Imperial Logistics — Imperial Holdings — H1 2009 Earnings Presentation
22 slides from Imperial Logistics's earnings presentation, Feb 25, 2009
Slide 1: Unaudited results for the half-year ended 31 December 2008
Imperial Holdings Limited | Presentation Unaudited results for the half-year ended 31 December 2008
Slide 2: Operational Features
UNAUDITED INTERIM RESULTS For the half year ended 31 December 2008 25 February 2009 Operational Features • Strong performance by logistics division. Operating profit growth of 13.6% (SA) and 9.1% (Europe) • Weak demand impacted motor retailing and distribution (58% of group revenue and 29% of group
Slide 3: Financial Features
Financial Features Continuing operations +2% - Revenues R28 619m -30% - Operating profit R1 155m (Operating margin 4%) 241% - Cash generated by operations R2 030 -4% - HEPS 432 cents (including 212 cents forex gain) -35% - EPS 303 cents (2007: 468 cents) Dividend of 80 cents per share 3 Progress on
Slide 4: Review of the Unaudited Interim Results
REVIEW OF THE UNAUDITED INTERIM RESULTS For the half year ended 31 December 2008 Income Statement Features Continuing Operations (Rm) Dec 2008 Dec 2007 % Change Revenue 28 619 28 026 +2% Operating profit 1 155 1 644 -30% Operating margin 4.0% 5.9% Foreign exchange gains 470 14 Fair value (losses)/ g
Slide 5: Income Statement Features
Income Statement Features Continuing Operations (Rm) Dec 2008 Dec 2007 % Change Revenue 28 619 28 026 +2% Operating profit 1 155 1 644 -30% Operating margin 4.0% 5.9% Reduction a result of Foreign exchange gains depressed motor 470 14 market and decline in Fair value gains/(losses) onmarket FECs val
Slide 6: Income Statement Features
Income Statement Features Continuing Operations (Rm) Dec 2008 Dec 2007 % Change Revenue 28 619 28 026 +2% Operating profit 1 155 1 644 -30% Includes R217 Operating margin million realised 4.0% 5.9% Foreign exchange gains loss on sale of 470 14 Eqstra shares Fair value gains/(losses) on FECs (47) 7 E
Slide 7: Income Statement and Balance Sheet Features
Income Statement Features Continuing Operations (Rm) Dec 2008 Dec 2007 % Change Revenue 28 619 28 026 +2% Operating profit 1 155 1 644 -30% Operating margin 4.0% 5.9% Foreign exchange gains 470 14 Fair value gains/(losses) on FECs (47) 7 Exceptional gains/(losses) (246) 39 Net finance costs Excludin
Slide 8: Balance Sheet Features
Balance Sheet Features Dec % Dec Rm Jun 2008 2008 change 2007 Property, plant and equipment 6 025 5 681 +6% 5 693 Includes R225 million Transport fleet additional investment 3 722 3 465 +7% 3 136 Vehicles for hire in Imperial Bank 1 472 1 286 +14% 1 449 Investments in associates & JV’s 2 388 2 017 +
Slide 9: Changes in total shareholders' interest
Balance Sheet Features Dec % Dec Rm Jun 2008 2008 change 2007 Property, plant and equipment 6 025 5 681 +6% 5 693 Transport fleet 3 722 3 465 +7% 3 136 Vehicles for hire 1 472 1 286 +14% 1 449 Investments in associates & JV’s Reduction mainly 2 388 2 017 +18% 2 373 due to disposal of Other non-curre
Slide 10: Interest bearing debt
Balance Sheet Features Dec % Dec Rm Jun 2008 2008 change 2007 Property, plant and equipment 6 025 5 681 +6% 5 693 Transport fleet 3 722 3 465 +7% 3 136 Vehicles for hire 1 472 1 286 +14% 1 449 Investments in associates & JV’s 2 388 2 017 +18% 2 373 Other non-current assets 4 104 4 632 -11% 10 670 Ne
Slide 11: Debt maturity profile
Debt maturity profile Type of debt Totals Maturity of debt as at 31 December 2008 Jun-08 Dec-08 2009 2010 2011 2012 2013 2014 Corporate Bonds 7 686 8 020 82 2 000 0 500 3 868 1 570 Commercial paper 1 618 1 808 1 808 Overdrafts 912 150 150 Other 1 383 1 086 656 100 78 68 184 Gross debt 11 599 11 064
