Santova Limited · JSE:SNV
Santova — Investor Presentation (June 2022)
24 slides from Santova's investor presentation, Jun 15, 2022
Slide 1: 2022 Analyst Presentation
International, Technology-Based Trade Solutions Specialist 2022 Analyst Presentation 15th June 2022
Slide 2: Introduction
Introduction Whilst 2020 was a turbulent introduction to a new decade, 2021 witnessed the prolonged impact of the pandemic. This resulted in a year of relentless global trade disruptions in the workforce, technological application, global economies, and international supply chains. However, the
Slide 3: Key differentiators remain in tact
Key differentiators remain in tact Culture & People Business Risk Global Clients Cloud Technologies A formidable Strategic diversification: diversification, Globalisation, unlimited Growth and intellectual entrepreneurial culture, vertical and horizontal growth in opportunities differentiati
Slide 4: Key performance indicators
Key performance indicators “ Whilst most businesses retreat, consolidate, conserve cash, and become Revenue up 40% internally focused Headline earnings per share up 169 % during challenging Return on equity up 25% periods, the Santova Group focused on preserving what works whist at the same time bui
Slide 5: Relentless navigation to operational efficiency
Relentless navigation to operational efficiency Drivers of operating leverage Culture Technology Workflow processes and systems
Slide 6: 2022 Volume and client spread
2022 Volume and client spread Africa Asia Pacific Europe United Kingdom TOTAL 2022 2021 % 2022 2021 % 2022 2021 % 2022 2021 % 2022 2021 % KG 2 983 176 1 756 648 70% 1 347 663 1 099 140 23% 3 754 161 3 112 575 21% 1 126 805 1 057 176 7% 9 211 805 7 025 539 31% AIRFREIGHT Files 7 486 6 222 20% 2 428 2
Slide 7: Turbulent global trading environment
Turbulent global trading environment Demand for goods surged in the second half of 2020 and into 2021, as consumers spent their money on goods rather than services during pandemic lockdowns and restrictions. Pent-up demand increased due to accumulated cash reserves and growing stock replenishmen
Slide 8: Industry challenges
Industry challenges Innovation, technology, and a skilled workforce, now come at a significant additional cost. Employees move into focus. Shortages of skilled workers, staff turnover and digitization make it necessary to rethink the world of work. Dramatic escalation in shipping rates transla
Slide 9: Groups response to a turbulent trading environment
Groups response to a turbulent trading environment Remained vigilant in strategic decision-making, direction, and operational activity. Invested in the continued integration, automation, and scaling of operations, such as internal workflow processes, systems and effective global ongoing support.
Slide 10: Future potential 'stumbling blocks'
Future potential ‘stumbling blocks’ The war in Ukraine, which has resulted in global tensions, particularly between the United States and China, all of which will continue to reshape the global economies. The financial shock from the war in Ukraine may also lead to a ‘faster-than-planned’ tighte
Slide 11: Africa
Africa The South African economy bounced back to growth of 4,9% in 2021 after a -6,4% contraction in 2020. However, during 2021, levels of economic activity continued to lag as headwinds to future growth remain. The impact of the pandemic and the civil unrest in July 2021, culminated in tough tr
Slide 12: Europe
Europe The Eurozone growth rate of approximately 5% in 2021 was a turnaround on the collapse of -6,4% in 2020. This growth was off the back of increased private consumption in the second and third quarters of 2021. Supply chain disruptions caused industrial production to decrease, yet new orders
Slide 13: Asia Pacific
Asia Pacific The Asia Pacific region remains the fastest growing region in the world. Although current growth is below historical averages of 7%, expansion in this region is still more than 5%. However, the revival has been uneven across countries and sectors. Whilst China, Indonesia, and Vietnam
Slide 14: Observations
Observations The logistics industry remains an exciting market to be participating in. Whereas the global logistics market was worth US$10 billion in 2021, it is expected to be valued at US$13 billion by 2027, which represents a compound annual growth rate of 5,7% over five years. (Allied Market
Slide 15: Going forward
Going forward Whilst currently the ‘wind is at our back,’ it remains critical for us to recognise the shipping lines’ strategy of vertical integration, which may pose a threat to a component of our industry's earnings. To hedge ourselves against this evolving competition, we need to continue our
Slide 16: Financial Review
Financial Review 2022 oe Vp
Slide 17: 2022 In Perspective
2022 In Perspective Key highlights: • Revenue and interest income increased 40.0% to R619.1mil • Offshore earnings of 82.6% • Net profit after tax increased 144,0% to R170.1mil • Debt to Equity decreased from 14.0% to 6.3% • HEPS increased 169.4% to 126.81 cps • NAV increased 27.3% to R5.59 per shar
Slide 18: 2022 Statement of Profit or Loss: Analysis
2022 Statement of Profit or Loss: Analysis 2022 2021 Move R'000 R'000 % BILLINGS 6 418 867 4 463 487 43.8% Increase in freight rates and file volumes across all regions. Growth in logistics revenue across all regions REVENUE 611 022 434 612 40.6% (Africa +26%, AP +27%, UK +44%, EU +51%) Net interest
Slide 19: 2022 Operating context: FOREX
2022 Operating context : FOREX 2022 2021 Movement Currency Weighted R'000 R'000 % exposure average Mvmt AVERAGE EXCHANGE RATES Primary Operating Currencies - GBP --> ZAR 20.36 21.31 (4.5)% 38.7% (1.7)% - EUR --> ZAR 17.35 19.08 (9.1)% 37.2% (3.4)% Strengthening Rand against major operating - AUD -->
Slide 20: 2022 Statement of Financial Position: Analysis
2022 Statement of Financial Position analysis : Analysis 2022 2021 Move R'000 R'000 % Cash and cash equivalents 270 805 190 031 43% Strong cash position with 95.1% of cash held offshore. Current tax assets 724 179 304% Deferred tax assets 15 155 14 197 7% Increase primarily due to Deferred Tax on al
Slide 21: 2022 Ratios
2022 Ratios 2022 2021 Move R'000 R'000 % Recovery of SA region where customs duty and VAT incurred on behalf of - Billings/revenue margin 9.6% 9.9% (0.3)% clients. With the substantial growth in revenue, the Group’s continued focus on - Operating margin 36.9% 22.0% 14.9% technology has allowed scala
Slide 22: 2022 Trade Receivables: Credit Quality Analysis
2022 Trade Receivables : Credit Quality Analysis 2022 2021 Movement R'000 R'000 % Trade receivables 733 212 591 768 23.9% Increase in SA debtors aligned to higher levels of trading and partially offset by - South Africa 392 182 385 117 1.8% credit insurance received on long outstanding debtor (R35m)
Slide 23: 2022 Cashflow Analysis
2022 Cashflow Analysis Santova H ON HAND - 2022 - 2021 ALYSIS OF MAJOR FLOW MOVEMENTS Net cash generated from operations Repurchase of treasury shares Settlement of contingent consideration Advance of medium term loans Settlement of medium term loans Capital expenditure - Intangibles Payment of leas
Slide 24: International, Technology-Based Trade Solutions Specialist
International, Technology-Based Trade Solutions Specialist