Santova Limited · JSE:SNV
Santova — Investor Presentation (June 2020)
40 slides from Santova's investor presentation, Jun 4, 2020
Slide 1: Investor Presentation
Investor Presentation 4 June 2020
Slide 2: A challenging trading environment
A challenging trading environment Global Economy GDP growth (2,4%), its slowest rate since global financial crisis a decade ago. United Kingdom Eurozone The UK avoided a recession despite seeing the Eurozone growth of 1,2% hit a seven-year low, dragged down by biggest year-on-year slowdown in nearly
Slide 3: Coronavirus
CORONAVIRUS The extent of the impact will be determined by the following: Asset or Non - Asset Based - Capital equipment, warehouses, commercial trucks and trailers. Industry Exposure - Apparel, alcohol, airlines and tourism severely impacted. Trade Lanes - Asia Pacific back to normal, they ar
Slide 4: Personal Protective Equipment
Personal Protective Equipment
Slide 5: High level performance of the Group
High level performance of the Group Resiliency is well portrayed by a 6,4% growth in profit, which is a turnaround of 19,7% from the reported decline of 13,3% for the six months ended 31 August 2019. The second six months benefited significantly from the initiatives that were implemented during the
Slide 6: Trade Volumes and Client Diversification
Trade Volumes and Client Diversification Africa Asia Pacific Europe United Kingdom 2020 2019 % 2020 2019 % 2020 2019 % 2020 2019 % KG 2 477 172 2 385 288 4% 1 788 268 917 562 95% 4 021 244 3 309 168 22% 835 924 796 072 5% AIRFREIGHT Files 3 795 5 146 -26% 2 551 - 1 907 34% 5 514 - 5 229 5% 2 422 - 1
Slide 7: A specialist in innovative global supply chain solutions
A specialist in innovative global supply chain solutions International Trade Advanced Supply Business Intelligence Value Add Services Services Chain Technologies Supply Chain Engineering Sourcing, development, Digital transformation, Santova global matrix implementation, analysis, enabling c
Slide 8: Global Footprint
Germany Santova Logistics Netherlands Hamburg Santova Logistics Frankfurt Schiphol Rotterdam China United Kingdom Santova Logistics Santova Logistics Hong Kong Tradeway Shipping Mainland China SAI Logistics London Milton Keynes Thailand Birmingham ASM Logistics Manchester Bangkok Leeds Vietnam ASM L
Slide 9: Key differentiators
Key differentiators Leadership Business Risk Clients Cloud Technologies A formidable Global diversification: Globalisation, unlimited Growth and entrepreneurial culture, currency, geographical, growth in opportunities intellectual effective hands-on multiple industries, and target markets di
Slide 10: Industry analysis
Industry analysis
Slide 11: Santova Industry
AVERAGE ANNUAL GROWTH RATE Revenue, Operating profit, Profit after tax, Cash generated by operations (AAGR) 2015 - 2020 10,0% oom il I l | l = =n l =n I -10,0% ——Santova Mit Supergroup Value Group Dv CH Robinson Expeditors __ Kuehne & Agility Nagel REVENUE MOP PAT MCASHGEN BY OPS Net Profit per Empl
Slide 12: Operational efficiency - effectiveness
Operational efficiency - effectiveness
Slide 13: Technologies that are re-shaping the industry
Technologies that are re-shaping the industry The Internet The Cloud Blockchain Data Analytics Robotics & Automation The Internet of Things Enabling new Enhanced supply chain Process of inspecting, Reduction in human workforce (IOT): Interconnection via platform-based security, reduction in cleansin
Slide 14: Technological advancements
Technological advancements TradeNav Santova Mobile APP Santova Express SUREcargo
Slide 15: TradeNav
TradeNav TradeNav Santova’s unique sophisticated suite of software packages (cloud-based system) that interface with client systems whilst at the same time providing clients with web-based control. This has facilitated the Internet of Things (IOT) which offers businesses the ability to transfer data
