26/01/2016 HOLDINGS LIMITED Group Interim Results Presentation for - PDF document

26/01/2016 HOLDINGS LIMITED Group Interim Results Presentation for the six months ended 31 October 2015 Agenda HOLDINGS LIMITED • Financial review • Six months in review • Divisional overview • Infrastructure division • Consumer goods division • Conclusion 1

26/01/2016 Achievements HOLDINGS LIMITED Achievements Successfully completed the 2 nd Rights Offer - July 2015 • • Capital raised - R180 million • Number of shares in issue - 620 158 235 • Used R150 million to settle debt • Group corporate restructure completed • Group debt restructure completed New structure HOLDINGS LIMITED HOLDINGS LIMITED 100% 100% Ellies Electronics Holdings Ellies Electronics Holdings Megatron SA (Pty) Ltd Megatron SA (Pty) Ltd (Pty) Ltd (Pty) Ltd (Infrastructure business) (Infrastructure business) 100% 100% 100% Ellies Electronics (Pty) Ellies Electronics (Pty) Ellies Properties Ellies Properties Megatron International Ltd Megatron International Ltd Ltd (Consumer business) Ltd (Consumer business) (Pty) Ltd (Pty) Ltd (Mauritius) (Mauritius) • Debt levels : • Ellies Electronics – R200m overdraft facility • Ellies Properties – R53 million • R33 million – five year amortizing • R20 million – five year bullet • Megatron SA – R95 million, 5 year bullet 2

26/01/2016 Financial review HOLDINGS LIMITED Discontinued operations – IFRS 5 • Infrastructure segment • Scale down and shut down of the South African operations • Sale of the Telecoms business (November 2015) • Consumer goods and Property segment • Unbundling and separate listing delayed due to regulatory issues • Company to pursue as soon as possible Financial results Revenue (DOWN 2.3%) R 989.1 million • Megatron Infrastructure continued UP 26.4% to R 205.1 million • Megatron Infrastructure discontinued DOWN 66.1% to R 46.9 million • Ellies Consumer and properties UP 3.3% to R 737.1 million Operating profit / loss (UP 133.4%) R 10.4 million • Megatron Infrastructure continued UP 104.1% to a profit of R 0.6 million • Megatron Infrastructure discontinued DOWN 122.7% to a loss of R 23.1 million • Ellies consumer and Properties UP 876.1% to a profit of R 32.8 million 3

26/01/2016 Financial results Loss before taxation (IMPROVED 93.49%) R 3.8 million • Megatron Infrastructure continued - profit of R 0.3 million • Megatron Infrastructure discontinued - loss of R23.1 million • Ellies Consumer and Properties-profit of R19.0 million Loss after taxation (IMPROVED 79.19%) R 8.9 million • Megatron Infrastructure continued - profit of R 0.9 million • Megatron Infrastructure discontinued - loss of R 23,0 million • Ellies Consumer and Properties - profit of R 13.1 million Financial results Headline (Loss) / Earnings Per Share Cents per share At 31 October 2015 At 31 October 2014 At 30 April 2015 Total (1.02) (13.17) (81.34) - Infrastructure continued 0.03 (6.22) (60.22) - Infrastructure discontinued (3.42) (2.46) (6.24) - Consumer and property discontinued 2.36 (4.50) (14.92) Number of shares At 31 October 2015 At 31 October 2014 At 30 April 2015 In issue at period end 620 158 235 303 505 691 453 057 398 Weighted average number of shares 583 633 462 303 505 691 354 135 067 4

26/01/2016 Financial results Value Per Share Cents per share At 31 October 2015 At 31 October 2014 At 30 April 2015 Net Asset Value 166.75 327.81 190.76 Net Tangible Asset Value 130.03 258.90 140.70 Number of shares At 31 October 2015 At 31 October 2014 At 30 April 2015 In issue at period end 620 158 235 303 505 691 453 057 398 Weighted average number of shares 583 633 462 303 505 691 354 135 067 Statement of comprehensive income Infrastructure – continued operation R’000 6 months 6 months 12 months 31 October 2015 31 October 2014 30 April 2015 (Restated) (Restated) Revenue 205 112 160 910 201 315 Operating profit / (loss) 957 (15 890) (259 660) Profit / (loss) before taxation 648 (29 439) (286 277) Taxation 259 8219 35 067 Taxation rate (40%) 27.9% 12.2% Profit / (loss) for the period 907 (21 220) (251 210) • Discontinued operations losses – R 23,1 million • Continued operations: • Returned to profit • Improved liquidity as a result of capital raising 5

