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RESET AND SUSTAINABLE GROWTH WITH A FOCUS ON AFRICA RESULTS PRESENTATION For The Year Ended 31 December 2024 26 March 2025
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2 2 AGENDA CEO UPDATE & OPERATIONAL REVIEW1 FINANCIAL REVIEW2 OUTLOOK AND PROSPECTS3 Q & A4 3 This report contains forward-looking statements that relate to Metair’s future operations and performance. Such statements are not intended to be interpreted as guarantees of future performance, achievements, financial or other results. The statements rely on assumptions and future circumstances, some of which are beyond management’s control, and the outcomes implied by these statements could potentially be materially different from future results. No assurance can be given that forward-looking statements will prove to be accurate; thus, undue reliance should not be placed on such statements. Metair does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of publication of this report or to reflect the occurrence of unanticipated events. DISCLAIMER
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2 2 AGENDA CEO UPDATE & OPERATIONAL REVIEW1 FINANCIAL REVIEW2 OUTLOOK AND PROSPECTS3 Q & A4 3 This report contains forward-looking statements that relate to Metair’s future operations and performance. Such statements are not intended to be interpreted as guarantees of future performance, achievements, financial or other results. The statements rely on assumptions and future circumstances, some of which are beyond management’s control, and the outcomes implied by these statements could potentially be materially different from future results. No assurance can be given that forward-looking statements will prove to be accurate; thus, undue reliance should not be placed on such statements. Metair does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of publication of this report or to reflect the occurrence of unanticipated events. DISCLAIMER
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1 CEO UPDATE & OPERATIONAL REVIEW: PAUL O’FLAHERTY 5 FY2024 - A YEAR OF CHALLENGES AND ACHIEVEMENTS 5 Challenges we faced Achievements Reshaping the portfolio • Mutlu exit – significantly derisks the balance sheet and reduces interest charge • AutoZone acquisition • Finalising closure of other non-core operations Capital structure • Debt refinance package approved by lenders › Provides necessary runway and removes uncertainty Operational highlights • Continuation of the turnaround at Hesto: › Hesto improved from EBIT loss of R608 million to profit of R257 million, at 4.7% margin • Despite lower OEM revenues, continuing operations generated net profit of R282 million (FY23: R55 million) External impacts • Lower OEM production due to pressure on OEM traditional markets and increase in imported vehicles, especially from China and India • Port infrastructure challenges Internal impacts • TSAM engine certification issues led to significant under-recovery in overheads for Metair • Mutlu-Akü exposed Metair to non-controllable risks and hyper-inflation in Türkiye • Restructuring costs of R41 million impacting short-term profitability
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1 CEO UPDATE & OPERATIONAL REVIEW: PAUL O’FLAHERTY 5 FY2024 - A YEAR OF CHALLENGES AND ACHIEVEMENTS 5 Challenges we faced Achievements Reshaping the portfolio • Mutlu exit – significantly derisks the balance sheet and reduces interest charge • AutoZone acquisition • Finalising closure of other non-core operations Capital structure • Debt refinance package approved by lenders › Provides necessary runway and removes uncertainty Operational highlights • Continuation of the turnaround at Hesto: › Hesto improved from EBIT loss of R608 million to profit of R257 million, at 4.7% margin • Despite lower OEM revenues, continuing operations generated net profit of R282 million (FY23: R55 million) External impacts • Lower OEM production due to pressure on OEM traditional markets and increase in imported vehicles, especially from China and India • Port infrastructure challenges Internal impacts • TSAM engine certification issues led to significant under-recovery in overheads for Metair • Mutlu-Akü exposed Metair to non-controllable risks and hyper-inflation in Türkiye • Restructuring costs of R41 million impacting short-term profitability
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6 6 THIS IS A DIFFERENT METAIR Leading Sustainable African Mobility Player Strengthened management team • 2023-2025 – appointments of CEO, 2 x COO, Restructure Executive, HR Executive New culture • Clarity of accountability, common interpretation • Increased efficiency • Common values New structure for improved oversight, aligned with strategic imperatives • From Holding company to Operating company • Old verticals: “Automotive Components” and “Energy Storage” • New verticals: “Automotive Component Manufacturing” and “Aftermarket Parts and Services” • Sign-off obtained for consolidation of Hesto from 1 April 2025 New strategy to diversify markets and regions • Expand customer base and partners • African opportunities and expansion Debt restructured • Debt split and ring-fenced between Hesto and SA subsidiaries De-risked against volatility and OEM exposure • Mutlu sold (accounted for ~70% of Metair’s interest cost and 23% of net debt) • AutoZone acquired to develop Aftermarket sales channel 7 MUTLU AKÜ SOLD An important milestone in Metair’s turnaround despite disappointing proceeds • Mutlu was disposed of in December 2024 • The hyperinflationary and high-interest rate environment in Türkiye became unmanageable for the group • FY2024 Post-hyperinflation net loss (after tax and interest) of R486 million, up to the date of sale (FY2023: R74 million profit) • Equity proceeds realised on the sale impacted by high debt and trade creditor levels; there were no further credit lines available to Mutlu without shareholder support • Loss on sale including costs of R3.9 billion › Exacerbated by the hyperinflation and recycling of foreign currency translation losses Removing debt burden and ongoing complexity was vital for stabilising the balance sheet and interest burden, allowing management to focus on Metair’s growth ambitions
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6 6 THIS IS A DIFFERENT METAIR Leading Sustainable African Mobility Player Strengthened management team • 2023-2025 – appointments of CEO, 2 x COO, Restructure Executive, HR Executive New culture • Clarity of accountability, common interpretation • Increased efficiency • Common values New structure for improved oversight, aligned with strategic imperatives • From Holding company to Operating company • Old verticals: “Automotive Components” and “Energy Storage” • New verticals: “Automotive Component Manufacturing” and “Aftermarket Parts and Services” • Sign-off obtained for consolidation of Hesto from 1 April 2025 New strategy to diversify markets and regions • Expand customer base and partners • African opportunities and expansion Debt restructured • Debt split and ring-fenced between Hesto and SA subsidiaries De-risked against volatility and OEM exposure • Mutlu sold (accounted for ~70% of Metair’s interest cost and 23% of net debt) • AutoZone acquired to develop Aftermarket sales channel 7 MUTLU AKÜ SOLD An important milestone in Metair’s turnaround despite disappointing proceeds • Mutlu was disposed of in December 2024 • The hyperinflationary and high-interest rate environment in Türkiye became unmanageable for the group • FY2024 Post-hyperinflation net loss (after tax and interest) of R486 million, up to the date of sale (FY2023: R74 million profit) • Equity proceeds realised on the sale impacted by high debt and trade creditor levels; there were no further credit lines available to Mutlu without shareholder support • Loss on sale including costs of R3.9 billion › Exacerbated by the hyperinflation and recycling of foreign currency translation losses Removing debt burden and ongoing complexity was vital for stabilising the balance sheet and interest burden, allowing management to focus on Metair’s growth ambitions