Slide 16: R/KG Logistics Cost Reduced by 25%
19 uw as as R/KG Logistics Cost Reduced by 25% SA FREIGHT CALCULATED SAVINGS a7 Sept-Nov Jan-June Jul Aue 2013-2014 Total Logistics Spend sep Oct Monthly Nov Dec original cost Trajectory w R600 Zz a 6 R500 G 5 R400 Z = R300 s R 2.00 56 R Lo a 74 FY2014 FY2015 FY2016 FY2017 FY2018 m Consolidation Sav
Slide 17: Santova Mobile APP
Santova Mobile APP Santova APP A client facing mobile application and latest supply chain management tool. The App is directly linked to TradeNav and assists in unlocking supply chain data, enabling visibility, transparency and accurate real time tracking functionality. The App is now available on b
Slide 18: Santova Mobile Application
<) Santova Mobile ZI Application € Shipment Details — = ipment Details Notifcati Location e70-8 412019 Depart rom Hamburg ih Deng Terminal esr tec 10070800020 - : Terminal rv at Binh Duo ~ rest 90007 0ST staan Trenance 717 eprom Ba oem? shipment number Z : 7 DEFRA ~~ May 2019
Slide 19: Santova Express
Santova Express Santova Express An advanced technological courier software solution offering automated functionality from on- line booking through to final delivery, including full track and trace features and customizable customer web portal in select cases.
Slide 20: Santova Express booking portal
Search Quote» Book: Exports» © My Bookings Pickup Manager Addresses. = Users. Reports ~ Addresses | Consignment Dimensions & Weight _ Services v Package details Total number of items Length (em) Wrath (em) Height (em) tems" total weight (ka) 1 ¥ Quote details Pomeauiog: (Remned a Contents ype? | Non
Slide 21: SURECargo
SURECargo SUREcargo An advanced technological development providing an internet or online, on- demand cargo insurance portal allowing users to seamlessly apply for instantaneous insurance cover for any mode of transport including road, air, sea, rail and multimodal. The portal can be used by insuran
Slide 22: Most importantly … Scalability
Most importantly … Scalability Data Analytics By reducing non-revenue generating tasks, which are mostly manual, through the The Internet The Cloud automation of most administrative tasks or Robotics & Automation work-flow processes, we will be offered the time to leverage off client-centricity and
Slide 23: Financial Results
Financial Results
Slide 24: 2020 In Perspective
2020 In Perspective • 2020 offered encouraging results achieved through a globally diverse portfolio of companies, enabled by both organic and acquisitive growth. • The Group’s strategy to build a diversified, global business provided a hedge against the general regression of the SA economy and its
Slide 25: 2020 Acquisitions
2020 Acquisitions One acquisition completed in 2020 • MLG Maritime Logistics (Germany) • Acquired 100% effective date 1 March 2019 • Total purchase price – € 1,9million • Total goodwill – € 1,2 million • Funded through • € 500k cash • € 740k short term loan from the seller • 2 year warranty period •
Slide 26: 2020 Operating context : FOREX
2020 Operating context : FOREX 2020 2019 Movement Weighted R'000 R'000 % average AVERAGE EXCHANGE RATES Primary Reporting Currencies - GBP/ZAR 18.63 17.82 4.5% 1.8% - EUR/ZAR 16.23 15.76 3.0% 0.9% Impact resulting from the translation of foreign - AUD/ZAR 10.04 9.92 1.2% 0.1% operations - HKD/ZAR 1.
Slide 27: 2020 Statement of Profit & Loss : Analysis
2020 Statement of Profit & Loss : Analysis 2020 2019 Move Excluding R'000 R'000 % Acquisitions BILLINGS 4 341 750 4 220 581 2.9% (0.7)% 5% decline in SA billings offset by growth in offshore operations 1% decline in SA revenue offset by growth in acquisitions and offshore REVENUE 413 826 342 234 20.
