Omnia Holdings Limited · JSE:OMN
Omnia — H1 2013 Earnings Presentation
47 slides from Omnia's earnings presentation, November 2012
Slide 1: Interim results for the six months ended 30 September 2012
Interim results for the six months ended 30 September 2012 WWW.OMNIA.CO.ZA 1
Slide 2: Group at a glance
Group at a glance Mining Agriculture Chemicals Results presentation for the period ended 30 September 2012 2
Slide 3: Geographical Scope
Geographical Scope Results presentation for the period ended 30 September 2012 3
Slide 4: Key Drivers Affecting Results
Key Drivers Affecting Results • Strong demand for mining explosives products • Growing demand from African economies • Good sales price increases in mining explosives products and fertilizer products • Favourable currency impact • Continued low activity levels in SA manufacturing sector Results pres
Slide 5: Key Financial Features
Key Financial Features • Profit up 58% to R 363 million • Operating margin up from 7.1% to 9.1% • EPS up 58% to 546.3 cents per share • Dividend up 50% to 150 cents per share Results presentation for the period ended 30 September 2012 5
Slide 6: Mining Overview
Protea Chemicals of the Omnia Grou
Slide 7: Overview - Mining
Overview - Mining 6 months 6 months 12 months % 30/9/2012 30/9/2011 31/3/2012 Revenue R 2.0 bn 46 R 1.4 bn R 3.1 bn Operating R 335 m 79 R 187 m R 476 m profit Operating 16.7% 13.6% 15.6% margin • Good demand for mining commodities and mineral markets Results presentation for the period ended 30 Sep
Slide 8: Commodity Prices - Energy
Commodity Prices - Energy $ 250 $ 200 $ 150 $ 100 $ 50 $- 30 Sep 07 30 Sep 08 30 Sep 09 30 Sep 10 30 Sep 11 30 Sep 12 Brent Crude $/barrel Coal $/ton Uranium $/lb Results presentation for the period ended 30 September 2012 8
Slide 9: Commodity Prices - Metals
Commodity Prices - Metals $ 2,500 $ 12,000 $ 10,000 $ 2,000 $ 8,000 Gold and Platinum $ 1,500 Copper $ 6,000 $ 1,000 $ 4,000 $ 500 $ 2,000 $0 $0 30 Sep 07 30 Sep 08 30 Sep 09 30 Sep 10 30 Sep 11 30 Sep 12 Gold $/oz Platinum $/oz Copper $/ton Results presentation for the period ended 30 September 201
Slide 10: Overview - Mining
Overview - Mining 6 months 6 months 12 months % 30/9/2012 30/9/2011 31/3/2012 Revenue R 2.0 bn 46 R 1.4 bn R 3.1 bn Operating R 335 m 79 R 187 m R 476 m profit Operating 16.7% 13.6% 15.6% margin • Good demand for mining commodities and mineral markets • Strong volume growth in mining explosives and
Slide 11: Agriculture Overview
omnia \“” NUTRIOLOGY * NUTRILOGIE
Slide 12: Overview - Agriculture
Overview - Agriculture 6 months 6 months 12 months % 30/9/2012 30/9/2011 31/3/2012 Revenue R 2.2 bn 16 R 1.9 bn R 4.5 bn Operating R 187 m 75 R 107 m R 323 m profit Operating 8.6% 5.7% 7.2% margin • Good sales price increases • Unfavorable Urea : Ammonia ratio – small effect in H1 Results presentati
Slide 13: Crop Prices
Crop Prices $ 450 $ 700 $ 400 $ 600 $ 350 $ 500 $ 300 Maize and Wheat $ 250 $ 400 Soybean $ 200 $ 300 $ 150 $ 200 $ 100 $ 100 $ 50 $0 $0 30 Sep 07 30 Sep 08 30 Sep 09 30 Sep 10 30 Sep 11 30 Sep 12 Maize $/ton Wheat $/ton Soybean $/ton Results presentation for the period ended 30 September 2012 13
Slide 14: Ammonia vs Urea Price
