Slide 1: Reviewed Interim Results for the Six Months Ended 31 March 2024
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2024 ZEDA Interim Results FY2024 1
Slide 2: Agenda
AGENDA Business Overview Financial Overview Strategy Update &Outlook Q&A
Slide 3: Business Overview
Business Overview ZEDA Interim Results FY2024 3
Slide 4: Navigating Through Tough Trading Environment
NAVIGATING THROUGH TOUGH TRADING ENVIRONMENT High Rising Road Intense Availability inflationary interest infrastructure competitive of new vehicle environment rates & inclement landscape stock weather ZEDA Interim Results FY2024 4
Slide 5: Clear Strategy Underpinned Results
CLEAR STRATEGY UNDERPINNED RESULTS Diversified Planning and Forecast portfolio Vehicle, Usage, Contract terms Integrated mobility business model 1 2 Financing options Flexing the lease to buy option on the rental fleet 5 3 Disposal capabilities The cost of operating Driving Retail vs Wholesale 4 Agi
Slide 6: Solid Business Fundamentals
SOLID BUSINESS FUNDAMENTALS Delivered robust financial performance underpinned Efficient capital by strong business 01 02 allocation delivered fundamentals shareholder returns Resilient integrated business model in action Operating model in the adverse trading 03 04 agility enabling return condition
Slide 7: Robust Financial Performance
ROBUST FINANCIAL PERFORMANCE ROIC of 16.0% above WACC of 12.8% 50 cents +19.0% +7.5% 15% R958m maiden Revenue EBITDA Operating Cash & cash dividend growth growth margin equivalents 28.5% per share ROE ZEDA Interim Results FY2024 7
Slide 8: Leasing Performance: Exceptional Performance
LEASING PERFORMANCE: EXCEPTIONAL PERFORMANCE Key messages: • Exceptional performance by the leasing business underpinned by: - Heavy commercial units up 51% +17% +19% 59% - Strong performance by Greater Fleet Africa, up 29% in revenue - Corporate segment up 17% in revenue increase in increase in EBI
Slide 9: Rental Business: Solid Topline Growth
RENTAL BUSINESS: SOLID TOPLINE GROWTH Key messages: • Challenging profitability performance in the short-term rental business • Positive performance impacted by: - Solid performance in Local segment up 38.9% - Ongoing recovery of the Inbound segment up +19.6% R1.0bn 26.0% 40.3% Budget - Supported by
Slide 10: Positive ESG Impact
POSITIVE ESG IMPACT Reduce environmental impact Demonstrate positive social impact Environment Social Zero fatality maintained 22% reduction in municipality water 0.25 Lost Time Injury Frequency Rate (LTIFR) 48% increase in liquid waste recycling ~50k potholes repaired through our partnership with 4
Slide 11: Financial Overview
Financial Overview ZEDA Interim Results FY2024 11
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS Financial Shareholder Financial Performance Returns Position • Revenue up 19% • ROIC: 16% • Net debt to EBITDA improved to 1.5x • EBITDA Margin 34% • ROE: 28.5% • Equity improved to 34% of Capital • Operating profit before capital • NAV per share up 34% to Structure items up R4m
Slide 13: Exceptional Performance
EXCEPTIONAL PERFORMANCE Revenue (Rm) Rental Operations EBITDA (Rm) Operating Profit/(Loss) (Rm) Average Fleet Leasing Operations EBITDA Margin Operating Margin 27 25 24 20 17 17 27% 27% 25% 38% 38% 34% 12% 9% 9% 17% 18% 15% 39 38 26 24 28 32 +19.0% +7.5% -1.5% 5 270 5 026 4 910 803 1 144 4 430 1 796
Slide 14: Revenue Growth Across All Categories
REVENUE GROWTH ACROSS ALL CATEGORIES Revenue (Rm) 71 5,270 +19% 255 5,026 6 000 Insurance, Commissions & Other 4,430 Leasing +15% 1 185 5 000 Rental 61 49 3,705 1 035 Car sales +22% 968 4 000 938 1 887 3 000 1 611 +7% 1 765 1 181 2 000 2 127 2 126 +28% 1 636 1 000 1 537 - H1 2019 H1 2022 H1 2023 H1
Slide 15: Net Finance Costs
NET FINANCE COSTS* (Rm/%) Effective interest rate (%)* Net finance costs Net finance costs have Interest cover (times) increased driven by elevated prime interest 350 11.10 12.00 rates and average debt 300 9.10 9.00 10.00 Effective interest rates (excl. IFRS 16) up 23% compared to H1 2023 250 8.00 6
Slide 16: Tax Charge Reconciliation – March 2024
