Slides
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1 ZEDA Interim Results FY2025 2025 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2025
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2 ZEDA Interim Results FY2025 AGENDA 1 Operating Landscape 2 Business Overview 3 Financial Performance 4 Outlook Q&A
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3 ZEDA Interim Results FY2025 Key Themes: Challenging trading environment Robust operating model Diversified portfolio in action Disciplined strategy execution Delivered double-digit earnings growth and solid returns Business fundamentals remain strong
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4 ZEDA Interim Results FY2025 Challenging Trading Environment: • Sluggish GDP growth • Interest rates remain high • Uncertain geopolitical landscape • The aggressive entrance of new Asian OEMS brands drives downward pricing • Traditional OEMs challenged to defend market share • Fierce competition in the domestic market - New entrants - Price pressure - Grey imports Subdued macroeconomic environment Auto industry remains under pressure Heightened competition
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5 ZEDA Interim Results FY2025 Robust Operating Model 1 2 3 4 5 Demand Planning In-depth Understanding of customer needs Fund Right Fund assets using the most efficient financing structures Buy Right Right make and model as it affects the resale value Use Right Dispose Right Strategically defleet through our Avis dealerships and online channels Manage vehicle through its lifecycle
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6 ZEDA Interim Results FY2025 amidst a challenging trading environment Sturdy Financial Performance ROIC > WACC of 11.8% 22% ROE 10% growth in dividend Growth in HEPS and BEPS 16% 11% 12.2% 55 cents Robust Earnings Solid Returns Interim dividend declared Superior Margins 16% Operating Margin 34% EBITDA Margin R5.2bn Resilient Revenue 1.6% marginal decline in revenue
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7 ZEDA Interim Results FY2025 6% reduction in scope 2 emissions 3% reduction in scope 1 Renewable energy transition, solar and backup power installed at 5 sites Zero fatalities maintained 0.27 Lost Time Injury Frequency Rate (LTIFR) R7.3 million investment in youth learning, development, and skills initiatives Intensified cyber training and awareness campaign. Updated data and privacy-related policies, in response to increasing data crime. Reduce Environmental Impact Demonstrate Positive Social Impact Sound Governance Processes GovernanceEnvironment Social Sustainable Impact
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8 ZEDA Interim Results FY2025 BUSINESS OVERVIEW2
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9 ZEDA Interim Results FY2025 LEASING BUSINESS: Buoyant Performance • Heavy commercial units up 31% • Greater Africa revenue up 6% with operating profit up 15% • Maintenance Fund up 18% Revenue EBITDA margin R1.4bn an increase of 5.6% 60% with an EBITDA growth of 8.8% Operating margin 27% with an operating profit growth of 8.3% Key Performance Drivers:
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10 ZEDA Interim Results FY2025 RENTAL BUSINESS: Resilient Performance Revenue EBITDA margin R3.8bn a decline of 4.0% 24% with an EBITDA margin decline of 2ppts Operating margin 12% with an operating margin growth of 1ppts Key Performance Drivers: • Used car revenue down 5.8% • Digital dealership gaining traction • Subscription volumes up 49% • Utilisation rate up from 72% to 75% • Grew on-balance sheet fleet by R660m
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11 ZEDA Interim Results FY2025 FINANCIAL PERFORMANCE3
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12 ZEDA Interim Results FY2025 Solid Business Performance Average Fleet (000) EBITDA Margin Operating Margin 15%17% 18% 16% 405 540 439 453 236 263 350 379 641 803 789 832 HY2022 HY2023 HY2024 HY2025 Leasing Operations Rental Operations 38% 38% 34%34% 731 1 016 1 013 888 672 655 783 852 1 403 1 671 1 796 1 740 HY2022 HY2023 HY2024 HY2025 2 621 3 286 3 931 3 774 1 084 1 144 1 339 1 414 3 705 4 430 5 270 5 188 HY2022 HY2023 HY2024 HY2025 322824 30 171720 17 Operating profit (Rm) 5.4%-1.6% -3.1%
