Slide 1: Audited Results and Dividend Announcement
AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT for the year ended 31 December 2015
Slide 2: Key Financial Information
G KEY FINANCIAL INFORMATION
Slide 3: Key Financial Information
KEY FINANCIAL INFORMATION an integrated business ● EBITDA decreased by 4% to R1 747 million (2014: R1 825 million) inclusive of joint ventures ● Headline earnings down 23% to R558.8 million (2014: R729.4 million) ● Ship carrying value impairment of US$100 million inclusive of joint ventures ● Loss p
Slide 4: Business Environment
BUSINESS ENVIRONMENT an integrated business ● China’s growth estimated at approximately 6.9% ● US economy expected to grow by 2.5% ● Europe and South Africa remain weak ● Low commodity price environment ● Dry-bulk shipping markets remain at low levels ● Tanker shipping markets at good levels Additio
Slide 5: Results 2015
G RESULTS 2015 i! ea
Slide 6: Management Income Statement – 2015
MANAGEMENT INCOME STATEMENT – 2015 an integrated business Growth R million 2015 2014 % Comments Revenue 27 995 28 760* (3) Trading profit 1 747 1 825 (4) Currency, increased asset base in Shipping and Depreciation and amortisation (902) (753) 20 Freight Non-trading items after tax (1 989) 231 (961)
Slide 7: Headline Earnings – 2015
HEADLINE EARNINGS – 2015 an integrated business Growth R million 2015 2014 % Comments Profit attributable to ordinary shareholders (1 426) 1 001 (243) Adjusted for: 1 985 (272) (830) Foreign currency translation reserve 2 (100) (102) Net profit on disposals (218) (430) (49) Richards Bay coal empower
Slide 8: Headline Earnings/Dividends per Share
HEADLINE EARNINGS/DIVIDENDS PER SHARE an integrated business HEADLINE EARNINGS PER SHARE (CENTS) DIVIDENDS PER SHARE (CENTS) 150 40 120 30 17.1 42.5 15.4 90 12.0 20.0 43.9 43.7 55.5 20 60 30.8 6.0 76.2 10 20.0 30 17.5 17.5 55.7 58.9 52.0 13.6 13.6 43.6 0 0 2011 2012 2013 2014 2015 2011 2012 2013 201
Slide 9: Headline Earnings by Division
HEADLINE EARNINGS BY DIVISION an integrated business 2015 2014 800 800 112 (52) 729 175 600 559 600 112 494 165 R million R million 400 400 54 228 200 200 0 0 Freight Shipping Financial Group Total Freight Shipping Financial Group Total Services Services Services Services GRINDROD LIMITED | AUDITED
Slide 10: Attributable Income by Division
ATTRIBUTABLE INCOME BY DIVISION an integrated business 2015 2014 200 1 200 (109) (1 426) 0 1 001 (1 496) 52 1 000 112 (200) 224 (400) 800 R million R million (600) 613 600 (800) (1 000) 400 (1 200) 200 (1 400) 165 14 (1 600) 0 Freight Shipping Financial Group Total Freight Shipping Financial Group T
Slide 11: Management Balance Sheet
MANAGEMENT BALANCE SHEET an integrated business Growth R million 2015 2014* % Comments Property, plant and equipment Currency, locomotive fleet, terminal and facility Freight Services 4 118 3 378 22 expansion Currency, impairments, dry-bulk and tanker Shipping 7 943 6 913 15 additions Financial Serv
Slide 12: Net Debt Analysis
NET DEBT ANALYSIS an integrated business 2 250 2 000 1 413 (349) 1 750 H2:735 (913) 1 500 R million 1 250 1 000 H1:678 750 (251) 543 500 (264) 250 (145) 34 0 Dec 2014 Cash Interest/ Investments Bank Loans to Proceeds on Dec 2015 generated from dividends/ and capital investment joint ventures disposa
Slide 13: Capital Commitments and Expenditure
CAPITAL COMMITMENTS AND EXPENDITURE an integrated business Capital expenditure Capital commitments Split as follows Approved Approved R million 2015 2016 2017 2018+ Total not contracted and contracted Freight Services 507 288 122 7 417 218 199 Port and Terminals 252 195 3 4 202 184 18 Rail 146 88 5
Slide 14: Markets
G MARKETS i! ea
Slide 15: IEA Energy Forecast – Base Scenario
IEA ENERGY FORECAST – BASE SCENARIO an integrated business ESTIMATED FINAL CONSUMPTION (mtoe) 5 000 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 1993 2013 2020e 2030e 2040e Solids Gas Oil Electricity Other • mtoe – million tonnes of oil equivalent • Other includes nuclear, hydro and renewab
Slide 16: Dry-Bulk Seaborne Trade
