Imperial Logistics — Investor Presentation (October 2018)
28 slides from Imperial Logistics's investor presentation, October 2018
Slide 1: Imperial Logistics Investor Presentation October 2018
Imperial Logistics Investor Presentation October 2018
Slide 2: Presentation overview
Presentation overview Imperial’s Proposed Imperial Logistics Unbundling Investor presentation
Slide 3: Imperial has grown into 2 distinct successful businesses
Imperial has grown into 2 distinct successful businesses Imperial today Business split: FY June 2018 (by reported revenue) • Started as single car dealership in 1948 in downtown Johannesburg 40% • Imperial Holdings has evolved into a multinational group ZAR51.4bn occupying market-leading positions i
Slide 4: Imperial's Proposed Unbundling: Transaction overview
Imperial’s Proposed Unbundling Transaction overview ▪ On 21 June 2018, Imperial announced that the Board had resolved to proceed with the steps required to implement the proposed unbundling of Imperial’s automotive business MOTUS (“Proposed Unbundling”) ▪ The Proposed Unbundling will be implemented
Slide 5: Rationale for the creation of two stand-alone listed entities
Rationale for the creation of two stand-alone listed entities VISION – To improve peoples’ lives by envisioning, VISION – Internationally acclaimed Tier One provider of innovating and creating new avenues of access to leading outsourced value-add logistics, supply chain management and edge mobility
Slide 6: Capital restructuring progress
Capital restructuring progress All capital restructuring processes are on track to achieve orderly completion ahead of separation in November 2018 Bonds Listed, perpetual preference shares Term debt • On 25 June 2018, Imperial announced intention to redeem • Imperial launched an offer to acquire its
Slide 7: Presentation overview
Presentation overview Imperial’s Proposed Imperial Logistics Unbundling Investor presentation
Slide 8: Evolution of Imperial Logistics
Evolution of Imperial Logistics Proven ability to acquire and develop capabilities to establish growth platforms in emerging and advanced markets 1975 – 1789 1990 – 1999 2000 – 2011 2012 – 2018 Secured specialised capabilities – in selected industries & regions to enhance service offering (including
Slide 9: Imperial Logistics at a glance
Imperial Logistics at a glance Integrated outsourced logistics service provider… …with diversified presence across Africa & Europe… Ranked in top 25 global Third Party Logistics Revenue EBITDA Invested capital1 (3PL) providers ZAR49.7bn ZAR3.8bn ZAR16.1bn (#15 for land-based revenue) #1 logistics pr
Slide 10: Key investment highlights
Key investment highlights 1 Leading positions in regional markets & selected industries 2 Competitive differentiation centred on agility & customisation 3 Trusted partner to multinational clients in attractive industries 4 “Asset-right” business model supports robust financial profile 5 Defined visi
Slide 11: Leading positions in regional markets & selected industries
Leading positions in regional markets & selected industries Leading market positions in South Africa, selected industries in African Regions & certain specialised capabilities in Europe South Africa Revenue by industry (1) ✓ Leading 3PL provider with end-to-end African capabilities South Africa Inte
Slide 12: Scale & operational agility
Scale & operational agility Significant mover of products & people South Africa African Regions International • 2.5 million CPG deliveries annually • Provide point of care & retailer level • 60 million tons of goods moved to more than 50 000 points in deliveries to >600 delivery by shipping business
Slide 13: Competitive differentiation centred on agility & customisation
Competitive differentiation centred on agility & customisation Specialised capabilities across the value chain enables customised & integrated solutions • Imperial Logistics is evolving its Maturity of the outsource relationship capabilities towards increasing its extent (scope) & integration (matur
Slide 14: End-to-end value chain in healthcare
End-to-end value chain in healthcare Providing end-to-end services across the healthcare value chain (between regional markets and continents) Driving patients’ access to affordable, quality assured medicines 2 Representative Retail kiosk (OTC) office & Quality control Control 15 Order 10 tower conf
Slide 15: Competitive differentiation centred on agility & customisation
