Imperial Logistics — FY2015 Earnings Presentation
73 slides from Imperial Logistics's earnings presentation, September 2015
Slide 1: Leaders in Mobility Results Presentation FY ended 30 June 2015
LEADERS IN MOBILITY RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2015
Slide 2: Agenda
AGENDA OPERATIONAL FINANCIAL OVERVIEW CONTEXT REVIEW REVIEW STRATEGY PROSPECTS 2
Slide 3: Overview
OVERVIEW REVENUE OPERATING PROFIT HEPS 7% 1% R110 487 million R6 235 million 1 624 cents PER SHARE CORE EPS¹ FINAL DIVIDEND CASH FLOW FROM OPERATING ACTIVITIES 3% 6% 68% 1 754 cents 445 CPS R5 billion PER SHARE ROIC OF 12% VS WACC OF 9% NET DEBT:EQUITY RATIO OF 69% (INCL PREF SHARES AS E
Slide 4: Overview
OVERVIEW > A strong recovery from H1 2015 (Rev. ↑ 9%; Op. profit ↓ 11%) to H2 2015 (Rev. ↑ 4%; Op. profit ↑ 11%) > Record FY revenue ↑ 7% to R110.5bn > Record FY operating profit ↑ 1% to R6.2bn > Record revenue & operating profit performance from 4 of 5 divisions > Increasing contribution of revenue
Slide 5: Growth Trend in Non Vehicle Operations
GROWTH TREND IN NON VEHICLE OPERATIONS REVENUE* (Rm) OPERATING PROFIT* (Rm) 4 year 4 year 3 729 CAGR CAGR 48 881 =19% =18% 45 410 3 282 37 830 2 627 31 703 2 283 1 896 24 045 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 * Including Regent > Revenue not dependant on new vehic
Slide 6: Growth Trend in Foreign Operations
GROWTH TREND IN FOREIGN OPERATIONS REVENUE* (Rm) OPERATING PROFIT* (Rm) 4 year 4 year 2 010 CAGR CAGR =30% =35% 41 080 1 639 35 129 1 263 27 969 969 21 519 604 14 337 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 * Including Regent > Foreign revenue up 17% to R41.1bn (now 37%
Slide 7: Overview
OVERVIEW > A strong recovery from H1 2015 (Rev. ↑ 9%; Op. profit ↓ 11%) to H2 2015 (Rev. ↑ 4%; Op. profit ↑ 11%) > Record FY revenue ↑ 7% to R110.5bn > Record FY operating profit ↑ 1% to R6.2bn > Record revenue & operating profit performance from 4 of 5 divisions > Increasing contribution of revenue
Slide 8: Agenda
AGENDA KEY OPERATIONAL FINANCIAL FEATURES CONTEXT REVIEW REVIEW STRATEGY PROSPECTS 8
Slide 9: Context – Global
CONTEXT – GLOBAL > Despite “green shoots” in calendar 2014, global economic growth expectations for 2015 declined steadily since January 2015 • developed markets recovered at a slower pace • China’s growth slowed • most developing markets were affected negatively by: lower commodity prices punishing
Slide 10: Operating Context – Imperial Regions
OPERATING CONTEXT – IMPERIAL REGIONS > South Africa (63% revenue; 68% operating profit) • structural low economic growth; constant downward revisions of growth forecasts • a victim of global developments (↓ commodity prices & exports; ↓ Rand) • low consumer & business confidence (exacerbated by elec
Slide 11: Agenda
AGENDA KEY OPERATIONAL FINANCIAL FEATURES CONTEXT REVIEW REVIEW STRATEGY PROSPECTS 11
Slide 12: Imperial's Three Lines of Mobility
IMPERIAL’S THREE LINES OF MOBILITY LOGISTICS VEHICLES FINANCIAL SERVICES New Pic REVENUE REVENUE REVENUE 7% 6% 10% R44.4 billion R65.0 billion R4.5 billion 39% contribution 57% contribution 4% contribution OPERATING PROFIT OPERATING PROFIT OPERATING PROFIT 14% 15% 14% R2.5 billion R2.6 b
Slide 13: Divisional Overview
DIVISIONAL OVERVIEW Five divisions in three major lines of mobility, which operate under separate management structures to enable decentralised entrepreneurial creativity within the Group's clearly-defined strategic, capital, budgetary & governance principles FINANCIAL LOGISTICS VEHICLES SERVICES VE
Slide 14: Imperial's Three Lines of Mobility: Logistics
IMPERIAL’S THREE LINES OF MOBILITY LOGISTICS REVENUE 7% R44.4 billion 39% contribution OPERATING PROFIT 14% R2.5 billion 40% contribution 4 YEAR CAGR 22% 14
