Slides
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2026 Results presentation for the 6 months ended 30 June
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2 Agenda CEO Update & Operational Review 01 Financial Review 02 Outlook and Prospects 03 Q & A 04
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Paul O’Flaherty 01 CEO Update & Operational Review
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4 Metair at a glance Automotive Component Manufacturing (OEM) - 67% of revenue Aftermarket Parts and Retail (AFM) – 33% of revenue Original equipment components used in the assembly of new vehicles Key products: wiring harnesses, headlights/taillights, shock absorbers, radiators, air-conditioners, mouldings, and other related components Components used in the fast-growing aftermarket spare parts market Key products: batteries, disk brakes and an extensive range of parts for aftermarket repairs and service Aftermarket customers DIY & enthusiasts Fleet managers Formal workshops Independent resellers Informal mechanics National customers OEM battery customers OEM customers Toyota Ford Isuzu Volkswagen Mahindra Countries of operation Countries supplied (direct and indirect) Geographic presence
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5 Highlights • Strategic reset substantially complete, subject to market conditions • Seamless key OEM customer model changeover, with new model experiencing strong demand • OEM production stabilising, albeit at lower levels • Aftermarket conditions challenging, although there are improvements • AutoZone growing ahead of the market and returning to profitability • Appeal lodged for the Rombat fine and first instalment of €4.2 million paid in August 2026 H1 2026: Strategy delivering results Underlying earnings stabilise as operational reset delivers; AutoZone recovery and cash conversion are key near-term priorities Source: Localisation Support Fund (“LSF”) and Ernst & Young Advisory Services Forecast automotive component aftermarket size Solid H1 2026 performance • Revenue stable in challenging environment • EBIT increased by 1%, with EBIT margin in line with prior period • Sustainable margin improvements in OEM businesses, other than Hesto • HEPS from continuing operations increased by 4% to 71cps from 68cps • EPS from continuing operations improved significantly from a loss of 90cps to a profit of 70cps • Net debt down from R5.0 billion to R4.3 billion and refinance concluded on SA Obligor extending the term by five years • Cash up from R143 million to R620 million • All debt covenants were complied with
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6 Vehicle volumes SA motor vehicle production – passenger cars and LCVs (‘000) PRODUCTION • Local production remains subdued and uneven across Metair’s customers • Toyota South Africa invested R10.4 billion in the 9th generation Toyota Hilux - largest investment in its history SALES • SA vehicle sales showed robust performance in the first six months of 2026, up 12.9% y-o-y • Strongest SA June vehicle sales performance in 19 years • Chinese and Indian imports account for most of that growth • SA vehicle exports declined 7.8% y-o-y in the half-year, impacting local OEM manufacturers 503 541 649 593 602 283 286 0 100 200 300 400 500 600 700 2021 2022 2023 2024 2025 H1'2025 H1'2026 OEM volumes 2023 2024 2025 H1’2025 YTD H1’2026 YTD PY var (units) Toyota 175 311 119 987 133 633 64 011 66 074 2 063 Ford 130 963 130 799 124 849 61 559 46 193 (15 366) VW 140 324 167 085 160 362 70 244 80 401 10 171 MBSA 88 056 67 241 57 541 34 320 30 879 (3 741) BMW 64 233 53 700 79 520 32 251 40 965 8 714 Nissan 22 207 13 592 11 127 6 620 4 082 (2 538) Isuzu 25 348 22 882 26 699 12 354 13 873 1 519 Other 2 789 18 224 8 571 1 103 3 450 2 347 649 231 593 510 602 302 282 748 285 917 3 169 Metair’s predominant customer exposure
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7 The Import Surge As total sales recovered, the mix tilted sharply toward imports: locally built vehicles have fallen to under a third of the market, the lowest share on record Locally built in SA Imported 44% 56% 2021 42% 58% 2022 41% 59% 2023 37% 63% 2024 31% 69% 2025 Locally built = SA-assembled share of new light-vehicle sales. Import penetration: 59% (2023) → 63% (2024) → 69% (2025), Naamsa. 2021–22 estimated on trend The import surge 69% of new light vehicles sold in SA were imported in 2025 — up from 63% in 2024 56% & 23% of imports came from India and China, respectively — together accounting for nearly 80% of total imports
