Imperial Logistics — Imperial Holdings — FY2010 Earnings Presentation
36 slides from Imperial Logistics's earnings presentation, 2010
Slide 1: Results Presentation for the year ended 30 June 2010
RESULTS PRESENTATION for the year ended 30 June 2010
Slide 2: Slide 2
Slide 3: Highlights
RESULTS PRESENTATION FOR THE YEAR ENDED JUNE 2010 Notes Highlights • Operating profit 34% up, interest 35% down, HEPS 40% up • Outstanding results in all divisions despite difficult economic conditions • Focus was on marketing, branding and product positioning • The combined motor divisions 90% up a
Slide 4: Highlights; Imperial has an excellent portfolio of businesses
Highlights* 40% HEPS 976 cents 102% EPS 1 015 cents 2% Revenue R53 438m 34% Operating profit R3 288m (operating margin 6,2%) 25% Cash flow from operating activities (pre capex) R3 020m Final dividend of 200 cents per share (2009: 120 cents) Full year dividends 350 cents per share (2009: 200 cents) *
Slide 5: Income statement
Income statement* Rm 2010 2009 % change Revenue 53 438 52 219 2% • Distributorships revenue was 33% higher due to marked increased unit sales • Revenue 7% lower in International Logistics under challenging trading conditions • Automotive Retail’s revenue was 7% lower due to a decline in commercial u
Slide 6: Income statement
Income statement Rm 2010 2009 % change Revenue 53 438 52 219 2% Operating profit 3 288 2 453 34% Foreign exchange gains and forex derivatives 11 392¹ 1. Foreign exchange gains in 2009 include R394m on capital repatriated from European operations 8 Notes Income statement Rm 2010 2009 % change Revenue
Slide 7: Income statement
Income statement Rm 2010 2009 % change Revenue 53 438 52 219 2% Operating profit 3 288 2 453 34% Foreign exchange gains and forex derivatives 11 392 Exceptional items and property recoupments 109 (356) Fair value adjustments and other 129 0 Relates mainly to a fair value gain on the Lereko call opti
Slide 8: Income statement
Income statement Rm 2010 2009 % change Revenue 53 438 52 219 2% Operating profit 3 288 2 453 34% Foreign exchange gains and forex derivatives 11 392 Exceptional items and property recoupments 109 (356) Fair value adjustments and other 129 0 Net financing costs (597) (923) (35%) Income from associate
Slide 9: Income statement
Income statement Rm 2010 2009 % change Revenue 53 438 52 219 2% Operating profit 3 288 2 453 34% Foreign exchange gains and forex derivatives 11 392 Exceptional items and property recoupments 109 (356) Fair value adjustments and other 129 0 Net financing costs (597) (923) (35%) Income from associate
Slide 10: Income statement
Income statement Rm 2010 2009 % change Revenue 53 438 52 219 2% Operating profit 3 288 2 453 34% Foreign exchange gains and forex derivatives 11 392 Exceptional items and property recoupments 109 (356) Fair value adjustments and other 129 0 Net financing costs (597) (923) (35%) Income from associate
Slide 11: Significant minorities' share of earnings; Performance vs H1
Significant minorities’ share of earnings Rm Midas International Logistics AMH SA Logistics Regent cell captive Regent other NAC Net minority earnings Increased from June 2009 Decreased from June 2009 Flat compared to June 2009 18 Notes Performance vs H1 of this year Rm H2 2010 H1 2010 % change H2 2
Slide 12: Capital management; Balance sheet
Capital management • Capital management disciplines are key to Imperial • It is now entrenched through all operational management levels • A standard dashboard is used and understood group-wide, measuring for every unit: - Operating performance - Asset management efficiency - Return on Invested Capi
