Investor Presentation 16 May 2019 Agenda Group profile Overview - PowerPoint PPT Presentation

INNOVATIVE SOLUTIONS. ENDLESS POSSIBILITIES Investor Presentation 16 May 2019

Agenda  Group profile  Overview of the industry  The year under review  Achievements of 2019  Industry benchmarking  Group financial review  Future strategy  Conclusion

Global Footprint 20 Offices in 8 countries on 4 continents 3 REPRESENTATIVE OFFICES (SOUTHEAST ASIA) Staff Compliment 328 Africa 191 United Kingdom 74 Europe 38 Asia-Pacific 25 Shareholders 4 611

International Trade Solutions  End-to-end (E2E) Supply Chain Solutions: people, systems, software, workflow processes, 7 metrics, KPIs, statistical analysis, information flow, quality control, supplier management  Business Intelligence: market intelligence , data analytics, software delivering actionable information Service offerings  Logistics Services: customs & excise, forwarding, warehousing, distribution  Global Project Management: diverse projects, multiple teams, multiple countries, diverse skill sets  Client Sourcing and Procurement Management Services  Express or Time-Sensitive Courier Services  Financial Services

Client Distribution Top 10 clients No Region Industry % of Total Industry 1 SA/Asia Textiles / apparel / accessories 3,80% 2 SA/Asia Technology 1,40% Client Risk 3 SA Wholesale 1,01% Profile 4 SA Food and beverages 0,92% 5 SA Biometrics / security 0,86% 6 SA Armoured vehicles 0,80% 7 UK Textile recycling 0,68% 8 AUS Pharma 0,66% 9 UK Textile sorting 0,64% 10 UK Ceramics manufacturing 0,62% Total net revenue from top 10 clients 11,39%

Overview of the industry

Disruptors and Trends Facing the Industry Forces Transforming the Logistics Industry Trends in Global Trade and Value Chains  Digitisation  Smaller shares of goods are traded across borders  Shifts in international trade  Trade is becoming more regional and less long-haul  Software-driven process changes  Services trade is growing faster than goods trade  Changes in consumer demand  Labour costs have become less important  Machine-driven process changes  R&D and innovation are now increasingly important  Technology is transforming global value chains Price Waterhouse Coopers: Future of World Trade 2018. PwC Future of World Trade conducted 1,239 interviews with CEOs in 85 countries - all were in the logistics industry. McKinsey Global Institute February 2019

Corporate Expectations Going Forward CEO survey 2018 . PWC. n = 1,239 CEOs in 85 countries 85% 78% 68% 65% 60% Are confident Believe global Are concerned Anticipate that Expect changes about their about digital skills changes in core in distribution economic growth company’s in both their technologies of channels to will improve prospects for over the next 12 workforce and service provision will disrupt their revenue growth months their industry disrupt their business in the over the next 12 business in the next next five years months five years Companies Are Changing Their Global Strategies Global Executive Survey 2018. McKinsey Global Institute. n = 1,021 75% will change strategy due to trade tensions and uncertainty 33% consider trade uncertainty to be a top concern 49% will change the geography of their operations 24% invest more in local supply chains

Trade is Becoming More Regional as Opposed to Long Haul McKinsey & Company Globalization in Transition January 2019 Closer relationship to suppliers - Speed to market - Proximity to customers Share of intra-regional trade in 2017 Percent of trade (imports/exports) Advanced economies: innovation, intellectual capital and skills allows them to be in a strong strategic position (good connectivity) Developing economies: As Exceptional production moves closer growth driven by to consumers, those China countries that are strategically located can benefit Latin America However, for the low and Caribbean income developing countries using labour intensive exports as a development strategy, time is running out (limited or no connectivity)