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8 Automotive Component Manufacturing Division Operating environment › Local production subdued, due to import penetration › Localisation remains below industry targets › Logistics, energy and infrastructure constraints hamper exports Hesto › Metair’s flagship harness/wiring operation › Remarkable turnaround from a few years ago › Remains exposed to OEM volume fluctuations, as evident in current year › Revenue down 17% y-o-y, EBIT down 36% y-o-y Other OEM › Lower revenue (-3% y-o-y) › EBIT growth of 30% y-o-y due to cost-cutting and operational improvements
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9 Metair Aftermarket Parts and Retail Division Africa Integral to the diversification strategy AutoZone › Progress 6 months behind expectations, as previously flagged › New management team making good progress › Returned to profit from May 2026 First Battery › Challenging market conditions › Market preference for more affordable batteries › Strike settled Africa growth strategy › Permanent team appointed › Growing and ageing vehicle parc represents significant market
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10 Operational performance Products Wiring harnesses, instrument cluster / combination meters, moulded parts Revenue R2.6bn down 17%(1) (H1 2025: R3.1bn) EBIT R136m down 36%(1) (H1 2025: R212m) Revenue R1.9bn up 6% (H1 2025: R1.8bn) EBIT R54m unchanged Revenue R3.5bn down 3% (H1 2025: R3.6 bn) EBIT R297m up 30% (H1 2025: R228m) Products Heating, ventilation, air conditioning, climate control, other products Headlights, taillights, reflectors and plastic injection mouldings Plastic injection moulding, chrome plating, body colour painting, assemblies, etc Coil springs, leaf springs, stabiliser bars, torsion bars Automotive wire, PVC insulated copper Products Automotive batteries, battery distribution networks, & First Battery Centre franchises Brake pads, brake discs, brake shoes, hydraulics and other braking components Wholesale and retail distribution of automotive replacement components (1)Hesto was consolidated from 1 April 2025; % changes are full period- on-period to be comparable EBIT Margin 2.9% (H1 2025: 3.1%) EBIT Margin 5.3% (H1 2025: 6.9%) EBIT Margin 8.5% (H1 2025: 6.4%) Revenue R955m down 21% (H1 2025: R1.2bn) EBIT R52m down 2% (H1 2025: R53m) EBIT Margin 5.4% (H1 2025: 4.4%) Products Automotive batteries Automotive Component Manufacturing (OEM) Aftermarket Parts and Retail (AFM)
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Alastair Walker Financial Review 02
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12 H1 2026 results summary 12 Revenue Increased marginally to R8.5 billion (H12025: R8.5 billion) EBITDA increased 8% to R760 million (H12025: R703 million) EBIT increased 1% to R444 million (H12025: R439 million) Group Net Debt R4.3 billion (H12025: R5.0 billion) ROIC Increased to 11.2% (FY2025: 11.1%) HEPS from continuing operations increased by 3 cents to 71cps (H12025: 68 cps)
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13 Segmental summary AFM segment • AFM (Africa) EBIT unchanged at R54 million at a 2.9% margin (H12025: 3.1%) • First Battery EBIT increased to R82 million at an EBIT margin of 8.8% (H12025: EBIT R79 million at an 8.6% margin) • First Battery volumes increased by 5 000 units to 775 000 units • AutoZone EBIT loss of R21 million excluding restructuring costs (H12025: EBIT loss R24 million); 6 months behind its recovery plan • Rombat’s EBIT of R52 million at 5.4% margin (H12025: R53 million at 4.4% margin) OEM segment • SA OEM volumes up 1% to 286 000 units • EBIT increased to R433 million (+12%), and EBIT margin increased by 60bps to 7.6% • Hesto consolidated from 1 April 2025 • Hesto EBIT decreased to R136 million at an EBIT margin of 5.3% (H12025: EBIT of R212 million at a 6.9% margin) • The other OEM businesses EBIT increased to R297 million at an 8.5% margin (H12025: EBIT R228 million at a 6.4% margin) On IFRS Basis 1 OEM AFM GROUP 2 AFRICA ROMBAT R’million H12026 H12025(1) Var. H12026 H12025 Var. H12026 H12025 Var. H12026 H12025 Var. Reported revenue 5 732 5 491 4% 1 858 1 757 6% 955 1 216 (21%) 8 545 8 463 1% EBITDA 626 535 17% 135 139 (4%) 83 83 (1%) 760 703 8% EBIT 433 387 12% 54 54 0% 52 53 (2%) 444 439 1% EBIT % 7.6% 7.0% 2.9% 3.1% 5.4% 4.4% 5.2% 5.2% (1) Hesto for 3 months from 1 April 2025 (2) Group is after Head Office costs
