22 Jun - 9 min read

Audited results for the year ended 31 March 2021

Audited results for the year ended 31 March 2021

Omnia Holdings Limited
(Incorporated in the Republic of South Africa)
Registration number 1967/003680/06
JSE code: OMN
LEI NUMBER: 529900T6L5CEOP1PNP91
ISIN: ZAE000005153
(Omnia or the Group)

SHORT FORM ANNOUNCEMENT
Audited results for the year ended 31 March 2021

Strategic delivery and financial highlights
- Continued execution against clear strategic objectives
- Resilient performance and strong delivery in challenging environment
- Disciplined capital allocation to create long-term stakeholder value
- Revenue1 stable at R17.8 billion (FY2020: R17.8 billion)
- Operating profit1 increased to R1.2 billion (FY2020: R744 million)
- Profit after tax1 increased to R658 million (FY2020: R79 million)
- EBITDA1 increased (excluding impairments) to R2.1 billion (FY2020: R1.7 billion)
- EPS1 increased to 394 cents (FY2020: 64 cents)
- HEPS1 increased to 391 cents (FY2020: 154 cents)
- Net cash increased by R3.2 billion to R1.3 billion (FY2020: R1.9 billion net debt)
- Net working capital decreased to R3.0 billion (FY2020: R3.9 billion)
- Net asset value stable at R9.7 billion (FY2020: R9.7 billion)
- Shareholder distribution of R1 billion (FY2020: Rnil)
1 From continuing operations.

ESG highlights
- B-BBEE rating improved to Level 2 (FY2020: Level 3)
- Zero fatalities for employees and contractors (FY2020: Zero)
- Group RCR improved to 0.35 (FY2020: 0.49)
- Water use efficiency improved by 8% to 0.52 2, 3 (FY2020: 0.57)
- Energy efficiency improved by 9% to 0.17 2, 3 (FY2020: 0.19)
- GHG emissions reduced to 261 500 CO2e (FY2020: 624 590 CO2e)
2 Even though production volumes increased by 15%. 
3 Per unit of utility consumed per volume produced.

"These results reflect a resilient performance achieved through continued delivery against our Group strategy in a
challenging and dynamic environment that required decisive management action and agility. Our proactive approach to
managing our business, and the Group's balance sheet has placed Omnia in a strong financial position, allowing us to
resume dividends and return over R1 billion to our shareholders. We are committed to increasing value to stakeholders
through sustainable business practices, the pursuit of organic and inorganic growth opportunities, greener technologies
and expansion into geographies that align with Omnia's purpose and enhance the Group's impact in the world." 
- Seelan Gobalsamy (CEO)

Financial results
Over the last two years, Omnia executed on its strategy to stabilise and fix the current businesses through changes to
operational processes, synergies, and culture.

In the fast-changing environment over the past 12 months, Omnia proved its renewed agility by consistently delivering
on critical strategic objectives while addressing COVID-19 disruptions across its operations. Omnia actively managed
manufacturing excellence and supply chain optimisation to further reduce product costs and exceed customers' quality
expectations. The focus on enhancing safety while promoting employee wellbeing also remained top of mind as the culture
of safety and accountability was consistently reinforced across the Group.

The implementation of the new operating model, which aims to consolidate key businesses in southern Africa, and
separate those which require additional investment, has been completed. This new operating model ensures that Omnia is
positioned to deliver on commitments made to customers, business partners and regional stakeholders sustainably.

Consistent delivery against clear strategic objectives resulted in improved cash generation from the underlying
businesses which, together with the proceeds from the disposal of Oro Agri, supported the ability to extinguish core
term debt and contributed to Omnia's strong financial position. As a result, the decision was made to resume dividend
distributions with a gross cash dividend of 200 cents per ordinary share being declared. After careful consideration of
near term capital requirements across Omnia, the board has also declared a special dividend of 400 cents per ordinary
share.

