EOH HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1998/014669/06)
JSE share code: EOH ISIN: ZAE000071072
("EOH" or "the Group")




TRADING STATEMENT FOR THE FINANCIAL YEAR ENDED 31 JULY 2022


Salient features

•   EOH continued with its trend of year on year improvement in the operational environment with significant increase in Operating
    Profit and specifically as it relates to its continuing operations.

•   EOH generated an operating profit between R250 million to R310 million from continuing and discontinued operations for the
    year ended 31 July 2022 ("FY2022") following an operating profit of R147 million for the year ended 31 July 2021 ("FY2021").

•   An improvement in operating profit from continuing operations to between R90 million and R110 million.

•   An improvement of between 85% and 95% to the previously reported total loss per share ("LPS") (FY2021: 166 cents).

•   An improvement of between 25% and 36% to the previously reported headline loss per share ("HLPS") from continuing
    operations (FY2021: 109 cents)

•   An improvement of between 43% and 53% to the previously reported loss per share from continuing operations (FY2021: 192
    cents)

•   Net cash balance at 31 July 2022 of circa R460 million. The Group had gross leverage of circa R1.3 billion, with unutilised
    short-term facilities of R250 million.


Trading statement
                                       Total operations                                    Continuing operations
                                      FY2022                      FY2021                     FY2022                      FY2021
                                   Anticipated                   Reported                 Anticipated                   Reported
 LPS                  Between 10 cents and 20          166 cents per share      Between 90 cents and          192 cents per share
                               cents per share                                    110 cents per share
 HLPS                 Between 18 cents and 26           22 cents per share   Between 70 cents and 82          109 cents per share
                               cents per share                                        cents per share
 Adjusted               Between R460 million                 R667 million
 EBITDA                     and R520 million

The Group is now stable from an operational perspective and the remaining imperative is to strengthen the Group’s capital structure
and reduce its high interest charge. Although operational earnings improved, adjusted EBITDA, when compared to FY2021, is
lower primarily due to the loss of earnings from the sale of IP assets and as a result of increasing the provision related to the
settlement with the Special Investigating Unit ("SIU") on the Department of Water and Sanitation investigation. We have made
significant progress with the SIU and should have a legal basis agreed and concluded by the end of November 2022 with the SIU.

The additional provision made on the amount finally to be settled with the SIU was the single item that caused the group to make a
loss for the year rather than a profit, notwithstanding the heavy interest burden.
Operational overview

The 2022 financial year was characterised by an operating environment in South Africa that remained challenging. The Ukraine
conflict, stringent lockdowns in China, ongoing supply chain disruptions, the sharp rise in energy prices, floods in Kwa-Zulu Natal
and increased load-shedding all impacted an already weak local economy. The aggressive tightening of monetary policy locally and
world-wide to combat rising inflation is placing consumers and many corporates under pressure. Notwithstanding this, EOH was
able to deliver an improved total operating profit of between R250 million and R310 million compared to a total operating profit of
R147 million in the prior financial year and retain significant cash reserves while servicing its significant interest burden in full.
This is testament to the focused changes to the business model and way of operating.

The iOCO business continued to perform well and delivered improvements in gross margin and EBITDA margin compared to the
prior financial year.

Whilst our NEXTEC business started the year well, the second half of FY2022 brought challenges in the Infrastructure Solutions
business as a result of the effects of supply chain delays from OEM providers and the delay in project spend. Despite these
headwinds, NEXTEC also delivered an improvement in gross profit and EBITDA margins relative to the prior financial year.


Deleveraging plan and liquidity

The Group continues to closely manage its working capital and liquidity, with gross cash balances of circa R460 million at 31 July
2022, including foreign and restricted cash, but excluding the undrawn R250 million overdraft facility, which remains at EOH’s
disposal. The reduction of EOH’s debt and finalisation of an overall sustainable capital structure remains a key priority for EOH’s
management team and Board.

Following negotiations with lenders, EOH successfully refinanced the existing R1.9 billion debt into a R1.4 billion senior bridge
facility repayable on or before 1 April 2023, a R500 million 3-year senior term loan, due 1 April 2025, a R250 million overdraft
facility and R250 million in indirect facilities.

Proceeds from the sale of Sybrin and the Information Services Group, reduced the senior bridge facility to R832 million at year-
end. Subsequent to year-end the sales of Network Solutions and Hymax SA were concluded, further reducing the bridge facility to
R732 million.

With the deleveraging strategy approaching completion, the Group has been actively assessing its strategic options with regards to
achieving an optimal long term capital structure which will allow EOH to pursue its growth strategy, immediately improve earnings
and ultimately lead to value creation for shareholders. The Board and management continue to assess the Group’s capital
restructuring options and expect to make an announcement in this regard shortly after the release of the FY2022 results.


Annual results

EOH will publish its results for FY2022 on or about 27 October 2022.

The financial information on which this trading statement is based has not been reviewed and reported on by the Group’s external
auditors.

30 September 2022


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