Slide 1: Annual Results for the Year Ended 30 September 2024
ANNUAL RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 2024 ZEDA Annual Results FY2024 1
Slide 2: Agenda
Agenda 1 FY2024 Results 2 Business 3 Financial 4 Outlook Q&A Overview Overview Overview ZEDA Annual Results FY2024 2
Slide 3: Challenging operating environment
Challenging operating environment: 1 Consumer under 2 Weak macro- Tough trading 3 pressure economic environment environment • High interest rates • Stagnant GDP growth in • Used car market • High fuel costs some of our territories continues to be under • Currency deterioration – pressure: aggressive
Slide 4: Navigating portfolio diversification and strategy execution
Navigating through portfolio diversification and strategy execution: Focused on the business Access to Access to Access to Technology & Disposal fundamentals funding vehicles markets Innovation channel • Diversified funding • A diversified mix • Right market • Launched • Through our • -20 basis poin
Slide 5: Group financial highlights
Group financial highlights: Record high revenue, balance sheet and cash Revenue EBITDA Operating Net debt to Cash and cash generation margin margin EBITDA equivalent +14.5% 32% 14% 1.4x R1.2bn increase to EBITDA of Net debt of R10.5bn R3.3bn R4.7bn ZEDA Annual Results FY2024 5
Slide 6: Unlocked value for shareholders
Unlocked value for shareholders: Solid returns for shareholders ROIC > Return on Final dividend Total WACC Equity declared Shareholder Return* 14.3% 23.1% 50c 24.6% greater than Capital structure dividend per share for the financial year 11.8% 67:33 Total annual (FY2023 – 70:30) dividend 100c per sh
Slide 7: ESG impact
ESG impact: Reduce Demonstrate positive Adopt sound environmental social impact governance impact Zero fatalities maintained processes 10x water and energy Sustainability-linked financial smart metres installed 0.22 Lost Time Injury Frequency framework Rate (LTIFR) 19% reduction in Independent fraud
Slide 8: Business Overview
Business Overview ZEDA Annual Results FY2024 2 8
Slide 9: Rental: strong topline performance
Revenue Strong topline Rental: +15.2% performance underpinned by: • Car sales volumes up Strong topline growth increased to 17.3% • Inbound travel segment R7.7bn up 7.4% • VipCo segment up 10% Challenges: EBITDA of EBITDA margin of • Utilisation rate below R1.7bn 22% target • Operating margins impac
Slide 10: Leasing: exceptional performance
Revenue Strong performance +12.7% underpinned by: • Diversity of fleet mix Leasing: increased to • Heavy commercial Exceptional performance units up 30% R2.8bn • Greater Africa revenue up 16% • Operating margin retained at 27% EBITDA EBITDA margin of Challenges: +11.5% 58.3% • Low adoption of iLease
Slide 11: Financial Overview
Financial Overview ZEDA Annual Results FY2024 3 11
Slide 12: Record-high revenue with optimised fleet
Record-high revenue with optimised fleet: Leasing Operations Rental Operations Revenue (Rm) EBITDA (Rm) Operating Profit/(Loss) (Rm) Average Fleet EBITDA Margin Operating Margin 30 27 20 19 18 18 26% 22% 29% 35% 36% 32% 11% 3% 11% 16% 17% 14% 47 43 35 32 36 39 +14.5% +0.8% -5.6% 2 803 10 468 10 161
Slide 13: Revenue growth across all categories
Revenue growth across all categories 173 10 468 +14.5% 544 10 161 12 000 Revenue (Rm) 9 145 Insurance, Commissions +10.2% 8 133 10 000 & Other 157 2 435 Leasing +12.3% 2 126 100 Rental 2 168 8 000 1 852 Car sales 3 521 3 006 6 000 +4.6% 3 367 2 642 4 000 4 486 4 339 +25.7% 3 539 3 453 2 000 - 2019 2
Slide 14: Net finance costs
Net finance costs* (Rm/%) The effective interest Effective interest rate (%)* rate has decreased, Net finance costs driven by management 20 bps efforts to reduce cost of funding 11.4% 700 11.2% 12.0% Effective interest rates 600 10.0% (excl. IFRS 16) down by 500 7.5% 20bps compared to FY23 8.0% 400
Slide 15: Tax charge reconciliation
TAX charge reconciliation 2024 2023 + 0.7% - 0.3% - 1.7% - 7.4% + 0.8% + 1.0% + 0.4% - 0.3% 27.0% 21.0% 27.0% 26.2% 2024 Statutory Net PY tax over Withholding tax Non-taxable Rate change Joint venture 2024 Effective 2023 Statutory Net PY tax over Non-deductible Withholding tax 2023 Effective rate pr
