Imperial Logistics — Imperial Holdings — FY2008 Earnings Presentation
23 slides from Imperial Logistics's earnings presentation, Aug 28, 2008
Slide 1: Audited results for the period ended 30 June 2008
28/08/2008 Audited results for the period ended 30 June 2008 Agenda Overview and group results Divisional results Strategy Conclusion 2 1
Slide 2: Salient features and key financial results
28/08/2008 Salient features Achieved all restructuring objectives, leaving a healthy balance sheet Headline earnings from continued operations of R1 143m down 49% HEPS from continuing operations down 49% to 615c Revenue increased 3% to R56bn despite consumer downturn Logistics excelled, especially i
Slide 3: Income from continuing operations
28/08/2008 Income from continuing operations Period to June (R million) 2008 2007 % Change Revenue 55 927 54 451 2.7 Operating profit 2 992 3 753 (20.3) Forex and fair value (losses) gains (349) 54 Primarily charges for Lereko and share trust and gain on capital repatriation 5 Income from continuing
Slide 4: Noteworthy minorities
28/08/2008 Income from continuing operations Period to June (R million) 2008 2007 % Change Revenue 55 927 54 451 2.7 Operating profit 2 992 3 753 (20.3) Forex and fair value (losses) gains (349) 54 Net finance cost (807) (478) 68.8 Income from associates 278 236 17.8 Tax (707) (1 008) (29.9) Profit
Slide 5: Balance sheet extracts
28/08/2008 Balance sheet extracts At 30 June (R million) 2008 2007 Intangible assets 897 1 238 Associates, investments and other financial assets 4 667 6 367 Main sources of reduction are discontinuation of SLF, Lereko and share trust loan impairment 9 Balance sheet extracts At 30 June (R million) 2
Slide 6: Balance sheet extracts
28/08/2008 Balance sheet extracts At 30 June (R million) 2008 2007 Intangible assets 897 1 238 Associates, investments and other financial assets 4 667 6 367 Property, plant and equipment 5 681 5 441 Transport equipment 4 751 3 801 Leasing assets 337 6 990 Unbundling and sale of Aviation 11 Balance
Slide 7: Balance sheet extracts (cont)
28/08/2008 Balance sheet extracts (cont) At 30 June (R million) 2008 2007 Shareholders’ funds 10 416 13 467 Reduction due to loss for the year, the 2007 dividend and R1.7 bn equity endowment to Eqstra 13 Balance sheet extracts (cont) At 30 June (R million) 2008 2007 Shareholders’ funds 10 416 13 467
Slide 8: Analysis of gearing
28/08/2008 Analysis of gearing At 30 June (R million) June 2008 June 2008 December June Pro forma 2007 2007 after sale of Tourvest Equity 10 416 10 916 12 303 13 467 Net debt 8 451 7 479 14 683 11 057 Net debt / equity 81% 69% 119% 82% 15 Significant once- once-off amounts in headline earnings Rm 15
Slide 9: Cash flow
28/08/2008 Cash flow For the period ended 30 June 2008 (R million) 2008 2007 Cash at the beginning of the year 2 788 1 630 Cash flow from operations 2 867 3 879 Acquisitions, disposals and unbundling 5 372 (462) Primarily the Eqstra unbundling 17 Cash flow For the period ended 30 June 2008 (R millio
Slide 10: Cash flow
28/08/2008 Cash flow Total Continuing Discontinued Cash generated by operations 5 689 3 633 2 056 Financing cost (1 426) (766) (660) Tax (1 396) (1 166) (230) 2 867 1 701 1 166 Net proceeds on unbundling, 5 372 146 5 226 disposals & acquisitions Capex (4 996) (2 612) (2 384) Net movement on investme
Slide 11: Divisional statistics; Logistics – International
28/08/2008 Divisional statistics Revenue Operating profit Insurance International International 5% Insurance Logistics Logistics 8% 14% 13% Dealerships 16% Dealerships SA Logistics 33% 17% SA Logistics 24% Car Rentals 5% Distributorships 26% Car Rentals 13% Distributorships Margins 26% % 15 12 9 6 3
Slide 12: Logistics – International and Southern Africa
28/08/2008 Logistics – International Key investment attributes Market leader in inland waterway traffic European freight growth is double GDP growth Significant handler of containerised freight in Ruhr district inland ports which account for 70% of Germany’s freight movement Container traffic is for
