HOLDINGS LIMITED Group Final Results Presentation for the year ended 30 April 2015
Agenda • Restructure • Financial results • Group • Infrastructure • Consumer • Infrastructure overview • Consumer overview • Questions
Restructure HOLDINGS LIMITED SA (PTY) LTD ELECTRONICS (PTY) LTD
Restructuring Old structure New structure Ellies Holdings Ellies Holdings Ellies Holdings Ellies Holdings Limited Limited Limited Limited 100% 100% Ellies Properties Ellies Properties Ellies Electronics Ellies Electronics Ellies (Pty) Ltd Ellies (Pty) Ltd (Pty) Ltd (Pty) Ltd Holdings (Pty) Ltd Holdings (Pty) Ltd 100% 100% Ellies Electronics Ellies Electronics Infrastructure Infrastructure Megatron SA (Pty) Megatron SA (Pty) Consumer Division Consumer Division (Pty) Ltd (Pty) Ltd Ellies Properties Ellies Properties Division Division Ltd (Infrastructure Ltd (Infrastructure (Consumer (Consumer (Pty) Ltd (Pty) Ltd business) business) business) business) In order to house stand alone debt facilities for both • The consumer business was sold to from Ellies (Pty) Ltd to businesses, an internal restructure of the group has been Ellies Electronics (Pty) Ltd. effectively implemented on 1 May 2015 (New structure) • In preparation for further potential restructuring, Ellies Electronics has its own holding company. • Ellies (Pty) Ltd, which kept the Infrastructure business, changed its name to Megatron SA (Pty) Limited.
Financial results
Financial results 14.4 % Revenue R 1.8 billion 14.4% • Infrastructure continued down 43% to R 414 million • Consumer and Properties up 1% to R 1 389 million 481,3% Operating loss R 347.1 million 329.2% • Infrastructure continued - loss of R258,7 million • Consumer and Properties - loss of R50,3m
Financial results 14.4 % 481.3% Loss before taxation R 396.6 million • Infrastructure continued - loss of R 285,4 million • Consumer and Properties - loss of R 73,2 million HLPS 81.34 cents 446.7% Infrastructure continued loss of 60.11 cents • • Consumer and Properties loss of 14.92 cents
Financial results NAV per share 190.76 cents 44.1% NTAV per share 140.70 cents 44.7% Number of shares in issue: At year end 453 057 398 Post July 2015 Rights Issue 620 158 235
Statement of Comprehensive Income Infrastructure R’000 12 months 12 months 30 April 2015 30 April 2014 Revenue 316 366 531 676 Operating (loss) / profit (259 317) 62 692 (Loss) / profit before taxation (285 934) 44 935 Taxation 34 971 (12 756) Taxation rate 12.2% 28.4% (Loss) / profit for the year (250 963) 32 179 • Revenue was severely impacted by: The ability to execute in a timely manner due to liquidity constrains. • • Revenue from discontinued operations of R97,9 million not included. • Tax rate low due to reversal of prior year deferred tax assets in Botjheng Water and not raising the current values in Megatron SA.
Statement of Financial Position - Assets Infrastructure R’000 Key items At 30 April 2015 At 30 April 2014 Non-current Assets 248 631 Property, plant and equipment 23 254 29 504 Goodwill and other intangible assets 173 407 207 708 Other financial assets 1 144 4 264 Deferred taxation 50 826 - Current Assets 484 277 Inventories 15 824 113 759 Trade and other receivables 80 761 152 351 Amounts due from contract customers 348 615 420 497 Taxation receivable 29 267 28 631 Bank and cash balances 9 810 Assets held for disposal 49 517 Total assets 782 425
Statement of Financial Position – Liabilities Infrastructure R’000 Key items At 30 April 2015 At 30 April 2014 Non-current liabilities 96 210 TERM debt – 5 year Current liabilities 159 472 Interest bearing liabilities 210 Vendor loan payable 3 000 3 000 Shareholder loans payable 311 Trade and other payables 135 093 160 193 Amount due to contract customers 13 662 17 368 Provisions 7 116 1 750 Taxation payable 45 Shareholders dividends 35 Liabilities held for disposal 4 444 Total liabilities 260 126
Statement of Comprehensive Income Consumer and Property R’000 12 months 12 months 30 April 2015 30 April 2014 Revenue 1 388 932 1 379 326 Operating (loss) / profit (50 293) 101 075 (Loss) / profit before taxation (75 952) 71 006 Taxation 18 825 (23 080) Taxation rate 24.8% 32.5% (Loss) / profit for the year (57 127) 47 926 • Revenue maintained in trying consumer environment. • Stock impairments. • Sale of Eskom LED’s and other related product as cost or below cost in order to improve liquidity.
