METAIR INVESTMENTS LIMITED - Operational update and trading statement for the 12 months ended 31 December 2025

Evidence from the filing

• Headline Earnings Per Share (HEPS), excluding the Rombat Fine, are expected to increase significantly by between 76% and 86% for FY2025, indicating a robust recovery in core profitability.

  “HEPS is expected to be between 185 cents and 195 cents (FY2024: 105 cents*), being an increase of between 76% and 86%;”

• The Group forecasts substantial growth in continuing operations, with revenue expected to increase by 53% to 58% and Earnings Before Interest and Taxation (EBIT) projected to surge by 96% to 103% year-on-year.

  “Group revenue is expected to increase by between 53% and 58% year-on-year (FY2024: R11 376 million), driven by the inclusion of Hesto as a subsidiary with effect from 1 April 2025 and AutoZone for the full Period. Earnings before interest and taxation ("EBIT")**, is expected to range between R1 070 million (+96%) and R1 110 million (+103%) (FY2024: R546 million)”

• Metair has successfully concluded major debt refinancing totaling R3.3 billion and R1.4 billion, establishing a more sustainable debt structure and repayment terms aligned with expected earnings growth.

  “The SA Obligor R3.3 billion refinance, comprising the South African subsidiaries excluding Hesto, was concluded in April 2025, and the Hesto Obligor R1.4 billion refinance was concluded in June 2025.”

• The Group has demonstrated strong financial health by successfully meeting all debt covenants for both the SA Obligor and Hesto Obligor during the year, providing increased stability and confidence in its financial management.

  “We are pleased to report that all the covenants of the SA Obligor, including the earnings before interest, tax, depreciation and amortisation ("EBITDA") requirements, were met during the year. In addition, the covenants of the Hesto Obligor were also met.”

• The SENS explicitly details a EURO 20.2 million (R413 million) fine on Rombat SA and a "significant once-off net capital loss of approximately R300 million" from Hesto accounting.

  “As disclosed in the announcement published on SENS on 15 December 2025, the Commission issued a ruling imposing a total fine of EURO 20.2 million (R413 million, based on the prevailing exchange rate) on Rombat SA ("Rombat Fine"). Whilst the Group is considering all of its legal options regarding the matter, the Rombat Fine will be fully provided for by Rombat for FY2025.”

• The integration of AutoZone, a critical part of the Group's Aftermarket strategy, is "tracking approximately six-months behind plan" as it emerges from business rescue.

  “Bedding down AutoZone as the business emerges from business rescue is tracking approximately six-months behind plan, but Metair remains confident in the turnaround.”

• The company explicitly acknowledges it "continues to be impacted negatively by high interest paid on its outstanding debt".

  “While Metair continues to be impacted negatively by high interest paid on its outstanding debt, the restructured debt package has provided the Group with a more sustainable debt structure and appropriately aligned repayment terms.”

• The closure of the First Battery Industrial division and Dynamics Batteries in the UK signifies a contraction of the Group's operational scope.

  “(i) the Industrial division of First Battery, where importing and selling inverters and standby battery systems proved uneconomical; and (ii) Dynamics Batteries in the United Kingdom, which was closed as part of our strategy to focus on the African market.”

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