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8 AUTOZONE ACQUISITION Integral to the new growth strategy • Acquired on 13 December 2024 › Acquisition price: R278.5 million › Net Asset Value: R473 million › FY2024 Revenue: R1.8 billion (From 1 January 2024 - 31 December 2024, acquired 13 December 2024) • AutoZone’s path to recovery › Metair’s acquisition provides a clean balance sheet › Funding used to increase inventory, sales and market share › Growing online and digital presence • Part of greater Metair strategy › Synergies with other Metair businesses › African growth opportunities › Represents strategic diversification shift * Source: NAAMSA, OICA THE AFTERMARKET OPPORTUNITY There are over 13 million registered vehicles in South Africa* …and an estimated 30 million vehicles in the rest of sub-Saharan Africa* The vehicles are aging, requiring more regular replacement of parts AutoZone has 213 retail branches, stocking a range of over 12 000 parts AutoZone also has franchises in Namibia, Swaziland and Botswana It is an ideal retail platform from which to drive Metair’s aftermarket aspirations 9 GROSS DEBT ADDRESSED AND REDUCED 0 2 000 4 000 6 000 01 Jan 2024 30 Jun 2024 31 Dec 2024 SA Debt Hesto Debt SH Loan - Yazaki Preference share Rombat debt Mutlu debt Bridge loan HISTORICAL GROSS DEBT EVOLUTION (Rand million) PRO-FORMA GROSS DEBT H1 2024 • Group debt increase driven by Mutlu, SA debt well contained 9 H2 2024 • Mutlu Akü was sold on 19 December 2024 • Yazaki was paid $38.2 million (R685 million) in July 2024 • R2 billion bridge facility extended to facilitate: › Redeeming the preference share facility (R840 million) › Acquiring AutoZone (R278.5 million) › Settling further $10 million Yazaki shareholder loans (R185 million - post year end) H1 2025 • Capital restructuring approved by board and external lenders 31 Mar 2025 Rombat debt Hesto Obligor loan SA Obligor loan
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8 AUTOZONE ACQUISITION Integral to the new growth strategy • Acquired on 13 December 2024 › Acquisition price: R278.5 million › Net Asset Value: R473 million › FY2024 Revenue: R1.8 billion (From 1 January 2024 - 31 December 2024, acquired 13 December 2024) • AutoZone’s path to recovery › Metair’s acquisition provides a clean balance sheet › Funding used to increase inventory, sales and market share › Growing online and digital presence • Part of greater Metair strategy › Synergies with other Metair businesses › African growth opportunities › Represents strategic diversification shift * Source: NAAMSA, OICA THE AFTERMARKET OPPORTUNITY There are over 13 million registered vehicles in South Africa* …and an estimated 30 million vehicles in the rest of sub-Saharan Africa* The vehicles are aging, requiring more regular replacement of parts AutoZone has 213 retail branches, stocking a range of over 12 000 parts AutoZone also has franchises in Namibia, Swaziland and Botswana It is an ideal retail platform from which to drive Metair’s aftermarket aspirations 9 GROSS DEBT ADDRESSED AND REDUCED 0 2 000 4 000 6 000 01 Jan 2024 30 Jun 2024 31 Dec 2024 SA Debt Hesto Debt SH Loan - Yazaki Preference share Rombat debt Mutlu debt Bridge loan HISTORICAL GROSS DEBT EVOLUTION (Rand million) PRO-FORMA GROSS DEBT H1 2024 • Group debt increase driven by Mutlu, SA debt well contained 9 H2 2024 • Mutlu Akü was sold on 19 December 2024 • Yazaki was paid $38.2 million (R685 million) in July 2024 • R2 billion bridge facility extended to facilitate: › Redeeming the preference share facility (R840 million) › Acquiring AutoZone (R278.5 million) › Settling further $10 million Yazaki shareholder loans (R185 million - post year end) H1 2025 • Capital restructuring approved by board and external lenders 31 Mar 2025 Rombat debt Hesto Obligor loan SA Obligor loan
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10 CAPITAL RESTRUCTURING Restructured debt sets Metair on path to sustainability • Capital restructuring approved by board and external lenders • Repayment profile matches expected cash flows over five years • Implementing focused strategies to enhance cash generation • Metair is confident it will meet the required EBITDA requirements of the SA Obligor debt GROSS DEBT MATURITY (Rand million) 0 2 000 4 000 2025 2026 2027 2028 2029 Revolving credit facility 1 Revolving credit facility 2 Revolving credit facility Hesto Hesto amortising bank loan Owed to Yazaki Rombat debt Bridge loan As at 31 December 2024 0 800 1 600 2 400 2025 2026 2027 2028 2029 SA Obligor term loan A SA Obligor term loan B Subordinated facility C Hesto term loan A Hesto term loan B Yazaki credit support loan Rombat debt As at 31 March 2025 11 RESTRUCTURED INTO TWO RINGFENCED PACKAGES Hesto Obligor of R1.4 billion • Refinance existing R475 million facility • Repay remaining loan advanced by Yazaki SA Obligor of R3.3 billion • Refinance short-term bridge loan of R2 billion • Refinance short-term RCF of R1.3 billion Measurement periods ending on or before: 31 Dec 2025 31 Dec 2026 31 Dec 2027 There- after Net senior debt to EBITDA 2.50x 2.50x 2.50x 2.00x Senior interest cover ratio 3.00x 4.00x 4.00x 4.00x Total interest cover ratio 1.75x 2.25x 3.50x 4.00x Debt service cover ratio n/a 1.10x 1.20x 1.20x Total net debt to EBITDA ratio 4.50x 3.50x 2.50x 2.00x Covenants Measurement date: 31 March, 30 June, 30 September and 31 December • Debt service cover ratio > 1.20x • EBITDA to interest cover ratio >3.00x for each measurement date during 2025 and 2026 and 3.50x for each measurement date thereafter, and • Net debt to EBITDA < 2.50x Refinanced current debt obligation in two separate ringfenced packages: Covenants
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10 CAPITAL RESTRUCTURING Restructured debt sets Metair on path to sustainability • Capital restructuring approved by board and external lenders • Repayment profile matches expected cash flows over five years • Implementing focused strategies to enhance cash generation • Metair is confident it will meet the required EBITDA requirements of the SA Obligor debt GROSS DEBT MATURITY (Rand million) 0 2 000 4 000 2025 2026 2027 2028 2029 Revolving credit facility 1 Revolving credit facility 2 Revolving credit facility Hesto Hesto amortising bank loan Owed to Yazaki Rombat debt Bridge loan As at 31 December 2024 0 800 1 600 2 400 2025 2026 2027 2028 2029 SA Obligor term loan A SA Obligor term loan B Subordinated facility C Hesto term loan A Hesto term loan B Yazaki credit support loan Rombat debt As at 31 March 2025 11 RESTRUCTURED INTO TWO RINGFENCED PACKAGES Hesto Obligor of R1.4 billion • Refinance existing R475 million facility • Repay remaining loan advanced by Yazaki SA Obligor of R3.3 billion • Refinance short-term bridge loan of R2 billion • Refinance short-term RCF of R1.3 billion Measurement periods ending on or before: 31 Dec 2025 31 Dec 2026 31 Dec 2027 There- after Net senior debt to EBITDA 2.50x 2.50x 2.50x 2.00x Senior interest cover ratio 3.00x 4.00x 4.00x 4.00x Total interest cover ratio 1.75x 2.25x 3.50x 4.00x Debt service cover ratio n/a 1.10x 1.20x 1.20x Total net debt to EBITDA ratio 4.50x 3.50x 2.50x 2.00x Covenants Measurement date: 31 March, 30 June, 30 September and 31 December • Debt service cover ratio > 1.20x • EBITDA to interest cover ratio >3.00x for each measurement date during 2025 and 2026 and 3.50x for each measurement date thereafter, and • Net debt to EBITDA < 2.50x Refinanced current debt obligation in two separate ringfenced packages: Covenants
