Hudaco Industries Limited · JSE:HDC
Hudaco Industries — FY2025 Earnings Presentation
62 slides from Hudaco Industries's earnings presentation, November 2025
Slide 1: Results Presentation 2025
Hudaco RESULTS PRESENTATION 2025
Slide 2: Agenda
Agenda o General business environment o Overview of Hudaco in this environment o Exchange rates o Business model o Reporting segments o Operating profits and margins o Financial review o Outlook 2
Slide 3: General business environment
General business environment o We are very pleased with the results, especially given the world we operate in o South Africa’s economic environment remains depressed o The country’s deteriorating relationship with the USA o South African crisis areas – organised crime, corruption, de-industrializati
Slide 4: Overview of Hudaco in this environment
OVERVIEW OF HUDACO IN THIS ENVIRONMENT
Slide 5: Overview of Hudaco in this environment
Overview of Hudaco in this environment o Hudaco has benefited from a robust, defensive portfolio of diverse businesses o Pleasing year-end results after a very slow start - H1 CEPS were up 6,1% - H2 CEPS were up 11,8% - full-year CEPS were up 9,6% o 55% of the increase in CEPS came from businesses o
Slide 6: Results summary 2025
Results summary 2025 Gross Operating Attributable Turnover profit earnings 4,4% to profit margin 37,5% to 8,9% to 13,6% to R8,7bn R1,1bn R575m R3,3bn Headline Comparable Total Cash earnings per earnings per dividend per generated from share share share operations 15,7% to 9,6% to 9,3% to R1,4bn 2 32
Slide 7: Major shareholders / fund managers
Major shareholders / fund managers Government Employees Pension Fund 14% PSG Asset Management 10% Ninety One 8% Abax 7% Aylett & Co 7% Invesco 3% Old Mutual 3% Sanlam 3% 55% 7
Slide 8: Exchange rates
Hudaco EXCHANGE RATES
Slide 9: Exchange rate environment
Exchange rate environment o We import approximately 73% of the group's cost of sales directly o On average, these cost 2,5% less in 2025 than in 2024, with 16% between high and low o We don’t take a house view on exchange rates o We hedge all liabilities and on average 30% - 40% of orders Import cur
Slide 10: Exchange rate vs US$
Exchange rate vs US$ From 1 Dec 2024 to 30 Nov 2025 R20,0 R19,7 R19,5 Average Dollar price o 2024 - R18,33 o 2025 - R17,95 o H1 25 - R18,44 R19,0 o H2 25 - R17,54 R18,5 R18,0 R17,5 R17,0 10
Slide 11: The business model
Hudaco THE BUSINESS MODEL
Slide 12: The Hudaco business model
The Hudaco business model o Hudaco’s main business is the importation and distribution of high-quality branded automotive, industrial and electronic consumable products o The concept of “value-added distribution” is key to our business model o Agency agreements generally restrict our activities to A
Slide 13: Features of value-added distribution
Features of value-added distribution o Focused business units with Inventories R2 638m Receivables R1 449m application advice o Instant availability o 30 000 active customers o Technical specification o 31 warehouses o Generally low-value and product knowledge transactions – low o Training o 800 int
Slide 14: 2025 Sales by market sector (%)
2025 Sales by market sector (%) 28 Wholesale and retail 29 18 Automotive 17 17 Mining 17 17 Manufacturing 15 9 Exports 9 5 Security 6 3 Agriculture 2 2025 2 Construction 2024 2 1 Alternative energy 3 14
Slide 15: Reporting segments
Hudaco REPORTING SEGMENTS ~~ Solve er
Slide 16: Contribution by segment
Contribution by segment 2024 Contribution to 2025 operating profit 57% (before shared services and head office) 43% 59% 41% Consumer-related products Engineering consumables 16
Slide 17: Consumer-related products
Consumer-related products The consumer-related products segment imports and distributes branded products driven by consumer spending and generally sold to installers Consumer-related products (12 businesses) o Automotive aftermarket products o Power tools and fasteners o Data networking equipment o
Slide 18: Consumer-related products sales by market sector (%)
2025 Consumer-related products Sales by market sector (%) 39 Wholesale and retail 38 34 Automotive 31 12 Security 12 8 Exports 8 3 Manufacturing 3 2 Alternative energy 5 1 Mining 1 2025 1 Construction 2024 1 0 Agriculture 1 18
