Metair Investments Limited · JSE:MTA
Metair Investments — Investor Day (May 2025)
60 slides from Metair Investments's investor day presentation, May 12, 2025
Slide 1: Welcome to the Metair Investors Day 2025
WELCOME to the Metair Investors Day 2025 HOUSE KEEPING RULES Please follow the signs for the Ladies & Gents Restrooms In case of an emergency, Emergency Assembly Point 11 is located next to this sign Kindly silence all mobile phones during the presentations 1
Slide 2: Aftermarket Parts & Retail Investor Presentation
AFTERMARKET PARTS & RETAIL INVESTOR PRESENTATION 12 May 2025
Slide 3: Agenda
AGENDA 1 WELCOME & OVERVIEW – Paul O'Flaherty CEO 2 AFTERMARKET PARTS & RETAIL – VISION & STRATEGY 3 FIRST BATTERY 4 AUTOZONE Include image? 5 FLEET & WORKSHOP MOBILITY SOLUTIONS 6 Q&A ‹#› 3
Slide 4: Overview
INVESTMENTS LIMITED SR 4 lh Ig J Jattomotive rindustriat tetail — sMETAIR OVE Paul
Slide 5: Disclaimer
DISCLAIMER During the site visit, we may share forward-looking statements that relate to Metair’s future operations and performance. Such statements are not intended to be interpreted as guarantees of future performance, achievements, financial or other results. The statements rely on assumptions an
Slide 6: To Recap
TO RECAP The 2024 financial year was used for stabilising and resetting Metair’s foundations Mutlu exit • Significantly derisked balance sheet and reduced interest charge Debt reduced and restructured • From almost R6bn in mid-2024 to R4.5bn by year-end • Capital restructuring plan implemented to re
Slide 7: This Is a Different Metair
THIS IS A DIFFERENT METAIR Strengthened management team and new De-risked against volatility and OEM exposure culture • Mutlu sold (accounted for ~70% of Metair’s • Clarity of accountability, common values interest cost and 23% of net debt) • Increased efficiency • AutoZone acquired to develop After
Slide 8: The New Metair at a Glance
THE NEW METAIR AT A GLANCE OUR BUSINESSES Revenue by country Revenue by segment (continuing operations)* (continuing operations)* AUTOMOTIVE AFTERMARKET, RETAIL AND COMPONENT DISTRIBUTION OF PRODUCTS MANUFACTURING 6 companies (SELLS DIRECTLY TO OEMs) Products include: 6 companies • brake pads • air-
Slide 9: AutoZone Acquisition
AUTOZONE ACQUISITION Integral to the new growth strategy THE AFTERMARKET OPPORTUNITY • Acquired on 13 December 2024 › Acquisition price: R278.5 million There are over 13 million registered vehicles › Net Asset Value: R473 million in South Africa* › FY2024 Revenue: R1.8 billion (From 1 January 2024 …
Slide 10: Group Organogram
GROUP ORGANOGRAM AUTOMOTIVE COMPONENT MANUFACTURING AFTERMARKET PARTS AND SERVICES 75% 100% 100% 100% 100% 100% 100% 100% 49% 25% 75% 100% 25% 99% ‹#› 10
Slide 11: Aftermarket Parts and Services
AFTERMARKET PARTS AND SERVICES AUTOZONE Products FIRST BATTERY Products Revenue split by (acquired Dec 2024) Wholesale and retail distributor of OWNERSHIP Automotive batteries, solar product area OWNERSHIP automotive replacement components systems, back-up systems, 15 Location 100% standby systems,
Slide 12: Outlook
OUTLOOK Significant progress to stabilise and reset our businesses on a growth path • Cost reductions and increased efficiencies › Turnaround at Hesto and closure of non-core operations on track • Focus on free cash flow generation and EBITDA protection › Further rightsizing to manage volume risk an
Slide 13: Outlook (continued)
OUTLOOK (continued) Repositioning the group has set Metair on a sustainable growth path Our vision: Generating value for our stakeholders by contributing to a sustainable future of mobility in Africa Growth AUTOMOTIVE COMPONENT MANUFACTURING AFTERMARKET PARTS AND SERVICES initiatives (PRIMARY SEGMEN
Slide 14: Aftermarket Parts & Retail
