Invicta Holdings Limited · JSE:IVT
Invicta — RMB Morgan Stanley Off-Piste Conference 2018
20 slides from Invicta's conference presentation, Sep 27, 2018
Slide 1: RMB Morgan Stanley Off-Piste Conference Presentation 27 Sep 2018
RNM MORGAN STANLEY OFF-PISTE CONFERENCE PRESENTATION 27 SEP 2018 Presented by Arnold Goldstone (Chief Executive Officer)
Slide 2: Agenda
Agenda 01 Preliminary comments 02 Corporate profile 03 Trading conditions 04 Propects and Strategy Invicta Holdings Limited | RMB Morgan Stanley Off-Piste Conference 2018 2
Slide 3: Preliminary comments
Preliminary comments Invicta Holdings Limited | RMB Morgan Stanley Off-Piste Conference 2018 3
Slide 4: Preliminary comments
Preliminary comments • Invicta’s financial year is 31 March • About to hit interim period end (30 Sep 2018), therefore figures reflected in slides relate to FY 2018 (Y/E 31 Mar 2018) • Will cover general trading conditions and SARS dispute update Invicta Holdings Limited | RMB Morgan Stanley Off-Pis
Slide 5: Corporate Profile
Corporate Profile Invicta Holdings Limited | RMB Morgan Stanley Off-Piste Conference 2018 5
Slide 6: Capital Equipment (SA)
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 supp
Slide 7: Capital Equipment (Kian Ann Group)
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 Ch
Slide 8: Engineering Solutions
Engineering Solutions • Engineering Solutions BMG (Bearing Man Group) o Engineering components & technical services o 102 branches o Bearings, Seals, PT, Tools, Fasteners o Drives, Motors, Belting, Field Services o Filtration, Hydraulics, Lubrication, Pneumatics • Hansen • Man-Dirk Group (incl SA To
Slide 9: Revenue contribution by operating segment
Revenue contribution by operating segment for FY 2018 (Y/E 31 Mar 2018) (excluding Head Office) R’million 12 000 9,620 9,633 10 000 9,077 8,816 8,783 8 000 3,955 4,665 4,559 4,209 4,299 6 000 4 000 5,122 4,607 4,484 4,955 5,074 2 000 0 MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018 Engineering Solutio
Slide 10: Operating profit contribution by operating segment after forex costs
Operating profit contribution by operating segment after forex costs (excluding Head Office) R’million 1 200 1 000 957 956 912 864 768 800 473 499 486 460 600 406 400 200 484 457 426 404 362 0 MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018 Engineering Solutions Group 53% 47% Capital Equipment Group (5
Slide 11: Revenue contribution by region FY 2018
Revenue contribution by region FY 2018 (continuing operations only) Africa 5% Asia (6%) 11% (10%) Other 5% (4%) 79% South Africa** (81%) 2018 (2017) **Target: 50% by 2020 Invicta Holdings Limited | RMB Morgan Stanley Off-Piste Conference 2018 11
Slide 12: Revenue H1 v H2
Revenue H1 v H2 12000 10,465 10,460 9,632 9,640 10000 8,799 8000 5 336 5 190 4 905 4 783 4 410 6000 4000 5 129 5 270 4 857 4 389 4 727 2000 0 MAR 2014 MAR 2015 MAR 2016 MAR 2017 MAR 2018 *Restated First Half Continuing Second Half Continuing Invicta Holdings Limited | RMB Morgan Stanley Off-Piste Co
Slide 13: Trading conditions
Trading conditions Invicta Holdings Limited | RMB Morgan Stanley Off-Piste Conference 2018 13
Slide 14: Trading conditions
Trading conditions South Africa (79% of revenue) • The markets in which Invicta operates: o Mining : Weak in South Africa but improving in rest of world; little new investment in mining (mining charter not finalised yet, uncertainty) o Pockets of growth (e g conveyor business) o Job losses in mining
Slide 15: Trading conditions contd
Trading conditions contd South East Asia (11% of revenue) • Trading conditions improved in for first few months, tapering off • China appears to be cooling down (trade wars?) Africa/Rest of world (10% of revenue) • No change • Growth opportunities Invicta Holdings Limited | RMB Morgan Stanley Off-Pi
Slide 16: Prospects
Prospects Invicta Holdings Limited | RMB Morgan Stanley Off-Piste Conference 2018 16
Slide 17: Prospects
Prospects • Current trading conditions: • ESG: pockets of growth, but overall markets flat to negative • CEG no meaningful improvement yet • South East Asia continued growth • Benefits of relocations, restructurings and expansions in ESG • e-Commerce • Big focus on • margin improvement and cost cont
Slide 18: Strategy
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 ar
Slide 19: 2018 GDP Growth
2018 GDP Growth Source: IMF World Economic Outlook, April 2018 Update #NORTHMEC #CSE #NEW HOLLAND #DOOSAN #CRITERION #ESP #HPE Invicta Holdings Limited | RMB Morgan Stanley Off-Piste Conference 2018 19 #LANDBOUPART #CARTCOM #SHAMROCK
Slide 20: Q&A
Q&A Thank you for your attendance and participation www.invictaholdings.co.za For any further Investor Relations questions please contact: Arnold Goldstone (CEO) [email protected] Marlize Keyter (Keyter Rech Investor Solutions) [email protected] 087 351 3810 Invicta Holdings Limited | R
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