Integrated Report 2020

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Our impacts and outcomes

The essential services we provide in key industries, and the implications of our strategy, social responsibility and sustainability for the socioeconomic wellbeing and development of Africa and her people, will create and sustain shared value for all our stakeholders over the long term.

 

We are a growth-driven business, supported by a sound balance sheet and strong capital management, focused on generating higher returns growth and strong free cash flow. This provides the platform to improve the positive outcomes our stakeholders expect from us.

FINANCIAL CAPITAL

Continuing revenue
5%
to R46,4 billion
(F2019: R44,0 billion)

Continuing EBITDA
11%
to R4,1 billion
(F2019: R4,6 billion)

Continuing operating profit
40%
to R1,5 billion
(F2019: R2,4 billion)

Continuing headline earnings per
share (HEPS)

65%
to 156 cents per share
(F2019: 448 cents per share)

Continuing earnings per share (EPS)
>100%
to 22 cents per share
(F2019: 120 cents loss per share)

Continuing free cash conversion of
72%
(F2019: 83%)

Total cash dividend
167 cents per share,
more than continuing HEPS. No final dividend declared (F2019: 244 cents per share)

New business revenue
around R6,2 billion
secured

on a rolling 12-month basis

Net debt:EBITDA
1,6x
(post R3 440 million proceeds received from European shipping disposal), well below banking covenants of 3,25 times

Net working capital
improved 61% to R544 million,
excluding disposal groups, compared
to R1 389 million at June 2019

Despite the impact of Covid-19,
continuing free cash inflow (post-maintenance capex and lease payments) of
R1 304 million was generated.

Capacity for growth
R4 billion to R5 billion
available debt post shipping proceeds

Read more in the group chief financial officer’s (CFO’s) review

MANUFACTURED CAPITAL

Return on invested capital (ROIC) of
4,9% versus weighted average
cost of capital (WACC) of
7,6%
(F2019: ROIC of 7,6% versus WACC of 8,5%)

Acquisitions and disposals
Strategic acquisitions to the value of
c.R900 million were concluded.
Sold our European shipping business at a profit after tax (PAT) multiple in excess of c.15 times.
Exited CPG within the original cost estimate, and retaining revenue of R1,6 billion in other parts of the group.

Continuing free cash flow per share of
691 cents
(F2019: 1 002 cents)

Read more in the group CFO’s review.

HUMAN AND INTELLECTUAL CAPITAL

Training spend
R128 million
(F2019: R192 million)

 

Black representation
in South Africa

At top management
42% against a
2020 target of 63%

with 16% being black women
(F2019: 47% overall and
20% black women)

 

At senior management
32% against a
2020 target of 33%

with 16% being black women
(F2019: 28% overall and
10% black women)

 

At middle management
45% against a
2020 target of 50%

with 17% being black women
(F2019: 43% overall and
16% black women)

 

 

 

Gender diversity
12%
women representation
at top management

(F2019: 17%)

 

14%
women representation
at senior management

(F2019: 27%)

 

32%
women representation
at middle management

(F2019: 31%)

 

24%
overall women – black
representation

 

Established and advancing our global and
regional women’s forums and
initiatives
– with numerous initiatives
undertaken in support of Women’s month
and against gender-based violence.

Recognised as the
top company for
students to work for

in the transport and logistics category
in the recent South African Graduate
Employers Association study

 

 

Key appointments
Appointed a group chief people officer
and a group digital officer
12 black and female appointments in
senior and executive management

 

 

Expected BBBEE scorecard ratings
(South Africa)

Covid-19 and related budget constraints will
mean we are unable to maintain the current
level 2 broad-based black economic
empowerment (BBBEE) rating measured
against the more stringent amended
Department of Trade and Industry (dti)
Codes. We expect our verified score for
2020 to drop to a level 4 rating.
However, we do expect to retain our
level 2 rating measured against the
Road Freight Sector Codes.

 

 

 

CPG
Exited CPG in South Africa,
retaining c.1 800 jobs

 

Ranked second in
‘women empowerment in
the workplace’

category in Gender Mainstreaming
Awards 2020

Read more about our human capital progress in our people report and our digital and data initiatives in
our digital and data report.

Our overall workforce decreased due to our rationalisation and restructuring activity undertaken, which
is reflected in our people data.

 

 

Digital and data
Initiatives focused on digital fleet
management, ecommerce and point
of sale integration.
Three investments
concluded

in a digital distributor, digital freight
forwarder and a point-of-care diagnostics
enabler, with a combined value of
USD4,5 million.

 

 

 

RELATIONSHIP CAPITAL

United Nations (UN) Global Compact
Became a signatory to the UN Global Compact
The group has subscribed to the 10 principles of the UN Global Compact for over 10 years

London Stock Exchange
FTSE4GOOD Index Series

A global sustainable
investment index series
3,8
overall score out of five
(F2019: 3,7)

EcoVadis Group
Transport and Logistics

Silver status
scoring 48 out of 100 points for the group

Total corporate social investment
(CSI) spend

R21,1 million
(F2019: R22,2 million)

Enterprise development spend
(CSI) spend
R29 million
(F2019: R27 million)

Contract renewal rate
c.80%
on existing contracts, with an encouraging pipeline of new opportunities

Product safety
No material incidents
of non-compliance with laws and regulations concerning the health and safety impacts of products and services (F2019: none)

Read more about our impacts in our ESG report.

NATURAL CAPITAL

Environmental incidents
No fines or penalties
incurred for environmental incidents
(F2019: none)

Carbon footprint –
Scope 1 and 2 emissions

572 667 tCO2
(F2019: 647 995 tCO2)

Fuel consumed
200 423 595 litres
(F2019: 214 139 231 litres)

Water purchased
(CSI) spend
406 105 kilolitres
(F2019: 488 020 kilolitres)

CDP*
B+ rating
This is higher than the global average (C)
and the Africa regional average (B-).
Our next submission is due in
August 2020.

Expanding our green footprint
Installed a 200,64kWp solar PV system
at a site in South Africa that is expected
to provide 355 megawatts of power
each year.
Solar PV installations in South Africa
produced 736 006 kilowatts
of solar energy.

tCO2: tonnes of carbon dioxide.
* Formerly the Carbon Disclosure Project.

Read more about our impacts in our ESG report.

The decreases in our carbon footprint, fuel consumed and water purchased are due to fewer kilometres travelled, the impact of Covid-19 on business activity, the closure of CPG and the consolidation of businesses in South Africa.