Results presentation For the year ended 31 May 2018 1 Presentation - PowerPoint PPT Presentation

30 – 31 August 2018 Results presentation For the year ended 31 May 2018 1

Presentation overview 1. Overview of the year 2. Group synopsis 3. Financial performance 4. Segmental breakdown 5. Prospects 2

Overview of the year 3

Revenue Up 16% to R2,31 bn Trading profit 1 Up 4% to R168,0 m Impacts : Profit before tax Up 27% to R117,8 m • (excl capital items) Difficult trading conditions EPS & diluted EPS • Earnings growth entirely organic Up 82% to 52,7 cps (continuing operations up 62%) • Net debt significantly reduced HEPS & diluted HEPS Up 14% to 33,7 cps • Disposed of 49% shareholding in (continuing operations up 40%) Core HEPS & diluted core HEPS DriveRisk Up 9% to 40,2 cps (continuing operations up 31%) • Sale and lease back of Umlaas Profit for the year Up 71% to R142,9 m Road concluded • Land adjacent to Umlaas NAV Up 13% to 359,5 cps purchased Cash generated from operations 2 • Up 3% to R303 m Level 2 BEE accreditation • Repurchase of shares Final dividend declared 5 cps 1. Operating profit adjusted for changes relating to share based payments and profit/loss on sale of capital assets 4 2. Before changes in working capital, net finance costs. taxation and dividend

Segmental contribution REVENUE (RM) 2310,1 1995,9 49% 44% 7% 1126,9 1019,3 933,2 907,4 155,3 163,9 ABNORMAL LOGISTICS PRIMARY PRODUCT OTHER LOGISTICS SERVICES TOTAL LOGISTICS 2017 2018 5

Segmental contribution TRADING PROFIT (RM RM) 168,0 161,3 53% 6% 41% 121,6 100,7 96,5 95,1 12,9 14,9 CORPORATE ITEMS ABNORMAL LOGISTICS PRIMARY PRODUCT OTHER LOGISTICS TOTAL LOGISTICS SERVICES -48,8 -63,6 2017 2018 6

Corporate Actions 7

Corporate actions • Cash R69,7m • Profit on disposal – R36,5m Disposed of 49% in Drive Risk Purchased • Sale – R240m • Post-year end event additional Umlaas Road • Settled debt - R133,7m 40ha at sale and lease • Cash consideration R43m • Cash – R106,3m Umlaas Road back facility • 5,2m shares Increase • Cash consideration 8 corporate General share • Projex stakes in transactions repurchase - R15,8m • Buffelshoek companies Pomona AWCA property • Purchase price R16,5 • Empowerment transaction purchase • Atlas 360 and Cranbourne • Improvements R11m Siyaduma Purchase net assets R16m 8

Group overview 9

Specialist logistics service provider Moving forward together 10

Segmentation Primary Abnormal Other Logistics Product Logistics Logistics Services VDS 100% OneLogix United 100% Siyaduma Group 75% Bulk Atlas 360 100% 74,2% Cranbourne 60% TruckLogix 100% OneLogix United Bulk Cryogas Empowerment transaction Purchase of business Siyaduma - OneLogix Linehaul 75% OneLogix Cargo 69,5% incorporated into TruckLogix Solutions OneLogix Projex 92,1% Jacksons 74% OneLogix 69,5% Warehousing Buffelshoek 82% QSA 85% 11

The OneLogix way Well established niche logistics Footprint across South Africa and 1 2 provider neighbouring countries 12

The OneLogix way Strong market position Company structure 3 6 (empowering, entrepreneurial) Customer service focused / good Structured to assimilate acquisitions 7 4 staff relations Corporate | HR IT | BEE | Legal Cash generative Management capabilities 5 8 Net cash resources R124,7 million at 31 May 2018 13

The OneLogix way Shareholding 9 Management 12,7 Direct BEE ownership 10,7 47,4 Institutions 10,4 Brokers 18,8 Individuals / Other 14

Financial performance 15

Statement of comprehensive income R’m May 2018 May 2017 Change (%) Revenue 2 310,1 1 995,9 16 Operating and administrative costs (2 016,5) (1 712,3) 18 Depreciation and amortisation (135,2) (132,9) 2 Profit/(loss) on disposal off PPE 14,5 (2,6) - Operating profit 172,9 148,1 17 Net finance costs (40,6) (57,6) (30) Profit before taxation 132,3 90,5 46 Taxation (26,0) (20,9) 24 Profit from continuing operations 106,3 69,6 53 Profit from discontinued operations - 14,2 - Profit on disposal of discontinued operation 36,5 - - Profit for the year 142,9 83,8 71 16

Statement of comprehensive income - continued Trading Profit (R million) and Revenue (R million) Trading Margin (%) 180,0 9,7 8,6 9,1 160,0 8,7 8,5 8,1 140,0 7,7 7,3 120,0 6,7 100,0 5,7 2310,1 80,0 4,7 1995,9 1778,6 60,0 3,7 1368,0 1272,1 40,0 2,7 151,0 20,0 1,7 109,0 125,1 161,3 168,0 0,0 0,7 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 17

