RESULTS PRESENTATION - Onelogix€¦ · PRESENTATION FOR THE YEAR ENDED 31 MAY 2020. Specialist...
Transcript of RESULTS PRESENTATION - Onelogix€¦ · PRESENTATION FOR THE YEAR ENDED 31 MAY 2020. Specialist...
17 September 2020
RESULTS PRESENTATIONFOR THE YEAR ENDED
31 MAY 2020
Specialist logistics service provider
OVERVIEW OF THE YEAR
2OneLogix final results for the year ended 31 May 2020
OneLogix final results for the year ended 31 May 2020
DEALING WITH COVID-19
Dec – last week in
Mar 2020• Economic pressure was being felt
Apr• Lockdown severely restricted trading• Only Jackson comparatively unaffected
Pre
-
Co
vid-1
9
lock
dow
n
Jun • Slight recovery visible
Aug • Some businesses returning to pre-Covid-19 levels
Sta
rt o
f H
01
Remainder of period• Expect to return to higher level of utilisation of services to a
more normalised pattern of earnings
Co
vid
-19
Sto
rm
Given the
continued
uncertainty with
regard to Covid-
19, OneLogix
expects trading
conditions to
remain
particularly
difficult for the
foreseeable
future
May (OLG year end)• Lockdown severely restricted trading• Only Jackson comparatively unaffected
Jul • Some businesses returning to pre-Covid-19 levels
Emergency lockdown
interventions
(retrenchments, de-
fleeting and cost
management) applied
Sustainability
measures
Sound underlying
strategy, skilled,
resilient and innovative
management teams
and strong customer
base
3
4OneLogix final results for the year ended 31 May 2020
EXECUTIVE SUMMARY
• Covid-19 lockdown severely restricted trading for 2 months
• Trading conditions remain difficult and relentless
• IFRS 16 implemented
• Debt (excluding new Umlaas debt) significantly reduced
• Final completion of Umlaas Road Phase 3 by calendar year end
• 15,5 million shares repurchased during year
• Revaluation of properties
Revenue
4%R2,62 bn
EBITDA
12%R349,6m
Trading profit
33%R135,1m
Core HEPS & diluted Core HEPS
42%22,2cps
NAV per share
7%402,3cps
No dividend declared
Cash generated from operational activities(Before changes in working capital)
11%R354,6 m
-
NTAV per share
7%334,6 cps
IMPACTS
Dividend
5OneLogix final results for the year ended 31 May 2020
IMPACT OF NEW ACCOUNTING STANDARDS
• Adopted IFRS 16 effective from 1 June 2019 whereby right-of-use assets and associated liabilities for operating leases of vehicles and properties have been recognised
• The group previously recognised operating lease expenses on a straight-line basis over the term of leases
• To enable a more meaningful comparability of performance, a full retrospective approach was applied whereby historic comparative information has been restated
• IFRS 16 has no impact on the income statement over the full lease term, but is earnings dilutive towards the beginning of the relevant lease term and earnings enhancing towards the end of the lease term
• Cash outflows associated with the adoption of IFRS 16 regarding the payment of lease obligations did not and will not change going forward
IFRS 16 - Effective in new financial year (2020) material impact
THE ONELOGIX WAY
6OneLogix final results for the year ended 31 May 2020
7OneLogix final results for the year ended 31 May 2020
THE ONELOGIX WAY
Well established niche logistics provider
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 generativeManagement capabilities
6 7 8 9
4
Analytics
5
8OneLogix final results for the year ended 31 May 2020
THE ONELOGIX WAY (CONTINUED)
47,7
20,1
12,4
11,0
8,8 Management
Brokers Individuals | Other
47,7%Direct BEE ownership
20,1% 12,4%Institutions
11,0% 8,8%
10 Shareholding (as at May 2020)
UMLAAS ROAD PHASE 3
9OneLogix final results for the year ended 31 May 2020
SEGMENTAL BREAKDOWN
10OneLogix final results for the year ended 31 May 2020
11OneLogix final results for the year ended 31 May 2020
ABNORMAL LOGISTICS
100%
100%
92,1%
13
02
,5
REVENUE (RM)
2019
2020
11
31
.6 43%
52%
Profit before taxation *
• After allocation of pro-rata corporate costs and excluding equity-settled share-based payments and impairments
68
,1
31
,2
2019
2020
REVENUE (RM)
PROFIT BEFORE TAX (RM)
Contribution to group
VDS
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VDS STORAGE
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TRUCKLOGIX
