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

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

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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

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INTERIM RESULTS PRESENTATION

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

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2 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Agenda

THE PERIOD IN PERSPECTIVE

01

DIVISIONAL REVIEW

02

GROUP FINANCIAL OVERVIEW

03

PROSPECTS AND STRATEGY

04

APPENDIX

05

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

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3 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

THE PERIOD IN PERSPECTIVE

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4 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

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

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5 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Highlights (continued)

PROFIT BEFORE TAXATION

8.7%

R399 MILLION

NAV PER SHARE

8.0%

4924 CENTS

DIVIDEND PER SHARE (DIVIDEND COVER MAINTAINED)

4.2%

69 CENTS 4218 CENTS

TNAV PER SHARE

11.1%

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6 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

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

DIVISIONAL REVIEW

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8 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Divisional structure

CAPITAL EQUIPMENT GROUP

  • Northmec
  • New Holland*
  • CSE
  • Doosan
  • HPE
  • ESP
  • Criterion
  • Kian Ann Group
  • BMG
  • Hansen
  • OST
  • Man-Dirk
  • SA Tool
  • Sibuyile
  • Autobax
  • Hyflo

Importer & distributor of agricultural equipment, construction equipment, forklifts and aftermarket replacement parts Leading distributor of engineering consumables and provider of engineering solutions ENGINEERING SOLUTIONS GROUP

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

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9 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Revenue contribution by operating segment

(excluding Head Office)

2,583 2,404 2,285 2,380 2,556 1,978 2,028 2,085 2,346 2,270 565 837 936 1,023

917

1,000 2,000 3,000 4,000 5,000 6,000 7,000 SEP 2013 SEP 2014 SEP 2015 SEP 2016 SEP 2017

45% 40% 16%

(18%)

5,269 5,773 5,749 5,306 5,129

R’million

(41%) (41%) Engineering Solutions Group Discontinued operations Capital Equipment Group

Sep 2017 (Sep 2016)

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10 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Operating profit before foreign exchange movements contribution by operating segment

(excluding Head Office)

251 180 181 219 218 220 209 194 241 202

32

48 46 44 18 100 200 300 400 500 600 SEP 2013 SEP 2014 SEP 2015 SEP 2016 SEP 2017

50% 46% 4% R’million

503 437 421 488 446

(48%) (43%) Discontinued operations Engineering Solutions Group Capital Equipment Group

(9%)

Sep 2017 (Sep 2016)

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11 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Revenue contribution by region

(continued operations only)

77% 7% 11% 5%

South Africa* Asia Other Africa

Sep 2017 (Sep 2016)

(78%) (8%) (10%) (4%)

*Target: 50% by 2020

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12 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Revenue contribution by sector

(continued operations only)

18% 27% 11% 14% 30%

Mining Manufacturing & Industry Agriculture & Forestry Construction (28%) General Trading (24%) (15%) (15%) (18%)

Sep 2017 (Sep 2016)

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13 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Return on Net Operating Assets (RONA)

(based on average net operating assets)

25.8% 17.5% 20.6% 17.1% 29.8% 21.8% 24.1% 19.4% 30.9% 19.4% 27.3% 17.0% 24.8% 17.6% 22.5% 16.7%

0% 5% 10% 15% 20% 25% 30% 35% FY 2015 FY 2016 FY 2017 SEP 2017 CEG ESG Discontinued operations IVT Group

Sep’17 Annualised

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Capital Equipment Group

DIVISIONAL REVIEW

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15 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Review of 1H2018

  • 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

  • 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

  • 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

Revenue 7.4% Operating profit before foreign exchange movements 0%

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16 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

New Holland CSE Doosan HPE ESP Criterion

Chief Executive Officer Tony Sinclair

Managing Director Tony Sinclair Managing Director Brenton Kemp Managing Director Darrel Holton Managing Director Brenton Kemp Managing Director Andrew Grobler Managing Director Alex Ackron

Northmec

Managing Director Johan van der Merwe

Management structure

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17 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Interim results summary