DRY-BULK SEABORNE TRADE an integrated business DRY-BULK SEABORNE TRADE GROWTH 6 000 CAGR 2016-17 Global dry-bulk seaborne trade 1.9% or ~89mt per annum declined by 6mt, or by 0.1%; first 5 000 decline since the global financial crisis. Over the next two years, growth 4 000 will resume but will be sl
Slide 17: Dry-Bulk Seaborne Demand Growth
DRY-BULK SEABORNE DEMAND GROWTH an integrated business 14 12 Incremental volumes 2014 2015 2016f 10 Iron ore 145 24 37 8 Million tonnes % Coal 2 (68) (16) 6 Grains 43 14 13 4 2 Steel 26 7 2 0 Bauxite and non-ferrous ores (105) 2 10 (2) Other 33 (3) 20 (4) 2015f 2016f 2017f 2003 2004 2005 2006 2007 2
Slide 18: Shipping: Capesize Bulk Carriers
SHIPPING an integrated business CAPESIZE BULK CARRIERS (100 000+ dwt tonnes) 350 No of ships Mdwt 300 Fleet (1 Jan 2016) 1 631 309.3 Total order book (1 Jan 2016) 240 48.5 250 Order book % of fleet 15 16 Number of ships % of fleet over 25 years 1 2 200 Est. % non-delivery in 2015* 31 30 Fleet growth
Slide 19: Shipping: Handymax Bulk Carriers
SHIPPING an integrated business HANDYMAX BULK CARRIERS (40 – 62 999 dwt tonnes) 500 No of ships Mdwt 400 Fleet (1 Jan 2016) 3 320 179.4 Total order book (1 Jan 2016) 601 36.6 Order book % of fleet 18 20 Number of ships 300 % of fleet over 25 years 3 3 Est. % non-delivery in 2015* 22 22 Fleet growth
Slide 20: Shipping: Handysize Bulk Carriers
SHIPPING an integrated business HANDYSIZE BULK CARRIERS (10 – 39 999 dwt tonnes) 500 No of ships Mdwt 400 Fleet (1 Jan 2016) 3 258 92.0 Total order book (1 Jan 2016) 397 14.1 Order book % of fleet 12 15 Number of ships 300 % of fleet over 25 years 12 10 Est. % non-delivery in 2015* 21 18 Fleet growt
Slide 21: Product Tanker Demand
PRODUCT TANKER DEMAND an integrated business 16 14 12 10 8 % change 6 4 2 0 (2) (4) (6) (8) 2009 2010 2011 2012 2013 2014 2015 2016e MR demand MR fleet World liquid fuel consumption Source: Affinity (Shipping) Ltd, February 2016 GRINDROD LIMITED | AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT – DECEMBER
Slide 22: Shipping: Medium-Range Products Tankers
SHIPPING an integrated business MEDIUM-RANGE PRODUCTS TANKERS (25 – 54 999 dwt tonnes) 250 No of ships Mdwt 200 Fleet (1 Jan 2016) 1 783 80.1 Total order book (1 Jan 2016) 200 9.6 Order book % of fleet 11 12 Number of ships 150 % of fleet over 25 years 4 3 Est. % non-delivery in 2015* 2 2 Fleet grow
Slide 23: Shipping: Small Chemical and Products Tankers
SHIPPING an integrated business SMALL CHEMICAL AND PRODUCTS TANKERS (15 – 19 999 dwt tonnes) 90 No of ships Mdwt 75 Fleet (1 Jan 2016) 573 10.4 Total order book (1 Jan 2016) 68 1.3 60 Order book % of fleet 12 12 Number of ships % of fleet over 25 years 6 6 Est. % non-delivery in 2015* 0 0 45 Fleet g
Slide 24: Freight Services Operational Overview
OPERATIONAL OVERVIEW FREIGHT SERVICES
Slide 25: Operational Highlights – Port and Terminals
OPERATIONAL HIGHLIGHTS – PORT AND TERMINALS an integrated business ● Maputo port revenue is up 2% on increased own volumes despite the fall in concession volumes ● Matola terminal throughput decreased 14% to 3.5 million tonnes, (2014: 4.1 million tonnes); increased magnetite offsetting reduced coal
Slide 26: Operational Highlights – Rail
OPERATIONAL HIGHLIGHTS – RAIL an integrated business ● Rail earnings decreased due to delays in rail infrastructure project spend and suspension of some large mining projects ● Sierra Leone business has been renegotiated at reduced rates for an extended period of seven years for all locomotives ● Co
Slide 27: Operational Highlights – Logistics
OPERATIONAL HIGHLIGHTS – LOGISTICS an integrated business ● Carrier Logistics successful turnaround process continues in automotive and fuel ● Ships agency and clearing and forwarding businesses continue to perform well, with focus on increasing activity in southern Africa cargo corridors ● Intermod
Slide 28: Strategy and Outlook
STRATEGY AND OUTLOOK an integrated business STRATEGY ● Focus on facility utilisation ● Reducing logistics costs to enable cargo movements in weak market ● Incremental expansion projects to improve efficiencies ● Assess opportunities to diversify geography and commodities associated with core busines