Slide 19: Consumer-related products: Automotive aftermarket
Consumer-related products Automotive aftermarket Principal businesses Principal brands Main markets Used for o Automotive alloy and steel o Automotive oil seals wheels o Ignition leads o Automotive parts and o Light-duty clutch kits accessories o Truck clutch components o Construction machinery o Un
Slide 20: Consumer-related products: Power tools and fasteners
Consumer-related products Power tools and fasteners Principal businesses Principal brands Main markets Used for o Agriculture o Building o D.I.Y. o D.I.Y. o Commercial marine o Fastening in all industries o Construction o Installations o Manufacturing o Propulsions of boats o Mining o Surveying o Re
Slide 21: Consumer-related products: Data networking equipment
Consumer-related products Data networking equipment Principal businesses Principal brands Main markets Used for o Security o Data solutions o Technology resellers o Fibre optic networks o Telecommunication operations o Network Infrastructure o Transport o Outdoor wireless network o Wireless, interne
Slide 22: Consumer-related products: Security and communication equipment
Consumer-related products Security and communication equipment Principal businesses Principal brands Main markets Used for o Commercial security o Access control o Military and police o Control centres o Mining o Fire detection o Municipal o Intrusion detection o Residential security o Mobile commun
Slide 23: Consumer-related products: Gas and outdoor products
Consumer-related products Gas and outdoor products Principal businesses Principal brands Main markets Used for o Camping and outdoor living o Cooking o Alternative energy o Lighting o Household and residential o Heating o Catering o Braaiing o Hiking and outdoor creation o Coolers o Camping 23
Slide 24: Consumer-related products: Batteries and sustainable energy
Consumer-related products Consumer-Related Products Batteries and Batteries And sustainable Alternative energy Energy Principal businesses Principal brands Main markets Used for o Alternative energy o Back-up power o Battery bays (UPS, inverters, alarms) o Data centres o Distribution centres o Minin
Slide 25: Segment results: Consumer-related products
Segment results | Consumer-related products Turnover Op margin Operating profit Rm 2025 % ch 2024 2025 2024 2025 % ch 2024 Operations 24+ months in 3 804 (2,0) 3 881 12,5 12,2 477 0,6 474 group Segment total 3 804 (2,0) 3 881 12,5 12,2 477 0,6 474 o The automotive businesses had a good year o Our da
Slide 26: Engineering consumables
Engineering consumables The engineering consumables segment imports and distributes branded products that are generally used to repair and maintain machines. Engineering consumables (21 businesses) o Bearings, belting and power transmission o Diesel engines and spares o Electrical power transmission
Slide 27: Engineering consumables sales by market sector (%)
2025 Engineering consumables Sales by market sector (%) Mining 29 30 28 Manufacturing 25 19 Wholesale and retail 21 10 Exports 10 5 Automotive 5 4 Construction 4 4 Agriculture 4 2025 1 Other 2024 1 27
Slide 28: Engineering consumables: Bearings, belting and power transmission
Engineering consumables Bearings, belting and power transmission Principal businesses Principal brands Main markets Used for o Food processing o Breweries o Industrial o Fluid conveyance and control o Manufacturing o Industrial automation o Mining o Mining equipment o Sugar industry o Process automa
Slide 29: Engineering consumables: Hydraulics and pneumatics
Engineering consumables Hydraulics and pneumatics Principal businesses Principal brands Main markets Used for o Automotive OEMs o Automotive OE supply o Construction o Conveyor systems o Food processing o General machinery and o General industry equipment o Manufacturing and mining o Maintenance o P
Slide 30: Engineering consumables: Electrical power transmission
Engineering consumables Electrical power transmission Principal businesses Principal brands Main markets Used for o Automation o Automation and control of o Manufacturing electric motors o Materials handling o Connection of electrical power in industry o Mining o Electrical panel building o Ports o
