Slide 1: Grindrod Limited Unaudited interim results
PORT AND TERMINALS + LOGISTICS + BANK www.grindrod.com Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 Presentation and announcement download www.grindrod.com > Investor relations
Slide 2: Agenda
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Agenda I. H1 Focus and strategy update II. Financial performance III. Operational highlights IV. Strategic outlook V. Annexures VI. Supplementary company information
Slide 3: H1 Focus and strategy update
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 H1 Focus and strategy update Group Andrew Waller PORT AND TERMINALS + LOGISTICS + BANK Maputo Port, Mozambique
Slide 4: Business environment
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Business environment Backdrop to the first half of 2019 • Global economy slowing to 2.6% in 2019 (2018: 3.1%) • Continued US-China trade tensions • Uncertainty, instability and depr
Slide 5: Strategic review and focus
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Strategic review and focus Re-establish the core Review of core Establish timing Growth strategy Assessing markets, businesses and structured Corridor approach customers and Identif
Slide 6: Grindrod key focus corridors
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Grindrod key focus corridors
Slide 7: H1 Operational focus on the core
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK H1 Operational focus on the core Port, Terminals and Logistics Bank Group Scale Maputo Port mobile crane increases The core bank capitalised Maturing private equity and efficiency,
Slide 8: Exit of non-core
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Exit of non-core Marine Fuels and Agricultural Investments • The discontinued businesses comprise the Marine Fuel and Agricultural investments • Targeted exit by 2020 Impairments •
Slide 9: Financial performance
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 Financial performance Group Xolani Mbambo PORT AND TERMINALS + LOGISTICS + BANK
Slide 10: 2018 Restatement
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK 2018 Restatement Restated 2018 earnings and headline Headline Continuing Earnings earnings EPS HEPS R’ million R’ million cents cents 2018 reported 351 285 46.7 37.8 IFRS 5 - Rail l
Slide 11: IFRS 16 impact analysis
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK IFRS 16 impact analysis for six months ended June 2019 Balance sheet H1 H1 R’ million 2019 2018 Asset R1 345 R1 459 • IFRS 16 effective 1 January 2019; Grindrod elected a retrospect
Slide 12: Income statement
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Income statement Management income statement – continuing operations H1 H1 Var. R’ million 2019 2018 (%) Comments Revenue 2 352 2 004 17 Strong iron ore price, graphite contract and
Slide 13: Income statement
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Income statement Management income statement – discontinued operations H1 H1 Var. R’ million 2019 2018 (%) Comments Revenue 9 051 11 119 (19) Marine Fuel revenue, 2018 included Ship
Slide 14: Profitability
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Profitability Headline earnings – Continuing operations R’ million 137 Headline earnings > 118% 102 63 62 47 Port and Terminals Logistics 74 55 Bank Group (67) (61) (12) H1 2019 H1
Slide 15: Statement of financial position
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Statement of financial position Management basis H1 Dec R’ million 2019 2018 Comments Property, plant and equipment 4 936 4 953 Warehouse development , asset refurbishments and righ
Slide 16: Statement of cash flows
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Statement of cash flows Legal basis R’ million H1 H1 Comments 2019 2018 Operating profit from continuing operations 206 23 Operating profit from discontinued operations - 273 Non-ca
Slide 17: Cash and liquidity status
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Cash and liquidity status Net (Debt) / Cash – Legal Cash vs debt – R’million Cash vs debt – R’million (excluding Bank) (including Bank) 3 855 18 742 3 627 17 038 15 194 15 711 15 39
Slide 18: Operational highlights: Port and Terminals
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 Operational highlights Port and Terminals Andrew Waller PORT AND TERMINALS + LOGISTICS + BANK Grindrod Terminals, Walvis Bay
Slide 19: Operational highlights
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Operational highlights Port Revenue > • Improved earnings on weaker US dollar against rand 28% • Berths 6 to 9 infrastructure projects and 11 hectares chrome slab development Earnin
