Grindrod Limited · JSE:GND
Grindrod — H1 2021 Earnings Presentation
29 slides from Grindrod's earnings presentation, 2021
Slide 1: Welcome to our 2021 Interim Financial Results presentation
W E EC 0 M E to a presentation of our 2021 Interim Financial Results COMMENCEMENT 9am Once the presentation commences, you may type your questions in the Q&A section All questions will be answered at the end of the presentation Alternatively, questions can be emailed to fathima.ally @grindrod.com fo
Slide 2: Grindrod Limited Unaudited Interim Results six months ended 30 June 2021
PORT TERMINALS LOGISTICS BANK www.grindrod.com GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2021
Slide 3: Andrew Waller
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2021 ANDREW WALLER PORT AND TERMINALS + LOGISTICS + BANK
Slide 4: Performance Scorecard H1 2021
GRINDROD LIMITED RESULTS 2021 H1 Unaudited interim results for the six months ended 30 June 2021 Core Core Core PERFORMANCE SCORECARD revenue * trading profit * headline earnings * 5% 33% 1 376% R2.4 billion R779 million R345 million Cash generated Net Net debt to equity from operations asset value
Slide 5: Business Overview: Overall environment and performance
GRINDROD LIMITED FIRST HALF 2021 Unaudited interim results for the six months ended 30 June 2021 BUSINESS OVERVIEW Overall environment and performance • Exceptional circumstances continue in the first half of 2021 - COVID-19 waves continue to disrupt supply lines - Insurgency • Strong commodity dema
Slide 6: Fathima Ally
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2021 FAT H I M A A L LY PORT AND TERMINALS + LOGISTICS + BANK
Slide 7: Segmental Income Statement
GRINDROD LIMITED RESULTS 2021 H1 Unaudited interim results for the six months ended 30 June 2021 SEGMENTAL INCOME STATEMENT Rmillion H1 2021 H1 2020 * VAR (%) Comments Revenue 8 275 8 645 (4) Core operations 2 389 2 278 5 Non-core operations 5 886 6 367 (8) Lower Marine Fuels revenue Trading profit
Slide 8: Core Headline Earnings Analysis
GRINDROD LIMITED RESULTS 2021 H1 Unaudited interim results for the six months ended 30 June 2021 CORE HEADLINE EARNINGS ANALYSIS Total core Rmillion Port and Terminals Logistics Bank Group businesses H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 H1 2021 H1 2020 Headline earnings fr
Slide 9: Segmental Balance Sheet
GRINDROD LIMITED RESULTS 2021 H1 Unaudited interim results for the six months ended 30 June 2021 SEGMENTAL BALANCE SHEET 2021 2020 Rmillion June December * Comments Property, plant and equipment 3 011 3 366 Carrier transferred to held for sale, depreciation and stronger rand against the dollar Right
Slide 10: Segmental Balance Sheet (equity and liabilities)
GRINDROD LIMITED RESULTS 2021 H1 Unaudited interim results for the six months ended 30 June 2021 SEGMENTAL BALANCE SHEET 2021 2020 Rmillion June December * Comments Shareholders’ equity 7 604 7 975 Current period losses Interest-bearing borrowings 3 760 3 837 Lease liabilities 1 550 1 415 Acquisitio
Slide 11: Group Legal Net Debt Reconciliation
GRINDROD LIMITED GROUP LEGAL NET DEBT RECONCILIATION Unaudited interim results for the six months ended 30 June 2021 Rmillion (179) 10 (683) (677) 497 (226) (338) 532 (290) December June 2020 2021 Operating Working Interest / Investments Proceeds on Proceeds on Net non cash cashflow before capital d
Slide 12: Legal Net Debt Analysis (Excluding Bank)
GRINDROD LIMITED LEGAL NET DEBT ANALYSIS (EXCLUDING BANK) Unaudited interim results for the six months ended 30 June 2021 2021 2020 Total debt analysis % June December Rmillion Net debt to equity excluding lease liabilities 25 26 3 921 3 983 Net debt to equity 40 38 620 903 2021 2020 Rmillion June D
Slide 13: Net Asset Value per Share
GRINDROD LIMITED RESULTS 2021 H1 Unaudited interim results for the six months ended 30 June 2021 NET ASSET VALUE PER SHARE Non-core Division NAV Headline Return on R0.61 R0.64 (Rand / share) earnings* equity operations (Rand / share) (%) Freight and Group ** 6.91 0.90 13% R3.14 Bank 2.03 0.07 3% Tot
Slide 14: Xolani Mbambo
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2021 XOLANI MBAMBO PORT AND TERMINALS + LOGISTICS + BANK
