RMB/MORGAN STANLEY OFF PISTE CONFERENCE

VINEYARD HOTEL, CAPE TOEWN, 3 OCT 2014

PRESENTER: ARNOLD GOLDSTONE (CEO)

CORE BUSINESS

BMG (Bearing Man Group)

Leading distributor of engineering

components & technical services in

Africa

Over 120 branches Southern Africa

Bearings, Seals, Chains, Couplings

Fasteners, Tools

Drives, Motors, Belting

Filtration, Hydraulics, Lubrication

Field service, Con Mon

Man-Dirk, Autobax, Wegezi, OST

CORE BUSINESS

CEG (Capital Equipment Group) Northmec (Agric Machinery)

New Holland (Agric Machinery)

CSE (Earthmoving Machinery)

Doosan (Earthmoving Machinery)

HPE (Hyundai Earthmoving)

Criterion (Forklifts)

ESP (Parts)

200 Dedicated Outlets across SA

CORE BUSINESS

Kian Ann Engineering (Singapore)

One of the world's largest independent

distributors of

heavy machinery parts and

diesel engine components

for the earthmoving and heavy truck industries

Annual Revenue R1.1 bn+

Outlets in Singapore, Indonesia, China, Malaysia

CORE BUSINESS

BSG (Building Supplies)

Tiletoria

MacNeil Distributors (from 1 Oct 2012)

One Owl Distributors

Annual Revenue: R1.3 bn+

15 + outlets in SA

Big growth potential

BMG38%

CEG49%

Bldg Supplies13%

Revenue contribution FY MAR 2014:

Business Unit

Revenue contribution FY MAR 2014:

SA and Rest of World

South Africa78%

Rest of World22%

FY 2014 - RESULTS HIGHLIGHTS

Revenue up 38% to R10.5bn

Operating Profit up 18% to R1.04bn

Cash generated by operations R715m

EPS down 17% to 788c

Normalised EPS up 7% to 788c

HEPS down 14% to 765c

Normalised HEPS up 15% to 765c

DPS up 7% to 287c

Dividend cover 2.75x

Revenue (Rm)

0

2,000

4,000

6,000

8,000

10,000

12,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

10 yr CAGR = 18% p.a.

0

200

400

600

800

1,000

1,200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Operating Profit (Rm)

10 yr CAGR = 16% p.a.

EPS

0

100

200

300

400

500

600

700

800

900

1,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EPS One-off

10 yr CAGR in EPS = 17% p.a.

EPS and DPS

0

100

200

300

400

500

600

700

800

900

1,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

EPS One-off DPS

10 yr CAGR in DPS = 16% p.a.

EPS

0

200

400

600

800

1,000

1,200

2010 2011 2012 2013 2014

EPS One-off

-17%

+7%

EPS (H1 v H2)

0

50

100

150

200

250

300

350

400

450

500

2010 2011 2012 2013 2014

H1 H2 One-off

Segmental Operating Profit (Rm)

293 320 371 390

473

123 158

247

339

484 14

39

67

37 27

-31

116

19

-200

0

200

400

600

800

1,000

1,200

2010 2011 2012 2013 2014

BMG CEG BSG Other

BMG Results Summary 31 Mar 2014

Rm 31 Mar 14 vs PY

Sales 3,955 +15%

Operating Profit 473 +21%

OP% 12.0% 11.4%

Ave NOA 1,438 +13%

RoNOA 32.9% 30.8%

Sales

1,550

2,056 1,928

2,395

2,742

3,425

3,955

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2008 2009 2010 2011 2012 2013 2014

Operating Profit

220

319

293

320

371 390

473

0

50

100

150

200

250

300

350

400

450

500

2008 2009 2010 2011 2012 2013 2014

CEG Results Summary 31 Mar 2014

Rm 31 Mar 14 vs PY

Sales 5,122 +46%

Operating Profit 484 +43%

OP% 9.4% 9.7%

Ave NOA 1,497 +87%

RoNOA% 32.3% 42.3%

Turnover 31 Mar 2014

1,700

2,254

1,749 1,877

2,549

3,503

5,122

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

2008 2009 2010 2011 2012 2013 2014

Operating Profit 31 Mar 2014

121

156

123

157

247

339

484

0

50

100

150

200

250

300

350

400

450

500

2008 2009 2010 2011 2012 2013 2014

BSG Results Summary 31 Mar 2014

Rm 31 Mar 14 vs PY

Sales 1,383 +121%

Operating Profit 67 +73%

OP% 4.8% 6.2%

Ave NOA 207 -

RoNOA 32.4% -

Sales 31 Mar 2014

625

1,383

0

500

1,000

1,500

2,000

2013 2014

Operating Profit 31 Mar 2014

39

67

0

10

20

30

40

50

60

70

80

2013 2014

OP % 31 Mar 2014

6.2%

4.8%

4%

5%

6%

7%

2013 2014

INVICTA SHARE PRICE at 31 Mar

225 295 310 550

935

1 550

1 850

2 750 2 550

2 000

2 880

4 350

6 500

10 200

11 530 10 550

-

2 000

4 000

6 000

8 000

10 000

12 000

14 000

Cent

s per

shar

e

CAGR SINCE 2000 = 32% p.a.

SHAREHOLDING SEP 2014

61%

36%

3%Public & Fin Institutions

Staff & Treasury

Directors

CH Wiese * (Chairman)

36.4%

Sherrell family (LR Sherrell) *

10.9%

A Goldstone (CEO) 5.7%

D Samuels * 4.8%

Other exec directors 3.0%

75.6 million shares in issue 1.5 million thereof held in treasury

* = non-executive

INVICTA GROUP PROFIT DRIVERS

General mining and industrial activity (BMG)

Agricultural activity (Northmec & New Holland)

Construction activity (CSE, Doosan SA & HPE)

Warehousing (Criterion Equipment)

Building and Renovations (BSG)

Global replacement spares market (Kian Ann)

PROSPECTS

Aim to grow EPS at CPI plus 10% over the long term

Last 13 financial yrs = 32% pa CAGR

Long term aggressive growth, focus on generating strong cash flows

Acquisitions and organic growth

Looking for acquisitions - will stay in core businesses

Dividend cover policy stays at 3.5 x EPS interims, 2.75 x NEPS FY

Group is considering an international listing

Historically acquisitions were made using gearing, but may need to

raise equity for larger acquisitions in future

Aim to increase non-SA income to 50% of total in medium term

Trading conditions in SA proving to be very challenging this year

PROSPECTS CONTD

SENS update Jul 2014 – expect EPS to be down 20-30% in H1 to

Sep 2014

SENS announcement yesterday: Acquis. of remainder (25%) of

Kian Ann

Industrial consumables market (BMG) recovering from industrial

action but not yet fully back to normal; GP % under pressure

Agric machinery market soft. Total SA market Y-o-Y tractor sales

to Aug 2014 down 13 %. Maize price down by 50% since Apr 2014

Construction machinery: Total SA volumes on decline since

mining strikes; no new major infrastructural spend

South East Asian markets still soft. Recovery expected by 2016

Ride the cycles

Acquisition opportunities

INVICTA GROUP

Changes to Executive Roles

Now Next year

Exec. Dep. - Arnold Goldstone

Chairman

Group CEO Arnold Goldstone Charles Walters

BMG CEO Charles Walters Byron Nichles

- CEO of ARB Holdings

Limited (listed on JSE)

- Appointed CEO of BMG

from 1 November 2014

THANK YOU & QUESTIONS

THANK YOU