Enx Group Limited · JSE:ENX
Enx — Merger or Acquisition (April 2017)
15 slides from Enx's merger presentation, April 2017
Slide 1: enX Group Limited: Moulding enX into a Focused Industrial Titan
enX Group Limited - Moulding enX into a Focused Industrial Titan - Creating an Exciting Future for Extract April 2017
Slide 2: Disclaimer
Disclaimer This Confidential Presentation (this “Presentation”) is being delivered to shareholders of enX (the “Recipient”). The sole purpose of this Presentation is to provide the Recipient with pertinent information relating to the repositioning of eXtract Group Limited (“EXG”) and conversion and
Slide 3: Recap: enX's R2,3bn Investment into eXtract
Recap: enX’s R2,3bn Investment into eXtract November 2016: R1,5bn Capital raise 1. enX acquires Industrial Equipment (IE) and Fleet 2 Management and Leasing (FML) in exchange for 52.7m(1) enX shares. enX shares 1 unbundled by Eqstra 2. enX raises R1,5bn(2) in fresh equity. enX injects R1,4bn into Or
Slide 4: Our Original Investment Thesis
Our Original Investment Thesis • Why did we invest in eXtract? Assets Held for Sale (R’million) 30 June 2016 o Holistic plan required by EQS board ….not Contract Mining - SA 135 willing to dispose of IE and FML businesses Contract Mining - Benga 511 unless solution presented for Contract Mining Plan
Slide 5: What has changed?
What has changed? The following key events materialised and observations made since the transaction closed: Event / Observation Notes Boteti: During December 2016, a dispute at a major contract in Botswana resulted in the customer withholding payment. EXG’s Botswana company was then placed in liquid
Slide 6: Creating an Exciting Future for eXtract
Creating an Exciting Future for eXtract • Transitioning certain counterparties to an owner/operator model • Termination of non-profitable contracts Addressing • Disposal of excess assets Current Operations • Significant reduction in EXG’s overhead costs, including a reduction in headcount • Signific
Slide 7: Moulding enX into a Focused Industrial Titan
Moulding enX into a Focused Industrial Titan enX’s Contribution Conversion and Unbundling of enX’s investment into EXG Moulds enX into a pure play industrial company with high quality industrial assets Unlocks value in enX by removing uncertainty for investors created by investment in EXG Benefits t
Slide 8: Experienced, Mining-Focused Board
Experienced, Mining-Focused Board Bernard Swanepoel (55) Sipho Nkosi (63) Octavia Matloa (40) Clinton Halsey (40) BCom (Hons), BSc (Min Eng) BCom (Hons)(Econ), MBA(Boston BCom (Hons), CTA, CA(SA) CA(SA), BAcc, Bcom University) Executive Chairman Independent Non Executive Independent Non Executive In
Slide 9: Valuation Summary
Valuation Summary ENX EXG 1-87 5-75 FY2017 HEPS NAV PS 9
Slide 10: What Value do enX Shareholders Receive from Conversion?
What Value do enX Shareholders Receive from Conversion? enX shareholders receive R5,75 of impaired NAV in EXG for every enX share held Conversion of enX debt into equity Mezzanine 1 695 Mezzanine 2 832 Termination Preference Shares 600 payment expected Total debt 2 127 in Q4 2017 or Debt to remain i
Slide 11: enX Industrial Businesses on a Stand-Alone Basis: Key Valuation Metrics
enX Industrial Businesses on a Stand-Alone Basis Key Valuation Metrics • enX Trading Update for interim period to be released on 18 April 2017 • Adjusted HEPS1 to be between 91,5 and 100,1 cents per share (2016: 43,6(2)) Pro-Forma FY2017 Full Year Earning Contribution Excluding Income from Investmen
Slide 12: enX Post Unbundling Funding Position
enX Post Unbundling Funding Position • Current enX debt levels are marginally lower than previously reported o Debt paid down and note redemption through operating cash generation and capital repayments from EXG o ZAR strength iro GBP borrowings • Proposed conversion and unbundling does not impact p
Slide 13: Proposed Timelines
Proposed Timelines 18 Apr 2017 Detailed Cautionary and Trading Update 15 May 2017 Interim Results Announcement 16 May 2017 Pro Forma impact of Transaction (vs Interim Results) – Cautionary Withdrawn 16 – 19 May 2017 Results Roadshow On or About 30 Jun 2017 Circular Posted On or About 31 Jul 2017 enX
Slide 14: In Summary
In Summary • Status quo EXG business not sustainable….poor outlook for contract mining • Exciting new future being created for EXG….new EXG leadership to drive execution of repositioning plan • Conversion to equity and unbundling of enX investments in EXG enables repositioning of EXG • Transaction u
Slide 15: Slide 15