Enx Group Limited · JSE:ENX
Enx — Debt Investor Presentation (March 2019)
16 slides from Enx's debt investor presentation, Mar 27, 2019
Slide 1: enX Bond Roadshow: Presentation to Debt Investors
enX Bond Roadshow Presentation to Debt Investors 26 - 27 March 2019 1
Slide 2: enX Management on the Roadshow
enX Management on the Roadshow • Steven Joffe - Chief Executive Officer (CA(SA)) • Appointed: 1 January 2018 • Previously Chairman of enX and Chief Executive Officer of Gold Reef Resorts Limited • Member of the enX Board and ALCO • Jarrod Friedman - Chief Financial Officer (CA(SA)) • Appointed: 1 Se
Slide 3: Key Credit Developments over the Past 12 Months
Key Credit Developments over the Past 12 Months • No exposure to contract mining. Full recovery of Extract receivable • Leasing businesses continue to trade profitably and grow • Improving credit metrics • A- rating from S&P achieved in September 2018. GCR Rating still applicable to RMB Guaranteed n
Slide 4: Market Leading Businesses Positioned for Growth
Market Leading Businesses Positioned for Growth Market Leading Businesses Positioned for Growth Business Strength A history of profitable operations 30 years 34 years History of profitable operations A history of profitable operations 3031 years years 34 years 35 years Strong market Strong market po
Slide 5: Credit Strengths: High Quality Asset-Backed Lending
Credit Strengths: High Quality Asset-Backed Lending • Long-term passenger and commercial vehicle leases • FML: 18% - 20% * • Long-term Toyota forklift leases • EIE: 22% - 25% * • Assets owned by enX • Strong customer and distributor Appropriate relationships Asset Backed Equity Capitalisation Receiv
Slide 6: Financial Highlights FY 2018
Financial Highlights FY 2018 (see note) REVENUE ADJ EBITDA REVENUE ADJ EBITDA R2 148 R741 R2 070 R815 million million million million ADJ EBIT LEASING ASSETS ADJ EBIT LEASING ASSETS R309 R1 734 R346 R2 537 million million million million Note: • Financial Information above only refers to RSA entitie
Slide 7: Improving Credit Metrics
Improving Credit Metrics Interest Cover Loan to Value 2.00x 100% 1.74x 1.76x 1.75x 1.75x 1.80x 1.67x 90% 1.60x 1.60x 80% 69% 1.40x 70% 63% 63% 61% 1.20x 60% 1.00x 50% Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18 Feb-18 May-18 Aug-18 Nov-18 EBITA:Net Interest Covenant Level LTV Covenant Level Increase e
Slide 8: Strengthening Capital Structure….Active Liquidity Management
Strengthening Capital Structure….Active Liquidity Management FY2019 goals: • Redeem/refinance R280m April 2019 maturities • Future funding strategy dependent on outcome of EFML process Note repurchases: R133m of early Credit rating: zaA- redemptions from S&P Notes issued: Note maturities: Bank term
Slide 9: Improving Maturity Profile…Significant Undrawn Liquidity
Improving Maturity Profile…Significant Undrawn Liquidity As at 28 Feb 2019 Debt Sources Utilised Unutilised Bond Debt 1 054 N/A Note-Specific Liquidity Facility 0 315 Term Facility 2 384 N/A Term Facility C 200 N/A GBF 0 400 Total Debt 3 659 715 Debt Maturity Profile 1600 1400 1200 1000 800 600 400
Slide 10: Funding Strategy Assuming No Fleet Disposal
Funding Strategy Assuming No Fleet Disposal What We Said and Did What We Plan (Assuming no fleet sale) Refinance upcoming maturities ✓ Approach debt capital markets in 2018-H1 for R150m– • Refinance of bank facility A (R2.38bn) to commence in R200m to part-refinance the notes coming up for maturity
Slide 11: Transaction Timetable
Transaction Timetable Key Steps Start Date Debt roadshow 26 - 27 March EQS06 repayment 09 April (R113.33mn) Termsheet without price guidance released 10 April Termsheet with price guidance released 17 April Holiday long weekend 19 April – 22 April enX auction date 24 April EQS05 maturity 25 April (R
Slide 12: Indicative Termsheet for Current Issuance
Indicative Termsheet for Current Issuance Issuer enX Corporation Limited DMTN Programme Size R4bn listed on the Interest Rate Market of the JSE Guarantor enX Group Limited Rating S&P zaA- Status of Notes Senior Unsecured Tenor 3-year Target Volume Up to R250mn Trade Date 24 April 2019 Settlement Dat
Slide 13: Key Contacts
Key Contacts enX Group Rand Merchant Bank • Steven Joffe • Delia Patterson • CEO • DCM Distribution • steven.joffe@enxgroup.co.za • Delia.Patterson@rmb.co.za • 082 903 5647 • 083 676 9595 • Paul Mansour • Barry Martin • CIO • Transactor • paul.mansour@enxgroup.co.za • Barry.Martin@rmb.co.za • 072 28
Slide 14: Notes
Notes 14
Slide 15: Notes
a Notes < e n xX
Slide 16: Disclaimer - Strictly Private & Confidential
Disclaimer - Strictly Private & Confidential This presentation has been prepared by FirstRand Bank Limited, acting through Rand Merchant Bank (“RMB”). The information contained in this presentation is confidential and intended solely for the use of the intended recipient. This presentation may conta