Remgro Limited · JSE:REM
Remgro — Investor Day (April 2025)
37 slides from Remgro's investor day presentation, April 2025
Slide 1: CIVH and Maziv: Setting the scene
CIVH and Maziv Setting the scene • Pieter Uys • Dietlof Mare • Phila Dube • Byron Billett
Slide 2: CIVH group overview
CIVH group overview 57% 37% 6% *1 *1 100% 100% 100% 100% 75% LoanCo 49.96% 50.04% Note: *1: CIVH currently owns 100% of Maziv. If the Vodacom transaction proceeds, they will own 30 – 40% of Maziv, and CIVH will be diluted to between 60 %and 70% 2
Slide 3: Making headway with Vodacom
Making headway with Vodacom What does this mean from a What if potential deal not Current status potential deal perspective? approved? Reasons released by Competition Agreeing revised terms with Vodacom ▪ Business continues with strategy Tribunal ▪ Under the scenario where a outlined in today’s pres
Slide 4: What about Herotel?
What about Herotel? Current status Next steps Acquisition of control of Herotel ▪ Vumatel already owns a non-controlling stake in ▪ Merger filed during May 2022 Herotel (49.96%) ▪ Competition Commission recommended to ▪ The remaining shares held by Herotel SPV (49.93%) Competition Tribunal on 7 Marc
Slide 5: Unpacking the group
Unpacking the group FTTT and FTTB FTTB and Fibre Backhaul FTTH FTTH Open Access Wholesale Uncapped Fibre Core, Reach and Key Diversifying through investments 5
Slide 6: Maziv fibre network
Maziv fibre network Fibre to the Telco Fibre to the Business Fibre to the Home (“FTTT”) (“FTTB”) (“FTTH”) Fibre Ducts Fibre and ducts in business districts Fibre and ducts in residential areas Active Layer 2 GPON (Active Ethernet and GPON) (Passive Optical Network PRODUCTS PRODUCTS Dark Fibre FTTB F
Slide 7: Maziv fibre network (continued)
Maziv fibre network (continued) FibreLayer to the1Telco Fibre toLayer the Business 2 Fibre to the Home GPON (“FTTT”) (“FTTB”) (“FTTH”) B A A DUDC GPON network 7
Slide 8: Diversified revenue and return streams
Diversified revenue and return streams FTTT FTTB FTTH MN O S / F W A TO W ERS / C ARR IERS B U S INES S E S /EN TERP RIS E S /S MM E HO MES / C ON SUME R Build-out Capital Expenditure Build-out Capital Expenditure • Build cost per meter • R350 per meter average • R300 per meter average • Execution o
Slide 9: Diversified revenue and return streams
Diversified revenue and return streams FTTT FTTB FTTH MN O S / F W A TO W ERS / C ARR IERS B U S INES S E S /EN TERP RIS E S /S MM E HO MES / C ON SUME R Build-out Capital Expenditure • Build cost per meter • Build cost per meter • R300 per meter average • Execution on customer order • Execution on
Slide 10: Diversified revenue and return streams
Diversified revenue and return streams FTTT FTTB FTTH MN O S / F W A TO W ERS / C ARR IERS B U S INES S E S /EN TERP RIS E S /S MM E HO MES / C ON SUME R Build-out Capital Expenditure • Build cost per meter • Build cost per meter • Cost per home passed • Execution on customer order • Execution on cu
Slide 11: Expanding return on investment profile
Expanding return on investment profile Unpacking the Commercial Drivers of fibre Illustrative FTTH example Assumptions Expansion Capex Distance between homes (Frontage) (m) 15 A Average cost per meter to build R300 B (Number of Homes Passed) (Number of Homes Passed) Average cost per home passed R4,5
Slide 12: Unpacking Maziv's investment thesis
Unpacking Maziv’s investment thesis
Slide 13: Favourable growth dynamics for digital connectivity