Slide 15: Divisional Review: Logistics Africa
DIVISIONAL REVIEW LOGISTICS AFRICA > An experienced provider of end-to-end logistics & integrated supply chain management services in Southern, West & East African markets through three regional hubs > Across sub-Saharan Africa, the division provides a comprehensive & integrated demand-driven route
Slide 16: Pharmed Acquisition
PHARMED ACQUISITION Supplier audits Hospitals Production of & quality control Distribution Pharmacies pharmaceuticals, Sourcing, Buying, warehousing & transport End users generics & inbound logistics & stock keeping Dispensing doctors coordination medical products Order picking Other Pharmed activit
Slide 17: Imres Acquisition
IMRES ACQUISITION Supplier audits Hospitals Production of & quality control Distribution Pharmacies pharmaceuticals, Sourcing, Buying, warehousing & transport End users generics & inbound logistics & stock keeping Dispensing doctors coordination medical products Order picking Other Imres activities
Slide 18: 2015 Logistics Africa
2015 LOGISTICS AFRICA REVENUE (Rm) OPERATING PROFIT (Rm) OPERATING MARGINS (%) +15% +25% 6.5% 6.3% 6.0% 25 347 1 587 5.7% 22 090 1 270 13 265 802 785 12 082 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 > Delivered strong revenue & operating profit growth in difficult
Slide 19: Growth Trend Logistics RoA
GROWTH TREND LOGISTICS RoA REVENUE (Rm) OPERATING PROFIT (Rm) 4 year 4 year CAGR CAGR 9 974 632 =42% =45% 6 319 334 4 565 3 716 224 2 455 154 142 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 > Revenue & operating profit grew by 58% & 89% respectively, mainly due to the acqui
Slide 20: Growth Trend Logistics Africa
GROWTH TREND LOGISTICS AFRICA REVENUE (Rm) OPERATING PROFIT (Rm) 4 year 4 year CAGR CAGR 25 347 1 587 =16% =19% 22 090 1 270 18 018 16 457 920 910 13 788 786 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 2016 Guidance: We expect Logistics Africa to produce real growth of reve
Slide 21: Divisional Review: Logistics International
DIVISIONAL REVIEW LOGISTICS INTERNATIONAL > Estimated market size of €650bn in Imperial International sectors in Europe (IPL ranked 8th) Europe: Germany (mainly): Netherlands, > Industry structure: Highly developed infrastructure; Sweden, Luxemburg, Belgium, Poland, Austria, fragmented & competitive
Slide 22: Imperial International Profile & 2015 Performance
IMPERIAL INTERNATIONAL PROFILE & 2015 PERFORMANCE (RESTRUCTURED JULY 2016) INLAND PANOPA LEHNKERING NESKA SHIPPING Profile Profile Profile Profile > Leading inland shipping > Contract Logistics > Logistics services & contract > Leading player in inland company in Europe • automotive manufacturing (s
Slide 23: 2015 Logistics International (Euro)
2015 LOGISTICS INTERNATIONAL (EURO) REVENUE (€m) OPERATING PROFIT (€m) OPERATING MARGINS (%) +2% +1% 70 1 391 69 1 368 6% 5% 5% 4% 43 713 678 27 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 > Revenue & operating profit slightly up, impacted by a decline in European i
Slide 24: 2015 Logistics International (ZAR)
2015 LOGISTICS INTERNATIONAL (ZAR) REVENUE (Rm) OPERATING PROFIT (Rm) OPERATING MARGINS (%) -1% -1% 971 958 19 249 19 071 6% 5% 5% 4% 572 9 595 9 476 386 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 > The strengthening of the Rand against the Euro negatively impacted
Slide 25: Growth Trend Logistics International
GROWTH TREND LOGISTICS INTERNATIONAL REVENUE (Rm) OPERATING PROFIT (Rm) 971 4 year 4 year 19 249 958 19 071 CAGR CAGR =29% =29% 15 574 762 598 11 247 350 6 848 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 2016 Guidance: We expect Logistics International to produce real growt
Slide 26: Imperial Logistics (Africa & Int.)
