Res esults lts pr presentat ation For the year ended 31 May - PowerPoint PPT Presentation

Res esults lts pr presentat ation For the year ended 31 May 2016 25 - 26 August 2016 1

Presentation overview  Highlights of the year  Group overview  Activities during the year  Financial performance  Segmental breakdown  Prospects 2

Overview of the year 3

Group Overview - continuing operations Diversified revenue • stream Revenue Diluted Core HEPS NAV Vehicle market contracted • for 3 rd consecutive year Up 30% to Up 8% to Up 10% to R1,78 billion 34.1 cps 286.6 cps New acquisitions • integrated OneLogix Logistics Hub Trading profit NTAV Impacts • Core HEPS Phase 2 Up 21% to Up 7% to BEE level 3 Up 5% to • R151.0 million 221.6 cps 34.6 cps All staff shareholders in • Group Accounting charges Cash generated from operations by • related to share Continuing Operations participation schemes Increased skills upliftment • Up 33% to costs R173.2 million 4

Group overview 5

Group overview Spe peci cialist st log logistics cs se servi vice provide ider Moving f g forward t d toget ether er 6

Segmentation Other – Logistics Services Abnormal Logistics Primary Product Logistics VDS 100% OneLogix United Bulk *100% • VDS 100% • Atlas 360 71.3% • • CVDS 100% OneLogix Linehaul 75% • CVDS 100% • OneLogix Cargo Solutions 69.5% • • OneLogix Projex *86,9% Jacksons 74% • OneLogix Projex 86,9% * • QSA 85% • • Buffelshoek 74% • DriveRisk 49% • (associate) • * After amalgamation with * Includes 100% of Vision Madison Transport and 74,2% of Cryogas All acquisitions successfully integrated | Synergies realised Management interest aligned with that of shareholders 7

The OneLogix Way Well established niche logistics provider • Footprint across South Africa and neighbouring countries • Strong market position • Customer service focused / good staff relations • Cash generative • Company structure (empowering, entrepreneurial) • Structured to assimilate acquisitions • Management capabilities • Management shareholding • 8

Activities for the year 9

Acquisitions All acquisitions successfully bedded down and contributing to overall business • Cryogas Housed within United Bulk • Purchase consideration R5.5m (74,2%) • Vision Transport Housed within United Bulk • Purchase consideration R110m (100%) • 10

Infrastructural improvements Completion of R90m Phase 2 development of OneLogix Logistics Hub 11

Financial performance 12

Income statement Change R’m May 2016 May 2015 (%) Revenue 1 778,6 1 368,0 30 Trading profit 151,0 125,1 21 Trading profit margin (%) 8,5 9,1 Profit before taxation 94,7 28,8 Profit for the year from continuing operations 75,9 2,1 Profit for the year from discontinued operations 146,0 Total comprehensive income for the year 75,9 148,1 13

Income statement - continuing operations Trading profit (Rm) and Revenue(Rm) trading margin (%) 160 9.7 8.8 8.6 9.1 8.7 140 8.5 8.0 7.7 120 6.7 100 5.7 80 1778.6 4.7 1368.0 60 1272.1 3.7 1010.1 40 835.4 2.7 20 151.0 1.7 109.0 125.1 73.6 80.5 0 0.7 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 14

HEPS and Core HEPS - continuing operations HEPS and Core HEPS (cents) 34.6 33.9 33.3 31.2 25.7 25.6 25.1 -1.7 HEPS Core HEPS 15

Operating cash flow generated by continuing operations Rm 160.0 151.0 140.0 Tradingprofit 120.0 125.1 Cashflow 100.0 109.0 80.0 80.5 73.6 60.0 60.2 40.0 20.0 69.6 106.7 84.0 119.1 129.8 173.2 0.0 2011 2012 2013 2014 2015 2016 Cash generated from Operations by Continuing Operations Trading Profit Focus to convert trading into cash and discipline on working capital cycles 16

Segmental contribution Revenue 1778.6 1 368.0 904.0 881.8 767.0 352.2 111.8 129.8 ABNORMAL LOGISTICS PRIMARY PRODUCT OTHER LOGISTICS TOTAL LOGISTICS SERVICES 2015 2016 17

Vehicle and trailer summary Number of Number of Average Company vehicles trailers vehicle age Vehicle Delivery Services 265 267 5 CVDS 3 3 1 United Bulk 236 320 4.5 Onelogix Linehaul 51 51 2.5 Onelogix Projex 89 123 5 Jackson Transport 81 127 5 Buffelshoek Transport 41 87 5 Total 766 978 18

