INTERIM RESULTS PRESENTATION for the six months ended 30 September - PowerPoint PPT Presentation

INTERIM RESULTS PRESENTATION for the six months ended 30 September 2017 Presented by Arnold Goldstone (Chief Executive Officer)

Agenda 01 THE PERIOD IN PERSPECTIVE 02 DIVISIONAL REVIEW Capital Equipment Group (CEG) Engineering Solutions Group (ESG) 03 GROUP FINANCIAL OVERVIEW 04 PROSPECTS AND STRATEGY 05 APPENDIX Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 2

THE PERIOD IN PERSPECTIVE Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 3

Highlights REVENUE 2.7% TO R4.86 BILLION OPERATING PROFIT BEFORE FOREIGN EXCHANGE MOVEMENTS 3.8% R426 MILLION EARNINGS PER SHARE FROM CONTINUING OPERATIONS 0% 242 CENTS CONSISTENT DIVIDEND COVER Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 4

Highlights (continued) PROFIT BEFORE TAXATION 8.7% R399 MILLION NAV PER SHARE 8.0% 4924 CENTS TNAV PER SHARE 11.1% 4218 CENTS DIVIDEND PER SHARE (DIVIDEND COVER MAINTAINED) 4.2% 69 CENTS Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 5

The period in perspective Excellent results on the back of difficult trading conditions • Mining activity depressed in SA (Mining charter changed controversially in Mar 17) • Mining activity in rest of world improving (rising commodity prices) • Agriculture: Recovered from drought except in Western Cape • Loss of New Holland Agricultural machinery agency 1 May 17 (no material impact on profits) • Industrial & manufacturing: no recovery yet in South Africa • Political upheaval in SA • Volatile ZAR • BMG World refurbishment complete – site opened Sep 17 • Sale of BSG confirmed 30 Sep 17; cash flows after 1 Oct 17 • Kian Ann improving Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 6

DIVISIONAL REVIEW Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 7

Divisional structure CAPITAL EQUIPMENT GROUP ENGINEERING SOLUTIONS GROUP Importer & distributor of agricultural Leading distributor of engineering equipment, construction equipment, consumables and provider of forklifts and aftermarket engineering solutions replacement parts • • BMG Northmec • Hansen New Holland* o • OST CSE o • • Man-Dirk Doosan • SA Tool HPE o • Sibuyile ESP o • • Autobax Criterion • • Hyflo Kian Ann Group *Equipment sales discontinued. Aftermarket support continues (spare parts). Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 8

Revenue contribution by operating segment (excluding Head Office) R’million 7,000 5,749 5,773 6,000 5,269 5,306 5,129 917 1,023 5,000 565 837 936 4,000 2,270 1,978 2,346 2,028 2,085 3,000 2,000 2,583 2,556 2,404 2,380 2,285 1,000 0 SEP 2013 SEP 2014 SEP 2015 SEP 2016 SEP 2017 Discontinued operations 16% (18%) 45% (41%) Capital Equipment Group 40% Engineering Solutions Group (41%) Sep 2017 (Sep 2016) Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 9

Operating profit before foreign exchange movements contribution by operating segment (excluding Head Office) R’million 600 503 488 446 500 32 437 44 421 18 48 400 46 220 241 202 300 209 194 200 251 219 218 100 181 180 0 SEP 2013 SEP 2014 SEP 2015 SEP 2016 SEP 2017 Discontinued operations 4% (9%) Capital Equipment Group 50% 46% Engineering Solutions Group (43%) (48%) Sep 2017 (Sep 2016) Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 10

Revenue contribution by region (continued operations only) Other 5% (4%) Asia 11% (8%) 7% (10%) Africa 77% South Africa* (78%) Sep 2017 (Sep 2016) *Target: 50% by 2020 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 11

Revenue contribution by sector (continued operations only) 18% (28%) Construction 30% General Trading (18%) 27% (24%) 14% Mining (15%) Agriculture & Forestry 11% (15%) Manufacturing & Industry Sep 2017 (Sep 2016) Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 12