In parallel to the significant achievements of the past year, solid progress was made to initiate a reset and growth of
the organisation to start pursuing responsible capital allocation towards organic and inorganic growth opportunities,
greener technologies and expansion into geographies that enhance Omnia's impact in the world. As previously guided,
future capital allocation decisions will ensure that they are value accretive, provide the right diversification that
is complementary to Omnia's core businesses and skill set and strengthen the Group's overall positioning.

Notwithstanding the impact of COVID-19 and general economic and sector challenges, the Group operating profit (from
continuing operations) increased by 62% to R1 205 million (FY2020: R744 million). The Group generated a net profit
after tax (from continuing operations) of R658 million for the year ended 31 March 2021 (FY2020: R79 million).

The key factors driving operating profit in the three main divisions were as follows:

The Agriculture division experienced improved demand due to positive agronomic conditions, good crop harvest coupled
with high agriculture commodity prices seen towards the latter part of the financial year. Disciplined control of
expenditure, production efficiencies and the nitrophosphate plant benefit realisation also contributed to improved
margins despite supply chain challenges. Sales during the peak of the summer planting season were maximised. The
favourable agronomic conditions supported a positive demand outlook, however, early buying of raw material for the
winter crops was tempered by the increase in commodity prices seen towards the end of January 2021. Sasolburg's
scheduled plant maintenance shutdowns were planned to coincide with the traditionally quieter start to the financial
year.

Internationally, Agriculture benefited from an increase in humate production and product demand in Australia, as well
as higher export sales brought forward due to COVID-19-related supply concerns. In Zambia, contractual volumes for the
summer planting season were secured and collections were well advanced by year-end. A supply contract was concluded,
and production and stockpiling commenced prior to the period close. While commercial sales and retail sales during the
summer planting season were generally strong, sales reduced during the winter wheat season as a result of a more
stringent credit policy which decreased the overall sales volumes. The contraction of the Zimbabwean economy continues,
with a rapid increase in the inflation rate combined with a weakening Zimbabwean Dollar resulting in hyperinflation
and, as such, a deliberate decision was made to limit Omnia's exposure to currency and foreign exchange volatility
given the liquidity challenges in country. In Mozambique, cyclone Eloise had a minimal effect on the Beira operations
which had a strong year.

Operating profit for the division increased to R995 million (FY2020: R615 million) and increased to R565 million
(FY2020: R291 million) excluding the impact of Zimbabwe and the discontinued operation.

The Mining division experienced a steady recovery in mining operations post the hard lockdown in South Africa. However,
the December 2020 shutdowns, some mine closures as a result of COVID-19 and extreme wet weather in certain regions
resulted in lower volumes sold. Despite these challenges, the transitioning of a large mining contract progressed well
during the reporting period with two of the three mines being fully transitioned and the third mine in the final stages
of transitioning at year-end. Margins continue to be under pressure in the contractual and non-contractual environment
due to new entrants in the market. Costs relating to rental, salaries and wages, consumables and travelling were
reduced in line with targeted ongoing cost-saving initiatives.

Internationally, Mining has been adversely affected by COVID-19-related shutdowns and quarantines, an increase in
logistic costs in Australia as well as inclement weather in the SADC region. Canada has begun to positively contribute
to revenue growth. The commercialisation of the latest electronic detonating system, AXXISTM Titanium, is on track and
expected to open new opportunities globally.

The combined effects of electricity supply disruptions and COVID-19 over the year resulted in lower demand for
chemicals in mining across SADC, with a corresponding decrease in revenue and profits for Protea Mining Chemicals
(PMC). The end of life of a large contract resulted in margin pressure, however, performance did benefit from increased
sales of its solvent extraction solution into copper producers and is maintaining a strong position in the platinum
industry.

Operating profit for the division decreased to R287 million (FY2020: R356 million).

The Chemicals division experienced an improvement in sales towards the latter part of the financial year as customer
demand recovered from the lockdown measures implemented earlier in the year. New business opportunities arose as a
consequence of the COVID-19 pandemic that were addressed by regular adjustments being made to the supply chain to
enable the business and its customers to succeed. In addition, repositioning of the product range to better meet the
needs of evolving markets ensured that Protea Chemicals delivered higher margins that, together with stringent cost
management, offset lower profitability attributable to overall revenue declines.