Slide 20: Operational highlights: Logistics
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 Operational highlights Logistics Andrew Waller PORT AND TERMINALS + LOGISTICS + BANK OACL
Slide 21: Operational highlights
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Operational highlights Logistics Seafreight and Intermodal Revenue 21% > • Seafreight and landside business reported improved volumes in cement, steel and mill shipments despite Bei
Slide 22: Operational highlights: Bank
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 Operational highlights Bank David Polkinghorne PORT AND TERMINALS + LOGISTICS + BANK
Slide 23: Operational highlights
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Operational highlights • Further capitalisation of R100 million following core advances growth Core deposits of 5.3% to R7.9 billion (December 2018: R7.5 million) > • Core deposits
Slide 24: Strategic outlook
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 Strategic outlook Grindrod Andrew Waller PORT AND TERMINALS + LOGISTICS + BANK Nacala cross dock facility
Slide 25: Strategic outlook - Infrastructure
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Strategic outlook - Infrastructure Existing infrastructure Expansion projects PORT PORT 19 600 000 tonnes p.a. Berths 6 to 9 and slab 7 TERMINALS 1 059 640 sqm 11 936 600 tonnes p.a
Slide 26: Outlook
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Outlook Port, Terminals Bank Group and discontinued and Logistics operations • Continued focus on unlocking trade • Introduction of new B-BBEE • Private equity portfolio value corri
Slide 27: Thank you
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 Thank you PORT AND TERMINALS + LOGISTICS + BANK
Slide 28: Annexures
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 Annexures PORT AND TERMINALS + LOGISTICS + BANK
Slide 29: Terminal capacity and utilisation
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Annexure Terminal capacity and utilisation Annual H1 H1 Change Change capacity Terminals 2019 2018 (%) 2018 2017 (%) 2019 Drybulk (tonnes) 4 416 107 4 663 897 (5) 9 975 367 10 215 9
Slide 30: South African coal exports
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Annexure South African coal exports Million tonnes South African coal exports (excluding India) mnt 6 South African coal exports to India mnt 5 25 4 20 3 15 2 10 1 0 5 Israel Senega
Slide 31: South African iron ore exports
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Annexure South African iron ore exports Million tonnes South African iron ore exports (excluding China) mnt South African iron ore exports to China mnt 21 3.0 19 2.5 2.0 17 1.5 15 1
Slide 32: South African National Port volumes
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 PORT AND TERMINALS + LOGISTICS + BANK Annexure South African National Port volumes TEUs YTD 2019 YTD 2018 Variance Variance % Deep sea landed full 755 860 801 814 (45 954) (6) Deep sea landed empty 138 360 122 348 16 01
Slide 33: Supplementary company information
Grindrod Limited Unaudited interim results for the six months ended 30 June 2019 Supplementary company information PORT AND TERMINALS + LOGISTICS + BANK
Slide 34: Port and Terminals
PORT TERMINALS Maputo Port Terminal de Carvao Maputo Port Development Company da Matola (TCM) Richards Bay Terminals (MPDC) 24.7% shareholding Port authority in Maputo 65% owned Grindrod (RBTG) Capacity of 7.3 million 59.7% owned MPDC handled tonnes p.a. Berthing priority – MoU Currently handling 7.
Slide 35: Logistics
Logistics CAPE TOWN MAPUTO Ocean Africa Maputo Intermodal Ocean Africa Container Lines Container Lines Container Depot 8 terminals in Maydon Wharf, Durban G Shed (MICD) (50% owned) 4,000 sqm warehouse Within the Maputo Access to 15 berths port precinct 118,202 sqm of yard Grindrod Intermodal Concess
Slide 36: Logistics
SHIPS AGENCY, MARITIME TECHNICAL Logistics SERVICES AND CLEARING AND FORWARDING LOGISTICS RAIL SERVICES Sturrock Grindrod Maritime Consultancy services Röhlig-Grindrod 42.5% owned Operating across 16 countries Pit to port rail logistics Warehouse facility design, implementation at Meadowview, Johann
Slide 37: Grindrod Bank
BANK Investments Grindrod Bank offers a wide Grindrod Bank maintains a variety of institutional and strong focus on developing its retail products to suit our intellectual capital. clients’ diverse needs. Accordingly, it sources Investment banking extraordinary individuals, with exceptional drive an