Slide 1: Results Presentation for the year ended 31 August 2021
RESULTS PRESENTATION for the year ended 31 August 2021
Slide 2: Disclaimer
DISCLAIMER Certain statements in this presentation regarding enX’s business operations may constitute “forward looking statements.” All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding the financial position, business s
Slide 3: Contents
CONTENTS 01 WHO WE ARE 02 WHO WE REPRESENT 03 HIGHLIGHTS & KEY FOCUS AREAS 04 FINANCIAL PERFORMANCE 05 BUILDING OUR BUSINESS UNITS 06 DISPOSAL GROUP HELD FOR SALE 07 FINANCIAL REVIEW 08 OUTLOOK 3
Slide 4: Who We Are
AL 14 iS 9 WHO WE ARE Tie
Slide 5: Who We Are
WHO WE ARE FLEET PETROCHEMICALS Fleet management solutions across all vehicle classes: Manufacturing and distribution of chemicals • Rental • Oil lubricants and base oils • Tracking • Rubber chemicals, fillers, additives, • Insurance natural and synthetic rubber • Remarketing • Polyethylene, polysty
Slide 6: Who We Represent
WHO WE REPRESENT
Slide 7: Who We Represent
WHO WE REPRESENT BRAND RECOGNITION MARKETING EXPERTISE RESEARCH AND DEVELOPMENT GROWTH OPPORTUNITIES SUPPORTED WITH CONFIDENCE BY GLOBAL TOP 10 AND LEADING INTERNATIONAL BRANDS EQUIPMENT PETROCHEMICALS DISCONTINUED OPERATIONS #1 #1 #1 #1 #1 #2 #4 #1 7
Slide 8: Highlights & Key Focus Areas
HIGHLIGHTS & KEY FOCUS AREAS
Slide 9: Highlights and Key Focus Areas
HIGHLIGHTS AND KEY FOCUS AREAS 1. Robust F2021 financial performance 2. Disposal of Impact Handling (UK) • Transaction value: £33 million • Transaction effective: 14 June 2021 • Receipt of cash of £31.4 million (net of expenses) before 31 August 2021 3. Bank refinancing of EIE SA and Eqstra • Both E
Slide 10: Highlights and Key Focus Areas
HIGHLIGHTS AND KEY FOCUS AREAS 5. Continued focused decentralised management teams • Empowering business unit leaders with Group assisting to improve synergies 6. Continued management of risks around COVID-19 to ensure ongoing sustainability • Continued management across all business units • Impleme
Slide 11: Key Focus Areas – Impacts of COVID-19
KEY FOCUS AREAS – IMPACTS OF COVID-19 • Health and safety of our stakeholders remains highest priority • Stringent hygiene controls and protocols continue to be implemented • Activity levels and revenues continue to improve ENX GROUP – % OF PRE-COVID-19 REVENUE (ON A ROLLING BASIS) 120% 100% 80% 60%
Slide 12: Financial Performance
FINANCIAL PERFORMANCE
Slide 13: Financial Performance
FINANCIAL PERFORMANCE • Revenue from continuing operations of R4.334 billion (2020: R3.876 billion), up 12% • Operating profit ⁴ of R342 million (2020: R110 million), up significantly - Positively impacted by a recovery in activity as COVID-19 related restrictions eased - Once-off expenditure result
Slide 14: Building Our Business Units
aie : ks B ~ BUILDING OUR BUSINESS UNITS
Slide 15: Business Unit Analysis – Eqstra
BUSINESS UNIT ANALYSIS – EQSTRA FLEET Reported Reported Proforma REVENUE VALUE CHAIN Rm 2021 2020 Adj¹ 2020 Revenue 1 769 1 860 1 860 18% 48% 18% REMARKETING RENTAL EBIT ² 234 131 120 251 PBT ² Leasing assets 108 2 769 (46) 2 732 120 74 2 732 2021 48% 34% 34% Total assets 3 255 3 117 3 117 VALUE ADD
Slide 16: Business Unit Analysis – Eqstra Leasing Book
BUSINESS UNIT ANALYSIS – EQSTRA LEASING BOOK Leasing book remains healthy with risks well managed: • Credit risk: The book remains well diversified in terms of industry exposure and primarily blue-chip customers. The top 5 customers account for around 40% of the Leasing asset net book value • Intere
Slide 17: Business Unit Analysis – AG Lubricants
BUSINESS UNIT ANALYSIS – AG LUBRICANTS PETROCHEMICALS Rm 2021 2020 2021 Revenue 908 778 AG LUBRICANTS • Y-on-Y Revenue ↑ 17% from higher volumes and a significant EBIT 52 37 increase in the price of base oils • Profitability impacted by more profitable product mix of PBT 68 31 product Inventory 210
Slide 18: Business Unit Analysis – WAG
BUSINESS UNIT ANALYSIS – WAG PETROCHEMICALS Rm 2021 2020 2021 Revenue 1 259 896 WAG • Y-on-Y Revenue ↑ 41% with record revenues EBIT ¹ 46 36 • Higher demand from mining, industrial and packaging manufacturing customers and new business growth PBT ¹ 43 32 • Operating overheads well contained Inventor
Slide 19: Business Unit Analysis – New Way Power
BUSINESS UNIT ANALYSIS – NEW WAY POWER EQUIPMENT Rm 2021 2020 2021 Revenue 319 276 NEW WAY POWER • Y-on-Y Revenue ↑16% EBIT (30) (22) • Profitability impacted by the completion of a large data centre installation, but with margin pressures PBT (37) (31) • Challenging construction market amidst a mor
