Results presentation For the year ended 30 June 2012 Agenda - PowerPoint PPT Presentation

Results presentation For the year ended 30 June 2012

Agenda » Highlights » Divisional performance » Financial Review » Financial Review » Group prospects and strategy » Questions » Appendix » Appendix 2

Highlights Revenue R80 830m 25% Operating profit R5 638m 25% (Margin maintained at 7,0%) HEPS 1566 cps 14% Core EPS * 1623 cps 32% Dividend per share ^ Dividend per share ^ 680 cps 680 cps 42% * Core EPS excludes once-off non-operational items, the most significant being: − 147 cps income from the Lereko BEE structure in the prior period − 67 cps amortisation of intangibles on acquisitions in the current period ^ Dividend pay out ratio of 42% of Core EPS; historic dividend yield of 3 6 % based on Dividend pay out ratio of 42% of Core EPS; historic dividend yield of 3,6 % based on 20/8/2012 price of R188 per share 3

Improving profit trend Excl. businesses sold or unbundled Revenue (LHS) Operating Profit (RHS) 3.0 60 3 3 2 6 2.6 2.4 2.1 1.8 40 2 42.4 Rbn 1.4 38.4 1.3 33.3 1.2 31 4 31.4 27.8 25.7 20 1 23.6 28.6 0 0 Dec 08 June 09 Dec 09 June 10 Dec 10 June 11 Dec 11 Jun 12 Core EPS HEPS 867 867 839 900 756 727 725 653 645 581 533 600 503 ps 472 432 432 431 431 c 283 269 300 222 0 Dec 08 June 09 Dec 09 June 10 Dec 10 June 11 Dec 11 Jun12 4

Performance of the three business pillars Distribution, Retail & Car Rental & Tourism Logistics Financial Services Revenue = R3,8 bn Revenue = R51,9 bn Revenue = R27,7 bn 15% 15% 22% 22% 34% 34% *PBT = R3,5 bn *PBT = R247m *PBT = R1,2 bn 17% 23% 27% The Three Pillars of Imperial * Core PBT 5

Business conditions in key markets » Strong growth continued in the SA motor vehicle market » Manufacturing sector of the SA economy is currently weak » Manufacturing sector of the SA economy is currently weak » German export industries enjoyed significant growth despite European debt crisis, assisted by a weaker Euro » Car rental remains highly competitive. Pressure on rental rates are however easing » Insurance underwriting conditions were weaker than the prior year, particularly in the short term motor comprehensive market » Current cycle in the motor industry favours our Financial Services division 6

Southern Africa logistics

Southern Africa logistics Revenue (Rm) Operating profit (Rm) Operating Margins +19% +16% 6 2% 6.2% 5.7% 16 457 5.5% 910 4.9% 13 788 786 2012 2011 2012 2011 2012 2011 H2 H1 2012 2012 Satisfactory performance under tough trading conditions » Manufacturing sector under pressure » Manufacturing sector under pressure » Market is price competitive » Offset by acquisitions, significant contract gains and renewals » African business continues to grow » African business continues to grow 8

Southern Africa logistics Revenue by activity Revenue by sector 10% 42% 35% 35% 38% 7% 7% 9% 7% Steel and Metals 2% 27% 6% 3% 4% 4% 5% 5% FMCG Fuel and Gas Distribution and warehousing Distribution and warehousing Mining Wood and paper 4 PL Cement, bricks, constructon Agriculture Transport Chemicals Glass Glass Steel, metals and auto Other 9

International logistics

International logistics (EURO) Revenue (€m) Operating profit (€m) Operating Margins +52% +55% 5.7% 5.7% 5.4% 5.3% 1 087 59 5.0% 716 38 38 2012 2011 2012 2011 2012 2011 H2 H1 2012 2012 Results exceeded expectations » German export industries enjoyed significant growth » German export industries enjoyed significant growth » New contracts gained and record volume growth experienced » Acquisition of Lehnkering contributed positively » Excluding Lehnkering revenue and operating profit grew 11% and 16% » Excluding Lehnkering, revenue and operating profit grew 11% and 16% 11

International logistics (ZAR) Revenue (Rm) Operating profit (Rm) Operating Margins +64% +71% 5.6% 5 3% 5.3% 5.1% 4.9% 11 247 598 6 848 350 2012 2011 2012 2011 2012 2011 H2 H1 2012 2012 Exchange rate benefit » 2012 Average R/€: 10.38 vs 2011 Average R/€: 9.49 » 2012 Average R/€: 10.38 vs 2011 Average R/€: 9.49 » Excluding Lehnkering revenue and operating profit grew by 21% and 27% respectively 12