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13 ZEDA Interim Results FY2025 Diverse portfolio at play Insurance, Commissions & Other Leasing Rental Car sales Revenue (Rm) 1 537 1 636 2 127 2 004 1 181 1 765 1 887 1 876 938 968 1 185 1 235 49 61 71 73 HY2022 HY2023 HY2024 HY2025 -5.8% -0.6% +4.2% +2.8% -1.6% 3 705 4 430 5 270 5 188
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14 ZEDA Interim Results FY2025 Net finance costs* *Net finance costs excludes interest paid on IFRS 16 lease liabilities (Rm/%) 153 257 330 348 6,3% 9,0% 11,1% 10,2% 0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% - 50 100 150 200 250 300 350 400 HY2022 HY2023 HY2024 HY2025 The effective interest rate has decreased, driven by market rate declines and management efforts to reduce cost of funding SA Prime interest rate declined by 75bps to 11% during HY2025 Net finance costs (excl. IFRS 16) increased by 5.5% compared to HY2024 Average debt levels Increased by R472m compared to HY2024 Effective interest rate (%)* Net finance costs 90 bps
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15 ZEDA Interim Results FY2025 Tax charge reconciliation # Prior year overprovisions relate to adjustments that arise due to variances in estimated tax liabilities and the actual final tax liabilities. * Included in the non-taxable income is a deemed cost that rises from the portion of the market value of de-fleeted vehicles that exceeds their original cost when a deemed disposal takes place on the rental assets. When the rental assets commence to be held as trading stock, a deemed disposal takes place at market value. *Non-deductible expenses such as traffic fines, IFRS 2 shares that are equity settled, donations and foreign exchanges differences as we have companies that operate in different Greater Africa jurisdictions with different tax rates. ** Withholding tax relates to royalties paid over to Avis Budget Group for the license fees to operate the global Avis Budget brands. Other withholding tax relates to management fees, interest and rentals. 26,9% 27,0% 2025 Effective tax rate Net PY tax over provisions# Non-deductible expenses* Non-taxable income* Rate change adjustment Withholding tax** 2025 Statutory tax rate -0.1% +1.9% -1.7% -0.6% +0.6% 28,9% 27,0% 2024 Effective tax rate Non-deductible expenses * Withholding tax ** 2024 Statutory rate -1.4% March HY2025 March HY2024 -0.5%
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16 ZEDA Interim Results FY2025 Robust Earnings 196,5 165,4 183,7 0 50 100 150 200 250 HY2023 HY2024 HY2025 189,1 165,5 184,1 0 50 100 150 200 250 HY2023 HY2024 HY2025 Basic Earnings per share (BEPS) (cents) Headline Earnings per share (HEPS) (cents) Earnings growth • Solid Gross Profit margins • Improved position on foreign exchange impact • Managing the cost of funding • Lower effective tax rate +11.1% +11.2%
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17 ZEDA Interim Results FY2025 ROIC achieved above the WACC • Capital deployment strategy returned a ROIC above WACC • Shift in investment profile to long-term assets • Equity build-up since December 2022 - R1 704m before dividend payments - R1 509m taking dividend payments into account Value Creation 12,7 16,0 12,2 12,8 12,8 11,8 - 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 18,0 HY2023 HY2024 HY2025 28,3 28,5 21,8 - 5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0 HY2023 HY2024 HY2025 ROIC WACC Return on Invested Capital vs WACC (%) Return on Equity (%)
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18 ZEDA Interim Results FY2025 Operating assets supporting the business 2025 2024 2024 March March September PPE (excl vehicles) 35 116 46 Fleet Assets – Leasing 4 678 4 323 4 645 Fleet Assets – Rental 4 963 4 304 3 860 Other Assets 1 184 802 1 028 Net working Capital 112 (96) (639) - Receivables 1 846 1 480 1 558 - Inventory 871 887 972 - Payables (2 605) (2 463) (3 169) Financing split 52% 3% 45% HY25 49%51% HY25 Fleet assets split Long-Term debt ST portion of LT debt Short-Term debt Rental Leasing Zeda diversified the sources of funding utilised to acquire operating assets • We increased unsecured funding ratio with the issue of listed senior bonds and the establishment of the Common Terms Agreement (CTA) • Zeda continues to use operating leases for car rental where it is optimal • Investment in rental fleet driven by demand coming through the value chain • Inventory maintained at similar levels to March 2024 Classes of assets (Rm)
