Grindrod Limited · JSE:GND
Grindrod — H1 2023 Earnings Presentation
31 slides from Grindrod's earnings presentation, 2023
Slide 1: Presentation commencement and Q&A instructions
IENCEMENT 9am Once the presentation commences, you may type your questions in the Q & Asection All questions will be answered at the end of the presentation Alternatively, questions can be emailed to fathima.ally@grindrod.com for a response in due course www.grindrod.com PORT TERMINALS LOGISTICS GRI
Slide 2: Grindrod Limited 2023 Interim Financial Results
, * we 6 bat 4 ( onl - et. 2 GRINDROD LIMITED 2029 Imterim Financial Results BOR ae _ EOGISTICS ‘ \ GRINDROD
Slide 3: Safety: Our priority
S A F E T Y F IR S T Safety Our priority SHERQ 2023 Interim June 2022 Target Fatality nil nil nil LTI 7 9 nil LTIFR 0.36 0.40 <=0.5 GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2023 Container depot I CAPE TOWN
Slide 4: Xolani Mbambo
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2023 Stevedoring I RICHARDS BAY XOLANI MBAMBO
Slide 5: Macro context: Dynamic operating environment
O V E R V IE W A N D H IG H L IG H T S Macro context I Dynamic operating environment GLOBAL SADC § Geopolitical uncertainties persist § Economic growth of 3.2% § Milder winter in Europe softening energy demand § Inflation in the region reported at 8.6% (ex-Zimbabwe) § China´s economic growth slower
Slide 6: Macro context: Commodity price and container performance
O V E R V IE W A N D H IG H L IG H T S Macro context I Dynamic operating environment Commodity price and container performance Chrome 18% Lithium (26%) Chrome 46% 337% 17% 114% Ferrochrome Ferrochrom 0% Copper (2%) (4%) (5%) e 63% 50% Iron ore fines (3%) Coal (52%) Iron Ore (24%) 122% 49% 90% Mangan
Slide 7: Highlights: Financial
O V E R V IE W A N D H IG H L IG H T S Highlights I Financial Operational Financial Shareholder Record port Core Core headline volumes EBITDA earnings 30% 16% 26% 5.9 million tonnes R1.1 billion R563 million Mozambique Interim ordinary terminal volumes Core ROE dividend 17% 19% 100% 6.0 million tonn
Slide 8: Xolani Mbambo
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2023 Drybulk terminal I RICHARDS BAY XOLANI MBAMBO
Slide 9: Port and Terminals: 2023 H1 highlights
P O R T A N D T E R M IN A L S Port and Terminals I 2023 H1 highlights Maputo port volumes grew 30% to a record 5.9mt § Record monthly performance of 1.0mt - April and May 2023 § Delivery of two additional mobile harbor cranes Grindrod drybulk terminals volumes handled 7.5mt § Matola volumes grew 10
Slide 10: Port and Terminals: Performance highlights
P O R T A N D T E R M IN A L S Port and Terminals I Performance highlights Port volumes Terminals volumes (mtpa) (mtpa) 16.0 13.0 8,44 8.5 9.8 9.4 7.6 8,01 8.0 6.8 5,31 5.3 H2 5,01 5.0 H1 CAGR 24% H1 CAGR 20% 3,87 3.8 H2 3,74 3.7 7,54 7.5 7,49 7.5 5,89 5.9 4,52 4.5 H1 4,39 4.4 4,97 5.0 3,08 3,77 3.8
Slide 11: Xolani Mbambo
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2023 Port I MAPUTO XOLANI MBAMBO
Slide 12: Logistics: 2023 H1 highlights
L O G IS T IC S Logistics I 2023 H1 highlights § Northern Mozambique performance up 15% on prior period § East Africa expansion progressing, spent R207 million capex during the period § Agency and clearing and forwarding business delivered good performance § Newly formed container business joint ven
Slide 13: Xolani Mbambo
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2023 North Coast properties I DURBAN XOLANI MBAMBO
Slide 14: Non-core: Overview
N O N -C O R E Non-core I Overview PRIVATE EQUITY The private equity portfolio exit is largely complete LAND Recovery of advances secured by property will not be immediate; Grindrod have improved security ranking MARINE FUELS Business remains profitable, margins vary with oil price movements GRINDRO
Slide 15: Finance: Fathima Ally
FINANCE GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2023 Drybulk terminal I MATOLA FATHIMA ALLY
Slide 16: Segmental income statement from continuing operations
2 0 2 3 H 1 R E S U LT S Segmental income statement from continuing operations Rmillion 2023 H1 2022 H1 * VAR (%) Comments Revenue 11 031 10 972 1 Core operations 3 795 2 876 32 Volume growth Non-core operations 7 236 8 096 (11) Softening of oil prices Trading profit 1 071 885 21 Core operations 1 1
