Zeda Limited · JSE:ZZD
Zeda — H1 2026 Earnings Presentation
26 slides from Zeda's earnings presentation, May 2026
Slide 1: Interim Results Presentation
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 MARCH 2026
Slide 2: Agenda
AGENDA 01 Themes & Highlights 02 Business Overview 03 Financial Overview 04 Outlook 05 Q&A
Slide 3: Key Themes & Highlights
1 KEY THEMES & HIGHLIGHTS
Slide 4: Capital efficient compounder
Capital 01 efficient compounder we comfortably outpaced our cost of capital, generating 150bps above the WACC Capital Return Maintenance raising as Capital Credit Residual of ROIC> & utilisation a strategic allocation risk value risk WACC risks capability Strong ROE ZEDA Interim Results Presentation
Slide 5: Focused execution
Focused 01 execution underpinned by diversified portfolio Revenue Operating Headline Net debt ROIC ROE Interim profit margin earnings to EBITDA dividend 3.2% 15.2% 6.1% 1.9x 12.3% 21.2% 45% (-0.6ppts) (-) +150bps operating profit reduced debt in a fleet capital 80 structure cents (-0.6%) 201 expansi
Slide 6: Operating environment
Operating 01 environment • Modest economic growth in SA and stable inflation marked the Economic • Interest rate decline in the period and spread continue to first-half of the year growth decline in SA • Solid economic growth in Zambia and Ghana • Influx of Chinese models, especially in the car mode
Slide 7: Operating model
Operating model 01 navigating complex operating environment Cost of funding reduced from 10.2% to 8.7% ROIC>WACC 150 basis points • Risk: Lease ratio at 72:28 from • Scale enables discounts: 78:22, resulting in R754m embedded equity reduction in RAC debt • Right fleet mix considering • Funding diver
Slide 8: Disciplined strategy execution
Disciplined 01 strategy execution Strategic priorities Measurement Outcome Trend Expand leasing Leasing 5.2% fleet book fleet (~R500m) [G] Expand the Used Car Retail Retail Segment volumes 6.8% [P] [G] Geographic Diversification: Leasing Pursue Expansion in GA revenue 2.1% [G] Broaden the Asset-Ligh
Slide 9: Sustainable impact
Sustainable 01 impact • 3% reduction in scope 2 emissions as a result, Reduce • 21% reduction in water consumption of embedded Environment environmental impact • Solar installation program installed in ESG practices 4 additional sites • 0.09 Lost Time Injury Frequency Rate (LTIFR). Zero fatalities m
Slide 10: Business Overview
2 BUSINESS OVERVIEW
Slide 11: Leasing business
Leasing business 02 strong growth trajectory persists Key growth drivers: Revenue EBITDA Operating profit Heavy commercial units up 22.4% to contribute 10.0% of leasing fleet 7.5% 6.7% 5.1% Diversification across sectors: Public sector up 43.8% and Corporate up 10% with healthy pipeline Greater Afri
Slide 12: Rental business
Rental business 02 under pressure in a highly pricing environment Key drivers: Car Sales Car Rental Operating Revenue Revenue profit margin Used car volumes up 12.9% Domestic volumes up 10% 5.5% 2.7% 11.2% Utilisation rate at 71% due to lower length of rental from replacement business Operating prof
Slide 13: Financial Overview
3 FINANCIAL OVERVIEW
Slide 14: Growth sustained under pressure
Growth 03 sustained Revenue EBITDA Operating Profit Earnings per share under (Rm) (Rm) (Rm) (cents) Average Fleet (units) EBITDA Margin Operating Margin pressure 17 064 17 884 29 505 31 252 33% 30% 16% 15% BEPS HEPS growth growth +3.2% -5.6% -0.6% +6.2% +6.1% 5 544 1 756 846 841 5 372 1 718 1 658 1
Slide 15: Diversified funding driving lower costs
Diversified 03 funding Net finance costs* driving lower (Rm/%) costs 340 10,2% Net finance cost decreased 320 - 150bps driven by lower market rates and successful execution of funding strategy 300 • Net finance costs (excl. IFRS 16) 280 decreased by 8.9% from HY25. 348 317 260 • Positive impact of 7
Slide 16: Value Creation
Value Creation 03 Return on Return on Equity Invested +0.9% +1.5% (%) 23,0 Capital 15,0 12,7 11,8 12,3 22,1 (%) 10,8 22,0 10,0 21,2 21,0 5,0 ROIC 20,0 WACC - HY2025 HY2026 HY2025 HY2026 Economic value added (Rm) Cash Yield on Fleet 2026 2025 HY2025 HY2026 March March 75 141 Operating cash flow/ 1 10
Slide 17: Cash to earnings ratio
Cash to Cash to earnings ratio (Rm) 03 earnings ratio Zeda cash to (based HY2026 HY2025 FY2025 earnings ratio on FCF March March September • Zeda cash conversion to firm) Cash generated from operations before investment in rental and leasing fleet R'm 2 774 2 652 6 622 is seasonal and cycle- driven
Slide 18: Value focused investment in operating assets
Value focused Classes of assets (Rm) 03 investment in operating 2026 March 2025 March Increased investment in fleet assets assets PPE (excluding vehicles) 32 36 • The proportion of operating Fleet Assets – Leasing 5 034 4 694 leases for rental fleet has Fleet Assets – Rental 4 655 4 693 increased fr
Slide 19: Effective use of financial leverage
Effective use 03 Debt ratios of financial (Rm/times) leverage Net debt to Strong coverage ratios fleet value 57% 55% • Net debt reduced to 12 000 8,0 R6 240 million 5.2 7,0 4.9 • Strong interest cover at 5.2x 10 000 supported by lower cost of 6,0 funding 8 000 5,0 • Increased fleet carrying value du
Slide 20: Capital structure
Capital 03 structure On 31 March 2026* R1.8bn equity build-up (Rm) (net of dividends) since Invested capital December 2022 Gross debt • ROIC: 12.3% to equity (WACC 10.8%). 9 709 9 573 • ROE: 21.2% • R533 million dividends 32% declared to shareholders Equity Equity since FY2024 3 469 958 36% 33% • Gr
Slide 21: Funding facilities
Funding 03 facilities 3 045 Headroom R3bn – March 2026 Committed facilities (Rm) • Sufficient funding capacity at appropriate commitment costs Headroom Total Utilisation 10 243 • Net average interest rate of 8.7% driven by debt refinancing and 7 198 issuance of bonds • Balanced funding mix • Increas
Slide 22: Funding update and outlook
Funding update 03 and outlook UPDATE OUTLOOK Moody’s Credit Ratings Maintain an optimal capital structure affirmed Zeda’s ratings at: • Ba3 Global Scale Establish DTMC to support Greater Africa • A1.za National Scale growth strategy • Stable outlook Drive operational efficiencies at scale, Cost of f
Slide 23: Outlook
4 OUTLOOK
Slide 24: H2: operating environment to remain challenging
H2: operating 04 environment to remain challenging • Rising oil prices due to Middle east war • Flight disruptions Headwinds • Inflation and interest rates expected to rise • New car price deflation expected to continue due to Chinese model changes • Affordable cars in our fleet, with low disposal i
Slide 25: Compelling investment case
Compelling investment case 04 guided by disciplined capital raising & allocation 01 Integrated Market 02 • Diversified portfolio mobility leading - Balanced portfolio of businesses protects business position in • Leading global brands; Avis and Budget from cyclicality of certain segments our markets
Slide 26: Q&A
Q&A