1 2 AFTERMARKET PARTS & RETAIL Paul O’Flaherty Vision & Strategy
Slide 15: Aftermarket Parts & Retail vision and strategy
AFTERMARKET PARTS & RETAIL Our vision: To be the one of the largest integrated aftermarket parts and retail solution providers in Africa Strategy: 1. Diversified offering to meet the mobility needs of vehicle owners across the aftermarket value chain I. High quality product offering II. Professional
Slide 16: Key Growth & Optimisation Levers
KEY GROWTH & OPTIMISATION LEVERS • Increase our relevance to D Leveraging group synergies to reduce cost and improve trading vehicle owners through expanding our offering • Create better solutions for the vehicle owners C Geographical expansion maintenance and mobility needs through integrated solut
Slide 17: Our Market
OUR MARKET • SA car parc 13 m • Total Africa car parc 86m • Focus on developing priorities and route to market strategies 17
Slide 18: First Battery
3 1 FIRST BATTERY Russell Bezuidenhout
Slide 19: Investors Presentation
“INVESTORS . PRESENTATION. |
Slide 20: Business Structure
BUSINESS STRUCTURE • Manufacturing operation based in Nairobi, • Automotive battery trading operation based Kenya (Eastern Corridor of Africa). in the United Kingdom. • East African market presence. • Local UK car parc = 38 998 000 • Current sales volumes = ACT24: 66 982 • Sales growth strategy. 20
Slide 21: Brief History of First Battery
BRIEF HISTORY OF FIRST BATTERY 1931 1990 1999 2010 2015 2023 FNB MERGE WITH SMELTER BECOMES ACQUIRE COMMISSION AGM CHANGED NAME CHANGE TO ESTABLISHED CHLORIDE OPERATIONAL PLASTICS PLANT MANUFACTURING LOGO FIRST BATTERY MERGE WITH RAYLITE – WHOLLY OWNED COMMISSION DEDICATED COMMENCE INDUSTRIAL PLANT
Slide 22: Customer Centric Values Model
CUSTOMER CENTRIC VALUES MODEL We believe in … C H A R G E D Collaboration Honesty Adaptability Recognition Gratitude Excellence Driven “Win Together” “Do the right “Find a “Empower “Find pride & “Be the best!” “Ready for any thing!” solution” others” joy everyday!” challenge!” Teamwork Quality Trust
Slide 23: Meet Our Team
MEET OUR TEAM DAKSHA PARBHOO SHANE PETERSEN ANDREW WEBB Financial Director Marketing & Sales Director OEM & Export Sales Director 6 years service 1 year service 31 years service RUSSELL BEZUIDENHOUT CHARLES VAN ASWEGEN FANWELL MAKADZANGE CAIN MAHLANU Chief Executive Officer Manufacturing Director Te
Slide 24: First Battery Production Facilities
FIRST BATTERY PRODUCTION FACILITIES SETTLER'S WAY BUFFALO VIEW ROAD BENONI Automotive Battery Manufacturing Lead Smelter, Marketing, Warehousing Formation & Moulding Plant Plant & Distribution 24
Slide 25: Market Segments
MARKET SEGMENTS AUTOMOTIVE OEM AFTER-MARKET EXPORT (16%) (63%) (21%) Independent First Battery After-Market Dynamic Batteries Centres 25
Slide 26: Automotive Original Equipment
AUTOMOTIVE ORIGINAL EQUIPMENT
Slide 27: Automotive Original Equipment
AUTOMOTIVE ORIGINAL EQUIPMENT 27
Slide 28: Automotive Aftermarket
AUTOMOTIVE AFTERMARKET
Slide 29: Automotive Aftermarket
AUTOMOTIVE AFTERMARKET METAIR FIRST et @ Hi-@ CENTRE nig. @ Kigikeaia >. geTRYSOME @4&” ™™ 29
Slide 30: Automotive Franchise
AUTOMOTIVE « FRANCHISE
Slide 31: Automotive Franchise
AUTOMOTIVE FRANCHISE Independently owned Complete range of starter, motorcycle and leisure batteries Smart Test Battery Analyser 150 locations in Southern Africa Toll Free: 0800 112 600 www.firstbatterycentre.co.za 31
Slide 32: Automotive Exports
AUTOMOTIVE - ae . we = E. g. £ Ss Dees & 3 y 4
Slide 33: Automotive Export
AUTOMOTIVE EXPORT METAI 33
Slide 34: Automotive Technologies & Products
