Imperial Logistics — FY2020 Earnings Presentation
61 slides from Imperial Logistics's earnings presentation, 2020
Slide 1: Investment community presentation
Investment community presentation
Slide 2: Agenda
Agenda Overview Covid-19 & operating context Key industry trends Operating performance Financial review Strategy Looking ahead Imperial beyond possibility
Slide 3: Overview
Overview —_ Oz = 2 ®2 om €: a
Slide 4: Our purpose
Our purpose Imperial’ ‘ fpr op PEO le’s | ee aN , qv Oy yt AEN 7 / Le As w= he Se AF = 2s
Slide 5: Key features
Key features Imperial’ beyon bility Continuing revenue Continuing EBITDA Continuing operating profit R46.4 billion R4.1 billion R1.5 billion (20% increase in depreciation & impairments) Continuing HEPS Continuing free cash flow per share of — Net debt:EBITDA (post European shipping proceeds) 156 cps
Slide 6: Overview
Overview Imperial” * We are managing the business in a time of great uncertainty & volatility * Despite challenging trading conditions, exacerbated by Covid-19, Imperial: » recorded significant strategic progress >» increased revenue from continuing operations - H1 up 4%; Q3 up 9%; Q4 down 7% (exclu
Slide 7: Overview
Overview Imperial” bility Effective 1 July 2020 Imperial operates within two overarching solutions - market access & logistics » three businesses: Market Access, Logistics Africa & Logistics International Market Access delivered a resilient performance - grew revenue by 18% & decreased operating pro
Slide 8: Overview
Overview • • • › › • › › • • › • › • • • •
Slide 9: Covid-19 & operating context
Covid-19 & operating context
Slide 10: Operating context - Covid-19
Operating context - Covid-19 • › › › • › › › • › › - › › ›
Slide 11: Navigating the impact of Covid-19
Navigating the impact of Covid-19 • • › › › • › › › › •
Slide 12: Playing our part
Playing our part • › • • • • • • • • • •
Slide 13: Preparing our business for a post-pandemic world
Preparing our business for a post-pandemic world
Slide 14: Key industry trends
Imperial: beyond possibility Key industry trends
Slide 15: Revenue split by key industry for continuing operations %
Revenue split by key industry for continuing operations %
Slide 16: Group revenue variance YOY by industry - showing the impact of Covid-19
Group revenue variance YOY by industry - showing the impact of Covid-19
Slide 17: Key industry trends & context
Key industry trends & context • • • • • • • • • • • • › •
Slide 18: Key industry trends & context
Key industry trends & context • • › • • • • • • • •
Slide 19: Key industry trends & context
Key industry trends & context • • •
Slide 20: Operating performance
Imperial: beyond possibility Operating performance
Slide 21: Business overview
Business overview • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 22: Group revenue & operating profit per business line
Group revenue & operating profit per business line
Slide 23: Growth trend: Market Access
Growth trend: Market Access • • • • • • •
Slide 24: Growth trend: Logistics Africa (incl South Africa)
Growth trend: Logistics Africa (incl South Africa) • • • • • • • •
Slide 25: Growth trend: Logistics International (Euro) – excl. European shipping
Growth trend: Logistics International (Euro) – excl. European shipping • • • • • • • •
Slide 26: Growth trend: Logistics International (Rands) - excluding European shipping
Growth trend: Logistics International (Rands) - excluding European shipping • • • • • • •
Slide 27: Financial review
Imperial: beyond possibility Financial review
Slide 28: Maintaining a sound financial position
Maintaining a sound financial position • › › › › › • › › • • › •
Slide 29: Impact of Covid-19 on results
Impact of Covid-19 on results
Slide 30: IFRS 16 lease adoption
IFRS 16 lease adoption • • • • • • • • •
Slide 31: The impact of IFRS 16 lease adoption on financial reporting
The impact of IFRS 16 lease adoption on financial reporting
Slide 32: Profit & Loss (continuing operations)
Profit & Loss (continuing operations)
Slide 33: Profit & Loss (continuing operations)
Profit & Loss (continuing operations) › › ›
Slide 34: Financial position