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12 METAIR AT A GLANCE OUR BUSINESSES Our core values The concept of custodianship defines Metair’s approach to corporate social responsibility and ESG It challenges every person working at Metair to be the best caretaker they can be in their roles This broadens Metair’s focus to build a sustainable legacy while recognising the wider responsibilities the group has to its stakeholders * South Africa excludes AutoZone AUTOMOTIVE COMPONENT MANUFACTURING (SELLS DIRECTLY TO OEMs) 6 companies Products include: • shock absorbers • lights • radiators • air-conditioners AFTERMARKET, RETAIL AND DISTRIBUTION OF PRODUCTS 6 companies Products include: • brake pads • shock absorbers • lights • radiators • suspension parts • wiring harnesses • plastic assemblies • automotive batteries • air-conditioners • suspension parts • plastic assemblies • automotive batteries Includes 120 First Battery Centre outlets and AutoZone’s 213 retail stores and 8 QSV wholesale branches Romania 14% UK 1% South Africa 85% * Aftermarket excludes AutoZone Automotive components 74% Aftermarket 26% Revenue by country (continuing operations)* Revenue by segment (continuing operations)* 13 81 19 97 12 96 31 93 7 88 11 1 95 5 MATERIAL OPERATIONS AND MARKET SEGMENTS AUTOMOTIVE COMPONENTS MANUFACTURING OWNERSHIP 74.9% GROUP REVENUE CONTRIBUTION 32% Products Wiring harnesses, instrument cluster / combination meters, moulded parts Location KwaDukuza, South Africa Local OE 95% Local aftermarket 5% OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 6% Products Plastic injection moulding, chrome plating, body colour painting and assemblies, interior and exterior trim, instrument panel assemblies, 2K moulding technology, side injection technology, engine components and cooling systems Location New Germany, Westmead, East London and Pretoria, South Africa Local OE 96% Local aftermarket 3% Non-auto 1% OWNERSHIP 75% GROUP REVENUE CONTRIBUTION 12% Local OE 88% Local aftermarket 11% Exports 1% OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 7% Products Coil springs, leaf springs, stabiliser bars, torsion bars Location Boksburg and Nigel, South Africa Local OE 97% Local aftermarket 1% Exports 2% OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 12% Local OE 93% Local aftermarket 7% Revenue split by product area Revenue split by product area Revenue split by product area Revenue split by product area Revenue split by product area Revenue split by product area OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 3% Products Automotive wire, PVC insulated copper Location KwaDukuza, South Africa Local OE 81% Local aftermarket 19% HESTO AUTOMOULD SMITHS MANUFACTURING SUPREME SPRING LUMOTECH UNITRADE Products Heating, ventilation and air conditioning (HVAC) and climate control systems, air cleaners, wiper and washer systems, radiators, reserve tanks, charge air coolers, compressors, engine control units, air conditioning pipes, hoses and cooling modules Location New Germany, South Africa Products Headlights, taillights, reflectors and plastic injection mouldings Location Kariega, South Africa
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12 METAIR AT A GLANCE OUR BUSINESSES Our core values The concept of custodianship defines Metair’s approach to corporate social responsibility and ESG It challenges every person working at Metair to be the best caretaker they can be in their roles This broadens Metair’s focus to build a sustainable legacy while recognising the wider responsibilities the group has to its stakeholders * South Africa excludes AutoZone AUTOMOTIVE COMPONENT MANUFACTURING (SELLS DIRECTLY TO OEMs) 6 companies Products include: • shock absorbers • lights • radiators • air-conditioners AFTERMARKET, RETAIL AND DISTRIBUTION OF PRODUCTS 6 companies Products include: • brake pads • shock absorbers • lights • radiators • suspension parts • wiring harnesses • plastic assemblies • automotive batteries • air-conditioners • suspension parts • plastic assemblies • automotive batteries Includes 120 First Battery Centre outlets and AutoZone’s 213 retail stores and 8 QSV wholesale branches Romania 14% UK 1% South Africa 85% * Aftermarket excludes AutoZone Automotive components 74% Aftermarket 26% Revenue by country (continuing operations)* Revenue by segment (continuing operations)* 13 81 19 97 12 96 31 93 7 88 11 1 95 5 MATERIAL OPERATIONS AND MARKET SEGMENTS AUTOMOTIVE COMPONENTS MANUFACTURING OWNERSHIP 74.9% GROUP REVENUE CONTRIBUTION 32% Products Wiring harnesses, instrument cluster / combination meters, moulded parts Location KwaDukuza, South Africa Local OE 95% Local aftermarket 5% OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 6% Products Plastic injection moulding, chrome plating, body colour painting and assemblies, interior and exterior trim, instrument panel assemblies, 2K moulding technology, side injection technology, engine components and cooling systems Location New Germany, Westmead, East London and Pretoria, South Africa Local OE 96% Local aftermarket 3% Non-auto 1% OWNERSHIP 75% GROUP REVENUE CONTRIBUTION 12% Local OE 88% Local aftermarket 11% Exports 1% OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 7% Products Coil springs, leaf springs, stabiliser bars, torsion bars Location Boksburg and Nigel, South Africa Local OE 97% Local aftermarket 1% Exports 2% OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 12% Local OE 93% Local aftermarket 7% Revenue split by product area Revenue split by product area Revenue split by product area Revenue split by product area Revenue split by product area Revenue split by product area OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 3% Products Automotive wire, PVC insulated copper Location KwaDukuza, South Africa Local OE 81% Local aftermarket 19% HESTO AUTOMOULD SMITHS MANUFACTURING SUPREME SPRING LUMOTECH UNITRADE Products Heating, ventilation and air conditioning (HVAC) and climate control systems, air cleaners, wiper and washer systems, radiators, reserve tanks, charge air coolers, compressors, engine control units, air conditioning pipes, hoses and cooling modules Location New Germany, South Africa Products Headlights, taillights, reflectors and plastic injection mouldings Location Kariega, South Africa
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14 100 96 4 32 6870 15 15 MATERIAL OPERATIONS AND MARKET SEGMENTS AFTERMARKET PARTS AND SERVICES OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 1% Products Brake pads, brake discs, brake shoes, hydraulics and other braking components Location Boksburg, Nigel, South Africa Local aftermarket 96% Exports 4% OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 1% Products Batteries, battery distribution networks Location Lancashire, Wiltshire and Leicestershire, United Kingdom Local automotive100% OWNERSHIP 100% OWNERSHIP 25% Products Automotive and solar batteries Location Kenya OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 12% Local automotive 70% Local industrial 15% Revenue split by product area Revenue split by product area Revenue split by product area Revenue split by product area OWNERSHIP 99.4% GROUP REVENUE CONTRIBUTION 14% Products Automotive batteries, battery distribution networks Location Bistrita and Copsa Mica, Romania Local aftermarket 32% Exports 68% ALFRED TEVES BRAKE SYSTEMS DYNAMIC BATTERY AUTOZONE (acquired December 2024) ASSOCIATED BATTERY MANUFACTURERS (ABM) FIRST BATTERY ROMBAT Products Wholesale and retail distributor of automotive replacement components Location 213 retail stores and 8 QSV wholesale branches across South Africa Products Automotive batteries, solar systems, back-up systems, standby systems, charging systems, Battery Centre franchise Location East London, Cape Town, Durban and Benoni, South Africa Exports 15% 15 VOLUMES • Vehicle production linked to domestic and export market demand, tracks economic growth • Two thirds of SA annual vehicle production is exported › Europe is the main destination • Vehicle production decreased by 5% to 615 989 units in 2024 • Affected by major logistical challenge at ports and OEM-specific factors • Exports decreased by 2% to 390 000 units, due to OEM-specific factors • Total vehicle sales (NAAMSA), which include imports, fell 3% to 515 712 units in 2024 • Due to slow economic growth, high cost of living and sustained high interest rates • Sales have yet to reach pre-Covid levels OEM volumes 2021 YTD 2022 YTD 2023 YTD 2024 YTD PY var (units) Toyota 128 223 115 327 175 311 125 938 (49 373) Ford 87 174 92 166 130 963 129 859 (1 104) VW 129 119 134 864 140 324 173 548 33 224 MBSA 76 612 87 023 88 056 85 488 (2 568) BMW 61 580 61 823 64 233 58 085 (6 148) Nissan 22 747 24 800 22 207 16 866 (5 341) Isuzu 20 427 21 884 25 348 23 936 (1 412) Other 6 747 2 681 2 789 2 269 (520) 532 629 540 568 649 231 615 989 (33 242) SA motor vehicle production – passenger cars and LCVs (‘000) 615 417 503 541 649 616 0 100 200 300 400 500 600 700 2019 2020 2021 2022 2023 2024 SOUTH AFRICA