Slide 31: Acquisition: Isotec
Acquisition | Isotec o Isotec effective date 1 May 2025 o Manufacturer and distributor of thermal and electrical insulation material used in the manufacture and repair of transformers and electrical motors o Operates in the manufacturing, mining, railway, generation and switchgear industries o Initi
Slide 32: Engineering consumables: Specialised steel
Engineering consumables Specialised steel Principal businesses Principal brands Main markets Used for o General industry o Aerators and mixing o Manufacturing o Conveyor systems o Mining o Fabrication o Pressure vessels o General steel applications o Road tankers o Mining equipment o Sugar industry
Slide 33: Engineering consumables: Fire detection, containment and suppression
Engineering consumables Fire detection, containment and suppression Principal businesses Principal brands Main markets Used for o Mining o Fire detection o Data centres o Fire suppression o Commercial properties o Fire containment o Industrial o Fire education o Warehouses 33
Slide 34: Engineering consumables: Filtration and fluid transfer
Engineering consumables Filtration and fluid transfer Principal businesses Principal brands Main markets Used for o Construction and mining o Industrial air filtration o Earthmoving equipment o Mining equipment o Industrial plants o OEM supply o On and off-road trucks o Oil, air, fuel and hydraulic
Slide 35: Acquisition: FloSolve
Acquisition | FloSolve o FloSolve effective date 1 June 2025 o Importer and distributor of specialised equipment for the handling of fuels, lubricants, greases and other fluids associated with the servicing and refuelling of plant and machinery, especially in the mining industry o Initial payment R4
Slide 36: Engineering consumables: Other
Engineering consumables Other Principal businesses Principal brands Main markets Used for o Agri equipment o Condensate drain o Construction and mining management o Earthmoving equipment o Generator sets o Irrigation o Materials handling o Off road trucks o Mining equipment o Opencast mining o OEM s
Slide 37: Segment results: Engineering consumables
Segment Results | Engineering Consumables Turnover Op margin Operating profit Rm 2025 % ch 2024 2025 2024 2025 % ch 2024 Operations 24+ months in 4 570 1,3 4 513 13,9 13,9 638 1,9 625 group Acquisitions after Dec 2023 400 14,5 58 Segment total 4 970 10,1 4 513 14,0 13,9 696 11,2 625 o Acquisitions h
Slide 38: Combined segment results
Combined segment results Turnover Op margin Operating profit Rm 2025 % ch 2024 2025 2024 2025 % ch 2024 Consumer-related products 3 804 (2,0) 3 881 12,5 12,2 477 0,6 474 Engineering consumables 4 970 10,1 4 513 14,0 13,9 696 11,2 625 Head office, shared services (26) (15) (76) (92) and eliminations
Slide 39: Operating profit and margin
Hudaco OPERATING PROFIT AND MARGIN
Slide 40: Turnover
Turnover R billion 4,9 4,9 4,4 4,6 4,4 4,3 4,4 3,9 3,9 4,0 3,9 3,8 3,4 3,6 3,4 2,9 2,4 2,6 1,9 1,4 0,9 0,4 -0,1 2020 2021 2022 2023 2024 2025 H1 H2 40
Slide 41: Operating profit margin
Operating profit margin 2025 2024 Margin (%) Turnover 100,0% 100,0% Gross profit 37,5% 37,7% Operating expenses (25,0%) (25,7%) Operating profit 12,5% 12,0% 41
Slide 42: Operating expenses to turnover
Operating expenses to turnover % 30,0 25,0 26,6 25,6 24,5 25,7 25,0 24,0 20,0 15,0 10,0 5,0 0,0 2020 2021 2022 2023 2024 2025 42
Slide 43: Operating profit margin
Operating profit margin % 14,0 13,9 13,5 13,0 13,0 12,0 11,9 12,1 12,0 10,0 10,6 10,9 10,8 10,4 8,0 6,0 4,0 3,0 2,0 0,0 2020 2021 2022 2023 2024 2025 H1 H2 43
Slide 44: Financial review
Hudaco FINANCIAL REVIEW {IRONMAN}
Slide 45: Profit
Profit Rm 2025 % ch 2024 Turnover 8 748 4,4 8 379 Operations 24+ months in group 8 348 (0,4) 8 379 Acquisitions after Dec 2023 400 Gross profit 3 280 3,7 3 163 Operating expenses (2 183) 1,3 (2 156) Operations 24+ months in group (2 072) (3,9) (2 156) Acquisitions after Dec 2023 (111) Operating prof
Slide 46: Profit
Profit Rm 2025 % ch 2024 Operating profit 1 097 8,9 1 007 Fair value adjustments 29 (12) Impairment of goodwill (104) (77) Net interest on funding (86) (115) Imputed interest on leases (42) (38) Profit before taxation 894 16,9 765 Taxation (254) (219) (Rate 2025:28,5% 2024:28,6%) Profit after taxati