AUTOMOTIVE TECHNOLOGIES & PRODUCTS SILVER CALCIUM EXTRA HEAVY DUTY ENHANCED FLOODED VALVE REGULATED LEAD TRUCK RANGE BATTERY ACID (VRLA) Minimal water loss Extremely vibration resistant Suitable for micro hybrids Spill proof Factory sealed Minimal water loss Fast change acceptance Su
Slide 35: Financials
FINANCIALS ACTUAL 2023 ACTUAL 2024 TOTAL VOLUME SOLD 1 665 171 1 536 268 FACTORY CAPACITY 1 800 000 1 800 000 FACTORY PRODUCTION (Formation) 1 708 911 1 638 310 EBIT R179m R225m MARGIN 8.5% 10.5% TARGET TOTAL VOLUME SOLD 1 800 000 FACTORY PRODUCTION 1 800 000 MARGIN +/- 8% 35
Slide 36: Responsible Value Growth Strategy
RESPONSIBLE VALUE GROWTH STRATEGY GROW PENETRATION 1 AFTERMARKET EXPORT Grow First Battery Align with Metair Centre footprint African Export strategy 2 INNOVATIVE OFFER OEM AFTERMARKET EXPORT Qualify EFB Selective Blackbox Brand offering per technology displacement of market (First Battery) imports
Slide 37: African Growth Strategy
AFRICAN GROWTH STRATEGY MARKET PRESENCE FIRST BATTERY ABM 1 Stronger in the Southern Stronger in East & Central African region Africa, biggest player in East Africa PRODUCT RANGE & PRICING 2 FIRST BATTERY ABM Similar range as ABM – Similar range as FB – More DIN Types. OEM More JIS Types. MANUFACTUR
Slide 38: Recycling
Recycling 38
Slide 39: Cradle-to-Cradle Principle
CRADLE-TO-CRADLE PRINCIPLE We ensure that for every Lead Acid Battery we supply into the market, one is recycled Cradle-to-Grave Production Technical Production Nutrient Product Resource Disassembly Waste Use Cradle-to-Cradle Takeback Sustainability & the protection of our environmental & natural re
Slide 40: Responsible Recycling Requires Capital Investment
RESPONSIBLE RECYCLING REQUIRES CAPITAL INVESTMENT Smelter investment over the last 5 years: R21.2m Plant Equipment: • Blending Kettles • Battery Breaker Replacement Parts • Rotary Furnaces R14.3m Efficient Abatement Equipment: • New Abatement Equipment • Stack Replacement • Auxiliary Equipment Recyc
Slide 41: Quality Certifications
QUALITY CERTIFICATIONS IATF 16949:2016 Listing for all Manufacturing facilities ISO 9001: 2015 Listing for all Manufacturing facilities ISO 14001: 2015 CERTIFICATIONS Listing for all Manufacturing facilities ISO 50001: 2011 Listing for all Manufacturing facilities ISO 45001: 2018 Listing for all Man
Slide 42: Slide 42
Slide 43: First Battery Safety Briefing
FIRST BATTERY SAFETY BRIEFING All visitors are required to wear the The Smelter is a lead environment & Local onsite safety precautions/ PPE equipment provided lead regulations must be adhered to. restrictions include: • Correct PPE must be worn • Be aware of ANY moving equipment • Closed footwear •
Slide 44: AutoZone
INVESTMENTS LIMITED SR 4 lh Ig J Jattomotive rindustriat tetail — sMETAIR 4 AUTOZONE | yD eo BS 8
Slide 45: 53 Years of Automotive Experience in Southern Africa
53 YEARS OF AUTOMOTIVE EXPERIENCE IN SOUTHERN AFRICA Turnover circa R2 billion Operate primarily in the Republic of South Africa, but also have a presence in Namibia, Swaziland and Botswana A wholesale and retail business consisting of more than 200 stores with ~1400 employees: – 169 are wholly-owne
Slide 46: Timeline
TIMELINE 1988+ National Bolts te, a subsidiary of 31 Corporation, purchased Feéerat- Mogus Sout African operations, IrcudingFemo and Huck ‘ownership passed frm FI Corporation to WEA, Investments including the following companies: speed Aut (Worcester and Carletonie) {VaR Group | Autorite | Parts Cen
Slide 47: Recovery Targets
RECOVERY TARGETS 2025 2026 & 2027 Forward • Stabilisation period • Recovery period • Leverage our unique • Recover to R2bn • Return to R2.4bn positioning to deliver • Return to profitability • Deliver returns in line sustainable growth with major peers with class leading returns 47
Slide 48: AutoZone's Unique Positioning