Financial position Jun 2020 Jun 2019* Rm Rm % Change Property, plant & equipment 3 326 2 647 26 Transport fleet 5 186 5 309 (2) Right-of-use assets 5 422 4780 13 Goodwill & intangible assets 7 084 6719 5 Investments in associates, other investments & other financial assets 469 745 (37) Net working c
Slide 35: Financial position
Financial position › › › › › › › › › › › › ›
Slide 36: Cash flow operating activities (total Logistics, excluding Motus)
Cash flow operating activities (total Logistics, excluding Motus) ›
Slide 37: Cash flow summary (total Logistics, excluding Motus)
Cash flow summary (total Logistics, excluding Motus)
Slide 38: Leverage
Leverage Imperial’ NET DEBT TO EBITDA USED FOR BANK COVENANT CALCULATION EXCLUDING IFRS 16 2.6 1.6 14,892 15 15 12,634 11,571 11,666 8 5 g 5 iN > xe) 2 8 = Es q 8 H1 2018 2019 mam |FRS16 28 2.0 16 14,471 12,560 11,031 = 5 B =) 3 + N & io H1 H2 POST EUROPEAN SHIPPING DISPOSAL 2020 Bank funding net of
Slide 39: Group performance against medium term guidance
Group performance against medium term guidance
Slide 40: Strategy
Strategy —_ Oz = a ® 3: (om: =) a
Slide 41: Strategic positioning recap
Strategic positioning recap • • • › › • • •
Slide 42: Africa footprint
Africa footprint Imperial’ beyond possibility Niger @ in-country operations @ Countries serviced through partnership network @ Pharmaceutical & consumer health distributors Consumer packaged goods distributors oun en @ sourcing & procurement
Slide 43: The 6 pillars of our business strategy
The 6 pillars of our business strategy • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 44: Progress against strategy
Progress against strategy • › › - › › › › • • • › › › › › •
Slide 45: How our strategy addresses our challenges & progress made
How our strategy addresses our challenges & progress made • • • • › › • › • › • • • • • • • •
Slide 46: How our strategy addresses our challenges & progress made
How our strategy addresses our challenges & progress made • › • › • › • • • • • • • • • • • •
Slide 47: How our strategy addresses our challenges & progress made
How our strategy addresses our challenges & progress made • • • • • • • • • • • • • • › › › › › › › ›
Slide 48: How our strategy addresses our challenges & progress made
How our strategy addresses our challenges & progress made • • • • • • • • • • • • • • • •
Slide 49: Looking ahead
Imperial: beyond possibility Looking ahead
Slide 50: Guidance for F2021
Guidance for F2021 • › › › • › › › › • › •
Slide 51: Thank you
Thank you www.imperiallogistics.com
Slide 52: Appendices
Imperial: beyond possibility Appendices
Slide 53: Our investment proposition
Our investment proposition • • • • • • • • • • •
Slide 54: Our solutions: market access
Our solutions: market access • • • • • • • • • • • • • •
Slide 55: Our solutions: logistics
Our solutions: logistics • • • • • • • • • • › › ›
Slide 56: End-to-end value chain
Imperial’ beyond possibility Air & ocean Retail services demand generation Raw nods © (&). Air & ocean; i 7 sourcing & procurement Formal retail Informal retail Air & ocean; sourcing & procurement Retail services Packaging @D demand generation Air & ocean; sourcing & procurement ) Consumer Consumer
Slide 57: Geographic footprint
Geographic footprint Imperial’ beyond possibility i? @s © In-country operations Be, : © Countries serviced through partnership network & . Pharmaceutical & consumer health distributors ® Consumer goods distributors ® Freight management ® Sourcing & procurement
Slide 58: IFRS 16 lease adoption
IFRS 16 lease adoption • • • • • › • › • • • •
Slide 59: IFRS 16 impact on F2020 continuing operations
IFRS 16 impact on F2020 continuing operations
Slide 60: Secondary segment for the year ended 30 June 2020
Secondary segment for the year ended 30 June 2020
Slide 61: Disclaimer
Disclaimer Imperial” beyond possibility Certain statements made in this presentation constitute forward-looking statements. Forward-looking statements are typically identified by the use of forward-looking terminology such as ‘believes’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘intends’, ‘estim