Metair Investments Limited · JSE:MTA
Metair Investments — H1 2021 Earnings Presentation
31 slides from Metair Investments's earnings presentation, Aug 19, 2021
Slide 1: 2021 Interim Results Presentation
2021 INTERIM RESULTS PRESENTATION 19 AUGUST 2021
Slide 2: Safety Message
SAFETY MESSAGE COVID-19 IS STILL WITH US… DO NOT BECOME COMPLACENT! ADDITIONAL WAVES VACCINATE TAKE CARE OF YOURSELF CAN BE EXPECTED Vaccines train your immune system using a harmless form of the virus EAT STAY SAFE EXERCISE HEALTHILY TAKE CARE OF EACH OTHER We are a community, REMAIN VIGILANT let’s
Slide 3: Agenda
AGENDA Welcome and opening observations Salient features Operational and financial review Outlook and prospects Q&A Appendices Appendices 3
Slide 4: Welcome and Opening Observations
WELCOME AND OPENING OBSERVATIONS 4
Slide 5: Top of Mind Issues
TOP OF MIND ISSUES • Settling organisation and leadership team during H1 • Ensuring project delivery for both verticals on track • Managing Covid-19 disruptions › Human impact › Supply chain coordination and stabilisation › Chip shortage – unplanned costs › Travel restrictions/reluctance – broader b
Slide 6: Salient Features
SALIENT FEATURES 6
Slide 7: Salient Features at Group Level
SALIENT FEATURES AT GROUP LEVEL POSITIVE NO INTERIM REVENUE EBITDA* OPERATING PROFIT NET DEBT FREE CASH FLOW DIVIDEND FOR FY21 Increased by R366m dividend of 75cps R475m increased 53% to increased 405% to increased to R545m from Dec 20 to declared and paid R5.9bn R701m from R18m loss R1,171bn on FY2
Slide 8: Operational and Financial Review
OPERATIONAL AND FINANCIAL REVIEW 8
Slide 9: Automotive Components: Operational Performance
AUTOMOTIVE COMPONENTS: OPERATIONAL PERFORMANCE DIRECTLY DEPENDENT ON SA OEM PRODUCTION – RECOVERY AS EXPECTED OEM Dec 2020 Jun 2020 Jun 2021 Change TSAM 103 461 41 076 61 660 20 584 SOUTH FMCSA 65 503 22 343 55 598 33 255 VWSA 114 158 51 949 66 673 14 724 AFRICA MBSA 51 558 19 230 29 848 10 618 BMW
Slide 10: Energy Storage: Operational Performance
ENERGY STORAGE: OPERATIONAL PERFORMANCE PERFORMANCE AHEAD OF RECOVERY EXPECTATIONS DUE TO A 42% INCREASE IN AUTOMOTIVE SALES VOLUMES LARGELY DRIVEN BY HIGHER EXPORT DEMAND • Mutlu benefitted from the normalization of Turkish OEM production, but also continues to increase market share in new technolo
Slide 11: H1 2021 Group Results at a Glance
H1 2021 GROUP RESULTS AT A GLANCE HEPS PBIT EBITDA (*Excluding Moll impairment) 170cps R545m R701m 404% 405% (H1 2020: R139m*) (H1 2020: -56cps) (H1 2020: -R18m) Free cash flow PBIT % ROIC Unadjusted - R142m 9.2% 16.3% (H1 2020: 7.8%) 304% 9.6ppt 8.5ppt/ Adjusted* (H1 2020: R70m) (H1 2020: -0.5%) 5.
Slide 12: H1 2021 Vertical Performance
H1 2021 VERTICAL PERFORMANCE STRONG PERFORMANCE DEMONSTRATES BENEFITS OF VERTICAL STRUCTURE, AGILITY AND RESILIENCE WHICH SUPPORTED OUR COVID-19 RECOVERY Energy Storage vertical H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 R2,5bn R3,3bn R1,9bn R3,5bn R3,9bn R5,9bn Revenue 57% 48% 43% 52% contribu
Slide 13: H1 2021 Vertical Performance – 'Pre Covid-19'
H1 2021 VERTICAL PERFORMANCE – ‘PRE COVID-19’ METAIR’S RECOVERY IS AHEAD OF EXPECTATION DESPITE VARIOUS SUPPLY CHAIN DISRUPTIONS IMPACTING MANUFACTURING EFFICIENCY AND LOGISTICS COST. Energy Storage vertical H1 2019 H1 2021 H1 2019 H1 2021 H1 2019 H1 2021 R3,0bn R3,3bn R3,0bn R3,5bn R5,3bn R5,9bn Re
Slide 14: Financial Highlights: Income Statement
FINANCIAL HIGHLIGHTS: INCOME STATEMENT • Revenue increased to R5.9bn and operating margin up 9.6ppt R'million Dec 2020 Jun 2020 Jun 2021 % Change to 9.2%, driven by strong volume recovery in both verticals Revenue 10 235 3 880 5 934 53% • Group operating profit increase of R563m, mainly attributed t
Slide 15: Financial Highlights: Income Statement
FINANCIAL HIGHLIGHTS: INCOME STATEMENT R'million Dec 2020 Jun 2020 Jun 2021 % Change Attributable profit/(loss) 174 (216) 327 252% Headline earnings/(loss) 284 (107) 327 407% Earnings/(loss) per share (cents per share) 91 (112) 170 251% Weighted avg. number of shares ('000) 192 118 191 942 192 618 <
Slide 16: Financial Highlights: Balance Sheet
FINANCIAL HIGHLIGHTS: BALANCE SHEET • Non-current assets decreased marginally from December due to: R'million Dec 2020 Jun 2020 Jun 2021 Non-current assets 3 760 4 154 3 625 › Delayed 2020 capital spend off-set by depreciation and amortisation Property, plant and equipment 2 618 2 861 2 583 Intangib