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14 100 96 4 32 6870 15 15 MATERIAL OPERATIONS AND MARKET SEGMENTS AFTERMARKET PARTS AND SERVICES OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 1% Products Brake pads, brake discs, brake shoes, hydraulics and other braking components Location Boksburg, Nigel, South Africa Local aftermarket 96% Exports 4% OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 1% Products Batteries, battery distribution networks Location Lancashire, Wiltshire and Leicestershire, United Kingdom Local automotive100% OWNERSHIP 100% OWNERSHIP 25% Products Automotive and solar batteries Location Kenya OWNERSHIP 100% GROUP REVENUE CONTRIBUTION 12% Local automotive 70% Local industrial 15% Revenue split by product area Revenue split by product area Revenue split by product area Revenue split by product area OWNERSHIP 99.4% GROUP REVENUE CONTRIBUTION 14% Products Automotive batteries, battery distribution networks Location Bistrita and Copsa Mica, Romania Local aftermarket 32% Exports 68% ALFRED TEVES BRAKE SYSTEMS DYNAMIC BATTERY AUTOZONE (acquired December 2024) ASSOCIATED BATTERY MANUFACTURERS (ABM) FIRST BATTERY ROMBAT Products Wholesale and retail distributor of automotive replacement components Location 213 retail stores and 8 QSV wholesale branches across South Africa Products Automotive batteries, solar systems, back-up systems, standby systems, charging systems, Battery Centre franchise Location East London, Cape Town, Durban and Benoni, South Africa Exports 15% 15 VOLUMES • Vehicle production linked to domestic and export market demand, tracks economic growth • Two thirds of SA annual vehicle production is exported › Europe is the main destination • Vehicle production decreased by 5% to 615 989 units in 2024 • Affected by major logistical challenge at ports and OEM-specific factors • Exports decreased by 2% to 390 000 units, due to OEM-specific factors • Total vehicle sales (NAAMSA), which include imports, fell 3% to 515 712 units in 2024 • Due to slow economic growth, high cost of living and sustained high interest rates • Sales have yet to reach pre-Covid levels OEM volumes 2021 YTD 2022 YTD 2023 YTD 2024 YTD PY var (units) Toyota 128 223 115 327 175 311 125 938 (49 373) Ford 87 174 92 166 130 963 129 859 (1 104) VW 129 119 134 864 140 324 173 548 33 224 MBSA 76 612 87 023 88 056 85 488 (2 568) BMW 61 580 61 823 64 233 58 085 (6 148) Nissan 22 747 24 800 22 207 16 866 (5 341) Isuzu 20 427 21 884 25 348 23 936 (1 412) Other 6 747 2 681 2 789 2 269 (520) 532 629 540 568 649 231 615 989 (33 242) SA motor vehicle production – passenger cars and LCVs (‘000) 615 417 503 541 649 616 0 100 200 300 400 500 600 700 2019 2020 2021 2022 2023 2024 SOUTH AFRICA
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16 INTENSIFYING OUR FOCUS ON DISCIPLINED CAPITAL ALLOCATION Optimising return on capital Metair financial return criteria: • Return on invested capital (ROIC) • Return on assets • Internal rate of return • Cash generation METAIR WACC: 14.5% Long-term targets: Automotive Components Vertical ROIC threshold: 25.4% Energy Storage ROIC threshold: 19.7% Component of executive remuneration to strengthen alignment with shareholder needs Return on Invested Capital (ROIC) vs Cost of Capital 8.5% 16.4% 4.5% 11.1% 7.1% 14.5% 0 6 12 18 2020 2021 2022 2023 2024 Group ROIC Cost of Capital Vertical ROIC and thresholds 4.8% 10.7% 14.3% 9.7% 14.1%15.8% 25.5% 4.9% 6.7% 0.1% 0 10 20 30 2020 2021 2022 2023 2024 Automotive components ROIC Automotive components ROIC threshold Energy storage ROIC Energy storage ROIC threshold 25.4% 19.7% 17 CAPITAL COMMITMENTS (R’million) Focus on expansion and efficiency • Metair ROIC has not exceeded WACC in last three years • Management remains focused on quality of earnings, cash generation and deleveraging to sustainable debt levels • Management priority is to restore ROIC >WACC over medium term • Capital allocation will focus on projects which meet required targets • Expansion and efficiency projects to be prioritised • Capital projects will be closely monitored through execution, to ensure business case returns are maintained Capital commitments by vertical (2025) Maintenance & general Health, safety & environment Expansion & efficiency Total Automotive Components 154 22 233 409 Energy Storage 75 8 22 105 Total 229 29 255 514 Hesto 32 5 153 190
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16 INTENSIFYING OUR FOCUS ON DISCIPLINED CAPITAL ALLOCATION Optimising return on capital Metair financial return criteria: • Return on invested capital (ROIC) • Return on assets • Internal rate of return • Cash generation METAIR WACC: 14.5% Long-term targets: Automotive Components Vertical ROIC threshold: 25.4% Energy Storage ROIC threshold: 19.7% Component of executive remuneration to strengthen alignment with shareholder needs Return on Invested Capital (ROIC) vs Cost of Capital 8.5% 16.4% 4.5% 11.1% 7.1% 14.5% 0 6 12 18 2020 2021 2022 2023 2024 Group ROIC Cost of Capital Vertical ROIC and thresholds 4.8% 10.7% 14.3% 9.7% 14.1%15.8% 25.5% 4.9% 6.7% 0.1% 0 10 20 30 2020 2021 2022 2023 2024 Automotive components ROIC Automotive components ROIC threshold Energy storage ROIC Energy storage ROIC threshold 25.4% 19.7% 17 CAPITAL COMMITMENTS (R’million) Focus on expansion and efficiency • Metair ROIC has not exceeded WACC in last three years • Management remains focused on quality of earnings, cash generation and deleveraging to sustainable debt levels • Management priority is to restore ROIC >WACC over medium term • Capital allocation will focus on projects which meet required targets • Expansion and efficiency projects to be prioritised • Capital projects will be closely monitored through execution, to ensure business case returns are maintained Capital commitments by vertical (2025) Maintenance & general Health, safety & environment Expansion & efficiency Total Automotive Components 154 22 233 409 Energy Storage 75 8 22 105 Total 229 29 255 514 Hesto 32 5 153 190
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1 FINANCIAL REVIEW: ANESH JOGIA2 19 F2024 RESULTS SUMMARY * Results have been reported on a continuing operations basis. Prior year results have been restated accordingly to exclude Mutlu ** EBITDA is calculated as earnings before interest, taxes, depreciation and amortisation, includes share of equity earnings and excludes capital items 19 REVENUE* decreased 2% to R11.8bn (F23: R12.1bn) EBITDA** decreased 8% to R844m (F23: R916m) EBIT* increased 28% to R603m (F23: R471m) HEPS* decreased by 9 cents to 89cps (F23: 98cps) FREE CASH FLOW generated R776m (F23: R306m) GROUP NET DEBT decreased to R2.7bn [R4bn incl. Hesto pro-rata] (F23: R4,6bn incl. pro-rata) NET DEBT: EBITDA increased to 3.2x From 2.6x ROIC reduced to 7.1% From 11.1% LTIFR Improved to 0.11 From 0.20 GROUP B-BEE level 1 SA subsidiaries at Level 4 or better