TAX CHARGE RECONCILIATION – MARCH 2024 2024 2023 28.9% 0.5% 28.4% 1.4% 0.4% 0.9% 27.0% 0.1% 27.0% 2024 Statutory Non-deductible Withholding 2024 Effective tax 2023 Statutory Net PY tax Non-deductible Withholding 2023 Effective tax rate expenses tax rate rate underprovisions expenses tax rate Withhol
Slide 17: Earnings per Share
EARNINGS PER SHARE Basic Earnings per share (BEPS) Headline Earnings per share (HEPS) (cents) (cents) 189.1 -12.5% 182.3 250 200 -15.8% Earnings impacted by 165.5 constrained economy 196.5 180 200 160 165.4 Non-operating and capital item 154.8 140 relates to sale of property in 2023 150 120 Earnings
Slide 18: Robust Returns
ROBUST RETURNS Return on Invested Capital vs WACC Return on Equity (%) (%) 40.0 18.0 16.0 35.0 ROIC achieved 16.0 above the WACC 28.5 28.3 12.8 12.8 12.7 14.0 30.0 12.3 Capital deployment strategy 22.4 12.0 25.0 returned a ROIC above WACC 9.8 10.0 ROIC improved from March 2023 20.0 to March 2024 by
Slide 19: Operating Assets Supporting the Business
OPERATING ASSETS SUPPORTING THE BUSINESS Classes of assets (R’m) 2023 2023 2024 September March March 22.6% of Short-Term Fleet PPE (excl vehicles) 106 108 117 on Operating lease Fleet Assets - Rental 4 987 5 021 4 304 Fleet Assets - Leasing 4 100 3 648 4 323 Zeda increased the use of Other Assets 9
Slide 20: Financial Leverage Levels Maintained
FINANCIAL LEVERAGE LEVELS MAINTAINED Debt ratios (Rm/times) Net debt 10 00 0 3.0 Net Debt to 9 000 Net debt to EBITDA EBITDA 8 000 2.5 2.5 at 1.5x 8 627 Fleet carrying 7 000 2.2 value 2.0 6 000 Net debt at R5.2bn 1.6 5 000 1.5 1.5 8 669 Company leverage at 60% 7 010 4 000 6 079 5 581 1.0 5 188 5 074
Slide 21: Capital Structure
CAPITAL STRUCTURE Capital Structure at 31 March 2024* (Rm/times) Net Debt Short Term To Equity Long Term R1.1bn Gross Debt: Equity build-up since Equity 6,146 34% Equity unbundling Equity 29% Net Debt Equity Improved to 34% 2 797 of capital structure 2 723 Net Debt levels well maintained Net Net 5 1
Slide 22: Net Debt and Cash Flow Analysis
Opening net debt at 1 Oct 4 826 2023 Cash before working capital 1 907 ZEDA Interim Results FY2024 Net Investement in fleet 3 037 Decrease in working capital 1 254 and tax Net interest *Excluding IFRS 16 liabilities paid and forex 348 Outflow from Investing 12 activites Increase in finance lease rec
Slide 23: Funding Facilities – March 2024
FUNDING FACILITIES – MARCH 2024 (Rm) 2.672 8.818 Headroom R2.7b 6.146 All Financial Covenants met Balanced funding mix Diversifying debt maturity profile Solidify relationships with lenders Total Facilities Utilization Headroom ZEDA Interim Results FY2024 23
Slide 24: Funding Diversification
FUNDING DIVERSIFICATION Domestic Medium-Term Note Sustainability Finance Programme (DMTN) Fundraising Framework Issuer entity To respond to established: 1 Zeda Use of our ESG Programme Financing Proceeds Strategy & Size: Limited 2 efforts R5 billion Sustainability- Avis has the Linked largest fleet
Slide 25: Strategy Update & Outlook
Strategy Update & Outlook ZEDA Interim Results FY2024 25
Slide 26: Ongoing Discipline in Strategy Execution
ONGOING DISCIPLINE IN STRATEGY EXECUTION GROWTH PILLARS INNOVATION CUSTOMER CENTRICITY Long haul Increase Expansion of Increased Enhance Enhance and last mile: Greater subscription Retail Used customer self- employee Rental of Africa Car Market service value trucks and contribution channels proposit
Slide 27: Delivered on Promises
DELIVERED ON PROMISES Double digit growth across our Solid margins despite adverse segments used car market conditions Group revenue up 19% Group EBITDA margin at 34% Leasing segment revenue up 17% Group Ops margin at 15% Maintain Manage Rental segment revenue up 19.6% growth margins trajectory Mana
Slide 28: H2 Focus Areas – Managing Business During Downturn Cycle
H2 FOCUS AREAS – MANAGING BUSINESS DURING DOWNTURN CYCLE Growth Maintain topline growth trajectory supported by long-haul (Heavy Commercial and Van Rental), subscription, strong order book in the long-term leasing business and used car stock. Greater Africa - growth trajectory expected to continue a
Slide 29: Thank You Q&A
ve ZEDA Connecting humanity THANK YOU Q&A