26/01/2016 Statement of financial position - assets Infrastructure R’000 At 31 October 2015 At 31 October 2014 At 30 April 2015 Non-current Assets 319 847 250 274 248 631 Property, plant and equipment 22 625 28 801 23 254 Goodwill and other intangible assets 173 041 207 859 173 407 Other financial assets 1 199 694 1 144 Trade and other receivables 35 196 - - Amounts due from contract customers 36 350 - - Deferred taxation 51 436 12 920 50 826 Current Assets 526 566 727 629 536 100 Total assets 846 413 977 903 834 248 • Goodwill impairments at October 2014 • Certain projects (R36.4 million) have been pushed out beyond 12 months • Project completed in October 2015 – payments due over 30 months: • Non-current portion R35,2 million • Current portion R25,5 million • In process of finalizing a discounting arrangement for these amounts Statement of financial position - assets Infrastructure R’000 At 31 October 2015 At 31 October 2014 At 30 April 2015 Non-current Assets 319 847 250 274 248 631 Current Assets 473 293 727 629 536 100 Inventories 5 510 100 950 15 824 Trade and other receivables 181 532 156 450 132 584 Amounts due from contract customers 264 925 435 172 348 615 Taxation receivable 162 29 266 29 267 Bank and cash balances 21 164 5 791 9 810 Assets held for disposal 53 273 - 49 517 Total assets 846 413 977 903 834 248 • Tax refund received - R29 million • Comparison of bank overdraft and interest bearing debt – October 2014 vs October 2015: • Not comparable as circumstances were different due to restructuring • Assets held for disposal – represents the discontinued infrastructure assets 6

26/01/2016 Statement of financial position - liabilities Infrastructure R’000 At 31 October 2015 At 31 October 2014 At 30 April 2015 Non-current liabilities 100 771 19 035 96 210 Current liabilities 204 406 519 019 211 294 Interest bearing liabilities 164 240 711 210 Vendor loan payable 3 000 3 000 3 000 Shareholder loans payable 342 - 311 Trade and other payables 190 829 167 656 186 915 Amount due to contract customers 8 171 18 511 13 662 Provisions 1 314 1 414 7 116 Taxation payable 551 26 45 Shareholders dividends 35 35 35 Bank overdraft - 87 666 - Liabilities held for disposal 13 029 - 4 444 Total liabilities 318 206 538 054 311 948 • Comparison of bank overdraft and interest bearing debt – October 2014 vs October 2015: • Not comparable as circumstances were different due to restructuring • Provision reversal is the utilisation of ‘Onerous provisions’ raised • Liabilities held for disposal – represents the discontinued infrastructure liabilities Statement of comprehensive income - Consumer goods and Property R’000 6 months 6 months 12 months 31 October 2015 31 October 2014 30 April 2015 Revenue 737 102 713 284 1 388 932 Operating profit / (loss) 32 807 (4 227) (50 293) Profit / (loss) before taxation 18 587 (18 847) (75 952) Taxation (5 362) 4 642 18 825 Taxation rate 28.8% 24.6% 24.8% Profit / (loss) for the period 13 225 (14 205) (57 127) • Revenue maintained in trying consumer environment • Slight improvement in margins • Overhead reduction - constantly under review • For the year ended 30 April 2015: • Stock impairments – R68 million • Sale of Eskom LED’s and other related product as cost or below cost in order to improve liquidity 7

26/01/2016 Statement of financial position- assets Consumer goods and Property R’000 At 31 October 2015 At 31 October 2014 At 30 April 2015 Non-current Assets 204 262 224 219 207 094 Property, plant and equipment 137 519 150 604 142 061 - Land and buildings 88 763 97 887 89 201 - Other 48 756 52 717 52 860 Goodwill and other intangible assets 53 672 55 663 53 672 Investment in associate 10 712 11 271 10 011 Deferred taxation 2 359 6 681 1 350 Current assets 706 995 817 613 692 173 Inventories 493 062 584 457 467 080 Trade and other receivables 202 334 208 588 211 210 Taxation receivable 456 975 1 283 Bank and cash balances 11 143 23 593 12 600 Total assets 911 257 1 041 832 988 267 • Land and buildings – still trying to unlock this value through sale • Inventory levels have improved relative to April 2015 Reduced inventory R’000 At 31 October 2015 At 31 October 2014 At 30 April 2015 Inventories 493 062 584 457 467 080 • Quantum lower as cost of goods approximately 20% higher due to exchange rate • New inventory items at October 2015: • DTT inventory and WIP – R18 million • Battery and invertors – R30 million • Reduced large amounts of older technology lighting • Lowered the amount of months stocking by managing supply chain better 8