Slide 1: Investor Analyst Presentation
Australia Germany INVESTOR Hong Kong ANALYST Mauritius Netherlands PRESENTATION Singapore Presented by: Glen Gerber (CEO) South Africa and James Robertson (GFD) United Kingdom www.santova.com United States Vietnam 5 June 2024
Slide 2: The Santova Group is an international, technology-based trade solutions specialist
The Santova Group is an international, technology-based trade solutions specialist, delivering innovative end-to- end supply chain solutions.
Slide 3: Logistics is just one component of the supply chain
Although many people equate the supply chain with logistics, logistics is actually just one component of the supply chain. Today’s digitally based supply chain management systems include material handling and software for all parties involved in the movement of product, order fulfillment, and inform
Slide 4: Our Proposition
OUR PROPOSITION Our supply chain specialists assist clients in streamlining their global supply chains. They work with senior directors and management to identify ‘best practice’ regarding the entirety of a business's supply chain operations. Determining a client’s Diagnosing issues and Suggesting i
Slide 5: Stakeholders & Diversification
STAKEHOLDERS & DIVERSIFICATION
Slide 6: Review of the Year
REVIEW OF THE YEAR The period ending 29 February 2024 was not plain sailing. Profit for the year declined 30,1% from R210,7 million to R147,3 million. The rapid decline in shipping rates saw revenue reduce by 4,5% (R30,2 million) Significantly higher corporate tax - South Africa with its highe
Slide 7: Profit by Region
PROFIT BY REGION March 2023 – February 2024
Slide 8: Africa
AFRICA While 2023 was a good start for our South African operations, it still faced considerable challenges. Amid global economic challenges, SA faces specific issues such as inadequate maintenance and insufficient infrastructure investment. These issues, together with a shift from rail to road and
Slide 9: Europe and the United Kingdom
EUROPE AND THE UNITED KINGDOM After a period of good earnings growth from the scarcities and bottlenecks of the pandemic era, the market returned to pre-pandemic levels in these regions. Across all modes of transit, shipper demand and carrier capacity rebalanced, and inventories reverted to normal.
Slide 10: North America
NORTH AMERICA Our newly acquired third-party logistics business, A-Link Freight in Los Angeles and our "grassroots" operations in Chicago, continue to make progress towards breaking even. However, the process and time taken to secure the regulatory approvals necessary to start trading in the new US
Slide 11: Asia Pacific
ASIA PACIFIC Whilst our operations in Singapore have struggled with structural changes involving a change in leadership as well as a shift in strategy to build direct client business, the region’s earnings were adversely impacted by a slow-down amid subdued demand in China. In Australia, earnings we
Slide 12: New Client Revenue by Region
NEW CLIENT REVENUE BY REGION March 2023 – February 2024 A hedge in economic slowdowns, a significant ‘booster’ in economic upturns
Slide 13: Client & Transaction Analysis
CLIENT & TRANSACTION ANALYSIS March 2023 – February 2024
Slide 14: Global Client Distribution
GLOBAL CLIENT DISTRIBUTION Mar 2023 – Feb 2024
Slide 15: Global Trade Information
GLOBAL TRADE INFORMATION ROAD
Slide 16: Shareholder Return
SHAREHOLDER RETURN Building value per share. Should cash flows allow, we will continue balancing buying back own shares when the share price is low versus making strategic acquisitions. ■ Culture and Values of the Group ■ Headline earnings per share (HEPS) ■ Return on average shareholders’ funds ■ O
Slide 17: Strategic Positioning of Operations
STRATEGIC POSITIONING OF OPERATIONS Ensure we have the right people (attributes, skills, knowledge, and experience) who can focus on differentiating Santova from its competitors, though extreme client-centricity, advanced technology, and innovative supply chain trade solutions. Roll out further
Slide 18: Strategic Development - Organic
STRATEGIC DEVELOPMENT - ORGANIC Asia Pacific The development of Vietnam which will serve as a pivotal point for China and South-east Asia - a future growth zone. Europe Developing Germany and the surrounding countries through our capabilities in the Netherlands. The Netherlands serving as the gatewa