IMPERIAL LOGISTICS (AFRICA & INT.) REVENUE (Rm) OPERATING PROFIT (Rm) 4 year 65% foreign 4 year 63% foreign 2 545 CAGR CAGR 44 418 =21% =22% 41 339 2 241 33 592 1 682 27 704 1 508 20 636 1 136 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 > Solid revenue & operating profit gr
Slide 27: Imperial's Three Lines of Mobility: Vehicles
IMPERIAL’S THREE LINES OF MOBILITY VEHICLES New Pic REVENUE 6% R65.0 billion 57% contribution OPERATING PROFIT 15% R2.6 billion 41% contribution 4 YEAR CAGR -1% 27
Slide 28: National Vehicle Sales 2007–2015
NATIONAL VEHICLE SALES 2007 – 2015 IMPERIAL’S SHARE OF TOTAL NAAMSA VEHICLE SALES & GDP GROWTH 800 9% 713 Thousands 36 623 644 631 639 599 485 29 31 31 600 38 530 27 6% 495 481 491 430 24 454 437 441 20 409 400 26 3% 312 341 200 0% 192 155 99 97 117 120 119 117 80 0 (3%) F2007 F2008 F2009 F2010 F201
Slide 29: Imperial's Market Share vs OEMs
IMPERIAL’S MARKET SHARE VS OEMS MARKET SHARE* (%) 5.0% 5.1% 19.8% 19.6% 16.9% 15.8% 15.5% 14.9% 12.5% 10.9% 7.7% 7.0% 5.9% 5.2% Jun 14 Jun 15 Jun 14 Jun 15 Jun 14 Jun 15 Jun 14 Jun 15 Jun 14 Jun 15 Jun 14 Jun 15 Imperial Mercedes Ford Toyota Volkswagen Nissan AMH Imperial Vehicle Retail * Includes R
Slide 30: Divisional Review: Vehicle Import, Distribution & Dealerships
DIVISIONAL REVIEW VEHICLE IMPORT, > Strategy: Increase sustainable market share & car parc of major brands through dedicated & multi-franchise DISTRIBUTION & DEALERSHIPS customer focussed dealerships; capture revenue & margin across entire motor value chain (import, distribution, retail, after-sales
Slide 31: Vehicle Import, Distribution & Dealerships
VEHICLE IMPORT, DISTRIBUTION & DEALERSHIPS REVENUE (Rm) OPERATING PROFIT (Rm) OPERATING MARGINS (%) +1% -37% 27 437 27 100 1 518 5.6% 960 3.8% 3.5% 14 278 3.2% 13 159 499 461 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 > Revenue growth of 1% enhanced 12% by Renault
Slide 32: Currency, Market Share & Operating Margins
CURRENCY, MARKET SHARE & OPERATING MARGINS MARKET SHARE¹ (%) OPERATING MARGIN² (%) 16.2% 13.6% 13.8% 15.4% 11.8% 14.9% 10.5% 10.0% 6.4% 9.2% 7.3% 5.4% Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun 10 11 12 13 14 15 10 11 12 13 14 15 Exchange rates (USDZAR) Exchange rates (EURZAR) Exchange rates (U
Slide 33: South African New Vehicle Prices
SOUTH AFRICAN NEW VEHICLE PRICES VEHICLE PRICE INCREASES (YOY GROWTH) SELLING PRICE VS CURRENCY COST OF NEW & PRE OWNED (%) IMPORTED PRODUCT (%) 1.81 1.79 Y-o-y growth 1.78 Ratio of used car sales to new car sales 1.65 1.65 1.52 1.25 2.4 1.6 1.4 0.8 0.6 0.6 4.1 3.0 5.6 6.6 7.0 7.8 7.2 7.0 5.4 ( 1.7)
Slide 34: Vehicle Import, Distribution & Dealerships (Inc. Financial Services)
VEHICLE IMPORT, DISTRIBUTION & DEALERSHIPS (INC. FINANCIAL SERVICES) REVENUE (Rm) OPERATING PROFIT (Rm) OPERATING MARGINS (%) +2% -25% 7.3% 28 853 28 266 2 068 5.8% 5.4% 5.0% 1 552 14 936 13 930 803 749 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 > Motor Related Fin
