Imperial Holdings Investor Presentation — May 2018
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LEADERS IN MOBILITYPRE CLOSED PERIOD UPDATE Investment Community 10 May 2018
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MOBILITYPRE CLOSED PERIOD UPDATE
Investment Community
GUIDANCE CONTEXT OPERATIONS REVIEWUNBUNDLING
& EQUITY STORIESSTRATEGY 3
GUIDANCE FOR 2018 –WHAT HAS CHANGED?
We anticipate solid operating & financial results in F2018, subject to stable currencies
in the economies in which we operate
In the six months to June 2018 for continuing operations, we expect:
›Capital efficiency & debt to equity ratio to improve
›Imperial Logistics to increase revenues & operating profit in line with H1 growth
›Motus to increase revenues in line with H1 growth & operating profit at a higher rate than H1
›Imperial Holdings to increase revenues in line with H1 growth & operating profit at a higher rate than H1
›Imperial Holdings to produce a double-digit growth in headline earnings per share off the low base of 2017 4
GUIDANCE CONTEXT OPERATIONS REVIEWUNBUNDLING
& EQUITY STORIESSTRATEGY 5
OPERATING CONTEXT –IMPERIAL SPECIFIC FACTORS
South Africa (54% revenue; 65% operating profit)
>Despite the World Bank & S&P revising South Africa’s GDP forecasts for 2018 & 2019 upward, high unemployment
& sub -optimal economic growth weigh down on trading conditions
>New political leadership: more accountable government & improved confidence & sentiment
>R/US$ exchange rate strengthened on average by 6% during the 10 month period
>Depressed volumes, contract renewals at lower margins & competitive pressures in logistics
>NAAMSA national vehicle unit sales increased by 2% (10 months to April 2018)
African Regions (9% revenue; 15% operating profit)
>Firming commodity prices, strengthening currencies, gradually strengthening domestic demand & some policy
reforms improved economic prospects
>Subdued growth in Kenya (extended elections)
>Economic recession in Namibia
>Increased competition & longer lead times from key aid & relief markets
>Negative impact of listeriosis outbreak (affecting exports ex SA)
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