Slide 13: Balance sheet
Balance sheet Rm Jun 2010 Jun 2009 % change Dec 2009 Property, plant and equipment 5 983 5 976 0,1% 5 946 Transport fleet 3 399 3 483 (2%) 3 557 Vehicles for hire 2 237 1 653 35% 1 809 Investments in associates and JVs¹ 1 190 2 334 (49%) 2 876 Other non-current assets² 4 017 3 039 32% 3 446 1. Decre
Slide 14: Balance sheet
Balance sheet Rm Jun 2010 Jun 2009 % change Dec 2009 Property, plant and equipment 5 983 5 976 0,1% 5 946 Transport fleet 3 399 3 483 (2%) 3 557 Vehicles for hire 2 237 1 653 35% 1 809 Investments in associates and JVs 1 190 2 334 (49%) 2 876 Other non-current assets 4 017 3 039 32% 3 446 Net workin
Slide 15: Lereko mobility; Changes in total shareholders' interest
Lereko mobility • Third party debt in respect of Lereko amounting to R856m is due on 1 Oct 2010 • 14,5m Preferred ordinary shares in Imperial and Eqstra will convert to ordinary shares on the same date • To fulfil its debt obligation Lereko has sold 8 million Imperial and 8 million Eqstra ordinary s
Slide 16: Interest bearing debt; Gearing
Interest bearing debt Rm Jun 2010 Jun 2009 % change Corporate bonds 6 447 7 301 (12%) Commercial paper - 1 336 Overdrafts and overnight funding 494 173 186% Other¹ 892 984 (9%) Gross debt² 7 833 9 794 (20%) Cash and cash equivalents 3 199 4 655 (31%) Net debt 4 634 5 139 (10%) 1. Secured and unsecur
Slide 17: Gearing; Cash flow
Gearing 17 251 14 683 11 599 Gross debt Net debt 8 451 9 794 7 833 54% 68% 5 139 4 634 from peak from peak Dec 2007 Jun 2008 Jun 2009 Jun 2010 Interest bearing debt (excl. prefs) Net debt (excl. prefs) • Balance sheet management focus 119% • Stronger than any time in the recent past 81% • Net debt/e
Slide 18: Cash flow
Cash flow Rm Jun 2010 Jun 2009 % change Cash flow from operating activities 3 020 4 053 (25%) Proceeds from Imperial Bank and prior year 1 374 1 340 discontinued operations Net acquisition of subs and businesses (415) (340) Expansion capex (incl. car rental assets) (963) (640) Net replacement capex
Slide 19: Divisional statistics; Southern African Logistics
Divisional statistics 4.9% 14.5% 18.7% 22.4% 28.1% SA logistics International Logistics 10.3% 11.5% Car Rental and Tourism 8.7% Distributorships 5.3% Automotive Retail 32.5% 11.6% 31.5% Insurance Revenue Operating profit Operating margin 7.4% 4.7% 13.4% 6.4% 2.3% 18.3% SA logistics International Car
Slide 20: Southern African Logistics
Southern African Logistics Revenue (Rm) Operating profit (Rm) +5% +3% 10 308 9 831 763 738 2010 2009 2010 2009 Operating margins 7.4% 7.5% 7.6% 7.2% 2010 2009 H2 2010 H1 2010 36 Notes Southern African Logistics • Revenue and operating profit up despite tough trading conditions • Transport and wareho
Slide 21: International Logistics – key locations; International Logistics (EURO)
International Logistics – some key locations Pohl Hamburg Pohl Berlin RBT Duisburg dbt Duisburg neska Düsseldorf neska Cologne Pohl Dresden uct Dormagen/ Pohl Cologne Neuss neska Bingen neska Mannheim 38 Notes International Logistics (EURO) Revenue (€m) Operating profit (€m) -7% +20% 604 651 30 25 2
Slide 22: International Logistics (ZAR)
International Logistics (ZAR) Revenue (Rm) Operating profit (Rm) -21% -7% 6 378 8 046 298 320 2010 2009 2010 2009 Operating margins 4.7% 4.0% 5.3% 4.0% 2010 2009 H2 2010 H1 2010 40 Notes International Logistics • Results exceeded expectations, German economy strongly rebounding • Revenue growth was
Slide 23: Car Rental and Tourism
