MOTUS

The South African operations contributed for the year, revenue and operating profit of 67% and 90% respectively, with the remainder being contributed by the UK, Australia and South East Asia.

The global and South African political and economic situations are unstable. The weakening of the global economy is weighing heavily on emerging markets and South Africa is bearing the brunt of these global issues. In addition, political challenges are exacerbating the economic problems for SA Inc. This has adversely impacted businesses and the people of South Africa.

South Africa finds itself in an era of political challenges, a lack of new jobs being created, uncertainty from economic policies, high interest rates, a volatile and weakening currency, and highly indebted consumers and government. This has all resulted in low consumer confidence with limited purchasing power and no economic growth. A recent statement from Moody’s suggests that a ratings downgrade by the agency from its current investment grade status to junk is highly probable. The Rand is vulnerable to further weakness and the unemployment rate has risen to 29%. Corporate governance and managerial failures at South African companies have negatively affected foreign investor perceptions of South African companies. The JSE continues to see foreigners sell off local equities, (R35 billion from January to June 2019), which is expected to rise in the foreseeable future in the event of a ratings downgrade.

The new vehicle market continues to be affected by the weak macro-economic environment in the country and the pressure on household disposable income. Industry margins could continue to underperform as consumers continue to delay purchases, trade down with the shift to cheaper vehicle models and place pressure on the quality of pre-owned vehicle supply.

The automotive industry remains highly competitive with technological advances and increasingly empowered consumers. As the connected consumer becomes more prevalent in the market, it is imperative to remain relevant to the needs of the digitised consumer. Changes to vehicle ownership structures in South Africa are imminent namely: ride sharing and car sharing type of businesses with people in search of economical, convenient, and sustainable ways to travel.

According to NAAMSA, South Africa retailed 542 373 units for the 12 months to 30 June 2019 (2,4% down from the prior year).

At June 2019 our Retail market share is 18,9% (June 2018: 19,9%) impacted by the Motus importers who reported reduced sales to car rental companies and the Retail and Rental business reporting a decline in volumes.

The UK market was down by 5,7% for the 12 months to June 2019. The market remains unstable and competitive, due to Brexit uncertainties and growing geopolitical tensions. Since Motus is a large DAF distributor, we maintain an advantageous position in the UK market as DAF vehicles are manufactured in the UK. The UK annual GDP growth rate is at 1,2% and is forecast to reach 1,5% in 2020.

The Australian automotive industry has faced tough market conditions and a downward sales trend. Tight financial lending and regulatory constraints have all contributed to challenging market conditions. The market declined by 7,8% for the 12 months to June 2019, with SUV vehicles continuing to dominate the market. Looking forward, the annual GDP growth rate in Australia is expected to reach 2,4% from 1,8%.

Our performance for FY2019 was resilient with an improvement in key financial metrics to June 2019. We are pleased with the broadly solid performance given the uncertainties in the markets in which we operate.

The Group’s passenger and commercial vehicle businesses, including the UK and Australia, retailed 131 725 new vehicles (2018: 146 455) and 83 554 pre-owned vehicles (2018: 81 123) during the year. The reduced sales are attributable to market contraction and reduced volumes to the car rental industry in South Africa, where the margins are lower. UK and Australia acquisitions continue to contribute positively to sales volumes.

South African annual unit vehicle sales declined by 2,4% as reported by NAAMSA. The market continues to experience a decline in sales of luxury vehicles, in favour of entry level vehicles and small to medium SUVs, as consumers continue to trade down due to affordability.

Revenue improved by 3,5% despite reduced sales volumes attributed to market contraction and the sales mix, enhanced by price increases and acquisitions. The revenue contribution from pre-owned vehicle sales increased by 11%. The selling of parts and rendering of services also contributed positively. The Import and Distribution segment reported a 3% decline in revenue with growth in operating profit of 3%, the Retail and Rental segment reported 3% growth in revenue with an operating profit decline of 6%, the Motor-Related Financial Services segment reported flat revenue with a 5% growth in operating profit and the Aftermarket Parts segment reported an increase in revenue and operating profit of 8% and 11% respectively.

