Letter from the CEO

Dear shareholders,

It is also my pleasure to present Logista’s 2022 Integrated Annual Report in which we offer an account of the Company’s operations during this financial year, as well as its economic performance and financial results.

This has without a doubt been a key financial year for Logista, with the Company posting positive results at a time of adversity. The war between Russia and Ukraine has only served to exacerbate the problem of spiralling fuel and energy costs and the inflationary environment that has taken hold not just in Spain but across all the countries in which we operate. In addition to this, in March this year, the transport sector also had to deal with the effects of a strike by lorry drivers in Spain who decided to take a stand against the soaring fuel costs. All this in a context in which the economy was expected to bounce back after overcoming the COVID-19 pandemic.

However, despite this unfavourable backdrop, at Logista, we haven’t just been able to overcome the obstacles faced – achieving positive results that not only show growth at a rate that outstrips pre-pandemic levels – but we have also remained fully focused on our growth strategy and on bolstering our leading position in European logistics and distribution, successfully acquiring companies that we believe will lead to powerful synergies.

In this regard, Logista’s inorganic growth strategy maps out a plan that will see us break into more countries and widen the scope of services offered across the different businesses. The announcement of three acquisitions that will play a key part in our performance show that this plan is already well and truly on track and carves out a very promising picture for the future of our Company.

The first was the acquisition of 70% of Speedlink Worldwide Express, a company specialising in time-critical deliveries that are sent to or from Belgium and the Netherlands. This acquisition allows Logista to internationally expand its Nacex services in Benelux, whilst also strengthening our position in medical-health distribution, by extending our portfolio of services beyond Spain and Portugal.

We will also strengthen our position in the national and international transport sectors for the food and pharmaceutical industries, becoming the second largest operator in full load and temperature-controlled transport thanks to the acquisition of 60% of Transportes El Mosca, a Spanish company specialising in goods transport and storage, the transport of refrigerated or frozen goods and high-volume transport. With this acquisition, our Company will extend our catalogue of services, incorporating new capacities in temperature-controlled transport that complement our existing business lines, such as the refrigerated container sea freight service to the Balearic and Canary Islands and to other international markets, as well as a grouping service targeting the horticulture sector

The acquisition of Carbó Collbatallé – a Spanish company specialising in cold chain transport and logistics for the food industry – will allow Logista to double down on the services offered in temperature-controlled transport by adding the shipping of frozen goods to its portfolio of services

We expect to close and consolidate these last two acquisitions during Q1 FY2023.

I would also like to highlight on this letter the solid performance registered by Logista’s businesses and mention some of the most noteworthy developments. Nacex remains deeply invested in innovation, launching a new sustainable electric micro-mobility vehicle in collaboration with Scoobic. The Scoobic eBox is the first vehicle to comply with the regulations governing the use of PMVs (Personal Mobility Vehicles) in the country and will help Nacex to carry out 30% more last-mile deliveries per hour than with a traditional van. This is just one example of how we are putting our steadfast commitment to ensuring we offer our clients the best possible service into practice, with the increased delivery rate and positive performance of rates in the B2B business leading to very strong results for this business.

Sales have also climbed in Logista Pharma, primarily on the back of the distribution of medicines to patients’ homes from hospital pharmacies and the distribution of veterinary medicines. The tobacco and related products, convenience products, transport and publications businesses have all also grown in the Spanish and Portuguese markets.

In Italy, we have extended the services offered, adding new categories and products, and we have dynamised our sales force to continue growing our client base. In this regard, I would like to highlight our success in securing new points of sale in the HORECA channel.

Also, and consistent with last financial year, the Company has successfully increased the distribution of electronic transactions in France and has continued to grow in the categories of food, household products and electronic cigarettes, which have partially mitigated the decline in volumes of traditional business.

Our unwavering commitment to excellence in client services has meant that the business has performed well and posted very positive financial results in a truly challenging context. To be precise, revenue came in at €11,464 million, up 6% on financial year 2021. Economic sales also rose 5% to €1,235 million and EBIT stood at €266 million, 11% more than in financial year 2021.

Economic sales increased in the Iberian market and in Italy, climbing by 9% and 2% respectively, while they were 4% down on the previous financial year’s figure in France.

This year generated capital gains of €14 million, higher than the €2 million registered last financial year, due to the sale of three non-operating assets in Spain. This has allowed us to offset the rise in restructuring costs and the impact of the divestment in Supergroup, one of our businesses in France.

As a result, the adjusted EBIT came in at €312 million, 5% up year-on-year, in spite of inflationary pressures and the adverse business climate. Net profit for the financial year rose 14% to €199 million, which in line with our shareholder remuneration policy would result in the distribution of a dividend of €1.38 per share allocated to the financial year

With these results we have once again shown that as a company, we are fully prepared to overcome adversities and continue to prosper in difficult and challenging times. This without a doubt serves as a testament to Logista’s strength and resilience.

We have also continued to roll out our new branding this financial year, one which represents the exciting future that we have before us. Logista’s growth story continues apace, conscious of the key role that we play in our sector and the importance of bolstering our leading position in southern Europe.

Our immediate future is closely linked with diversifying our business and growing it internationally via the strategic acquisition of companies with whom we share core values such as excellence in client service, innovation and respect for the environment.

I would invite you to read this report and also take a look at our consolidated annual accounts to gain a more in-depth insight into these matters.

I would like to dedicate these last few lines to thanking and congratulating every single member of the Logista team, as it is their hard work and professionalism that has enabled the Company to register such a good performance and consolidate our position as a benchmark across our industry and a strategic partner for all our clients. I would also like to extend my sincere thanks to you, our shareholders, for the trust you continue to place in Logista. Rest assured that we will remain focused on successfully implementing our growth and value creation strategy to ensure a future of success for our Company.

Thank you.

Íñigo Meirás