Enx Group Limited · JSE:ENX
Enx — FY2022 Earnings Presentation
33 slides from Enx's earnings presentation, November 2022
Slide 1: Results Presentation for the year ended 31 August 2022
RESULTS PRESENTATION for the year ended 31 August 2022
Slide 2: Contents
CONTENTS 01 WHO WE ARE 02 OUR PURPOSE & WHO WE REPRESENT 03 HIGHLIGHTS & KEY FOCUS AREAS 04 FINANCIAL PERFORMANCE 05 BUILDING OUR BUSINESS UNITS 06 DISPOSAL GROUP HELD FOR SALE 07 FINANCIAL REVIEW 08 OUTLOOK 2
Slide 3: Who We Are
WHO WE ARE
Slide 4: Who We Are
WHO WE ARE enX FLEET enX PETROCHEMICALS FLEET MANAGEMENT MANUFACTURING AND SOLUTIONS ACROSS ALL DISTRIBUTION OF CHEMICALS: VEHICLE CLASSES: Oil lubricants and base oils, Rental, tracking, insurance rubber chemicals, fillers, and remarketing INTEGRATED FLEET additives, natural and synthetic MANAGEMEN
Slide 5: Our Purpose & Who We Represent
OUR PURPOSE & WHO WE REPRESENT
Slide 6: Our Purpose
OUR PURPOSE enX Group is an integrated fleet management solutions provider and provider of quality branded equipment, petrochemical and fuel products • Integrated solutions-based leveraging off technology » Kynite » Specialist products and solutions in AG Lubricants & WAG • Grow asset light • Drive
Slide 7: Who We Represent
WHO WE REPRESENT BRAND RECOGNITION MARKETING EXPERTISE RESEARCH AND DEVELOPMENT GROWTH OPPORTUNITIES SUPPORTED WITH CONFIDENCE BY GLOBAL TOP 10 AND LEADING INTERNATIONAL BRANDS enX PETROCHEMICALS enX EQUIPMENT #1 #1 #1 #1 7
Slide 8: Highlights & Key Focus Areas
HIGHLIGHTS & KEY FOCUS AREAS
Slide 9: Highlights & Key Focus Areas
HIGHLIGHTS & KEY FOCUS AREAS 1. Robust performance for year ended 31 August 2022 » Solid profitability in continuing operations » Improved financial position » Strong cash generation 2. Disposal of EIE SA » Disposal effective 1 April 2022 » Aggregate consideration of R676 million (R700 million less
Slide 10: Highlights & Key Focus Areas
HIGHLIGHTS & KEY FOCUS AREAS 5. Disposal of Austro » Strategy of overseeing a controlled wind-down of the business with the specific intention to optimise cash generation » Over R30 million in cash has been generated for enX since strategy commenced in July 2020 » Reported as a held for sale asset a
Slide 11: Highlights & Key Focus Areas
HIGHLIGHTS & KEY FOCUS AREAS 7. Clover exit » Clover contract terminated at end June 2022 » Commercial vehicle capital settlements included in Revenue » Contract negatively impacted returns » Released invested capital will be returned to bankers and Group 8. Mandatory offer » Closed 3 June 2022 » Sm
Slide 12: Financial Performance
FINANCIAL PERFORMANCE
Slide 13: Financial Performance
FINANCIAL PERFORMANCE • Revenue from continuing operations of R5.556 billion (2021: R4.210 billion), up 32% • Operating profit¹ of R445 million (2021: R341 million), up 30% » Significantly better trading volumes and profitability within WAG and AG Lubricants » Robust performance from Eqstra » New Wa
Slide 14: Building Our Business Units
a ee aa ay 4 ; ) ye a | 4 ’/ A f PN a] ) y : “e> ww wv y ) BUILDING OUR BUSINESS UNITS — cd
Slide 15: Business Unit Analysis – Eqstra
BUSINESS UNIT ANALYSIS – EQSTRA enX FLEET Rm F2022 F2021 REVENUE VALUE CHAIN Revenue 2 226 1 769 EBIT¹ 244 234 36% PBT¹ 140 108 37% Leasing assets 2 350 2 769 Net working capital 145 135 2022 RENTAL Total assets 3 209 3 255 VALUE ADD SERVICES Interest-bearing liabilities² 1 527 1 870 REMARKETING Net
Slide 16: Business Unit Analysis – Eqstra Leasing Book
BUSINESS UNIT ANALYSIS – EQSTRA LEASING BOOK Leasing book remains healthy with risks well managed: • Credit risk: The book remains well diversified in terms of industry exposure and primarily blue-chip customers. The top 5 customers account for around 23% of the Leasing assets net book value • Inter
Slide 17: Business Unit Analysis – AG Lubricants
BUSINESS UNIT ANALYSIS – AG LUBRICANTS enX PETROCHEMICALS Rm F2022 F2021 F2022 Revenue 1 169 908 AG LUBRICANTS • Year-on-year revenue ↑ 29% underpinned by EBIT¹ 59 52 higher volumes sold as demand increased together with higher sales values due to a significant increase PBT¹,³ 71 68 in base oil pric
Slide 18: Business Unit Analysis – WAG