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1 FINANCIAL REVIEW: ANESH JOGIA2 19 F2024 RESULTS SUMMARY * Results have been reported on a continuing operations basis. Prior year results have been restated accordingly to exclude Mutlu ** EBITDA is calculated as earnings before interest, taxes, depreciation and amortisation, includes share of equity earnings and excludes capital items 19 REVENUE* decreased 2% to R11.8bn (F23: R12.1bn) EBITDA** decreased 8% to R844m (F23: R916m) EBIT* increased 28% to R603m (F23: R471m) HEPS* decreased by 9 cents to 89cps (F23: 98cps) FREE CASH FLOW generated R776m (F23: R306m) GROUP NET DEBT decreased to R2.7bn [R4bn incl. Hesto pro-rata] (F23: R4,6bn incl. pro-rata) NET DEBT: EBITDA increased to 3.2x From 2.6x ROIC reduced to 7.1% From 11.1% LTIFR Improved to 0.11 From 0.20 GROUP B-BEE level 1 SA subsidiaries at Level 4 or better
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20 FINANCIAL OVERVIEW: INCOME STATEMENT (continuing basis) Continuing operations generated net profit of R282m (F23: R55m) • Despite lower OEM volumes, revenue declined only 2% to R11.8bn • EBIT (before capital items) declined 20% to R504m, at 4.3% margin (F23: 5.3%), largely due to lower profitability in Automotive Components • EBITDA declined 8% to R844 million (F23: R916 million), temporarily impacted by once-off restructuring costs of R41 million • Net interest reduced 13% to R222m from R256m in F23 • Share of results of associates excludes Metair’s proportionate share of Hesto’s net profit amounting to R68m (F23: R393m loss) • Effective tax rate improved to 31.7% • Group ROIC down 4ppt to 7.1%, primarily due to lower earnings R’million 2024 2023¹ ² Ch % Revenue 11 819 12 056 (2) Gross profit 1 452 1 437 1 Other operating income 302 247 22 Distribution, administrative and other expenses (1 250) (1 051) (19) Operating profit before capital items 504 633 (20) Capital items² 99 (162) 161 Operating profit 603 471 28 Net interest expense (222) (256) 13 Share of result of associates and impairment 32 (10) >100 - equity accounted loss 32 (7) - impairment of investment (3) Profit before tax 413 205 >100 Tax (131) (150) 13 Profit from continuing operations 282 55 >100 (Loss)/profit for the period from discontinued operations (4 436) 74 (<100) (Loss)/profit for the year (4 154) 129 (<100) Earnings per share Basic (loss)/earnings per share (cents) (2 146) 49 (<100) Headline (loss)/earnings per share (cents) (203) 135 (<100) Earnings from continuing operations Basic earnings per share (cents) 140 11 >100 Headline earnings per share (cents) 89 98 (9) R’million 2024 2023¹ ² Ch % Effective tax rate (%) 31.7 73.2 (41.5ppt) EBITDA 911 761 20 EBITDA (incl. share of associates, excl. capital items) 844 916 (8) Operating profit margin before capital items (%) 4.3 5.3 (1ppt) Operating profit margin (%) 5.1 3.9 1.2ppt Group ROA (%) (31.7) 11.6 (43ppt) Group ROE (%) (99.7) 15.4 (115ppt) Group ROIC (%) 7.1 11.1 (4ppt) ¹ F23 has been represented for the classification of Mutlu as a discontinued operation. ² Capital items have been reclassified and presented separately. 21 HEADLINE EARNINGS AND CAPITAL ITEMS Headline earnings from total operations R’million 2024 2023 Net (loss)/profit attributable to ordinary shareholders (4 164) 96 Loss/(profit) on disposal of PPE net of tax 15 (16) Impairment of goodwill 52 Impairment of PPE 37 179 Impairment of investment in associate 3 Gain on bargain purchase (195) Loss on disposal of operations 3 861 Headline (loss)/earnings (394) 262 Headline earnings from continuing operations R’million 2024 2023 Net profit attributable to ordinary shareholders 272 22 Loss/(profit) on disposal of PPE net of tax 15 (15) Impairment of goodwill 52 Impairment of PPE 28 179 Impairment of investment in associate 3 Gain on bargain purchase (195) Headline earnings 172 189 Capital items from total operations R’million 2024 2023 (Loss)/profit on disposal of PPE net of tax (16) 20 Impairment of goodwill (52) Impairment of PPE (37) (181) Gain on bargain purchase 195 Loss on disposal of operations (3 861) Capital items (3 771) (161) Capital items from continuing operations R’million 2024 2023 (Loss)/profit on disposal of PPE net of tax (16) 19 Impairment of goodwill (52) Impairment of PPE (28) (181) Gain on bargain purchase 195 Capital items 99 (162) Headline earnings of R172m (F23: R189m) generated from continuing operations, translating into HEPS of 89cps (F23: 98cps)
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20 FINANCIAL OVERVIEW: INCOME STATEMENT (continuing basis) Continuing operations generated net profit of R282m (F23: R55m) • Despite lower OEM volumes, revenue declined only 2% to R11.8bn • EBIT (before capital items) declined 20% to R504m, at 4.3% margin (F23: 5.3%), largely due to lower profitability in Automotive Components • EBITDA declined 8% to R844 million (F23: R916 million), temporarily impacted by once-off restructuring costs of R41 million • Net interest reduced 13% to R222m from R256m in F23 • Share of results of associates excludes Metair’s proportionate share of Hesto’s net profit amounting to R68m (F23: R393m loss) • Effective tax rate improved to 31.7% • Group ROIC down 4ppt to 7.1%, primarily due to lower earnings R’million 2024 2023¹ ² Ch % Revenue 11 819 12 056 (2) Gross profit 1 452 1 437 1 Other operating income 302 247 22 Distribution, administrative and other expenses (1 250) (1 051) (19) Operating profit before capital items 504 633 (20) Capital items² 99 (162) 161 Operating profit 603 471 28 Net interest expense (222) (256) 13 Share of result of associates and impairment 32 (10) >100 - equity accounted loss 32 (7) - impairment of investment (3) Profit before tax 413 205 >100 Tax (131) (150) 13 Profit from continuing operations 282 55 >100 (Loss)/profit for the period from discontinued operations (4 436) 74 (<100) (Loss)/profit for the year (4 154) 129 (<100) Earnings per share Basic (loss)/earnings per share (cents) (2 146) 49 (<100) Headline (loss)/earnings per share (cents) (203) 135 (<100) Earnings from continuing operations Basic earnings per share (cents) 140 11 >100 Headline earnings per share (cents) 89 98 (9) R’million 2024 2023¹ ² Ch % Effective tax rate (%) 31.7 73.2 (41.5ppt) EBITDA 911 761 20 EBITDA (incl. share of associates, excl. capital items) 844 916 (8) Operating profit margin before capital items (%) 4.3 5.3 (1ppt) Operating profit margin (%) 5.1 3.9 1.2ppt Group ROA (%) (31.7) 11.6 (43ppt) Group ROE (%) (99.7) 15.4 (115ppt) Group ROIC (%) 7.1 11.1 (4ppt) ¹ F23 has been represented for the classification of Mutlu as a discontinued operation. ² Capital items have been reclassified and presented separately. 21 HEADLINE EARNINGS AND CAPITAL ITEMS Headline earnings from total operations R’million 2024 2023 Net (loss)/profit attributable to ordinary shareholders (4 164) 96 Loss/(profit) on disposal of PPE net of tax 15 (16) Impairment of goodwill 52 Impairment of PPE 37 179 Impairment of investment in associate 3 Gain on bargain purchase (195) Loss on disposal of operations 3 861 Headline (loss)/earnings (394) 262 Headline earnings from continuing operations R’million 2024 2023 Net profit attributable to ordinary shareholders 272 22 Loss/(profit) on disposal of PPE net of tax 15 (15) Impairment of goodwill 52 Impairment of PPE 28 179 Impairment of investment in associate 3 Gain on bargain purchase (195) Headline earnings 172 189 Capital items from total operations R’million 2024 2023 (Loss)/profit on disposal of PPE net of tax (16) 20 Impairment of goodwill (52) Impairment of PPE (37) (181) Gain on bargain purchase 195 Loss on disposal of operations (3 861) Capital items (3 771) (161) Capital items from continuing operations R’million 2024 2023 (Loss)/profit on disposal of PPE net of tax (16) 19 Impairment of goodwill (52) Impairment of PPE (28) (181) Gain on bargain purchase 195 Capital items 99 (162) Headline earnings of R172m (F23: R189m) generated from continuing operations, translating into HEPS of 89cps (F23: 98cps)