Slide 29: Shipping Operational Overview
OPERATIONAL OVERVIEW SHIPPING
Slide 30: Operational Highlights
OPERATIONAL HIGHLIGHTS an integrated business ● Strongest tanker market since 2008 ● Rates in dry bulk remain well below profitable levels ● Solid performance in ship-operating businesses ● Delivery of seven (five in joint venture) next generation eco fuel-efficient bulk carriers ● A further handysi
Slide 31: Strategy and Outlook
STRATEGY AND OUTLOOK an integrated business STRATEGY ● Careful management through the difficult market ● Expand fleet under commercial management OUTLOOK ● Tanker rates holding up at profitable levels despite deliveries ● The dry-bulk fleet is not covering costs at these low levels ● No new dry-bulk
Slide 32: Financial Services Operational Overview
OPERATIONAL OVERVIEW FINANCIAL SERVICES
Slide 33: Operational Highlights
OPERATIONAL HIGHLIGHTS an integrated business ● Above target in all businesses in both Bank and Asset Management ● Fees generated from Stockbroking significantly ahead of budget ● Good growth in UK Property Fund ● Retail: › Retained the 10 million SASSA-cardholder base as the SASSA contract remains
Slide 34: Strategy and Outlook
STRATEGY AND OUTLOOK an integrated business STRATEGY ● Drive focused business growth ● Pursue growth in assets under management ● Secure appropriate investment banking opportunities ● Focus on well-secured loans with low risk of default ● Expand Retail offering ● Expand the UK property portfolio OUT
Slide 35: Key Capital Projects Update
KEY CAPITAL PROJECTS UPDATE an integrated business ● Richards Bay terminal expansion to proceed on back of contractual volumes ● Ngqura liquid-bulk terminal continues to await NERSA tariffs ● Maputo port and Matola coal terminal dredge to proceed ● Withdrawal from Saldanha crude-oil terminal ● North
Slide 36: Group Strategy and Outlook
G GROUP STRATEGY AND OUTLOOK
Slide 37: Group Strategy and Outlook
GROUP STRATEGY AND OUTLOOK an integrated business STRATEGY ● To purposefully grow the business organically, by acquisitions and seeking synergies within the group, with specific focus on Africa, to become a respected fully integrated freight and logistics service provider › To provide logistic servi
Slide 38: Annexures
G ANNEXURES i! ea
Slide 39: Terminal Capacity – Utilisation as at December 2015
TERMINAL CAPACITY – UTILISATION AS AT 31 DECEMBER 2015 an integrated business Utilisation Annual Change capacity Terminals H1 2015 H2 2015 Total 2015 2014 % 2015 Dry bulk (tonnes) 4 040 561 3 872 181 7 912 742 13 770 729 (43) 18 650 000 Matola coal terminal1 1 904 854 1 612 409 3 517 263 4 076 779 (
Slide 40: 2015 Shipping and Commodity Price Performance
2015 SHIPPING AND COMMODITY PRICE PERFORMANCE an integrated business 200 Fall in prices for the year Jan 2015 – Dec 2015 Open Close % BDI index 771 478 38 Decrease 150 Iron ore 71 44 39 Decrease Thermal coal 63 48 23 Decrease Copper 287 213 26 Decrease Million tons 100 50 0 Jan 15 Apr 15 Jul 15 Oct
Slide 41: Dry-Bulk Daily Spot Rates (Baltic Indices)
DRY-BULK DAILY SPOT RATES (BALTIC INDICES) an integrated business 50 000 3 500 3 000 40 000 2 500 Index points US$ per day 30 000 2 000 1 500 20 000 1 000 10 000 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2014 2015 16 Baltic capesize Index
Slide 42: Scrapping
SCRAPPING an integrated business Handy* Handy* Handysize Handymax Panamax Capesize products chemical All other Total dwt 000 bulker bulker bulker bulker tanker tanker Total types scrapping 2010 2 700 400 700 2 700 3 200 1 400 11 100 16 900 28 000 2011 5 300 2 200 5 200 10 500 1 400 700 25 300 17 400
Slide 43: Disclaimer
DISCLAIMER an integrated business Statements contained throughout this presentation regarding the prospects of the group have not been reviewed or reported on by the group's external auditors. The information supplied herewith is believed to be correct but the accuracy thereof is not guaranteed and