Ammonia vs Urea Price $ 1,000 $ 900 $ 800 $ 700 $ 600 $ 500 $ 400 $ 300 $ 200 $ 100 $0 30 Sep 07 30 Sep 08 30 Sep 09 30 Sep 10 30 Sep 11 30 Sep 12 UREA GRAN ME AMMONIA ME Results presentation for the period ended 30 September 2012 14
Slide 15: Ammonia vs Urea FOB Costs / kg N
Ammonia vs Urea FOB Costs / kg N $2.05 $1.85 $1.65 $1.45 $1.25 $1.05 $0.85 $0.65 $0.45 $0.25 $0.05 30 Sep 07 30 Sep 08 30 Sep 09 30 Sep 10 30 Sep 11 30 Sep 12 NH3/kg N Urea/kg N Results presentation for the period ended 30 September 2012 15
Slide 16: Phosphate and Potash Prices
Phosphate and Potash Prices $ 1,400 $ 1,000 $ 900 $ 1,200 $ 800 $ 1,000 $ 700 $ 600 $ 800 MOP DAP $ 500 $ 600 $ 400 $ 400 $ 300 $ 200 $ 200 $ 100 $0 $0 30-Sep-07 30-Sep-08 30-Sep-09 30-Sep-10 30-Sep-11 30-Sep-12 DAP US Gulf MOP NW Europe Results presentation for the period ended 30 September 2012 16
Slide 17: Overview - Agriculture
Overview - Agriculture 6 months 6 months 12 months % 30/9/2012 30/9/2011 31/3/2012 Revenue R 2.2 bn 16 R 1.9 bn R 4.5 bn Operating R 187 m 75 R 107 m R 323 m profit Operating 8.6% 5.7% 7.2% margin • Good sales price increases • Unfavorable Urea : Ammonia ratio – small effect in H1 • Gross margin imp
Slide 18: Chemicals Overview
OMNIA P| Protea acide J NE | chemicals aa A member of the Oma Group
Slide 19: Overview - Chemicals
Overview - Chemicals 6 months 6 months 12 months % 30/9/2012 30/9/2011 31/3/2012 Revenue R 1.8 bn 8 R 1.7 bn R 3.4 bn Operating profit R 25 m (56) R 57 m R 86 m Operating margin 1.4% 3.4% 2.5% • South African manufacturing sector performance remains at low levels • Small volume and price increases R
Slide 20: Index – Physical Manufacturing Volumes – South Africa
Index – Physical Manufacturing Volumes – South Africa January 2006 – October 2012 Results presentation for the period ended 30 September 2012 20
Slide 21: Overview - Chemicals
Overview - Chemicals 6 months 6 months 12 months % 30/9/2012 30/9/2011 31/3/2012 Revenue R 1.8 bn 8 R 1.7 bn R 3.4 bn Operating profit R 25 m (56) R 57 m R 86 m Operating margin 1.4% 3.4% 2.5% • South African manufacturing sector performance remains at low levels • Small volume and price increases •
Slide 22: Financial Overview
Financial Overview 22
Slide 23: Key Drivers of Revenue and Profits
Key Drivers of Revenue and Profits • USD : rand exchange rate • Affects selling prices and material costs • Translation of earnings of foreign operations • Effects translation of US dollar denominated equity • Commodity prices • Affects selling prices and material costs • Volumes • Urea : Ammonia ra
Slide 24: USD:ZAR rate AVERAGE and CLOSING rates
USD:ZAR rate AVERAGE and CLOSING rates F2011 AVE YTD Sept 2011 F2012 AVE YTD Sept 2012 R7.15 -8% AVE R6.98 +6% R7.41 -4% AVE R8.23 -18% R9.00 R8.50 R8.00 R7.50 R7.00 R6.50 R6.00 Y/E F2011 30 Sept 2011 Y/E F2012 30 Sept 2012 R6.75 / +7% R8.09 / -20% R7.66 / +5% R8.30 / -12% Results presentation for t
Slide 25: Income Statement
Income Statement 6 months 6 months 12 months Rm 30/9/2012 % 30/9/2011 31/3/2012 Revenue 6 017 22 4 952 10 945 Revenue Volumes Ave Price • Mining +46% +27% +19% • Agriculture +16% +2% +14% • Chemicals +8% +4% +4% Prospects Results presentation for the period ended 30 September 2012 25