Slide 16: Earnings per share
Earnings per share Basic Earnings per share (BEPS) Headline Earnings per share (HEPS) Earnings impacted (cents) (cents) by constrained -18.1% 450 -17.3% 450 economy 381 387 400 400 Effective tax rate 5.2% higher in 2024 325 350 350 320 312 296 300 300 2023 rebased headline earnings to 26.2% effectiv
Slide 17: Solid returns
Solid returns Return on Invested Capital vs WACC Return on Equity ROIC achieved (%) (%) ROIC above the WACC 40.0 36.7 20.0 18.7 WACC Seismic shift on 32.7 35.0 18.0 investment profile to longer-term assets 14.3 16.0 30.0 12.8 14.0 Returns are earned over 11.9 12.3 23.1 11.8 25.0 a longer period 12.0
Slide 18: Operating assets supporting the business
Operating assets supporting the business Classes of assets (Rm) 2024 2023 September September PPE (excl vehicles) 46 106 23% of Short-Term Fleet on Fleet Assets – Leasing 4 645 4 100 Operating lease in RSA Fleet Assets – Rental 3 860 4 987 Zeda increased the use of operating leases Other Assets 1 13
Slide 19: Strong cash generation
Strong Cash Generation R5.79bn R1.08bn Capital Allocation Philosophy Cash from Finance costs, Replacement Growth Capex operations Tax and Other Capex R6.76bn -R973m -R4.7bn -R770m Interim Dividend R95m ZEDA Annual Results FY2024 19
Slide 20: Financial stewardship
Financial stewardship Debt ratios (Rm/times) Net debt Financial Leverage 9 087 Net Debt to EBITDA Maintained 7 321 8 505 1 0 0 0 12.0 Fleet carrying value 9 0 0 8.1 Interest cover (times) 8.3 10.0 Net debt at R4.7bn 8 0 0 6 280 7 0 0 8.0 5.5 Interest cover at 4.9x 6 0 0 4.9 6.0 remains strong 5 0 0
Slide 21: Capital structure
Capital structure Capital Structure at 30 September 2024* (Rm/times) Long Term Invested capital R1.2bn Short Term 7,562 Equity build-up since 7,229 unbundling Gross Debt: 5,863 Equity Equity Equity Improved to 38% of 2 894 38% 33% capital structure 1 194 2 164 Net Debt levels well maintained Strong
Slide 22: Funding facilities – September 2024
Funding facilities – September 2024 Rm Headroom R3.4b 9 300 3 437 Weighted average cost of debt down by 35bps driven by re-negotiation of rates with lenders 5 863 Balanced funding mix Lengthening debt maturity profile All financial covenants met Total Facilities Utilization Headroom ZEDA Annual Resu
Slide 23: Funding update and outlook
Funding update and outlook 1 UPDATE 2 OUTLOOK Moody’s Credit Ratings Diversify funding sources with unchanged at: inaugural bond issuance planned Ba3 Global Scale in Q2 of FY25 A1.za National Scale Mitigate against structural subordination R5 billion DMTN Programme to be Rebalance Funding toward reg
Slide 24: Outlook
Outlook ZEDA Annual Results FY2024 4 24
Slide 25: Tailwinds: bode well for business growth
Tailwinds: bode well for business growth 01 Declining interest rates: 50bps 02 reduction Positive to date business sentiments 04 Fleet 03 The impact Expertise Stabilization of the Ghana 05 Improvement of used car divestment in disposable market income ZEDA Annual Results FY2024 25
Slide 26: Medium-term focus areas: business growth
Medium-term focus areas: business growth Subscription Bedrock for growth Greater Africa Leasing book Used car business ZEDA Annual Results FY2024 26
Slide 27: To support the Group's growth ambitions
To support the Group’s growth ambitions: 1 Strong balance 2 Black sheet Ownership • Equity growing faster • BBBEE level for Zeda Limited than debt improved from Level 3 to Level 2 • Poised for aggressive growth which includes • Operating entities retained funding of inorganic Level 1 growth • Lack o
Slide 28: Generate value for shareholders
Generate value for shareholders: Returns from Dividend Return excess cash 1 2 3 capital employed policy to shareholders by the business • Capital allocation • Declared annual dividend To consider the following geared to generate of R1 based on the mechanisms solid returns dividend policy of 20% to •
Slide 29: Thank You Q & A
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