The Year Under Review 2019

The Challenges of 2019 South Africa  Struggling economy - in recession for the first two quarters of 2019 financial year  Reduced volumes traded: electrical equipment, textiles, clothing, wood, paper, petroleum and chemical products  Sluggish transition to a new technological platform United Kingdom  Brexit, resulting in a weaker pound against the US dollar, affecting pound translated revenue and profit margins  Extraordinary costs, including share incentive scheme, bad debt, investment in staff and recruitment fees  Impact of reduced trade volumes between South Africa and the United Kingdom Europe  The loss of a few top end clients in the Netherlands - largest through M&A activity  The introduction of a pension scheme in the Netherlands  Impact of reduced volumes traded between South Africa and the Netherlands/Germany Roll-out of cloud based technologies and software, effective March 2019 United Kingdom: Express courier services and Tradeway Shipping logistics services  South Africa logistics services and Singapore logistics services  Successful completion of three acquisitions  Singapore (August 2018) , United Kingdom (October 2018) and Germany (March 2019)

High Level Overview of Group Performance

Group Financial Ratios Positive 'supportive' rationale % Feb 19 Feb 18 Change Administrative Expenses 263 317 239 628 9,9% Operating margin 25,20% 30,60% -17,6% Cash and cash equivalents on hand 89,80 108,40 -17,2% Net cash generated from operations 20,20 67,80 -70,2% % The challenge Change High Level Observations South African growth rate 2018 2017 Revenue growth slower than expected 0,80% 1,30% -38,5% Administrative expenses higher due to acquisitions GDP per capita of South Africa 2018 2008 Debt and finance costs reduced in spite of acquisitions $6 182 $6 124 0,9% Admin expenses and cashflow - not a true indicator of ‘financial health’ Global trade wars: economic protectionism Brexit: weakening pound against the US$

Logistics Regional Analysis General Europe United Kingdom Growth in Net Revenue across all regions Impact of South African economy Extraordinary once off costs Operating margin still well above industry norm Loss of few large clients (M&A activity) Weak pound to the US$ South Africa impacted all regions Introduction of a pension fund Reduced margins (imports) Investment in key resources

Global Trade Volumes South Africa most Asia Pacific showing a United Kingdom Europe showing Santova Express has affected by economic significant growth in repriced (‘lost’) a large significant growth, in been held back due trading conditions, volumes traded number of smaller spite of the loss of to slower than however, courier still clients who were clients (M&A activity) expected rate of showed growth considered ‘not implementation profitable’ Overall - transaction count is still good The above are approximate numbers. Until such time that all offices globally are on the same system some discrepancy may exist

Achievements of 2019 Acquisitions SAI Logistics Ltd (United Kingdom) R52m, effective 1 st October 2018 A niche trade route from India to the United Kingdom  An opportunity to leverage off shipments from India to own offices globally  ASM Logistics (S) Pte. Ltd (Singapore) R13,5m, effective 1 st August 2018 A strategic pivotal point or platform to share in the growth of Southeast Asia  Asia-Pacific region is projected to make up 8 of the top 25 trade pairs in 2030  MLG Maritime Cargo Logistics GMBH (Germany) R30m, effective 1 st March 2019 Specialists in the movement of dangerous goods  Expands the Group’s presence and service in Hamburg (Germany's largest port and Europe's third-largest container port)  and acts as the gateway to northern Europe Technology Roll-out of cloud based technologies and software South Africa, Tradeway (UK) and Singapore have been transferred onto a new platform  Future operational cost structures will be significantly reduced going forward  Santova Express is now ‘live’ (UK) - a fully automated small parcel express service 

Continued Focus on 10 Key Differentiators Global diversification: currency, geographical, multiple industries, client spread  Multiple revenue streams  Complementary, diverse business activities  Asset-light business model  Relationship driven focus on small to medium enterprises  A complex, sophisticated business model - founded on ‘disruptive market forces’  Proven track record of strategic and highly accretive M&A transactions  Continuously leveraging off next generation technology  Globalisation - unlimited growth in opportunities and target markets  Strong client base with low exposure to bad debt write-offs  A strong entrepreneurial culture, underpinned by sound values and sound hands-on leadership

Industry Benchmarking

Includes Feb 2019 results

Includes Feb 2019 results