Metair Investments Limited · JSE:MTA
Metair Investments — H1 2024 Earnings Presentation
30 slides from Metair Investments's earnings presentation, 2024
Slide 1: H1 2024 Results Presentation
H1 2024 RESULTS PRESENTATION
Slide 2: Agenda
AGENDA 2 INTRODUCTION FINANCIAL REVIEW OPERATIONAL REVIEW ~ PROFORMA SUMMARIES OUTLOOK Q&A
Slide 3: Introduction
METAIR INVESTMENTS LIMITED automotive | industrial | retail INTRODUCTION
Slide 4: H1'2024 Results Summary
H1’2024 RESULTS SUMMARY 4 EBITDA* EBIT REVENUE decreased 27% to decreased 59% to HEPS FREE CASH FLOW increased 4% to R385m R134m decreased to a loss of utilised R8bn (Pre-HI: R729m) (Pre-HI: R537m) 3cps R211m H1'23: R7.6bn H1'23: R529m H1'23: R324m H1'23: 41cps profit H1'23: R384m utilised (Pre-HI:
Slide 5: Immediate Priorities
IMMEDIATE PRIORITIES 5 Stabilise leadership • Increased HQ strategic control • Hold MDs accountable for agreed KPIs • Appoint new HR executive Comp comm issue Address debt levels • Finalise response to Statement of Objection • Delayed non-critical capital expenditure • Medium to long-term issue • R5
Slide 6: Progress Against Priorities
PROGRESS AGAINST PRIORITIES 6 Leadership stabilised; Head Office fully capacitated; KPIs set and business managed against those Announcement made on 17 September for sale of Mutlu; removes offshore debt from Metair Balance sheet; SA Debt restructuring plan approved by Board and will be implemented o
Slide 7: High Level Overview of H1 2024 Financial Performance
HIGH LEVEL OVERVIEW OF H1 2024 FINANCIAL PERFORMANCE 7 • Despite lower local OEM volumes; Automotive Vertical including Hesto maintained profitability through cost control and continued turnaround in Hesto delivering an overall PBIT margin of 5% • Good performances from FB and Rombat in Energy Stora
Slide 8: Detailed Terms Announcement Regarding the Disposal of Metair's Turkish Operations
DETAILED TERMS ANNOUNCEMENT REGARDING THE DISPOSAL OF 8 METAIR’S TURKISH OPERATIONS Perimeter The disposal of Metair’s 100% shareholding in Mutlu held through its wholly-owned subsidiary Metair International Holdings Coöperatief U.A (the “Disposal”) Overview of Purchaser Quexco Incorporated (founded
Slide 9: Conditions Precedent
CONDITIONS PRECEDENT 9 Shareholder approval Category 1 transaction in terms of JSE Listing Requirements Requires >50% shareholder approval Turkish Competition Board Receipt of unconditional approval from the Turkish Competition Board for the approval Disposal Mutlu Funding refinancing Refinancing of
Slide 10: Disposal Rationale
DISPOSAL RATIONALE 10 Group operational risk profile enhanced: • Improves the Group’s operational risk profile as Mutlu operates under challenging macroeconomic and operational conditions, including hyperinflation and a challenging labour market: • Mutlu is currently a net user of hard currency (i.e
Slide 11: Indicative Timeline
INDICATIVE TIMELINE METAIR ~aaomotive edi Tre 16 September 2024 17 September 2024 30 September 2024 29 October 2024 Q4 2024 Q4 2024
Slide 12: Financial Review
METAIR INVESTMENTS LIMITED automotive | industrial | retail FINANCIAL REVIEW
Slide 13: Financial Overview: Income Statement (Reported)
FINANCIAL OVERVIEW: INCOME STATEMENT (REPORTED) 13 Earnings impacted by increased financing costs and hyperinflation in Türkiye (Mutlu). HEPS loss limited to 3cps (H1’23: 41 cps gain) supported by earnings from local SA operations. Dec Jun Jun R'million % Change 2023 2023 2024 Revenue 15 856 7 639 7
Slide 14: Financial Overview: Balance Sheet (Reported)
FINANCIAL OVERVIEW: BALANCE SHEET (REPORTED) 14 Dec Jun Jun R'million 2023 2023 2024 Non-current assets Debt maturities (R'million) 5 867 5 477 6 358 Property, plant and equipment and Intangibles 5 245 4 922 5 535 Other non-current assets 622 555 823 1800 Current assets 7 242 7 973 7 486 1600 941 14
Slide 15: Net Debt Structure
NET DEBT STRUCTURE 15 Net Debt at Mutlu grew 94% due to low cash generation, loss of Russian exports and change in the nature of ‘factoring’. Net Debt (R'million) Debt Bridge (R'million) 6,000 Total Debt: Total Debt: 5 522 5 221 5,000 Total Debt: 4 551 2,146 1,995 Total Debt: 4,000 (770) 3 747 1,720