For the Group and in the Aftermarket Parts segment, revenue for the prior year was restated to recognise that certain revenue raised relating to wholesale procurement arrangements as a principal, will now have to be excluded (parts ordered but delivered directly to customers). Under the revised revenue accounting standard, certain revenue of the operation will now be accounted for as an agent only. There is no impact on operating profit as the cost of sales was reduced by the same amount. The June 2018 revenue and expenses were reduced by R658 million.

Operating profit improved by 1% to R3 620 million. All business segments reported an increase in operating profit with the exception of the Retail and Rental segment. Operating expenses increased by 5%. Cost control initiatives during these economically challenging times remain a management focus.

A full reconciliation of earnings to headline earnings is provided in the financial performance section.

A final dividend of 250 (interim: 240) cents per ordinary share has been declared bringing the full year dividend to 490 (2018 pro forma: 444) cents per ordinary share. This represents a 10% increase from the prior year and is in line with our targeted pay-out ratio of 45% of normalised HEPS.

Net working capital increased by 13% to R7 580 million from a low base in June 2018 of R6 731 million. This increase is due to normalisation of working capital levels at the importers, as vehicle supply normalised. Higher inventory levels were carried at the dealerships mainly due to recent acquisitions and a slowdown in vehicle sales.

Motor-Related Financial Services' working capital increased, mainly due to lower trade payables relating to vehicles for hire. In the Aftermarket Parts segment, additional stock was carried due to the acquisitions and a wider selection of brands being introduced to capture lower-end consumers.

Net debt to equity is 56% (June 2018: 51%) which is within target levels of 55% to 75%. Debt (excluding floorplans) increased by 4% mainly due to working capital requirements.

Return on invested capital (“ROIC”) and weighted average cost of capital (“WACC”) remained in line with the prior year at 13,5% and 10,7% respectively.

We have not provided separate ROIC, WACC and net debt to equity ratios for each business segment as the business segments in the Group operate in an integrated manner, to optimise client offerings and market penetration with numerous cross-selling initiatives across the automotive value chain.

We generated R2 743 million cash from operating activities and after investing activities R1 749 million. This is down on the prior year mainly due to higher working capital requirements in the current year, partially offset by the lower investment in vehicles for hire. In addition, the prior year benefited from inflows relating to the sale of the Australian property.

Import and Distribution

Overview

The Import and Distribution segment provides a differentiated value proposition to the dealership model. 70% of our imported brand dealerships are owned by Motus and 30% are independently owned. We also supply to Europcar and Tempest (Motus rental divisions) and other independent rental companies.

Financial performance

	HY1 2019		%  change on  HY1 2018		HY2 2019		%  change on  HY2 2018		2019		2018		%  change on  2018
Revenue (Rm)1	9 783		1		9 166		(6)		18 949		19 501		(3)
Operating profit (Rm)	388		28		422		(13)		810		788		3
Operating margin (%)	4,0				4,6				4,3		4,0

1	HY1 and HY2 of 2018 as well as HY1 of 2019 have been re-presented due to a reallocation of certain eliminations that were previously in Head Office and Eliminations, but related to Import and Distribution revenue.

Revenue declined by 3% in line with the decline in sales volumes and the change in the mix of vehicles sold. The declined volumes are attributable to the lower number of vehicles sold to car rental companies during the year due to supply constraints and in an effort to maximise profitability through the dealer channel. In addition, the revenue decline is also due to revenue included in the prior year from businesses that have closed down.

Operating profit improved by 3% for the year mainly due to the higher gross profit margins as a result of competitive pricing, cost containment and lower losses on reduced car rental sales.

All four major importers in this segment performed well. The East African operations remain profitable.

