Interim Results Presentation for the six months ended 31 October 2013

January 2014

• Financial indicators

• Six months in review

• Financial performance

• Divisional results

• Prospects

Agenda

Financial Indicators

Financial Indicators

R33.3m

Revenue R 1 083.4 million

EBITDA R 123.8 million

Profit after taxation R 76.1 million

HEPS 25.09 cents

Cash R(38.1) million

NAV per share 20.1 % 341.31 cents

NTAV per share 21.5 % 254.44 cents

3.8%

40.9%

40.9%

37.5%

R29.2m

Six months in review

146,718

Consumer Goods

Continued growth in store within a store roll out

Sold 26% of manufacturing entity (Ellies Industries) to BEE staff trust

Delay in OVHD launch – middle October 2013

Lack of Eskom RMR roll out

October 2012 = R 220 million contribution to revenue

Depressed consumer market

Rand Dollar exchange rate

Six months in review

146,718

Infrastructure

Inclusion of Botjheng Water effective 1 May 2013

Growth in transformer manufacturing

Recurring revenue from existing customers

No delayed or suspension of projects in Africa

Sold 49% Andrews Towers to allow for broad based ownership

structure to increase South African market penetration – Post reporting

period

Six months in review

Infrastructure

Construction: Electrical and instrumentation

Rand Water Zuikerbosch Water Treatment Works – South Africa – 2014

Metelong Water Treatment Works - Lesotho – 2014

Ndola Lime Recapitalization Project – Zambia – 2014

Transmission and Distribution Lines – Mozambique – 2014

Current projects and timelines

Water Metelong – Lesotho

146,718

Infrastructure

Power Projects

Fungurume Substation – SNEL – DRC - 2014

Overhead Lines – Eskom – South Africa - 2014

Current projects and timelines

D.R.C.

146,718

Infrastructure

Housing Solutions

Lubumbashi Housing – D.R.C –2014

Current projects and timelines

146,718

Infrastructure

Renewable Energy

Solar Powered Custom Containerised Solutions – South Africa - Continuous

Transformer Compact Substations for REIPPP projects–2014/2015

Current projects and timelines

146,718

Infrastructure

Current projects and timelines

Telecommunications

Integrated Power Solutions (formerly “DGO”)

continues to garner interest in South Africa.

Sales are increasing and all units installed are

performing according to expectations.

Units have been installed at heavy traffic sites.

Megatron Towers has recorded impressive

growth in revenues.

Financial performance

116 413 189 676

146 718

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

2014 2013

1 Half 2 Half

Revenue (R’000) Operating profit (R’000)

R’000 Six months 31 October 2013

Six months 31 October 2012

12 months 30 April 2013

% change

Revenue 1 083 441 1 125 748 1 996 053 (3.8)

Operating profit 116 413 189 676 336 394 (38.6)

Operating profit margin 10.7% 16.8% 16.9%

Profit before taxation 105 921 178 689 312 869 (40.7)

Taxation (29 797) (49 898) (88 023) (40.3)

Taxation rate 28.1% 27.9% 28.1%

Profit for the year 76 855 128 791 225 437 (40.9)

