Santova (SNV) Investor Update summary

Strategic and operational overview

• Focus on delivering innovative, technology-driven end-to-end supply chain solutions, leveraging global IP and real-time data for client visibility and decision-making.

• Emphasis on client-centricity, streamlining global supply chains, and reducing landed costs through diagnostics, KPI setup, and hands-on execution.

• Maintains a diversified client base across 10 countries, with 21 offices and a strong presence in Africa, UK, EU, Asia Pacific, and the USA.

• Recent closure of Thailand office due to regulatory constraints; continued focus on organic growth and selective acquisitions.

• Ongoing investment in technology, automation, and digital fitness to differentiate and support scalable operations.

Financial performance and trading update

• Revenue and net interest income decreased 4.5% to ZAR 637.8 million; net profit after tax declined 30.1% to ZAR 147.3 million, mainly due to lower shipping rates and higher expenses.

• Offshore revenue rose to 70.7% of total, with billings margin improving to 11.5%; HEPS fell 20.1% to ZAR 1.2377 per share.

• Operating profit dropped 35.7% to ZAR 183.7 million, impacted by lower freight rates, higher employee costs, and increased tax rates in SA and UK.

• Tangible Net Asset Value per share increased 27.7% to ZAR 6.11; strong cash position with 93.3% held offshore, despite a 3% decrease in cash and cash equivalents.

• Interest-bearing borrowings and financial liabilities declined significantly due to repayments and settlement of acquisition-related obligations.

Regional performance and market conditions

• Africa and Mauritius delivered strong results despite economic headwinds; South Africa's core business performed well without prior year project revenue.

• UK operations maintained profit margins and stable trade volumes despite falling sea freight rates; Europe returned to pre-pandemic levels.

• US operations, including the new A-Link Freight acquisition, are now fully licensed and expected to turn profitable in the next year.

• Asia Pacific saw leadership changes and subdued demand, but remains the largest and fastest-growing region for contract logistics.

• New client revenue was led by Africa (42%), followed by Europe (27%) and the UK (25%).