Slide 13: Logistics – Southern Africa; Car rental and tourism
28/08/2008 Logistics – Southern Africa Key growth strategy Individual Logistics Multiple Single Source Lead No Advanced Services Activities 3PL Contract Logistics/4PL Outsourcing Services (Non- (Integrated) Logistics Services Integrated) Planning & Forecasting Product and Information Flow 25 Car ren
Slide 14: Car rental and tourism; Distributorships
28/08/2008 Car rental and tourism Main strategic initiatives Tourvest sale – better focus Rebranding of Imperial Car Rental to Europcar Fleet optimisation and cost synergies Global product offering Tempest redefined True low cost provider Better asset utilisation through extension of vehicle life 27
Slide 15: Distributorships; Motor dealerships
28/08/2008 Distributorships Distributor of 22 international brands Comprehensive range of Asian and European passenger cars, light commercials and motor cycles Strong annuity income flow from New and used car maintenance and service plans Insurance and banking JV’s Towing Accident management Aircraf
Slide 16: Motor dealerships; Insurance
28/08/2008 Motor dealerships A very tough motor market Growth in sales of new passenger vehicles 30 70% 60% 20 50% 40% Growth (%) 10 30% 20% 0 10% Commercial 0% -10 Passenger 2006 2007 2008 -20 • Revenue from passenger vs -30 commercials shows a significant 97 98 99 00 01 02 03 04 05 06 07 08 substi
Slide 17: Capex by continuing divisions; Income from associates
28/08/2008 Capex by continuing divisions Period to June 2008 2007 Logistics 1 084 739 Car Rental 704 385 Distributorships 573 455 Dealerships 390 317 Insurance (9) 91 Income from associates Imperial Bank contribution up 2% to R206 million Good performance given high exposure to dealer based vehicle
Slide 18: Restructuring
28/08/2008 Strategy Restructuring Eqstra Unbundling completed in May R5bn in cash returned to Imperial Tourvest Payment of R1 067m on 8 September 2008 Exceptional profit of approximately R480m Aviation Air Contractors sold for Euro 22m Agreement signed (subject to CP’s) to sell Safair assets (includ
Slide 19: Restructuring (cont); Imperial's 3 pillars
28/08/2008 Restructuring (cont) CVH Closed and assets being sold Inventory units reduced by 50% Multipart Sold to management at a loss of £19m, due to inability to gain new business Insurance Merger of Regent Life and Regent Insurance complete Process and product reinvention is work in progress 65%
Slide 20: Strategy – Imperial's 3 pillars; Expansions
28/08/2008 Strategy – Imperial’s 3 pillars End Market Exposure Corporate/ Industrial Consumer LOGISTICS AND TRANSPORT CAR RENTAL MOTOR AND AND TOURISM FINANCIAL SERVICES Richer and wider Sharper Better and richer and capturing even more leading into related better of the retail value industries chai
Slide 21: Social investment and training
28/08/2008 Social investment and training BEE Impact of Ukhamba Holdings is still very positive R800m has been earned by current and former previously disadvantaged staff members of the group Based on the current share price, the benefits to Lereko have been reduced; possibility of recovery over nex
Slide 22: Outlook
28/08/2008 Outlook Low consumer spending to continue during 2009 financial year Conditions affect our consumer facing operations Logistics can better maintain margins and volumes European logistics will benefit from recent expansion Performance in year ahead to remain weak Benefits of restructuring
Slide 23: Annexure - discontinued operations
Annexure - discontinued operations Total Total Leasing and Leasing and discontinue discontinued Commercia Commercia Capital Capital Autoparts Autoparts d operations operations Tourism Tourism l Vehicles l Vehicles Aviation Aviation Equipment Equipment (UK) (UK) 30 June 25 June 30 June 25 June 30 Jun