Africa Investor Day 3 October 2012
AfricaInvestor Day 3 October 2012
Footprint Development
Libya
CoteD’Ivoire
Algeria
Mali
Ghana
Mauritania
Sudan
Niger
Ethiopia
Chad
GuineaNigeria
Tunisia
Egypt
Morocco
CentralAfrican Republic
Benin
Burkina Faso
D’Ivoire
Botswana
Kenya
DRC
Somalia
Ghana
Uganda
Angola
Zambia
Ethiopia
Namibia
South
Africa
Tanzania
Gabon
CentralAfrican Republic
Zimbabwe
Swazi-
land
Lesotho
Malawi
Cross Border Services
Markets of Future Interest
Current Transactions
Current Footprint
Footprint Development
Libya
CoteD’Ivoire
Algeria
Mali
Ghana
Mauritania
Sudan
Niger
Ethiopia
Chad
GuineaNigeria
Tunisia
Egypt
Morocco
CentralAfrican Republic
Benin
Burkina Faso
D’Ivoire
Botswana
Kenya
DRC
Somalia
Ghana
Uganda
Angola
Zambia
Ethiopia
Namibia
South
Africa
Tanzania
Gabon
CentralAfrican Republic
Zimbabwe
Swazi-
land
Lesotho
Malawi
Cross Border Services
Markets of Future Interest
Current Transactions
Current Footprint
RTT
Key Corridors and Routes
Libya
CoteD’Ivoire
Algeria
Mali
Ghana
Mauritania
Sudan
Niger
Ethiopia
Chad
GuineaNigeria
Tunisia
Egypt
Morocco
CentralAfrican Republic
Benin
Burkina Faso
• Foundation Expand
• Corridor Development
• End to End Ownership
D’Ivoire
Botswana
Kenya
DRC
Somalia
Ghana
Uganda
Angola
Zambia
Namibia
South
Africa
Tanzania
Gabon
African Republic
Zimbabwe
Swazi-
land
Lesotho
Malawi
Corridors/Routes of Importance
Africa Offering End to EndM
inin
g/F
arm
ing
Ma
nu
fact
uri
ng
Dis
trib
uti
on
Wh
ole
sale
Re
tail
Ma
in
Re
tail
Se
con
da
ry
Tra
de
rs M
ain
Tra
de
rs S
eco
nd
ary
Tra
de
rs S
tre
et
(Sh
op
)
Tra
de
rs M
ob
ile
Potential Imperial Customers with current service offering
Tra
de
rs S
tre
et
Logistics/Transport
FMCG/Sales
Imperial Africa Unique Value Proposition
Risks
• Tobacco legislation and the impact on basket offerings within
market
• Food price shocks against backdrop of increased staple prices
due to droughts in different parts of world
• High inflation in some markets and superficial low inflation in
other markets due to government subsidiesother markets due to government subsidies
• Increased fuel costs due to global oil price increases would
have substantial impact on either consumer costs, OPEX or
both, not conducive to growth
• Political turmoil that could spread across markets
• Volatile currency fluctuations between markets, including hard
currency shortages and prohibitive exchange controls
Challenges
• Paved road density in most of African territories very low,
especially for secondary distribution
• Basic infrastructure such as constant power still lagging behind
development
• Border delays and red tape inflating cost of doing business and
goods/service velocitygoods/service velocity
• Africa is a huge continent with different cultures, legislation,
regulation and development stages
• Quality of earnings and valuation of some companies
earmarked for acquisition across the continent
• Port congestion at key ports due to high volumes and under
developed systems and infrastructure
Opportunities
• Intra-African trade
• African manufacturers and exports to regional countries
• Focus of multi-nationals on African Continent and need for
logistics and distribution services
• Unique and comprehensive offering that ILAD can offer to
Brands/Manufacturers and Distributors due to Logistics and Brands/Manufacturers and Distributors due to Logistics and
FMCG offering that can be made by ILAD, End-to-End offering
• Expansion of basket offerings such as pharmaceuticals
• The need for best practice by customers in the logistics and
distribution area, which ILAD can offer
• Partnership development with companies requiring
comprehensive end to end services
Acquisition Hurdles
High price expectations
Cost of funding
Taxation
Governance
Legislation complexities
Risk vs. ReturnsRisk vs. Returns
Shareholder return expectations
Forex/Exchange rate risks
Management time
Limited suitable opportunities
Cultural fit and Africanisation
Resources Invested
Fleet of 413 vehicles
Direct employment 4,286
Investments: R1 billion
Questions?