BUSINESS UNIT ANALYSIS – WAG enX PETROCHEMICALS Rm F2022 F2021 F2022 Revenue 1 798 1 259 WAG • Year-on-year revenue ↑ 43% with continued record revenues EBIT¹ 101 46 • Driven by product shortages due to global supply chain issues PBT¹ 92 43 • Higher demand from mining, industrial and packaging manuf
Slide 19: Business Unit Analysis – New Way
BUSINESS UNIT ANALYSIS – NEW WAY enX EQUIPMENT Rm F2022 F2021 F2022 Revenue 397 319 NEW WAY • Year-on-year Revenue ↑ 24% EBIT 14 (30) ‐ Increase in engines, parts, renewables and diesel sales PBT 10 (37) ‐ Short-term rental recovery ‐ Offset by lower generator sales Net working capital 84 94 • The c
Slide 20: Disposal Group Held for Sale
DISPOSAL GROUP HELD FOR SALE
Slide 21: Disposal Group Held for Sale – Current Period
DISPOSAL GROUP HELD FOR SALE – CURRENT PERIOD EIE SA: Shown as an asset held for sale and discontinued operation • EIE SA reported as an asset held for sale and discontinued operation from 31 August 2021 » Depreciation and amortisation of R263 million (after tax R189 million) ceased with effect from
Slide 22: Disposal Group Held for Sale – Prior Period
DISPOSAL GROUP HELD FOR SALE – PRIOR PERIOD Impact Handling (UK): Shown as an asset held for sale and discontinued operation • Impact Handling (UK) reported as an asset held for sale and discontinued operation from 1 February 2021 » Depreciation and amortisation of R113 million (after tax R91 millio
Slide 23: Financial Review
FINANCIAL REVIEW
Slide 24: Financial Review – KPIs Total Operations
FINANCIAL REVIEW Key performance indicators: Total operations (Rm, unless stated) F2022 F2021 Revenue 6 856 7 677 Operating profit* 536 665 Operating profit on a like-for-like basis*¹ 489 660 Headline earnings 481 377 Headline earnings on a like-for-like basis¹ 266 280 Basic earnings per share (cent
Slide 25: Financial Review – KPIs Continuing Operations
FINANCIAL REVIEW Key performance indicators: Continuing operations (Rm, unless stated) F2022 F2021 # Revenue 5 556 4 210 Operating profit* 419 339 Headline earnings 289 163 Basic earnings per share (cents) 149 89 Headline earnings per share (cents) 160 90 * Operating profit before net finance charge
Slide 26: Condensed Statement of Financial Position
FINANCIAL REVIEW CONDENSED STATEMENT OF FINANCIAL POSITION Rm Aug 2022 Aug 2021 Goodwill and intangibles 100 33 Leasing assets 2 350 2 770 Inventories 854 665 Trade and other receivables 1 057 811 Property, plant and equipment 124 133 Right-of-use asset (IFRS 16) 75 127 Restricted consideration 135
Slide 27: Condensed Statement of Cash Flows
FINANCIAL REVIEW CONDENSED STATEMENT OF CASH FLOWS Rm F2022 F2021 # Cash generated from operations before working capital movements 1 331 1 931 Working capital movements (514) (984) Cash generated from operations 817 947 Net interest and taxation paid (298) (336) Net cash flows from operating activi
Slide 28: Gross Interest-Bearing Borrowings
FINANCIAL REVIEW GROSS INTEREST-BEARING BORROWINGS Funding facilities (Rm) Facility size (Utilised)/Cash Liquidity Eqstra 1 950 (1 485) 465 Term 1 350 (1 350) - Revolving 400 - 400 General banking 200 (135) 65 Trading 317 (201) 116 Revolving 45 (45) - General banking 200 (84) 116 Trade finance 65 (6
Slide 29: Material Covenant Levels
FINANCIAL REVIEW MATERIAL COVENANT LEVELS Eqstra Covenants Level Aug 22 Net total debt: EBITDA ≤3.0x 1.4x EBITDA: net finance charges ≥1.5x 2.5x Net total debt: equity ≤2.5x 0.85x Loan to value ≤65% 38% enX Trading Covenants Level Aug 22 Net total debt: EBITDA¹ <2.0x 0.4x EBITDA: net finance charges
Slide 30: Outlook
OUTLOOK
Slide 31: Outlook
OUTLOOK • Sale of Impact Handling (UK) and EIE SA has improved the financial strength and stability of our capital structure by reducing gearing • Within Eqstra: » The diversified customer base with annuity revenue and in-use fleet provides a stable revenue stream » The proceeds of the termination o
Slide 32: Disclaimer
DISCLAIMER Certain statements in this presentation regarding enX’s business operations may constitute “forward-looking statements”. All statements other than statements of historical fact are included in this presentation, including, without limitation, those regarding the financial position, busine
Slide 33: Q&A
Q&A