Slide 1: Audited Results for the Year Ended 30 June 2025
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2025 AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2025 1
Slide 2: Agenda
AGENDA OPERATIONAL REVIEW Gary Chaplin FINANCIAL REVIEW Frans Olivier GROUP OUTLOOK Frans Olivier Q&A Gary Chaplin/Frans Olivier AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2025 2
Slide 3: Operational Review
OPERATIONAL REVIEW Gary Chaplin Chief executive officer AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2025 3
Slide 4: Key Takeaways from the FY25 Results
KEY TAKEAWAYS FROM THE FY25 RESULTS Operating environment • Trading conditions remained challenging, fourth quarter particularly difficult • Volume, pricing and margin pressure across the group Highlights • Projects of c. R2.6 billion ramped up to full capacity (PG Bison’s new MDF line the largest);
Slide 5: Divisional Contribution
DIVISIONAL CONTRIBUTION Revenue* Operating profit 21% (FY24: 19%) 36% (FY24: 43%) PG Bison PG Bison 32% (FY24: 31%) 26% (FY24: 16%) Safripol Safripol 31% (FY24: 33%) 23% (FY24: 23%) Unitrans Unitrans 8% (FY24: 9%) 9% (FY24: 12%) Feltex Feltex 6% (FY24: 6%) 8% (FY24: 6%) Sleep Group Sleep Group 2% (F
Slide 6: PG Bison
PG BISON Successful ramp-up of MDF line, with significant progress made in selling additional MDF • Ramp-up of new MDF line ahead of feasibility, with full utilisation during the fourth quarter: Operational feasibility metrics achieved Revenue • Panel sales volumes increased by 13%, resulting in h
Slide 7: PG Bison MDF Project
PG BISON MDF PROJECT New MDF line presents meaningful future growth opportunities Project scope • 274 000 m3 new MDF line at Mkhondo facility (33% increase in total capacity) • R2.1 billion investment, construction commenced in April 2021, concluded June 2024 Rationale • Consolidate PG Bison as the
Slide 8: Safripol
SAFRIPOL Results supported by increased production and sales volumes • HDPE production efficiency improved following completion of R402 million HDPE conversion and extruder project in 2H24 Revenue • Production increased by 19%, largely due to prior year production constraints not recurring R9 692 mi
Slide 9: Unitrans
UNITRANS Restructuring sets the foundation for improved performance and growth • Revenue lower mainly due to exit of low-margin, low-return activities and subdued demand: Good 1H25 could not be sustained in 2H25, affected by weaker market conditions Revenue • Operating profit declined by 14%: R9 3
Slide 10: Feltex
FELTEX 2H25 results materially better following temporary customer production disruptions in 1H25 • New vehicle assembly volumes declined by 13%, with some temporary disruptions in 1H25: All seven OEM volumes down on prior Revenue Key model changeover at one OEM, technical-related challenges at
Slide 11: Sleep Group
SLEEP GROUP Positive momentum in performance continues • Revenue 7% higher largely due to an increase in sales volumes of bedding units: Consumers remained price-conscious Revenue Extensive marketing, demand creation and promotional activities supported sales R1 834 million 7% • Operating prof
Slide 12: Optix
OPTIX Continued investment in product and infrastructure to support growth • Revenue increased by 1%: Subscriber base grew by 3% Revenue Hardware sales were mostly replacement units, to ensure compatibility with network R602 million upgrades 1% Potential new sales pipeline conversion affecte
Slide 13: Financial Review
FINANCIAL REVIEW Frans Olivier Chief financial officer and chief executive officer designate AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2025 13
Slide 14: Salient Features of the FY25 Results