Slide 19: Strategic Development - Acquisitions
STRATEGIC DEVELOPMENT - ACQUISITIONS We will continue seeking quality businesses that meet our criteria. Four ‘lost years’ - 3 years of abnormally high earnings obscured by COVID-19. Then the last year saw depressed earnings in the context of a global ‘recessionary environment’ and low 2024 Privat
Slide 20: Our Challenge
OUR CHALLENGE The economy will strengthen, interest rates and inflation will lower, but the availability of a driven and skilled workforce is unlikely to improve. The combination of numerous socio-eco-political disruptions has created a challenging human capital environment. We have entered an age o
Slide 21: Outlook - Potential of the Logistics Industry
OUTLOOK - POTENTIAL OF THE LOGISTICS INDUSTRY It is encouraging that the logistics industry is expected to continue growing in the coming years due to rising global trade activities, and the rapid development of global logistics infrastructure. According to recent statistics, the global logistics ma
Slide 22: Outlook and strategy
Whilst we acknowledge the headwinds, we remain bold and will continue our strategy of investing in ‘future possibilities’ that will offer us the opportunity to achieve the extraordinary performance we are continuously striving towards. It is heartening to note the optimism of the shipping lines,
Slide 23: Financial Results
FINANCIAL RESULTS For the period ending February 2024 5 June 5 June 2024 2024
Slide 24: 2024 in Perspective
2024 IN PERSPECTIVE Key highlights: Revenue and net interest income decreased 4.5% to R637.8mil Net profit after tax decreased 30,1% to R147.3mil Offshore revenue increased to 70.7% Billings margin improved by 1.1% to 11.5% HEPS decreased 20.1% to 123.77 cps Tangible NAV increased 27.3%
Slide 25: 2024 Statement of Profit or Loss: Analysis
2024 STATEMENT OF PROFIT OR LOSS: ANALYSIS 2024 2023 Move R'000 R'000 % BILLINGS 5,543,544 6,424,353 (13.7)% Decrease in freight rates. Decline in logistics revenue across most regions, with the exception of UK REVENUE 617,728 654,379 (5.6)% (Africa -5,7%, AP -17,4%, EU -11,8%, UK +0,9%). Higher int
Slide 26: 2024 Operating Context: Forex
2024 OPERATING CONTEXT: FOREX 2024 2023 Movement Weighted R'000 R'000 % average Mvmt AVERAGE EXCHANGE RATES Primary Operating Currencies Euro EUR 20.22 17.41 16.1% 6.3% Pound Sterling GBP 23.37 20.23 15.5% 9.9% US Dollar USD 18.67 16.70 11.8% (2.1)% Weakening Rand against major operating Australian
Slide 27: 2024 Statement of Financial Position Analysis
2024 STATEMENT OF FINANCIAL POSITION ANALYSIS: ANALYSIS 2024 2023 Move R'000 R'000 % Cash and cash equivalents 477,206 491,968 (3)% Strong cash position with 93.3% of cash held offshore. Current tax assets 2,219 1,107 100% Deferred tax assets 8,800 21,570 (59)% Reversal of provisions/accruals. Finan
Slide 28: 2024 Financial Ratios
2024 FINANCIAL RATIOS 2024 2023 Move R'000 R'000 % - Billings/revenue margin 11.5% 10.4% 1.1% Decrease in freight rates lowering recoverable disbursements and increasing margin. Decline in revenue due to lower freight rates and higher overheads due to the - Operating margin 28.8% 42.8% (13.9)% infla
Slide 29: 2024 Trade Receivables: Credit Quality Analysis
2024 TRADE RECEIVABLES: CREDIT QUALITY ANALYSIS 2024 2023 Movement R'000 R'000 % Trade receivables 635,146 676,484 (6.1)% - South Africa 403,388 439,137 (8.1)% Lower freight rates slightly offset by higher volumes. Lower freight rates offset by extended credit terms in some regions and - Offshore 23
Slide 30: 2024 Cashflow Analysis
2024 CASHFLOW ANALYSIS 2024 R'mil CASH ON HAND (14.8) - 2024 477.2 - 2023 492.0 ANALYSIS OF MAJOR CASH FLOW MOVEMENTS (14.8) Net cash from operating activities 52.0 Weak cash generation due to the red sea issues. Repurchase of treasury shares (49.4) 6.1mil shares repurchased in the current year. Set
Slide 31: Santova Limited
Australia Germany SANTOVA Hong Kong Mauritius LIMITED Netherlands Singapore An international, technology- South Africa based trade solutions specialist United Kingdom www.santova.com United States Vietnam Thank you for your attendance and your continued support.