Slide 28: 2020 Geographical : Analysis
2020 Geographical : Analysis AFRICA ASIA PACIFIC UK EUROPE R'000 R'000 R'000 R'000 BILLINGS 2020 2 383 897 334 286 928 214 687 205 Movement -5% 31% 17% 5% Weak SA economy, +15.9% - ASM acquisition normalised +11.8% - SAI acquisition normalised -5.7% - excl Maritime acquisition Lower trade volumes HK
Slide 29: 2020 Statement of Financial Position analysis
2020 Statement of Financial Position analysis : Analysis 2020 2019 Move R'000 R'000 % Trade & other receivables 636 943 651 598 (2)% Intangible assets 297 176 253 344 17% R24.4mil goodwill on acquisition of Maritime, R16.1mil forex gain on goodwill Cash and cash equivalents 134 402 89 801 50% Result
Slide 30: 2020 Trade Receivables : Credit Quality Analysis
2020 Trade Receivables : Credit Quality Analysis 2020 2019 Movement R'000 % R'000 % % Trade receivables 581 421 100% 607 663 100% (4.3)% - South Africa 408 216 70% 457 518 75% (10.8)% Decrease in SA debors book aligned to increase in offshore operations - Offshore 173 205 30% 150 145 25% 15.4% Key r
Slide 31: 2020 Cash Flow : Analysis
2020 Cash Flow : Analysis 2020 R'mil RECONCIALLIATION OF CASH GENERATED Net cash generated from operations 109.2 Net profit after tax 65.0 Difference 44.2 KEY WORKING CAPITAL MOVEMENTS 41.3 Inflow/(outflow) from Trade Receivables 10.2 Inflow due to SA book downtrading, and Africa 15.9 improvement in
Slide 32: Santova's Business Model
Santova’s Business Model Example of impact of Working Capital on Cash generated from operations SANTOVA Comparative Group Company R'000 R'000 * Where customs Duties & VAT are not Contractual relationship Agency basis Principal basis * funded on behalf of clients Billings 4 341 750 413 826 Revenue 41
Slide 33: 2020 Cash on Hand : Analysis
2020 Cash on Hand : Analysis 2020 R'mil CASH ON HAND 44.6 - 2020 134.4 - 2019 89.8 ANALYSIS OF MAJOR MOVEMENTS 41.2 Net cash generated from operations 109.2 Repurchase of treasury shares (12.5) 5.9mil shares repurchased Payment of financial liabilities (14.0) First ASM (Singapore) and SAI (UK) warra
Slide 34: Focus going forward
+ ote -9- goifig. =: Focus
Slide 35: Focus areas going forward
Focus areas going forward Client Centric Innovative Growth Economic Advanced Engagement Zones Technologies Strategic New Offices The engagement of Building Intra-Asia- Leveraging off cloud- Establishing a presence professional employees Pacific economic trade based technology, in strategic locations
Slide 36: Asia Pacific economic zone
Asia Pacific economic zone Post Brexit, UK open growth strategies will build trade lanes with India, China, SE Asia and Japan. China ASEAN GDP growth rates expected to remain around 6.0% in 2020/21. Hong Kong The United States and European Union remain significant trading partners with the ASE
Slide 37: Africa as an economic growth zone
Africa as an economic growth zone Growing middle class and increasingly sophisticated consumers. 8 of the 15 fastest growing economies globally come from Africa. GDP growth in Africa is projected to reach 3.2% (2020) and 3.5% in 2021. Africa 25 African countries are projected to achieve econ
Slide 38: Future strategy
Future strategy Tough environment yet we are well poised to take on the challenge for growth Global trade wars and tensions will continue to interrupt global trade. The European economy has declined as Brexit concerns continue to weigh heavily on European sentiment. With the arrival of Coronav
Slide 39: In concluding, building shareholder value
Building shareholder value In concluding, We believe profits or share price are not necessarily a reflection of value, value per share is, particularly from a South African listed environment perspective. In this regard, we will continue to focus on building value per share by; Focusing on strong
Slide 40: Thank you
Thank you CONFERENCE for your interest in Santova and for your continued support. PRESENTATION Presenter Name | Date