Slide 35: Divisional Review: Vehicle Retail, Rental & Aftermarket Parts
DIVISIONAL REVIEW VEHICLE RETAIL, RENTAL > Industry structures: Mature, highly competitive & price sensitive car rental sector dominated by local & AFTERMARKET PARTS franchises of major international brands; Aftermarket Parts industry mature but stable, based on 10 million vehicles in the vehicle pa
Slide 36: Vehicle Retail, Rental & Aftermarket Parts Profile & 2015 Performance
VEHICLE RETAIL RENTAL & AFTERMARKET PARTS PROFILE & 2015 PERFORMANCE VEHICLE RENTAL AFTERMARKET RETAIL PARTS Profile Profile Profile > Extensive footprint of 86 passenger vehicle > Car Rental (Europcar & Tempest) > Distributor, wholesaler & retailer dealerships (65% owned) representing > 63 dedicate
Slide 37: Acquisitions: S&B Commercials
ACQUISITIONS S&B Commercials > Acquired 1 September 2014 > Purchase price – R167m (£9m) for 100% shareholding > UK based commercial vehicle dealership > Specialises in Mercedes Benz (Commercial & Van) & Fuso > Further diversifies Imperial’s brand representation & extends its geographic footprint in
Slide 38: Vehicle Retail, Rental & Aftermarket Parts
VEHICLE RETAIL, RENTAL & AFTERMARKET PARTS REVENUE (Rm) OPERATING PROFIT (Rm) OPERATING MARGINS (%) +10% +7% 4.7% 4.6% 4.5% 4.2% 1 677 37 547 1 569 34 014 886 18 821 18 726 791 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 > Good growth of revenue & operating profit f
Slide 39: Growth Imperial Group: Vehicles
GROWTH IMPERIAL GROUP VEHICLES REVENUE (Rm) OPERATING PROFIT (Rm) 4 year 4 year 64 984 CAGR CAGR 3 578 61 114 3 409 =11% = -1% 57 577 3 087 51 679 2 692 2 637 42 410 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 > Represents 42% of group operating profit (total operations) “V
Slide 40: Imperial's Three Lines of Mobility: Financial Services
IMPERIAL’S THREE LINES OF MOBILITY FINANCIAL SERVICES REVENUE 10% R4.5 billion 4% contribution OPERATING PROFIT 14% R1.2 billion 19% contribution 4 YEAR CAGR 12% 40
Slide 41: Divisional Review: Financial Services
DIVISIONAL REVIEW FINANCIAL SERVICES > Strategy: Leverage Imperial’s capabilities as SA’s leading motor vehicle distributor & retailer to provide the motoring public & vehicle users with relevant, cost-effective motor related financial services & products (insurance, finance & FML through banking al
Slide 42: Financial Services Profile & 2015 Performance
FINANCIAL SERVICES PROFILE & 2015 PERFORMANCE REGENT LIQUID CAPITAL Profile Profile > Provides regulated life & short term insurance products & > Provides maintenance & warranty products associated with services in South Africa, Lesotho, Botswana, & Zambia the automotive market Performance Performan
Slide 43: Financial Services
FINANCIAL SERVICES REVENUE (Rm) OPERATING PROFIT (Rm) +10% +14% 1 184 4 463 4 071 1 041 697 2 335 2 128 487 2014 2015 H1 2015 H2 2015 2014 2015 H1 2015 H2 2015 OPERATING PROFIT SPLIT (Rm) NET UNDERWRITING MARGIN (%) 1184 20.0% 1041 208 15.8% 276 697 356 178 11.3% 11.3% 487 121 587 620 87 263 93 307