Slide 20: Business Unit Analysis – Austro
BUSINESS UNIT ANALYSIS – AUSTRO EQUIPMENT Rm 2021 2020 2021 Revenue 124 107 AUSTRO • Y-on-Y Revenue ↑ 16% EBIT 1 (20) • Continued recovery after COVID-19 related lock down restrictions eased PBT 2 (20) • Significant operating cost reductions Inventory 23 44 • Good cash flow from stringent working ca
Slide 21: Business Unit Analysis – EIE SA
BUSINESS UNIT ANALYSIS – EIE SA DISCONTINUED OPERATION ² Reported Reported Proforma REVENUE VALUE CHAIN Rm 2021 2020 Adj¹ 2020 Revenue 2 111 1 890 1 890 9% 38% 38% USED RENTAL EBIT ³ 210 178 38 216 EQUIPMENT 9% PBT ³ Leasing assets 84 1 952 1 916 5 38 43 1 916 2021 Total assets 2 952 3 091 3 091 28%
Slide 22: Business Unit Analysis – EIE SA Leasing Book
BUSINESS UNIT ANALYSIS – EIE SA LEASING BOOK Leasing book remains healthy with risks well managed: • Credit risk: The book remains well diversified with the largest customer comprising 5% and top 10 customers comprising 21% of the long-term forklift leasing book • Interest rate risk: Most of the con
Slide 23: Disposal Group Held for Sale
Be DISPOSAL GROUP HELD FOR SALE
Slide 24: Disposal Group Held for Sale – Current Year
DISPOSAL GROUP HELD FOR SALE – CURRENT YEAR Impact Handling (UK): Shown as an asset held for sale and discontinued operation • During November 2020, Board decided to proceed to divest a business with the aim of reducing overall gearing of enX Group • Shareholders are referred to the SENS announcemen
Slide 25: Divestment of EIE SA to CFAO Holdings
DIVESTMENT OF EIE SA TO CFAO HOLDINGS • SENS Announcement: 30 September 2021 • Heads of Terms which are binding in nature • Aggregate consideration: R700m, subject to an adjustment for leakage (net of tax) • Rationale: - Attractive opportunity to monetarise investment at a valuation that fairly refl
Slide 26: Assets Held for Sale – Prior Year
ASSETS HELD FOR SALE – PRIOR YEAR Eqstra: Represented as a continuing operation in prior year • In May 2020, the disposal of Eqstra did not become effective and Eqstra was reclassified from a discontinued operation to a continuing operation • The prior year results have been represented as though Eq
Slide 27: Financial Review
FINANCIAL REVIEW
Slide 28: Financial Review
FINANCIAL REVIEW Key performance indicators: Total operations (R millions, unless stated) 2021 2020 Revenue 7 677 7 206 Operating profit * 779 382 Headline earnings/(loss) 377 (36) Basic earnings/(loss) per share (cents) 165 (283) Diluted earnings/(loss) per share (cents) 165 (283) Headline earnings
Slide 29: Condensed Statement of Financial Position
FINANCIAL REVIEW CONDENSED STATEMENT OF FINANCIAL POSITION R millions Aug 2021 Aug 2020 Goodwill and intangibles 33 166 Leasing assets 2 770 6 087 Inventories 665 1 622 Trade and other receivables 811 1 070 Property, plant and equipment 133 409 Right of use asset (IFRS 16) 127 212 Other assets 125 1
Slide 30: Condensed Statement of Cash Flows
FINANCIAL REVIEW CONDENSED STATEMENT OF CASH FLOWS R millions 2021 2020 Cash generated from operations before working capital movements 1 930 1 861 Working capital movements 750 610 Cash generated from operations 2 680 2 471 Interest and taxation paid (335) (475) Net cash flows from operating activi
Slide 31: Gross Interest-Bearing Borrowings
FINANCIAL REVIEW GROSS INTEREST-BEARING BORROWINGS Funding facilities (R’million) Facility size (Utilised)/surplus Liquidity Eqstra 2 300 (1 791) 509 Term 1 700 (1 700) - Revolving 400 (20) 380 General banking * 200 (71) 129 EIE SA 2 095 (1 562) 533 Borrowing base 1 585 (1 316) 269 General banking *
Slide 32: Material Covenant Levels
FINANCIAL REVIEW MATERIAL COVENANT LEVELS Eqstra Covenants Level Aug 21 Net total debt: EBITDA ≤3.5x 2.4x EBITA: net finance charges ≥1.30x 2.1x Net total debt: equity ≤3.25x 2.3x Loan to value ≤0.80x 0.6x EIE SA Covenants Level Aug 21 EBITDA : Net finance charges >3.00x 5.3x Non-performing lease bo
Slide 33: Maturity Profile
FINANCIAL REVIEW MATURITY PROFILE Combined maturity profile (Rm) 1 600 1 200 800 400 0 FY 2022 FY 2023 FY 2024 FY 2025 Eqstra EIE SA Trading 33
Slide 34: Outlook
OUTLOOK
Slide 35: Outlook
OUTLOOK • Trading activities expected to continue to recover • Negotiations are underway with Eqstra’s bankers to reduce gearing and obtain better costs of funding • Within Eqstra, the diversified customer base with annuity income and in use fleet provides a stable income stream. Some growth is expe
Slide 36: Q&A
Q&A