Hyundai and Kia have forward cover on the US Dollar and Euro to March 2020, at average rates of R14,26 to the US Dollar and R16,51 to the Euro. As agreed between the shareholders, Renault does not take forward cover on committed orders, however, the creditor exposure raised on the statement of financial position is covered. With the exception of Renault, the current guideline is to cover a minimum of seven months’ orders and up to 75% of annual forecast orders, as stipulated by the South African Reserve Bank.

Retail and Rental

Overview

The Retail and Rental segment’s unrivalled scale and footprint of strategically located dealerships, largely in growing urban areas, underpins its leading market share. The retail market share for our South African operation is 18,9% compared to 19,9% in June 2018.

We supply a consistent superior route-to-market through quality marketing, high levels of customer satisfaction and strategically located dealerships, with a geographical spread in the economic hubs of South Africa. The selected international presence primarily in the United Kingdom and Australia complements the Group’s existing networks and provides opportunities to replicate aspects of our integrated business model. We operate a centralised Finance and Insurance model across the dealer network, which executes Group financial services strategies for the South African businesses.

United Kingdom (UK)

We are based mainly in provincial areas with a majority of our dealerships being commercial vehicles. Continued organic expansion in both Commercial and Passenger retail sectors will be considered in the UK. Further selective expansion in the UK will be driven by the introduction of additional brands in areas close to existing dealerships via bolt-on acquisitions.

Australia

We are based mainly in provincial areas with only passenger dealerships located in New South Wales and Victoria. Further selective expansion in the Australian market will be driven by the introduction of additional brands in areas close to existing dealerships via bolt-on acquisitions.

Financial performance

	HY1 2019		%  change on  HY1 2018		HY2 2019		%  change on  HY2 2018		2019		2018		%  change on  2018
Revenue (Rm)2	32 281		–		32 760		8		65 041		62 850		3
Operating profit (Rm)	816		–		762		(13)		1 578		1 687		(6)
Operating margin (%)	2,5				2,3				2,4		2,7

2	HY1 and HY2 of 2018 as well as HY1 of 2019 have been re-presented due to a reallocation of certain eliminations that were previously in Head Office and Eliminations, but related to Retail and Rental revenue.

Revenue improved by 3% despite lower sales volumes resulting from a declining market, but was assisted by acquisitions and pre-owned vehicle sales improving by 11% year-on-year. Operating profit declined by 6% mainly due to market contraction arising from pressure on consumer affordability impacting luxury branded vehicle sales. The acquisitions in the UK and Australia contributed positively to the revenue and operating profit of the business.

Worldwide Harmonised Light Vehicle Test Procedure (“WLTP”) has negatively affected sales volumes in the vehicle passenger business in South Africa, UK and to a lesser extent, in Australia, due to vehicles not being available for sale due to very strict homologation processes.

The South African Retail and Rental operating profit declined 2% from the prior year mainly due to market contraction affecting consumer affordability, the reduction in profitability of luxury branded vehicle sales and the decline in the car rental operating profit, offset by cost containment and turnaround processes in dealerships. The changes to leverage the expertise of our Finance and Insurance sales structure across the Retail vehicle segment provide a competitive advantage for the business. Higher volumes in entry level, small and medium SUV vehicle sales in South Africa have assisted profit margins, however, this was negatively impacted by the reduction in profitability of luxury branded vehicle sales.

Car rental revenue remained stable in an ever-increasing competitive environment, with declining tourism volumes and utilisation was maintained at 71%. Operating profit declined, mainly attributable to price competitiveness, costs of vehicles and the fleet mix. Management remains focused on reducing variable costs.

UK revenue improved by 19% due to increased sales volumes and revenue attributable to acquisitions. The UK operations have been affected by the political uncertainty arising from Brexit and sentiment in the market is negative. The DAF commercial and passenger dealerships performed well in a competitive market and remained profitable.

