FINAL RESULTS PRESENTATION for the year ended 31 March 2018 - - PowerPoint PPT Presentation

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FINAL RESULTS PRESENTATION for the year ended 31 March 2018 - - PowerPoint PPT Presentation

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FINAL RESULTS PRESENTATION for the year ended 31 March 2018 Presented by Arnold Goldstone (Chief Executive Officer) Agenda 01 First things first 02 Results at a glance 03 Divisional review Capital Equipment Group (CEG) Engineering

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FINAL RESULTS PRESENTATION

for the year ended 31 March 2018 Presented by Arnold Goldstone (Chief Executive Officer)

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2

Invicta Holdings Limited | Results Presentation 2018

Agenda

Results at a glance

02

Divisional review

03

Group financial overview

04

Prospects and strategy

05

Appendix

06

Capital Equipment Group (CEG) Engineering Solutions Group (ESG)

First things first

01

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3 Invicta Holdings Limited | Results Presentation 2018

First things first

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4 Invicta Holdings Limited | Results Presentation 2018

First things first

1. Specific Taxation Provision

  • Stakeholder and market commentary over the potential tax consequences of certain

transactions which Invicta entered into several years ago

  • Based on advice received, the board is of the view that the transactions are tax

compliant

  • However, ongoing uncertainty is affecting the Group and hampering its ability to use

equity to fund expansion

  • Pragmatic solution, which provides certainty, is preferable to potentially protracted and

costly litigation (significant management time and material opportunity cost for the Group)

  • The company therefore continues to negotiate with SARS with a view to reaching

agreement regarding the tax consequences of these transactions

  • Taking all the above considerations into account, the board has concluded that an

amount of R400 million is the best estimate of an additional provision for taxation, which has been raised in the AFS for FY 2018

  • Should agreement not be reached with SARS and, if SARS elects to issue revised

assessments, the Group will defend its position fully

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5 Invicta Holdings Limited | Results Presentation 2018

First things first (continued)

2. Effect of Steinhoff collapse on Invicta

  • In wake of the collapse of Steinhoff International’s share price in Dec 2017, Invicta

undertook a full review and considered all possible contagion risks

  • No direct links to Steinhoff
  • Common major shareholder (Wiese family)
  • BSG sold to Steinhoff Africa Retail Ltd in Sep 2017. All proceeds were received in full on

the due date

  • No direct fallout on Invicta
  • No sale of shares by Wiese family
  • Business as usual
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6 Invicta Holdings Limited | Results Presentation 2018

First things first (continued)

3. Involuntary sale of shares by CEO

  • Recent SENS announcement regarding the involuntary sale of shares by an associate

company of the CEO

  • Shares were owned by an associate company of the CEO, owned by a trust of which the

director is a beneficiary but not a trustee

  • Shares were pledged to the bank as security for a loan to associate 7 years ago
  • Margin call (as a result of decline in IVT share price) which the borrower could not meet
  • Some of the shares which had been pledged to the bank were sold by the bank
  • Total of 300 000 shares were sold which equates to < 7% of CEO’s holdings
  • JSE waiver obtained
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7 Invicta Holdings Limited | Results Presentation 2018

The year in perspective

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8 Invicta Holdings Limited | Results Presentation 2018

Revenue

0%

to R9.6 billion

Operating profit before foreign exchange movements

  • 11%

to R940 million

Headline earnings per share before specific tax provision

  • 23%

to 464 cents

Headline earnings per share after specific tax provision

  • 81%

to 90 cents

Results at a glance

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9 Invicta Holdings Limited | Results Presentation 2018

Profit before tax

  • 15%

to R760 million

NAV per share

0%

4 691 cents to 3 921 CENTS

TNAV PER SHARE

2.0%

Results at a glance (continued)

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10 Invicta Holdings Limited | Results Presentation 2018

The year in perspective

Tough markets, satisfactory results

  • The markets in which Invicta operates:
  • Mining : Weak in South Africa but improving in rest of world
  • Agriculture: Severe drought in Western Cape, low maize prices, land expropriation

uncertainty

  • Industrial & manufacturing: Deterioration in activity in South Africa
  • South East Asia: trading conditions improving
  • Credit ratings downgrade in SA in Apr 2017
  • 1Q2018: GDP -2.2%. Worst Quarter since 1Q2009

