Group Annual Results Presentation for the year ending 30 April 2017 - PowerPoint PPT Presentation

HOLDINGS LIMITED Group Annual Results Presentation for the year ending 30 April 2017

Agenda HOLDINGS LIMITED  Financial review  Deconsolidation  Restructuring of debt  Divisional overview • Satellite • Electrical • Lighting • Corporate • DTT • Future product  Conclusion

Key Achievements HOLDINGS LIMITED Achievements  Restructuring of debt  Optimization - Lowering of stock  Reduction of operational cost  New product possibilities

Financial Results Key Indicators HOLDINGS LIMITED Improvement Deterioration 2017 2016  Turnover 2% (Rm) 1 331 (Rm) 1 362  Loss after tax 52% (Rm) (249) (Rm) (514)  Cashflow from operating activities 338% (Rm) 53 (Rm) (23)  Headline loss 87% (Rm) 46 (Rm) 334  Headline loss-consumer* 72% (Rm) (13) (Rm) 18  Headline loss per share 87% (Rm) 7.45 (Rm) 57.35 *Impairment of inventory (50) (8), Retrenchments (11) (0)

Financial Results Key Indicators HOLDINGS LIMITED **Extracts from statement of profit and loss and other comprehensive Income 2017 2016 R ’ 000 R ’ 000 Revenue 1 331 1 362 Gross Profit 336 406 Gross Profit Percentage 25% 30% Operating Expenses (27%) (29%) (360) (388) Loss for the period (249) (514)

Financial Results Key Indicators HOLDINGS LIMITED 2017 2016 Consumer Consumer Goods and Goods and Profit and loss statement services Properties Manufacturing Total services Properties Manufacturing Total R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 Revenue 1,163,313 - 166,668 1,329,981 1,143,762 - 184,530 1,328,292 Cost of sales -846,859 - -132,561 -979,420 -775,346 - -141,380 -916,726 Gross (loss)/profit 316,454 - 34,107 350,561 368,416 - 43,150 411,566 27% 0% 20% 26% 32% 0% 23% 31% Other income -3,980 8,855 - 4,875 -1,722 11,468 - 9,746 Operating expenses -315,441 -5,980 -31,581 -353,002 -329,970 -3,647 -26,613 -360,230 27% 0% 19% 27% 29% 0% 14% 27% Depreciation -5,215 -397 -4,948 -10,560 -8,496 -417 -4,611 -13,524 Operating (loss)/profit before impairment -8,182 2,478 -2,422 -8,126 28,228 7,404 11,926 47,558 Impairments -17,614 -17,181 - -34,795 - - - - Loss from operations -25,796 -14,703 -2,422 -42,921 28,228 7,404 11,926 47,558 Interest received 2,867 - - 2,867 2,315 - 13 2,328 Interest paid -2,789 -8,593 -11,388 -22,770 -8,130 -8,341 -10,951 -27,422 Share of losses from associates -2,427 - - -2,427 -2,601 - - -2,601 Profit/(loss) before taxation -28,144 -23,296 -13,809 -65,249 19,812 -937 988 19,863 Taxation 9,578 5,022 47 14,647 2,098 288 -3,930 -1,544 Loss for the year -18,566 -18,274 -13,762 -50,602 21,910 -649 -2,942 18,319 Adjustements Impairments -34,795 - Inventory provision -50000 8000 Retrenchment provision -11000 - Taxation 14,647 -1,544 Normalised 30,546 27,863 Botjheng cash burn R200k per month