The Mercedes commercial business was negatively impacted by once-off restructuring costs, carbon emission issues resulting in a lack of inventory availability and therefore a reduction in variable margin and costing issues resulting in lower workshop profits. The prior year performance included the sales of the London Taxis, resulting in significant once-off income. During the year, the entire senior management team was replaced with new management having the capability to improve profitability of the business.

The revenue from the Australia operations increased by 8% for the year, notwithstanding the decline in the Australian vehicle market of 8% for the 12 months to June 2019. The Melbourne operation performed in line with expectations, while the Sydney business was negatively impacted by certain underperforming brands in the market and the relocation of a dealership and the Parts Distribution Centre.

Motor-Related Financial Services

Overview

Motor-Related Financial Services develops and distributes innovative vehicle-related financial products and services through importers, distributors, dealers, finance houses, call centres and digital channels. The segment is also a provider of fleet management services to corporate customers.

Innovation and unlocking customer potential within existing and new channels represent a significant growth and profit opportunity for the business. We have invested in technology to leverage consumer data, enabling us to offer personalised services, enhance the customer experience and improve customer retention.

This segment complements and leverages the automotive value chain, providing high-margin annuity earnings. The business’ ability to analyse proprietary data enables the accurate pricing of its offerings, profiling for the fleet business and management of claims.

Through its leading Service, Maintenance and Warranty plans, the segment unlocks revenue for the Import and Distribution and Retail and Rental segments, by bringing customers back to its dealerships.

Financial performance

	HY1 2019		%  change on  HY1 2018		HY2 2019		%  change on  HY2 2018		2019		2018		%  change on  2018
Revenue (Rm)	1 138		5		1 034		(4)		2 172		2 166		–
Operating profit (Rm)	482		3		455		9		937		889		5
Operating margin (%)*	42,4				44,0				43,1		41,0

*	Operating margin includes profit streams without associated revenue.

Revenue growth was stable which is attributable to increased service, maintenance and warranty products and higher client penetration through digital marketing of value-added products, offset by the lower rental income due to fewer vehicles rented to car rental companies.

Operating profit improved by 5% mainly due to the positive contribution from the realisation of profits on the maturity of the contract liabilities and lower operating expenses. Management remains focused on financial discipline and cost containment.

We continue to drive development of the fleet management business and building synergies within the vehicle retail businesses.

Aftermarket Parts

Overview

The Aftermarket Parts business’ national and growing footprint enables it to leverage its buying power to distribute and sell competitively priced products for a continually growing car parc of vehicles out-of-warranty.

Expanding into other developing markets constitutes a significant opportunity for this business. Increased participation in this segment will include vertical integration in order to eliminate intermediaries in the wholesale supply chain. The previous acquisition of the controlling interest in Arco in Taiwan supports this strategy and will ensure procurement at competitive prices. The business is looking to grow its South Asian business by setting up distribution centres in the region.

	HY1 2019		%  change on  HY1 2018		HY2 2019		%  change on  HY2 2018		2019		2018		%  change on  2018
Revenue (Rm)	3 259		8		3 183		8		6 442		5 974		8
Operating profit (Rm)	246		20		250		3		496		447		11
Operating margin (%)*	7,5				7,9				7,7		7,5

Revenue and operating profit increased by 8% and 11% respectively enhanced by the inclusion of Arco (Taiwan) as a subsidiary for the full financial year. This was partially offset by the lower demand for commoditised products and a shift by consumers from higher priced premium products to more affordable products in South Africa, reducing operating profit in South Africa.

Working capital was negatively affected, as a wider selection of brands was introduced to capture lower end consumers.

