Santova Limited · JSE:SNV
Santova — Investor Presentation (May 2021)
24 slides from Santova's investor presentation, May 25, 2021
Slide 1: Investor Presentation
Investor Presentation 25th May 2021
Slide 2: The year under review
The year under review Five leading events that have changed the ‘way we think’ and how we will ‘do business’ going forward: BREXIT: The ongoing uncertainties, lack of consumer COVID-19: The COVID-19 pandemic disrupted global confidence and supply chain challenges continued to economies, and global t
Slide 3: Continuously focused on building operational efficiency
Continuously focused on building operational efficiency We have navigated our way to operational efficiency and greater diversification, building value per share Culture Technology Workflow processes and systems
Slide 4: A balanced profile of geographies
A balanced profile of geographies GEOGRAPHICAL ANALYSIS ASIA UNITED AFRICA EUROPE TOTAL PACIFIC KINGDOM Profit for the year 2021 R6 519 R19 344 R22 520 R22 749 R71 132 2020 R14 094 R11 337 R22 031 R18 798 R66 260 % YOY Growth -53,75% 70,63% 2,22% 21,02% 7,35% % Composition 9,16% 27,19% 31,66% 31,98%
Slide 5: High level industry indicators
High level industry indicators Focus on building a balanced, yet resilient business model
Slide 6: Santova's response to the pandemic
Santova’s response to the pandemic COVID 19 presented the Group with opportunities: Repositioning: The Group was decisive in the Focus on winners and being a winner: Despite the ‘repositioning’ of the business in the face of a ‘changed pandemic lockdowns and the economic downturn, there world’. A st
Slide 7: Three trends have been accelerated by COVID-19
Three trends have been accelerated by COVID-19 E-Commerce Outsourcing Automation A huge increase in online shopping (e- Outsourcing their supply chain activities Many companies recognized that the commerce) which will remain at a to specialists—particularly those with drive toward greater automation
Slide 8: Innovating to be 'relevant tomorrow'
Innovating to be ‘relevant tomorrow’ Financial Services Logistics Services Short-term insurance solutions from Efficient and effective forward and captive insurance products, profit share reverse flow and storage of goods facilities, risk transfer and risk globally. management programmes, to self- F
Slide 9: Regional Review
Slide 10: Africa
Africa • At the beginning of 2020 South Africa had entered a recession, and with the arrival of COVID-19, South Africa declared some of the toughest lockdown restrictions, both of which resulted in extremely tough economic times. • The manufacturing industry, the trade, catering and accommodation in
Slide 11: Europe
Europe • The Eurozone economy experienced tough trading conditions. From a first quarter contraction of almost 12%, it recovered to a 7% contraction by the end of 2020. • The United Kingdom’s GDP contracted by 9.9 %, their largest annual fall on record. • Albeit a challenging environment, our operat
Slide 12: Asia Pacific
Asia Pacific • Recovery in this region has been significantly faster than expected. From contracting by 2.2% in 2020, it is expected to grow by 6.9% in 2021. The rebound being powered by the trade of goods to and from developing countries, particularly East Asian economies. • On YOY basis, trade in
Slide 13: A positive outlook
A positive outlook • Roll out of vaccinations, an easing of lockdown measures, resulting in a rebound in global economies. • Pent-up demand due to accumulated savings/growing stock replenishment needs, could be stronger than expected. • A chaotic no-deal Brexit was avoided, both Britain and the Euro
Slide 14: Real GDP (Percent change from previous year)
Real GDP (Percent change from previous year) Prospects for the global economy are uncertain, and several growth outcomes are possible. In the baseline forecast, global GDP is expected to expand 4 percent in 2021 (Source: World Bank) It is likely that the delay in rolling-out vaccines in many regions
Slide 15: Financial Performance
Financial Performance
Slide 16: 2021 In Perspective
2021 In Perspective Key highlights: • Revenue and interest income increased 6.9% to R442.2mil • Offshore earnings increased to 91.0% • Net profit after tax increased 7.3% to R69.7mil • Debt to Equity decreased from 23.9% to 14.0% • HEPS increased 15.5% to 47.11 cps • NAV increased 19.9% to R4.39 per
Slide 17: 2021 Acquisitions
2021 Acquisitions One transaction concluded in 2021 49% acquisition of ASM Logistics (Thailand) • Currently limited to 49% with option to acquire 100% if Thai law changes • Equity accounted, not consolidated • Effective date : 1 March 2020 • Purchase price THB 2,52 million (R1,37 million) paid as fo
Slide 18: 2021 Statement of Profit or Loss: Analysis
2021 Statement of Profit or Loss: Analysis 2021 2020 Move R'000 R'000 % SA Billings (which represents 50% of Group billings being the only BILLINGS 4 463 487 4 341 750 2.8% region to incur customs VAT + duties) declined 11.8%. REVENUE 434 612 397 278 9.4% Africa segment 8.2% down, offshore (Asia Pac
Slide 19: 2021 Operating context: FOREX
2021 Operating context : FOREX 2021 2020 Movement Weighted R'000 R'000 % average Mvmt AVERAGE EXCHANGE RATES Primary Operating Currencies - GBP --> ZAR 21.31 18.63 14.4% 5.6% - EUR --> ZAR 19.08 16.23 17.6% 6.6% Weakening Rand against major operating - AUD --> ZAR 11.60 10.04 15.5% 1.3% currencies -
Slide 20: 2021 Statement of Financial Position analysis
2021 Statement of Financial Position analysis : Analysis 2021 2020 Move R'000 R'000 % Cash and cash equivalents 190 031 134 402 41% Increase in cash generated from operations with 92.7% of cash held offshore. Current tax assets 179 335 (47)% Deferred tax assets 14 197 11 768 21% Increase primarily d
Slide 21: 2021 Ratios
2021 Ratios 2021 2020 Move R'000 R'000 % Continued growth in offshore billings where customs duty and VAT is not - Billings/revenue margin 9.9% 9.5% 0.4% incurred on behalf of clients. For context in 2021 : SA 5.1% vs Offshore combined 12.7% Benefit realised from SA restructure and general ongoing t
Slide 22: 2021 Trade Receivables: Credit Quality Analysis
2021 Trade Receivables : Credit Quality Analysis 2021 2020 Movement R'000 % R'000 % % Trade receivables 591 768 100% 581 421 100% 1.8% Decrease in SA debtors aligned to generally lower levels of trading and increased - South Africa 385 117 65% 405 873 70% (5.1)% provision for credit losses Increase
Slide 23: 2021 Cashflow Analysis
2021 Cashflow Analysis 2021 R'mil CASH ON HAND 55.6 - 2021 190.0 - 2020 134.4 ANALYSIS OF MAJOR MOVEMENTS 51.2 Net cash generated from operations 149.7 7.7mil shares repurchased in the current year, total of 20.6mil shares cancelled Repurchase of treasury shares (32.4) on 19 May 2021 Warranty paymen
Slide 24: Thank you for your interest in Santova
Thank you for your interest in Santova