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22 FINANCIAL OVERVIEW: BALANCE SHEET The significant changes in the financial position of the group arise due to the disposal of Mutlu, the acquisition of AutoZone and the short-term bridge funding raised during the year • Non-current assets declined by R1.8bn, sale of Mutlu off-set by investment in Hesto of R0.7bn • Net working capital declined by R1.3bn to R2.0bn, when excluding the impact of acquisitions and disposals, declined by R0.5bn • Net cash improved to R808m from R567m in F23 • Group gross debt at R3.5bn (F23: R3.4bn), majority classified short term but restructured post year end • NAV per share declined by 50% to R13.88 (F23: R27.90), impacted by the loss on sale of Mutlu R’million 2024 2023 Non-current assets 4 112 5 867 PPE and intangible assets 2 732 5 245 Other non-current assets 1 380 622 Current assets 5 567 7 242 Inventory 2 105 3 290 Trade and other current receivables 2 289 2 983 Cash and cash equivalents 1 173 969 Total assets 9 679 13 109 Total equity 2 797 5 533 Non-current liabilities 644 1 700 Borrowings and financial liabilities 257 1 058 Provisions and other current liabilities 219 248 Deferred taxation 168 394 Current liabilities 6 238 5 876 Trade and other current payables 2 595 3 089 Borrowings and financial liabilities 3 279 2 385 Bank overdrafts 364 402 Total liabilities 6 882 7 576 Total equity and liabilities 9 679 13 109 2024 2023 Debt:equity (%) 126 62 Net debt:equity (%) 97 52 Net debt:EBITDA (incl. share of assoc, excl. capital items) 3.2 2.6 R’million 2024 2023 Net cash 808 567 Net debt 2 706 2 831 Net working capital 1 955 3 331 Net asset value per share (cents) 1 388 2 790 23 750525 250 225 846 43 46 1 815 0 1 000 2 000 3 000 4 000 2025 2026 Revolving credit facility 1 Revolving credit facility 2 Hesto revolving credit facility Hesto amortising bank loan Yazaki trade credit support Rombat debt Bridge loan DEBT PROFILE Covenant breaches remedied due to the approved debt restructure negotiated in March 25 • R1.2bn of net debt was de-recognised upon disposal of Mutlu • Bridge funding raised from SBSA for R1.815bn: › R685m used to rebalance shareholder loans in Hesto › R290m used to acquire AutoZone and › Repay R840m preference share debt in Dec’24 • A further R185m was drawn down and used to repay a portion of the Yazaki trade credit facility during Feb 25 Gross debt maturity (R‘million) 1 898 2 586 267 120666 1 720 1 302 4 551 4 008 0 1 000 2 000 3 000 4 000 5 000 2023 2024 RSA debt Rombat Mutlu debt Hesto (pro rata share) Net debt (R‘million) Financial covenant ratio Adjusted terms Dec 23 Original terms Dec 24 Dividends and interest cover Not less than 1.5x 1.7 Not less than 3x 3.2 Total net borrowings to adjusted EBITDA Not more than 4x 3.1 Not less than 2.5x 3.4 Priority debt covenant Not more than 2x 1.6 Not less than 1x 1.7 R3,5bn R1bn
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22 FINANCIAL OVERVIEW: BALANCE SHEET The significant changes in the financial position of the group arise due to the disposal of Mutlu, the acquisition of AutoZone and the short-term bridge funding raised during the year • Non-current assets declined by R1.8bn, sale of Mutlu off-set by investment in Hesto of R0.7bn • Net working capital declined by R1.3bn to R2.0bn, when excluding the impact of acquisitions and disposals, declined by R0.5bn • Net cash improved to R808m from R567m in F23 • Group gross debt at R3.5bn (F23: R3.4bn), majority classified short term but restructured post year end • NAV per share declined by 50% to R13.88 (F23: R27.90), impacted by the loss on sale of Mutlu R’million 2024 2023 Non-current assets 4 112 5 867 PPE and intangible assets 2 732 5 245 Other non-current assets 1 380 622 Current assets 5 567 7 242 Inventory 2 105 3 290 Trade and other current receivables 2 289 2 983 Cash and cash equivalents 1 173 969 Total assets 9 679 13 109 Total equity 2 797 5 533 Non-current liabilities 644 1 700 Borrowings and financial liabilities 257 1 058 Provisions and other current liabilities 219 248 Deferred taxation 168 394 Current liabilities 6 238 5 876 Trade and other current payables 2 595 3 089 Borrowings and financial liabilities 3 279 2 385 Bank overdrafts 364 402 Total liabilities 6 882 7 576 Total equity and liabilities 9 679 13 109 2024 2023 Debt:equity (%) 126 62 Net debt:equity (%) 97 52 Net debt:EBITDA (incl. share of assoc, excl. capital items) 3.2 2.6 R’million 2024 2023 Net cash 808 567 Net debt 2 706 2 831 Net working capital 1 955 3 331 Net asset value per share (cents) 1 388 2 790 23 750525 250 225 846 43 46 1 815 0 1 000 2 000 3 000 4 000 2025 2026 Revolving credit facility 1 Revolving credit facility 2 Hesto revolving credit facility Hesto amortising bank loan Yazaki trade credit support Rombat debt Bridge loan DEBT PROFILE Covenant breaches remedied due to the approved debt restructure negotiated in March 25 • R1.2bn of net debt was de-recognised upon disposal of Mutlu • Bridge funding raised from SBSA for R1.815bn: › R685m used to rebalance shareholder loans in Hesto › R290m used to acquire AutoZone and › Repay R840m preference share debt in Dec’24 • A further R185m was drawn down and used to repay a portion of the Yazaki trade credit facility during Feb 25 Gross debt maturity (R‘million) 1 898 2 586 267 120666 1 720 1 302 4 551 4 008 0 1 000 2 000 3 000 4 000 5 000 2023 2024 RSA debt Rombat Mutlu debt Hesto (pro rata share) Net debt (R‘million) Financial covenant ratio Adjusted terms Dec 23 Original terms Dec 24 Dividends and interest cover Not less than 1.5x 1.7 Not less than 3x 3.2 Total net borrowings to adjusted EBITDA Not more than 4x 3.1 Not less than 2.5x 3.4 Priority debt covenant Not more than 2x 1.6 Not less than 1x 1.7 R3,5bn R1bn
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24 SEGMENTAL SUMMARY ANALYSIS * Operating profit: Earnings before interest, tax, depreciation, amortisation excl. equity earnings, restructuring costs and before capital items. F23 has been adjusted accordingly. ** EBITDA: Earnings incl. share of equity earnings but before interest, tax, depreciation, amortisation and capital items. F23 has been adjusted accordingly. *** Energy storage vertical earnings are reported on a continuing basis (i.e. excl. Mutlu). F23 has been adjusted accordingly. Energy Storage Vertical*** Automotive Components Vertical Group R’million 2024 2023 Var. 2024 2023 Var. 2024 2023 Var. Revenue 4 619 4 239 9% 12 705 13 518 (6%) 11 819 12 056 (2%) Operating profit reported 195 215 (9%) 623 (41) >100% 603 471 28% Operating profit* 272 212 28% 631 (54) >100% 504 633 (20%) EBITDA** 394 338 17% 1 019 289 253% 844 916 (8%) Operating profit %* 5.9% 5.0% 0.9ppt 5.0% (0.4%) 5.4ppt 4.3% 5.3% (1ppt) ROIC (group incl. Mutlu) 0.1% 6.7% (6.6ppt) 14.1% 9.7% 4.4ppt 7.1% 11.1% (4ppt) ROIC (pre-Hyper) 17.5% 18.8% (1.3ppt) 13.6% 13.4% 0.2ppt Group Free cash flow 250 19 >100% 899 96 >100% 776 306 >100% Energy storage • Overall auto battery volumes improved by 10% from 3.9m to 4.3m units, supported by 19% increase in exports. • FB’s EBIT increased 25% to R225m (excluding restructuring costs of R32m) due to improved production efficiencies • Rombat volumes increased 23% to 2.8 million units, but margins impacted by cost pressure and residual Li-ion costs – EBIT of R45m at 1.8% margin. • Overall EBIT increased 28% to R272m at 6% margin (R240m including restructuring costs) Automotive components • SA OEM volumes declined overall by 5% to 616k units • 28% reduced volume demand from major customer impacted results • Despite lower volumes, operating profit recovered to of R631m (excluding restructuring costs of