enX GROUP LIMITED RESULTS PRESENTATION for the year ended 31 August 2017 1
DISCLAIMER Certain statements in this presentation regarding enX’s business operations may constitute “forward looking statements. ” All statements other than statements of historical fact included in this presentation, including, without limitation, those regarding the financial position, business strategy, management plans and objectives for future operations of enX are forward looking statements. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute enX’s current expectations based on reasonable assumptions. Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. enX neither intends to nor assumes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In preparation of this document we used certain publicly available data. While the sources we used are generally regarded as reliable we did not verify their content. enX does not accept any responsibility for using any such information. 2
AGENDA 1. Overview 2. Track record 3. Building our segments 4. Financial review 5. Outlook 6. Q&A 3
OVERVIEW 1. Transformed into a pure play industrial company 2. Our quality businesses 4
TRANSFORMED INTO A PURE-PLAY INDUSTRIAL COMPANY REVENUE: ADJ EBIT: ADJ HEADLINE EARNINGS: R6.22 bn R736m R281m NAV per share: NAV per share (excl. EXG): NET DEBT/EBITDA (RSA): R15.06 R13.87 2,3x EQUIPMENT FLEET PETROCHEMICALS REVENUE: R3.06bn REVENUE: R1.65bn REVENUE: R1.54bn ADJ PBT: R197m ADJ PBT: R181m ADJ PBT: R77m #1 #2 #1 ExxonMobil Materials handling Full service petrochemicals distributor equipment distributor fleet management Largest independent producer in SSA and logistics of oil lubricants 5
OUR QUALITY BUSINESSES EQUIPMENT FLEET PETROCHEMICALS • Strong OEM partnerships • • Market leading suite of Strong OEM partnership with Toyota and Mitsubishi VAPs with ExxonMobil • Market leader in SA • • 14 000 leased units, Products are an industrial • Annuity revenues, self 130 000 VAPs necessity • • funding Annuity revenues Largest independent • 13 000 strong fleet • lubricant blender and Cutting edge data and distributer in SSA • Own the value chain technology • • Customer contracts with • Platform to grow in the UK Scalable platform leading OEM’s • Scalable platform 6
TRACK RECORD 1. Creating shareholder value 2. Delivered in 2017 3. Decoupled from eXtract 7
CREATING SHAREHOLDER VALUE 200 ADJUSTED HEPS (cps) # Total return to shareholders 150 since 2013 CAGR = 33% Incl. 6 months of EIE and EFML 100 Incl. 4 months of EIE and EFML 50 0 2015 ^ 2007 2009-12 FY2012 2013 FY2013 2014 FY2014 FY2015 2016 FY2016 2017 FY2017 • Listed Austro • Post financial • Wild Rose • Establishment of • Awarded • Acquisition • Acquisition of EFML • Power business crisis downturn introduced as Petrochemicals ExxonMobil of Genmatics, and EIE • Decoupled from shareholders of segment through distributorship WAI and AGL acquired • Empowerment reference acquisition eXtract • Turnaround of of Centlube • Growing transaction and • Group renamed Wood capital raise Petrochemicals enX segment # Adjusted for 11:1 consolidation ^ Excluding once-off foreign exchange loss 8
DELIVERED IN 2017 CATEGORY WHAT WE SAID WHAT WE DID • Grow market share with Toyota aspiration • Toyota commitment for a further 3-year distribution agreement Strengthen • LOI signed with ExxonMobil to blend • Local production of ExxonMobil OEM lubricants at Cera plant lubricants partnerships • Exploring opportunities to vertically • New product distribution opportunities integrate lubricants supply chain • Acquisitions fully integrated • EIE, EFML, WAI and AGL • Quest • Quest system implemented and operational • New blending plant • Commissioned Cera inland blending Different with scale plant, resulting in increased capacity • Began distributing polypropylene • New product revenue for Chemicals • Entered prime-power market with • New power related revenues confirmed orders 9
DELIVERED IN 2017 CATEGORY WHAT WE SAID WHAT WE DID • Expand UK footprint • Advanced discussions with multiple UK dealers Geographical diversification • R1.87 Industrial adj. HEPS forecast • Achieved R1.81 • Improve capital structure • R70m/5-year bond Financial • New R550 million financing facility discipline • Redeemed notes R447 million • Group function right sized • Group cost 10
