Omnia Holdings Limited · JSE:OMN
Omnia — H1 2010 Earnings Presentation
26 slides from Omnia's earnings presentation, September 2009
Slide 1: Interim Results Presentation for the Six Months Ended 30 September 2009
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2009
Slide 2: Group at a Glance
Group at a Glance OMNIA GROUP (PTY) LTD CHEMICALS MINING AGRICULTURE
Slide 3: The Omnia Proposition
The Omnia Proposition • Leverage intellectual capital and technology to create value for customers • Respond innovatively with differentiated products and services • Develop offerings positioned further up the pyramid model to broaden the value added
Slide 4: Key Drivers
Key Drivers • Downward valuation of inventory • Softening volumes • 21% strengthening of the rand
Slide 5: Major Features
Major Features 2009 2008 % change Revenue R 4.2 bn R 5.5 bn (22%) (Loss)/profit for the period (R 99 m) R 373 m (127%) Basic (Loss)/profit per share (218.2 cents) 839.0 cents (126%) • Extraordinary performance in prior period
Slide 6: Operating Environment
Operating Environment • Appreciation of the rand – Impacts negatively on all three divisions – Export markets uncompetitive for our customers – Downward valuation of inventories • Substantially lower commodity prices – Affected key raw materials as well as selling prices • Softer volumes – Manufactu
Slide 7: Monthly Sales Profile
Monthly Sales Profile The seasonal nature of agriculture typically impacts the balance sheet at the interim stage APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR
Slide 8: Operational Review – Chemical Division
Operational Review – Chemical Division 2009 2008 % change Revenue R 1.8 bn R 2.3 bn (20%) Profit for the period R 59 m R 156 m (62%) Operating margin 3% 7% • Group remains focused on long term growth – Acquisition of Petroleum Fine Products • Fall in operating margin due to: – Decline in internation
Slide 9: Operational Review – Mining Division
Operational Review – Mining Division 2009 2008 % change Revenue R 0.9 bn R 1.0 bn (11%) Profit for the period R 106 m R 126 m (16%) Operating margin 12% 13% • Reduced demand for commodities impacts on customer’s volumes – Coal, uranium, gold, iron ore less affected • Slow down of customers’ expansio
Slide 10: Operational Review – Agriculture Division
Operational Review – Agriculture Division 2009 2008 % change Revenue R 1.5 bn R 2.1 bn (30%) (Loss)/profit for the period (R 218 m) R 312 m (170%) Operating margin (14%) 14% • Prior period results extraordinary and atypical • Reduced demand in prior 6 months resulted in high carry-over stock • Stren
Slide 11: Raw Material Fundamentals
Raw Material Fundamentals International cost per ton ammonia vs urea
Slide 12: Raw Material Fundamentals
Raw Material Fundamentals @0® $1 400 $1 200 $1 000 $3800 $600 $400 $200 $- T r T 1 r 02-Sep-04 02-Sep-05 02-Sep-06 02-Sep-07 02-Sep-08 02-Sep-09 ——DAP fob US Gulf — MOP fob NW Europe be
Slide 13: Financial Review
FINANCIAL REVIEW creating customer wealth by leveraging knowledge www.omnia.co.za
Slide 14: Income Statement Features
Income Statement Features 6 Months 6 Months Full year 6 Months Sept Sept Mar Sept R million 2009 % 2008 2009 2007 SALES 4 249 (22%) 5 454 11 111 3 061 Other operating income 40 17% 34 30 37 Distribution cost (272) 1% (268) (639) (193) Administrative expense (243) (6%) (259) (546) (199) Operating exp
Slide 15: Operating Profit
Operating Profit Rm 700 600 500 400 300 200 100 - -100 Sept 2004 Sept 2005 Sept 2006 Sept 2007 Sept 2008 Sept 2009
Slide 16: Operating Profit – Interim Reporting
Operating Profit – Interim Reporting Rm 350 300 250 200 150 100 50 0 2005 2006 2007 2008 2009 2010 -50 -100 -150 -200 -250 Chemicals Mining Agriculture
Slide 17: Balance Sheet
Balance Sheet 6 Months 6 Months Full year 6 Months Sept Sept Mar Sept R million 2009 2008 2009 2007 CAPITAL AND RESERVES Stated capital 317 201 201 201 Treasury shares (10) (10) (11) (15) Other reserves (15) 141 286 18 Retained earnings 1 453 1 585 1 663 1 085 Minority interest (2) (2) (2) 2 Shareho
Slide 18: Balance Sheet
Balance Sheet 6 Months 6 Months Full year 6 Months Sept Sept Mar Sept R million 2009 2008 2009 2007 PROPERTY, PLANT AND EQUIPMENT 1 203 1 025 1 114 819 INTANGIBLE ASSETS 505 507 517 429 NET WORKING CAPITAL 1 793 2 193 1 761 1 345 Inventories 1 598 2 855 2 391 1 446 Trade and other receivables 1 549
Slide 19: Consolidated Cashflow Statement
Consolidated Cashflow Statement 6 Months 6 Months Full year 6 Months Sept Sept Mar Sept R million 2009 2008 2009 2007 Operating (loss)/profit (53) 594 877 192 Depreciation and amortisation 61 54 122 38 Finance cost (84) (63) (172) (43) Taxation paid (86) (167) (283) (61) Utilised by working capital
Slide 20: Segmental Analysis
Segmental Analysis 6 Months 6 Months Full year 6 Months Sept Sept Mar Sept R million 2009 2008 2009 2007 CHEMICALS Revenue 1 844 2 294 4 528 1 509 Operating profit 59 156 198 60 Operating margin 3% 7% 4% 4% Segment assets 1 698 1 966 2 070 1 534 Segment liabilities (865) (1 261) (1 150) (1 289) MINI
Slide 21: Debt : Equity Ratio – Interim Reporting
Debt : Equity Ratio – Interim Reporting Rm % 2 500 100 90 2 000 80 70 1 500 60 50 1 000 40 30 500 20 10 - 0 2004 2005 2006 2007 2008 2009 Debt Equity Debt:Equity ratio
Slide 22: Net Working Capital
Net Working Capital Rm 2 500 2 000 1 500 1 000 500 - Sept 2004 Sept 2005 Sept 2006 Sept 2007 Sept 2008 Sept 2009
Slide 23: Prospects
PROSPECTS creating customer wealth by leveraging knowledge www.omnia.co.za
Slide 24: Group Outlook - Short Term
Group Outlook - Short Term • Anticipate return to profitability for full year – Volumes beginning to recover in mining – Sales of shock tube increasing – Second half period fertilizer demand expected to normalise • Cost reduction activities progressing • Carbon credit sales expected in second half •
Slide 25: Group Outlook – Long Term
Group Outlook – Long Term • Company well-positioned in strategic sectors – Water, alternate energy and agriculture • Continuous assessment of acquisitions • Feasibility study for second nitric acid plant progressing • Management five year target set at 8% real growth off a base of R383 m beginning 0
Slide 26: Thank You
THANK YOU creating customer wealth by leveraging knowledge www.omnia.co.za