Super Group at a glance

Profile

Super Group is a leading transport logistics and mobility group, headquartered in South Africa. Super Group, founded in 1986, has been listed on the JSE since 1996. Super Group includes supply chain, dealerships and fleet solutions businesses focused on offering a comprehensive range of services, utilising world-class skills and technology.

Our vision

The strategic vision for Super Group is to provide end-to-end supply chain solutions, fleet management and dealership services to a diversified customer base in Africa, Australia, the United Kingdom, Europe and New Zealand and to become a leading transport, logistics and mobility group in the countries in which it operates.

Our strategic focus

Super Group remains committed to Its strategy of being an innovative, integrated, mobility solutions company. The strategic issues of importance in the short-term include:

Supply Chain Africa

  • Continued development of integrated end-to-end solutions
  • Improved efficiencies, reduced costs and optimised asset investment
  • Collection of customer accounts and minimising cost of business
  • Increased digital trading platforms
  • Wider commodity trading solutions and margins

Supply Chain Europe

  • Diversification of customer base as recovery of automotive manufacturing volumes is slow
  • Improved flexibility and solutions visibility
  • Cost rationalisation to achieve profitability with lower critical mass

Fleet Africa

  • Focus on corporate solutions
  • Investment in digital and enhanced data solutions

SG Fleet

  • The expansion of the Corporate business model to counter headwinds in the Consumer space
  • Integration and cross-selling opportunities in terms of transport solutions, including planning and optimisation platforms
  • A wider range of technology-driven, high value-add products and services
  • One-stop commercial solutions across funding, maintenance, insurance and e-Commerce platforms

Dealerships SA

  • Rationalisation of unprofitable brands and sites
  • Network optimisation
  • Enhanced digital trading and purchase solutions or platforms

Dealerships UK

  • Establishing fleet partnerships
  • Leveraging data platforms – digitisation and e-Commerce trade platforms

Our investment proposition

Our investment proposition for Super Group entails:

  • Super Group is a leading transport logistics and mobility group in South Africa and a leading fleet management solutions company in Australasia.
  • Certain businesses within the Group are starting to establish themselves as leaders in their respective countries of operation.
  • The Group continued to expand both locally and internationally and growing its geographic footprint as well as offshore earnings. At 30 June 2020, Super Group’s revenue and operating profit from non-South African businesses comprised 46% (June 2019: 48%) and 43% (June 2019: 50%) of Group total, respectively.
  • The Group has a strong financial position with an acceptable level of gearing, excluding IFRS 16 – well below 40%.
  • An experienced and skilled management team.
  • The financial strength, acumen and track record to explore growth opportunities.

Highlights

2020 in perspective

Covid-19 – the pandemic that disrupted the world and created unheralded business interruption

  • Supply Chain Africa’s results were impacted by depressed economic conditions and turmoil in the commodities businesses. Despite the majority of the Supply Chain businesses being classified as essential service providers during the high Covid-19 lockdown levels, the impact was still severe.
  • Supply Chain Europe continued to perform poorly on the back of a depressed automotive market in Germany, with automotive OEMs being closed for two months during the initial Covid-19 lockdown restrictions.
  • SG Fleet’s performance for the year was also under pressure mainly due to lack of consumer confidence in the last six months and further exacerbated by the Covid-19 lockdown regulations.
  • Fleet Africa managed to benefit from existing contracts and was mostly unaffected by Covid-19.
  • Dealerships SA and Dealerships UK were severely impacted by Covid-19, being closed for 40 days and 63 days respectively, during the SA and UK hard lockdown periods.
  • Super Group concluded the following corporate actions for the year ended 30 June 2020:
    • Acquired a 65% interest in Lieben Logistics and a 51% interest in GLS effective 3 July 2019. The purchase price of Lieben Logistics was R498.8 million and the purchase price of GLS was R96.4 million. These acquisitions form part of the Supply Chain Africa segment.
    • In January 2020, the Group acquired an additional 2.4% interest in Lieben Logistics for R13.1 million, taking its interest to 67.4%.
    • inTime acquired an 80% interest in TLT effective 5 July 2019 for R186.9 million. This acquisition forms part of the Supply Chain Europe segment.
    • Acquired an 80% interest in Zultrans, an express freight and distribution business, effective 1 March 2020, for a purchase consideration of R26.7 million.
    • Super Group’s effective shareholding in SG Fleet increased to 60.13% at 30 June 2020 from 59.2% at 30 June 2019. The increase in the Group’s shareholding in SG Fleet resulted from Super Group acquiring 2 600 000 shares for a total amount of R60.1 million during the year.
    • Super Group raised a total of R750 million in terms of its DMTN Programme dated 29 April 2020 (as amended) and listed the following senior unsecured notes:
      • SPG008 to the value of R250 million (3 year notes);
      • SPG009 to the value of R350 million (5 year notes); and
      • SPGC01 to the value of R150 million (12 month notes).