Return on Net Operating Assets (RONA) (based on average net operating assets) 35% 30% 25% Sep’17 Annualised 20% 15% 10% 5% 25.8% 29.8% 30.9% 24.8% 17.5% 21.8% 19.4% 17.6% 20.6% 24.1% 27.3% 22.5% 17.1% 19.4% 17.0% 16.7% 0% FY 2015 FY 2016 FY 2017 SEP 2017 CEG ESG Discontinued operations IVT Group Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 13

DIVISIONAL REVIEW Capital Equipment Group

Review of 1H2018 Revenue 7.4% Operating profit before foreign exchange movements 0% • Challenging market conditions in Agriculture and Construction sectors in SA • Agriculture – Record maize crop of 17 million tons however price per ton reduced by 67% resulting in demand for machinery remaining flat o Group tractor unit sales volumes increased by 40% compared to prior period • Construction machinery sales were subdued in most segments although there are positives indications coming from the mining sector o Group construction unit sales volumes increased 38% in light equipment compared to prior period • 100 year drought in the Western Cape affecting agriculture machinery sales and after market spares sales • Retained 91% on New Holland agriculture machinery parts • Forklift business performed well due to increased short term rentals • Improved absorption rate providing a strong base for margin flexibility in machinery margins • Good stock control resulting in positive cash flow • Good opportunities for growth in declining markets Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 15

Management structure Chief Executive Officer Tony Sinclair New Northmec CSE Doosan HPE ESP Criterion Holland Managing Managing Managing Managing Managing Managing Managing Director Director Director Director Director Director Director Johan Tony Sinclair Brenton Darrel Holton Alex Andrew Brenton van der Merwe Kemp Ackron Grobler Kemp Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 16

Interim results summary 30 September 2017 OPERATING PROFIT BEFORE FOREIGN REVENUE (R’m) EXCHANGE MOVEMENTS (R’m) 6,000 600 4,955 4,484 470 5,000 500 362 4,000 400 2,575 251 2,199 2,556 3,000 300 218 181 2,000 200 2,556 2,380 2,285 219 218 1,000 100 181 0 0 MAR 2016 MAR 2017 MAR 2018 MAR 2016 MAR 2017 MAR 2018 NET OPERATING ASSETS (R’m) OPERATING PROFIT MARGIN (R’m) 9.5% 2,500 8.1% 2,250 9.7% 2,000 8.2% 2,608 8.5% 1,750 2,306 2,255 1,500 9.2% 8.5% 7.9% 1,250 1,000 MAR 2016 MAR 2017 MAR 2018 MAR 2016 MAR 2017 MAR 2018 First Half Second Half Once-off Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 17

Market volumes FY 2018 • Agriculture equipment volumes in total market (April to Sept 2017 compared to the same period 2016) Tractors 9.7% o Combines 2.0% o • Construction equipment volumes in total market Segments serviced by Invicta 20% o Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 18

Price in ZAR Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 18-Jan-10 11-Mar-10 4-May-10 25-Jun-10 18-Aug-10 11-Oct-10 2-Dec-10 Yellow/White Maize prices/ZAR 25-Jan-11 18-Mar-11 11-May-11 4-Jul-11 Maize Safex Prices – January 2010 to May 2017 25-Aug-11 18-Oct-11 9-Dec-11 6-Feb-12 29-Mar-12 24-May-12 17-Jul-12 7-Sep-12 31-Oct-12 26-Dec-12 19-Feb-13 12-Apr-13 5-Jun-13 29-Jul-13 19-Sep-13 12-Nov-13 6-Jan-14 27-Feb-14 22-Apr-14 13-Jun-14 6-Aug-14 29-Sep-14 20-Nov-14 14-Jan-15 11-Mar-15 4-May-15 25-Jun-15 18-Aug-15 9-Oct-15 2-Dec-15 5-Feb-16 30-Mar-16 White Maize Yellow Maize 23-May-16 14-Jul-16 06-Sep-16 28-Oct-16 21-Dec-16 13-Feb-17 06-Apr-17 30-May-17 19

Sales analysis (includes New Holland equipment sales until 1 May 2017) Manufacturing & Industry 5% Construction 36% Agriculture & Forestry 59% Sep 2017 (Sep 2016) Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 20

New Assembly Plant – Camperdown, Kwa-zulu Natal Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017 21

DIVISIONAL REVIEW Engineering Solutions Group