & Gas (1%)

(6%)

(4%)

(5%)

(7%)

(8%)

(20%)

(20%)

(24%)

Well diversified


Highlights for 2017/2018

14 - 16 September 20175,700 visitors over 3 days

BMG World site reveal

BMG – “Be Part” staff engagement initiative


Highlights for 2017/2018 (cont.)

Acquisition – Fenner Belting


Highlights for 2017/2018 (cont.)Regional Service Centres

PORT ELIZABETH

CAPE TOWN

DURBAN


Group financial overview


Revenue

5,129 5,2704,389 4,727 4,857

5,336 5,190

4,4104,905 4,783

0

2000

4000

6000

8000

10000

12000


First Half Continuing Second Half Continuing

10,460

8,799

9,632 9,64010,465

*Restated


Operating profit


9.6%8.1% 8.6% 9.3% 8.8%

10.3%10.0% 8.4%

12.5%

10.7%



10.0%**

**Excluding once-off items

493 427 377

440 426

550

518

372

611 514

69

34

0

200

400

600

800

1,000

1,200


Once-off Second Half Continuing First Half Continuing

1,043

940

1,0511,014

Operating margin (%)

9.8%8.5%**9.0%**

783

10.9%


580510

393 383

126

64

42

-2 -3

21

66

70

74 82

84

69

31

150

400

-100

0

100

200

300

400

500

600

700

800


Ordinary s/h Minority s/h Pref s/h Once-off Tax Provision

R’m

illio

n

710

612

496

691

Attributable earnings (R’m)

631


358293

207 253

242

430

361

160

246250

88

29

0

100

200

300

400

500

600

700

800

900

1,000


First Half Second Half Once-off

107m weighted average nr of ordinary shares

359

EPS after specific tax prov

Cent

s

118

Earnings per share

78m weighted average nr of ordinary shares

Rights issue

788742

396

499

*Restated

492


Headline earnings

31 March 2018 31 March 2017R’million Audited % ChangeAttributable Earnings 126,215 533,304 (76)Adjustments

Headline EPS adjustments on discontinued operations – (578)Impairment of intangible assets – –Gain from bargain purchase price recognised – (235)Impairment of PPE – 3,517(Profit)/Loss on disposal of investments (24,440) 5,286Profit on disposal of other assets (326) (231)Net profit on disposal of PPE (13,335) (11,355)Impairment of goodwill 4,767 3,089

Total adjustments before taxation and NCI (33,334) (507)Taxation 11,532 1,456 NCI – 307Total adjustments (21,802) 1,256Headline Earnings 104,413 534,560 (80)


Dividend per share

84 67 72 69

11275 95 50

-

50

100

150

200

250

300

350

2015 2016 2017 2018

Cent

s per

shar

e

Interim Final

196

Feb 2015: Special dividend of 2 024 cps was paid

142167

Salient dates for the 2018 Final Dividend

Last day to trade to be eligible for the dividend Tuesday 24 July 2018

Shares commence trading “ex” the dividend Wednesday 25 July 2018

Record date in respect of dividend Friday 27 July 2018

Dividend payments Monday 30 July 2018

18%

119


Cash flow movement - 2018

701

1,013 (585)

(136)(264)

(163)(234)*

404**135 (19) 5 857 (11) 846

- 200 400 600 800

1,000 1,200 1,400 1,600 1,800 2,000

R’m

illio

n

* Capex of R285m less proceeds on sale of PPE R51m** Acquisitions of R99m less disposals of R50,3m

Chart1

Net cash at 31 March 2016Net cash at 31 March 2016Net cash at 31 March 2016

Operating cash flows before WCOperating cash flows before WCOperating cash flows before WC

Working capitalWorking capitalWorking capital

Net finance costsNet finance costsNet finance costs

Dividends paidDividends paidDividends paid

Taxation paidTaxation paidTaxation paid

Net additions to PPE & intangiblesNet additions to PPE & intangiblesNet additions to PPE & intangibles

Net investments in subs & assocNet investments in subs & assocNet investments in subs & assoc

Net liabilities raisedNet liabilities raisedNet liabilities raised

Forex loss on cash balanceForex loss on cash balanceForex loss on cash balance

Net acquisition of NCINet acquisition of NCINet acquisition of NCI

Net cash at 31 March 2017Net cash at 31 March 2017Net cash at 31 March 2017

Net cash transferred to assets H4 saleNet cash transferred to assets H4 saleNet cash transferred to assets H4 sale

Net cash from continiung operationsNet cash from continiung operationsNet cash from continiung operations

Column1

Column2

Column3

R’million

(585)

(136)

(264)

(163)

(234)*

404**

135

(19)

5

(11)

2 217

0

701

701

1013

1129

585

993

136

729

264

566

163

332

234

332

404

736

135

852

19

852

5

0

857

846

11

0

846

Sheet1

Column1Column2Column3

Net cash at 31 March 2016- 0701701701

Operating cash flows before WC7011,0131,7141,7141,013

Working capital1,1295851,7141,129-585

Net finance costs9931361,129993-136

Dividends paid729264993729-264

Taxation paid566163729566-163

Net additions to PPE & intangibles332234566332-234

Net investments in subs & assoc332404736736404

Net liabilities raised736135871871135

Forex loss on cash balance85219871852-19

Net acquisition of NCI85258578575

Net cash at 31 March 2017- 0857857857- 0

Net cash transferred to assets H4 sale84611857846-11

Net cash from continiung operations- 0846

To resize chart data range, drag lower right corner of range.