Slide 44: Growth Imperial Group: Financial Services
GROWTH IMPERIAL GROUP FINANCIAL SERVICES REVENUE (Rm) OPERATING PROFIT (Rm) 4 year 4 year 1 184 CAGR CAGR =7% =12% 1 041 4 463 945 4 238 4 071 3 999 775 760 3 409 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Financial services, founded on Imperial’s motor related innovation
Slide 45: Agenda
AGENDA KEY OPERATIONAL FINANCIAL FEATURES CONTEXT REVIEW REVIEW STRATEGY PROSPECTS 45
Slide 46: Income Statement: Revenue
INCOME STATEMENT 2014 2015 Rm Rm % CHANGE Revenue 103 567 110 487 7% LOGISTICS 7% new contract gains, strong growth in Rest of Africa from acquisitions & REVENUE organic growth CONTRIBUTION PER DIVISION (%) VEHICLES 6% 2014 2015 impacted by currency weakness in Vehicle Import, Distribution & Dea
Slide 47: Income Statement: Operating Profit
INCOME STATEMENT 2014 2015 Rm Rm % CHANGE Revenue 103 567 110 487 7% Operating profit 6 185 6 235 1% Operating profit margin 6.0% 5.6% OPERATING PROFIT LOGISTICS 14% CONTRIBUTION PER improved margins & acquisitions DIVISION contributed to excellent performance (%) from Rest of Africa 2014 2015 VEH
Slide 48: Divisional Statistics
DIVISIONAL STATISTICS OPERATING MARGIN (%) 26.5% 25.6% 7.3% 6.3% 6.0% 5.7% 5.6% 5.4% 5.0% 5.0% 4.6% 4.5% Logistics Africa Logistics International Vehicle Import, Vehicle Retail, Financial Services Group Distribution & Dealerships Rental & (incl financial services) Aftermarket Parts 2014 2015 32.3% R
Slide 49: Income Statement
INCOME STATEMENT 2014 2015 Rm Rm % CHANGE Revenue 103 567 110 487 7% Operating profit 6 185 6 235 1% Recoupments from disposal of properties 113 29 Amortisation of intangible assets (336) (415) 24% Foreign exchange (losses)/gains on foreign currency monetary items (31) 75 Loss on remeasurement of pu
Slide 50: Income Statement
INCOME STATEMENT 2014 2015 Rm Rm % CHANGE Net financing costs (926) (1 194) 29% Income from associates 76 32 (58%) Tax (1 330) (1 213) Net profit for the year 3 627 3 386 (7%) Attributable to Imperial shareholders 3 272 3 054 (7%) Attributable to minorities 355 332 (7%) > Net finance costs increased
Slide 51: Balance Sheet
BALANCE SHEET 2014 2015 Rm Rm % CHANGE Property, plant & equipment 10 469 10 967 5% Transport fleet 5 322 5 610 5% Vehicles for hire 2 945 3 603 Goodwill & intangible assets 6 766 7 193 6% Associates, investments & loans 3 886 1 708 (56%) Other assets 1 516 1 428 Net working capital 8 033 9 874 23%
Slide 52: Balance Sheet
BALANCE SHEET 2014 2015 Rm Rm % CHANGE Total shareholders’ interest 18 109 19 233 Net interest bearing borrowings 11 441 14 493 27% Other liabilities 9 387 8 562 (9%) Liabilities directly associated with assets classified as held for sale - 2 713 Equity & liabilities 38 937 45 001 > Shareholders’ in
Slide 53: Cash Flow – Operating Activities