› agriculture -24.2% › mining -9.9% and › manufacturing -6.4%

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11 Invicta Holdings Limited | Results Presentation 2018

The year in perspective (continued)

  • Sale of BSG Sep 2017
  • SARS negotiations
  • Loss of New Holland Agricultural machinery agency May 2017
  • Volatile ZAR, political uncertainty until Dec 2017
  • Reduced staff by 265 (7%) in SA
  • Bottom of cycle?
  • Better outlook
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12 Invicta Holdings Limited | Results Presentation 2018

The year in perspective Exchange rate volatility

1 Apr 2017 (13.42) 15 June 2018 (13.39) 31 Mar 2018 (11.82)

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13 Invicta Holdings Limited | Results Presentation 2018

Divisional review

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14 Invicta Holdings Limited | Results Presentation 2018

Divisional structure

Capital Equipment Group CEG

  • Northmec
  • New Holland*
  • CSE
  • Doosan
  • HPE
  • Criterion
  • Shamrock Handling Concepts
  • ESP
  • Landboupart
  • Kian Ann Group (Singapore)
  • BMG
  • Hansen
  • OST
  • Screen Doctor
  • Man-Dirk Group
  • SA Tool
  • Sibuyile
  • Autobax
  • Hyflo Group

Importer & distributor of agricultural equipment, construction equipment, forklifts and aftermarket replacement spare parts Leading distributor of engineering consumables products, technical services and provider of engineering solutions Engineering Solutions Group ESG

*Equipment sales discontinued May 2017 Aftermarket support continues (spare parts).

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15 Invicta Holdings Limited | Results Presentation 2018

Revenue contribution by operating segment

(excluding Head Office)

5,122 4,607 4,484 4,955 5,074 3,955 4,209 4,299 4,665 4,559 2,000 4,000 6,000 8,000 10,000 12,000 MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018

53% 47%

8,816 9,633 9,620 8,783 9,077

R’million

(52%) (48%) Engineering Solutions Group Capital Equipment Group

2018 (2017)

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16 Invicta Holdings Limited | Results Presentation 2018

Operating profit contribution by operating segment after forex costs (excluding Head Office)

484 457 362 426 404 473 499 406 486 460 200 400 600 800 1,000 1,200 MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018

47% 53% 2018 (2017) R’million

957 956 768 912 864

(53%) (47%) Engineering Solutions Group Capital Equipment Group

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17 Invicta Holdings Limited | Results Presentation 2018

Revenue contribution by region

(continuing operations only)

**Target: 50% by 2020

79% 5% 11% 5%

South Africa** Africa

2018 (2017)

Asia Other

(4%) (10%) (6%) (81%)

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18 Invicta Holdings Limited | Results Presentation 2018

Revenue contribution by sector

(continuing operations only)

(63%) (5%)

2018 (2017) 14% 30% 12%

General Trading Agriculture & Forestry

(30%)

28% 16%

Construction Manufacturing & Industry

(16%) (11%) (14%) (29%)

Mining

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19 Invicta Holdings Limited | Results Presentation 2018

Return on Net Operating Assets (RONA)

(based on average net operating assets)

17.5% 20.6% 19.2% 21.8% 24.1% 22.0% 19.4% 27.3% 9.0% 17.6% 22.5% 18.5%

0% 5% 10% 15% 20% 25% 30% FY 2016 FY 2017 FY 2018 CEG ESG

  • Discont. Ops

IVT Group

*Discontinued operations represents the Building Supplies Group which has been disposed of during the current year as well as the MacNeil Plastics business which remains as a discontinued operation.

*

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Capital Equipment Group

DIVISIONAL REVIEW

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21 Invicta Holdings Limited | Results Presentation 2018

Review of 2018

  • Difficult trading conditions overcome by increased market share, better sales mix
  • Activity in mining in general is saving construction unit sales
  • Reduced level of investment in infrastructure by both private and public sectors
  • Increase in demand in the South East Asia markets
  • Strength of the South African Rand against the US Dollar contributing to more competitive prices –

lower margins

  • Good rains resulted in a record crop of 16.7m tons of maize however the maize price dropped by

37% on yellow and 52% on white to below R2000 a ton, affecting farmers liquidity.

