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>> Supply Chain Solutions that Deliver. For Internal Use Only v052504 Our Clear Commitment: NextLeap The Journey after 8 Quarters Version 2.0
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- UTi CONFIDENTIAL - 2 NextLeap FIRST LEAP The Journey is under way … … but the road ahead is steep Growth Today 1993 2004 Version 2.0
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- UTi CONFIDENTIAL - 3 Int’l Carriers Passenger Airlines Air Cargo Truckers Ocean Freight Forwarding Warehousing Brokers Software Companies APS ERP Consulting Contract Manufacturers OEMs Packaging Companies Manufacturers’ Extension Distribution Integrators We have a tremendous opportunity … … and the space is wide open Global Integrated Logistics Version 2.0
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- UTi CONFIDENTIAL - 4 The Journey continues … … as we add solutions to our core services Global Local FIRST LEAP February 2002 1993 Global Integrated Logistics Range of Services and Solutions Total Outsourced Solution Freight Forwarding Services Customs/ Compliance Services Order Mgmt. Services Contract Logistics Services Integrated Supply-Chain Solutions Specialized Industry Solutions..... Version 2.0
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- UTi CONFIDENTIAL - 5 There is much to be done in our Journey … … towards Global Integrated Logistics Global Local FIRST LEAP February 2002 1993 Global Integrated Logistics Uniserv South Africa Union Air Transport Transtec Ocean Express Continental Range of Services and Solutions Total Outsourced Solution Freight Forwarding Services Customs/ Compliance Services Order Mgmt. Services Contract Logistics Services Integrated Supply-Chain Solutions Specialized Industry Solutions..... Version 2.0
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- UTi CONFIDENTIAL - 6 What does Global Integrated Logistics mean? Integration Stand Alone Services Customer Our Integration Triangle connects our Customer with … Version 2.0 … our Stand Alone Services.
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- UTi CONFIDENTIAL - 7 Our Integration Triangle has 3 elements … … Acct Mgmt, Visibility & Customized Solutions Customer Freight Forwarding Brokerage/ Compliance Contract Logistics Distribution These 3 integration elements deliver for the customer a common global experience … … while we continue to operate our services on a stand alone basis. Account Management Visibility Customized Solutions Version 2.0
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- UTi CONFIDENTIAL - 8 1 st Integration Element … … Account Management AMP SSP PSS PSS =Professional Selling Skills SSP =Solution Selling Process AMP =Account Management Process Our sales processes help strengthen customer relationships at all levels. Version 2.0
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- UTi CONFIDENTIAL - 9 2 nd Integration Element …... Visibility through eMpower 5 Track & trace at the SKU level anywhere, anytime on a real-time basis whether product is at "rest" or in "motion." Supplier ERP System Manufacturer ERP System Customer ERP System Version 2.0
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- UTi CONFIDENTIAL - 10 3 rd Integration Element … … Customized Solutions deliver value Recipe Spaghetti Dinner Solution Individual Ingredients Stand Alone Services Individual ingredients are combined to make a spaghetti dinner. Greatest value is captured when it is served at a restaurant. Restaurant Dinner Customized Solution Menu Version 2.0
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- UTi CONFIDENTIAL - 11 Stand Alone Services Level of Integration Basic Services Level of Specialization Customer Demand Highly Specialized Solutions Highly Integrated Solutions Customers Potential Strategic PLPs Customer Demand Why Global Integrated Logistics? Customer Demand is driving us toward highly Integrated and Specialized Solutions. Version 2.0
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- UTi CONFIDENTIAL - 12 Our key customers demand Integrated & Specialized Solutions in their Industries Apparel, Fashion & Textiles Pharma, Health & Beauty Auto & Assembly Chemicals Hi-Tech Electronics Others Version 2.0