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TRUCKLOGIX STORAGE
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ONELOGIX PROJEX
16OneLogix final results for the year ended 31 May 2020
40
,3
18
,8
2019
2020
17OneLogix final results for the year ended 31 May 2020
PRIMARY PRODUCT LOGISTICS
75%
74%
82%
74,2% 12
70
,6
REVENUE (RM)
2019
2020
12
12
.0
REVENUE (RM)
Profit before taxation *
• After allocation of pro-rata corporate costs and excluding equity-settled share-based payments and impairments
32%PROFIT BEFORE TAX (RM)
100%
49%
Contribution to group
ONELOGIX UB
18OneLogix final results for the year ended 31 May 2020
19
Vereeniging
UNITED BULK
OneLogix final results for the year ended 31 May 2020
ONELOGIX LINEHAUL
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21OneLogix final results for the year ended 31 May 2020
JACKSON
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23OneLogix final results for the year ended 31 May 2020
BUFFELSHOEK
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25OneLogix final results for the year ended 31 May 2020
OTHER LOGISTICS SERVICES
45%
79,4%
75%
85%
69,5%
22
5,4
2019
202022
0.2
REVENUE (RM)
16%
8,4 9
,5
2019
2020
PROFIT BEFORE TAX (RM)
• After allocation of pro-rata corporate costs and excluding equity-settled share-based payments and impairments
8%
Contribution to group
Profit before taxation *
ATLAS 360
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27OneLogix final results for the year ended 31 May 2020
CRANBOURNE PANELBEATERS
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CARGO SOLUTIONS
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WAREHOUSING
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GROUP FINANCIAL
PERFORMANCE
31OneLogix final results for the year ended 31 May 2020
32OneLogix final results for the year ended 31 May 2020
STATEMENT OF COMPREHENSIVE INCOME
May 2020 Restated May 2019 Change (%)
Revenue 2 622,4 2 740,1 (4)
Operating and administrative costs (2 272,8) (2 343,9) (3)
EBITDA 349,6 396,2 (12)
Depreciation and amortisation (excluding amortisation of PPA intangibles)
(214,5) (195,7) 10
Trading profit (loss) profit 135,1 200,5 (33)
Equity settled share based payments (6,1) (9,2) (33)
Amortisation of PPA intangibles (9,5) (10,3) (8)
(Loss) profit on disposal of PPE (4,2) 0,1
Operating profit 115,3 181,1 (36)
Net finance costs (66,8) (73,5) (9)
Profit before taxation 48,5 107,6 (55)
Taxation (1,7) (17,7) 90
Profit for the year 46,8 89,8 (48)
33OneLogix final results for the year ended 31 May 2020
STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
Revenue (Rm)
1 7
78
,6
1 9
95
,9
2 3
10
,1
2 7
40
,1
2 6
22
,4
2016 2017 2018 2019 2020
34OneLogix final results for the year ended 31 May 2020
HEPS AND CORE HEPS
25
,7 29
,6 33
,7 37
,3
17
,1
34
,6 36
,9 40
,2 43
,7
22
,2
HEPS (cents) CORE HEPS (cents)
35OneLogix final results for the year ended 31 May 2020
OPERATING CASH FLOWS
396,2 354,6
200,5
135,1
0,0
50,0
100,0
150,0
200,0
250,0
300,0
350,0
400,0
450,0
2019 2020
Cash flow generated fromoperations before changes inworking capital
Trading profit
Cas
hge
ne
rate
d f
rom
op
era
tio
ns
bef
ore
ch
ange
s in
wo
rkin
g ca
pit
al (
Rm
)
Trad
ing
Pro
fit
(Rm
)
• Convert profits into cash• Continued discipline on
working capital
FOCUS
36OneLogix final results for the year ended 31 May 2020
STATEMENT OF FINANCIAL POSITION
R’m May 2020RestatedMay 2019
Change (%)
Non-current assets 1 638.0 1 572.8 4
Current assets 507.2 716.8 (29)
Total assets 2 145.2 2 289.6 (6)
Equity 961.6 958.5 0
Liabilities
Non-current liabilities 712.9 651.3 9
Current liabilities 470.7 679.8 (31)
Total equity and liabilities 2 145.2 2 289.6 (6)
NAV per share (cents) 402.3 377.6 7
NTAV per share (cents) 334.6 312.1 7
37OneLogix final results for the year ended 31 May 2020
COVENANTS
May 2020 May 2019 Covenant
Gross debt/equity 0,8 0,7 <1,5
Net debt (excluding encumbered cash received on behalf of suppliers) / EBITDA
2,0 1,4 <3
EBITDA/interest paid (interest cover) 5,2 5,4 >3,5
Debt service cover ratio (excluding working capital movements)
1,3 1,5 >1,3
Debt service cover ratio (including working capital movements) (Condonation received due to significant working capital impacts of Covid-19 at year end)