  • Operating margin decreases from 9.5% in 2017 to 8.9% in 2018

Revenue 2.4% Operating profit before foreign exchange movements 3.8%

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22 Invicta Holdings Limited | Results Presentation 2018

Review of 2018

Chief Executive Officer Tony Sinclair

Northmec NHSA CSE Doosan HPE Africa ESP Criterion Shamrock

Managing Director Tony Sinclair Managing Director Ross Collard Managing Director Darrel Holton Managing Director Brenton Kemp Managing Director Andrew Grobler Managing Director Alex Ackron Managing Director Johan van der Merwe Managing Director Marius Schutte

Managing Director Loy Soo Chew

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23 Invicta Holdings Limited | Results Presentation 2018

Final results summary

31 March 2018

2,285 2,380 2,556 2,199 2,575 2,518

1,000 2,000 3,000 4,000 5,000 6,000 MAR 2016 MAR 2017 MAR 2018 5,074 7.9% 9.2% 8.5%

8.2%

9.7% 9.3% MAR 2016 MAR 2017 MAR 2018

2,255 2,306 2,410

1,000 1,250 1,500 1,750 2,000 2,250 2,500 MAR 2016 MAR 2017 MAR 2018 181 219 218 181 251 234 100 200 300 400 500 600 MAR 2016 MAR 2017 MAR 2018

Revenue (R’m) Operating profit margin (R’m) Net operating assets (R’m) Operating profit before foreign exchange movements (R’m)

4,484 4,955 452 470 362 8.9% 9.5% 8.1%

First Half Second Half

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24 Invicta Holdings Limited | Results Presentation 2018

Market volumes

  • Agriculture equipment volumes
  • Tractors

14%

  • Combines

2%

  • Sprayers 4%
  • Construction equipment volumes
  • Segments serviced by Invicta 15%

FY 2018

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25 Invicta Holdings Limited | Results Presentation 2018

CEG’s volume increases

  • Agriculture equipment volumes
  • Tractors

40%

  • Construction & Forklift equipment volumes
  • Case 37%
  • Hyundai

46%

  • Forklift

15% FY 2018

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26 Invicta Holdings Limited | Results Presentation 2018

Yellow/White Maize prices/ZAR

Maize Safex Prices – May 2013 to April 2018

Price in ZAR

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 8-May-13 11-Jun-13 15-Jul-13 16-Aug-13 19-Sep-13 23-Oct-13 26-Nov-13 31-Dec-13 3-Feb-14 7-Mar-14 10-Apr-14 14-May-14 17-Jun-14 21-Jul-14 22-Aug-14 25-Sep-14 29-Oct-14 2-Dec-14 6-Jan-15 9-Feb-15 17-Mar-15 20-Apr-15 22-May-15 25-Jun-15 29-Jul-15 1-Sep-15 5-Oct-15 6-Nov-15 10-Dec-15 26-Jan-16 29-Feb-16 1-Apr-16 5-May-16 8-Jun-16 12-Jul-16 15-Aug-16 16-Sep-16 20-Oct-16 23-Nov-16 27-Dec-16 30-Jan-17 03-Mar-17 06-Apr-17 10-May-17 13-Jun-17 17-Jul-17 18-Aug-17 21-Sep-17 25-Oct-17 28-Nov-17 2-Jan-18 05-Feb-18 09-Mar-18 12-Apr-18 Yellow Maize White Maize

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27 Invicta Holdings Limited | Results Presentation 2018

Sales analysis

31 March 2018

45% 51% 4%

Manufacturing & Industry Agriculture & Forestry Construction

2018

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28 Invicta Holdings Limited | Results Presentation 2018

Tractor & Sprayers Market Share

31 December 2017

9% 14% 21% 20% 16% 22% 19% 32.4% 39% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sprayers

7.5% 6.7% 8.1% 6.6% 8.4% 6.7% 5.5% 9.1% 11.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017

Tractors

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Engineering Solutions Group

DIVISIONAL REVIEW

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30 Invicta Holdings Limited | Results Presentation 2018

