Slide 1: Audited results and dividend announcement for the year ended 31 December 2018
FREIGHT + FINANCIAL www.grindrod.com Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 Presentation and announcement download www.grindrod.com > Investor relations
Slide 2: Strategy update
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 Strategy update Group Andrew Waller FREIGHT + FINANCIAL Maputo Port, Mozambique
Slide 3: Business backdrop
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Business backdrop Our activities are influenced by the following external factors: Global economic growth – 3.1% (2017: 3.2%) Global trade war anxiety Strong commodity prices but outloo
Slide 4: Strategy update: 2018 successes
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Strategy update 2018 successes Group Freight Services Financial Services Scale Steady growth across all businesses Completed Shipping spin-off Maputo Port berth rehabilitation and equip
Slide 5: Financial highlights
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 Financial highlights Group Andrew Waller FREIGHT + FINANCIAL
Slide 6: Financial highlights
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Financial highlights Continuing operations – Freight and Financial Services • Revenue inclusive of joint ventures up 16% to R24 655.3 million (2017: R21 275.9 million) • EBITDA inclusiv
Slide 7: 2018 Final results
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 2018 Final results Group Xolani Mbambo FREIGHT + FINANCIAL Grindrod Terminals, Richards Bay
Slide 8: Income statement
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Income statement Management income statement Var Comments Rmillion 2018 2017 (%) 16 Improved oil prices, graphite contracts logistics and Revenue 24 655 21 276 receipt from Zimbabwe gov
Slide 9: Profitability: headline earnings recovery from 2016 lows
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Profitability Headline earnings recovery from 2016 lows R’million 717 2018 146 > A 571 57% CAGR 290 180 A 155 B 56 A 96 A Port and Terminals B 80 B 125 C B Logistics 95 C 171 D C Marine
Slide 10: Cash and liquidity status – legal basis
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Cash and liquidity status – legal basis Cash and net debt analysis Cash vs debt – R’million Key covenant headroom 18 548 17 605 14 094 3.5 3.5 3.5 18 541 17 232 2.3 14 447 2.0 1.9 2016
Slide 11: Equity allocation
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Equity allocation Management basis Group Port and Group Port and (ROE: 6%) Terminals (ROE: 1%) Terminals (ROE: 6%) (ROE: 8%) 20% 24% 27% 34% 2018 2017 R9.3 bn R9.1 bn (ROE: 9%) (ROE: 8%
Slide 12: Income statement – discontinued operations
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Income statement – discontinued operations Management basis Var R’million 2018 2017 (%) Comments Revenue 2 148 5 876 (63) Six months revenue in 2018, full year in 2017 Trading results (
Slide 13: Operational overview: Freight Services
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 MICD, Mozambique Operational overview Freight Services Matola, Mozambique Denver, Rail siding, Gauteng Andrew Waller Marine services Clearing and forwarding Automotive FREIGHT + FINANCIAL Fuelogic Maputo P
Slide 14: Operational overview: Maputo Port and Terminals
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Operational overview Maputo Port Revenue • Record volumes achieved at 19.6 million tonnes, 7% higher than 2017 > • MPDC handled volumes up 15% to 7.8 million tonnes 7% H2 volumes • Bert
Slide 15: Drybulk volumes
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Drybulk volumes Historical drybulk volumes handled by Port and Terminals in Sub-Saharan Africa ‘000 tonnes 17,779 16,926 13,771 7,796 6,774 5,519 80 Chrome/ferrochrome Graphite 3,563 3,
Slide 16: Operational overview: Logistics
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Operational overview Logistics • South African operations all subject to soft local market conditions Revenue > • Ships Agency expanded its offering with the acquisition of Nova 16% • C
Slide 17: Volumes
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Volumes Warehouse capacity 2016 2017 2018 Var% Warehousing – number of bins* 19 065 28 415 28 415 - Warehousing - m2 155 317 115 801 164 501 42 Container depots – TEU 20 500 20 500 24 4
Slide 18: Operational overview: Marine Fuel and Agricultural Logistics
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Operational overview Marine Fuel and Agricultural Logistics • Improved Marine Fuel results driven by margin optimisation Revenue • > • IMO 2020 preparations in full swing Good growth in
Slide 19: Operational overview: Outlook
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Operational overview Outlook • Market in SA tough with low growth expectations • Buoyant minerals market expected to boost African trade • Stronger contracting position to drive higher
Slide 20: Operational overview: Financial Services
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 Operational overview Financial Services David Polkinghorne FREIGHT + FINANCIAL
Slide 21: Operational overview: Financial Services
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Operational overview Financial Services
Slide 22: Operational overview: Financial Services
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Operational overview • Earnings up on the prior year Core deposits • Core deposits (excluding retail) increased 14% to R8.9 billion > (December 2017: R7.8 billion) 14% • Advances grew 8
Slide 23: Operational overview: Outlook
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Operational overview Outlook • Market tough with low growth expectations • Organic growth across the business • Retail earnings growth will be off a revised base • Expect increased regu
Slide 24: Strategic outlook
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 Strategic outlook Andrew Waller FREIGHT + FINANCIAL
Slide 25: Strategic outlook
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Strategic outlook Freight Services • Focus on unlocking corridors • Increasing facilities and footprint • Reinforce commercial fundamentals • Increase utilisations • Provide improved so
Slide 26: Annexures
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 Annexures FREIGHT + FINANCIAL
Slide 27: Terminal capacity and utilisation
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Annexure Terminal capacity and utilisation Terminals H1 2018 H2 2018 Change 2018 2017 Change Annual (%) (%) capacity 2018 Drybulk (tonnes) 4 763 740 5 211 627 9 9 975 367 10 215 920 (2)
Slide 28: South African coal exports
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 FREIGHT + FINANCIAL Annexure South African coal exports Million tonnes 40 35 30 25 20 15 10 5 - Other Turkey India Pakistan Mozambique Netherlands Spain Egypt UAE South Korea Taiwan Sri Lanka Djibouti 2017
Slide 29: South African National Port volumes
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 Annexure South African National Port volumes TEUs YTD 2018 YTD 2017 Variance Variance % Deep sea landed full 1 624 720 1 467 730 156 990 11 Deep sea landed empty 247 692 291 982 (44 290) (15) Deep sea ship
Slide 30: Auto industry sector – South Africa
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 Annexure Auto industry sector – South Africa 800 000 600 000 Vehicle units 400 000 200 000 0 2012 2013 2014 2015 2016 2017 2018 South Africa: Vehicle imports, units South Africa: Vehicle exports, units (in
Slide 31: South African motor industry sales
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 Annexure South African motor industry sales Domestic sales Export sales 2018 2017 2016 2018 2017 2016 January 45 888 50 333 48 615 14 212 11 659 13 057 February 46 347 48 113 48 149 27 437 29 388 29 308 Ma
Slide 32: Thank you
Grindrod Limited Audited results and dividend announcement for the year ended 31 December 2018 Thank you FREIGHT + FINANCIAL