results presentation...property development r82.8m • umlaas road iii development r58m • united...

Results presentation

1

For the year ended

31 May 2019

29-30 August 2019

Overview of the year

Specialist logistics service provider

2

Final results for year ended 31 May 2019 3

Executive summary

• Growth achieved despite tough second half

• Margin pressure

• Strong cash resources at year end

• Net debt significantly reduced

• Umlaas Road Phase III development allocation reduced

• Ability to cultivate opportunities

• Level 2 BEE accreditation reaffirmed

Revenue Up 19% to R2,74 bn

Profit before tax(excl capital items)

Up 9% to R128,7 m

HEPS & diluted HEPS Up 11% to 37,3 cps

Core HEPS & diluted core HEPS Up 9% to 43,7cps

NAV per share Up 8% to 389,7cps

Final dividend 5 cps

Cash generated from operational activities

Up 167% to R366,8 m

-

Impacts

The OneLogix Way

4

Final results for year ended 31 May 2019

The OneLogix way

Well established niche logistics provider

5

Footprint across South Africa and neighbouring countries

Strong market position

Company structure(empowering & entrepreneurial)

1 2 3

Customer service focused / good staff relations

Structured to assimilate acquisitions (Corporate, HR, IT, BEE, Legal)

Cash generative Management capabilities

5 6 7 8

4


The OneLogix way (continued)

Management

Brokers Individuals /Other

51,8%Direct BEE ownership

19,0% 12,4%Institutions

11,4% 5,4%

51,8

1912,4

11,4

5,4

9 Shareholding

Umlaas Road Phase lll

7


Umlaas Road Phase lll

Segmental breakdown

9

Abnormal Logistics

10

Revenue contribution to group

48%

11

26

,9

13

02

,5

REVENUE (RM)

2018

2019

12

1,6

12

0,9

TRADING

PROFIT (RM)

100%

100%

92,1%

51%Trading Profit contribution to group ** After allocation of pro-rata corporate costs


VDS


VDS Storage


TruckLogix


TruckLogix storage


OneLogix Projex

Primary Product Logistics

16


44%

10

19

,3 12

12

,2

REVENUE (RM)

2018

2019

95

,1

96

,4

TRADING

PROFIT (RM)

42%Trading Profit contribution to group *

100%

75%

74%

82%

74,2%* After allocation of pro-rata corporate costs


United Bulk


United Bulk

VereenigingVanderbijlpark


OneLogix Linehaul


Jackson


Buffelshoek

Other Logistics Services

23


8%

16

4,0

22

5,4

REVENUE (RM)

2018

2019

14

,9

17

,5

TRADING

PROFIT (RM)

7%Trading Profit contribution to group ** After allocation of pro-rata corporate costs

45%

69,5%

75%

85%

69,5%


Atlas 360


Cranbourne Panelbeaters


Cargo Solutions


Warehousing

Group Financial Performance

28


Impact of new accounting standards

• IFRS 15 – Revenue from Contracts with Customers• There is no impact on the measurement of revenue

• IFRS 9 – Financial instruments• Classification of financial instruments not impacted• Impairment model changed from incurred loss model to expected credit loss model• Applied simplified approach

• IFRS 16 - Effective in new financial year (2020) Material impact


Statement of comprehensive income

R’m May 2019 May 2018 Change (%)

Revenue 2 740.1 2 310,1 19

Operating and administrative costs (2 449.8) (2 016,5) 21

EBITDA 290,3 293,6

Depreciation and amortisation (139.5) (135,2) 3

Trading profit 150.8 158,4 (5)

Profit on disposal of PPE 0,1 14,5

Operating profit 150.9 172,9 (13)

Net finance costs (22.1) (40,6) (46)

Profit before taxation 128.8 132,3 (3)

Taxation (23.6) (26,0) (9)

Profit from continuing operations 105.1 106,3 (1)

Profit on disposal of non-current asset held for sale 36.5

Profit for the year 105.1 142,8 (26)


Statement of comprehensive income (continued)

Profit Before Tax (R million) and Profit Before Tax margin(%)

Excluding capital items

Revenue (R million)

97

,4

88

,4

93

,1

11

7,8

12

8,7

7,1

4,7 5,1

4,7

0,7

1,7

2,7

3,7

4,7

5,7

6,7

7,7

-

20,0

40,0

60,0

80,0

100,0

120,0

140,0

2015 2016 2017 2018 2019

CAGR 12%

1 3

68

,0

1 7

78

,6

1 9

95

,9

2 3

10

,1

2 7

40

,1

2015 2016 2017 2018 2019

CAGR 16%

5,0


HEPS and core HEPS

-1,7

25

,7 29

,6 33

,7 37

,3

33

,9

34

,6 36

,9 40

,2 43

,7

HEPS (cents) CORE HEPS (cents)


Operating cash flows

129,8 173,2 205,1 137,3 366,8

125,1

151,0161,3

168,0160,0

-30,0

20,0

70,0

120,0

170,0

220,0

2015 2016 2017 2018 2019

Cash flow

Trading profit

Cas

hFl

ow

(R

M)

Focus: convert trading into cash discipline on working capital cycles

Trad

ing

Pro

fit

(RM

)


Statement of financial position


Non-current assets 1 202.9 1 187,7 1

Current assets 720.1 564,5 28

Total assets 1 923.0 1 752,2 10

Equity 991.6 925,7 7

Liabilities

Non-current liabilities 313.0 369,4 (15)

Current liabilities 618.4 457,1 35

Total equity and liabilities 1 923.0 1 752,2 10

NAV per share (cents) 389.7 359,5 8

NTAV per share (cents) 324.2 291,9 11


Ratios

May 2019 May 2018

Return on invested capital (%) * 11,9 11,3

Core headline return on equity (%) ** 11,7 11,9

Gearing ratio (%) (including cash) 4,1 20,9

Gearing ratio (%) (excluding cash) 23,3 28,5

Interest cover (times: on trading profit basis) 7,2 4,1

* 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.


