Remgro Limited · JSE:REM

Remgro — FY2011 Earnings Presentation

34 slides from Remgro's earnings presentation, Mar 31, 2011

  1. Slide 1: Results Presentation

    Results Presentation for the twelve months ended 31 March 2011

  2. Slide 2: Salient Features

    SALIENT FEATURES Twelve months ended 31 March Change 2011 2010 Headline earnings (R’m) 24.1% 4 164 3 355 Headline earnings per share (cents) 17.6% 811.6 690.1 Earnings per share (cents) 200.8% 1 893.5 629.4 Final dividend to be declared in September, payable November Increase in headline earnings pe

  3. Slide 3: Investment Activities During the 12 Months

    INVESTMENT ACTIVITIES DURING THE 12 MONTHS FirstRand, RMB Holdings (RMBH) & RMI Holdings (RMI)  During December 2010 FirstRand completed the merger of Metropolitan and Momentum as well as the subsequent unbundling of its entire shareholding in the merged entity MMI  During December 2010, RMBH comm

  4. Slide 4: Investment Activities During the 12 Months (continued)

    INVESTMENT ACTIVITIES DURING THE 12 MONTHS (continued) Trans Hex  On 13 September 2010 the 28.5% stake in Trans Hex was unbundled  Investment was classified as “held-for-sale” – no income was accounted for the period Medi-Clinic  During August 2010, a further R591.9 million was invested at R23 p/

  5. Slide 5: Investment Activities During the 12 Months (continued)

    INVESTMENT ACTIVITIES DURING THE 12 MONTHS (continued) Dark Fibre Africa  During the period, Remgro invested:  R11.0 million directly into Dark Fibre Africa (DFA);  an additional R134.5 million in the CIV group of companies ; and  advanced a 10-year shareholder’s loan facility of R85 million to

  6. Slide 6: Summary of Headline Earnings

    SUMMARY OF HEADLINE EARNINGS 12 Months 12 Months Change 31 March 31 March R’million % 2011 2010 Financial services 38.1 1 871 1 355 Industrial interests 3.5 2 051 1 982 Media interests 100.0 34 17 Mining interests 16.7 112 96 Technology interests 723.1 107 13 Other investments 139.1 25 (64) Central

  7. Slide 7: Contribution to Headline Earnings

    CONTRIBUTION TO HEADLINE EARNINGS (excl other, treasury & corporate costs) 31 March 2011 31 March 2010 Technology, Mining, Technology, Mining, 2.6% 2.8% 0.4% 2.7% Media, 0.5% Media, 0.8% Financial, Financial, 39.1% 44.8% Industrial, 49.1% Industrial, 57.2% Results presentation for the twelve months

  8. Slide 8: Financial Services

    Headline earnings Mar 2011 NAV Mar 2011 FSR FINANCIAL SERVICES FSR 19% 49% RMBH RMBH 51% RMI 54% 27% Headline earnings Intrinsic value Change 31 Mar 31 Mar Change 31 Mar 31 Mar R’million % 2011 2010 % 2011 2010 RMBH 33.2 959 720 27.2 12 447 9 785 RMI Holdings - - - - 6 041 - FirstRand 43.6 912 635 (

  9. Slide 9: Industrial Interests – Listed Investments

    Headline earnings Mar 2011 NAV Mar 2011 INDUSTRIAL INTERESTS – LISTED INVESTMENTS Non JSE JSE 52% Non JSE JSE 55% 48% 45% Headline earnings Intrinsic value Change 31 Mar 31 Mar Change 31 Mar 31 Mar R’million % 2011 2010 % 2011 2010 Medi-Clinic 3.0 474 460 18.1 8 209 6 948 Distell 12.1 315 281 7.0 4

  10. Slide 10: Industrial Interests – Unlisted Investments

    INDUSTRIAL INTERESTS – UNLISTED INVESTMENTS Headline earnings Intrinsic value Change 31 Mar 31 Mar Change 31 Mar 31 Mar R’million % 2011 2010 % 2011 2010 Balance b/f 2.9 1 075 1 045 4.8 17 331 16 539 Unilever SA 6.8 298 279 15.1 5 001 4 346 Tsb Sugar (49.8) 114 227 11.7 2 798 2 506 Air Products 20.9

  11. Slide 11: Unilever SA (25.8% interest)

    UNILEVER SA (25.8% interest) Change 12 Months 12 Months R’million % 31 March 2011 31 March 2010 Revenue 4.5 13 183 12 619 Operating profit 12.2 1 914 1 706 Finance charges 40.5 91 153 Earnings 7.6 1 151 1 070 Headline earnings 6.9 1 157 1 083  Increase in revenue driven by 6.6% volume growth, offse

