OMNIA HOLDINGS LIMITED - Omnia Credit Rating Affirmed With A Positive Outlook By Global Credit Rating Co.

Omnia Credit Rating Affirmed With A Positive Outlook By Global Credit Rating Co.

OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1967/003680/06)
JSE code: OMN
ISIN: ZAE000005153
(“Omnia” or “the Group”)



OMNIA CREDIT RATING AFFIRMED WITH A POSITIVE OUTLOOK BY GLOBAL
CREDIT RATING CO.

As a result of Omnia’s improved financial profile and its continued solid business
performance, the rating agency Global Credit Rating Co. (“GCR”) has affirmed Omnia’s
long term rating of A- which is defined as “Investment grade - High credit quality.
Protection factors are good. However, risk factors are more variable and greater in periods
of economic stress”. Omnia’s short term-rating was affirmed at A1- which is defined as
“High grade - High certainty of timely payment. Liquidity factors are strong and supported
by good fundamental protection factors. Risk factors are very small”. The rating outlook
was upgraded from stable to positive.



The rating report also reflects the following views:

•   Omnia has benefited from an African expansion strategy, spurred by a strong demand
    for mining and agricultural commodities.
•   Omnia’s position as a leading domestic producer of mining explosives and fertiliser
    mining explosives, as well as industrial chemicals. This position was further enhanced
    by the recently completed nitric acid plant, which gives Omnia substantial local
    manufacturing capacity and supply stability. As this is at a much lower cost than
    imported nitrates, it provides an important competitive advantage.
•   The new nitric acid plant supported an increase in operating margin to 9% in FY13
    (FY12: 8%), albeit the full benefit has yet to materialise due to an unfavourable
    prevailing urea/ammonia price and some plant commissioning issues. The utilisation of
    pass though pricing has seen a decline in earnings volatility.
•   Robust demand for explosives and fertilisers, and favourable exchange rate
    movements has led to strong volume growth. This in turn resulted in a review period
    high for revenue in FY13. Combined with the firmer profit margins, operating profit also
    rose to a review period high of R1.3bn in FY13.
•   Credit protection metrics’ improved to review period bests with net gearing and net
    debt to EBITDA low at 12% and 19% respectively. Similarly, net interest coverage rose
    to 15 times in FY13.




Johannesburg
14 August 2013


Sponsor
One Capital




For more information contact Omnia Group:                      011 709 8850

Noel Fitz-Gibbon, Finance Director




Issued by Brunswick:                                           011 502 7300

Taryn Wulfsohn

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