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SANTOVA Analyst Presentation 15 th May 2014 Santova Introduction To Santova Group Specialist Supply Chain Solutions Performance In The Context of The Logistics Industry Annual Financial Results Analysis 2014 Strategic Initiatives

  1. SANTOVA Analyst Presentation 15 th May 2014

  2. Santova Introduction To Santova Group Specialist Supply Chain Solutions Performance In The Context of The Logistics Industry Annual Financial Results Analysis 2014 Strategic Initiatives Opportunities And Future Strategy

  3. Statement of Purpose “ Businesses want more authority over operational costs. ”  The application of an effective supply chain management strategy that targets silo optimization without sacrificing end-to- end visibility and control.  Innovative global supply chain solutions that result in clients achieving and sustaining competitive differentiation.  Client – centric, recognise that our clients’ needs are unique.  In tune with constantly changing trends and dynamics in the market place.  Ensure flexibility, innovation and delivery on assurances.

  4. GROUP STRUCTURE Santova Ltd (South Africa) Santova Santova Santova Supply Chain Santova W.M. Shipping Logistics Logistics Logistics Management Advisory Logistics (United Kingdom) (United Kingdom) (Australia) (Hong Kong) Services (Netherlands) (International Division) Rotterdam Schiphol Heathrow Brentwood Felixtowe Bristol Santova Birmingham Patent Logistics Offices (Mainland China) Santova Financial Santova Santova Express Santova Logistics Services NVOCC (South Africa) (South Africa) (South Africa) (South Africa) Durban, Johannesburg, Cape Town, Port Elizabeth, Pietermaritzburg, Sasolburg In addition to our Own Santova Offices, our International Network of exclusive partners Spans 5 Continents with over 450 offices

  6. Specialist Supply Chain Solutions TRADITIONAL CLEARING & INTERNATIONAL SUPPLY CHAIN LOGISTICS BUSINESS FORWARDING BUSINESS MODEL Intelligent Solution Commodity “Solution Based” “Rate Based” Freight Quality Warehousing & Freight Forwarding Forwarding Control Distribution Components Customs & Excise Inventory INTEGRATED STRATEGIC Clearing Management Customs & Excise Clearing LOGISTICS MANAGEMENT Supply Chain SOLUTIONS IT Systems & Management Integration Services Warehousing & Delivery Procurement & Insurance Financial Services Packaging Domestic Multiple Geographies Management of Assembling, integrating and managing activities into key supply chain independent functions processes rather than managing individual functions. Impact Staff Dependent High Visibility Low Risk Reduced Total Low Visibility Supply Chain Cost Process and Technology Driven High Risk

  7. Supply Chain Management Landscape Information Flow Performance EDI Transparency Measurement Statistics Reports Real-Time Visibility Process Automation Management Goods Goods Goods Goods Raw Materials Supplier Manufacturer Retailer Consumer Reverse Reverse Logistics Logistics CHALLENGES • Inferior Quality • • Limited Visibility • Expensive Distribution • Demand Variability Short Shipments TYPICAL • Stock Availability • • Excess Inventory • Lack of Agility • POS Data Accuracy Late Deliveries • Cash Flows • • Insufficient Inventory • High barrier to new Poor Communication • High Logistics Costs • Slow Response market entry OPPORTUNITIES • Strategic Sourcing • • Production Planning • Inventory Optimisation • Demand Planning Supplier Performance TYPICAL • Quality Controls at • S&OP • Distribution Network • Accurate Management • • WMS Management Source Integrated Available to Optimisation Forecasting • Price Tagging at • Supply Chain Audit • Optimal Channel Selection Promise (ATP) • • Cross docking • VAS at source Source Consolidations • Business Process Definition and Re- • Channel Strategy Development • Inventory Management/Optimisation SCM TOOLKIT • Supplier Scorecards/Metrics • Distribution Network Planning engineering • Demand Driven Planning • Supply Chain Risk Mitigation • Cost to Serve Analysis • Business Case Development • Defining & Structuring Managed • Fleet Mix Modelling & Optimisation • Project Management Services or KPI’s Private and Confidential [Client Logo] Ensuring Supply Chain Strategy is aligned to Business Strategy

  8. HISTORICAL PERFORMANCE

  9. SANTOVA PERFORMANCE OVER TIME Diluted Basic Earnings Per Share Profit Before Tax 50,000 25.00 40,000 20.00 22.12 40,014 Cents Millions 30,000 15.00 18.00 33,809 15.82 30,063 20,000 10.00 12.29 23,216 5.00 10,000 2.90 6,853 0.00 0 2010 - 2014 2010 - 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Price Earnings Ratio Operating Profit Margin (%) 10.00 25.00 24.20 23.10 8.00 20.00 23.80 Percentage Multiple 6.00 15.00 22.10 10.00 9.68 4.00 12.70 7.90 7.35 5.00 7.48 6.02 5.07 2.00 0.00 0.00 2009 - 2014 2010 - 2014 2009 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

  10. Net Asset Value Per Share 160.00 140.00 120.00 145.00 100.00 80.00 Cents 108.20 60.00 92.12 73.70 40.00 66.00 20.00 61.90 0.00 2009 - 2014 Market Capitalisation R 241 698 600 2009 2010 2011 2012 2013 2014 vs. Underlying value of offshore subsidiaries United Kingdom Private Company Price Index 3Q 2013 Current pre-tax PE ratio (Enterprise Value/EBITDA) is 12.1 for ‘trade buyers’ of private companies and 9.1 for ‘private equity buyers’.

