Santova LimitedInvestor Presentation

8th November 2017

Agenda

• Vision & purpose• Geographical foot print• Group profile• Business model• Clients• Evolving complexity in global trade• State of the industry• Navigating challenges• Differentiators• Future strategy• Financial analysis

A specialist provider of innovative global trade solutions, managing a global network of interconnected activities for multinational organisations from origin to point-of-consumption

We strive to ensure that our clients achieve a competitive advantage through innovative global supply chain solutions.

“Staying relevant and differentiating from competitors starts with introspection and investing in knowledge.”

Vision

To be a recognised brand in global trade solutions through strategic international offices

and leading intellectual capital.

Total 18 OfficesSouth Africa 5

Holland 2Germany 2Australia 1

Hong Kong 1Mauritius 1

United Kingdom 6

Total number of staff327

International Trade Solutions

• Advanced supply chain solutions.

• Business intelligence.

• Logistics services.

• Client sourcing and procurement management services.

• Express or time sensitive courier services.

• Financial services.

Intellectual capital• Needs analysis, design, deployment, management, control and

business optimisation through sophisticated services, workflow processes and unique software packages. Including, global knowledge and expertise (‘know-how’).

• Quantifiable value add services and solutions based on a company’s unique needs (client centricity).

Information Technology• Differentiation through systems driven business intelligence.

• Business decisions based on facts.

• Unrivalled systems and software packages unlocking supply chain data, enabling supply chain optimisation and predictive analytics.

CultureOur core values and philosophies

Passion Integrity Accountability Innovation Team spirit

Global Strategically located network of ‘own’ international offices across primary trade routes

Group profile

ADVANCED SCM SOLUTIONS Partnership Value based

CUSTOMS CLEARING AND FORWARDING Contractual Fixed and

variable

CUSTOM CLEARING Commodity Transaction

based

Global trade solutions

Value add services

Basic services

LEAD LOGISTICS PROVIDER Contractual

Risk sharing

Consultative management

Evol

ving

capa

bilit

y

Phase 1

Phase 2

Phase 3

Phase 4

Focused cost reduction Transaction based One dimensional

Enhanced capabilities Broader service offering Management of

independent functions Price driven Own services or outsourced

to suppliers Not independent

Project management Contract management Service provider integration Single point of contactMostly an independent

facilitator Providing some services whilst

outsourcing or contracting others

New organisational structures

Strategic global relationships

Knowledge/information based

End-to-end supply chain expertise

Advanced technology and software packages

Adaptable, flexible and collaborative engagement

Shared risk and reward Independent, represents

clientRaises management fee for

services – ‘gain share’ model

Business Model

2003 - 2017

Domestic

structured, predictable

engagement

Globalentrepreneurial

, innovative engagement

“Multi-dimensional’

Complex client centric engagement

2006 20172003 2009 2012

Clients 4,605 Worldwide Feb 2017

Country Net Revenue PercentageR' 000 %

1 SOUTH AFRICA 10 315 3,3%2 AUSTRALIA 4 511 1,4%3 UNITED KINGDOM 3 667 1,2%4 NETHERLANDS 3 256 1,0%5 SOUTH AFRICA 3 253 1,0%6 NETHERLANDS 3 110 1,0%7 SOUTH AFRICA 2 750 0,9%8 UNITED KINGDOM 2 269 0,7%9 AUSTRALIA 2 206 0,7%10 UNITED KINGDOM 2 148 0,7%11 SOUTH AFRICA 2 031 0,6%12 GERMANY 2 012 0,6%13 UNITED KINGDOM 1 966 0,6%14 SOUTH AFRICA 1 960 0,6%15 SOUTH AFRICA 1 929 0,6%16 SOUTH AFRICA 1 920 0,6%17 NETHERLANDS 1 881 0,6%18 NETHERLANDS 1 860 0,6%19 UNITED KINGDOM 1 845 0,6%20 UNITED KINGDOM 1 813 0,6%