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- UTi CONFIDENTIAL - 13 Constantly Create Higher Customer Value Passionately Focus on Customers Stand Alone Services Level of Integration Basic Services Level of Specialization Highly Specialized Solutions Highly Integrated Solutions How should we respond to this customer demand for solutions? Quickly Act on New Ideas Continuously Improve Quality We must strengthen our Core Services and expand to offer Solutions which deliver greater value to customers Core Services Version 2.0
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- UTi CONFIDENTIAL - 14 What does Our Clear Commitment mean? So what’s our progress after 8 quarters? Our Clear Commitment To deliver Global Integrated Logistics, we have given our Clear Commitment to achieve our NextLeap Target. Version 2.0
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- UTi CONFIDENTIAL - 15 161116 271217 381318 491419 5101520 First 20: Progress after 8 quarters … … customers being considered as S-20 PLPs 20 Strategic Customers Version 2.0
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- UTi CONFIDENTIAL - 16 Second 20: Progress after 8 quarters … … we are running ahead! 13 % Prior 5 Years 5 Years of NextLeap Revenue NextLeap Actual Net Revenue Growth NextLeap 20% Annual Target 20% Annual Revenue Growth 33% 47% 20 % Version 2.0
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- UTi CONFIDENTIAL - 17 Third 20: Progress after 8 quarters … … clearly lots of work to do in Freight Forwarding! 14% 20% Operating Margin Percent 20% Operating Ratio 5 Years of NextLeap 16% Prior Year Baseline Version 2.0 Freight Forwarding Operating Ratio NextLeap Annual Objective NextLeap Actual Result Freight Forwarding (incl. Customs Brokerage)
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- UTi CONFIDENTIAL - 18 Third 20: Progress after 8 quarters … … lots more work to do in Contract Logistics! 7% 10% Operating Margin Percent 20% Operating Ratio 5 Years of NextLeap 7% 6% Prior Year Baseline Version 2.0 Contract Logistics Operating Ratio NextLeap Annual Objective NextLeap Actual Result Contract Logistics (incl. Distribution)
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- UTi CONFIDENTIAL - 19 Fourth 20: We have created 3 dashboards … … but need to improve tools for measurement 20 Performance Metrics Company Freight Forwarding Contract Logistics Air Yield Ocean Yield On Time Performance Return on Invested Capital Customer Profitability Customer Satisfaction # PLPs… … Billing Accuracy Productivity Ratio Space Utilization Pick Accuracy …Safety DSOFCF Revenue Growth Operating Ratio Version 2.0
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- UTi CONFIDENTIAL - 20 Fifth 20: Great progress but … … need to step up Local Deployment & Initiatives Time Deliverables Feb 2002 8 quarters completed 12 quarters left to go 20 Quarters of Deliverables Version 2.0
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- UTi CONFIDENTIAL - 21 The Five 20s add up to a single NextLeap Target 20Strategic Customers 20%Annual Revenue Growth Rate 20%Operating Ratio 20Performance Metrics 20Quarters of Deliverables Version 2.0
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- UTi CONFIDENTIAL - 22 When we reach the NextLeap Target … … we will stand on The Podium as a winning team … Global Integrated Logistics Version 2.0
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- UTi CONFIDENTIAL - 23 Steps to the NextLeap Target remain unchanged Our Aim Core Initiatives Projects Strategy Foundation Version 2.0
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- UTi CONFIDENTIAL - 24 The First Step: Each customer’s success remains at the core of Our Purpose Strategy Foundation We Deliver Competitive Advantage to our Customer's Global Supply Chain Version 2.0
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- UTi CONFIDENTIAL - 25 Guiding Strategies underpin NextLeap’s foundation G LOBAL Growth P REDICTABLE Performance I Intelligent NFORMATION H USTLE S Supply Chain OLUTIONS Version 2.0 Strategy Foundation
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- UTi CONFIDENTIAL - 26 Our Principles set the rules by which our team will play the game Version 2.0 Strategy Foundation IntegrityTransparencyFreedom of Expression Accountability through Empowerment SafeguardsCorporate Citizenship
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- UTi CONFIDENTIAL - 27 Agility Passion By living these Differentiators each day, we separate ourselves from all competitors What makes us Different? Customized Solutions Quantified Value Integration Global Reach Deployment Version 2.0 Strategy Foundation