  11. CONTRIBUTION BY Profit After Tax GEOGRAPHY Feb 2014 South Africa 56% Offshore 44% 17087 20000 Year on Year Growth 15000 5 7722 Millions Profit After Tax Feb 2013 vs. Feb 2014 10000 3052 2148 777 25% South Africa 5% Offshore 56% 5000 7% 10% 3% 0 250% South Africa United Kingdom Hong Kong Europe Australia 200% Global Offices Excluding costs of 204% 150% UK acquisition 26% Percentage 100% 81% 50% 62% 5% -52% 0% -50% -100% Return Per Employee South Africa United Kingdom Hong Kong Europe Australia Profit After Tax Per Employee Feb Global Offices 2014 Gross Margin (%) 400 Costs of listing and (Turnover/Gross Billings) Thousands acquisitions have 358 297 an effect 218 200 South Africa United Kingdom Netherlands Hong Kong Australia 4,7% 16,1% 14,7% 18,8% 10,6% 130 69 0 South Africa United Kingdom Hong Kong Europe Australia Global Offices

  12. SHARE TRADE VOLUMES Closing Share Price At Year End Liquidity – until 2013 shares were tightly held Limited publicity – low profile 200 Bottom of the growth curve – “Small cap vulnerability” 172 Limited understanding of the Business Model Cents 100 106 81 Management and staff 20,2% 80 30 Total number of shareholders 1 433 0 No. of shareholders holding 58% of the Company 23 2010 2011 2012 2013 2014 No. of shareholders holding 82% of the Company 136 Financial Year End 20,000,000 Trade Volumes 17,643,718 18,000,000 Linear (Trade Volumes) 16,000,000 14,762,601 14,000,000 12,000,000 11,580,675 Units 10,000,000 8,724,659 8,093,052 8,187,509 7,520,780 8,000,000 6,111,746 6,000,000 7,618,841 3,718,864 5,971,047 3,179,056 4,000,000 1,707,644 2,092,847 3,878,947 3,575,608 1,220,659 2,000,000 1,787,390 1,431,180 1,756,393 385,896 995,067 1,085,017 1,405,980 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 MAR 2012 - FEB 2014

  13. SANTOVA and THE INDUSTRY Unique characteristics;  A non-asset based business ‘favouring’ a variable cost structure;  In a relatively short period of time established strategic offices globally;  Transformed during a ‘flat’ 6 year economic cycle into sophisticated business model whilst at the same time generating significant year-on-year growth in earnings, internationally.  IT and supply chain capability is enabling Santova to compete on a ‘playing field’ that is typically ‘reserved’ for multi-national ICONS;  The unique business model makes it difficult if not impossible to compare Santova to any other South African listed logistics business;

  14. FINANCIAL RESULTS ANALYSIS February 2014

  15. FINANCIAL HIGHLIGHTS Operating Margin 22.1% increase in total increased from 23.1% to Billings to R3.221 billion 24.2% 26.9% increase in 40.6% increase in HEPS Operating Income to from 17.62 to 24.77 R51.8 million cents per share 34.2% increase in NAV Final dividend of 3.25 from 108.4 to 145.5 cents declared – a 30% cents per share increase

  16. INFLUENCING FACTORS Internal/Technical External/Market • • No acquisitions or disposals FOREX - the weakening of the during the year rand • • IFRS 10 Deconsolidation of The Economy in SA and the effect Guardrisk Cell Captive on trade volumes – low GDP growth • Inclusion of WM Shipping for a • full 12 months Significant competition and pressure on margins particularly • Completion of 1 st WM Shipping in SA warranty period • Rejuvenated performances from Hong Kong and Netherlands • Continued strong contribution from Financial Services • Consolidation and centralisation of certain divisions

  17. FOREX EFFECT 2013 2014 Move % IMPACT USD Closing 8.84 10.79 1.95 22% Opposing Effects on Average 8.36 9.97 1.61 19% Revenue GBP 2013 2014 • In SA majority on revenue Closing 13.37 17.98 4.61 34% is invoiced in Rands but Average 13.26 15.74 2.48 19% underlying calculation is based on the imported cost of goods and 19 transport in US$ 18 • Decline in trade volumes ZAR/GBP 17 as importers react to 16 weaker rand 15 14 13

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