Slide 17: Financial highlights: Healthy earnings growth
2 0 2 3 H 1 R E S U LT S Financial highlights Healthy earnings growth Port and Terminals Logistics Core 2023 H1 2022 H1 * 2023 H1 2022 H1 * Rmillion Rmillion Rmillion Rmillion Revenue 1 483 1 139 1 668 1 489 EBITDA 576 451 497 547 EBITDA margin (%) 39 40 30 37 Headline earnings 393 299 172 240 Retur
Slide 18: Core business headline earnings analysis
2 0 2 3 H 1 R E S U LT S Core business headline earnings analysis Port and Terminals Logistics Group Total Rmillion 2023 2022 * 2023 2022 * 2023 2022 * 2023 2022 Earnings from core businesses 247 295 275 205 (2) (73) 520 427 Headline earnings adjustments 146 4 (103) 35 - (20) 43 19 Headline earnings
Slide 19: Segmental balance sheet
2 0 2 3 H 1 R E S U LT S Segmental balance sheet June Dec Rmillion 2023 * 2022 Comments Fixed assets 3 793 3 119 Grindrod Logistics JV, capital additions Right of use asset 1 592 1 129 Grindrod Logistics JV Intangible assets 971 851 Grindrod Logistics JV Investments 1 495 1 535 Other assets 448 453
Slide 20: Net debt reconciliation (excluding joint ventures)
2 0 2 3 H 1 R E S U LT S Net debt reconciliation (excluding joint ventures) Rmillion 375 (417) (182) (241) 53 (426) 356 December Net cash Interest / Investment Proceeds Non-cash June 2022 generated dividends / and capital on disposal movement 2023 from taxation expenditure in lease operations liabil
Slide 21: Net debt based on operational cash
2 0 2 3 H 1 R E S U LT S Net debt based on operational cash (excluding joint ventures) June Dec Total debt analysis Rmillion 2023 2022 Rmillion Total debt 2 696 2 788 Less: operational cash ^ (1 306) (1 456) 2 788 2 696 Net debt 1 390 1 332 281 411 Net debt to equity ratio (%) 14 15 Net debt to equi
Slide 22: Financial performance: Segmental basis
2 0 2 3 H 1 R E S U LT S Financial performance I Segmental basis NAV Non-core (Excluding movement Core businesses 1.06 1.64 in FCTR) operations R12.55 NAV Headline 2023 2022 (Rand / earnings * Return Return Division share) (Rand / share) on equity * on equity * Total core businesses 10.63 2.09 19% 1
Slide 23: Xolani Mbambo
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2023 Drybulk terminal I MATOLA XOLANI MBAMBO
Slide 24: Portfolio of commodities: Diversification remains imperative
OUTLOOK Portfolio of commodities I Diversification remains imperative GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2023
Slide 25: Balanced capital allocation framework H1 2023
OUTLOOK Balanced capital allocation framework H1 2023 Cash generated from operations Strong cash R375 million conversion Dividends declared 47% of total Balance sheet 34.4 cents per share headline earnings flexibility Capex growth Container Magnetite East Africa R0.6 billion R1.9 billion Rail H1 202
Slide 26: Conclusion
OUTLOOK Conclusion Driven by our purpose - to make a positive difference in Africa’s trade with the world, touching lives of the communities in which we operate Driving our ESG Executing on Superior returns aspirations strategy to shareholders § Community, people and § Driving customer solutions § E
Slide 27: For more information contact
For more information contact Fathima Ally P +27 31 302 7575 E fathima.ally@grindrod.com ‘www.grindrod.com PORT TERMINALS LOGISTICS _ @RInDROD
Slide 28: Port Terminals Logistics
PORT TERMINALS LOGISTICS - G@RINDROD
Slide 29: Terminals capacity and utilisation
T E R M IN A L S C A PA C IT Y A N D U T IL IS AT IO N Terminals H1 H1 Change H2 FY FY Template 2023 2022 % 2022 2022 2021 capacity Drybulk (tonnes) 7 488 483 7 543 444 (1) 8 441 144 15 984 588 12 981 516 15 150 000 Matola terminal 1 2 4 233 885 3 848 198 10 4 262 502 8 110 700 8 273 036 7 300 000 M
Slide 30: Port capacity and utilisation
P O R T C A PA C IT Y A N D U T IL IS AT IO N Port H1 H1 Change H2 FY FY Tonnes 2023 2022 % 2022 2022 2021 Own handled 1 5 893 393 4 523 319 30 5 311 954 9 835 273 7 638 362 Sub-concession and other 8 693 429 7 733 164 12 9 203 779 16 936 943 14 626 314 Port of Maputo 14 586 822 12 256 483 19 14 515
Slide 31: Forward-looking statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. All statements other than statements of historical facts included in this presentation are or may be forward-looking statements. These statements reflect management's current expectations, beliefs, hopes, intentions or