R9m). • Hesto improved from EBIT loss of R608m to profit of R257m, at 4.7% margin • Rest of auto business achieved R365m EBIT at 5.1% margin (F23: R553m at 7.1% margin) 25 WORKING CAPITAL AND FIXED CAPITAL EXPENDITURE • Net working capital reduced to R2.0bn (F23: R3.3bn) • Excluding impacts of acquisitions and disposals and hyperinflation › NWC reduced by R0.5bn • Besides the change in profit due to the sale of Mutlu, accelerated cash recoveries from customers and better trade terms with suppliers contributed to NWC days reducing from 77 days to 60 days • Capital expenditure tightly controlled at R598m, 41% spent on essential maintenance and 57% on efficiency and new customer models Capital expenditure ( incl Hesto) Maintenance & general Health, safety & environment Expansion & efficiency Total Automotive components 158 3 212 373 Energy storage 87 8 130 225 Total 245 11 342 598 Hesto 24 0 108 132 3.3 2.1 2.6 1.7 (2.9) (2.2) 0.4 0.4 (4) 0 4 8 2023 2024 Inventory Trade and other receivables Trade and other payables Net contract assets Net working capital Net working capital (R‘billion) 41% 76 65 59 53 (66) (69) 8 11 (80) 0 80 160 2023 2024 Inventory Trade and other receivables Trade and other payables Contract assets / liabilities - net Net working capital days 17 days
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24 SEGMENTAL SUMMARY ANALYSIS * Operating profit: Earnings before interest, tax, depreciation, amortisation excl. equity earnings, restructuring costs and before capital items. F23 has been adjusted accordingly. ** EBITDA: Earnings incl. share of equity earnings but before interest, tax, depreciation, amortisation and capital items. F23 has been adjusted accordingly. *** Energy storage vertical earnings are reported on a continuing basis (i.e. excl. Mutlu). F23 has been adjusted accordingly. Energy Storage Vertical*** Automotive Components Vertical Group R’million 2024 2023 Var. 2024 2023 Var. 2024 2023 Var. Revenue 4 619 4 239 9% 12 705 13 518 (6%) 11 819 12 056 (2%) Operating profit reported 195 215 (9%) 623 (41) >100% 603 471 28% Operating profit* 272 212 28% 631 (54) >100% 504 633 (20%) EBITDA** 394 338 17% 1 019 289 253% 844 916 (8%) Operating profit %* 5.9% 5.0% 0.9ppt 5.0% (0.4%) 5.4ppt 4.3% 5.3% (1ppt) ROIC (group incl. Mutlu) 0.1% 6.7% (6.6ppt) 14.1% 9.7% 4.4ppt 7.1% 11.1% (4ppt) ROIC (pre-Hyper) 17.5% 18.8% (1.3ppt) 13.6% 13.4% 0.2ppt Group Free cash flow 250 19 >100% 899 96 >100% 776 306 >100% Energy storage • Overall auto battery volumes improved by 10% from 3.9m to 4.3m units, supported by 19% increase in exports. • FB’s EBIT increased 25% to R225m (excluding restructuring costs of R32m) due to improved production efficiencies • Rombat volumes increased 23% to 2.8 million units, but margins impacted by cost pressure and residual Li-ion costs – EBIT of R45m at 1.8% margin. • Overall EBIT increased 28% to R272m at 6% margin (R240m including restructuring costs) Automotive components • SA OEM volumes declined overall by 5% to 616k units • 28% reduced volume demand from major customer impacted results • Despite lower volumes, operating profit recovered to of R631m (excluding restructuring costs of R9m). • Hesto improved from EBIT loss of R608m to profit of R257m, at 4.7% margin • Rest of auto business achieved R365m EBIT at 5.1% margin (F23: R553m at 7.1% margin) 25 WORKING CAPITAL AND FIXED CAPITAL EXPENDITURE • Net working capital reduced to R2.0bn (F23: R3.3bn) • Excluding impacts of acquisitions and disposals and hyperinflation › NWC reduced by R0.5bn • Besides the change in profit due to the sale of Mutlu, accelerated cash recoveries from customers and better trade terms with suppliers contributed to NWC days reducing from 77 days to 60 days • Capital expenditure tightly controlled at R598m, 41% spent on essential maintenance and 57% on efficiency and new customer models Capital expenditure ( incl Hesto) Maintenance & general Health, safety & environment Expansion & efficiency Total Automotive components 158 3 212 373 Energy storage 87 8 130 225 Total 245 11 342 598 Hesto 24 0 108 132 3.3 2.1 2.6 1.7 (2.9) (2.2) 0.4 0.4 (4) 0 4 8 2023 2024 Inventory Trade and other receivables Trade and other payables Net contract assets Net working capital Net working capital (R‘billion) 41% 76 65 59 53 (66) (69) 8 11 (80) 0 80 160 2023 2024 Inventory Trade and other receivables Trade and other payables Contract assets / liabilities - net Net working capital days 17 days
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26 CASH FLOW BRIDGE • Net cash (including overdrafts) improved to R808m from R567m in F23 • Cash generated from operations of R1.5bn (F23: R1.2bn), before interest payments of R1.1bn (F23: R0.8bn) • Financing inflows includes bridge facilities raised for R1.8bn • Investing activities includes: › R0.7bn investment in Hesto › R0.2bn for acquisition of Autozone › R0.4bn for Capex 567 808 679 804 30 1 537 (1 120) (192) (34) (1 339) (124) -1 000 -500 0 500 1 000 1 500 2 000 2 500 Cash and cash equivalents F23 Cash generated before working capital Working capital Interest paid Taxation paid Dividends paid Dividends from associates Investing activities Financing activities FCTR and hyperinflation Cash and cash equivalents F24 27 IMPACT OF CONSOLIDATING HESTO IN GROUP RESULTS Assumptions • Hesto included from 1 January 2024 • Non-controlling interest is calculated at 25.1% of results • The Hesto balance sheet included as reported (“predecessor basis”) R’million 2024 Continuing operations as reported Hesto results Continuing operations before consol adjustments Consol adjustments 2024 Continuing operations incl. Hesto Revenue 11 819 5 504 17 323 (476) 16 847 Operating profit before capital items 504 257 761 26 787 Operating profit 603 257 860 26 886 Profit for the period from continuing operations 282 91 373 30 403 Attributable profit from continuing operations 272 91 363 7 370 EBITDA 844 463 1 307 26 1 333 Headline earnings 172 91 263 7 270 HEPS 89 47 136 4 140 Operating profit margin 5.1% 5.0% 5.0% R’million 2024 Group reported 2024 Group incl. Hesto Non-current assets 4 112 4 663 Current assets 5 567 7 529 Total assets 9 679 12 192 Total equity 2 797 2 243 Non-current liabilities 644 850 Current liabilities 6 238 9 099 Total liabilities 6 882 9 949 Total equity and liabilities 9 679 12 192 Net cash 808 974 Net debt 2 706 4 432 Net working capital 1 955 2 607 Net debt:EBITDA 3.2 3.3 Net asset value per share (cents) 1 388 1 178 Income statement Balance sheet Turnover increases from R11.8bn to R17.0bn and EBITDA increases from R0.8bn to R1.3bn
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26 CASH FLOW BRIDGE • Net cash (including overdrafts) improved to R808m from R567m in F23 • Cash generated from operations of R1.5bn (F23: R1.2bn), before interest payments of R1.1bn (F23: R0.8bn) • Financing inflows includes bridge facilities raised for R1.8bn • Investing activities includes: › R0.7bn investment in Hesto › R0.2bn for acquisition of Autozone › R0.4bn for Capex 567 808 679 804 30 1 537 (1 120) (192) (34) (1 339) (124) -1 000 -500 0 500 1 000 1 500 2 000 2 500 Cash and cash equivalents F23 Cash generated before working capital Working capital Interest paid Taxation paid Dividends paid Dividends from associates Investing activities Financing activities FCTR and hyperinflation Cash and cash equivalents F24 27 IMPACT OF CONSOLIDATING HESTO IN GROUP RESULTS Assumptions • Hesto included from 1 January 2024 • Non-controlling interest is calculated at 25.1% of results • The Hesto balance sheet included as reported (“predecessor basis”) R’million 2024 Continuing operations as reported Hesto results Continuing operations before consol adjustments Consol adjustments 2024 Continuing operations incl. Hesto Revenue 11 819 5 504 17 323 (476) 16 847 Operating profit before capital items 504 257 761 26 787 Operating profit 603 257 860 26 886 Profit for the period from continuing operations 282 91 373 30 403 Attributable profit from continuing operations 272 91 363 7 370 EBITDA 844 463 1 307 26 1 333 Headline earnings 172 91 263 7 270 HEPS 89 47 136 4 140 Operating profit margin 5.1% 5.0% 5.0% R’million 2024 Group reported 2024 Group incl. Hesto Non-current assets 4 112 4 663 Current assets 5 567 7 529 Total assets 9 679 12 192 Total equity 2 797 2 243 Non-current liabilities 644 850 Current liabilities 6 238 9 099 Total liabilities 6 882 9 949 Total equity and liabilities 9 679 12 192 Net cash 808 974 Net debt 2 706 4 432 Net working capital 1 955 2 607 Net debt:EBITDA 3.2 3.3 Net asset value per share (cents) 1 388 1 178 Income statement Balance sheet Turnover increases from R11.8bn to R17.0bn and EBITDA increases from R0.8bn to R1.3bn