Financial Results Key Indicators HOLDINGS LIMITED 2017 2016 Consumer Consumer Statement of financial Goods and Goods and position services PropertiesManufacturing Total services Properties Manufacturing Total R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 585145 66891 104798 756834 618539 86057 114028 818624 Fixed assets 21377 32182 22933 76492 26494 76891 19205 122590 Trade and other receivables 180349 667 9198 190214 124867 3330 15371 143568 Inventories 303577 0 70925 374502 380358 0 79433 459791 Bank and cash balances 14417 513 205 15135 10745 124 19 10888 Non-current assets held for sale 0 27130 0 27130 0 5667 0 5667 Other assets 65425 6399 1536 73360 76075 45 0 76120 313717 38643 46546 398906 240863 49580 31093 321536 Long-term liabilities 599 30090 0 30689 -533 37100 0 36567 Trade and other payables 120487 218 40962 161667 92360 518 26744 119622 Bank overdraft 120410 0 0 120410 136623 0 0 136623 Other liabilities 72221 8335 5584 86140 12413 11962 4349 28724 Net assets 271429 28248 58252 357929 377676 36477 82935 497088 Inventory 102 126 Creditors 44 33 Debtors 52 39 Working capital days 110 133 Target 100

Deconsolidation HOLDINGS LIMITED  Company applied IFRS 10 de-consolidate when an entity losses control and IFRS 5, restating for discontinued operations No longer on our balance sheet as at 30 April 2017 (deconsolidated)  Megatron SA (Pty) Ltd was placed under control of a Business Rescue Practitioner  Megatron Towers (Pty) Ltd was placed under control of a Liquidator  Megatron Namibia (Pty) Ltd sold

Deconsolidation HOLDINGS LIMITED Infrastructure Deconsolidated Deconsolidated at R178 million loss Continuing  Botjheng Water (Pty) Ltd:- • Lombards performance guarantee R17,5m called • Remains operational off low cost base to finish legacy projects • Maintain claim against partner (complete April 2018) • Deconsolidation - net profit of R83m will be realised

Restructured Debt HOLDINGS LIMITED  Standard Bank restructured the companies debt that includes contamination of Megatron R60m  R170 - 5yrs term debt - R85m bullet - R85M amortising loan  R135 - short term facility  Levels of financial covenant reset to fit financial model & base case financial performance outlook.

Divisional Overview HOLDINGS LIMITED Sales  To remain the same for retail  Bigger concentration on Independents per category  Big drive on corporate offerings

Divisional Overview HOLDINGS LIMITED Satellite  Previous year: Sales increased on DSTV product  Introduction of a fully installed explorer  New initiatives to grow into informal sector  Increase connectivity offering

Divisional Overview HOLDINGS LIMITED Electrical  Decline due to low cost product  Inefficient monitoring by NRCS  New designs – USB  New moulds  Retail indents

Divisional Overview HOLDINGS LIMITED Lighting  Lamp for life sales lower than predicted  Residential lamp : Better Performance  OEM lighting product  Floodlight range – new ALS range  Mighty light solar floodlights  20 new technology products in the last year  Duties

Corporate HOLDINGS LIMITED

Divisional Overview HOLDINGS LIMITED Corporate  Lighting • New highbays, integrated fittings & floods  Competitive pricing  Traction with larger corporations

Office Lighting HOLDINGS LIMITED Malls & Retail Stores

Food Retail HOLDINGS LIMITED Restaurants

Showroom HOLDINGS LIMITED

Divisional Overview HOLDINGS LIMITED TV Distribution  DSTV went onto new satellite now using high band & low band  New fibre & SatCR offerings  Collaboration with fibre companies

Divisional Overview HOLDINGS LIMITED Audio • Continue to install and supply to most retail shops • Increased offering , now doing AV

Solar HOLDINGS LIMITED

Divisional Overview HOLDINGS LIMITED Solar  Competitive price offerings  Partnered with finance solution companies

DTT HOLDINGS LIMITED  Drive on installations 500 000 by year end  Halt on manufacturing  New tenders on set top boxes  Future?

New Products HOLDINGS LIMITED

New Products HOLDINGS LIMITED  New Products • Arrival of IPTV • Roku • Netflix, Kwese, NBA • All things wireless

Conclusion HOLDINGS LIMITED  Dealing with the last of infrastructure  Reinvented ourselves – leaner and meaner  Aligned to market  Install confidence in the brand  Build investor confidence

HOLDINGS LIMITED For any further Investor Relations Thank you Questions please contact: for your attendance and Wayne Samson Group CEO participation 011 490 3840 Lynne Bothma Keyter Rech Investor Solutions 087 351 3815