Imperial Logistics — Investor Presentation (June 2020)
34 slides from Imperial Logistics's investor presentation, June 2020
Slide 1: Investor briefing
Investor briefing June 2020
Slide 2: Our business positioning
Imperial’ beyond possibility Our business positioning
Slide 3: Who we are
Who we are African and European focused Focus on five key industries Listed on the Ranked among Take our clients’ products provider of logistics – healthcare, consumer, Johannesburg Stock Exchange in the top 30 global to some of the fastest growing & and market access solutions automotive, chemicals
Slide 4: Geographic footprint
Geographic footprint In-country operations Countries serviced through partnership network Pharmaceutical and consumer health distributors Consumer goods distributors Freight management Sourcing procurement 4
Slide 5: Our solutions: market access
Our solutions: market access • We take ownership of product inventory to provide our clients with unparalleled access to their end-consumers through an integrated logistics & sales service • Leverage sourcing, warehousing, distribution, synchronisation & transportation management as enablers Our cor
Slide 6: Our solutions: logistics
Our solutions: logistics • With deep expertise, we expertly manage the movement of goods on behalf of clients between specified sources & destinations • Skilfully navigate different transportation modes (road, river, rail, air and ocean) & utilise a range of transportation types • In order to reduce
Slide 7: Our solutions & industry positioning
Our solutions & industry positioning Revenue by industry (%) Revenue by business (%) South Africa African Regions International South Africa African Regions International 9% 4% 8% 3% 6% 8% 36% 34% 15% 42% 25% 40% 44% 56% 57% 66% 30% 31% 86% Consumer Industrial Chemicals & Energy Market access Health
Slide 8: End-to-end value chain
End-to-end value chain 6a 7a Air & ocean Retail services Consumer Raw materials 1a demand generation Exports Air & ocean; 5a sourcing & procurement Formal retail 2 Manufacturing 3a Warehousing 4 Distributors Informal retail Air & ocean; sourcing & 5b procurement Retail services Imports Packaging 1b
Slide 9: Scale & operational agility
Scale & operational agility South Africa African Regions International • Consumer goods deliveries annually • Provide point of care & retailer level deliveries • 23 automotive warehouses in Europe deliver >50 000 points annually to >4 200 delivery points in Kenya, >1 300 in Ghana value-add logistic
Slide 10: Advancing our strategic transformation journey
Advancing our strategic transformation journey
Slide 11: Navigating extraordinary times
Navigating extraordinary times • We are managing businesses in a time of great uncertainty • As an essential services business our priorities are to: › protect our staff & operations from COVID-19 infection › aid the economies & citizens of the countries in which we operate by delivering vital medic
Slide 12: Advancing our strategic transformation journey
Advancing our strategic transformation journey We have embarked on a journey to transform Imperial from a regional portfolio of businesses to offer an integrated, end-to-end service which will deliver simplicity, flexibility & visibility to clients - supporting our positioning as the ‘Gateway to Afr
Slide 13: The 6 pillars of our business strategy
The 6 pillars of our business strategy Operate as ‘One Imperial’, Extensive Africa footprint - International footprint Go digital, be digital, People are our greatest Integrating environmental, offering unique end-to- serving as a gateway to & expertise enable digital asset social & governance end s
Slide 14: Progressing against strategy initiatives
Progressing against strategy initiatives • The decisive strategic actions that we undertook as a business over the last 15 months have stood us in good stead as we now navigate these uncertain times › removing c. R385 million p.a of fixed overhead costs › the closure of the CPG business in South Afr
Slide 15: Strategic progress: growing in Africa, including South Africa
Strategic progress: growing in Africa, including South Africa • Four new acquisitions were successfully concluded at the end of December 2019 - all enhancing market access position in Africa with R584 million spent • Simplified Solutions in Healthcare added new principals of c. USD12m with a healthy
Slide 16: Strategic progress: aligning our International portfolio
Strategic progress: aligning our International portfolio • Finalised agreement for the disposal of European shipping business - at a competitive price & in line with our original timeline • Acquisition of Mex Logistics - a Turkish air & ocean freight forwarding company • Moved Imperial Clearing & Fo
Slide 17: Strategic progress: people