Prospects and strategy


Prospects• Current trading conditions:

• ESG improving• CEG no meaningful improvement yet• South East Asia continued growth

• Benefits of relocations, restructurings and expansions beginning to bear fruits• e-Commerce• Big focus on

• margin improvement and cost control • working capital improvement• cash generation

• SARS settlement – negotiations ongoing. Outcome will determine availability of cash resources

• Local and international investments, good opportunities in SA• Secondary listing to expand the Group’s international footprint in a measured and focused

approach (table being prepared to list offshore, only when right offshore acquisition opportunity presents itself)


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

• Acquire businesses that are a strategic fit for the Group

• Maintain RONA >20% for each of the underlying businesses

• Target real, sustainable growth


Q & AThank you for your attendance and participation

www.invictaholdings.co.za

For any further Investor Relations questions please contact:

Arnold Goldstone (CEO) [email protected]

Craig Barnard (CFO) [email protected]

Marlize Keyter (Keyter Rech Investor Solutions) [email protected]

087 351 3810

http://www.invictaholdings.co.za/mailto:[email protected]:[email protected]:[email protected]


Appendix


Statement of Profit or Loss and other Comprehensive Income

31 March 2018 31 March 2017R'million Audited % ChangeContinuing operationsRevenue 9,640 9,632 0Operating profit before foreign exchange movements 940 1,051 (11)Net foreign exchange cost (71) (41) 75Operating profit 869 1,010 (14)Interest paid (947) (889) 6Dividends received from financial investments 332 303 10Share of profits of associates 14 4Interest received 492 469 5Profit before taxation from continuing operations 760 897 (15)Income tax expense (536) (322) (67)Profit for the year from continuing operations 224 575 (61)Discontinued operationsProfit for the year from discontinued operations 8 37 (79)Profit for the year 231 612 (62)


Statement of Profit or Loss and other Comprehensive Income

31 March 2018 31 March 2017R'million Audited % ChangeProfit attributable to:Owners of the company 126 533 (76)Non-controlling interest 21 (3)Preference shareholders 84 82 2

231 612 (62)Earnings per share from continuing operations (cents) 111 465 (76)Earnings per share (cents) 118 499 (76)Headline EPS from continuing operations (cents) 90 466 (81)Headline EPS and diluted HEPS (cents) 98 500 (80)Weighted average shares in issue (‘000) 106,953 106,953 0


Statement of Financial Position

31 March 2018 31 March 2017R'million Audited % ChangeASSETSNon-current assetsProperty, plant and equipment 1,721 1,641 5Financial investments - 1,982 (100)Goodwill 661 615 7Other intangible assets 175 161 (9)Financial assets - 64 (100)Finance lease receivables 49 46 7Long-term receivables 4 3,374 (100)Investment in associates 119 103 15Deferred taxation 200 181 10Non-current assets 2,929 8,167 (64)



31 March 2018 31 March 2017

R'million Audited % Change

Current assets 7,386 8,098 (9)

Inventories 3,918 3,663 7

Trade and other receivables 1,620 1,542 5

Current portion of finance lease receivables 49 41 20

Current portion of financial investments 588 709 (17)

Current portion of long-term receivables 11 2

Taxation prepaid 25 16 57

Bank and cash balances 1,017 1,052 (3)

7,228 7,025 3

Assets classified as held for sale 158 1,073 (85)

TOTAL ASSETS 10,315 16,265 (37)



31 March 2018 31 March 2017


EQUITY

Equity attributable to the equity holders 4,990 5,116 (3)

Non-controlling interest 99 152 (35)

SHAREHOLDERS' EQUITY 5,090 5,268 (3)

Shares in issue (‘000) 108,495 108,495 -

Net asset value per share (cents) 4,691 4,715 -

Tangible net asset value per share (cents) 3.921 4,000 (2)



31 March 2018 31 March 2017


Non-current liabilities

Long-term borrowings 1,647 6,793 (76)

Financial liabilities - 64 (100)

Deferred taxation 38 35 9

Non-current liabilities 1,685 6,892 (76)



31 March 2018 31 March 2017


Current liabilities 3,540 4,105 (14)