SALIENT FEATURES OF THE FY25 RESULTS Revenue EBITDA Operating profit R29.6 billion R3.4 billion R1.9 billion 2% 7% 14% Operating margin Headline earnings per share Earnings per share 6.5% 24.1 cents 0.4 cents 120 bps 47% 99% Net working capital Cash flow from operations Free cash flow be
Slide 15: Group Revenue
GROUP REVENUE Increased by 2% compared with prior year (Rm) 3 000 380 (357) Revenue growth supported by: PG Bison MDF capacity 2 500 569 (225) 7 65 29 615 expansion 114 Normalised production 2 000 29 062 in Safripol Revenue decline mainly due to: 1 500 Unitrans restructuring, subdued demand an
Slide 16: Group Operating Profit
GROUP OPERATING PROFIT Decreased by 14% compared with prior year (Rm) 1 050 Operating profit declined mostly due to: 2 250 (284) PG Bison results affected by start-up and ramp-up 700 151 (72) of new MDF line Weaker performance (98) by Unitrans 34 (44) Lower domestic new vehicle 1 937 assembly
Slide 17: Financial Analysis: Income Statement
FINANCIAL ANALYSIS Income statement FY25 FY24 Variance Rm Rm % Revenue 29 615 29 062 2 Operating profit declined by 14% EBITDA 3 422 3 694 (7) mostly due to PG Bison, Feltex and Unitrans Depreciation and amortisation (1 485) (1 444) 3 Improved results from Safripol Operating profit before capital it
Slide 18: PG Bison Impact on Headline Earnings
FINANCIAL ANALYSIS PG Bison impact on headline earnings Cents Rm per share Reported headline earnings FY24 1 125 45.3 PG Bison impact: Operating profit negatively affected PG Bison (506) (20.3) by ramp-up of the MDF line, mainly R286 million production overheads Operating profit (284) (11.4) and R
Slide 19: Capital Items
FINANCIAL ANALYSIS Capital items FY25 FY25 FY24 FY24 Gross Net * Gross Net * Rm Rm Rm Rm Impairments 757 579 16 13 Impairments consist of: Goodwill 145 145 – – Optix – goodwill (R145 million) Intangible assets 272 187 – – and intangible asset (R215 million) due to Property, plant and equipment 340
Slide 20: Tax Rate Reconciliation
FINANCIAL ANALYSIS Tax rate reconciliation FY25 FY24 % % Statutory tax rate 27.0 27.0 Tax rate increase mainly due to: Taxation losses (net) 24.4 2.4 Tax losses (net) not recognised of R205 million Impairments 20.8 0.1 Impairments of R180 million, Withholding taxes 9.6 2.0 goodwill of R145 milli
Slide 21: Balance Sheet
FINANCIAL ANALYSIS Balance sheet 30 Jun 25 30 Jun 24 Rm Rm Property, plant and equipment and investment property 15 653 16 043 Investment in major projects Right-of-use assets 318 300 (R2.6 billion) completed in 2H24 Intangible assets 1 491 1 790 Net working capital R384 million Goodwill 510 659 hig
Slide 22: Net Working Capital
FINANCIAL ANALYSIS Net working capital (Rm) 950 545 3 267 750 Increase of R384 million (13%) from 30 June 2024 550 2 883 16 (177) Net inventory remained stable as reduction in PTA/PET inventory offset the impact of investment in engineering spares 350 Decline in payables mainly due: Lower Q4 PTA i
Slide 23: Cash Flow
FINANCIAL ANALYSIS Cash flow FY25 FY24 Rm Rm EBITDA 3 422 3 694 Cash generated from operations Net revaluation of biological assets (24) (49) down 13% due to: R272 million (7%) decrease Other non-cash adjustments 35 49 in EBITDA Cash generated from trading 3 433 3 694 R208 million movement Worki
Slide 24: Cash Flow (continued)
FINANCIAL ANALYSIS Cash flow (continued) FY25 FY24 Rm Rm Cash flow from operating activities 1 779 2 178 Planned reduction in expansion Investing activities (1 297) (2 257) capital expenditure (down by R1 259 million) Expansion capex* (500) (1 759) FY24 replacement Replacement capex^ (921) (423) cap
Slide 25: Investment to Drive Growth and Efficiency Benefits