TOTAL 56 703 18,0%

PHARMACEUTICALSTEXTILE RECYCLINGPAPERSALES PROMOTIONELECTRONIC SECURITYFOOD & BEVERAGETEXTILE RECYCLINGLOGISTICS

APPARELWATCHES & JEWELLRYGOVERNMENT MINTBEVERAGESELECTRICAL COMPONENTS SUPPLIERSELECTRICAL APPLIANCESGAME TECHOLOGY

Summary: . 4,605 Clients (total client base) generate net revenue of R 315 million . 20 Clients (0,5% of clients) generate net revenue of R 57 million (18% of total net revenue) . The largest client only constitutes 3,3% of net revenue and the next only 1,4%

RegionNet

Revenue % Contribution

South Africa R24 158 43%United Kingdom R13 709 24%Netherlands R10 106 18%Australia R6 717 12%Germany R2 012 4%

R56 703 100%

State of global trade &

the logistics industry

Evolving Complexity In International Trade

New markets – freight segmentation and spread.

New cost effective sources of supply and points of sale.

Complexity of offshore markets: varying legal jurisdictions, trade agreements, cultures, languages,

processes.

Multiple supply chains – globalisation - reconfiguring networks to meet consumer expectations for faster

delivery.

Overcapacity and rate pressures fuelled cost-cutting and consolidation.

Emergence of e-commerce: smaller and more frequent purchase orders.

Moving toward a fully digital, connected, and flexible supply chain optimized for last-mile, last-minute

delivery.

Next-generation supply chain will enhance fulfilment capabilities and drive efficiencies through

technologies ranging from big data and predictive analytics to artificial intelligence and robotics.

The Logistics Industry faces vital decisions about capacity, pricing, technology deployment, and strategy. Four potential scenarios prevail, including:

Plain sailing. As regulatory constraints recede, global trade flourishes, and technology improves efficiency.

Choppy waters. New policies favouring localised manufacturing (protectionism) force shippers and logistics companies to adapt - tighter regulations that increase operating expenses and accelerate investment in cost-saving technologies.

Rough sea’s. Regulatory costs rise (protectionism) and tough economic conditions deter technology investments.

Flat global economies, intense competition and pressure on margins.

Industry remains averse to change, a reluctance to embrace automation due to financial constraints, the rate at which technology is changing and the acute shortage of specialised skills or ‘know-how.

Threat of being commoditised, unless they can provide a common global system and have global offices on strategic trade lanes facilitating end-to-end analysis, management and control.

The State of the Industry

Global trade looks set to improve

Navigating challenges

Resilience & sustainabilityAs a result of a well diversified business model, there was a strong year on year earnings growth in the face of these challenges.

Global Economies

State of the South African economy Relatively flat global economies The state of the logistics industry Low shipping (freight) rates

Brexit

Depreciating sterling, reduced profit margins Reduced trade volumes, particularly UK–Europe trade Reduced import volumes

Appreciating Rand

Reduced earnings as a result of:

Translation of offshore earnings to Rands Reduced fee’s based on Rand value of goods

imported

Operating margins and profitability

Group ‘buy rates’, efficiency-effectiveness, client retention and new business development have increased significantly year on year, protecting our earnings.

TradeNav ®

Launch and deployment of next generation technology.

‘Virtual’ client-centric (single platform worldwide), end-to-end supply chain visibility, integration and communication.

The enabling predictive analytics and data based decision making.

Brand awareness

‘Blue chip’ companies have engaged Santova.

We have also achieved the status of preferred employer.

Considered to be an entrepreneurial innovative culture with a quality talent pool.

Differentiators

Offshore expansion

Offshore operations have delivered an exceptional performance, offshore contributions are now 66.5% of total earnings.

Diversification in the form of geographies, currencies, industries and Group service offerings.