Statement of comprehensive income

1 083 441 1 125 748

870 305

0250 000500 000750 000

1 000 0001 250 0001 500 0001 750 0002 000 0002 250 000

2014 2013

1 Half 2 Half

Cen

ts p

er

sh

are

R’000

Six months 31 October 2013

Six months 31 October 2012

% change

12 months 30 April 2013

Headline earnings for period 76 160 128 877 (40.9%) 224 588

Weighted average shares in issue 303 505 691 303 505 691 303 505 691

Basic earnings per share (cents) 25.27 42.59 (40.7%) 74.24

Headline earnings per share (cents) 25.09 42.46 (40.9%) 74.00

25.09

42.46

20.98 15.12

31.54

33.47

16.30

0

10

20

30

40

50

60

70

80

2014 2013 2012 20111 Half 2 Half

31.54

Headline earnings per share

R’000 At 31 October

2013

At 30 April 2013

At 31 October

2012

Non-current Assets 472 266 409 485 375 394

Property, plant and equipment 180 184 163 115 127 246

- Land and buildings 91 217 86 140 78 047

- Other 88 967 76 975 49 199

Goodwill and other intangible assets 263 252 226 182 226 139

Investment in associate 11 153 10 491 8 967

Deferred taxation 17 677 9 697 13 042

Current Assets 1 527 727 1 282 644 1 076 227

Inventories 738 322 667 983 630 582

Trade and other receivables 512 018 392 259 274 591

Construction Contracts 243 936 158 651 155 434

Taxation receivable 2126 447 590

Bank and cash balances 31 325 63 304 15 030

Total assets 1 999 993 1 692 129 1 451 621

Statement of financial position - assets

R’000 At 31 October

2013

At 31 October

2012

%

Change

At 30 April

2013

Capital and reserves 1 035 322 862 206 20.1 958 467

Non-current liabilities 336 698 162 936 106.6 260 266

Current liabilities 627 973 426 479 47.2 473 396

Total equity and liabilities 1 999 993 1 451 621 37.8 1 692 129

NAV per share (cents) 341.31 284.08 20.1 315.80

NTAV per share (cents) 254.44 209.37 21.5 241.12

Statement of financial position – equity & liability

R’000 At 31 October 2013

At 30 April 2013

At 31 October 2012

Gross profit % 37.4% 41.7% 40.5%

Debt to equity ratio 40.1% 31.5% 22.5%

Debt to equity ratio (excl property) 33.3% 24.5% 16.6%

Return on Shareholder Funds (ROE) 22.2% 35.7% 45.3%

Return on Total Assets % (incl Goodwill)

10.6% 18.0% 23.3%

Return Tangible Asset % 13.5% 23.3% 31.5%

EBITDA / net interest (times) 12.25 15.93 18.75

Statistics

R’000 31 October 2013

Cash flows from operations

Net profit before tax 105 921

Non- cash effects (e.g. Depreciation etc.) and other

7 215

Taxation paid (31 907)

Working capital movement:

Cash Flows – Consumer (126 163)

Cash Flows – Infrastructure (WIP/Construction)

(80 755)

Cash Flows – Infrastructure (Other) (6 221) (213 139) (131 910)

Cash flow movement

R’000 31 October 2013

Cash flows from operations (131 910)

Cash flows from investing

Property , plant and equipment:

- Properties (5 298)

- Plant and equipment (17 318)

Payments – Botjheng Water (7 446)

Other (829) (30 891)

Cash flows from financing

Repayment of term loans & asset instalment agreements (21 813)

New term loan & asset instalment agreements obtained 152 767 130 954 (31 847)

Cash at the beginning of the period (8 906)

Acquired as part of business combination 2 630

Cash at the end of the period (38 123)

Cash flow movement

31 October 2013 30 April 2013 31 October 2012

Inventory days 198.63 209.60 171.66

Inventory days excluding WIP 195.68 189.39 149.26

Trade receivables days on turnover

75.66 62.92 65.07

Trade Payable days on operating costs

82.68 75.57 55.90

Working capital

Divisional results

677 438

406 003

1 083 441

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

Consumer Goods Infrastructure Total

Revenue (R000)

Consumer Goods Infrastructure Total

Segmental contributions

62.5%

37.5%

65 765

127 759 47 203

60 239

0

50 000

100 000

150 000

200 000

H1 2014 H1 2013

Consumer Goods and Services Infrastructure

Revenue (R’000) Operating profit (R’000)

9.7

17.0

11.6

16.3

0.0

5.0

10.0

15.0

20.0

H1 2014 H1 2013

Consumer Goods and Services Infrastructure

Segmental operating profit margin (%)

70 536 132 756

49 257

63 253

0

50 000

100 000

150 000

200 000

250 000

H1 2014 H1 2013

Consumer Goods and Services Infrastructure

EBITDA (R’000)

677 438 749 848

406 003 368 799

0

500 000

1 000 000

1 500 000

H1 2014 H1 2013

Consumer Goods and Services Infrastructure

Divisional contributions

Prospects

Threats and concerns

Slow retail sales

Margin squeeze

No regulation of illegal product

Exchange Rate

Consumer Goods and Services prospects

Growth in Commercial Lighting division

Focus on small to medium businesses

Replacing existing lights with energy efficient

Bulking up division

Consumer Goods and Services prospects

SkyeVine turnaround on track

Partnerships with Iburst, Dupont and others

Operational break even

Consumer Goods and Services prospects

Consumer Goods and Services prospects

OVHD Launch was disappointing with various confusing reports

Multichoice sales steady

Launching of new products with increase in R & D

Launched fridge safe, TV safe

Final approval stages of new Remote Blaster

Stronger focus on locally manufactured products

Consumer Goods and Services prospects

DTT

Decision finally made on set top box control

Launch imminent

Consumer Goods and Services prospects

146,718

Infrastructure

Megatron Federal is looking forward to another exciting year with strong prospects in new and existing markets.

The company has secured a number of exciting projects.

Key Projects - >US$200 million extending into 2016

2MW Solar Plant – D.R.C

Substations and Overhead Lines – D.R.C

Energy Efficiency – D.R.C

Hydroelectric Generation Facility – Nigeria

Housing Project – Republic of D.R.C.

Renewable Energy Independent Power Producer Programme – South Africa

Infrastructure prospects

Kalkbult

Adapting for the future

www.elliesholdings.com

www.ellies.co.za

For any further Investor Relations questions please contact:

Wayne Samson (CEO): 011-490-3840

Lynne van der Schyff (Keyter Rech Investor Solutions): 011-447-2993

Thank you for your

attendance and

participation