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19 ZEDA Interim Results FY2025 Financial stewardship # Interest Cover = EBITDA/Interest Expense. Net debt and interest excl IFRS 16 5 581 5 074 5 188 6 398 7 010 8 669 8 627 9 641 2,2 1,6 1,5 1,9 9,1 6,2 4,7 5,0 0,0 2,0 4,0 6,0 8,0 10,0 12,0 - 2 000 4 000 6 000 8 000 10 000 12 000 HY2022 HY2023 HY2024 HY2025 80%Net debt to Fleet Value 60% 66%59% Debt ratios (Rm/times) Financial stewardship • Interest cover at 5.0x remains strong • Net debt increased by R1 210m as the fleet value grew by R1 014m compared to HY2024 • Net debt to value at 66% demonstrates sustained embedded equity in our operating assets • The timing of our working capital in HY2025 delayed the cash generated from operations Net debt * Net Debt to EBITDA Fleet carrying value Interest cover (times) * Net debt is shown excluding capitalisation fees of R18.9m
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20 ZEDA Interim Results FY2025 *Excluding IFRS 16 liabilities Capital Structure on 31 March 2025* (Rm/times) Long Term Short Term R1 704m Equity build-up since listing • Equity represents 33% of capital structure • Net Debt levels well maintained • Strong cash at reporting date - R1 143m • Ability to expand the statement of financial position through cash and equity growth • R195 million dividends declared to Zeda shareholders since listing 6 398 Net Debt 67% Net Debt 66%3 650 1 143 3 183 Equity 33% Equity 34% 3 891 Gross Debt Cash Net Debt Equity Capital Structure 31-Mar-24 Gross Debt (**): 7 541 9 581 7 911 Invested capital ** Gross debt is shown excluding capitalisation fees of R18.9m
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21 ZEDA Interim Results FY2025 (Rm) Sufficient headroom of R3 341m Funding capacity • Sufficient funding capacity at appropriate commitment cost New Funding introduced in HY2025 • CTA Funding • Listed Bonds Lower cost of funding Increased unsecured funding Lengthening debt maturity profile Covenants • Group financial covenants met 10 882 7 541 3 341 Total Facilities Utilization Headroom New funding CTA Refinancing 1st Utilisation 31 Dec 24 2nd Utilisation 7 Jan 25 Listed Bonds issued on 17 Mar 25 ZDF001 (3-year Note) Spread: 135bps 17 Mar 28 ZDF002 (5-year Note) Spread: 155bps 17 Mar 30 Funding facilities
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22 ZEDA Interim Results FY2025 Pre-Refinance 31 Dec 24 Transition to Unsecured Funding 1 Post Refinance 31 March 25 Secured Unsecured Secured Unsecured 2 99% 1% 34% 66%
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23 ZEDA Interim Results FY2025 Outlook – Financial overview Discipline and focus to generate strong cash Improve technological platforms to enhance insights, decision making and finance support of Zeda Continued focus on the working capital Continue with the cost containment culture and driving operational excellence Continue to diversity our funding and drive down the cost of funding
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24 ZEDA Interim Results FY2025 OUTLOOK4
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25 ZEDA Interim Results FY2025 H2 Focus areas Cost efficiencies Ghana divestment Growth Optimal fleet management
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26 ZEDA Interim Results FY2025 Business fundamentals remain strong: Access to Competitive Funding • Lowering cost of funding • Grow asset-light business (MAU) Access to Vehicles • A diversified mix of vehicles • Heavy Commercial Access to Markets • Right market across our diversified integrated business Information Technology • IT & Data strategy takes us closer to a customer- centric model Disposal • Timing of defleet • Disposal of physical and digital
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27 ZEDA Interim Results FY2025 THANK YOU Q&A