PRESENTATION. RMB Morgan Stanley Off-Piste Conference 29 Sep Presented by Arnold Goldstone (Chief Executive Officer)

Transcription

1 PRESENTATION RMB Mrgan Stanley Off-Piste Cnference 29 Sep 2017 Presented by Arnld Gldstne (Chief Executive Officer)

2 Agenda 01 COPORATE HISTORY 02 BUSINESS PROFILE Capital Equipment Grup Engineering Slutins Grup Building Supply Grup 03KEY FINANCIAL INFORMATION PROSPECTS AND STRATEGY EXEC MANAGEMENT & SHAREHOLDING 2

3 CORPORATE HISTORY 1989: Funded and listed n Jhannesburg Stck Exchange (JSE) Tp 100 Cmpany fr 21 years since then Annual Glbal Revenue f Invicta Grup R10bn+ (US$ 750m+) Presence in ver 20 cuntries Over emplyees Revenue: 74% SA, 26% rest f wrld Imprter and distributr f industrial cnsumables, capital equipment and related spares 3

4 BUSINESS PROFILE 4

5 Divisinal structure CAPITAL EQUIPMENT GROUP ENGINEERING SOLUTIONS GROUP BUILDING SUPPLY GROUP (Discntinued) Imprter & distributr f agricultural equipment, cnstructin equipment, frklifts and aftermarket replacement parts Nrthmec New Hlland* CSE Dsan HPE ESP Criterin Kian Ann Grup Leading distributr f engineering cnsumables and prvider f engineering slutins BMG Hansen OST Mandirk SA Tl Sibuyile Autbax Hyfl Manufacturer, whlesaler and distributr f building supplies wrldwide MacNeil Distributin Manufacturing Brands 4 Africa Tiletria *Equipment sales discntinued. Aftermarket supprt cntinues (spare parts). 5

6 Engineering Slutins Engineering Slutins BMG (Bearing Man Grup) Engineering cmpnents & technical services 135 branches Bearings, Seals, PT, Tls, Fasteners Drives, Mtrs, Belting, Field Services Filtratin, Hydraulics, Lubricatin, Pneumatics Hansen Mandirk Grup (incl SA Tl) Autbax OST Hyfl Tls & equipment 19 branches & subsidiaries Autmtive 3 branch netwrk 6

7 Capital Equipment (SA)) Nrthmec (Agricultural Machinery) New Hlland* (Agricultural Machinery) CSE (Earthmving Machinery) Dsan (Earthmving Machinery) HPE (Hyundai Earthmving) Criterin (Frklifts) ESP (Parts) 201 dedicated utlets *Equipment sales discntinued. Aftermarket supprt cntinues (spare parts) 7

8 Capital Equipment (Kian Ann Grup) Kian Ann Engineering One f the wrld's largest independent distributrs f heavy machinery and diesel engine parts HQ in Singapre Subsidiaries in Singapre, Indnesia, China, Canada, United Kingdm and Myanmar Jint venture in India Assciate in China Kian Chue Hwa Industries One f Asia s largest independent distributrs f cmmercial and industrial vehicle parts HQ in Singapre Subsidiaries in Indnesia, Thailand and Malaysia Assciate in Myanmar 8

9 Building Supply Grup (Discntinued) Tiletria MacNeil Distributrs Brands 4 Africa 15 utlets in SA 9

10 KEY FINANCIAL INFORMATION 10

11 R billin REVENUE (R bn) Sld Engineparts (T/O R250m) GFC Acquired Macneil Acquired Kian Ann Sld BSG after y/e

12 Cents per share EPS (cents per share) 900 Feb 15: Special div (R1.5bn) & rights issue (44% mre shares (107m in issue))

13 Revenue cntributin by perating segment (excluding Head Office) R millin ,465 10,455 10,620 11,513 1,893 1,388 1,639 1,837 7, ,955 4,209 4,299 4,665 3,425 3,503 5,122 4,607 4,484 4,955 MAR 2013 MAR 2014 MAR 2015 MAR 2016 MAR 2017 Building Supply Grup 16% (17%) 43% (43%) Capital Equipment Grup Engineering Slutins Grup 41% (40%) 2017 (2016) 13