Favourable growth dynamics for digital connectivity Data demands growing at an accelerating Significant opportunity to enable underserved rate markets Significant growth in the volume of global data consumed… Fixed broadband subscriptions per 100 inhabitants, by region, 2024 (Zettabytes) 394 CAGR: 2
Slide 14: Future proof connectivity solution
Future proof connectivity solution Demand drivers Fixed fibre has significant advantages over wireless • Fibre is meeting the need for high-quality connectivity – Performance efficient, reliable and low latency Despite maximum theoretical speeds of >100 Mbps, mobile • Has both a technological and co
Slide 15: Looking at the big picture
Looking at the big picture Market Enterprise – FTTT ▪ Huge demand for data continues to increase, ▪ All towers in metro largely connected underpinned and amplified by numerous new use cases ▪ Long term contract with limited churn ▪ Digital divide in South Africa remains a challenge to be ▪ Opportuni
Slide 16: Deeply experienced management team
Deeply experienced management team Maziv is led by an experienced management team, each with deep Dietlof Mare Byron Billett Phila Dube sector expertise of Chief Executive Officer Chief Financial Officer Chief Commercial Officer Telecoms and Fibre Experience SI and Fibre Experience Telecoms and Fibr
Slide 17: Modernised network positioned for growth
Modernised network positioned for growth Modern dry underground distribution Future-proofing the business through innovative cabinet investments Maziv has invested in transforming its connection Vumacam poles suited for conversion into base nodes to enable efficient and error-free activation on stat
Slide 18: Large and growing untapped market opportunity for each business line
Large and growing untapped market opportunity for each business line FTTT FTTB FTTH MN O S / F W A TO W ERS / C ARR IERS BU SINESSE S/EN TERPRISE S/SMM E HO MES / C ON SUME R 47k sites 572k 11m (mainly macro) Businesses (Excl. Micro) Formal urban homes Fibred: 30.3k (100%) 30k connected Large: 16k (
Slide 19: FTTT and FTTB landscape
FTTT and FTTB landscape FY24 SA FTTT Market share FY24 SA FTTB Market share DFA 35% Openserve 25% Openserve 25% DFA 23% Vodacom 9% Link Africa 11% BBI 6% MTN 3% MFN 10% Link Africa 2% Liquid 8% MFN 2% Vodacom 5% Liquid 2% ROM ROM 18% 17% 0% 5% 10% 15% 20% 25% 30% 35% 40% 0% 5% 10% 15% 20% 25% 30% So
Slide 20: FTTH Landscape – Homes Passed and Connected
FTTH Landscape – Homes Passed and Connected Dec 24: 6.41m Homes Passed and 2.57m Homes Connected 5.4m unique Homes Passed Total FTTH Homes Passed Total FTTH Homes Connected (thousands, and market share % Dec 2024) (thousands, and market share % Dec 2024) V Vumatel 2,050 Vumatel 830 m… u 32.3% 32.0%
Slide 21: FTTH Landscape
FTTH Landscape FNO FTTH Connected Homes with Active Service Ratio (% homes passed) 60% 40.5% 43.8% 41.6% 50% 36.6% 32.5% 32.4% 40% 30% 20% 10% 0% Jun 24 Jun 24 Jun 23 Jun 24 Jun 23 Jun 23 Jun 24 Jun 23 Jun 24 Jun 23 Jun 23 Jun 24 Dec 22 Dec 23 Dec 22 Dec 23 Dec 22 Dec 22 Dec 24 Dec 24 Dec 24 Dec 23
Slide 22: Scaled infrastructure platform
Scaled infrastructure platform FTTT FTTB FTTH C A R R I ER | GL O B A L E N T E R PR I S E S | P U B L I C S E C T O R MAS S MARKET Customers | Channels ▪ MNO | FNO | OTT | TOWERCO | ISP ▪ Corporates | Businesses ▪ Residential | Small Businesses ▪ Own network build ▪ SOE | Municipalities | Metros ▪
Slide 23: Social Impact | Empowering Communities
Social Impact | Empowering Communities 23