Review of 2018

Revenue 2% Operating profit before foreign exchange movements 0%

  • Satisfactory results considering the volatile year
  • BMG World Site Reveal – complete
  • Wildcat strike Dec 2017 hurt operations
  • Focussed on tight cost management
  • Simplify for Success remained a high priority
  • One acquisition – Fenner Belting (Sales & Marketing) – February 2018
  • Since Y/E: Forge Industrial Group (Toolquip & Allied, F&H Machine Tools, Belt Brokers) – some

conditions outstanding

  • Trading conditions:
  • Mining:

Continued closing / downscaling of operations Major project work remained stagnant

  • Agriculture:

Spend recovery slow as rains returned, but Western Cape still heavily affected by drought

  • Heavy industry: This continued to be a challenging market
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31 Invicta Holdings Limited | Results Presentation 2018

Management structure

Man-Dirk Group Autobax Hyflo

Managing Director Gavin Pelser Managing Director Gavin Hall Managing Director John Black Managing Director Emil Berning Chief Executive Officer Gavin Pelser

BMG

(Bearing Man Group)

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32 Invicta Holdings Limited | Results Presentation 2018

Final results summary

31 March 2018

2,085 2,346 2,270 2,214 2,319 2,289

1,000 2,000 3,000 4,000 5,000 6,000 MAR 2016 MAR 2017 MAR 2018 9.3% 10.3% 8.9% 9.6% 10.3% 12.1% MAR 2016 MAR 2017 MAR 2018

1,936 2,039 2,321

1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 MAR 2016 MAR 2017 MAR 2018 194 241 202 212 239 277 100 200 300 400 500 600 MAR 2016 MAR 2017 MAR 2018

Revenue (R’m) Operating profit margin (R’m) Net operating assets (R’m) Operating profit before foreign exchange movements (R’m)

First Half Second Half

4,299 4,559 4,665 479 480 406 10.5% 10.3% 9.4%

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33 Invicta Holdings Limited | Results Presentation 2018

  • Divisional performances:
  • BMG: met expectations
  • Autobax: excellent performance
  • ManDirk: met expectations
  • Hyflo: disappointing results; project work lumpy, muted; business restructured
  • African operations:
  • Good performance of African branches (weakened local currencies)
  • Establishment of BMG Ghana – Trading commenced in February 2018
  • Working capital:
  • Increased stock as a result of the Fenner acquisition and strategic increase of certain stock

subject to new import duties (fasteners) and increased lead times due to world demand

  • Debtors book well managed; Debtors >R250,000 insured

Review of 2018

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34 Invicta Holdings Limited | Results Presentation 2018

Revenue analysis

31 March 2018

  • Strategy of market differentiation by:
  • complementing product distribution with

technical expertise

  • African revenue declined marginally as a % of

ESG revenues mainly as a result of strengthening of the Rand

  • The Fenner acquisition has mainly SA-based

revenues

66% 34%

Consumables Engineering

88.4% 10.7%

0.9%

(0.6%) South Africa Africa Other

(35%) (65%) (88%)

(11.4%)

2018 (2017)

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35 Invicta Holdings Limited | Results Presentation 2018

28% 18% 14% 8% 7% 6% 4% 6% 4% 1% Parastatals (1%)

(4%)

Sales by industry sector

31 March 2018

2018 (2017)

Mining Industry Other Cash Sales Automotive & Transport Food & Beverage Projects / Consultants Agriculture Construction 3% Oil & Gas (1%)

(6%) (4%) (5%) (7%) (8%) (20%) (20%) (24%)

Well diversified

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36 Invicta Holdings Limited | Results Presentation 2018

Highlights for 2017/2018

14 - 16 September 2017 5,700 visitors over 3 days

BMG World site reveal BMG – “Be Part” staff engagement initiative

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37 Invicta Holdings Limited | Results Presentation 2018

Highlights for 2017/2018 (cont.)

Acquisition – Fenner Belting

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38 Invicta Holdings Limited | Results Presentation 2018

Highlights for 2017/2018 (cont.)