Slide 15: Divisional Financial Performance
GRINDROD LIMITED DIVISIONAL FINANCIAL PERFORMANCE Unaudited interim results for the six months ended 30 June 2021 FINANCIAL PERFORMANCE – SEGMENTAL BASIS Port and Terminals Logistics Core 2021 H1 2020 H1 2021 H1 2020 H1 Rm Rm Rm Rm Revenue 495 483 1 640 1 498 Headline earnings 111 97 46 44 Net profi
Slide 16: Operational Performance – Port and Terminals
GRINDROD LIMITED DIVISIONAL OVERVIEW Unaudited interim results for the six months ended 30 June 2021 OPERATIONAL PERFORMANCE – PORT AND TERMINALS H1 operational highlights Maputo port volume (chrome / ferrochrome) (million tonnes) +16% +7% • COVID-19 vaccination over 90% in Maputo port and Matola te
Slide 17: Port and Terminals: H2 key focus areas
GRINDROD LIMITED DIVISIONAL OVERVIEW Unaudited interim results for the six months ended 30 June 2021 OPERATIONAL PERFORMANCE – PORT AND TERMINALS H2 key focus areas • Uplift rail allocation and port performance in Richards Bay • Optimise berth utilisation at Maputo port and Matola terminal • Address
Slide 18: Operational Performance – Logistics
GRINDROD LIMITED DIVISIONAL OVERVIEW Unaudited interim results for the six months ended 30 June 2021 OPERATIONAL PERFORMANCE – LOGISTICS H1 operational highlights H2 key focus areas • Strong performance at the coastal shipping and container • Focus on margins improvement business • Replace and / or
Slide 19: David Polkinghorne
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2021 D AV I D POLKINGHORNE PORT AND TERMINALS + LOGISTICS + BANK
Slide 20: Divisional Financial Performance – Bank
GRINDROD LIMITED DIVISIONAL FINANCIAL PERFORMANCE Unaudited interim results for the six months ended 30 June 2021 FINANCIAL PERFORMANCE – SEGMENTAL BASIS Bank Core 2021 H1 2020 H1 Rm Rm Revenue 223 214 Net profit 45 33 Net asset value 1 650 1 603 Core deposits 10 517 8 551 Loans and advances 8 636 7
Slide 21: Divisional Overview: Bank
GRINDROD LIMITED DIVISIONAL OVERVIEW Unaudited interim results for the six months ended 30 June 2021 BANK H1 operational highlights H2 key focus areas • Healthy growth in advances of 9% to • Continue focused lending R8.6 billion (December 2020: R7.9 billion) • SME banking growth • Strong core deposi
Slide 22: Andrew Waller
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2021 ANDREW WALLER PORT AND TERMINALS + LOGISTICS + BANK
Slide 23: Divisional Overview: Non-Core
GRINDROD LIMITED DIVISIONAL OVERVIEW Unaudited interim results for the six months ended 30 June 2021 NON-CORE Private equity • Market remains challenging • Grindrod concluded disposals of private equity assets resulting in total proceeds of R176.0 million, of which R163.7 million was received by per
Slide 24: Andrew Waller
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2021 ANDREW WALLER PORT AND TERMINALS + LOGISTICS + BANK
Slide 25: Market Outlook
GRINDROD LIMITED MARKET OUTLOOK Unaudited interim results for the six months ended 30 June 2021 Economic growth Container rates • Global growth is forecast at 5% 1 up from negative 3.7% from 2020 • Container rates at high levels • Acceleration of private sector participation programme in South Afric
Slide 26: Andrew Waller
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2021 ANDREW WALLER PORT AND TERMINALS + LOGISTICS + BANK
Slide 27: Divisional Overview: Port
GRINDROD LIMITED DIVISIONAL OVERVIEW Unaudited interim results for the six months ended 30 June 2021 PORT Tonnes H1 H1 Change 2021 2020 % 2020 Chrome / ferrochrome 3 039 076 2 461 037 23% 5 320 112 Sub-concession and other 6 396 834 6 367 328 -% 13 063 032 Port of Maputo 9 435 910 8 828 365 7% 18 38
Slide 28: Port and Terminals Capacity and Utilisation
GRINDROD LIMITED PORT AND TERMINALS CAPACITY AND UTILISATION Unaudited interim results for the six months ended 30 June 2021 TERMINALS Change Annual H1 2021 H1 2020 % FY 2020 capacity Drybulk (tonnes) 4 971 399 4 385 674 13% 9 396 223 15 150 000 Matola terminal 1 3 104 117 2 622 109 18% 5 501 651 7
Slide 29: Thank You
THANK YOU PORT For more information contact TERMINALS Fathima Ally LOGISTICS BANK P +27 31 302 7575 E fathima.ally@grindrod.com www.grindrod.com GRINDROD