Slide 24: Slide 24
Slide 25: Key takeaways on Maziv's strategy
Key takeaways on Maziv’s strategy Unmatched Customer Experience Market Share • Enhance Client Focus and adopt a customer led • Grow market share through continued roll out of strategy networks throughout South Africa • Customer ease of use and automated services Revenue Robust, High-Capacity Network
Slide 26: Overall Business Metrics
a : ~_. Overall Business y ¥ e . Metrics a ae a , ~sat * all X -
Slide 27: Maziv | Overview FY25
Maziv | Overview FY25 Revenue EBITDA 70k Links R6.7b R4.6b Margin 69% 860k Subs Capital Invested Free Cash Flow • After Interest 70k Links • Before Capex R30.6b R2.1b 2M Homes Conversion 44% R 4.1bn of FCF generated before interest and Capex 27
Slide 28: Maziv: Operating drivers
Maziv : Operating drivers Homes passed and penetration (‘000) 39% 36% 42% 35% 34% 33% 28% 1,877 2,004 2,039 1,451 737 1,003 501 2019 2020 2021 2022 2023 2024 2025 Subscribers and % growth +18% +17% +27% +27% +48% +85% 862,405 623,976 730,259 386,665 490,299 140,746 260,620 2019 2020 2021 2022 2023 2
Slide 29: Maziv: Penetration (uptake) rates
Maziv : Penetration (uptake) rates Uptake (active subscribers / homes passed) 66% Penetration rates above 60% are achievable 57% % Uptake 50% 47% 39% 35% 31% 29% 12 24 36 48 60 72 84 Over 84 Months 29
Slide 30: Maziv: Capex profile
Maziv : Capex profile Capex Rm Other Significant Capex investment Capex Spend linked to driving Vumatel 4 944 4 617 from 2021 to 2023 to penetration; link growth; DFA 614 298 Expand Network future proofing network for 3 611 3 569 3 737 growth 106 99 2,332 761 2 511 3,319 72 2,728 2 033 1,425 2,576 1
Slide 31: Maziv: Revenue build up and growth (aggregated)
Maziv : Revenue build up and growth (aggregated) Revenue Rm 8 293 7 757 7 732 Other Vumatel 748 314 570 Britelink DFA 6 353 946 1,436 904 311 5 253 731 4 611 253 4 032 355 3,838 281 3,349 3,543 141 523 2,860 929 2,277 1,524 835 2,283 2,368 2,451 2,658 2,715 2,761 2,127 2019 2020 2021 2022 2023 2024
Slide 32: Maziv: EBITDA build up and evolution (aggregated)
Maziv : EBITDA build up and evolution (aggregated) EBITDA Rm 4 600 4 670 4 388 Other Vumatel 202 44 63 146 3 792 41 96 Britelink DFA 117 3 002 2,397 2 707 2,446 2,708 17 78 2,050 1 999 1,532 28 83 1,082 519 1,693 1,957 1,805 1,753 1,369 1,530 1,510 -5 -35 -68 2019 2020 2021 2022 2023 2024 2025 EBITD
Slide 33: Maziv: Free cash flow (after interest, before capex)
Maziv : Free cash flow (after interest, before capex) FCF before capex (Rm) Improved FCF generation Other Vumatel DFA Reduced Interest costs Improved WC management 1 985 2 047 2 062 1 891 188 85 1 494 1 368 1,082 90 1,340 865 905 7 550 830 24 1,271 815 988 985 941 969 716 -9 -44 -71 -20 2019 2020 20
Slide 34: Maziv: Net debt (external, group)
Maziv : Net debt (external, group) Net Debt / (Cash) (Rm) 17,212 17,144 16,318 14,770 13,104 11,698 8,744 2019 2020 2021 2022 2023 2024 2025 Cash Leverage ratio (Net debt / EBITDA) and Interest Cover 6 5.0x 4.9x 5 4.5x 4.2x 3.7x 3.9x Leverage and 4 3.0x 3.1x Interest Cover 3 2.4x 2.3x 2.4x Improving
Slide 35: Final thoughts
| 5 Final thoughts
Slide 36: Key highlights from today's presentation
Key highlights from today’s presentation Technological superiority of fibre to handle existing and exponential data demand Scaled infrastructure platform and diverse revenue streams derived from multiple layers of network Highly favourable growth dynamics across all key offerings Well positioned to
Slide 37: Q&A
Q&A