Group profit or loss (extract)

		2019  Rm		2018  Rm		%  change
Revenue		79 711		77 001		3,5
Operating profit		3 620		3 593		1
Profit on sale of properties, net of impairments (note)		15		617		(98)
Net foreign exchange losses		(14)		(43)		(67)
Net finance costs		(774)		(737)		5
Other		(77)		(220)		(65)
Profit before tax and IFRS 2 charge		2 770		3 210		(14)
Issue of shares at a discount to abroad-basedblack economic empowerment
partner (Ukhamba) and modification of share appreciation rights		(160)		–
Profit before tax		2 610		3 210		(19)
Income tax expense		(714)		(897)
Profit for the year		1 896		2 313		(18)
Attributable to non-controlling interests		(28)		33
Attributable to shareholders of Motus Holdings		1 868		2 346		(20)
Operating profit (%)		4,5		4,7
Effective tax rate (%)		27,6		28,3
Return on invested capital (%)		13,5		13,5
Weighted average cost of capital (%)		10,7		10,7

Note: The prior year includes the profit from the sale of the Australian property amounting to R616 million

Revenue increased by 3,5% including acquisitions and declined by 1% excluding acquisitions: Revenue improved by 3,5% despite a 5% decline in vehicle unit volumes (2019: 215 279 units; 2018: 227 578 units new and pre-owned), offset by price increases and acquisitions. The revenue contribution from the sale of pre-owned vehicles increased by 11% and the selling of parts and rendering of services also contributed positively.

Group operating profit: The operating profit improved due to an increase in gross profit, offset by a 5% increase in operating expenses.

Profit on sale of properties, net of impairments in the prior year includes the profit on sale of the Australia property of R616 million.

Foreign exchange losses relate only to items that do not qualify for hedge accounting. The current year losses are as a result of the uncorrelated movement between the fair value of the creditor and the corresponding hedge. The importers (Hyundai and Kia) are covered in terms of policy at favourable rates to March 2020.

Finance costs increased mainly due to an increase in working capital, increase in interest rate swap costs, offset by the decline in vehicles for hire.

The issue of shares at a discount to a Broad-Based Black Economic partner (Ukhamba) relates to the once-off costs of issuing unlisted deferred ordinary shares at a discount to their fair value (R141 million) and for the modification of share appreciation rights on unbundling (R19 million), totalling R160 million.

Profits attributable to non-controlling interests increased, mainly due to improved results in Renault and the inclusion of Arco as a subsidiary from March 2018 for the full financial year.

The effective tax rate decreased marginally, primarily due to the inclusion of the foreign businesses which are at lower tax rates and higher dividend income which is exempt from tax. This is partially offset by the once-off cost of the issue of shares to Ukhamba, at a discount, which does not qualify for a tax deduction and exceptional items of R80 million which mainly comprise impairments of goodwill and associates.

Reconciliation of earnings to headline earnings

		2019  Rm		2018  Rm		%  change
Earnings		1 868		2 346		(20)
Profit on disposal of assets		(28)		(711)		(96)
Impairment of goodwill and other assets		142		171		(17)
Profit on sale of businesses and other		(3)		(4)		(25)
Tax and non-controlling interests		(2)		189		(<100)
Headline earnings		1 977		1 991		(1)
Issue of shares at a discount to a broad-based black economic empowerment partner (Ukhamba) and modification of share appreciation rights		160		–		(>100)
Normalised earnings		2 028		2 346		(14)
Normalised headline earnings		2 137		1 991		7
Weighted average number of ordinary shares		196		202		(3)
Earnings and headline earnings per share
Basic EPS (cents)		953		1 162		(18)
Basic HEPS (cents)		1 009		986		2
Normalised EPS (cents)		1 035		1 162		(11)
Normalised HEPS (cents)		1 090		986		11

The proforma information contained in this announcement is the responsibility of the directors and has been inserted for illustrative purposes and due to their nature are not in accordance with International Financial Reporting Standards and may not fairly present the financial position of Motus.

Normalised EPS and HEPS are disclosed, as the adjustments made to arrive at these figures are once-off in nature with no cash flow impact. In the opinion of the directors normalised EPS and HEPS provide sustainable trading results. In addition, 45% of normalised HEPS was used to determine the dividend pay-out.

