Summarised audited results
for the 12 months ended 30 June 2021

Imperial is your 'Gateway to Africa'
Imperial is your 'Gateway to Africa'

Acquisitions and partnerships

Acquisitions and partnerships concluded during F2021

Market access healthcare manufacturing in South Africa

Effective August 2020, Imperial acquired a 49% shareholding in Pharmafrique (Pty) Ltd (trading as Kiara Health) for approximately R76 million. Kiara Health is a pharmaceutical contract manufacturing and healthcare services company based in Johannesburg which serves as the local manufacturing partner for a global leader in generic and biosimilar medicines. This acquisition is in line with Imperial's strategy to backward integrate into contract manufacturing as part of our market access service to multinationals on the continent. Access to this capability will create a pipeline of opportunities for our market access and logistics services in the healthcare industry in South Africa and the rest of the continent.

Parcel Ninja, supporting digital contract logistics enhancement

With effect from 1 February 2021, Imperial acquired 60% of Parcel Ninja, the specialised warehousing and distribution management business. Enabled with leading software, processes and people capabilities in South Africa, Parcel Ninja provides fulfilment in both B2C and B2B channels including the informal market, supported by the management and optimisation of courier parcel deliveries. This acquisition supports Imperial's strategic ambitions to accelerate our digital capabilities and expand our logistics and market access into last mile distribution, e‑commerce fulfilment, footprint and scale in Africa, while ensuring local relevance for our clients and principals.

OpenLMIS, electronic logistics management information system for public healthcare sector

Imperial's joint venture with technology provider, One Network, has been selected as the preferred partner to steward OpenLMIS as from March 2021. OpenLMIS provides an electronic logistics management information system to public health supply chains in low- and middle‑income countries in Africa, and currently services users in eight countries. Our clients and principals will benefit from a more efficient and cost-effective process while quality is maintained. Features, such as, real-time notifications will also help to resolve disruptions and manage exceptions before they become a major problem, thereby allowing optimal distribution of stock. By collecting data from daily delivery processes, this offering also provides unique insights into performance. This partnership provides a competitive advantage to Imperial and is core to our differentiated, integrated and innovative service offering to our healthcare clients in Africa.

Investment in partnership with Lori Systems

In November 2020, Imperial invested in a partnership with Lori Systems to expand its cutting-edge e-logistics technology solutions across Africa. This strategic partnership is the first of its kind at this scale and scope on the African continent. Lori Systems is the leading e-logistics platform in Africa and coordinates haulage in frontier markets. The IVF, managed by Newtown Partners (a US venture capital firm), recently concluded an investment in Lori Systems to support its growth in East and West Africa. The Imperial and Lori Systems partnership in the Southern African Development Community (SADC) region will help develop and enhance Africa's road freight industry through digital innovation and enablement.

Introduction of a 25% B-BBEE shareholding in Imperial Logistics South Africa Group Proprietary Limited

In April 2021, Imperial entered into transaction agreements with Broad-based Black Economic Empowerment (B-BBEE) partners (Afropulse and Willowton) to participate in a 25% B-BBEE shareholding in Imperial Logistics South Africa Group (ILSA), the company that will house most of the group's South African operations. All the conditions of this B-BBEE transaction were fulfilled and the effective date for the transaction was 30 July 2021. Accordingly, ILSA is now more than 51% black-owned and more than 30% black woman-owned, contributing to enhancing Imperial's relevance and competitiveness in South Africa, and that of its clients. This transaction will ensure significantly enhanced B-BBEE ownership for the majority of Imperial's South African operations and reiterates Imperial's commitment to sustainable empowerment and transformation. Improving the B-BBEE ownership and status of Imperial's South African operations is critical for the future prospects of the group given our exposure to the South African market as part of our 'Gateway to Africa' strategy.

Acquisitions in progress post F2021

Deep Catch Namibia Holdings

Through Imperial's wholly-owned subsidiary, Imperial Capital Limited, the group entered into a sale of shares agreement in June 2021 for the acquisition of 100% of the issued share capital of Deep Catch Namibia Holdings for an estimated purchase consideration of N$633 million (c.R633 million). Deep Catch is a diversified and vertically integrated business engaged in the wholesale, distribution and cold storage of perishable foods (mainly poultry, fish and dairy products) in Namibia and the SADC region. Through the new and expansive cold chain capability and extensive network acquired through Deep Catch, Imperial's Market Access business will be positioned to enter and build its cold chain capability and product category expansion in its existing markets of operation in sub-Saharan Africa (mainly South Africa, Mozambique, Ghana and Nigeria), where there is substantial demand for affordable protein products. This acquisition will also provide access to defensive, value-added capabilities in FMCG, such as re-packaging. The transaction is still subject to the fulfilment of outstanding conditions precedent.

The J&J Group

In July 2021 Imperial announced that it had entered into an agreement to purchase 100% of the issued share capital of the J&J Group for an enterprise value of USD300 million (c.R4,4 billion). The J&J Group offers end-to-end logistics solutions along the Beira and North-South corridor, specialising in the transport of break-bulk, containerised, project, fuel and out-of-gauge cargo between Mozambique, Zimbabwe, Zambia, South Africa, Malawi and the DRC. This acquisition is in line with Imperial's 'Gateway to Africa' strategy as it will optimise and expand Imperial's reach in Africa by providing scale in end-to-end cross-border transportation services in key African countries and new industries through well-established routes on the Beira and North South corridors, port capabilities, a developed asset base including fleet and 45 000m2 of warehousing space, and an entrenched customer portfolio. The J&J Group's strategic asset base will complement Imperial's asset-right focus and will serve to further expand the group's access to critical trade networks, consolidating Imperial's leverage and reach on the African continent. The transaction will take place in three tranches, with Imperial initially acquiring 51% of the shares of the J&J Group, followed by second and third tranches of 46,5% and 2,5% respectively. The acquisition of the J&J Group is subject to the fulfilment of regulatory and other conditions precedent.