Capital expenditure

Capex

May 2019

Fleet R82.5m

• Expansion R69.9m

• Replacement R12.6m

Property Development R82.8m

• Umlaas Road III development R58m

• United Bulk Vereeniging R13.6m

• Other R11.2m

IT R10m

Other R9.8m

Total R185.1m

Property Development

IT

Other

Fleet

82,8

82,5

9,8

10

May 2019


Summarised statement of cash flows


Net cash generated from operating activities 366.8 137,3 167

Cash generated from operations before changes in working capital 299.5 303,2 (1)

Changes in working capital 149.1 (65,7)

Net finance costs (24.4) (43,0)

Taxation paid (20.9) (18,1)

Dividends paid to shareholders (36.5) (39,1)

Net cash flows from investing activities (84.6) 105,0 >100

Net cash flows from financing activities (148.0) (212,6) (30)

Net movement in cash resources 134.3 29,7

Cash resources at beginning of year 124.7 95,0

Cash resources at end of the year 259.0 124,7 108


General repurchase of shares

Dates of repurchase Oct – Nov 18

Number of shares repurchased 3,5 million

Total value of shares repurchased R12,4 million

▪ 1,2% of issued share capital

▪ Repurchased shares have been delisted and returned to authorised but unissued share capital

Prospects and ESG

39


Risks Prospects

40

Tough trading conditions likely to remain for foreseeable future

▪ Complacency

▪ Margin squeeze

▪ Rail

▪ Normal operational risks

Risks and prospects

▪ Trading conditions remain difficult, but our proven strategy remains unaltered

▪ Continue to focus on extracting maximum efficiencies from businesses

▪ Confidence in management teams

▪ Advantageous positioning with B-BBEE accreditation

▪ Continue to investigate ▪ Acquisitions

▪ New start up businesses


• Vehicle accidents down 23% year-on year while km travelled increased

• Personal injuries down year-on-year

• Fatality-free

• Staff incentives

• Employee and management share participation scheme

• Staff wellness programmes

• Mobile clinic visits to various group companies

• Regular blood clinics with the SA Blood Services

• Long-standing bursary scheme addressing the educational needs of staff members as well as those of staff children

• Regular support of worthwhile community causes

• Umlaas Road realising 90% water recovery for recycling

• Denne Road’s solar panels achieving 50% savings on expected energy consumption

Social including our people

Corporate citizenship

• Indirect impacts of ESG risks assessed at least on a monthly basis

• Risk reports generated from live system as and when updated

• Reviewed by CEO, COO and FD

Environment

ESG at OneLogix

ESG in place at OneLogix

As at31 May 2019


Approach to succession

CEO designate in place

42

Younger talent in each subsidiary company has been identified

Knowledge and IP transfer happens on a daily basis

1 2 3


Governance

Executive Directors

Independent Non-Executive Directors

Non-Executive Directors

Lesego Sennelo (42)

Independent Non-Executive Chairman

4

4

3

4

4

4

4

4

4

1

1

1

2

2

2 1

1

1

0 1 2 3 4 5 6 7 8

Sipho Pityana

Alec Grant

Kgotso Schoeman (alternate: Lebogang Mosiane)

Bridgitte Mathews

Lesego Sennelo

Ian Lourens

Neville Bester

Cameron McCulloch

Geoff Glass

Meeting attendance (# of meetings)

Board (4)

Remuneration & Nominations (1)

Audit & Risk (2)

Social & Ethics (1)

Meeting attendance (# of meetings) – as at 23 November 2018

Ian Lourens (66)Neville Bester (60)

Cameron McCulloch (47)Geoff Glass (44)

Kgotso Schoeman (55)Lebongang Mosiane (38)

(alternate to Kgotso Schoeman)

Alec Grant (71)Victoria Ratshefola (39)

Lean but effective board structure


AGM Results

Resolution 2018

Effect share repurchases 99,91

Approve non-executive directors remuneration 99.99

Provision of financial assistance to group interlated companies 100.00

Issue shares for cash 91.99

Unissued shares under control of directors 91.99

Remuneration policy 94.82

Remuneration implementation report 95.01

LLJ Mosiane as alternate director 100.00

K Schoeman as director 95.10

LJ Sennelo as director 100.00

AJ Grant re-appointment to Audit & Risk Committee 100.00

LL Sennelo re-appointment to Audit & Risk Committee 100.00

B Mathews re-appointment to Audit & Risk Committee * 100.00

Appointment of Mazars as auditors 100.00

Signature of documentation 100.00

Spec

ial

Ord

ina

ry

* Subsequently resigned from the OLG Board on 7 December 2018, and replaced by Victoria Ratshefola.

Thank you

45

For any further Investor Relations assistance please contact:

Ian Lourens (CEO)

011-920-9150 | [email protected]

or

Vanessa Rech

(Keyter Rech Investor Solutions)

087-351-3814 | [email protected]

results presentation...property development r82.8m • umlaas road iii development r58m • united...

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