Slide 26: Income Statement
Income Statement 6 months 6 months 12 months Rm 30/9/2012 % 30/9/2011 31/3/2012 Revenue 6 017 22 4 952 10 945 Cost of sales (4 701) 20 (3 915) (8 552) Gross profit 1 316 27 1 037 2 393 Gross profit % 21.9% 20.9% 21.9% • Mining improved – differentiated supply offering, backward integration e.g. emul
Slide 27: Income Statement
Income Statement 6 months 6 months 12 months Rm 30/9/2012 % 30/9/2011 31/3/2012 Revenue 6 017 22 4 952 10 945 Cost of sales (4 701) 20 (3 915) (8 552) Gross profit 1 316 27 1 037 2 393 Other operating income 71 27 56 70 Administrative expenses (280) 22 (230) (591) Distribution expenses (542) 14 (474
Slide 28: Operating margin / targets
Operating margin / targets Target H1-2012 H1-2011 FY2012 Mining 14-15% 16.7% 13.6% 15.6% Agriculture 11-13% 8.6% 5.7% 7.2% Chemicals 4.5-5.5% 1.4% 3.4% 2.5% Results presentation for the period ended 30 September 2012 28
Slide 29: Income Statement
Income Statement 6 months 6 months 12 months Rm 30/9/2012 % 30/9/2011 31/3/2012 Revenue 6 017 22 4 952 10 945 Cost of sales (4 701) 20 (3 915) (8 552) Gross profit 1 316 27 1 037 2 393 Other operating income 71 27 56 70 Administrative expenses (280) 22 (230) (591) Distribution expenses (542) 14 (474
Slide 30: Segmental Performance - Revenue
Segmental Performance - Revenue 7,000 6,000 5,000 4,000 R millions 3,000 2,000 1,000 0 Sept-08 Sept-09 Sept-10 Sept-11 Sept-12 Mining Agriculture Chemicals Results presentation for the period ended 30 September 2012 30
Slide 31: Segmental Performance - Revenue
Segmental Performance - Revenue 12,000 10,000 8,000 R millions 6,000 4,000 2,000 0 half FY09 half FY10 half FY11 half FY12 half FY13 year year year year year Mining Agriculture Chemicals Results presentation for the period ended 30 September 2012 31
Slide 32: Segmental Performance – Operating Profit
Segmental Performance – Operating Profit 700 600 500 400 300 R millions 200 100 0 Sept-08 Sept-09 Sept-10 Sept-11 Sept-12 -100 -200 -300 Mining Agriculture Chemicals Results presentation for the period ended 30 September 2012 32
Slide 33: Segmental Performance – Operating Profit
Segmental Performance – Operating Profit 1,000 800 600 R millions 400 200 0 half FY09 half FY10 half FY11 half FY12 half FY13 year year year year year -200 -400 Mining Agriculture Chemicals Results presentation for the period ended 30 September 2012 33
Slide 34: Balance Sheet
Balance Sheet 6 months 6 months 12 months Rm 30/9/2012 30/9/2011 31/3/2012 Assets Non-current assets 3 474 2 862 3 293 Current assets 5 814 4 818 4 022 Inventories 3 048 2 489 2 079 Trade and other receivables 2 766 2 329 1 943 9 288 7 680 7 315 • Non-current assets up R620m – Capex of R 488 million
Slide 35: Balance Sheet
Balance Sheet 6 months 6 months 12 months Rm 30/9/2012 30/9/2011 31/3/2012 Total equity 4 381 3 770 4 028 Deferred tax 250 126 257 Current liabilities 2 787 2 478 2 253 Net debt 1 870 1 306 777 9 288 7 680 7 315 Debt : equity 43% 35% 19% Results presentation for the period ended 30 September 2012 35
Slide 36: Debt : Equity Ratio – Interim Reporting