Future strategy

Organic growth. New clients. New services with existing clients. New trade routes. New services/products

Acquisitions. ‘Bolt-on’ acquisitions. Strategic acquisitions

. Information communication technology

. Data (information) based decision making

. Elimination of duplication - automation

. Workflow process design

. Standard operating procedures

. Key performance indicators (metrics)

. Free flow of intellectual capital

. Centralisation vs. decentralisation

. Deployment of ‘best of breed’

. Geographical

. Currency

. Service/product

. Markets

. Industry

. Trade route

. People

Next generation technology (TradeNav®). ‘Virtual’ data, faster processing, automation and elimination of duplication

. Knowledge intensive business model

. Advanced supply chain solutions

. Intense client consultative engagement

. Application through effective deployment

INNOVATION

EFFICIENCY - EFFECTIVENESS

DIVERSIFICATION

GROWTH

Financial Analysis

Operating Context – FOREX2017 2016Aug Aug Movement

R'000 R'000 %SOURCE OF PROFITABILITY South African Operations 33.5% 42.0% (8.5)% International Operations 66.5% 58.0% 8.5%

2017 2016Aug Aug Movement

R'000 R'000 %AVERAGE EXCHANGE RATES

Primary Reporting Currencies - GBP/ZAR 16.78 20.55 (18.3)% - EUR/ZAR 14.67 16.54 (11.3)% - AUD/ZAR 10.04 11.06 (9.2)% - HKD/ZAR 1.69 1.90 (11.3)%

Primary Transactional Currencies - USD/ZAR 13.13 14.75 (10.9)% Indirect impact on South African revenues

Direct impact on translation of foreign operations

2017 2017Aug Feb Movement

R'000 R'000 %CLOSING EXCHANGE RATES

Primary Currencies in which Offshore investments held - GBP/ZAR 16.79 16.19 3.8% - EUR/ZAR 15.46 13.80 12.1% - AUD/ZAR 10.30 10.00 3.0%

Direct impact on OCI and Equity

Income Statement2017 2016 Movement

R'000 R'000 %Billings 1 972 887 2 000 612 (1)%

REVENUE 158 178 159 772 (1)%

Other income 5 794 10 755 (46)%Depreciation and amortisation (1 494) (2 129) (30)%Administrative expenses (115 971) (123 056) (6)%Operating profit 46 507 45 342 3%

Interest received 145 124 17%Finance costs (3 365) (4 977) (32)%

Profit before taxation 43 287 40 489 7%

Income tax (10 494) (10 826) (3)%

Profit for the year 32 793 29 663 11%

Attributable to: Equity holders 32 771 28 988 13% Non-controlling interests 22 675 (97)%

Other comprehensive income Exchange differences on translation 10 229 (40 898) (125)%

Ongoing repayment of acquisition financing

Benefits of lower international tax rates

Purchase of 25% minority interest in Australia

Meaningful underlying organic revenue growth - outstripping inflationary increases in costs

Meaningful underlying organic revenue growth - outstripping inflationary increases in costs

Key ratios: - Billings/revenue margin 8.0% 8.0% 0.0% - SA 5.2% 5.0% 0.2% - Offshore 11.3% 12.0% -0.7% - Operating margin 29.4% 28.4% 1.0% - Effective tax rate 24.2% 26.7% -2.5% - Headline earnings (R'000) 32 739 28 942 13.1% - Headline earnings per share (cents) 20.69 18.40 12.4% Net sum = real growth in HEPS

Currency LeverageAdjusted Points

5%

8% 1

(43)%(27)%

3% 112%

30%(32)% 2

Currency 17%

Impact 5% 3(11)% 22%

(97)% 4

Source of Profitability

AFRICA ASIA PACIFIC

EUROPE & UK TOTAL

R'000 R'000 R'000 R'000PROFIT FOR THE PERIOD

2017 12 501 5 073 17 086 34 660

2016 9 097 3 819 14 238 27 154 37% 33% 20% 28%

LOGISTICS SERVICES

HIGHLIGHTS - Positive growth in Billings across all regions in local currency - Overall Revenue/Billings margin in the Logistics sector held constant 7.6% - This is despite Brexit pressure on margins in the UK - Overall Revenue/Billings margin in South Africa up 0.3% to 5.3% - Growth in profitability in South Africa 29% - Very strong performances from:

