enX Group Limited (JSE:ENX) News - FInancial Results for the six months ended 28 February 2022 enX GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number 2001/029771/06) JSE share code: ENX ISIN: ZAE000222253 ("enX" or "the Group") FINANCIAL RESULTS for the six months ended 28 February 2022 - Revenue from continuing operations of R2.386 billion (2021: R2.047 billion) - HEPS from continuing operations of 53c per share (2021: 28c per share) - Net cash generated before financing activities of R29.9 million (2021: R336.1 million) - Net asset value per share of R14.82 (31 August 2021: R14.47) Restated Restated For the period For the period For the year ended 28 ended 28 ended February 2022 February 2021 31 August 2021 Total operations Net asset value per share (cents)** 1 482 1 391 1 447 Net tangible asset value per share (cents) 1 468 1 380 1 434 Continuing operations Basic earnings per share (cents) 53 28 89 Diluted earnings per share (cents) 53 28 89 Headline earnings per share (cents) 53 28 90 Discontinued operations Basic (loss)/ earnings per share (cents) (20) 35 76 Diluted (loss)/ earnings per share (cents) (20) 35 76 Headline earnings per share (cents) 95 34 118 ** Equity attributable to equity holder of the parent/Number of shares in issue less treasury shares Shareholders are referred to the SENS announcement dated 4 April 2022, in which the directors have declared a special distribution out of contributed tax capital of R2.00 per share to enX ordinary shareholders. We anticipate this to be paid on or about 13 June 2022, although this date is subject to change. The results for the six months ended 28 February 2022 reflect robust performance. enX continued on its post COVID-19 recovery underpinned by solid profitability, an improved financial position and continued generation of net cash flows before financing. enX's financial position continues to strengthen with net debt to equity of 47%, reducing substantially from 208% as at 31 August 2020, supported by the receipt of the net proceeds from the sale of Impact Handling (UK) during June 2021 and overall reduction in debt. Net asset value increased by 2% to R14.82 per share (31 August 2021: R14.47 per share). Revenue from continuing operations increased by 17% to R2.386 billion (2021: R2.047 billion) driven mainly by the continued recovery in activity across most businesses as COVID-19 lockdown restrictions eased and higher selling prices due to the pass through of increasing base oil and chemical input prices. Shortages in inputs were noted as demand increased in combination with global supply chain challenges. Operating profit from continuing operations before net finance charges and earnings from our associate was R206 million (2021: R132 million), an increase of 56%. Net finance charges in respect of continuing operations were R65 million (2021: R74 million), a reduction of 12% arising from lower debt balances primarily in Eqstra. Headline earnings per share from continuing operations was 53c per share (2021: 28c per share), an increase of 89%. Current period - Discontinued operations Shareholders are referred to the SENS announcement dated 30 September 2021 announcing the disposal of EIE SA to CFAO Holdings South Africa (''CFAO South Africa''). Binding Heads of Terms ("HoT'') were signed by enX and CFAO South Africa, whereby enX would dispose of its equity ownership in EIE SA for R700 million, subject to typical leakage adjustments between 31 December 2020 and closure of the transaction. On 29 November 2021, enX, CFAO and EIE SA concluded definitive transaction agreements. Shareholder approval was obtained at a general meeting on 20 January 2022 as required by the JSE Listings Requirements. Fulfilment of the final condition precedents took place on 1 April 2022 and the transaction became effective on that date. The net transaction value was R676 million, being the transaction value of R700 million less calculated leakage of R24 million. R135 million was placed in escrow, being 20% of the net transaction value, for a period of two years, in terms of the transaction agreements. In terms of IFRS 5, EIE SA has been reported as an asset held for sale and discontinued operation from 31 August 2021, the date that the conditions were met to be classified as such. enX is required to cease depreciation and amortisation from that date and assess the carrying value of the held for sale assets relative to the transaction value. Consequently, depreciation and amortisation from 1 September 2021 to 28 February 2022 amounting to R222 million (after tax: R160 million) was not recorded in the current period. On a like-for-like basis, profit before tax was R39 million (2021: R33 million). An impairment of R188 million has been raised to adjust the carrying value to net realisable value and equates to depreciation and amortisation from 1 September 2022 that has ceased, the profit earned for the period together with transaction and other costs. Based on the Board's longer-term decision to exit and manage a controlled wind-down of Austro Proprietary Limited ("Austro") with the specific intention to maximise cash generation, the business will be sold to two shareholders, WeOnIt Projects Proprietary Limited and WorkPlace Proprietary Limited for a consideration of R8.4 million on an as is basis, subject to the security for the pledge of Austro shares being released by enX Trading's lenders. In line with IFRS 5, Austro has been reported as an asset held for sale and discontinued operation with effect from 26 February 2022. Austro's revenue for the six months ended 28 February 2022 was R42 million (2021: R68 million) and the loss before tax was R6 million (2021: R2 million profit before tax). Profitability has been negatively impacted by relocation, exit and resizing costs. An impairment of R25 million has been raised to adjust the carrying value to net realisable value. The financial results for the six months ended 28 February 2022 have not been audited or reviewed by the Group's external auditors. This short-form announcement is the responsibility of the directors of the Company. This short-form announcement is only a summary of the full announcement which is published on the Company's website (https://www.enxgroup.co.za/interim-results) on 17 May 2022 and does not contain complete or full details. Any investment decisions by investors and/or shareholders should be based on consideration of the full announcement. This short-form announcement has not been reviewed or audited by the Company's auditors. The full announcement can be accessed directly using the following JSE link: https://senspdf.jse.co.za/documents/2022/jse/isse/enx/H1_FY2022.pdf Copies of the full announcement may be requested during office hours at no charge by emailing info@enxgroup.co.za or from the Company Secretary at enx@acorim.co.za By order of the board A Hannington R Lumb Chief Executive Officer Chief Financial Officer 17 May 2022 DIRECTORS Executive directors: A Hannington (Chief Executive Officer), R Lumb (Chief Financial Officer), O Mabandla (Executive) Non-executive directors: P Baloyi (Chairman), W Chapman, V Jarana^, Z Matthews*, L Molefe*, B Ngonyama* (* Independent) (^ Lead independent) Registered office: 9th Floor, Katherine Towers, 1 Park Lane, Sandton, 2196 Postal address: PostNet Suite X86, Private Bag X7, Aston Manor, 1630 Sponsor: The Standard Bank of South Africa Limited Company secretary: Acorim Proprietary Limited, represented by R Cloete Transfer secretaries: Computershare Investor Services Proprietary Limited Date: 17-05-2022 10:00:00 Produced by the JSE SENS Department. 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