Slide 16: Cash Flow Analysis – Interest Paid Largest Contributor to Outflows
CASH FLOW ANALYSIS – INTEREST PAID LARGEST 16 CONTRIBUTOR TO OUTFLOWS 417 709 (255) R’million 626 567 Includes: R’million (90) Interest received 47 Acquisition of PPE (234) Acquisition of intangibles (8) (443) 9 (100) (188) Cash & cash Cash generated Working Capital Net interest paid Taxation paid D
Slide 17: Operational Review
METAIR INVESTMENTS LIMITED automotive | industrial | retail OPERATIONAL REVIEW
Slide 18: Volumes
VOLUMES 18 SA OEM volumes declined 7%, key customer down 29%. battery volumes 10% up mainly due to exports OE M 2023 J un 2023 J un 2024 % Change Auto batte ry units in '000 s De c 2023 J un 2023 J un 2024 Change % TS AM 115 327 76 272 54 115 (29% ) F irs t B attery 1 665 864 786 (79) (9% ) F MCS A
Slide 19: Operational Overview – IFRS Reported
OPERATIONAL OVERVIEW – IFRS REPORTED 19 R’million H1 23 H1 24 VAR (%) H1 23 H1 24 VAR (%) H1 23 H1 24 VAR (%) REVENUE 3 738 4 609 23 6 581 6 218 (6) 7 639 7 951 4 121 6 (95) (448) 308 >100 324 134 (59) OPERATING PROFIT EBITDA* 232 133 (43) (283) 496 >100 529 385 (27) OPERATING PROFIT % 3.2 0.1 (6.8)
Slide 20: Operational Overview – Normalised
OPERATIONAL OVERVIEW – NORMALISED** 20 R’million H1 23 H1 24 VAR (%) H1 23 H1 24 VAR (%) H1 23 H1 24 VAR (%) REVENUE 4 036 4 536 12 6 581 6 218 (6) 7 937 7 879 (1) 291 392 35 (448) 308 >100 506 537 6 OPERATING PROFIT EBITDA* 379 477 26 (284) 496 >100 676 729 8 OPERATING PROFIT % 7.2 8.6 (6.8) 5.0 6.
Slide 21: Working Capital
WORKING CAPITAL 21 Net Working Capital Net Working Capital Days 8,0 4,00 200 90 3,73 77 Days 84 Days 150 85 6,0 0,4 0,4 3,50 8 8 3,33 59 59 100 80 2,6 2,6 4,0 3,00 50 7 Days 75 R’billion 76 76 2,0 2,50 - 70 3,3 3,3 (66) (59) (50) 65 - 2,00 (100) 60 (2,9) (2,6) Dec 2023 H1'24 (2,0) 1,50 Inventory Tra
Slide 22: Capital Expenditure
CAPITAL EXPENDITURE 22 Capital Commitments by vertical R’000 Maintenance and Efficiency and Health & safety Total general expansion Automotive components 123 219 308 843 14 422 446 484 Energy Storage 81 482 70 032 78 117 229 631 • Capital Total Group 204 701 378 875 92 539 676 115 expenditure tightl
Slide 23: Proforma Summaries
METAIR INVESTMENTS LIMITED automotive | industrial | retail PROFORMA SUMMARIES
Slide 24: Disposal of Mutlu – Proforma Extracted from Circular
DISPOSAL OF MUTLU – PROFORMA EXTRACTED FROM CIRCULAR 24 Income statement – disposal impact on 1 January 2024 Balance sheet – disposal impact as at 30 June 2024 Metair Group results Pro forma impact Proceeds and Pro Forma after 30 June 2024 of Mutlu disposal disposal costs the Disposal R'million Non-
Slide 25: Impact of Mutlu Carved Out and Hesto Consolidated
IMPACT OF MUTLU CARVED OUT AND HESTO CONSOLIDATED 25 (UNAUDITED/MANAGEMENT PROJECTION) The exclusion of Mutlu and inclusion of Hesto enhances earnings (everything else kept consistent) MUTLU EXCLUDED FOR THE PERIOD MUTLU EXCLUDED HESTO INCLUDED GR OUP GR OUP EX CL UDING GR OUP EX CL UDING MUTL U AND
Slide 26: Outlook
METAIR INVESTMENTS LIMITED automotive | industrial | retail OUTLOOK
Slide 27: Strategic Priorities
STRATEGIC PRIORITIES 27 A refined strategy focused on the Sub- Saharan African sector: After conclusion of the With the sale of Mutlu Disposal, Metair will the effects of primarily be an hyperinflation and high automotive component Remaining total Metair interest rates (circa manufacturing business
Slide 28: Full Year Outlook
FULL YEAR OUTLOOK 28 OEM volumes remain subdued, and we expect volumes to be less than 600 000 vehicles for FY24 Mutlu will be disclosed as a discontinued operation and the adverse effects of hyper- inflation and high interest costs will be eliminated from continuing operations for the full year Our
Slide 29: Metair Investments Limited
METAIR INVESTMENTS LIMITED ‘automotive | industrial I retal
Slide 30: Disclaimer
DISCLAIMER 30 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 d