IMPERIAL LOGISTICS LIMITED - Trading Statement for the 12 months ended 30 June 2019

Trading Statement for the 12 months ended 30 June 2019

Imperial Logistics Limited
(Incorporated in the Republic of South Africa)
Registration number: 1946/021048/06
ISIN: ZAE000067211
Share code: IPL

(”Imperial Logistics” or the “Company’ or the “Group”)

TRADING STATEMENT FOR THE 12 MONTHS ENDED 30 JUNE 2019

Shareholders are referred to the SENS announcement of 3 June 2019 in which our guidance for
the 12 months to 30 June 2019 was as follows:

It is anticipated that Imperial Logistics’ continuing operations (excluding Motus and
Consumer Packaged Goods (‘CPG’) as discontinued operations) will deliver:

–   Higher revenue than the prior year

-   Lower operating profit and Headline Earnings per Share (‘HEPS’) than the prior year,
    negatively impacted by weaker operational performances in South Africa and International
    divisions, once-off trading costs in the International division and once-off costs
    associated with business rationalisation and restructure.

Imperial Logistics is currently finalising its results for the year ended 30 June 2019 and
expects revenue, operating profit and HEPS from continuing operations to be in line with
the aforementioned guidance.

As contemplated in the JSE Listings Requirements, Basic Earnings per Share (‘EPS’) and
Basic HEPS for the year ended 30 June 2019 (‘F2019’), excluding Motus and CPG as
discontinued operations , compared to 30 June 2018 (‘F2018’), are expected to be within the
ranges provided in the table below:




                                                 30 June 2018         30 June 2019
                                                 Restated*            Expected range


Continuing HEPS (cents)                          585                  533 to 551
                                                                      (down 9% to 6%)

Continuing EPS (cents)                           519                  (35) to (17)
                                                                      (down more than 100%)

*Prior year restated to exclude CPG

The primary reasons for the changes are:

    -   weaker operational performances in the South Africa and International divisions,
        negatively impacted by challenging trading conditions, once-off trading costs in the
        International division and once-off costs associated with business rationalisation
        and restructure.

Basic EPS and Basic HEPS for the year ended 30 June 2019 for the group in total (including
Motus and CPG) compared to 30 June 2018, are expected to be within the ranges provided in
the table below:
                                     30 June 2018             30 June 2019
                                     Published                Expected range


HEPS cents (total)                   1570                     391 to 434
                                                              (down 75% to 72%)


EPS cents (total)                     1681                    1757 to 1793
                                                              (up 5% to 7%)


The primary reasons for the changes, in addition to those mentioned above, are:

   -   total EPS and HEPS include Motus for 12 months in F2018 and for 4 months in F2019;

   -   provisions for closure costs and impairment of R1.2 billion to R1.4 billion post-tax
       relating to the decision to exit the CPG business in South Africa, which reflects in
       the total group number, classified as a discontinued operation for the financial
       year ending 30 June 2019, the bulk of which relates to exit of leases, staff
       retrenchments and goodwill; and

   -   the impairment of certain historic goodwill to the value of c. R1.1 billion (c. 14%
       of total goodwill and intangible assets) driven by significant deterioration in
       macro-economic conditions in all three divisions, which includes a depressed growth
       outlook, uncertainty and higher WACC rates. These factors have resulted in the
       reduction in the value in use of certain of our cash generating units, leading to
       the goodwill impairment. The affected businesses are however, still cash generative
       and profitable. The remaining goodwill relates mainly to operations which are in
       growing markets and industries, are cash flow generating with low capital
       requirements, and which exceed our targeted hurdle rates.


Imperial Logistics will release its results for the year ended 30 June 2019 on 27 August
2019.

The forecast financial information in this trading statement is based on information
available at the time of publication and has not been reviewed or reported on by the
Group’s auditors.

Bedfordview
15 August 2019


Sponsor: Merrill Lynch South Africa (Pty) Limited

Date: 15/08/2019 11:10:00
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