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14 Cash flow Cash utilised from working capital (Excl. Rombat) R’million Inventory (39) Trade and other receivables (779) Trade and other payables 339 Other (14) Net cash outflow from working capital (493) Cash utilised in financing activities (Excl. Rombat) R’million Total debt repaid (65) Leases & other (102) Net cash outflow from financing activities (167) Cash utilised in investing activities (Excl. Rombat) R’million Capex (232) Interest received 25 Other investing activities (3) Net cash outflow from investing activities (210) 1 212 697 ( 493) ( 307) ( 50) 7 ( 210) ( 167) ( 69) 620 Net Cash FY2025 Cash generated before working capital (Excl. Rombat) Working Capital (Excl. Rombat) Interest paid (Excl. Rombat) Taxation paid (Excl. Rombat) Dividend from Assoc (Excl. Rombat) Investing Activities (Excl. Rombat) Financing Activities (Excl. Rombat) Rombat net Cash Utilised H1 2026 Rombat net cash utilised R’million Cash generated before working capital 68 Working capital (85) Interest and tax paid (21) Capex (12) Total debt repaid (19) Rombat net cash outflow (69) Group excluding Rombat Rombat Total cash utilised (Excl. Rombat): R523m
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15 Debt structure Debt is housed within 3 separate, ringfenced structures: • SA Obligor (comprising all SA based companies, excl Hesto) • Hesto (as a standalone obligor) • Rombat SA Obligor (R’million) As at 30 June 2026 Type Facilities Maturity Term Loan A Amortising 1 000 Mar-31 Term Loan B Bullet 1 300 Mar-31 Revolving Credit Facility Bullet 1 000 Mar-31 Total term debt 3 300 WCF* 600 Total Facilities 3 900 Covenants Met Total Interest Cover Ratio Greater than 2.25 x Y Debt Service Cover Ratio n/a - - Total Net Debt to EBITDA Not more than 4.35 x Y Covenants Met Total Interest Cover Ratio Greater than 3.00 x Y Debt Service Cover Ratio Greater than 1.20 x Y Total Net Debt to EBITDA Not more than 2.50 x Y Hesto (R’million) As at 30 June 2026 Type Facilities Maturity Term Loan A Amortising 610 Jun-30 Term Loan B Bullet 651 Jun-30 Total term debt 1 261 WCF 200 Total Facilities 1 461 *Including Smiths
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16 Funding structure • SA Obligor refinancing successfully completed (April 2026) • Hesto refinancing in progress • Five-year debt maturity aligned to earnings and cash flow profile • Continued focus on cash generation and balance sheet optimisation • Enhanced financial flexibility through revised covenant structure • All covenants met 200 250 250 250 501300 1000 133 162 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 SA Obligor Debt Maturity (R’million) Term A Term B RCF Leases & ISA 65 182 182 145 36 651 24 44 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Hesto Debt Maturity (R’million) Term A Term B Leases & ISA 5 8 7 1 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031 Rombat Debt Maturity (R’million) Debt facilities Leases & ISA SA Obligor Margin2 Term A: Base Rate1 + Margin 2.10 - 4.05% Term B: Base Rate1 + Margin 2.25 - 4.20% RCF: Base Rate1 + Margin 2.25 - 4.20% 1Base Rate = 90-day Zaronia 2Facilities are subject to leverage-based pricing mechanisms and Sustainability Linked Loan margin benefits Hesto Obligor Margin4 Term A: Base Rate3 + Margin 2.00 - 3.36% Term B: Base Rate3 + Margin 2.25 - 3.55% 3Base Rate = 3-mth Jibar 4The facilities are subject to a leverage -based pricing mechanism and will be linked to Sustainability Linked Loan margin benefits
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17 Capital Allocation/Commitment 7,1% 11,1% 11,2% 0,00% 2,00% 4,00% 6,00% 8,00% 10,00% 12,00% 2024 2025 H1 2026 2024 2025 H1 2026 Return on invested capital (ROIC)Capital expenditure (H1 2026) R’million 76 60 62 17216 12 H12025 H12026 Maintenance & General Expansion & Efficiency Rombat 244 154 Capital Commitments (H2 2026) R’million 214 14 12 4 OEM AFM (Africa) AFM (Rombat) HO Capital commitments by vertical R’million Maintenance & General Expansion & Efficiency Total OEM 168 205 373 AFM (Africa) 56 10 66 AFM (Rombat) 16 8 24 Head office 15 11 26 Total 255 234 489
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Paul O’Flaherty 03 Outlook and Prospects
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19 Outlook Automotive sector at a critical crossroads • Strategic government decisions are pivotal to sustaining and growing production levels • Close collaboration needed by all industry stakeholders, OEMs and representative bodies Diversification strategy continues • Growing the aftermarket component › Ageing vehicle parc › Reduce dependence on new vehicle production • African Aftermarket provides growth opportunities beyond South Africa OEM market • Toyota produced higher volumes in the half-year, expects further increases • Strong demand for new Toyota Hilux model • Ford volumes have stabilised • Sustainable margins at Metair subsidiaries continuing AutoZone turnaround a near-term priority • Signs of improvement in the general aftermarket • AutoZone trading day sales per day growing ahead of the market
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04 Q & A