Competitive differentiation centred on agility & customisation Service offering & operating model tailored to client requirements & market maturity 15
Slide 16: Trusted partner to multinational clients in attractive industries
Trusted partner to multinational clients in attractive industries Quality contract portfolio in high-growth & defensive industries Top 10 Revenue Average length Industry # of contracts # of countries Years or relationship clients contribution of contract Automotive Revenue 10 years 80+ 11 4 contribu
Slide 17: Vision & strategy
Vision & strategy Strategy focused on sustainable revenue growth, enhanced returns & improved competitiveness Imperial Logistics aspires to be an internationally acclaimed Tier One provider of outsourced Value-Add Logistics, Supply Chain Management & Route-To-Market Solutions - customised to ensure
Slide 18: Strategic initiatives to drive substantial organic growth
Strategic initiatives to drive substantial organic growth South Africa African Regions International • Retain & expand contracts with • Leverage unique ability to provide • Leverage specialised capabilities to existing clients through customisation, brand owners with access to strengthen client rela
Slide 19: "Asset-right" business model supports robust financial profile
“Asset-right” business model supports robust financial profile Prospects for sustainable revenue growth & enhanced profitability supported by improved asset composition & risk-adjusted targeted return on invested capital Revenue (ZARm) EBITDA (ZARm) x EBITDA margin3 46 194 49 679 8.9% 8.3% 7.9% 7.7%
Slide 20: Segmental financial overview
Segmental financial overview South Africa African Regions International 21% 33% 38% 21% 41% 46% % Total revenue FY18 % Total EBITDA FY18 % Total revenue FY18 % Total EBITDA FY18 % Total revenue FY18 % Total EBITDA FY18 Revenue 8.8% 15 140 20 471 21 366 23 054 x 14 666 14 548 16 218 16 374 9 868 10 2
Slide 21: Capital structure, key financial indicators and targets
Capital structure, key financial indicators and targets As at FY June 2018, Imperial Logistics and MOTUS have appropriate geared, independent and self-sustaining balance sheets FY18 Medium term target over 3 (%) years • Pursuant to more efficient capital and funding ILSA & ILI1: 2x GDP growth + stru
Slide 22: Enhanced financial flexibility & disciplined criteria
Enhanced financial flexibility & disciplined criteria… …underpinning acquisitive growth potential 1 Self-sufficient capital structure: Penetrate or protect existing markets • Bolt-on acquisitions focused on existing geographies / industries • Enhanced financial flexibility… • …with headroom for acqu
Slide 23: Highly differentiated strategy to digitisation & innovation
Highly differentiated strategy to digitisation & innovation underpins competitive advantage Digital vision: Create a culture where digitalisation enables people, clients & partners to innovate & continuously improve to achieve competitiveness & differentiation Imperial Logistics’ key digital objecti
Slide 24: Top five digitalisation & innovation projects
Top five digitalisation & innovation projects 1 Supply Chain 2 3 Serialisation of 4 5 Block Chain Sharehouse Mobile Solutions Control Tower products Provide mobile solution Provides a platform “Airbnb for for transport Deliver specific high Implement an end to warehousing space” for logistic service
Slide 25: Strong & committed leadership
Strong & committed leadership Highly experienced, long-serving management team & strong independent board Marius Swanepoel Mohammed Akoojee Chief Executive Officer Chief Executive Officer Designate 28 years of service 9 years of service George de Beer Cobus Rossouw Michael Lütjann Chief Financial Of
Slide 26: Annexures
Imperial’ way ~cRIALY eis
Slide 27: Trusted partner to multinational clients in attractive industries
Trusted partner to multinational clients in attractive industries Partnerships underpinned by reach, capabilities, assets, innovation & legitimacy Client Client 1 Client 2 Client 3 Client 4 Route-to-Market Synchronisation Transportation Transportation Capabilities Solutions Management Management Man
Slide 28: Trusted partner to multinational clients in attractive industries
Trusted partner to multinational clients in attractive industries Partnerships underpinned by reach, capabilities, assets, innovation & legitimacy Client Client 5 Client 6 Client 7 Client 8 Distribution Distribution Warehousing Warehousing Capabilities Management Management Management Management Ind
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