30 September 2017

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

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

8.2%

9.7% MAR 2016 MAR 2017 MAR 2018 181 219 218 181 251 100 200 300 400 500 600 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 2,556 4,955 218 470 362 8.5% 9.5% 8.1%

First Half Second Half Once-off

2,255 2,306 2,608

1,000 1,250 1,500 1,750 2,000 2,250 2,500 MAR 2016 MAR 2017 MAR 2018

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18 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Market volumes

  • Agriculture equipment volumes in total market

(April to Sept 2017 compared to the same period 2016)

  • Tractors

9.7%

  • Combines

2.0%

  • Construction equipment volumes in total market
  • Segments serviced by Invicta 20%

FY 2018

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19 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Yellow/White Maize prices/ZAR

Maize Safex Prices – January 2010 to May 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 25-Jan-11 18-Mar-11 11-May-11 4-Jul-11 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 23-May-16 14-Jul-16 06-Sep-16 28-Oct-16 21-Dec-16 13-Feb-17 06-Apr-17 30-May-17

Yellow Maize White Maize

Price in ZAR

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20 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Sales analysis (includes New Holland

equipment sales until 1 May 2017)

59% 36% 5%

Manufacturing & Industry Agriculture & Forestry Construction

Sep 2017 (Sep 2016)

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21 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

New Assembly Plant –

Camperdown, Kwa-zulu Natal

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Engineering Solutions Group

DIVISIONAL REVIEW

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23 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Review of 1H2018

Revenue 3% Operating profit before foreign exchange movements 16%

  • Tough industrial market during the period.
  • Focus has been on finalizing the BMG World site and the Simplify For Success across the group.
  • Cost saving initiatives have been implemented across the group;
  • Process automation
  • Distribution consolidation
  • Benefits of these to be seen going forward.
  • No acquisitions were made.

Trading conditions: The first half of the financial year can only be described as difficult.

  • Mining: No new major investment in new mines or extensions. Commodity pick up going forward seen as positive.
  • Agriculture: Spend recovery slow as rains returned, but Western Cape still heavily affected by drought.
  • Heavy Industry: Remains flat in line with general economic prospects.

ESG as a major player in industrial and southern Africa is now well positioned to take advantage of any upturn or growth in the region.

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24 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Review of 1H2018

Divisional Performance:

  • BMG: Remained flat and improved market share.
  • Autobax: Excellent performance, has grown year on year.
  • Man-Dirk: Below prior period mainly due to the mining industry slowdown.
  • Hyflo: Lack of business in oil & gas, little project work has resulted in a restructuring of the business.

African Operations:

  • A solid performance from branches in Africa
  • Ghana operation starting to trade
  • Focus on growing footprint in Africa in second half

Working Capital:

  • Stock has been strategically increased as world demand has resulted in increased lead times.
  • Debtors book well managed: Insured over >R250k
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25 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

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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26 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Final results summary

30 September 2017

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

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% MAR 2016 MAR 2017 MAR 2018

1,936 2,039 2,135

1,800 1,850 1,900 1,950 2,000 2,050 2,100 2,150 MAR 2016 MAR 2017 SEP 2017 194 241 202 212 239 100 200 300 400 500 600 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 4,665 480 406 8.9% 10.3% 9.4% 2,270 202

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27 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Revenue analysis

30 September 2017

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

technical expertise

  • African revenue growing as a % of ESG

revenues

67% 33%

Consumables Engineering

86.0% 13.0%

1.0%

South Africa Africa Other

(35%) (65%) (88.0%) (11.4%)

Sep 2017 (Sep 2016)

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28 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

21% 19% 20% 10% 7% 5% 2% 8% 6% 1% Parastatals

Sales by industry sector

30 September 2017

Sep 2017

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

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29 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

BMG World upgrade

(completed September 2017)

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30 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

BMG World site reveal

14 - 16 September 2017

5,700 visitors over 3 days

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31 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

GROUP FINANCIAL OVERVIEW

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32 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Revenue

5,129 5,270 4,389 4,727 4,857 5,336 5,190 4,410 4,905 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 4,857 10,465