FINANCIAL ANALYSIS Investment to drive growth and efficiency benefits Manufacturing capital expenditure Material and strategic items* PG Bison PG Bison MDF line Photovoltaic (9.4 MWp PV) projects (Rm) of R2 061 million of R125 million 2 000 1 843 Pre-FY25: R1 923 million Pre-FY25: R116 million 1 800
Slide 26: Investment to Drive Growth and Efficiency Benefits (continued)
FINANCIAL ANALYSIS Investment to drive growth and efficiency benefits (continued) Non-manufacturing capital expenditure* Items to highlight Unitrans Proceeds of Replacement of Expansion of Total (Rm) 1 400 1 338 R137 million R804 million R146 million R813 million (FY24: R319 million) (FY24: R400 mil
Slide 27: Treasury Activity: Net Interest-Bearing Debt
TREASURY ACTIVITY Net interest-bearing debt 3 950 (Rm) 1 000 (8) 20 (8) (12) (692) 3 450 Decrease of R220 million from 30 June 2024 8 326 (2 070) 2 950 8 106 R1 550 million raised through a public bond auction on 19 May 2025 1 550 2 450 Concluded a new R1 000 million, 18-month term facility in Septe
Slide 28: Treasury Activity: Debt Serviceability Ratios
TREASURY ACTIVITY Debt serviceability ratios Bank covenant FY25 30 Jun 25 30 Jun 24 Gross interest-bearing debt (Rm) 10 196 9 724 Net debt: EBITDA Net interest-bearing debt (Rm) 8 106 8 326 internal limit < 2.5 times Equity excluding non-controlling interest (Rm) 12 443 12 475 EBITDA: interest cover
Slide 29: Treasury Activity: Significant Debt Funding Activities
TREASURY ACTIVITY Significant debt funding activities for the period Revolving credit facility (‘RCF’) concluded in FY24 • R2 billion in three-year and R1 billion in five-year tenures at more favourable rates • Covenant ratchet on interest cover for the next three financial years ›› FY24: > 3.0 time
Slide 30: Net Interest-Bearing Debt Maturity at June 2025
TREASURY ACTIVITY Net interest-bearing debt maturity at 30 June 2025 (Rm) 6 000 5 429 5 000 2 339 Debt maturity profile allows for planned 4 000 reduction of net debt in FY26 and into FY27 as major projects contribute to cash flow 3 000 generation and underperforming businesses, 1 000 2 000 mostly U
Slide 31: Group Outlook
GROUP OUTLOOK Frans Olivier Chief financial officer and chief executive officer designate AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2025 31
Slide 32: Group Outlook
GROUP OUTLOOK • KAP well-positioned to weather an uncertain macroeconomic environment locally and globally: Major projects fully ramped up, debt refinanced for 1H26 and strong executive teams Operational and financial effects related to major projects (including lower tax incentives) will ease o
Slide 33: Q&A
Q&A AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2025
Slide 34: Appendix
APPENDIX AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2025
Slide 35: Group Revenue, Operating Profit and HEPS
FINANCIAL ANALYSIS Group revenue, operating profit and HEPS Revenue Operating profit Headline earnings per share 74.4 (Rm) (Rm) (Cents) 37.2 2 936 1 384 2 523 29 628 29 062 29 615 27 979 2 250 1 008 47.3 14 363 14 260 2 102 45.3 23 956 14 034 1 937 43.0 14 330 998 998 13.5 23.5 784 20.0 11 842 37.2
Slide 36: Group Margin Analysis
FINANCIAL ANALYSIS Group margin analysis Group FY25 6.5% FY24 7.7% FY23^ 8.5% FY22 10.5% FY21 8.8% PG Bison Safripol Unitrans FY25 11.3% FY25 5.2% FY25 4.7% FY24 17.4% FY24 3.8% FY24 5.2% FY23 17.4% FY23^ 8.9% FY23 3.8% FY22 17.0% FY22 13.8% FY22 5.9% FY21 14.7% FY21 5.7% FY21 7.4% Feltex Sleep Grou
Slide 37: ROCE Performance per Division
FINANCIAL ANALYSIS ROCE performance per division Net operating asset contribution Return on capital employed 39% (FY24: 36%) 8.2% (FY24: 12.8%) PG Bison PG Bison 21% (FY24: 23%) 9.9% (FY24: 6.8%) Safripol Safripol 26% (FY24: 26%) 7.3% (FY24: 8.2%) Unitrans Unitrans 7% (FY24: 7%) 10.8% (FY24: 17.6%)