Labat Africa Ltd · JSE:LAB
Labat Africa — Investor Presentation (November 2015)
22 slides from Labat Africa's investor presentation, November 2015
Slide 1: Investor Presentation
Private and Confidential Investor Presentation Private Placing of Labat shares in relation to the acquisition of Reinhardt Transport Group November 2015 1
Slide 2: Content Page
Private and Confidential Content Page Details Page 1 Labat Group Vision 3 2 Investment Strategy 4 3 Acquisition Criteria 5 4 Executive Summary 6 RTG Acquisition Highlights RTG Transaction Layout Labat Share & Ratio Analysis Labat Pro Forma Statement of Financial Position Labat Investor Hig
Slide 3: Labat Group Vision
Private and Confidential Labat Group Vision To be a leading transport and logistics company operating in South Africa and sub-Saharan Africa providing transport infrastructure related services 3
Slide 4: Labat Investment Strategy
Private and Confidential Labat Investment Strategy Platform build up growth strategy- Level 3 “buy, build, and create value” Level 2 Entering new areas New markets Level 1 New geographies Extending our current platform Strategic alliances Selective acquisitions Optimising the current platform Furthe
Slide 5: Labat Acquisition Criteria
Private and Confidential Labat Acquisition Criteria Labat engaged an active acquisition programme having identified & developed a pipeline of acquisition targets to support its logistics growth strategy Opportunistic Scalable business models Unlisted companies Deal size will typically range
Slide 6: Executive Summary – RTG Acquisition Highlights
Private and Confidential Executive Summary – RTG Acquisition Highlights Labat to acquire 100% of RTG for a consideration of R560 million Invest R560 million to acquire 100% of the issued share capital in RTG with Labat raising R330 million in equity capital and the balance by way of Consideration
Slide 7: Executive Summary – RTG Transaction Layout
Private and Confidential Executive Summary – RTG Transaction Layout Facilitate High BEE rating for INSTITUTIONAL INVESTORS, EXISTING DERICK REINHARDT & RTG RTG with BEE INVESTORS & DFI’s LABAT SHAREHOLDERS MANAGEMENT controlling 164m shares (32.21%) 259.2m shares (50.90%) 86m shares (16.89%) ownersh
Slide 8: Executive Summary – Labat Share & Ratio Analysis
Private and Confidential Executive Summary – Labat Share & Ratio Analysis Labat Africa Limited 2013 2014 2015 2016 Pro Forma Income Statement (post share issue) R'000 R'000 R'000 R'000 Revenue 1 262 580 1 538 432 1 288 268 1 504 164 Gross Profit 533 599 683 848 551 311 673 186 EBITDA 239 608 321 216
Slide 9: Executive Summary-Pro Forma Statement of Financial Position
Private and Confidential Executive Summary-Pro Forma Statement of Financial Position Labat Africa 2 015 After Issue R'000 ASSETS Non-current assets 1 092 053 Property, plant and equipment 753 604 Other assets 338 449 Deferred tax 0 Current assets 321 109 Inv entories 11 116 Inter-Group Loans 104 522
Slide 10: Executive Summary – Labat Investor Highlights
Executive Summary – Labat Investor Highlights Labat Africa JSE Transport & Logistics Sector Long name: Labat Africa Limited Company Mkt cap PE Short name: Labat (LAB) IMPERIAL 32 455 303 594 10.98 JSE Sector: VCM ONELOGIX 1 362 638 951 -188.00 SUPRGRP 11 868 904 756 12.72 Closing Prices (13/11/2015)
Slide 11: Executive Summary - Labat Investment Rationale
Private and Confidential Executive Summary - Labat Investment Rationale Business operational for 33 years - Business risks are materially reduced with the RTG business model well-established and adaptable to changing market circumstances. The Reinhardt Transport and Chrome Carrier brands are widel
Slide 12: RTG Overview - Financial Analysis
Private and Confidential RTG Overview - Financial Analysis Revenue growth of 8% on existing business is projected, excluding the benefits accruing from the Labat value add with improved BEE credentials Average annual revenue over 3 years (FY13-FY15) in excess of R1.3bn; Table 1: RTG FINANCIAL PERF
Slide 13: RTG Overview - New & Regained Clients
Private and Confidential RTG Overview - New & Regained Clients Reinhardt Transport Group New & Regained Business Recovery of Lost Clients Annual Probability 2016 2017 2018 Chrome Carriers Division • Operations at the Metreta Client A1 78 120 000 10.00% 6 510 000 8 332 800 8 999 424 contract was halt
Slide 14: RTG Overview - Organisation Structure
Private and Confidential RTG Overview - Organisation Structure Reinhardt Transport Group (Pty) Ltd Amalgamated Reinhardt Chrome Head Office Divisions of RTG Bulk Division Transport Carriers Division (Dormant) Division Division Trailers Division RTG Logistica (Mozambique) 14
Slide 15: RTG Overview – Established Client Base
Private and Confidential RTG Overview – Established Client Base 15
Slide 16: RTG Overview – Client Industry Split
Private and Confidential RTG Overview – Client Industry Split 16
Slide 17: RTG Overview – Photo Gallery
RTG Overview – Photo Gallery 17
Slide 18: Labat compliance process & target dates
Private and Confidential Labat compliance process & target dates Event Target Dates 2015 Start End Prepare circular and financial reports August Mid Oct Equity raising July Mid Nov Obtain Indicative interest from Investors Sep Early Nov Allocations Early Nov End Nov Review process by all parties Mid
Slide 19: Contact Details
Private and Confidential Contact Details Afcorp Investments Gregory Boyd 2nd Floor, West Tower Telephone: +27 11 881 5983 Nelson Mandela Square (switchboard) Sandton, 2146 Direct: +27 11 326 6348 South Africa SA Mobile: +27 82 450 1260 Email: greg@afcorpinvestments.com Utho Capital Reginald Muzariri
Slide 20: Corporate Information
Private and Confidential Corporate Information Website: Auditors www.labat.co.za Nexia SAB&T Sponsor Corporate Attorneys Arbor Capital Sponsors Proprietary Limited Norton Rose Fulbright South Africa Corporate Bankers Financial Advisors ABSA Bank Limited Afcorp Investments Proprietary Limited Utho Ca
Slide 21: Definitions
Private and Confidential Definitions AB Amalgamated Bulk, a division of RTG Afcorp Afcorp Investments Proprietary Limited Arbor Capital Arbor Capital Sponsors Proprietary Limited BEE Black Economic Empowerment CC Chrome Carriers, a division of RTG GEM GEM Global Yield Funds LLC (Global Emerging Mark
Slide 22: Disclaimer
Private and Confidential Disclaimer This Investment Teaser has been prepared to assist prospective investors in evaluating the proposed investment in Labat Africa Limited (“Labat” or “the Company”), which should be evaluated along with other supporting documents also provided. The Investment Teaser