0,2 2,5 >1,3
38OneLogix final results for the year ended 31 May 2020
CAPITAL EXPENDITURE
Capex
May 2020
Fleet R53,5m
• Expansion R48,2m
• Replacement R5,3m
Property Development R155,8m
• Umlaas Road Phase 3 development R150,8m
• Other R5,0m
IT R14,6m
Other R3,3m
Total R227,2m
IT
Other
Fleet
Property Development
24%
69%
6%
1%
May 2020
39OneLogix final results for the year ended 31 May 2020
SUMMARISED STATEMENT OF CASH FLOWS
R’m May 2020RestatedMay 2019
Change (%)
Net cash generated from operating activities 87,7 414,7 (79)
Cash generated from operations before changes in working capital 354,6 396,2 (11)
Changes in working capital (156,7) 151,7
Net finance costs (67,7) (75,8)
Taxation paid (22,8) (20,9)
Dividends paid to shareholders (19,7) (36,5)
Net cash flows from investing activities (159,0) (84,6) 88,0
Net cash flows from financing activities (124,3) (195,8) 36
Net movement in cash resources (195,6) 134,3
Cash resources at beginning of year 259,0 124.7
Exchange gains on cash resources 1,1 -
Cash resources at end of the year 64,5 259.0 (75)
40OneLogix final results for the year ended 31 May 2020
GENERAL REPURCHASE OF SHARES
Dates of repurchase Aug 19 – Apr 20
Number of shares repurchased 15 502 829
Total value of shares repurchased R48,3 million
PROSPECTSAND ESG
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42OneLogix final results for the year ended 31 May 2020
RISKS AND PROSPECTS
▪ Poor economic environment
▪ Cross border activity
▪ Margin squeeze
▪ Rail
▪ Normal operational risks
▪ Trading conditions will remain difficult, but proven strategy remains unaltered
▪ Continue to focus on extracting maximum efficiencies from businesses
▪ Confidence in management teams
▪ Strong financial position
▪ Advantageous positioning with B-BBEE accreditation
▪ Continue to investigate
▪ Acquisitions
▪ New start up businesses
Tough trading conditions
likely to remain for
foreseeable future
RISKS PROSPECTS
43OneLogix final results for the year ended 31 May 2020
ESG AT ONELOGIX
ESG in place at
OneLogix
• 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
• Umlaas Road realising 90% water recovery for recycling
• Denne Road’s solar panels achieving 50% savings on expected energy consumption
Social including our
people
• Vehicle accident rates better than target
• Disabling incident frequency rate better than target
• Staff incentives
• Employee and management share participation scheme
Corporate
citizenship
• 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
• Umlaas local community, preferential employment, bursaries, skills development on Umlaas 3 construction site
44OneLogix final results for the year ended 31 May 2020
APPROACH TO SUCCESSION
1 2 3
Younger talent in each subsidiary company has been identified
Knowledge and IP transfer happens on a daily basis
CEO designate in place
45OneLogix final results for the year ended 31 May 2020
GOVERNANCE
Meeting attendance(# of meetings) – for year ended May 2020
Board of Directors
Executive Directors
Independent Non-Executive Directors
Non-Executive Directors
Lesego Sennelo (42)
Independent Non-Executive Chairman
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)
Innocentia Pule (42)
0 1 2 3 4 5 6 7 8
Lesego Sennelo
Alec Grant
Kgotso Schoeman (alternate: Lebogang Mosiane)
Victoria Ratshefola
Innocentia Pule
Ian Lourens
Neville Bester
Meeting attendance (# of meetings)
Board (4)
Audit & Risk (2)
Remuneration & Nominations (1)
Social & Ethics (1)
46OneLogix final results for the year ended 31 May 2020
AGM RESULTS
SPECIAL
ORDINARY
Resolution 2019
Effect share repurchases 99.89
Approve non-executive directors remuneration 99.96
Provision of financial assistance to group interlated companies 99.98
Issue shares for cash 91.63
Unissued shares under control of directors 92.18
Remuneration policy 94.51
Remuneration implementation report 99.88
KV Ratshefola as alternate director 99.99
AJ Grant as director 99.99
AJ Grant re-appointment to Audit & Risk Committee 99.99
KV Ratshefola re-appointment to Audit & Risk Committee 99.99
Appointment of Mazars as auditors 99.99
Signature of documentation 99.99
80,93% of total
voteable shares
represented at AGM
THANK YOU! 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]