Regional Service Centres

PORT ELIZABETH CAPE TOWN DURBAN

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39 Invicta Holdings Limited | Results Presentation 2018

Group financial overview

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40 Invicta Holdings Limited | Results Presentation 2018

Revenue

5,129 5,270 4,389 4,727 4,857 5,336 5,190 4,410 4,905 4,783 2000 4000 6000 8000 10000 12000 MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018 First Half Continuing Second Half Continuing 10,460 8,799 9,632 9,640 10,465

*Restated

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41 Invicta Holdings Limited | Results Presentation 2018

Operating profit

Operating profit before foreign exchange movements (R’m)

9.6% 8.1% 8.6% 9.3% 8.8% 10.3% 10.0% 8.4% 12.5% 10.7%

MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018

First Half Second Half 10.0%** **Excluding once-off items 493 427 377 440 426 550 518 372 611 514 69 34 200 400 600 800 1,000 1,200

MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018

Once-off Second Half Continuing First Half Continuing 1,043 940 1,051 1,014

Operating margin (%)

9.8% 8.5%** 9.0%** 783 10.9%

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42 Invicta Holdings Limited | Results Presentation 2018

580 510 393 383 126 64 42

  • 2
  • 3

21

66 70 74 82 84 69 31 150 400

  • 100

100 200 300 400 500 600 700 800 MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018 Ordinary s/h Minority s/h Pref s/h Once-off Tax Provision

R’million

710 612 496 691

Attributable earnings (R’m)

631

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43 Invicta Holdings Limited | Results Presentation 2018

358 293 207 253 242 430 361 160

246 250

88 29 100 200 300 400 500 600 700 800 900 1,000 MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018

First Half Second Half Once-off

107m weighted average nr of

  • rdinary shares

359 EPS after specific tax prov

Cents

118

Earnings per share

78m weighted average nr of

  • rdinary shares

Rights issue

788 742 396 499

*Restated

492

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44 Invicta Holdings Limited | Results Presentation 2018

Headline earnings

31 March 2018 31 March 2017 R’million Audited % Change Attributable Earnings 126,215 533,304 (76) Adjustments Headline EPS adjustments on discontinued operations – (578) Impairment of intangible assets – – Gain from bargain purchase price recognised – (235) Impairment of PPE – 3,517 (Profit)/Loss on disposal of investments (24,440) 5,286 Profit on disposal of other assets (326) (231) Net profit on disposal of PPE (13,335) (11,355) Impairment of goodwill 4,767 3,089 Total adjustments before taxation and NCI (33,334) (507) Taxation 11,532 1,456 NCI – 307 Total adjustments (21,802) 1,256 Headline Earnings 104,413 534,560 (80)

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45 Invicta Holdings Limited | Results Presentation 2018

Dividend per share

84 67 72 69 112 75 95 50

  • 50

100 150 200 250 300 350 2015 2016 2017 2018

Cents per share

Interim Final

196

Feb 2015: Special dividend of 2 024 cps was paid

142 167

Salient dates for the 2018 Final Dividend

  • Last day to trade to be eligible for the dividend
  • Tuesday

24 July 2018

  • Shares commence trading “ex” the dividend
  • Wednesday

25 July 2018

  • Record date in respect of dividend
  • Friday

27 July 2018

  • Dividend payments
  • Monday

30 July 2018

18%

119

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46 Invicta Holdings Limited | Results Presentation 2018

Cash flow movement - 2018

701 1,013 (585) (136) (264) (163) (234)* 404** 135 (19) 5 857 (11) 846

  • 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 R’million

* Capex of R285m less proceeds on sale of PPE R51m ** Acquisitions of R99m less disposals of R50,3m

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47 Invicta Holdings Limited | Results Presentation 2018

Prospects and strategy

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48 Invicta Holdings Limited | Results Presentation 2018

Prospects

  • Current trading conditions:
  • ESG improving
  • CEG no meaningful improvement yet
  • South East Asia continued growth
  • Benefits of relocations, restructurings and expansions beginning to bear fruits
  • e-Commerce
  • Big focus on
  • margin improvement and cost control
  • working capital improvement
  • cash generation
  • SARS settlement – negotiations ongoing. Outcome will determine availability of cash

resources

  • Local and international investments, good opportunities in SA
  • Secondary listing to expand the Group’s international footprint in a measured and focused

approach (table being prepared to list offshore, only when right offshore acquisition opportunity

presents itself)

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49 Invicta Holdings Limited | Results Presentation 2018

Strategy

Invicta’s strategy is to:

