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

Results presentation

For the year ended 31 May 2018

30 – 31 August 2018

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Presentation

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

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Overview of the year

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• Difficult trading conditions
• Earnings growth entirely organic
• Net debt significantly reduced
• Disposed of 49% shareholding in

DriveRisk

• Sale and lease back of Umlaas

Road concluded

• Land adjacent to Umlaas

purchased

• Level 2 BEE accreditation
• Repurchase of shares

Impacts:

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Revenue Up 16% to R2,31 bn Trading profit 1 Up 4% to R168,0 m HEPS & diluted HEPS

(continuing operations up 40%)

Up 14% to 33,7 cps Core HEPS & diluted core HEPS

(continuing operations up 31%)

Up 9% to 40,2 cps Profit for the year Up 71% to R142,9 m NAV Up 13% to 359,5 cps Cash generated from operations 2 Up 3% to R303 m Final dividend declared 5 cps

1. Operating profit adjusted for changes relating to share based payments and profit/loss on sale of capital assets 2. Before changes in working capital, net finance costs. taxation and dividend

Profit before tax

(excl capital items)

Up 27% to R117,8 m EPS & diluted EPS

(continuing operations up 62%)

Up 82% to 52,7 cps

Segmental contribution

933,2 907,4 155,3 1995,9 1126,9 1019,3 163,9 2310,1 ABNORMAL LOGISTICS PRIMARY PRODUCT LOGISTICS OTHER LOGISTICS SERVICES TOTAL

REVENUE (RM)

2017 2018

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49% 44% 7%

Segmental contribution

96,5 100,7 12,9

• 48,8

161,3 121,6 95,1 14,9

• 63,6

168,0 ABNORMAL LOGISTICS PRIMARY PRODUCT LOGISTICS OTHER LOGISTICS SERVICES TOTAL

TRADING PROFIT (RM RM)

2017 2018

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53% 41% 6%

CORPORATE ITEMS

Corporate Actions

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Corporate actions

8 corporate transactions

Disposed of 49% in Drive Risk Umlaas Road sale and lease back General share repurchase Pomona property purchase Siyaduma AWCA Increase stakes in companies Purchased additional 40ha at Umlaas Road facility

• Post-year end event
• Cash consideration R43m

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• Cash R69,7m
• Profit on disposal – R36,5m
• Sale – R240m
• Settled debt - R133,7m
• Cash – R106,3m
• 5,2m shares
• Cash consideration
• R15,8m

Purchase net assets R16m

• Empowerment transaction
• Atlas 360 and Cranbourne
• Projex
• Buffelshoek
• Purchase price R16,5
• Improvements R11m

Group

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Moving forward together

Specialist logistics service provider

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Other Logistics Services

VDS TruckLogix OneLogix Projex

Abnormal Logistics Primary Product Logistics

OneLogix United Bulk OneLogix Linehaul Jacksons Buffelshoek Atlas 360 Cranbourne OneLogix Cargo Solutions QSA OneLogix United Bulk Cryogas

Segmentation

100% 100% 92,1% 100% 100% 60% 74,2% 75% 74% 82% 69,5% 85%

Purchase of business Siyaduma - incorporated into TruckLogix 11

Siyaduma Group 75% OneLogix Warehousing 69,5%

Empowerment transaction

The OneLogix way

Well established niche logistics provider Footprint across South Africa and neighbouring countries 1 2

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The OneLogix way

Cash generative Structured to assimilate acquisitions Customer service focused / good staff relations Management capabilities Strong market position 3 6 4 7 5 8 Corporate | HR IT | BEE | Legal Company structure

(empowering, entrepreneurial)

Net cash resources R124,7 million at 31 May 2018

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The OneLogix way

Shareholding 9

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47,4 18,8 10,4 10,7 12,7 Management Direct BEE ownership Institutions Brokers Individuals / Other

Financial performance

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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

Statement of comprehensive income

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Revenue (R million) Trading Profit (R million) and Trading Margin (%)