Slide 12: Current management imperatives
Current management imperatives • Management focus is on cash management and sweating existing assets • Working capital management – R2.3bn improvement achieved • Capital expenditure has been limited, decreasing by R600m • To take advantage of acquisition opportunities, though acquisitions are diffic
Slide 13: Divisional Overview: Operating income
Divisional Overview Operating income (Rm) Geographical segmentation: Continuing operations 2008 2007 Rest of the world Rest of the world 211 245 (13%) (21%) Rest of Africa 63 (4%) 87 Rest of Africa (8%) 823 (71%) South Africa 1 370 (83%) South Africa 24 Page 12 UNAUDITED RESULTS FOR THE SIX MONTHS E
Slide 14: Divisional Statistics and Logistics
Divisional Statistics Revenue Operating profit Insurance International Logistics Insurance 5% International Logistics 6% 16% Dealerships 17% 13% Dealerships 32% 18% SA Logistics Distributorships 15% 35% 5% SA Logistics Car Rental 14% 24% Car Rental Distributorships Margins 12,2% 7,9% 4,4% 5,3% 2,6%
Slide 15: Logistics: Southern African and European operations
Logistics Southern African operations • The FMCG market showed resilience to the slowdown • The steep decline since November 2008 in import & exports, steel, cement, industrial chemicals sectors and residential building is having a negative impact • We have a small exposure to weak markets in port c
Slide 16: Car Rental and Tourism; Distributorship
Car Rental and Tourism 2008 2007 Operating profit (Rm) Margin • Decline in operating profit is -12% 12.2% mainly due to lower rental 163 days, especially from foreign 13.7% 186 tourist market • Used car market held up, 0 40 80 120 160 200 but margins declined • Infrastructure spending, Net Operating
Slide 17: Motor Dealerships and Insurance
Motor Dealerships 2008 2007 • Reduced lending by banks in the latter part of the period Operating profit (Rm) Margin exacerbated the low demand 1.6% 151 -32% for vehicles 223 2.2% • 9 unprofitable outlets closed, but dealer portfolio is being 0 40 80 120 160 200 240 improved through rationalisation
Slide 18: Associates
Associates • Income from associates marginally up • Imperial Bank’s contribution declined by 38.8% • R225 million further equity invested in Imperial Bank • Imperial Bank JV renewed post 2010 • Negative fair value adjustments in Ukhamba • No further losses recorded in Renault joint venture • Renault
Slide 19: Strategic imperatives and intentions
Strategy and prospects Strategic imperatives and intentions Disposals and unbundling brought Severe swings in consumer financial strength but increased cyclicality durable spending Rebalancing of the portfolio composition and capital allocation 36 Page 18 UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 3
Slide 20: Strategic considerations
Strategic considerations • Logistics benefits from globalisation • SA has significant potential for further logistics growth • Germany strategically placed in pan-European trade, and is a key manufacturing hub • Container traffic volumes will ultimately recover • Our expansion into logistics will co
Slide 21: Prospects
Prospects • Recovery in motor vehicle sales not imminent • Extremely weak conditions in European logistics will continue • Local logistics expects a softening in certain industries • Car rental and tourism will be supported by key sports events • Short term insurance underwriting result will be heal
Slide 22: www.imperial.co.za
www.imperial.co.za Non-executive directors TS Gcabashe (Chairman), S Engelbrecht, P Langeni, MJ Leeming, JR McAlpine, MV Moosa, MV Sisulu, 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 (Ge