Slide 1: Results Presentation for the year ended 31 August 2024
24 RESULTS PRESENTATION For the year ended 31 August
Slide 2: Contents
CONTENTS 01. Who we are 02. Our purpose and who we represent 03. Highlights and key focus areas 04. Financial performance 05. Building our business units 06. Disposal group held for sale 07. Financial review 08. Outlook 2
Slide 3: Who we are
01 WHO WE ARE
Slide 4: Who we are
WHO WE ARE LUBRICANTS HEADCOUNT BLENDING AND DISTRIBUTION OF LUBRICANTS: Oil lubricants, greases and base oils 138 2023: 128 CHEMICALS HEADCOUNT DISTRIBUTION OF CHEMICALS: Polyolefins, styrenics, rubber and speciality chemicals 48 2023: 46 POWER HEADCOUNT DISTRIBUTION, RENTAL AND VALUE-ADDED SERVICE
Slide 5: Our purpose and who we represent
02 OUR PURPOSE AND WHO WE REPRESENT
Slide 6: Our purpose
OUR PURPOSE enX Group is a manufacturer and distributor of quality branded lubricants and power equipment and a distributor of quality branded chemicals • Quality brands and products - Lubricants - Chemicals - Power • Stock on-the-ground • Nationwide distribution • Currency matching • Technical expe
Slide 7: Who we represent
WHO WE REPRESENT BRAND RECOGNITION LUBRICANTS CHEMICALS POWER MARKETING EXPERTISE #1 #1 RESEARCH AND DEVELOPMENT #1 #1 GROWTH OPPORTUNITIES SUPPORTED WITH CONFIDENCE BY GLOBAL TOP 10 AND LEADING INTERNATIONAL BRANDS 7
Slide 8: Highlights and key focus areas
03 HIGHLIGHTS AND KEY FOCUS AREAS
Slide 9: Highlights and key focus areas
HIGHLIGHTS AND KEY FOCUS AREAS 1. Excluding once off items, good trading performance for the year ended 31 August 2024 - Supported by increasing margins in both Lubricants and Chemicals segments - Strong financial position 2. Disposal of Eqstra to Nedbank - Refer section 6 of the Investor Presentati
Slide 10: Highlights and key focus areas
HIGHLIGHTS AND KEY FOCUS AREAS 5. Securing a sustainable and robust capability for AG Lubricants - In 2021, secured a six-year supply and distribution agreement with ExxonMobil - In 2022, implemented a transaction between AGL and Abakhulu to secure base oil supply - In December 2022, acquired the bl
Slide 11: Highlights and key focus areas
HIGHLIGHTS AND KEY FOCUS AREAS 8. Release of EIE SA disposal escrow - Full release of R135 million escrow held for warranties and indemnities (‘’W&I’’) in April 2024 9. C Butters v TRP and others - Notice published by TRP on SENS on 13 April 2023 where TRP agreed to settle its investigation into cer
Slide 12: Financial performance
04FINANCIAL PERFORMANCE
Slide 13: Financial performance
FINANCIAL PERFORMANCE • Revenue from continuing operations of R4.078 billion (2023: R4.195 billion), down 3% • Operating profit ¹ of R194 million (2023: R248 million), down 22% - Improved margins year-on-year within AGL Lubricants and WAG - New Way has been negatively impacted with no-loadshedding o
Slide 14: Building our business units
05 BUILDING OUR BUSINESS UNITS
Slide 15: Business unit analysis – AG Lubricants
BUSINESS UNIT ANALYSIS – AG LUBRICANTS LUBRICANTS F2024 Rm F2024 F2023 Revenue 1 673 1 686 AG LUBRICANTS • Year-on-year revenue similar to last year underpinned by higher toll EBIT ¹ 115 104 blending volumes but at lower average selling prices due to pass through of lower base oil pricing PBT - AGL
Slide 16: Business unit analysis – WAG
BUSINESS UNIT ANALYSIS – WAG CHEMICALS F2024 Rm F2024 F2023 Revenue 1 848 1 870 WAG • Year-on-year revenue ↓ 1 % EBIT 98 98 - Significantly higher polyethylene volumes offset by lower volumes of natural and synthetic rubber PBT 84 85 - Offset by lower average selling prices due to pass through of lo
