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FINAL RESULTS PRESENTATIONfor the year ended 31 March 2018
Presented by Arnold Goldstone (Chief Executive Officer)
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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
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3Invicta Holdings Limited | Results Presentation 2018
First things first
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4Invicta Holdings Limited | Results Presentation 2018
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
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5Invicta Holdings Limited | Results Presentation 2018
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
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6Invicta Holdings Limited | Results Presentation 2018
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
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7Invicta Holdings Limited | Results Presentation 2018
The year in perspective
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8Invicta Holdings Limited | Results Presentation 2018
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
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9Invicta Holdings Limited | Results Presentation 2018
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)
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10Invicta Holdings Limited | Results Presentation 2018
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%
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11Invicta Holdings Limited | Results Presentation 2018
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
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12Invicta Holdings Limited | Results Presentation 2018
The year in perspective Exchange rate volatility
1 Apr 2017 (13.42)15 June 2018 (13.39)
31 Mar 2018 (11.82)
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13Invicta Holdings Limited | Results Presentation 2018
Divisional review
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14Invicta Holdings Limited | Results Presentation 2018
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).
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15Invicta Holdings Limited | Results Presentation 2018
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)
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16Invicta Holdings Limited | Results Presentation 2018
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
MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018
47%53%
2018 (2017)
R’million
957 956
768
912864
(53%) (47%)Engineering Solutions Group Capital Equipment Group
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17Invicta Holdings Limited | Results Presentation 2018
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%)
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18Invicta Holdings Limited | Results Presentation 2018
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
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19Invicta Holdings Limited | Results Presentation 2018
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.
*
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Capital Equipment Group
DIVISIONAL REVIEW
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21Invicta Holdings Limited | Results Presentation 2018
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%
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22Invicta Holdings Limited | Results Presentation 2018
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
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23Invicta Holdings Limited | Results Presentation 2018
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
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24Invicta Holdings Limited | Results Presentation 2018
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
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25Invicta Holdings Limited | Results Presentation 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
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26Invicta Holdings Limited | Results Presentation 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
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27Invicta Holdings Limited | Results Presentation 2018
Sales analysis 31 March 2018
45%
51%
4%
Manufacturing & Industry
Agriculture & Forestry
Construction
2018
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28Invicta Holdings Limited | Results Presentation 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
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30Invicta Holdings Limited | Results Presentation 2018
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
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31Invicta Holdings Limited | Results Presentation 2018
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)
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32Invicta Holdings Limited | Results Presentation 2018
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)
Operating profit before foreign exchange movements (R’m)
First Half Second Half
4,299 4,5594,665479480
406
10.5%10.3%9.4%
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33Invicta Holdings Limited | Results Presentation 2018
• 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
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34Invicta Holdings Limited | Results Presentation 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)
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35Invicta Holdings Limited | Results Presentation 2018
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
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36Invicta Holdings Limited | Results Presentation 2018
Highlights for 2017/2018
14 - 16 September 20175,700 visitors over 3 days
BMG World site reveal
BMG – “Be Part” staff engagement initiative
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37Invicta Holdings Limited | Results Presentation 2018
Highlights for 2017/2018 (cont.)
Acquisition – Fenner Belting
-
38Invicta Holdings Limited | Results Presentation 2018
Highlights for 2017/2018 (cont.)Regional Service Centres
PORT ELIZABETH
CAPE TOWN
DURBAN
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39Invicta Holdings Limited | Results Presentation 2018
Group financial overview
-
40Invicta Holdings Limited | Results Presentation 2018
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
MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018
First Half Continuing Second Half Continuing
10,460
8,799
9,632 9,64010,465
*Restated
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41Invicta Holdings Limited | Results Presentation 2018
Operating profit
Operating profit before foreign exchange movements (R’m)
9.6%8.1% 8.6% 9.3% 8.8%
10.3%10.0% 8.4%
12.5%
10.7%
MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018
First Half Second Half
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
MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018
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%
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42Invicta Holdings Limited | Results Presentation 2018
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
MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018
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
-
43Invicta Holdings Limited | Results Presentation 2018
358293
207 253
242
430
361
160
246250
88
29
0
100
200
300
400
500
600
700
800
900
1,000
MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018
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
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44Invicta Holdings Limited | Results Presentation 2018
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)
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45Invicta Holdings Limited | Results Presentation 2018
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
-
46Invicta Holdings Limited | Results Presentation 2018
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.
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47Invicta Holdings Limited | Results Presentation 2018
Prospects and strategy
-
48Invicta Holdings Limited | Results Presentation 2018
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)
-
49Invicta Holdings Limited | Results Presentation 2018
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
-
50Invicta Holdings Limited | Results Presentation 2018
Q & AThank 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@kris.co.za
087 351 3810
http://www.invictaholdings.co.za/mailto:arnoldg@invictaholdings.co.zamailto:craigb@invictaholdings.co.zamailto:mkeyter@kris.co.za
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51Invicta Holdings Limited | Results Presentation 2018
Appendix
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52Invicta Holdings Limited | Results Presentation 2018
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)
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53Invicta Holdings Limited | Results Presentation 2018
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
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54Invicta Holdings Limited | Results Presentation 2018
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)
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55Invicta Holdings Limited | Results Presentation 2018
Statement of Financial Position
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)
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56Invicta Holdings Limited | Results Presentation 2018
Statement of Financial Position
31 March 2018 31 March 2017
R'million Audited % Change
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)
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57Invicta Holdings Limited | Results Presentation 2018
Statement of Financial Position
31 March 2018 31 March 2017
R'million Audited % Change
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)
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58Invicta Holdings Limited | Results Presentation 2018
Statement of Financial Position
31 March 2018 31 March 2017
R'million Audited % Change
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)
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59Invicta Holdings Limited | Results Presentation 2018
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)
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60Invicta Holdings Limited | Results Presentation 2018
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)
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61Invicta Holdings Limited | Results Presentation 2018
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
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62Invicta Holdings Limited | Results Presentation 2018
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
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63Invicta Holdings Limited | Results Presentation 2018
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)
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64Invicta Holdings Limited | Results Presentation 2018
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
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65Invicta Holdings Limited | Results Presentation 2018
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
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