  12. Slide 12: Tsb Sugar (100% interest)

    TSB SUGAR (100% interest) Change 12 Months 12 Months R’million % 31 March 2011 31 March 2010 Revenue 5.1 4 359 4 149 - Sugar (including 18.2% exports) 31.1 3 864 2 948 Operating profit (30.1) 218 312 Finance charges 1.8 54 55 Headline earnings (49.8) 114 227 Sugar production (tons) (4.6) 600 045 628

  13. Slide 13: Total SA (24.9% interest)

    TOTAL SA (24.9% interest) Change 12 Months 12 Months R’million % 31 Dec 2010 31 Dec 2009 Revenue 12.1 21 783 19 434 Operating profit 183.9 758 267 Finance charges 15.9 111 132 Headline earnings 153.6 317 125  Significant increase in international oil price driven by recovery in oil demand and polit

  14. Slide 14: Other Unlisted Industrial Interests

    OTHER UNLISTED INDUSTRIAL INTERESTS Air Products (50% interest) Change 12 Months 12 Months R’million % 31 March 2011 31 March 2010 Revenue 13.4 1 407 1 241 Operating profit 14.6 448 391 Headline earnings 20.9 278 230  Volumes continued to improve in most business segments Wispeco (100% interest) Ch

  15. Slide 15: Other Unlisted Industrial Interests (continued)

    OTHER UNLISTED INDUSTRIAL INTERESTS (continued) Kagiso Trust Investments (KTI) (42.5% interest) Change 12 Months 12 Months R’million % 31 Dec 2010 31 Dec 2009 Headline earnings 118.3 657 301  KTI’s largest investments are in MMI, Kagiso Media and Adcock Ingram  Significant increase in headline ear

  16. Slide 16: Other Unlisted Industrial Interests (continued)

    OTHER UNLISTED INDUSTRIAL INTERESTS (continued) PGSI (28.5% undiluted interest) Change 12 Months 12 Months R’million % 25 Dec 2010 25 Dec 2009 Revenue 7.0 2 905 2 716 Operating profit 29.2 93 72 Headline (loss) / earnings (800.0) (42) 6  Improvement in operating results driven largely by slowly imp

  17. Slide 17: Media Interests

    Headline earnings Mar 2011 NAV Mar 2011 MEDIA INTERESTS MARC MARC 2% 12% Sabido 98% Sabido 88% Headline earnings Intrinsic value Change 31 Mar 31 Mar Change 31 Mar 31 Mar R’million % 2011 2010 % 2011 2010 Sabido 954.5 116 11 17.5 1 428 1 215 MARC (60.0) 2 5 (9.0) 192 211 Other investments nm (84) 1

  18. Slide 18: Sabido (31.5% interest)

    SABIDO (31.5% interest) Change 12 Months 12 Months R’million % 31 Mar 2011 31 Mar 2010 Revenue 13.1 1 618 1 430 Operating profit 13.7 581 511 Headline earnings 14.6 401 350  Sabido has a range of media interests, the most significant being e.tv and eNews channel  All Media Products Survey indicate

  19. Slide 19: MARC Group (33.7% interest)

    MARC GROUP (33.7% interest) Change 12 Months 12 Months R’million % 31 Dec 2010 31 Dec 2009 Revenue (18.2) 507 620 Operating profit (6.1) 31 33 Headline earnings (23.1) 30 39  MARC is an investment company in:  the sport and entertainment industry in South Africa;  focusing on marketing and rights

  20. Slide 20: Mining Interests

    MINING INTERESTS Headline earnings Intrinsic value Change 31 Mar 31 Mar Change 31 Mar 31 Mar R’million % 2011 2010 % 2011 2010 Implats dividend 31.8 112 85 (8.5) 5 224 5 711 Trans Hex - - 11 - - 106 Total 16.7 112 96 (10.2) 5 224 5 817 Results presentation for the twelve months ended 31 March 2011 2

  21. Slide 21: Technology Interests

    Headline earnings Mar 2011 NAV Mar 2011 TECHNOLOGY INTERESTS Other 2% Tracker Other 12% SEACOM 28% 39% CIV CIV 26% 59% Tracker 34% Headline earnings Intrinsic value Change 31 Mar 31 Mar Change 31 Mar 31 Mar R’million % 2011 2010 % 2011 2010 Tracker - 57 - 31.3 1 196 911 SEACOM - (40) - (10.4) 1 003

  22. Slide 22: SEACOM (25.0% interest)

    SEACOM (25.0% interest)  SEACOM launched the first terabit undersea fibre-optic cable to connect Southern and Eastern Africa with Europe and Asia in July 2009  The cable connects South Africa, Mozambique, Tanzania, Kenya and Djibouti and onwards with the world via landing points in France, onwards