Slide 47: Profit restructured for goodwill impairment and vendor liability adjustment
Profit restructured for goodwill impairment and vendor liability adjustment Rm 2025 % ch 2024 Operating profit 1 097 8,9 1 007 Fair value adjustments (time value of money) (12) (12) Net interest on funding (86) (115) Imputed interest on leases (42) (38) Profit before tax, goodwill impairment and FVA
Slide 48: Comparable earnings
Comparable earnings Rm 2025 % ch 2024 Attributable earnings 575 13,6 506 Impairment of goodwill 104 77 Non-controlling interest (16) (12) Profit on disposal of PPE, net of minority (2) Headline earnings 661 15,7 571 Fair value adjustment to estimated capital amounts due (41) to vendors Non-controlli
Slide 49: Comparable earnings
Comparable earnings R million 400 390 350 348 348 300 322 280 250 265 257 230 236 200 223 210 150 100 50 22 0 2020 2021 2022 2023 2024 2025 H1 H2 49
Slide 50: Earnings per share and dividends
Earnings per share and dividends Cents 2025 % ch 2024 Earnings per share Comparable 2 205 9,6 2 012 Headline 2 327 15,7 2 012 Basic 2 023 13,6 1 782 Dividends per share - Interim 350 7,7 325 - Final 770 10,0 700 Total 1 120 9,3 1 025 Dividend cover (times) 1,97 1,96 50
Slide 51: Statement of financial position
Statement of financial position Rm 2025 2024 Working capital 2 776 2 615 - Inventories 2 638 2 461 - Receivables 1 449 1 329 - Payables (1 311) (1 175) Property, plant and equipment 419 377 Right-of-use assets 407 361 Goodwill and intangibles 1 444 1 372 Tax 18 59 Net assets 5 064 4 784 51
Slide 52: Statement of financial position
Statement of financial position Rm 2025 2024 Equity 3 900 3 611 Net borrowings 508 589 Lease liabilities 477 428 Due to vendors 107 86 Tax 72 70 Total equity and liabilities 5 064 4 784 52
Slide 53: Working capital elements
Working capital elements In months of sales 4 3 2 1 0 H2 19 H2 20 H2 21 H2 22 H2 23 H2 24 H2 25 -1 -2 Inventory Payables Receivables Net W Cap One month of sales 2024 = R733m (H2) 2025 = R810 (H2) 53
Slide 54: Inventory
Inventory In month of sales 5 4,4 4 3,9 4,0 3,8 3,6 3,5 3,4 3,3 3 3,1 3,1 3,2 2,7 2 1 0 2020 2021 2022 2023 2024 2025 H1 H2 54
Slide 55: Cash flow
Cash flow Rm 2025 2024 Cash from trading 1 336 1 241 Decrease in working capital 33 298 Cash from operations 1 369 1 539 Tax paid (249) (205) Cash from operating activities 1 120 1 334 Invested in new businesses (325) (112) Invested in software and ppe (80) (76) Cash flow after investing activities
Slide 56: Cash flow
Cash flow Rm 2025 2024 Cash flow after investing activities 715 1 146 Share-based payments (58) (125) Lease payments (rent) (163) (150) Finance costs paid (86) (115) Dividends paid (328) (324) Net movement 80 432 Foreign exchange translation gain (loss) 1 (8) Opening borrowings (589) (1 013) Closing
Slide 57: Key financial points
Key financial points o Economy kept turnover under pressure o Gross margin flat o Expenses tightly managed o Strong cash generation o Improved operating margin o Interest bill well down o Still have ample capacity for acquisitions o Likely capital allocation: - further good acquisitions - pay good d
Slide 58: Outlook
Hudaco OUTLOOK
Slide 59: Outlook for 2026
Outlook for 2026 o The South African economy ended 2025 in a stronger position than a year ago o Cautiously optimistic despite geopolitical risk o The depreciation of the US Dollar can be expected to put selling prices under pressure, but should be offset by the increase in consumer spending o We ho
Slide 60: Disclaimer
Disclaimer The preceding presentation contains forward-looking statements about the Hudaco Group’s operations and financial position. They are prepared in good faith and are based on Hudaco’s best estimates and information at the time of preparing the presentation. They are nonetheless subject to si
Slide 61: Contact Details
Contact Details Graham Dunford Clifford Amoils Chief executive Financial director Tel +27 11 657 5004 Tel +27 11 657 5002 grahamd@hudaco.co.za camoils@hudaco.co.za 61
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