Santova (SNV) Investor Presentation summary

Macroeconomic and industry context

• Global challenges persisted, with high interest rates and receding inflation impacting consumer demand and trade volumes, especially in early 2024.

• Geopolitical conflicts and the Red Sea crisis disrupted trade lanes, causing temporary surges in freight rates and ongoing port congestion.

• The Drewry World Container Index rose 4% to $3,213 per FEU, still 69% below the 2021 peak but 126% above 2019 levels.

• Many investors adopted a cautious approach due to global elections and economic uncertainty.

Regional performance and strategy

• North America faced delays from regulatory licensing and lower demand, but progress is being made, focusing on Asia Pacific trade lanes.

• UK operations benefited from diversification, with e-commerce in the Netherlands offering growth potential despite subdued consumer demand.

• Asia Pacific saw progress in direct client business and workforce improvements, though China’s slowdown impacted earnings; Australia and Vietnam are diversifying and growing client bases.

• South Africa gained market share in a static economy, while Mauritius exceeded expectations with strong growth.

Financial performance and client metrics

• Revenue for the period was R300.9m, down 6.3% year-on-year, with profit for the period at R62.4m, a 21.6% decrease.

• New client revenue declined 6.1% overall, with Asia Pacific down 28.1%, UK down 2.2%, and Africa down 7.6%; Europe saw a slight increase.

• Total clients increased 10.9% to 4,300, but total transactions fell 4.4% to 32,219, with notable declines in Asia Pacific and UK transactions.

• Cash and cash equivalents stood at R415.2m, with 96% held offshore; net cash decreased due to weak cash generation and share buybacks.

• Offshore revenue made up 68.6% of total, down from 70.6% the previous year.