Cash utilisation Capex  No dividend declared Fleet R207,7m  Cash preservation  Replacement R71,1m  Future growth opportunities  Expansion R136,6m  Investment in fleet, properties Property Development R103,8m and acquisitions increased  Umlaas Road Phase 2 magnitude of operations R90,0m  Other R13,8m IT R5,3m Other R4,0m Total R320,8m 19

Statement of financial position R’m May 2016 May 2015 Change (%) Non-current assets 1 346,1 1 035,8 30 Current assets 385,0 413,1 (7) Total assets 1 731,1 1 448,9 19 Equity 758,6 688,4 10 Liabilities Non-current liabilities 589,8 419,5 41 Current liabilities 382,7 341,0 12 Total equity and liabilities 1 731,1 1 448,9 19 NAV per share (cents) 286,6 261,6 10 NTAV per share (cents) 221,6 207,9 7 20

Ratios R’m May 2016 May 2015 Return on invested capital (trading profit and associate) (%) 11,2 12,1 Core headline return on equity (%) 12,7 15,5 Gearing ratio (excl cash) (%) 45,4 40,1 Interest cover (times: on trading profit basis) 3,1 5,3 21

Segmental breakdown 22

Segmental breakdown Revenue - 2016 Revenue - 2015 8% 7% 26% 50% 43% 66% Abnormal Logistics Abnormal Logistics Primary Product Logistics Primary Product Logistics Logistics Services Logistics Services 23

Segmental breakdown Trading profit - 2016 Trading profit - 2015 -1% 4% 26% 48% 53% 70% Abnormal Logistics Abnormal Logistics Primary Product Logistics Primary Product Logistics Logistics Services Logistics Services 24

Strategic positioning OneLogix strives to strategically interact through the entire supply chain 1 Supply chain Strategic design and Opportunity Operating profit margin optimisation Logistics supply chain 2 Advanced Tactical planning & scheduling 3 Operational Execution VDS CVDS Projex UBulk Linehaul Jackson Buffels- Cargo hoek Solutions 25

The logistics market • Execute full • Indispensable to client supply chain • Independent • Compatible IT services for company • Cost effective customers • Outsourced • Operational efficiency • Outsourced agent • Multi-service • Specialisation • Transport Service • Logistics • Manufacturer • Price taker services • Own fleet 4PL • Deliveries 3PL 2PL 1PL

OneLogix growth Markets Existing New Existing Market penetration Market development Products New Product development Diversification 27

Abnormal Logistics 28

Abnormal Logistics 920.0 904.0 881.8 Constituents: Revenue 880.0 R’m • Vehicle Delivery Services 840.0 • Commercial Vehicle Delivery Services • OneLogix Projex 800.0 2015 2016 110.0 10.0% 9.8% 89.1 Trading Profit * 90.0 79.7 9.6% 9.9% 9.4% 70.0 R’m 9.2% % * After allocation of pro-rata corporate 50.0 9.0% costs (excluding specific learnership 9.0% 8.8% cost of R16.2 million) 30.0 8.6% 10.0 8.4% 2015 2016 29

VDS 30

VDS - customers 31

VDS - storage 32

CVDS 33

CVDS - customers 34

OneLogix Projex 35

OneLogix Projex - customers 36

Primary Product Logistics 37

Primary Product Logistics 850 767 750 Revenue 650 Constituents: 550 R’m 450 352.2 • OneLogix United Bulk 350 250 • OneLogix Linehaul 150 • Jackson 2015 2016 • Buffelshoek 115 14.0% Trading Profit * 91.8 12.0% 95 12.0% 10.0% 75 R’m 8.0% % * After allocation of pro-rata corporate 55 6.0% 7.4% costs (excluding specific learnership 35 4.0% cost of R16.2 million) 18.2 15 2.0% 2015 2016 38

United Bulk 39

OneLogix Linehaul 40

Jackson Jackson 41

Buffelshoek 42

Other Logistics Services 43

Logistics Services 140.0 Constituents: Revenue 129.8  Atlas 360 R’m 120.0  Cargo Solutions 111.8  QSA  DriveRisk (equity accounted – 100.0 no contribution to group 2015 2016 revenue or trading profit) 6 Trading Profit * 4.1 4 2 * After allocation of pro-rata corporate Margin Margin R’m 0 costs (excluding specific learnership 5,9% N/A -4.2 cost of R16.2 million) -2 -4 2015 2016 -6 44

Atlas 360 45

Atlas 360 - customers 46

Cargo Solutions 47

Cargo Solutions - customers 48

DriveRisk 49

DriveRisk QSA 50

Prospects 51

Prospects • Drive for even greater efficiencies • Focus on regional growth (opportunity for all group companies) • Continue to and evaluate start-up opportunities and investigate acquisitions • Appropriate smaller entrepreneurial businesses  Risks  Rail  Margin squeeze  Complacency  Dependency on vehicle market  Labour relations  Normal operational risks 52