Slide 17: Business unit analysis – New Way
BUSINESS UNIT ANALYSIS – NEW WAY POWER F2024 Rm F2024 F2023 Revenue 564 683 NEW WAY POWER • Revenue ↓ 17% EBIT 48 98 - Good demand for generators, especially from data-centre customers, accompanied by related maintenance services PBT 53 101 - Excluding these sales, revenue across all streams, partic
Slide 18: Disposal group held for sale
06 DISPOSAL GROUP HELD FOR SALE
Slide 19: Disposal group held for sale – current year
DISPOSAL GROUP HELD FOR SALE – CURRENT YEAR Eqstra: disposal group held for sale and discontinued operation in terms of IFRS 5 • SENS dated 12 December 2023 announcing disposal of Eqstra to Nedbank after definitive transaction agreements had been concluded • Disposal constitutes all or a greater par
Slide 20: Disposal group held for sale – current year
DISPOSAL GROUP HELD FOR SALE – CURRENT YEAR Eqstra: disposal group held for sale and discontinued operation in terms of IFRS 5 • Reported as a disposal group held for sale and discontinued operation with effect from 31 August 2023 - Depreciation and amortisation ceased from 1 September 2023 to the d
Slide 21: Financial review
07 FINANCIAL REVIEW
Slide 22: Financial review
FINANCIAL REVIEW Key performance indicators: Total operations (Rm, unless stated) F2024 F2023 % Revenue 5 520 5 950 (7) Operating profit* 531 538 (1) Operating profit on a like-for-like basis *¹ 416 538 (23) Headline earnings 539 298 81 Headline earnings on a like-for-like basis ¹ 204 298 (32) Basic
Slide 23: Condensed statement of financial position
FINANCIAL REVIEW CONDENSED STATEMENT OF FINANCIAL POSITION Rm Aug 2024 Aug 2023 ¹ Held for sale Aug 2023 ² Goodwill and intangibles 38 68 20 48 Leasing assets - 2 615 2 615 - Inventories 860 909 42 867 Trade and other receivables 717 1 055 213 842 PPE and right-of-use assets 178 227 49 178 Restricte
Slide 24: Condensed statement of cash flows
FINANCIAL REVIEW CONDENSED STATEMENT OF CASH FLOWS Rm F2024 F2023 Cash generated from operations before working capital movements 891 1 152 Working capital movements (838) (868) Cash generated from operations 53 284 Net interest and taxation paid (244) (260) Net cash (outflows)/inflows from operatin
Slide 25: Gross and net interest-bearing borrowings
FINANCIAL REVIEW GROSS AND NET INTEREST-BEARING BORROWINGS Funding facilities (Rm) Facility size (Utilised)/cash Liquidity Trading Businesses 514 (263) 251 Property and Equipment Term loan – Ingwe 48 (33) 15 Trade finance - AG Lubricants 200 (113) 87 Trade finance - WAG 260 (111) 149 Other 6 (6) - C
Slide 26: Covenant levels
FINANCIAL REVIEW COVENANT LEVELS * WAG covenants Level August 2024 Equity levels >R205m R283 m AGL covenants Level August 2024 Equity levels >R150m R337 m Debt service cover >1.25x 3.80x 90 days+ debtors <10% 1.8% Sales dilution: total sales <15% 2.3% * All covenants met throughout the reporting per
Slide 27: Outlook
= “Og OUTLOOK
Slide 28: Outlook
OUTLOOK Lubricants • Conditions expected to be stable and Chemicals • Dependent on load-shedding in presenting opportunities Power • Good order book in respect of data-centre power units • Profitability continues to be negatively impacted by no load-shedding • Macro risks to performance Group - Redu
Slide 29: 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 are included in this presentation, including, without limitation, those regarding the financial position, busine