Grindrod Limited · JSE:GND
Grindrod — H1 2024 Earnings Presentation
24 slides from Grindrod's earnings presentation, 2024
Slide 1: Financial Results
Financial Results COMMENCEMENT 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 PORT ’ ’ ; TERMINALS Alternatively, questions can be emailed to LOGISTICS fathima.ally@grindrod.com for a response in due
Slide 2: Grindrod Limited 2024 Interim Financial Results
GRINDROD LIMITED 2024 Interim Financial Results
Slide 3: Xolani Mbambo
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2024 Drybulk terminal I MATOLA XOLANI MBAMBO
Slide 4: Macro context: Remarkable resilience in Africa
O V E R V IE W A N D H IG H L IG H T S Macro context I Remarkable resilience in Africa GLOBAL SADC § Higher interest rates and supply chain disruptions § Economic growth of 2.2% projected for 2024 impacted global growth § Continued inflationary pressures, energy deficits, and § Geopolitical tensions
Slide 5: Commodity price and container rates
O V E R V IE W A N D H IG H L IG H T S Commodity price and container rates Copper 5% Iron ore fines 0% (4%) (2%) (5%) (24%) Spodumene (77%) Chrome 5% (18%) 19% 394% 46% Lithium (75%) Ferrochrome (6%) carbonate (41%) (2%) 339% (4%) Graphite (33%) Manganese 12% (19%) (10%) 44% 5% Containers (25%) Coal
Slide 6: Performance overview
O V E R V IE W A N D H IG H L IG H T S Performance overview Safety Operational Financial Capital allocation Port Core Cash generated Fatality volumes EBITDA * from operations 1 fatality 18% R1.0 billion 13% 6.9 million tonnes R425 million Drybulk terminal Core headline Interim ordinary LTIFR volumes
Slide 7: Xolani Mbambo
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2024 Drybulk terminal I MATOLA XOLANI MBAMBO
Slide 8: Port and Terminals: Operational overview
P O R T A N D T E R M IN A L S Port and Terminals I Operational overview Maputo port volumes grew 18% to 6.9mt § Rail handling at port enhanced by system integration with CFM § Technology enabled visualisation projects implemented Grindrod drybulk terminals volumes handled 8.4mt § Matola volumes rep
Slide 9: Port and Terminals: Volume performance
P O R T A N D T E R M IN A L S Port and Terminals I Volume performance Port volumes Terminals volumes (mtpa) (mtpa) 12.6 17.7 17.5 9.8 14.9 7.7 6,70 6.7 9.0 9.4 5,30 5.3 H2 9.0 3,90 H1 CAGR 22% H1 CAGR 12% H2 3.9 6,94 6.9 5,90 5.9 8.7 8.1 8.4 3,80 4,50 4.5 H1 5.9 H1 3.8 22021 021 22022 022 22023 023
Slide 10: Xolani Mbambo
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2024 Rail I MATOLA XOLANI MBAMBO
Slide 11: Logistics: Operational overview
L O G IS T IC S Logistics I Operational overview § Ships agency and clearing and forwarding businesses achieved growth of 38% § Logistics impacted by lower container volume throughput § Structural reorganisation of the rail business complete § Repatriation of 13 locomotives from Sierra Leone underwa
Slide 12: Finance: Fathima Ally
FINANCE GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2024 Drybulk terminal I RICHARDS BAY FATHIMA ALLY
Slide 13: Segmental income statement
2 0 2 4 H 1 R E S U LT S Segmental income statement Core % Non-core % Total Total Cash generated Rmillion 2024 H1 Change 2024 H1 Change 2024 H1 2023 H1 from operations Revenue 3 772 (1) 10 313 43 14 085 11 031 R424.8 million Trading profit 1 039 (7) (73) (49) 966 1 071 (2023 H1: R374.9 million) Depr
Slide 14: Financial review: Headline earnings maintained
2 0 2 4 H 1 R E S U LT S Financial review I Headline earnings maintained Port and Terminals Logistics Core 2024 H1 2023 H1 2024 H1 2023 H1 Rmillion Rmillion Rmillion Rmillion Revenue 1 453 1 483 2 214 1 668 EBITDA 482 576 536 497 EBITDA margin (%) 33 39 24 30 Headline earnings 398 393 178 172 Return
Slide 15: Segmental balance sheet
2 0 2 4 H 1 R E S U LT S Segmental balance sheet % % Total Total Rmillion Core Change Non-core Change Jun 2023 Dec 2023 Group Fixed and intangible assets 6 512 (2) 51 >100 6 563 6 677 3.2 CAPEX (Rmillion) Investments 1 455 11 43 (54) 1 498 1 402 460.3 Other assets 481 9 - - 481 442 North Coast prope
Slide 16: Net debt reconciliation based on operational cash
2 0 2 4 H 1 R E S U LT S Net debt reconciliation based on operational cash (excluding joint ventures) Rmillion (711) (1 221) (1 622) 425 (422) (350) (78) 374 24 December Net cash Interest / Capital Proceeds Non-cash June 2023 * generated dividends / expenditure on disposal movement in 2024 * from ta
Slide 17: Net debt based on operational cash
2 0 2 4 H 1 R E S U LT S Net debt based on operational cash (excluding joint ventures) Jun Dec Rmillion 2024 2023 Total debt 2 900 2 623 Less: operational cash ^ (1 278) (1 402) Net debt 1 622 1 221 Net debt to equity ratio (%) 16 12 ^ Excludes ring-fenced cash of R1.1 billion allocated for capital
Slide 18: Xolani Mbambo
GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2024 Multi-purpose terminal I DURBAN XOLANI MBAMBO
Slide 19: Looking ahead cautiously
OUTLOOK Looking ahead cautiously MARKET OUTLOOK OPTIMISE OPERATIONS INFRASTRUCTURE SUSTAINABLE INVESTMENT SHAREHOLDER RETURNS Business fundamentals and commodity markets Unlock value and position for the future GRINDROD LIMITED Unaudited interim results for the six months ended 30 June 2024
Slide 20: For more information contact
For more information contact Fathima Ally P +2731 302 7575 E fathima.ally@grindrod.com www.grindrod.com PORT TERMINALS LOGISTICS - @RInDROoD
Slide 21: Port, Terminals, Logistics
PORT TERMINALS LOGISTICS _ @RInDROD
Slide 22: 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 2024 2023 % 2023 2023 2022 capacity Drybulk (tonnes) 8 375 737 8 169 852 3 9 433 772 17 603 624 17 682 645 17 150 000 Matola terminal 1 2 4 141 583 4 233 885 (2) 4 699 499 8 933 384 8 110 700 7 300 000 Ma
Slide 23: 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 2024 2023 % 2023 2023 2022 Own handled 1 6 941 208 5 893 393 18 6 670 490 12 563 883 9 835 273 Sub-concession and other 8 451 635 8 693 429 (3) 9 983 285 18 676 714 16 936 943 Port of Maputo 15 392 843 14 586 822 6 16 653 775 3
Slide 24: Forward-looking statements
ward-looking statements. All statements other than included in this presentation are or may be forward-looking flect management's current expectations, beliefs, hopes, ding the future and assumptions in light of currently available 1-looking statements are subject to risks and uncertainties. stateme