  • Generate healthy cash from existing businesses
  • Build on the strength of the current businesses
  • Focus on customer service, value-added distribution and supply chain efficiencies
  • Diversify the Group’s revenue stream geographically
  • Acquire businesses that are a strategic fit for the Group
  • Maintain RONA >20% for each of the underlying businesses
  • Target real, sustainable growth
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50 Invicta Holdings Limited | Results Presentation 2018

Q & A

Thank you for your attendance and participation www.invictaholdings.co.za For any further Investor Relations questions please contact: Arnold Goldstone (CEO) arnoldg@invictaholdings.co.za Craig Barnard (CFO) craigb@invictaholdings.co.za

Marlize Keyter (Keyter Rech Investor Solutions) mkeyter@kris.co.za 087 351 3810

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51 Invicta Holdings Limited | Results Presentation 2018

Appendix

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52 Invicta Holdings Limited | Results Presentation 2018

Statement of Profit or Loss and other Comprehensive Income

31 March 2018 31 March 2017 R'million Audited % Change Continuing operations Revenue 9,640 9,632 Operating profit before foreign exchange movements 940 1,051 (11) Net foreign exchange cost (71) (41) 75 Operating profit 869 1,010 (14) Interest paid (947) (889) 6 Dividends received from financial investments 332 303 10 Share of profits of associates 14 4 Interest received 492 469 5 Profit before taxation from continuing operations 760 897 (15) Income tax expense (536) (322) (67) Profit for the year from continuing operations 224 575 (61) Discontinued operations Profit for the year from discontinued operations 8 37 (79) Profit for the year 231 612 (62)

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53 Invicta Holdings Limited | Results Presentation 2018

Statement of Profit or Loss and other Comprehensive Income

31 March 2018 31 March 2017 R'million Audited % Change Profit attributable to: Owners of the company 126 533 (76) Non-controlling interest 21 (3) Preference shareholders 84 82 2 231 612 (62) Earnings per share from continuing operations (cents) 111 465 (76) Earnings per share (cents) 118 499 (76) Headline EPS from continuing operations (cents) 90 466 (81) Headline EPS and diluted HEPS (cents) 98 500 (80)

Weighted average shares in issue (‘000) 106,953 106,953

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54 Invicta Holdings Limited | Results Presentation 2018

Statement of Financial Position

31 March 2018 31 March 2017 R'million Audited % Change ASSETS Non-current assets Property, plant and equipment 1,721 1,641 5 Financial investments

  • 1,982

(100) Goodwill 661 615 7 Other intangible assets 175 161 (9) Financial assets

  • 64

(100) Finance lease receivables 49 46 7 Long-term receivables 4 3,374 (100) Investment in associates 119 103 15 Deferred taxation 200 181 10 Non-current assets 2,929 8,167 (64)

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55 Invicta Holdings Limited | Results Presentation 2018

Statement of Financial Position

31 March 2018 31 March 2017 R'million Audited % Change Current assets 7,386 8,098 (9) Inventories 3,918 3,663 7 Trade and other receivables 1,620 1,542 5 Current portion of finance lease receivables 49 41 20 Current portion of financial investments 588 709 (17) Current portion of long-term receivables 11 2 Taxation prepaid 25 16 57 Bank and cash balances 1,017 1,052 (3) 7,228 7,025 3 Assets classified as held for sale 158 1,073 (85) TOTAL ASSETS 10,315 16,265 (37)

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56 Invicta Holdings Limited | Results Presentation 2018

Statement of Financial Position

31 March 2018 31 March 2017 R'million Audited % Change EQUITY Equity attributable to the equity holders 4,990 5,116 (3) Non-controlling interest 99 152 (35) SHAREHOLDERS' EQUITY 5,090 5,268 (3) Shares in issue (‘000) 108,495 108,495

  • Net asset value per share (cents)

4,691 4,715

  • Tangible net asset value per share (cents)

3.921 4,000 (2)

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57 Invicta Holdings Limited | Results Presentation 2018

Statement of Financial Position

31 March 2018 31 March 2017 R'million Audited % Change Non-current liabilities Long-term borrowings 1,647 6,793 (76) Financial liabilities

  • 64

(100) Deferred taxation 38 35 9 Non-current liabilities 1,685 6,892 (76)

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58 Invicta Holdings Limited | Results Presentation 2018

