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


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


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



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


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


SEGMENTAL BREAKDOWN



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


VDS STORAGE


TRUCKLOGIX


TRUCKLOGIX STORAGE


ONELOGIX PROJEX


40

,3

18

,8

2019

2020


PRIMARY PRODUCT LOGISTICS

75%

74%

82%

74,2% 12

70

,6

REVENUE (RM)

2019

2020

12

12

.0

REVENUE (RM)



32%PROFIT BEFORE TAX (RM)

100%

49%


ONELOGIX UB


19

Vereeniging

UNITED BULK

OneLogix final results for the year ended 31 May 2020

ONELOGIX LINEHAUL


JACKSON


BUFFELSHOEK



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)


8%



ATLAS 360


CRANBOURNE PANELBEATERS


CARGO SOLUTIONS


WAREHOUSING


GROUP FINANCIAL

PERFORMANCE



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)


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


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)


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


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


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


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


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)


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



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


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


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


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)


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

results presentation - onelogix€¦ · presentation for the year ended 31 may 2020. specialist...

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