Slide 17: Financial Highlights: Balance Sheet
FINANCIAL HIGHLIGHTS: BALANCE SHEET • Total net borrowings of R1.2 billion, consistent with Dec’20 but R'million Dec 2020 Jun 2020 Jun 2021 will increase as new projects are completed Total equity 4 215 4 215 4 013 • RCF funding successfully extended for up to 5 years - Non-current liabilities 1 028
Slide 18: Financial Highlights: Balance Sheet
FINANCIAL HIGHLIGHTS: BALANCE SHEET • Net working capital days improved to 64 days, from the R'million Dec 2020 Jun 2020 Jun 2021 position at Dec’20 as well as prior year. Although days improved, this still resulted in a R247m (from Dec’20) increase Inventory 1 695 2 034 1 929 in net working capital
Slide 19: Financial Highlights: Capital and Debt Structure
FINANCIAL HIGHLIGHTS: CAPITAL AND DEBT STRUCTURE STRONG FINANCIAL POSITION - PROACTIVE CAPITAL AND DEBT MANAGEMENT • Net debt increased due to a combination of higher operating % Dec 2020 Jun 2020 Jun 2021 levels and new project investments for customer models and Debt* : Equity 58% 63% 58% facelift
Slide 20: Capital Expenditure and Commitments (Including Hesto)
CAPITAL EXPENDITURE AND COMMITMENTS (INCLUDING HESTO) R1.2BN ALLOCATED CAPITAL STILL TO BE SPENT, LARGELY FOR CUSTOMER NEW MODELS AND EXPANSION 2021 is a significant year of investment for secured new model Capital expenditure spent to date launches and facelifts for Toyota, Ford, VW and Isuzu Healt
Slide 21: H1 2021 Results at a Glance: Automotive Components Vertical
H1 2021 RESULTS AT A GLANCE: AUTOMOTIVE COMPONENTS VERTICAL Revenue PBIT EBITDA 88% 632% 1 548% R3.5bn R254m R339m Free cash PBIT % ROIC flow 63% 9.9ppt 11.3ppt -R128m 7.3% 22.3% • Turnover recovered to 116% of 2019 levels • Free cash for the period improved when compared to H1’20 • Significant ship
Slide 22: H1 2021 Results at a Glance: Energy Storage Vertical
H1 2021 RESULTS AT A GLANCE: ENERGY STORAGE VERTICAL Revenue PBIT EBITDA 32% 342% 134% R3.3bn R328m R418m Free cash PBIT % ROIC flow -129% 7.1ppt 12.5ppt -R98m 10.1% 23.5% • Turnover recovered to 107% of 2019 levels and operating profit • Excellent first half volume performance with a 42%, or 1.2m u
Slide 23: Energy Storage Automotive Margins Were Strong
ENERGY STORAGE AUTOMOTIVE MARGINS WERE STRONG 4 000 • Total automotive battery margins increased from 4.1% to 11.1% 2 988 3 000 Auto Exports 2 232 R’million 2 000 • Auto exports EBIT margin increased from 4.8% to 12.9% Revenue 1 000 237 272 • Improved quality of earnings at Mutlu and Rombat, with ha
Slide 24: Energy Storage – Overall Exceptional Results for H1 2021
ENERGY STORAGE – OVERALL EXCEPTIONAL RESULTS FOR H1 2021 • FNB’s EBIT increased from R13m to R103m from prior period comparative • In ZAR terms, Mutlu’s EBIT increased by R123m from prior period comparative, delivering R160m compared to R37m • Rombat operating result up 167% (or R40m), as OES and OE
Slide 25: Outlook and Prospects
OUTLOOK AND PROSPECTS 25
Slide 26: Positive Outlook for H2
POSITIVE OUTLOOK FOR H2 BUT WITH INCREASED INVESTMENT AND PROJECT COSTS • Our priority is to support flawless new model launches and facelifts while maintaining positive operating activity momentum • We will continue to drive effective project management and improve operating efficiencies to maintai
Slide 27: Key Factors Expected to Impact FY21 Outlook
KEY FACTORS EXPECTED TO IMPACT FY21 OUTLOOK • We still expect FY21 local OEM manufacturing levels to be • Expecting strong momentum from H1 to continue in H2, and >90% of FY19 a much improved full-year outlook for automotive battery sales volumes • However we expect our key customer volumes to appro
Slide 28: Q&A
Q&A 28
Slide 29: Disclaimer
DISCLAIMER The information supplied herewith is believed to be correct but the accuracy thereof at the time of going to print is not guaranteed. The company and its employees cannot accept liability for loss suffered in consequence of reliance on the information provided. Provision of this data does
Slide 30: Appendices
APPENDICES 30
Slide 31: Energy Storage Volumes (Last Twelve Months)
ENERGY STORAGE VOLUMES (LAST TWELVE MONTHS)(ROUNDED) 1. Total volumes by operation (including 2. Automotive volumes by market 3. Mutlu automotive volumes industrial) 4. Rombat automotive volumes 5. FNB automotive volumes 6. Industrial volumes 31