CASH FLOW – OPERATING ACTIVITIES 2014 2015 Rm Rm % CHANGE Cash generated by operations 8 674 9 049 Net working capital movements (2 701) (50) Cash generated by operations after working capital movements 5 973 8 999 51% Net finance costs & tax paid (2 193) (2 481) Cash flow from operating activities
Slide 54: Cash Flow – Investing Activities
CASH FLOW – INVESTING ACTIVITIES 2014 2015 Rm Rm % CHANGE Net acquisition & disposals of subsidiaries & businesses (297) (938) Capital expenditure (2 788) (2 988) 7% Expansion (1 626) (1 743) Replacement (1 162) (1 245) Net movement in associates & JVs (144) 178 Net movement in investments, loans &
Slide 55: Cash Flow – Summary
CASH FLOW – SUMMARY 2014 2015 Rm Rm % CHANGE Cash flow from operating activities 2 969 4 987 68% Total investing activities (2 116) (4 951) 134% Financing activities Dividends paid (1 940) (1 724) Other financing activities (885) (273) Increase in net borrowings (1 972) (1 961) Free cash flow - tota
Slide 56: Gearing
GEARING Net debt to equity > Higher net debt to fund: • acquisitions • higher working capital • expansion capex > Net debt:equity was higher at 69% (2014: 62%), also impacted 81% by a put option liability of 69% 473m relating to the minority 60% 62% shareholdings in Imres 51% 49% > The net debt leve
Slide 57: Returns
RETURNS ROE (%) ROIC vs WACC (%) 16.5 16.3 16.2 22 22 21 13.0 19 12.2 11.8 17 10.5 10.1 9.7 9.1 8.8 8.8 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 ROIC WACC ROE is good > Impacted by: > ROIC affected by: • significantly lower returns from Vehicle Import, • lower returns in Vehicle Import
Slide 58: Agenda
AGENDA KEY OPERATIONAL FINANCIAL FEATURES CONTEXT REVIEW REVIEW STRATEGY PROSPECTS 58
Slide 59: Strategy
STRATEGY > Imperial’s strategy seeks to drive capability-based growth & focused value creation through strategic clarity & financial discipline at group & divisional level > The refinement of the Imperial portfolio remains an imperative in pursuit of growth, sharper executive focus & higher returns
Slide 60: Agenda
AGENDA KEY OPERATIONAL FINANCIAL FEATURES CONTEXT REVIEW REVIEW STRATEGY PROSPECTS 60
Slide 61: Prospects
PROSPECTS > The factors most relevant to the fortunes of Imperial are: • the weakening of the Rand against the currencies in which we import new vehicles • a further deterioration in the South African economy • a much slower than expected recovery of the German economy • the impact of political unce
Slide 62: Thank You
LEADERS IN MOBILITY THANK YOU
Slide 63: Addenda
IMPERIAL ¥ ADDENDA
Slide 64: Integrated Supply Chain Partner in South Africa
INTEGRATED SUPPLY CHAIN PARTNER IN SOUTH AFRICA FREIGHT & WAREHOUSING DISTRIBUTION DEMAND INTEGRATION TRANSPORT & STORAGE & FULFILMENT MANAGEMENT SERVICES SUPPLY CHAIN OUTSOURCING PARTNER > Ability to reduce client’s costs – consolidation of transport & distribution facilities; economies of scale >
Slide 65: Logistics & Distribution in Rest of Africa