*Restated *Restated

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33 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Operating profit

OPERATING PROFIT BEFORE FOREIGN EXCHANGE MOVEMENTS (R’m)

9.6% 8.1% 9.4% 8.6% 8.8% 10.3% 10.0% 8.4% 12.5%

MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018

First Half Second Half 10.0% **Excluding once-off items

OPERATING MARGIN (%)

8.8% 8.0%** 9.0%** 10.1% 493 427 377 440 426 550 518 372 611 69

34

200 400 600 800 1000 1200 1400

MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018

First Half Second Half Once-off 426 1,051 783 1,014 1,043

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34 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

EBITDA %

13% 11% 11% 10% 13% 14%

0% 2% 4% 6% 8% 10% 12% 14% 16% 2013 2014 2015 2016* 2017* SEP 2017* EBITDA (R’m) 677 1,125 1,144 1,103 1,483

*Based on continuing operations

977

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35 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

580 510 393 533 261 64 42

  • 2
  • 3

12

66 70 74 82 42 69 31

  • 100

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

R’million

316 612 496 691 710

Attributable Earnings

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36 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

358 293 207 242 242 430 361 160

223

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

First Half Second Half Once-off

107m weighted average nr of

  • rdinary shares

*Restated

Cents

242

Earnings per share

78m weighted average nr of

  • rdinary shares

Rights issue

788 742 396 465

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37 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Headline earnings

30 Sep 2017 30 Sep 2016 R’000 Unaudited Unaudited *Restated % Change Attributable Earnings 260,651 272,245 (4) Adjustments Headline EPS adjustments on discontinued operations

  • (2)

Gain from bargain purchase price recognised

  • (187)

Impairment of PPE 3,491 (Profit)/loss on disposal of investments (24,439)

  • Profit on disposal of other assets

(278)

  • Net profit on disposal of PPE
  • (2,354)

Reversal impairment of loans (297)

  • Total adjustments before taxation and NCI

(27,177) 948 Taxation 9,251 444 NCI

  • 27

Total adjustments (17,926) 1,419 Headline Earnings 242,725 273,664 (11)

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38 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Dividend per share

84 67 72 69 112 75 95

  • 50

100 150 200 250 300 350 2015 2016 2017 SEP 2017

Cents per share

Interim Final

196

Feb 2015: Special dividend of 2 024 cps was paid

142 167 Salient dates for the 2018 Interim Dividend ▪ Last day to trade to be eligible for the dividend ▪ Tuesday 12 December 2017 ▪ Shares commence trading “ex” the dividend ▪ Wednesday 13 December 2017 ▪ Record date in respect of dividend ▪ Friday 15 December 2017 ▪ Dividend payments ▪ Monday 18 December 2017

18%

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39 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Cash flow movement – 30 September 2017

701 500 (389) (60) (152) (57) (121)* 174 (67) 7 (1) 536 2 538

  • 200

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

* Capex of R137m less proceeds on sale of PPE R16m

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40 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

PROSPECTS AND STRATEGY

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41 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Prospects

  • Expect much of the same in H2
  • SA awaiting outcome of December elective conference
  • Reduce costs further in some divisions
  • Labour unrest possibility
  • Positive environment for acquisitions: evaluating a number of
  • pportunities in SA and abroad
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42 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Strategy

Invicta’s strategy is to:

  • Generate 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
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43 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

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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44 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

APPENDIX

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45 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Statement of Profit or Loss and other Comprehensive Income

  • FY 2016 has been restated because Share Appreciation Rights have been changed from equity-settled to cash-settled.