AUTOZONE’S UNIQUE POSITIONING • Creates opportunity for efficiency Scale and industry leading returns • Ease of doing business for suppliers Independent / Franchise • Nation wide customer solutions for Corporate national / larger customers Owned / Co-ordinated +/- 30 NAPA Members such as • Some comp
Slide 49: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM • 160 years experience in 32 y: 7 in Auto/Retail 32 y: 10 in Auto/Retail 35 y: 35 in Auto/Retail 36 y: 36 in Auto/Retail 36 y: 33 in Auto/Retail 36 y: 29 in Auto/Retail 18 y: 10 in Auto/Retail Auto/Retail • A diverse set of backgrounds, experience and skill sets 49
Slide 50: AutoZone Operating Model
AUTOZONE OPERATING MODEL Central Control & Coordination Category Lead Merchandising & Marketing Central Support Omni Channel Call Centre Shifting our sales processes & customer experience through digital initiatives Sufficiently Independent Informal Mechanics Independent Spare Shops Entrepreneurial
Slide 51: Clear Focus on Automotive
CLEAR FOCUS ON AUTOMOTIVE 79 Automotive Categories 11500 sku’s 51
Slide 52: Strategic Approach to Sourcing
STRATEGIC APPROACH TO SOURCING Key Suppliers A Partnership Approach to House Brands (28%) a Multi Brand Offering Joint Business Category plans Strategies Good Better Best 52
Slide 53: Our Infrastructure & Capability
OUR INFRASTRUCTURE & CAPABILITY Real estate of c.115,000m² across 177 leased sites, including Johannesburg based Central Distribution Centre of c.15,000m² and Head Office of c.3,000m² Last mile fleet of 278 owned vehicles c.11,500 part numbers in assortment that is stocked Real-time company wide ERP
Slide 54: Regionalised Hub & Spoke Supply Chain
REGIONALISED HUB & SPOKE SUPPLY CHAIN Customer service QSV Polokwane Strong relationships with countrywide network of couriers enabling next day delivery to c.80% QSV Pretoria and within 48 hours to the remaining c.20% of QSV Nelspruit stores CDC & QSV Johannesburg Own fleet enables responsive last
Slide 55: Retail Stores
RETAIL STORES • 169 locations nationwide • 7 Key store demographics • CBD • City Emerging • Metro auto retail (hubs) • Metro CBD • Metro Emerging • Rural • Town • Our customer base • Informal Mechanic • Formal workshops • Fitment centres • DIY & car enthusiasts • 75% cash and 25% Debtor base • Retai
Slide 56: QSV Wholesale
QSV WHOLESALE • 8 Wholesale branches • Pretoria • JHB • Nelspruit • Bloemfontein • Cape Town • Polokwane • Durban • Port Elizabeth • Tele sales and outbound Reps with delivery to customers • Our customer base • Independent Spare shops • AutoZone members stores • 85% Credit sales • Approx 35% contrib
Slide 57: Fleet & Workshop Mobility Solutions
5 1 FLEET & WORKSHOP MOBILITY SOLUTIONS Dion de Graaff
Slide 58: Passenger and Light Commercial Vehicle Aftermarket Value Chain
Passenger and Light Commercial Vehicle Aftermarket Value Chain Local Branded Import Branded Licensed Manufacturer Manufacturer Distributor Direct Import R100 Disruptive Future State 1 25% - 40% R125 – R140 Consolidator Consolidated Distributor Disintermediate 2 Wholesale Distributor Own Needs Direct
Slide 59: MOVE Workshops
MOVE WORKSHOPS • Move is a buying group • It connects independent workshops with AM & OE suppliers MOVE • Delivers Invoice • Invoicing Invoice • Orders • Payments Supplier Payment MEMBER • Simplifies admin processes • Offers payment terms & competitive pricing • Over 200 workshop members & over 200
Slide 60: Metair Mobility Solutions
Metair Mobility Solutions AiniGe MOrColoe Solaion Digital Customer Facing Touch Points (Apps) Vehicle/Fleet owner schedules for vehicle repair Online customers checks out on the or service on mobile in their MobilityApp or AutoZone Online store selecting the Online. lick to Fit option essionali bers