International logistics Revenue by sector 18% 28% 2% 3% 3% 3% 4% 20% 20% 6% 6% 13% Chemicals Steel manufacturing Automotive Paper/Packaging Mechanical engineering Energy F Food d Aliminium Apparel Imperial Shipping Group Sub contractor services Lehnkering Panopa p Neska Brouwer Shipping 13

Strong growth in German exports Exchange Rate EUR/USD Employment GDP Export 160 160 154 149 148 150 147 141 141 143 143 144 140 137 137 143 138 130 127 133 125 120 120 111 110 109 109 108 108 110 107 112 105 105 102 101 100 100 100 106 105 100 104 103 103 102 101 100 100 100 100 100 100 100 100 100 100 90 80 80 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 14

Car rental and tourism

Car Rental and Tourism Revenue (Rm) Operating profit (Rm) Operating Margins +15% +8% 10.8% 10.6% 10.0% 9.1% 380 3 801 351 3 313 2012 2011 2012 2011 2012 2011 H2 H1 2012 2012 Improved performance in H2 year-on-year » Car rental market remains highly competitive » Car rental market remains highly competitive » Pressure on rental rates easing; good volume growth and demand » Sluggish used car market; stock position improved significantly » Low inbound tourism volumes persist; tourism business restructured and » Low inbound tourism volumes persist; tourism business restructured and consolidated to reduce costs 16

Distributorship 17

Distributorships Revenue (Rm) Operating profit (Rm) Operating Margins +29% +33% 8.8% 8.7% 8.6% 8.4% 28 318 2 456 21 947 1 844 1 844 2012 2011 2012 2011 2012 2011 H2 H1 2012 2012 Strong growth continues » New vehicle registrations in SA 20% higher, compared to market growth of 13% » Improved stock availability allowed market share gains; H2 volumes up 34% yoy » Revenue from rendering of services increased by 46% » Auto parts division performed satisfactorily » Goscor performed very well » Goscor performed very well » NAC disposal in progress 18

Cumulative sales of vehicle brands distributed 800000 722892 700000 660758 600000 567176 482751 500000 426630 400000 400000 368523 368523 285600 300000 192334 200000 107363 100000 60227 60227 37112 19113 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD YTD Note: Includes AMH, Chery, Foton, Mitsubishi, Renault and Tata – PC and LCV 19

Automotive parts and industrial products » Pursued strategy to add aftermarket vehicle parts, components, industrial equipment and new areas of distribution » Acquisitions of Midas Turbo Exchange Goscor E-Z-GO Datadot Segway and » Acquisitions of Midas, Turbo Exchange, Goscor, E-Z-GO, Datadot, Segway and the recently acquired Bobcat are part of this strategy » These businesses contributed R7 billion of turnover and R 503 million operating profit for the period (9% of group operating profit) p p ( g p p g p ) » Continue to pursue opportunities in these segments due to their asset-light nature and good returns on capital O Operating Profit (Rm) ti P fit (R ) Operating Margin O ti M i Revenue (Rm) 7.2% +16% +23% 6.8% 503 6 986 6 986 410 6 023 2012 2011 2012 2011 2012 2011 20

Automotive Retail

Automotive Retail Revenue (Rm) Operating profit (Rm) Operating Margins +14% +15% 3 2% 3.2% 2.9% 2.9% 19 560 2.6% 17 150 573 497 2012 2011 H1 2012 H1 2011 2012 2011 H2 H1 2012 2012 Good growth in operating profit » New passenger car sales up 18%, ahead of market growth in this segment of 13% New passenger car sales up 18%, ahead of market growth in this segment of 13% » Notable shift to entry level vehicles » Volume growth in used vehicles was subdued » Commercial vehicle unit sales up 13% p » Beekman Canopies performed well; Lower volumes at Jurgens Ci 22

Financial Services

Financial Services Operating profit (Rm) Revenue (Rm) +17% +2% 775 760 3 999 3 409 2012 2012 2011 2011 2012 2012 2011 2011 Operating profit split Net Underwriting Margins Investment income, including fair value adjustments 11.4% U d Underwriting result iti lt Other Financial Services 9.0% 775 7.8% 760 6.8% 175 206 431 244 344 319 95 80 111 133 356 235 225 131 131 2012 2011 H2 2012 H1 2012 2012 2011 H2 2012 H1 2012 24

Financial services » Regent underwriting result declined by 20%; weaker underwriting conditions in short term motor comprehensive market » Individual life had a good year » Investment returns were down - lower interest rates & volatile equity markets Investment returns were down lower interest rates & volatile equity markets » Regent Botswana and Lesotho also performed well » Growth in Other Financial Services (mainly LiquidCapital) was exceptional and it performed ahead of expectation » Successful and growing finance joint ventures » Strong growth in the number of new maintenance plans provides valuable annuity earnings underpin to future profits it i d i t f t fit » Patterns of maintenance and service plan run-off established leading to sustainable R117m additional profit sustainable R117m additional profit 25