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- UTi CONFIDENTIAL - 28 The Second Step: Our Aim describes who we want to be at the end of NextLeap We are an agile, competent, disciplined and innovative team driving growth, performance and quantified value as the Primary Logistics Partner (PLP) to our global and local customers. We cherish long term relationships. We integrate our people, enterprise-wide processes and e-Business technology, with our partners, to deliver customized supply chain solutions, services, and information…worldwide. Our Aim Version 2.0
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- UTi CONFIDENTIAL - 29 Long term relationships … What does it mean to be a Primary Logistics Partner? Logistics – We deliver customized supply chain solutions, services and information through our worldwide network, by integrating our core services of freight forwarding, customs brokerage, order management, contract logistics and distribution. Primary – We aim to be the customer’s first choice and largest source of integrated logistics services and solutions, always in a direct relationship. Partner – We cherish intimate, long- term integrated relationships that drive mutual benefit. Integratio n Stand Alone Services Customer When we are successful with a PLP relationship, the customer is … “In the Triangle” Version 2.0
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- UTi CONFIDENTIAL - 30 The Third and Transforming Step: Core Initiatives …updated after 8 quarters, and accelerating! Core Initiatives Transformation Strategic Acquisitions Primary Logistics Partner Processes & Execution Identity, People & Org. I.T. Architecture Services, Solutions & Markets Original Business and Organization Our Aim Value Creation Quarters 1-8Quarters 9-15Quarters 16-20 Version 2.0
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- UTi CONFIDENTIAL - 31 The Fourth & Action Step: Enterprise Projects, Local Deployment & Local Initiatives deliver change Projects Version 2.0 NextLeap’s Enterprise Projects AND Local Deployment AND Local Initiatives Transform UTi’s Practices and Profile over 20 Quarters
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- UTi CONFIDENTIAL - 32 Enterprise Projects completed during the first 8 quarters Enterprise ProjectsCore Initiatives Vertical Markets Primary Logistics Partner 20 PLP’s Primary Logistics Partner Customer SOP Processes & Execution Yield Management I Processes & Execution Deploy uOrder Services, Solutions & Markets Management Incentive Plan Identity, People & Organization IT Architecture Proof of Concept IT Architecture Inzalo IT Architecture Supply Chain Visibility Services, Solutions & Markets Acquire Contract Logistics Capabilities Strategic Acquisitions Acquisition Criteria Strategic Acquisitions uBase Expansion IT Architecture Projects Version 2.0
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- UTi CONFIDENTIAL - 33 Active Enterprise Projects … … to be completed over the next several quarters Enterprise ProjectsCore InitiativesTarget Completion Effective Controls Processes & ExecutionQuarter 13 Corporate Governance Processes & ExecutionQuarter 10 People Strategy Identity, People & OrganizationQuarter 10 NextGen IT Architecture IT ArchitectureQuarter 9 Supply Chain Visibility Deployment Services, Solutions & MarketsQuarter 14 Customer Management System Primary Logistics PartnerQuarter 12 Business Intelligence Primary Logistics PartnerQuarter 11 uBase Deployment Process & ExecutionQuarter 12 Projects Pending Enterprise Projects FY05Core Initiatives Common Global Processes (for Freight Forwarding) Processes & Execution Yield Management II Processes & Execution Data Quality IT Architecture Strategic Procurement Processes & Execution Version 2.0
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- UTi CONFIDENTIAL - 34 Our Clear Commitment to the NextLeap Target … …and to stand on The Podium as a Winning Team Our Aim Core Initiatives Projects Strategy Foundation Version 2.0
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- UTi CONFIDENTIAL - 35 Without help from anyone, what can we do as a team locally to reach the NextLeap Target? … on The Podium 1.____________________________ 2.____________________________ 3.____________________________ 4.____________________________ 5.____________________________ Version 2.0
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