Statement of financial position - Assets Consumer and Property R’000 Key items At 30 April 2015 At 30 April 2014 Non-current Assets 207 094 Property, plant and equipment 142 061 150 131 - Land and buildings 89 201 96 155 - Other 52 860 53 976 Goodwill and other intangible assets 53 672 Investment in associate 10 011 Deferred taxation 1 350 Current Assets 743 996 Inventories 467 080 633 146 Trade and other receivables 263 033 243 064 Taxation receivable 1 283 Bank and cash balances 12 600 Total assets 951 090
Statement of financial position - Assets Consumer R’000 At 30 April 2015 At 30 April 2014 Inventories 467 080 633 146 April 2015 April 2014 April 2013 467 080 633 146 521 830 • R63.8m inventory impairments mainly, resulting from cancelled projects. • Reduced OVHD stock at year end and further reductions post year end. Further reductions expected over the next 12 – 18 months. •
Statement of financial position – Liabilities Consumer and Property R’000 At 30 April 2015 Key items At 30 April 2014 Non-current liabilities 48 946 R45m of Property debt – 5 year Current liabilities 569 397 Interest bearing liabilities 154 796 Will reduce by R150m post RO Trade payables 282 496 307 566 Bank overdraft 128 818 Other 3 287 Total equity and liabilities 618 343
Contributors and prospects
Contributors and prospects Infrastructure Contributors to current year performance Strategic reduction in South African manufacturing NUMSA strike action • • Supply chain disruption • Slowdown in local mining spend • Reduced local government spend • Losses of approximately R25 million Retrenchment costs of R3.1 million •
Contributors and prospects Infrastructure Infrastructure Projects • Liquidity challenges impacted on revenue but with fixed costs • Extension of time related costs • Delay damages Once off and non-cash items Impairment of goodwill of R34.4 million relating to Botjheng Water • • Reversal of prior year deferred tax assets of approximately R9,1 million • Deferred tax assets of approximately R27,5 million not raised in the current year • Impairments to accounts and construction receivables of approximately R84.2million Retrenchment costs paid of approximately R1.6 million • • Onerous contract provision raised of R4.1 million
Contributors and Prospects Infrastructure Prospects Improved liquidity in the 2 nd quarter • Favorable debt package in place • • Completion of onerous contracts • Completion of projects with extended payment terms Fixed cost structure reduced by 50% from 2 nd quarter • • Order book until 2018 intact going forward Substantial new project pipeline •
Contributors and prospects
Contributors and prospects Consumer Back up generation • Load Shedding has contributed to a significant increase in sales Concentration on retail domestic products • • Locally manufactured and assembled inverter trolleys are the biggest sellers • Marketing drive to educate and promote our backup power products on TV, radio, digital and social media
Contributors and prospects Consumer
Contributors and prospects Consumer Satellite MultiChoice • Slow down of MultiChoice sales • New offering of vouchers • Rugby World Cup promo • Satellite product approved for MultiChoice Africa
Contributors and prospects Consumer OVHD • Platco has subsidized the product since December • Over 70 000 sold since December • Reduced stock holding
Contributors and prospects Consumer Consumer Lighting • Commercial lighting still gaining momentum • Consumer Lighting unregulated, very competitive • New range launching for festive season
Contributors and prospects Consumer Digital Terrestrial Television Usaasa (Universal Service and Access Agency of South Africa) • Approved supplier for 2 tenders • Satellite • Aerials Multichoice • Approved supplier for DTT rollout
Thank you for your attendance and participation www.elliesholdings.com www.ellies.co.za For any further Investor Relations questions please contact: Wayne Samson (CEO) 011 490 3840 Irwin Lipworth (CFO) 011 490 3939 Ryan Otto (MD Infrastructure) 011 976 3009 Lynne Bothma (Keyter Rech Investor Solutions): 087 351 3815
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