Trade and other payables 1,685 1,939 (13)

Provisions 178 198 (10)

Share appreciation rights liability 1 6 (83)

Taxation liabilities 583 170 243

Shareholders for dividends 49 50 (2)

Current portion of long-term borrowings 756 864 (13)

Bank overdrafts 170 206 (18)

3,422 3,433 (0)

Liabilities associated with assets held for sale 118 672 (82)

TOTAL LIABILITIES 5,225 10,997 (53)

TOTAL EQUITY AND LIABILITIES 10,315 16,265 (37)


Group structure

BBEE & Staff Trusts

Invicta Holdings

SA Non -SA

Invicta SAInvicta

PropertiesInvicta

TreasuryInvicta

FinanceInvicta Offshore

Holdings

ESG CEG Invicta African Holdings

Invicta Asian Holdings

BMGMan-DirkAutobax

OSTSA ToolHansenHyflo

Sibuyile

NorthmecNew Holland*

CSEDoosan

HPEESP

CriterionShamrock

Kian Ann & subsidiaries in

South East Asia

MozambiqueZambia

TanzaniaDRC

Ghana

25% 75% 100% 100% 100% 100%

100% 100% 100% 100%

*Equipment sales discontinued. Aftermarket support continues (spare parts)


Capital Equipment (SA))

• Northmec (Agricultural Machinery)• New Holland* (Agricultural Machinery)• CSE (Earthmoving Machinery)• Doosan (Earthmoving Machinery)• HPE (Hyundai Earthmoving)• Criterion (Forklifts)• ESP (Parts)• 138 dedicated outlets

*Equipment sales discontinued. Aftermarket support continues (spare parts)


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, USA and Myanmar• Joint venture in India• Associate in China

Kian Chue Hwa Industries • One of Asia’s largest independent distributors of

commercial and industrial vehicle parts• HQ in Singapore• Subsidiaries in Indonesia, Thailand and Malaysia• Associate in Myanmar


Engineering Solutions

• BMG (Bearing Man Group)o Engineering components & technical serviceso 102 brancheso Bearings, Seals, PT, Tools, Fastenerso Drives, Motors, Belting, Field Serviceso Filtration, Hydraulics, Lubrication, Pneumatics

• Hansen• Man-Dirk Group (incl SA Tool)

o Tools & equipmento 20 branches & subsidiaries

• Autobaxo Automotiveo 3 branch network

• OST• Hyflo

Engineering Solutions


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)


ARNOLD GOLDSTONE

Executive Management Team

BOARD OF DIRECTORSDr Christo Wiese (Non-Executive Chairman)

ENTITY

Invicta Holdings

Capital Equipment Group

Engineering Solutions Group

CHIEF FINANCIAL OFFICERCHIEF EXECUTIVE OFFICER

CRAIG BARNARD

TONY SINCLAIR GEOFF BALSHAW

GAVIN PELSER BENNIE GROENEWALD


Shareholding as at 31 March 2018

47%

38%

7%4%

Public

Directors’ Total % 53%

Public % 47%

Wiese Family

Sherrell Family

Goldstone Family

2% Samuels Family 1% Exec Directors

1% Treasury

FINAL RESULTS PRESENTATIONAgendaSlide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9The year in perspectiveThe year in perspective (continued)The year in perspective Exchange rate volatilitySlide Number 13Divisional structureRevenue contribution by operating segment�(excluding Head Office)Operating profit contribution by operating segment after forex costs (excluding Head Office)Revenue contribution by region�(continuing operations only)Revenue contribution by sector�(continuing operations only)Return on Net Operating Assets (RONA)�(based on average net operating assets)DIVISIONAL REVIEWReview of 2018Review of 2018Final results summary�31 March 2018Market volumes� CEG’s volume increases�Yellow/White Maize prices/ZARSales analysis �31 March 2018Tractor & Sprayers Market Share �31 December 2017DIVISIONAL REVIEWReview of 2018Management structureFinal results summary�31 March 2018Slide Number 33Revenue analysis�31 March 2018Sales by industry sector�31 March 2018Highlights for 2017/2018 Highlights for 2017/2018 (cont.)Highlights for 2017/2018 (cont.)Slide Number 39��Operating profitAttributable earnings (R’m)Earnings per shareHeadline earningsDividend per shareCash flow movement - 2018 Slide Number 47ProspectsStrategyQ & ASlide Number 51Statement of Profit or Loss and other Comprehensive IncomeStatement of Profit or Loss and other Comprehensive Income Statement of Financial PositionStatement of Financial PositionStatement of Financial PositionStatement of Financial PositionStatement of Financial PositionGroup structureSlide Number 60Capital Equipment (Kian Ann Group)Slide Number 62Group profit driversExecutive Management TeamShareholding as at 31 March 2018

final results presentation - invicta holdings · 2. effect of steinhoff collapse on invicta • in...

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