Context to results PSV HOLDINGS LIMITED NTAV of 18.76 cps is 56% - PDF document

PSV HOLDINGS LIMITED Interim results presentation to shareholders Six months ended 31 August 2014 PSV HOLDINGS LIMITED Context to results PSV HOLDINGS LIMITED NTAV of 18.76 cps is 56% * greater than share price showing underlying value in the business Omnirapid continues to produce strong and steady results African Cryogenics remains profitable * Based on a share price of 12 cps as at 11 November 2014 2 1

Background to the six months PSV HOLDINGS LIMITED Negatives  Strike actions (Mining & NUMSA) impacted operations  High head office costs  Major Engineered Linings customer went into liquidation  Cash reserves reduced to fund losses  Working capital management  Poor performance from Turbo Group due to delayed contracts Positives  Integration of African Cryogenics progressing well  Engineered Linings losses stopped. Business now cash generative  Omnirapid remain profitable despite tough economic conditions 3 Make up of operating segments PSV HOLDINGS LIMITED Industrial Supplies (sale of goods & service) Specialised Services (manufacturing & installation) 4 2

African footprint PSV HOLDINGS LIMITED Democratic Republic of the Congo Head Office Kolwezi Johannesburg Kitwe Zambia Regional Offices Turbo Agencies Zimbabwe Namibia Botswana Gaborone Kolwezi (DRC) Cape Town Jhb Kitwe (Zambia) Kitwe (Zambia) Gaborone (Botswana) Gaborone (Botswana) Cape Town 5 FINANCIAL OVERVIEW PSV HOLDINGS LIMITED 6 3

Statement of comprehensive income PSV HOLDINGS LIMITED Unaudited Unaudited Audited 31 Aug 2014 31 Aug 2013 28 Feb 2014 R '000s R '000s R '000s Revenue 135 947 225 512 391 121 Gross profit 26 825 43 475 72 186 Gross profit % 19.7% 19.3% 18.5% Operating expenses (37 288) (34 225) (74 724) Operating (loss) / profit (10 463) 9 248 (2 538) Net finance charges (1 626) (1 017) (2 230) (Loss) / PBT for the period from continuing operations (12 089) 8 231 (4 768) Taxation 1 623 (3 154) 11 458 (Loss) / Profit for the period from continuing operations (10 466) 5 077 6 690 (Loss) from discontinued operations - (4 838) (4 837) Total comprehensive income / (loss) for the period (10 466) 239 1 853 7 Statement of comprehensive income PSV HOLDINGS LIMITED Unaudited Unaudited Audited 31 Aug 2014 31 Aug 2013 28 Feb 2014 R '000s R '000s R '000s Revenue 135 947 225 512 391 121  Strike action negatively impacted the whole group  Engineered Linings right sized 8 4

Statement of comprehensive income PSV HOLDINGS LIMITED Unaudited Unaudited Audited 31 Aug 2014 31 Aug 2013 28 Feb 2014 R '000s R '000s R '000s Revenue 135 947 225 512 391 121 Gross profit 26 825 43 473 72 186 Gross profit % 19.7% 19.3% 18.5% Operating expenses (37 288) (34 225) (74 724) Operating (loss) / profit (10 463) 9 248 (2 538) Net finance charges (1 626) (1 017) (2 230) (Loss) / PBT for the period from continuing operations (12 089) 8 231 (4 768) Q1 Q2 Total Revenue 57 598 78 349 135 947 Gross Profit 8 179 18 646 26 825 Gross Profit % 14.20% 23.80% 19.73% EBITDA (7 460) 466 (6 995) PBT/(Loss) (9 866) (2 223) (12 089) 9 Statement of comprehensive income PSV HOLDINGS LIMITED Unaudited Unaudited Audited 31 Aug 2014 31 Aug 2013 28 Feb 2014 R '000s R '000s R '000s Revenue 135 947 225 512 391 121 (R2,0m) Strike action Gross profit 26 825 43 475 72 186 (R1,9m) Write-offs associated with Protech Khuthele Gross profit % 19.7% 19.3% 18.5% (R2,5m) Protech Khuthele non-invoiced amount Operating expenses (37 288) (34 225) (74 724) Retrenchment costs, relocation costs AC, EL operating Operating (loss) / profit (10 463) 9 248 (2 538) (R4,1m) losses, Turbo operating losses Net finance charges (1 626) (1 017) (2 230) (R10,5m) (Loss) / PBT for the period from continuing operations (12 089) 8 231 (4 768) Taxation 1 623 (3 154) 11 458 (Loss) / Profit for the period from continuing operations (10 466) 5 077 6 690 (Loss) from discontinued operations - (4 838) (4 837) Total comprehensive income / (loss) for the period (10 466) 239 1 853 10 5

Earnings per share PSV HOLDINGS LIMITED 31 Aug 2014 31 Aug 2013 Basic (loss)/earnings per share (cents) (3.98) 0.09 Headline (loss)/earnings per share (cents) (4.01) 2.00 Diluted (loss)/earnings /(loss) per share (cents) (3.98) 0.09 Diluted headline (loss)/earnings per share (cents) (4.01) 1.99 Actual number of shares in issue at end of the period 272 548 272 548 Weighted number of shares in issue at end of the period 262 990 263 781 Fully diluted weighted average number of shares in issue at end of the period 263 218 265 308 11 Consolidated balance sheet PSV HOLDINGS LIMITED Unaudited Audited 31 Aug 2014 28 Feb 2014 ASSETS Non-current assets 69 075 73 057 Current assets 116 012 115 996 Inventory 29 852 29 358 Trade and other receivables 65 633 58 033 Taxation receivable - 894 Cash and cash equivalents 20 527 27 711 Total assets 185 087 189 053 EQUITY AND LIABILITIES Equity 88 293 99 000 Non-current liabilities 12 948 15 367 Current liabilities 83 846 74 686 Current portion of deferred purchase consideration 5 722 6 599 Taxation payable 2 456 3 171 Current portion of long term liabilities 3 135 2 836 Trade and other payables 51 245 45 407 Bank overdraft 21 288 16 673 Total equity and liabilities 185 087 189 053 12 6