Financial position at 30 June 2019

		2019  Rm		2018  Rm		%  change
ASSETS
Goodwill and intangible assets		1 273		1 230		3
Property, plant and equipment		7 198		6 786		6
Investments in associates and joint ventures		258		348		(26)
Vehicles for hire		3 385		3 924		(14)
Investments and other financial assets		509		653		(22)
Net working capital (Note 1)		7 580		6 731		13
Other assets		1 178		917		28
Assets classified as held for sale		182		235		(23)
Net debt		(4 777)		(4 580)		4
Interest-bearing floorplans from financial institutions		(1 841)		(1 320)		39
Contract liabilities		(2 818)		(2 724)		3
Other liabilities		(270)		(535)		(50)
Liabilities held-for-sale		(19)		(21)		(10)
Total shareholders’ equity		11 838		11 644
Total assets		38 872		36 716		6
Total liabilities		(27 034)		(25 072)		8

Note 1: Working capital includes R5 619 million (2018: R4 597 million) floorplan creditors.

Factors impacting the financial position at 30 June 2019 compared to 30 June 2018

Goodwill and intangibles increased by 3% compared to June 2018, mainly due to the acquisition of dealerships in the United Kingdom and an acquisition in the Aftermarket Parts segment, partly offset by currency adjustments, impairments and a decrease in intangibles due to amortisation.

Property, plant and equipment increased by 6%, attributable to the acquisition of the dealerships in the UK and an expansion of the dealership footprint in South Africa.

Investments in associates and joint ventures reduced by 26% mainly due to the impairments of the Zimbabwean associates amounting to R56 million.

Vehicles for hire declined by 14% due to the decline in vehicles placed with car rental companies and the change in the mix of vehicles (owned versus leased).

Investments and other financial assets decreased by 22% predominantly as a result of impairments and the reduced investments in cell captives resulting from higher dividends paid out of prior year’s earnings. The higher dividends were based on the cell captive’s regulatory solvency calculations.

Net working capital increased by 13% mainly impacted by:

• An increase in inventory in the current year in the Import and Distribution segment. Working capital was lower in the prior year, due to inventory supply constraints from the manufacturers;
• The Retail and Rental inventory increase primarily due to dealership acquisitions in the UK and increased inventory levels in South Africa due to reduced sales; and
• The Aftermarket Parts working capital increased mainly due to the inclusion of Arco and the drive to increasing inventory availability to achieve wider brand representation and capture lower-end consumers.

Net debt (excluding floorplans) increased by 4% mainly due to:

• Working capital in the Import and Distribution segment increasing from prior year;
• Acquisitions in the Retail and Rental and Aftermarket Parts segments;
• Partially offset by lower vehicles for hire; and

Contract liabilities, mainly relating to service and maintenance plans, increased slightly.

The decrease in other liabilities by 50% is primarily attributable to the decline in current and deferred taxation liabilities.

In addition to attributable profits, shareholders’ equity was reduced by the:

• Repurchase and cancellation of shares during the year totalling R780 million;
• Dividend paid to the former parent company of R567 million; and
• Dividend paid to the Motus Holdings shareholders in March 2019 of R470 million.

Cash flow movements

Net working capital absorption, occurred mainly due to normalisation of working capital within the Import and Distribution segment and higher levels of inventory in the Retail and Rental and Aftermarket Parts segments. Working capital was significantly lower in the prior year, due to inventory supply constraints from the importer manufacturers.

The cash outflow on vehicles for hire is lower due to the Import and Distribution segment placing fewer vehicles with car rental companies and a higher portion of leased assets in the Retail and Rental segment fleet.

The cash outflow from businesses acquired is R358 million, relating mainly to the new dealerships in the UK and expansion of the dealership footprint in South Africa.