Umongo Petroleum experienced an increase in demand as a result of a global shortage of base oils due to an imbalance in
supply and demand, which resulted in improved margins. Selective new business, in response to the shortages, and a
reduction in operating expenses contributed to improved margins. Despite supply chain constraints, a consistent
strategic portfolio and market diversification supported the continued outperformance of general market and economic
conditions.

Operating profit for the division increased to R209 million (FY2020: R173 million).

Restatements for the year ended 31 March 2020
The Group has restated its comparatives for the year ended 31 March 2020. It was noted that certain costs had been
included in distribution expenses and not in cost of sales. It was also noted that the method used to translate foreign
exchange gains and losses for the purposes of hyperinflation required correction. There was no impact on the
consolidated profit before or after tax, total earnings per share (basic and diluted), total headline earnings per
share (basic and diluted), net asset value of the Group, net asset value per share, or cash generated from operations.

The disposal of Oro Agri has been treated as a discontinued operation requiring certain changes to be made to the
comparative statement of changes in comprehensive income.

The presentation of the statement of changes in comprehensive income was enhanced to better reflect the effects of
hyperinflation and foreign exchange losses of the Group's Zimbabwean operations.

Disposal of Oro Agri
The effective date of the disposal is 7 January 2021. The Oro Agri group is consolidated into the Group's results until
the effective date and is accounted for as a discontinued operation in the statement of comprehensive income. Oro Agri
is excluded in the current year numbers presented and incorporated as a single line item. This also applies to the
comparative numbers to keep the readers of the financial statements informed about those operations which the entity
has discontinued and those operations which the entity is continuing with to generate future profits and cash flows.

SHORT FORM ANNOUNCEMENT - This announcement is a condensed version of the full announcement in respect of the audited
financial results for the year ended 31 March 2021 of Omnia Holdings Limited and its subsidiaries and, as such, it does
not contain full or complete details pertaining to the Group's results. The results have been audited by the company's
external auditor, PricewaterhouseCoopers Inc., who expressed an unmodified opinion. Shareholders are advised that, in
order to obtain a full understanding of the nature of the auditor's engagement and more specifically the nature of the
information that has been audited, they should obtain a copy of the auditor's report (available through the following
link: https://www.omnia.co.za/downloads/send/84-2021/306-audited-results-for-the-year-ended-31-march-2021. The auditor's 
report sets out a key audit matter, being the impairment assessment of non-financial assets, and the basis for the 
unmodified opinion together with the accompanying audited Group consolidated annual financial statements. Both documents 
are available for inspection at the company's registered office, 2nd Floor, Omnia House, Epsom Downs Office Park, 
13 Sloane Street, Epsom Downs, Bryanston, and the offices of Omnia's sponsor, Java Capital Trustees and Sponsors 
Proprietary Limited, 6th Floor, 1 Park Lane, Wierda Valley, Sandton, 2196, from 09:00 to 16:00 weekdays at no charge. 
Any investment decisions should be made based on the full announcement. The full announcement is available through 
the following link: https://senspdf.jse.co.za/documents/2021/JSE/ISSE/OMN/FY21.pdf and can also be found on the 
Group's website www.omnia.co.za or requested from Investor Relations at omniaIR@omnia.co.za. This condensed 
announcement is the responsibility of the board of directors of Omnia (the board) and has been approved.

Executive directors: T Gobalsamy (chief executive officer), S Serfontein (finance director)

Non-executive directors: R Havenstein (chair), Prof N Binedell, R Bowen (British), G Cavaleros, T Eboka, S Mncwango, 
T Mokgosi-Mwantembe, W Plaizier (Dutch), Z Swanepoel

Company secretary: M Nana

22 June 2021

Sponsor
Java Capital
Date: 22-06-2021 07:05:00
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