DECOUPLED FROM EXTRACT STRATEGIC RECAPITALISATION THARISA PPM PPM INVESTMENT INVESTMENT UNBUNDLING UNBUNDLING REVIEW AGREEMENT SALE TERMINATION TERMINATION VEHICLE VEHICLE STATUS enX loan receivable from eXtract R250m R100m by March 2018 Expected timing of repayment R150m by August 2019 Share equivalent value for enX shareholders R1.39 per share 11
BUILDING OUR SEGMENTS 1. enX Equipment 2. enX Fleet 3. enX Petrochemicals 4. The way we do things 12
enX EQUIPMENT Growing our UK operations with the support of our global OEM partners LATENT VALUE DEFENSIVE CHARACTERISTICS • Industrial Equipment • Market leaders in all businesses › Growing our UK operations with the support • Long-term relationships and support from leading of our global OEM partners global OEMs › Growth in selected African markets on an • Stable blue-chip client base export, dealer basis • Industry diversification › Operational efficiencies • Annuity income streams • Asset backed leasing contracts • Power: Grow contract manufacturing volumes, prime power and new power related revenues • Conservative approach to RVs, maintenance and provisions • Wood: Build leasing and rental book • Control all parts of the distribution value chain: › Distribution, leasing, after-market, used equipment › Strong after-market support teams 13
enX FLEET Leveraging data to differentiate our offering LATENT VALUE DEFENSIVE CHARACTERISTICS • • Market leading position Monetising data and technology (R)evolution - Quest offers ability to scale and use data to • Annuity income streams enhance customer value proposition • Asset backed leasing contracts • Stable blue-chip client base • Leasing book • Industry diversification › Approved capex to retain existing clients and • Unmatched portfolio of fleet management value- support new business for growth added products › Sales team investment • Base interest rate pass-through • Conservative approach to RVs, risk funds and • Value-added products provisions › Continue to grow VAPs revenue • Experienced management team › Non-capital intensive 14
enX PETROCHEMICALS Building a leading independent petrochemicals business in partnership with ExxonMobil LATENT VALUE DEFENSIVE CHARACTERISTICS • Lubricants • Products are an industrial necessity › Growth in ExxonMobil distribution volumes • Contract to service global strategic customers of › Growth in contract manufacturing volumes with ExxonMobil (Toyota, Volvo, UD Trucks, Cat Puma Equipment) › ExxonMobil local production to drive margin and • Strong operational, marketing, product and improve working capital management technology support from ExxonMobil › New product distribution opportunities with ExxonMobil › New plant to carry highest global quality standards • Chemicals › Surplus capacity for new products › Volume growth in polymer and speciality chemicals on the back of excess volumes from USA refineries › New distributorships 15
THE WAY WE DO THINGS OPERATIONAL DECISIONS CAPITAL FLOWS • Decentralised • Central cash pool ? • Agile • Disciplined allocation with board oversight • Cost efficient centre • Focused investment criteria and hurdle rates CULTURE GOVERNANCE • Entrepreneurial • Experienced, diverse board • Common set of values • Focused on creating value, the right way • Diverse opco cultures • Transformation 16
FINANCIAL REVIEW 1. Highlights 2. Segmental analysis Reporting periods 3. Condensed statement of profit and loss 4. Condensed statement of EIE / EFML 10 4 months 6 months financial position 5. Condensed statement of cash flows Other 6 months 6 months 12 6. Liquidity and funding 7. Capital markets evolution H1 2017 H2 2017 17
HIGHLIGHTS Key performance indicators R’000 FY2017 FY2016 Revenue 6 281 342 1 150 951 Adjusted earning before interest and taxation (EBIT) 735 626 40 122 Adjusted headline earnings 281 072 21 135 Adjusted headline earnings per share (cents) * 181.2 41.1 Number of shares in issue* 180 439 427 54 562 187 Weighed average number of shares in issue (net of treasury)* 155 154 559 51 477 830 Net asset value per share (cents) 1 506.4 1 259.9 > Net Asset Value, excluding eXtract Assets held for sale (cents) 1 387.1 - *Previous period had been represented to take into account the share consolidation of 11:1 18
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