Debt : Equity Ratio – Interim Reporting 5,000 100% Debt and Equity R millions 4,500 90% Debt/Equity Ratio 4,000 80% 3,500 70% 3,000 60% 2,500 50% 2,000 40% 1,500 30% 1,000 20% 500 10% - 0% Sept-08 Sept-09 Sept-10 Sept-11 Sept-12 Net debt Equity Debt/Equity Ratio ADJ Debt/Equity Ratio Results present
Slide 37: Debt : Equity Ratio
Debt : Equity Ratio 5,000 100% Debt and Equity R millions 4,500 90% 4,000 80% Debt/Equity Ratio 3,500 70% 3,000 60% 2,500 50% 2,000 40% 1,500 30% 1,000 20% 500 10% - 0% first half FY09 first half FY10 first half FY11 first half FY12 first half FY13 Net debt Equity Debt/Equity Ratio ADJ Debt/Equity R
Slide 38: Debt : Equity Ratio
Debt : Equity Ratio 100% Debt and Equity R millions 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% first half FY09 first half FY10 first half FY11 first half FY12 first half FY13 Debt/Equity Ratio ADJ Debt/Equity Ratio Results presentation for the period ended 30 September 2012 38
Slide 39: Cash Flow
Cash Flow 6 months 6 months 12 months Rm 30/9/2012 30/9/2011 31/3/2012 Operating profit before dep /amortisation / non-cash items 669 450 1 078 Utilised by working capital (1 251) (1 029) (448) (582) (579) 630 Finance costs – net (34) (33) (43) Taxation paid (51) (7) (58) (Utilised by) / generated f
Slide 40: Market cap – R millions
- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Apr-02 Sep-02 Feb-03 Jul-03 Dec-03 May-04 Oct-04 Mar-05 Aug-05 Jan-06 Jun-06 Nov-06 Apr-07 Sep-07 Feb-08 Jul-08 Dec-08 May-09 Oct-09 Mar-10 Market cap – R millions Aug-10 Jan-11 Jun-11 Nov-11 Results presentation for the period ended 30
Slide 41: Prospects
Prospects 41
Slide 42: H2 Outlook – Mining division
H2 Outlook – Mining division • Maintain H1 volumes in H2 • Committed business from existing and new contracts very encouraging • High ammonia price and rand weakness will benefit earnings • Operating leverage Results presentation for the period ended 30 September 2012 42
Slide 43: H2 Outlook – Agriculture division
H2 Outlook – Agriculture division • Agriculture produce prices – support plantings • Estimate RSA maize plantings will increase by 5% • Rand fertilizer prices at good levels • New Nitric Acid Complex – improve gross margin • Unfavorable Urea:Ammonia ratio – reduce gross margin Results presentation f
Slide 44: H2 Outlook – Chemicals division
H2 Outlook – Chemicals division • South African Manufacturing sector to remain under pressure • Small improvement in H1 to H2 volumes • Small improvement in H1 to H2 gross margin percent • Continued focus on operational efficiencies and cost management • FY2013 operating margin to approximate FY2012
Slide 45: Thank you
Thank you WWW.OMNIA.CO.ZA 45
Slide 46: Our vision and strategy
Our vision and strategy VISION • Create customer wealth by leveraging knowledge • STRATEGY • providing specialised solutions to the mining, agricultural and chemical markets • focusing on unique market offerings that create value and, in so doing, earn a premium • concentrating on growing our intern
Slide 47: Our Value Proposition
Our Value Proposition Service through Our knowledge international strategy Values Differentiated products Commodities Results presentation for the period ended 30 September 2012 47