- Hong Kong 190% increase in profit - Tradeway UK 58% increase in profit - Germany 334% increase in profit

Balance Sheet2017 2017Aug Feb Move

R'000 R'000 %ASSETS

Trade receivables & other receivables 633 376 590 574 7% Intangible assets 185 887 178 494 4% Cash and cash equivalents 97 788 91 780 7% Property, plant and equipment 21 426 18 540 16% Taxation 9 608 10 352 (7)% Financial assets 3 545 6 332 (44)%

951 630 896 072 6%

EQUITY AND LIABILITIES

Capital and reserves 392 447 365 567 7%

Liabilities Trade and other payables 232 919 205 710 13% ST Borrowings and overdrafts 226 058 228 380 (1)% LT Interest-bearing borrowings 51 001 57 093 (11)% Financial liabilities 27 883 15 135 84% Short-term provisions 14 579 17 808 (18)% Taxation 5 318 4 954 7% Long-term provisions 1 425 1 425 0%

951 630 896 072 6%

KEY RATIOS: - Debtor days 54 48 (6) - Creditor days 24 20 4 - Debt to equity ratio 46% 53% 7% - Tangible NAV per share 1.29 1.18 9%

Increased volumes in SA and TradewayFurther TradeNav development costs

Investment in infrastructure in UK and Aus

Impact of profitability and Rand weakness/FCTR

Consistent with increased volumes primarily in SA (SARS)Primary funding mechanism in SA - ID FacilityResults of ongoing scheduled repaymentsIncrease related to acquisition of 25% minority in Aus

2017 2017SA Foreign

R'000 R'000

72% 28%454 529 178 847

17 848 79 940

115 606 117 313 226 058

Cash Flow & Funding

2017 2016 MovementR'000 R'000 %

OPERATING ACTIVITIES Net cash flows from operating activities 19 192 23 117 (17)%

INVESTING ACTIVITIES CAPEX (5 686) (1 788) 218% Acquisition of subsidiaries - (12 410) (100)%

FINANCING ACTIVITIES LT Borrowings repaid (6 092) (9 785) (38)% Share capital 214 (3) (7233)% Dividends paid (6 066) (8 654) (30)%

TRANSLATION FOREX Impact 4 375 (15 509) (128)%

CASH AT YEAR END 97 717 98 625 (1)%.

Total cash on hand: 100% 100% - South Africa 18% 16% 2% - Offshore 82% 84% (2)%

Total funding facilities available 446 378 451 056 Total unutilised funding facilities 169 391 165 583

R43 million investment into Trade Receivables in SA & UK

Upgrading of infrastructure in UK & Aus. plus further TradeNav developmentTradeway purchase price payments in PY

Ongoing repayment of two 5 year Medium Term Loans

Lower impact due to Scrip Dividend in 2017

Reflective of Rand weakening over the 6 months

Operating Cash Flows - Unpacked

2017 2016 Aug Aug

WORKING CAPITAL CHANGES R'000 R'000

(Increase) in trade and other receivables (42 802) 45 640 - South Africa (24 688) Increased volumes/Billings in Jul & Aug 17 - Tradeway UK (20 194) 49.3% Increase in GBP Billings - Other regions 2 080 Increase in trade payables and provisions 23 982 (497)

Net cash flow (18 820) 45 143

March April May June July August

SA Port Container Volumes

2017 2016

February March April May June July August

---------- 2017 ----------2016

SA Billings

MARCH APRIL MAY JUNE JULY AUGUST

Tradeway Billings

2017 2016

49%

A specialist provider of innovative global trade solutions

Santova’ s diversification in terms of geographies, currencies, industries, products and services enables it to manage a global network of interconnected activities for multinational organisations from origin to point-of-consumption.

Thank youQuestions and discussion?