Strategic progress: people • Appointed a Group Chief People Officer • Key Black & female management appointments made at both group EXCO & the South Africa EXCO/senior management levels • Transforming our culture – key to achieving our ‘One Imperial’ strategic intent • Established & advancing our gl
Slide 18: Strategic progress: innovation
Strategic progress: innovation • Appointed a Group Chief Digital Officer • Our innovation fund in partnership with Newtown Partners continues to record significant activity, leveraging disruptive innovation & new technologies for competitive advantage • Our key digital initiatives include: › Control
Slide 19: Strategic progress: ESG
Strategic progress: ESG • Integrating ESG into our strategy & business practices, including establishing a CSI/ESG Committee • Developed & rolling out group wide ESG & climate change policies & guidelines (the first for the group) • Advancing ESG reporting standards & global membership (including gr
Slide 20: COVID-19
Imperial’ beyond possibility COVID-19
Slide 21: Responding with diligence, tenacity & empathy
Responding with diligence, tenacity & empathy • COVID-19 is, first & foremost, a humanitarian challenge & our response has been a deeply humane one • Our response to the pandemic encompasses these distinct phases: › Resolve: addressing the immediate challenges COVID-19 represents to our workforce, c
Slide 22: Playing our part
Playing our part We continue to support key stakeholders in 32 countries of operation: • Providing support to staff & prioritising their safety • Achieving high service levels - in certain cases we have put in additional capacity so that our clients can meet increased demand • Continue to service ou
Slide 23: Preparing our business for a post-pandemic world
Preparing our business for a post-pandemic world Socio-economic shift Anticipated response Border restrictions & other limitations on the movement of goods & people Shortening supply chains & support for local manufacturing - major logistics & market will see the growing prevalence of local manufact
Slide 24: Operating performance for 9 months ended 31 March 2020
Operating performance for 9 months ended 31 March 2020
Slide 25: Operating performance for 9 months ended 31 March 2020
Operating performance for 9 months ended 31 March 2020 • Delivered an unsatisfactory performance from continuing operations (excluding European shipping) › grew revenue › reduced operating profit • Benefitted from new contract gains, significant cost cutting, portfolio rationalisation & restructurin
Slide 26: South Africa: performance for 9 months ended 31 March 2020
South Africa: performance for 9 months ended 31 March 2020 • Double-digit revenue growth • Operating profit declined due to COVID-19 & related once off costs • c. 70% of this business is currently in operation; up from c.55% at end of March & April • Some key sectors still impacted › tobacco industr
Slide 27: African Regions: performance for 9 months ended 31 March 2020
African Regions: performance for 9 months ended 31 March 2020 • Resilient performance • Mainly engaged in healthcare & consumer goods sales & distribution - with close to 100% of revenue generated from these two industries • Increased revenue; benefitted from new acquisitions & new contract gains •
Slide 28: International: performance for 9 months ended 31 March 2020
International: performance for 9 months ended 31 March 2020 • Most impacted by the pandemic • Significant reduction in volumes & activities in March & April • Automotive contract logistics & related transport businesses were most impacted (c. 36% of revenue generated from automotive) • Volumes in ch
Slide 29: Maintaining a sound financial position
Maintaining a sound financial position
Slide 30: Maintaining a sound financial position
Maintaining a sound financial position • Safeguarding & preserving our balance sheet, managing debt levels to remain within bank covenants, maintaining liquidity & preserving cashflows › proactive measures to reduce fixed overhead costs › moratorium on all capex spend › optimising working capital ›
Slide 31: Guidance for F2020
Imperial’ beyond possibility Guidance for F2020
Slide 32: Guidance for FY2020
Guidance for FY2020 • Many of our markets are facing increasing uncertainty & volatility • The impact of the COVID-19 pandemic will significantly impact our operations & performance in the short term • At this stage, for continuing operations (excluding European shipping) in F2020, we anticipate: ›
Slide 33: Thank you
Thank you www.imperiallogistics.com
Slide 34: Disclaimer
Disclaimer Certain statements made in this presentation constitute forward-looking statements. Forward-looking statements are typically identified by the use of forward-looking terminology such as ‘believes’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘intends’, ‘estimates’, ‘plans’, ‘assumes’ or
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