  23. Slide 23: Tracker (31.0% interest)

    TRACKER (31.0% interest) Change 12 Months 12 Months R’million % 31 Dec 2010 31 Dec 2009 Revenue 13.0 1 252 1 108 Operating profit 15.7 392 339 Headline earnings 13.5 261 230 Total subscribers 10.0 649 810 590 736  Tracker’s core business is the sale and installation of vehicle tracking systems for

  24. Slide 24: CIV Group (incl Dark Fibre Africa)

    CIV GROUP (INCL DARK FIBRE AFRICA) CIV FNS (41.2% effective interest) Change 12 Months 12 Months R’million % 31 Mar 2011 31 Mar 2010 Revenue 101.2 501 249 Operating profit 138.1 231 97 Headline earnings 150.0 135 54  Active in the power, telecommunication and information technology sectors  Dark F

  25. Slide 25: Other Investments, Treasury & Corporate

    OTHER INVESTMENTS, TREASURY & CORPORATE Headline earnings Intrinsic value Change 31 Mar 31 Mar Change 31 Mar 31 Mar R’million % 2011 2010 % 2011 2010 Other investments 139.1 25 (64) 28.8 514 399 Central treasury 14.0 65 57 20.3 5 610 4 662 Other net corporate - (101) (101) (2.3) 778 796 costs Total

  26. Slide 26: Total Cash at the Centre

    TOTAL CASH AT THE CENTRE At 31 March 2011 Local Offshore Total R’million Per Statement of financial position 2 412 2 326 4 738 Investment in government bonds / T-bills (> 3 months) - 1 711 1 711 Less: Cash of operating subsidiaries (820) (19) (839) Cash at the centre 1 592 4 018 5 610 Cash held in t

  27. Slide 27: Cash at the Centre Movement

    CASH AT THE CENTRE MOVEMENT 3,700 2 165 (1 253) 3,400 3,100 2,800 2,500 (1 160) 2,200 R million 1,900 1,600 1 420 1,300 (208) (16) 948 1,000 700 400 100 -200 Forex movements Other Investments made & loans Cash movement for the period Investments realised & loans Dividends paid Dividends received adv

  28. Slide 28: Summary of Intrinsic Value

    SUMMARY OF INTRINSIC VALUE Change As at As at R’million % 31 Mar 2011 31 Mar 2010 Financial services 17.4 22 906 19 504 Industrial interests 10.2 31 305 28 401 Media interests 8.2 1 620 1 497 Mining interests (10.2) 5 224 5 817 Technology interests 16.0 3 538 3 049 Other investments, central treasur

  29. Slide 29: Intrinsic Value

    INTRINSIC VALUE Change As at As at % 31 March 2011 31 March 2010 Discount to NAV 18.2% 19.4% - Intrinsic value – after CGT (Rand) 11.9 136.12 121.64 - Closing share price (Rand) 13.6 111.31 98.00 Results presentation for the twelve months ended 31 March 2011 29

  30. Slide 30: Future of Remgro's STC Credits

    Future of Remgro’s STC credits  Dividends Tax effective 1 April 2012  On 31 March 2011, Remgro and its wholly-owned subsidiaries had STC credits of R7 686 million  Indications are that Remgro will be able to use all its STC credits within the 5-year period specified by paying normal dividends Res

  31. Slide 31: Valuation of Unlisted Investments

    VALUATION OF UNLISTED INVESTMENTS Factors taken into consideration in determining the directors’ valuation: • Growth potential and risk; • Underlying NAV; • Profit history; and • Cash flow projections Unlisted investment Valuation method Discount Unilever SA Discounted cash flow Yes Total SA Forward

  32. Slide 32: Events After 31 March 2011

    EVENTS AFTER 31 MARCH 2011 Lashou Group Inc. (Lashou)  During April 2011 Remgro invested US$18.0 million for a 1.6% interest on a fully diluted basis  Lashou is a Chinese company specialising in group buying and location-based marketing campaigns KTI and Tiso Group  KTI and Tiso Group have entere

  33. Slide 33: Equity Accounting Periods for 15 Months to June 2011

    EQUITY ACCOUNTING PERIODS FOR 15 MONTHS TO JUNE 2011 Remgro June Financial year end Companies Remgro March Interim Financial Year End March / September • Dorbyl 12 Months to March 12 Months to March • Medi-Clinic • Air Products • CIV Group • Sabido June / December • Distell 12 Months to December 18

  34. Slide 34: For more information

    For more information www.remgro.com

Remgro — FY2011 Earnings Presentation on 6ix