Enx Group Limited · JSE:ENX
Enx — Investor Day (June 2017)
15 slides from Enx's investor day presentation, Jun 13, 2017
Slide 1: enX Group Limited Capital Markets Day
enX GROUP LIMITED CAPITAL MARKETS DAY 13 JUNE 2017 1
Slide 2: 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 included in this presentation, including, without limitation, those regarding the financial position, business s
Slide 3: Our Quality Industrial Businesses
OUR QUALITY INDUSTRIAL BUSINESSES A track record of acquiring quality industrial assets that have strong market positions, are custodians of leading global brands with committed customer partnerships. We instil entrepreneurial management to drive returns through disciplined allocation of capital EQU
Slide 4: Experienced, Entrepreneurial, Owners
EXPERIENCED, ENTREPRENEURIAL, OWNERS Executive Management Paul Jannie Irwin Gary Jacqui Brent Clint Christian Name Mansour Serfontein Lipworth Neubert Carr Hean Nickall Neuberger Executive Group Financial Power, Position Deputy EIE EFML Chemicals Lubricants CEO Director Wood Chairman Years in respec
Slide 5: Why We Are Different
WHY WE ARE DIFFERENT EQUIPMENT FLEET PETROCHEMICALS #1 #2 #1 Materials Handling Equipment Full Service ExxonMobil Petrochemicals Distributor in SSA Fleet Management and Logistics distributor. Largest Independent Producer of Oil Lubricants Extension Long term Brand custodians of global business relat
Slide 6: Revisiting Core Strategic Questions
REVISITING CORE STRATEGIC QUESTIONS How does enX manage it’s portfolio of assets? • enX’s philosophy is to decentralise decision making and keep group costs to a minimum. We believe that business decisions are best taken by the management teams closest to customers and operations • The downside to d
Slide 7: Our Six Strategic Priorities
OUR SIX STRATEGIC PRIORITIES Our objective is to build a growing, cash generative industrial business which over time consistently delivers returns on equity in excess of its cost of capital Different with Scale Partnerships with Leading Global Brand Owners Geographic Expansion Entrepreneurial Cultu
Slide 8: Building the JSE's Next Industrial Titan: Our Six Strategic Priorities
BUILDING THE JSE’S NEXT INDUSTRIAL TITAN: OUR SIX STRATEGIC PRIORITIES • Building and investing in elements that clearly and sustainably differentiate us from our competitors Different with Scale • Driving scale into our businesses to achieve efficiencies, enhance margins, reduce unit costs and rema
Slide 9: Liquidity and Funding
LIQUIDITY AND FUNDING Overview of interest-bearing borrowings Funding facilities (R’million) Facility size Utilised Unutilised General banking facility EIE and EFML 400 - 400 Other 150 35 115 Liquidity facility EIE and EFML 544 - 544 Term facility EIE and EFML 2 383 2 383 - Other 106 106 - Total ban
Slide 10: Liquidity and Funding
LIQUIDITY AND FUNDING Liquidity and funding Funding outlook Long-term funding principles • Total debt levels to remain stable • Diversify funding sources • Planned refinancing of upcoming • Ample liquidity buffers for trading maturities in line with market and upcoming maturities appetite • Staggere
Slide 11: Credit Strengths: High-Quality Asset-Backed Lending
Credit Strengths: High-Quality Asset-Backed Lending • Removal of Contract Mining • Strong internal controls • Asset-backed receivables o Pricing o Passenger and commercial vehicles leases o Credit vetting o Toyota forklift leases o Collection procedures • Contracted, annuity revenues o Provisioning
Slide 12: Eqstra Investments (CMA): A-Flat Ratings Target
Eqstra Investments (CMA): A-Flat Ratings Target Diversify funding sources Achieve A-flat Current Rating Objective to reduce Constraint Goal rating within (BBB-flat) refinance risk 24 months (*) and minimise pricing As at 28 February 2017 Bank Bank Target Debt Metric Target Current Covenant Covenant
Slide 13: Illustrative Valuation Methodology – Sum of the Parts
ILLUSTRATIVE VALUATION METHODOLOGY – SUM OF THE PARTS BUSINESS METHODOLOGY POTENTIAL PEER GROUP EQUIPMENT South Africa: Invicta, Hudaco, KAP, • PE Multiple • SA Barloworld, Supergroup, Imperial • Price/Book • UK UK: Ashtead Group plc • PE Multiple FLEET Avis, Supergroup Fleet • Price/Book • EV/EBITD
Slide 14: enX Summary Investment Proposition
enX SUMMARY INVESTMENT PROPOSITION Returns in excess of WACC, with Three distinct industrial clusters with further opportunities to widen spread market leading market positions Experienced board and established management Strong partnerships with in place to drive delivery leading global brand owner
Slide 15: Q&A IR Contacts
Q&A IR Contacts Paul Mansour, Dep Exec Chairman paul.mansour@enxgroup.co.za Jannie Serfontein, CEO jserfontein@enxgroup.co.za Frank Ford enx.ir@fticonsulting.com 15