HEPS and Core HEPS HEPS (cents) CORE HEPS (cents) 40,2 36,9 34,6 33,9 33,7 33,3 31,2 29,6 25,7 -1,7 18

Cash generated from operating activities 220,0 170,0 TRADING PROFIT (RM) 168,0 CASH FLOW (RM) 161,3 151,0 120,0 125,1 109,0 70,0 20,0 119,1 129,8 173,2 205,1 137,3 2014 2015 2016 2017 2018 -30,0 Cash generated from Operations Trading Profit Focus: convert trading into cash discipline on working capital cycles 19

Statement of financial position R’m May 2018 May 2017 Change (%) Non-current assets 1 187,7 1 182,3 - Current assets 564,5 412,2 37 Total non-current asset held-for-sale - 256,4 Total assets 1 752,2 1 850,9 (5) Equity 925,7 845,1 10 Liabilities Non-current liabilities 369,4 438,5 (16) Current liabilities 457,1 410,9 11 Non-current liability held-for-sale - 156,4 Total equity and liabilities 1 752,2 1 850,9 (5) NAV per share (cents) 359,5 317,4 13 NTAV per share (cents) 291,9 255,6 14 20

Ratios May 2018 May 2017 Return on invested capital (%) * 11,3 11,0 Core headline return on equity (%) ** 11,9 12,2 Gearing ratio (%) 20,9 30,2 Interest cover (times: on trading profit basis) 4,1 2,9 * Return is calculated by reducing trading profit by the effective income tax rate plus income from associate. The invested capital is an average of shareholder funds plus non controlling interests plus net interest bearing debt for the year. ** Core headline earnings as percentage of average shareholders funds for the year. 21

Vehicle and trailer summary Number of Number of Company vehicles trailers Vehicle Delivery Services 265 265 TruckLogix 6 6 United Bulk 248 243 OneLogix Linehaul 61 61 OneLogix Projex 85 125 Jackson 88 129 Buffelshoek 53 56 Total 806 885 22

Capital expenditure Capex Fleet R89,1m • Expansion R72,4m • Replacement R16,7m Property Development R40,6m IT R6,1m Other R4,4m Total R140,2m 23

Summarised statement of cash flows R’m May 2018 May 2017 Change (%) Net cash generated from operating activities 137,3 205,1 (33) Cash generated from operations before changes in working capital 303,2 294,1 Changes in working capital (65,7) 9,7 Net finance costs (43,0) (57,6) Taxation paid (18,1) (18,6) Dividends paid to shareholders (39,1) (22,5) Net cash flows from investing activities 105,0 (36,1) >100 Net cash flows from financing activities (212,6) (174,7) 22 Net movement in cash resources 29,7 (5,7) Cash resources at beginning of year 95,0 100,0 Exchange (loss)/gain on cash resources (0,1) (0,7) Cash resources at end of the year 124,7 95,0 31 24

General repurchase of shares Dates of repurchase Oct 17 – Jan 18 Number of shares repurchased 5,2 million Total value of shares repurchased R15,8 million • 1,8% of issued share capital • Average purchase price of 304 cps • Repurchased shares have been delisted and returned to authorised but unissued share capital 25

Segmental breakdown 26

Abnormal Logistics 27

Abnormal Logistics 1180,0 1126,9 Constituents: 1110,0 REVENUE 1040,0 • Vehicle Delivery Services RM 970,0 933,2 • TruckLogix 900,0 • OneLogix Projex 830,0 760,0 2017 2018 130,0 121,6 10,0% TRADING PROFIT 110,0 9,0% 96,5 90,0 8,0% 8,0% 7,9% RM 70,0 7,0% Trading profit percentage calculated after allocation of 50,0 6,0% pro-rata corporate costs 30,0 5,0% 10,0 4,0% 28 2017 2018

VDS 29

VDS Storage 30

TruckLogix 31

TruckLogixStorage 32

OneLogix Projex 33

Primary Product Logistics 34

Primary Product Logistics 1150,0 1019,3 907,4 950,0 REVENUE Constituents: 750,0 RM • OneLogix United Bulk 550,0 • OneLogix Linehaul 350,0 • Jackson 150,0 • Buffelshoek 2017 2018 115 10,0% 100,7 TRADING PROFIT 95,2 95 8,0% 75 8,7% RM 6,0% 6,6% 55 Trading profit percentage 4,0% calculated after allocation of 35 pro-rata corporate costs 15 2,0% 2017 2018 35

United Bulk 36

OneLogix Linehaul 37

Jackson 38

Buffelshoek 39

Other Logistics Services 40

Logistics Services 190 163,9 Constituents: 155,2 170 REVENUE 150 ▪ Atlas 360 130 110 RM ▪ Cargo Solutions 90 70 ▪ Warehousing 50 30 10 2017 2018 15,5 6,4% 14,9 TRADING PROFIT 15 6,2% 6,3% 14,5 14 6,0% RM 13,5 Trading profit percentage calculated 12,9 5,8% 13 after allocation of pro-rata corporate 12,5 costs 5,6% 5,8% 12 11,5 5,4% 41

Atlas 360 42

Cargo Solutions 43

Warehousing 44

Prospects 45