Car Rental and Tourism 42 Notes Car Rental and Tourism Revenue (Rm) Operating profit (Rm) +12% +18% 2 941 2 618 395 336 2010 2009 2010 2009 Operating margins 13.4% 12.8% 15.1% 11.7% 2010 2009 H2 2010 H1 2010 43 Notes IMPERIAL HOLDINGS LIMITED Results Presentation for the year ended 30 June 2010 21
Slide 24: Car Rental and Tourism
Car Rental and Tourism • Real growth with revenue days 9% higher • Significant growth in the international, leisure and vehicle replacement business • The re-branding to Europcar, associated marketing spend and facilities upgrades brought numerous benefits and efficiencies in the business • Corporat
Slide 25: Distributorships
Distributorships Revenue (Rm) Operating profit (Rm) +33% +126% 17 372 13 112 1 110 491 2010 2009 2010 2009 Operating margins 6.4% 3.7% 7.5% 5.0% 2010 2009 H2 2010 H1 2010 46 Notes Distributorships • Division now includes Midas from 1 December 2009 • Excellent performance by AMH • Y-on-y new vehicle
Slide 26: Automotive Retail
Automotive Retail 48 Notes Automotive Retail Revenue (Rm) Operating profit (Rm) -7% +26% 15 543 16 691 351 279 2010 2009 2010 2009 Operating margins 2.3% 1.7% 2.3% 2.2% 2010 2009 H2 2010 H1 2010 49 Notes 24 IMPERIAL HOLDINGS LIMITED Results Presentation for the year ended 30 June 2010
Slide 27: Automotive Retail
Automotive Retail • Significant improvement over the prior year despite new commercial vehicle sales volumes being down – passenger sales volumes were inline with market growth of 2% • Recent good growth in passenger and LCV sales (H2 volumes were significantly up on H1) • Margins improved to 2,3% f
Slide 28: Regent
Regent Revenue (Rm) Operating profit (Rm) -5% +57% 2 694 2 847 493 315 2010 2009 2010 2009 Operating profit split 218 199 96 122 275 116 110 165 2010 2009 H2 2010 H1 2010 Adjusted investment income, including fair value adjustments Adjusted underwriting result 52 Notes Regent • Investment and underw
Slide 29: Operating profit by geography
Operating profit • Geographical segmentation: Continuing operations 11.4% 16.6% 5.5% 7.6% 75.8% 83.0% 2010 2009 SA Rest of Africa Europe 1. Rest of Africa decreased due to loss of insurance business in Botswana 2. Europe decreased largely due to currency translation 54 Notes Strategy and prospects N
Slide 30: Strategic principles and practices; Recent acquisition and investment activity
Strategic principles and practices Our principles … and practices Develop our people to be skilful, A competitive logistics product range confident and self motivating Throughout into throughout and into other South Africa Africa Europe markets Gain the respect of our customers, suppliers and princi
Slide 31: Prospects
Prospects • Diversification, further efficiencies, new contract gains, acquisitions and African expansion will be sources of growth for SA logistics • Industrial activity in our European target market showing strong signs of improvement • Investment in facilities and the improved efficiencies in Eur
Slide 32: 30 IMPERIAL HOLDINGS LIMITED Results Presentation for the year ended 30 June 2010
Notes 30 IMPERIAL HOLDINGS LIMITED Results Presentation for the year ended 30 June 2010
Slide 33: Notes
Notes
Slide 34: 32 IMPERIAL HOLDINGS LIMITED Results Presentation for the year ended 30 June 2010
Notes 32 IMPERIAL HOLDINGS LIMITED Results Presentation for the year ended 30 June 2010
Slide 35: Aince.motiv
Aince.motiv
Slide 36: Corporate Information
CORPORATE INFORMATION Non-executive directors TS Gcabashe(Chairman), T Dingaan, S Engelbrecht, P Langeni, MJ Leeming, JR McAlpine, MV Moosa, RJA Sparks, A Tugendhaft (Deputy chairman), Y Waja Executive Directors HR Brody (Chief Executive), OS Arbee, MP de Canha, RL Hiemstra, AH Mahomed, GW Riemann (