As a result of the above, Motus generated R1 749 million cash from operating and investing activities.

A dividend was paid to Imperial Holdings during September 2018 amounting to R567 million and an interim dividend amounting to R470 million to Motus shareholders since unbundling.

The change in non-controlling interest outflow relates to cash paid for the buy-out of non-controlling interests. The prior year’s inflow related mainly to the Renault recapitalisation.

Liquidity

The liquidity position is strong with R7,5 billion unutilised banking facilities. 61% of the Group debt is long-term in nature and 29% of the debt is at fixed rates. Excluding floorplans which can be seen as part of the working capital cycle, 39% of the debt is at fixed rates.

Dividend

A final dividend of 250 (interim 240) cents per ordinary share has been declared bringing the full year dividend to 490 (2018 pro forma: 444) cents per ordinary share. This represents a 10% increase from the prior year and is in line with our targeted pay-out ratio of 45% of normalised HEPS.

Board changes

Mrs KA Cassel joined the board as executive director with effect from 1 July 2019. The board welcomes Mrs Cassel and looks forward to her contribution.

Company Secretary change

Mr RA Venter resigned as Company Secretary at 30 June 2019 and Mrs JK Jefferies was appointed as Company Secretary with effect from 1 July 2019. The board would like to thank Mr Venter for his positive contribution and legal counsel during the past 15 years as part of Imperial Holdings Limited and recently with Motus. The board welcomes Mrs Jefferies and looks forward to working with her.

Strategy

We are well positioned to maintain our leading automotive retail market share in South Africa and grow in selected international markets. We aim to sustain best-in-class earnings, targeted returns and generate high free cash flows, providing a platform for a consistent dividend pay-out through the cycle.

We have a strategic focus on deepening our competitiveness and relevance across the automotive value chain, by driving organic growth through optimisation and innovation, and with selective acquisitions.

Prospects

The Group has produced solid financial results for the year under challenging trading conditions. South Africa’s socio-political and economic outlook is fragile which impacts sentiment, economic activity and the volatility of the Rand. Despite this, we anticipate solid operating and financial results for the year to June 2020, subject to stable currencies in the economies in which we operate and South Africa retaining its investment rating grade.

On behalf of the board we thank all the shareholders and stakeholders for their support. We will continue to execute on our strategies.

OS Arbee
Chief Executive Officer

OJ Janse van Rensburg
Chief Financial Officer

26 August 2019

The forecast financial information herein has not been reviewed or reported on by Motus’ auditors.

Declaration of final ordinary dividend

for the year ended 30 June 2019

Notice is hereby given that a gross final ordinary dividend in the amount of 250,00 cents per ordinary share has been declared by the board of Motus, payable to the holders of the 196 513 720 ordinary shares. The dividend will be paid out of reserves.

The ordinary dividend will be subject to a local dividend tax rate of 20%. The net ordinary dividend, to those shareholders who are not exempt from paying dividend tax, is therefore 200,00 cents per share.

The company has determined the following salient dates for payment of the ordinary dividend:

	2019
Last day for ordinary shares to trade cum ordinary dividend	Tuesday, 17 September
Ordinary shares commence trading ex-ordinary dividend	Wednesday, 18 September
Record date	Friday, 20 September
Payment date	Monday, 23 September

The company’s income tax number is 983 671 2167.

Share certificates may not be dematerialised/rematerialised between Wednesday, 18 September 2019 and Friday, 20 September 2019 both days inclusive.

On Monday, 23 September 2019, amounts due in respect of the ordinary dividend will be electronically transferred to the bank accounts of certified shareholders that utilise this facility. In respect of those who do not, cheques dated 23 September 2019 will be posted on or about that date. Shareholders who have dematerialised their shares will also have their accounts, held at their central securities depository participant or broker, credited on Monday, 23 September 2019.

On behalf of the board

JK Jefferies

Company Secretary

26 August 2019