Liquidity analysis PSV HOLDINGS LIMITED 31 Aug 2014 28 Feb 2014 Current ratio 1.38 1.55 Acid Test ratio 1.03 1.16 Debt Equity (interest-bearing) 44.14% 38.12% Debt Equity (net of cash) 20.89% 10.12% Interest cover (net interest) (6.44) 9.10 Total interest-bearing debt 38 972 37 734 31 Aug 2014 28 Feb 2014 Earthwise Loan 5 989 7 258 Repayable in full 28 Feb 2016 bears interest at prime + 1% Parry Loan 3 000 4 000 Repayable in full 28 Feb 2015 bears interest at prime Finance Leases and Repayment period ranges 3 to 5 years at interest rates 8 695 9 803 Loan varying between 8 to 11%. Bank Overdraft 21 288 16 673 38 972 37 734 13 Liquidity analysis PSV HOLDINGS LIMITED 31 Aug 2014 28 Feb 2014 Current ratio 1.38 1.55 Acid Test ratio 1.03 1.16 Debt Equity (interest-bearing) 44.14% 38.12% Debt Equity (net of cash) 20.89% 10.12% Interest cover (net interest) (6.44) 9.10 Total interest-bearing debt 38 972 37 734 Total interest-bearing debt net of cash 18 445 10 024 NAV per share (cents) 33.57 37.88 NTAV per share (cents) 18.76 22.65 14 7

Segmental PSV HOLDINGS LIMITED Segment GP % Revenue - Aug 2014 Revenue – Aug 2013 50% 40% 30% 49% 51% 12.0% 30% 16.1% 70% 20% 26.3% 21.5% 10% Specialised Services Industrial Supplies 0% Aug 2014 Aug 2013 15 Industrial Supplies PSV HOLDINGS LIMITED Aug 2014 Aug 2013 Aug 2014 Aug 2013 Turnover R95,5m R115,8m 70% 51% GP margin 21.5% 26.3% PBT % (0.1)% 8.8% Industrial Supplies Omnirapid – reduced turnover and profitability, cash generative Turbo Agencies incurred losses  K&M Mining Botswana ‒ Mining contracts not yet renewed  Mutanda Mining  Orapa Mining ‒ Inflated infrastructural costs  First Quantum ‒ Bad debts 16 8

Specialised Services PSV HOLDINGS LIMITED Aug 2014 Aug 2013 Aug 2014 Aug 2013 Turnover R42,3m R109,7m 30% 49% GP margin 16.1% 12.0% PBT % (9.5)% 2.0% Specialised Services African Cryogenics - new facility improving efficiencies ─ Cash generative ─ Affected by industrial strike action ─ Development of new tanker designs and technologies 17 Specialised Services PSV HOLDINGS LIMITED Engineered Linings - radical downsizing ─ Infrastructure costs cut by 75% ─ Payment arrangements in place Focus on smaller low value, high margin installations Risk profile of business is now more positive 18 9

Abridged cashflow statement PSV HOLDINGS LIMITED 31 Aug 2014 (R ‘000s) 28 Feb 2014 (R ‘000s) 11 038 Cash and cash equivalents at beginning of period / year 16 749 (9 507) (3 140) Cash flows from operations 2 996 Cash flows from investing activities 4 320 (5 288) Cash flows from financing activities (6 891) (761) Cash and cash equivalents at end of period / year 11 038 19 PSV HOLDINGS LIMITED PROSPECTS PSV HOLDINGS LIMITED 20 10

Remedial actions taken - Post interims PSV HOLDINGS LIMITED Head Office Industrial Supplies Specialised Services Cancellation of lease due to landlord Omnirapid moved into Engineered Linings non performance African Cryogenics facility ‒ Management restructured ‒ PSV Holdings taken over admin Relocated to new offices Turbo Agencies: & finance functions ‒ Mid management replaced ‒ 30% reduction in headcount Reduced head office staff numbers as part of turnaround plan ‒ Break-even position reduced by 75% ‒ Revamp of offices ‒ Payment terms with critical suppliers ‒ Centralised procurement in SA negotiated ‒ Implementing new operating African Cryogenics procedures ‒ Improved operating and production ‒ Head count reduction: efficiencies due to facility consolidation • 52% in Zambia ‒ Aggressive marketing to gas • 33% in Botswana companies in SA combating imports Operating cost Effective from Operating cost Effective from Effective from EL cost saving Nov Feb Sep saving of saving of of 50% 20% 70% 2014 2015 2014 21 Potential cost savings PSV HOLDINGS LIMITED Approximate: Head office costs R1 000 000 pm Remedial Omnirapid R50 000 pm action Turbo Agencies R200 000 pm will alleviate cash flow African Cryogenics R100 000 pm pressure Engineered Linings R200 000 pm Full impact of cost savings to be realised in 2016 22 11