14 Operating prfit cntributin by perating segment (excluding Head Office) R millin ,024 1, , MAR 2013 MAR 2014 MAR 2015 MAR 2016 MAR 2017 Building Supply Grup 10% (9%) 44% (43%) Capital Equipment Grup Engineering Slutins Grup 46% (48%) 2017 (2016) 14

15 Revenue cntributin by regin (includes discntinued peratins) Asia 14% (9%) 5% (3%) Other Africa 7% (11%) 74% (77%) Suth Africa* Y/E 31 Mar 2017 (2016) *Target: 50% by

16 Revenue cntributin by sectr (includes discntinued peratins) Manufacturing & Industry Mining 12% (15%) 12% (14%) 27% (29%) Cnstructin General Trading 24% (19%) 25% (23%) Agriculture & Frestry 2017 (2016) 16

17 25,8% 29,8% 30,9% 24,8% 17,5% 21,8% 19,4% 17,6% 20,6% 24,1% 27,3% 22,5% Return n Net Operating Assets (RONA) (based n average net perating assets) 35% 30% 25% 20% 15% 10% 5% 0% FY 2015 FY 2016 FY 2017 CEG ESG BSG IVT Grup 17

18 Cents Earnings per share H1 & H2 (5 yr histry) m weighted average nr f rdinary shares Rights issue m weighted average nr f rdinary shares MAR 2013 MAR 2014 MAR 2015 MAR 2016 MAR st Half 2nd Half Once-ff 18

19 INVICTA SHARE PRICE HISTORY 5 YRS (CENTS) Special dividend and rights issue 19

20 PROSPECTS AND STRATEGY 20

21 Prspects Signs f imprvement in Suth East Asia SA: tugh trading cnditins (mining charter, recessin, lw business cnfidence, t much plitical uncertainty = very little new investment) Benefits f relcatins, restructurings and expansins t start cming thrugh in H2 Fcus f the Grup will remain n: margin management and cst cntrl wrking capital ptimisatin cash generatin 21

22 Prspects cntd. Prceeds frm sale f BSG likely t flw in next mnth R1bn + available fr acquisitins. Stay fcused n industrial cnsumables and capital equipment (deep knwledge f these industries, high cash generatin, gd return n sales and gd return n equity) Lcal and internatinal investments Lcal acquisitin pprtunities imprving at realistic prices Offshre acquisitins: hallmark is high P:E s but lw cst f debt Regulatry apprval btained fr secndary listing (will d it nly if it makes sense t d s t raise hard currency) 22

23 Strategy Invicta s strategy is t: Generate healthy cash frm existing businesses Build n the strength f the current businesses Fcus n custmer service, value-added distributin and supply chain efficiencies Diversify the Grup s revenue stream gegraphically by rganic grwth and acquisitin Make targeted acquisitins Maintain RONA >20% fr each f the underlying businesses Imprve grup return n equity Targeting 50% f grup incme frm ffshre by

24 Grup prfit drivers Mining and industrial activity (ESG) Agricultural activity (Nrthmec and aftermarket parts) Cnstructin and earthmving activity (CSE, Dsan SA & HPE) Warehusing (Criterin Equipment) Glbal replacement spares market (Kian Ann) 24

25 EXECUTIVE MANAGEMENT AND SHAREHOLDING 25

26 Executive Management Team Dr Christ Wiese (Nn-Executive Chairman) BOARD OF DIRECTORS ENTITY CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER Invicta Hldings ARNOLD GOLDSTONE CRAIG BARNARD Capital Equipment Grup TONY SINCLAIR GEOFF BALSHAW Engineering Slutins Grup GAVIN PELSER BENNIE GROENEWALD Building Supply Grup (Discntinued) NEIL MALHERBE KEVIN DIAB 26

27 Sharehlding as at Sep % Samuels Family Gldstne Family Sherrell Family 7% 4% 1% Exec Directrs 1% Treasury Directrs Ttal % 53% Public % 47% 47% 38% Wiese Family Public (apprx. 25% f shares in issue are wned by financial institutins) 27

28 Q & A Thank yu fr yur attendance and participatin Fr any further Investr Relatins questins please cntact: Arnld Gldstne (CEO) arnldg@invictahldings.c.za Craig Barnard (CFO) craigb@invictahldings.c.za Marlize Keyter (Keyter Rech Investr Slutins) mkeyter@kris.c.za