30 Sep 2017 30 Sep 2016 R'million Unaudited Unaudited *Restated % Change Continuing operations Revenue 4,856,553 4,727,012 3 Operating profit before foreign exchange movements 426,425 443,423 (4) Net foreign exchange cost 5,072 (14,880) Operating profit 431,497 428,543 1 Interest paid (468,327) (409,447) 14 Interest and dividends received from financial investments 409,287 348,270 18 Profit on disposal of investment 24,439

  • Share of profits/(losses) of associates

2,189 (196) Profit before taxation from continuing operations 399,085 367,170 9 Taxation (85,280) (72,334) 18 Profit for the period from continuing operations 313,805 294,836 6 Discontinued operations Profit for the period from discontinued operations 1,738 13,817 (87) Profit for the period 315,543 308,653

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46 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Statement of Profit or Loss and other Comprehensive Income

30 Sep 2017 30 Sep 2016 R'million Unaudited Unaudited *Restated % Change Profit attributable to: Owners of the company 260,651 272,245 (4) Non-controlling interest 12,487 (3,882) Preference shareholders 42,405 40,290 315,543 308,653 Earnings per share from continuing operations (cents) 242 242

  • Earnings per share (cents)

244 255 (4) Diluted earnings per share (cents) 244 255 (4) Weighted average shares in issue (‘000) 106,953 106,953

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47 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Statement of Financial Position

30 Sep 2017 30 Sep 2016 R'million Unaudited Unaudited *Restated % Change ASSETS Non-current assets Property, plant and equipment 1,728,490 1,600,804 Financial investments and investment in associates 2,193,603 1,891,606 Goodwill and other intangible assets 765,999 828,980 Financial assets, finance leases and long-term receivables 3,718,675 3,283,199 Deferred taxation 175,492 196,856 Non-current assets 8,582,259 7,801,445 10

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48 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Statement of Financial Position

30 Sep 2017 30 Sep 2016 R'million Unaudited Unaudited *Restated % Change Current assets Inventories 3,960,585 4,020,813 Trade and other receivables 2,089,355 2,080,179 Current portion of financial investments, finance leases and long-term receivables 875,421 725,099 Taxation prepaid 13,985 33,248 Bank and cash balances 836,312 956,929 Assets classified as held for sale (includes BSG) 173,519 15,940 TOTAL ASSETS 16,531,436 15,633,653 6

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49 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Statement of Financial Position

30 Sep 2017 30 Sep 2016 R'million Unaudited Unaudited *Restated % Change EQUITY Equity attributable to the equity holders 5,342,435 4,947,405 Non-controlling interest 83,480 207,063 SHAREHOLDERS' EQUITY 5,425,915 5,154,468 5 Shares in issue (‘000) 108,495 108,495

  • Net asset value per share (cents)

4,924 4,560 8 Tangible net asset value per share (cents) 4,218 3,796 11

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50 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Statement of Financial Position

30 Sep 2017 30 Sep 2016 R'million Unaudited Unaudited *Restated % Change Non-current liabilities Long-term borrowings and financial liabilities 7,159,719 6,686,654 Deferred taxation 38,615 31,956 Non-current liabilities 7,198,334 6,718,610 7

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51 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Statement of Financial Position

30 Sep 2017 30 Sep 2016 R'million Unaudited Unaudited *Restated % Change Current liabilities Trade, other payables and provisions 2,244,064 2,643,884 Share appreciation rights liability 4,357 6,111 Taxation liabilities 195,722 30,656 Shareholders for dividends 41,485 38,649 Current portion of long-term borrowings 1,012,910 814,424 Bank overdrafts 298,775 226,851 Liabilities associated with assets held for sale (includes BSG) 109,874

  • TOTAL LIABILITIES

11,105,521 10,479,185 TOTAL EQUITY AND LIABILITIES 16,531,436 15,633,653

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52 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

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

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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53 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Capital Equipment (SA))

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

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

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54 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

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 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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55 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Engineering Solutions

  • BMG (Bearing Man Group)
  • Engineering components & technical services
  • 135 branches
  • Bearings, Seals, PT

, Tools, Fasteners

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

Engineering Solutions

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56 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

Group profit drivers

  • Mining and industrial activity (ESG)
  • Agricultural activity (Northmec and aftermarket parts)
  • Construction activity (CSE, Doosan SA & HPE)
  • Warehousing (Criterion Equipment)
  • Global replacement spares market (Kian Ann)
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57 Invicta Holdings Limited | Interim Results Presentation for the six months ended September 2017

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