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1 OUTLOOK AND PROSPECTS: PAUL O’FLAHERTY3 29 OUTLOOK Significant progress this year to stabilise and reset our businesses on a growth path • Cost reductions and increased efficiencies › Turnaround at Hesto is well entrenched (will be fully consolidated from 1 April 2025) › Finalising the closure of: i. Alfred Teves Brake Systems manufacturing line ii. First Battery Industrial Division iii. Automould, East London plant • Focus on free cash flow generation and EBITDA protection › Including further rightsizing to manage volume risk and capital expenditure management • Bedding down the AutoZone acquisition, while exploring aftermarket synergies › AutoZone will bring higher margin earnings downstream • European Commission feedback regarding the Rombat statement of objection expected in 2Q 2025 • Do not expect a strong increase in volumes in the next two years › Resetting Metair to compete effectively in the current market environment › Actively seeking additional growth opportunities in this market: expanding product offerings, and entering new sales channels › Expand in Sub-Saharan Africa’s mobility sectors through “reset and growth” strategy
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1 OUTLOOK AND PROSPECTS: PAUL O’FLAHERTY3 29 OUTLOOK Significant progress this year to stabilise and reset our businesses on a growth path • Cost reductions and increased efficiencies › Turnaround at Hesto is well entrenched (will be fully consolidated from 1 April 2025) › Finalising the closure of: i. Alfred Teves Brake Systems manufacturing line ii. First Battery Industrial Division iii. Automould, East London plant • Focus on free cash flow generation and EBITDA protection › Including further rightsizing to manage volume risk and capital expenditure management • Bedding down the AutoZone acquisition, while exploring aftermarket synergies › AutoZone will bring higher margin earnings downstream • European Commission feedback regarding the Rombat statement of objection expected in 2Q 2025 • Do not expect a strong increase in volumes in the next two years › Resetting Metair to compete effectively in the current market environment › Actively seeking additional growth opportunities in this market: expanding product offerings, and entering new sales channels › Expand in Sub-Saharan Africa’s mobility sectors through “reset and growth” strategy
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30 OUTLOOK (continued) Repositioning the group has set Metair on a sustainable growth path Initiatives AUTOMOTIVE COMPONENT MANUFACTURING (PRIMARY SEGMENT) • Manufacturing excellence • New vehicle parts • New partners • New customers AFTERMARKET PARTS AND SERVICES (PRIMARY SEGMENT) • Integrate and identify synergies with AutoZone • Reposition ATE as purely aftermarket • Segment First Battery and Rombat between manufacturing and aftermarket • Capitalise on ABM as a footprint into Africa • Explore further acquisitions • Expand partner aftermarket offerings RESET Our vision: Generating value for our stakeholders by contributing to a sustainable future of mobility in Africa 31 METAIR’S STREAMLINED VALUE PROPOSITION Diverse and independent operations Independently operated businesses supplying a broad range of automotive parts across the vehicle parts spectrum and down the value chain through the recent AutoZone acquisition. Supportive industry tailwinds Favourable industry dynamics in South Africa, reinforced by government incentives. SA’s automotive sector continues to support SA GDP. AMSA closure risk being addressed. Trusted by blue-chip clients Reliable supplier to a diversified portfolio of long-standing, blue-chip customers. Partners have demonstrated commitment to Metair over the years through: Ford ramp-up complexities, TSAM KZN floods, KZN riots and TSAM EU engine issues. Optimised operational footprint Enhanced risk profile (Mutlu exit), strong competitive positioning and business right-sizing. Strong financial performance Stable margin business with robust cash generation capabilities, with volatility of Türkiye stripped out. FY24 recovery at Hesto and AutoZone bringing higher margin earnings downstream. Hesto will be fully consolidated effective 1 April 2025. Proven leadership team Led by an experienced, knowledgeable, and highly respected management team. Team capacitated at head office, driving operational best-practice with KPI alignment. Leadership in the Aftermarket sector and Metair’s ‘Right-to-Win’ Enhancing Metair’s market position within the automotive aftermarket industry by playing throughout the value chain. This enables the African Mobility growth vector.
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30 OUTLOOK (continued) Repositioning the group has set Metair on a sustainable growth path Initiatives AUTOMOTIVE COMPONENT MANUFACTURING (PRIMARY SEGMENT) • Manufacturing excellence • New vehicle parts • New partners • New customers AFTERMARKET PARTS AND SERVICES (PRIMARY SEGMENT) • Integrate and identify synergies with AutoZone • Reposition ATE as purely aftermarket • Segment First Battery and Rombat between manufacturing and aftermarket • Capitalise on ABM as a footprint into Africa • Explore further acquisitions • Expand partner aftermarket offerings RESET Our vision: Generating value for our stakeholders by contributing to a sustainable future of mobility in Africa 31 METAIR’S STREAMLINED VALUE PROPOSITION Diverse and independent operations Independently operated businesses supplying a broad range of automotive parts across the vehicle parts spectrum and down the value chain through the recent AutoZone acquisition. Supportive industry tailwinds Favourable industry dynamics in South Africa, reinforced by government incentives. SA’s automotive sector continues to support SA GDP. AMSA closure risk being addressed. Trusted by blue-chip clients Reliable supplier to a diversified portfolio of long-standing, blue-chip customers. Partners have demonstrated commitment to Metair over the years through: Ford ramp-up complexities, TSAM KZN floods, KZN riots and TSAM EU engine issues. Optimised operational footprint Enhanced risk profile (Mutlu exit), strong competitive positioning and business right-sizing. Strong financial performance Stable margin business with robust cash generation capabilities, with volatility of Türkiye stripped out. FY24 recovery at Hesto and AutoZone bringing higher margin earnings downstream. Hesto will be fully consolidated effective 1 April 2025. Proven leadership team Led by an experienced, knowledgeable, and highly respected management team. Team capacitated at head office, driving operational best-practice with KPI alignment. Leadership in the Aftermarket sector and Metair’s ‘Right-to-Win’ Enhancing Metair’s market position within the automotive aftermarket industry by playing throughout the value chain. This enables the African Mobility growth vector.
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1 Q & A4 NOTES
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1 Q & A4 NOTES