1272,1 1368,0 1778,6 1995,9 2310,1

2014 2015 2016 2017 2018

109,0 125,1 151,0 161,3 168,0 8,6 9,1 8,5 8,1 7,3 0,7 1,7 2,7 3,7 4,7 5,7 6,7 7,7 8,7 9,7 0,0 20,0 40,0 60,0 80,0 100,0 120,0 140,0 160,0 180,0 2014 2015 2016 2017 2018

Statement of comprehensive income - continued

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31,2

• 1,7

25,7 29,6 33,7 33,3 33,9 34,6 36,9 40,2

HEPS (cents) CORE HEPS (cents)

HEPS and Core HEPS

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Cash generated from Operations Trading Profit 119,1 129,8 173,2 205,1 137,3 109,0 125,1 151,0 161,3 168,0

• 30,0

20,0 70,0 120,0 170,0 220,0 2014 2015 2016 2017 2018

CASH FLOW (RM) TRADING PROFIT (RM)

Cash generated from

• perating activities

Focus: convert trading into cash discipline on working capital cycles

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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

Statement of financial position

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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.

Ratios

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Company Number of vehicles Number of 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

Vehicle and trailer summary

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Capex Fleet R89,1m

• Expansion

R72,4m

• Replacement

R16,7m

Property Development R40,6m IT R6,1m Other R4,4m Total R140,2m

Capital expenditure

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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

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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

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• 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

Segmental breakdown

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Abnormal Logistics

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Constituents:

• Vehicle Delivery Services
• TruckLogix
• OneLogix Projex

REVENUE TRADING PROFIT

96,5 121,6

7,9% 8,0%

4,0% 5,0% 6,0% 7,0% 8,0% 9,0% 10,0% 10,0 30,0 50,0 70,0 90,0 110,0 130,0 2017 2018 RM 933,2 1126,9 760,0 830,0 900,0 970,0 1040,0 1110,0 1180,0 2017 2018 RM Trading profit percentage calculated after allocation of pro-rata corporate costs

Abnormal Logistics

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VDS

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VDS Storage

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TruckLogix

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TruckLogixStorage

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OneLogix Projex

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Primary Product Logistics

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Constituents:

• OneLogix United Bulk
• OneLogix Linehaul
• Jackson
• Buffelshoek

907,4 1019,3 150,0 350,0 550,0 750,0 950,0 1150,0 2017 2018 RM 100,7 95,2 8,7% 6,6% 2,0% 4,0% 6,0% 8,0% 10,0% 15 35 55 75 95 115 2017 2018 RM

Primary Product Logistics

Trading profit percentage calculated after allocation of pro-rata corporate costs

REVENUE TRADING PROFIT

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United Bulk

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OneLogix Linehaul

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Jackson

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Buffelshoek

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Other Logistics Services

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Constituents:

▪ Atlas 360 ▪ Cargo Solutions ▪ Warehousing

155,2 163,9 10 30 50 70 90 110 130 150 170 190 2017 2018 RM

Logistics Services

Trading profit percentage calculated after allocation of pro-rata corporate costs

REVENUE TRADING PROFIT

12,9 14,9 5,8% 6,3% 5,4% 5,6% 5,8% 6,0% 6,2% 6,4% 11,5 12 12,5 13 13,5 14 14,5 15 15,5 RM

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Atlas 360

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Cargo Solutions

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Warehousing

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Prospects

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• Maintain and grow market share

(organic growth)

• Focus on efficiencies within each

company of the group

• Advantageous positioning with BEE

accreditation

• Continue to investigate

₋ Acquisitions ₋ New start up businesses

₋ Tough trading conditions likely to remain for foreseeable future

• Margin squeeze
• Complacency
• Rail
• Normal operational risks

Risks and prospects

Risks:

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Thank you

For any further Investor Relations assistance please contact: Ian Lourens (CEO) 011-920-9150 | ianl@onelogix.com

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Vanessa Rech (Keyter Rech Investor Solutions) 087-351-3814 | vrech@kris.co.za

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