LOGISTICS & DISTRIBUTION IN REST OF AFRICA Imperial provides a comprehensive & integrated demand-driven route-to-market for consumer products & pharmaceutical brand owners in sub-Saharan Africa GET YOU THERE SELL YOUR PRODUCT BUILD YOUR BRAND A B SUPPLY CHAIN MANAGED LOGISTICS WAREHOUSING ROUTE-TO-M
Slide 66: Imperial Logistics Africa
IMPERIAL LOGISTICS AFRICA West Africa > Imperial Health Sciences – pharma logistics, supply chain management, warehousing > MDS Logistics – transport, distribution, warehousing (FMCG, pharma, telecoms) > Eco Health – distribution, sales, marketing of pharma MALI NIGER NORTH products SUDAN > Imres –
Slide 67: Our Key Clients
OUR KEY CLIENTS ae o =Cl er, AFROX & adcock ingram aay Afrisam od ea “+ aspen \ASTRAL —__bhobilliton bp ¢j DrANGhOUSE — sarnsn Amenrcan Tomacco CAENCORE DIAGEO «Pom GEES ovctn GED Ea The power to do more emene materia wife @ PG BISON b 4 Reckitt sappi sasou 3 @Shell &-— Novobord Sm OD Tongaat Hulett
Slide 68: Logistics International Geographies
LOGISTICS INTERNATIONAL GEOGRAPHIES > Germany is the base > Strategy to follow customers/products to new markets > South America • profitable 10 year contract operating on Rio Parana, transporting iron ore from Brazil to steel mill in Argentina 68
Slide 69: Imperial Group Revenue Capture
IMPERIAL GROUP REVENUE CAPTURE 6. Pre Owned vehicle sales 1. Vehicle import & distribution > ±70 000 units p.a. > Represent 16 exclusive Automotive & Industrial brands > Strong after sales & service capability 2. Vehicle retail 5. Aftermarket Parts > Most major local & imported brands > Parts, oils
Slide 70: Car Parc of Imperial Imported Brands
CAR PARC OF IMPERIAL IMPORTED BRANDS 1 037 878 956 666 865 636 769 295 290 550 669 785 576 155 192 334 487 701 107 363 431 580 373 473 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 > Car parc doubled over past 5 years & exceeded 1 million in 2015 > Provides an underpin to earnings > Be
Slide 71: Contextualising Vehicle Import Division's Performance
CONTEXTUALISING VEHICLE IMPORT DIVISION’S PERFORMANCE > Hyundai/Kia worldwide established on disruptive entry level pricing > Hyundai/Kia grown off a low base in SA > Beneficiary of “democracy dividend”: rapid growth of Black middle class; expansion of government employment; above inflation wage inc
Slide 72: Imperial's Approach to Motor Related Financial Services
IMPERIAL’S APPROACH TO MOTOR RELATED FINANCIAL SERVICES Insurance & motor related financial products & services Finance > Extensive retail network Insurance provides scale & points of sale for the group’s financial services Maintenance & service plans business > Market intelligence & a basis Warrant
Slide 73: Driving Parenting Advantage
DRIVING PARENTING ADVANTAGE SHAPE THE GROUP’S RAISE, ALLOCATE ENSURE STRATEGIC DEVELOP EXECUTIVE PORTFOLIO TO & CONTROL CAPITAL CLARITY AT CAPABILITY AS A ACHIEVE FOCUSED FOR VALUE SUBSIDIARY LEVEL GROUP RESOURCE GROWTH ACCRETION > Deliberately shape the > Access debt funding at > Guide & approve >