Statement of Financial Position

31 March 2018 31 March 2017 R'million Audited % Change Current liabilities 3,540 4,105 (14) Trade and other payables 1,685 1,939 (13) Provisions 178 198 (10) Share appreciation rights liability 1 6 (83) Taxation liabilities 583 170 243 Shareholders for dividends 49 50 (2) Current portion of long-term borrowings 756 864 (13) Bank overdrafts 170 206 (18) 3,422 3,433 (0) Liabilities associated with assets held for sale 118 672 (82) TOTAL LIABILITIES 5,225 10,997 (53) TOTAL EQUITY AND LIABILITIES 10,315 16,265 (37)

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59 Invicta Holdings Limited | Results Presentation 2018

Group structure

BBEE & Staff Trusts Invicta Holdings SA

Non - SA

Invicta SA Invicta Properties Invicta Treasury Invicta Finance

Invicta Offshore Holdings

ESG CEG

Invicta African Holdings Invicta Asian Holdings

BMG Man-Dirk Autobax OST SA Tool Hansen Hyflo Sibuyile

Northmec New Holland* CSE Doosan HPE ESP Criterion Shamrock

Kian Ann & subsidiaries in South East Asia Mozambique Zambia Tanzania DRC Ghana

25% 75% 100% 100% 100% 100% 100% 100% 100% 100%

*Equipment sales discontinued. Aftermarket support continues (spare parts)

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60 Invicta Holdings Limited | Results Presentation 2018

Capital Equipment (SA))

  • Northmec (Agricultural Machinery)
  • New Holland* (Agricultural Machinery)
  • CSE (Earthmoving Machinery)
  • Doosan (Earthmoving Machinery)
  • HPE (Hyundai Earthmoving)
  • Criterion (Forklifts)
  • ESP (Parts)
  • 138 dedicated outlets

*Equipment sales discontinued. Aftermarket support continues (spare parts)

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61 Invicta Holdings Limited | Results Presentation 2018

Capital Equipment (Kian Ann Group)

Kian Ann Engineering

  • One of the world's largest independent distributors of

heavy machinery and diesel engine parts

  • HQ in Singapore
  • Subsidiaries in Singapore, Indonesia, China, Canada,

United Kingdom, USA and Myanmar

  • Joint venture in India
  • Associate in China

Kian Chue Hwa Industries

  • One of Asia’s largest independent distributors of

commercial and industrial vehicle parts

  • HQ in Singapore
  • Subsidiaries in Indonesia, Thailand and Malaysia
  • Associate in Myanmar
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SLIDE 62

62 Invicta Holdings Limited | Results Presentation 2018

Engineering Solutions

  • BMG (Bearing Man Group)
  • Engineering components & technical services
  • 102 branches
  • Bearings, S

eals, PT , Tools, Fasteners

  • Drives, Motors, Belting, Field S

ervices

  • Filtration, Hydraulics, Lubrication, Pneumatics
  • Hansen
  • Man-Dirk Group (incl SA Tool)
  • Tools & equipment
  • 20 branches & subsidiaries
  • Autobax
  • Automotive
  • 3 branch network
  • OST
  • Hyflo

Engineering Solutions

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SLIDE 63

63 Invicta Holdings Limited | Results Presentation 2018

Group profit drivers

  • Mining and industrial activity (ESG)
  • Agricultural activity (Northmec and aftermarket parts)
  • Construction and earthmoving activity (CSE, Doosan SA & HPE)
  • Warehousing (Criterion Equipment)
  • Global replacement spares market (Kian Ann)
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SLIDE 64

64 Invicta Holdings Limited | Results Presentation 2018

ARNOLD GOLDSTONE

Executive Management Team

BOARD OF DIRECTORS Dr Christo Wiese (Non-Executive Chairman) ENTITY Invicta Holdings Capital Equipment Group Engineering Solutions Group CHIEF FINANCIAL OFFICER CHIEF EXECUTIVE OFFICER CRAIG BARNARD TONY SINCLAIR GEOFF BALSHAW GAVIN PELSER BENNIE GROENEWALD

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SLIDE 65

65 Invicta Holdings Limited | Results Presentation 2018

Shareholding as at 31 March 2018

47% 38% 7% 4%

Public

Directors’ Total % 53% Public % 47%

Wiese Family Sherrell Family Goldstone Family 2% Samuels Family 1% Exec Directors 1% Treasury