Slide 1: Grindrod Limited 2021 Final Results
GRINDROD LIMITED 2021 Final Results www.grindrod.com Geninprop
Slide 2: Welcome to a presentation of our 2021 Final Results
to a presentation of our 2021 Final Results COMMENCEMENT 9am Once the presentation commences, you may type your questions in the Q & A section PORT All questions will be answered at the end of the presentation TERMINALS LOGISTICS Alternatively, questions can be emailed to BANK fathima.ally@grindrod.
Slide 3: Highlights and Overview
HIGHLIGHTS AND GRINDROD LIMITED Provisional reviewed results and dividend announcement for the year ended 31 December 2021 Seafreight I CAPE TOWN ANDREW WALLER
Slide 4: Highlights and Overview: Stakeholder value creation
HIGHLIGHTS AND OVERVIEW Stakeholder value creation Core Core trading Core headline revenue * profit * earnings * 9% 32% 166% R5.2 billion R1.8 billion R886 million Net asset Cash generated Net debt to value from operations equity ratio excluding Bank R11.76 19% per share R1.0 billion 26% Dividends p
Slide 5: Business Overview: Overall environment and performance
BUSINESS OVERVIEW Overall environment and performance § Strong commodity markets and economic recovery § SADC growth is currently fueled by elevated commodity prices and a relaxation of stringent pandemic measures - Global logistics supply chain constraints continue - Recovery in global trade, but w
Slide 6: Finance Presentation
FINANCE PRESENTATION GRINDROD LIMITED Provisional reviewed results and dividend announcement for the year ended 31 December 2021 Drybulk terminal I RICHARDS BAY FATHIMA ALLY
Slide 7: Segmental income statement
R ESU LT S 2021 Segmental income statement Rmillion 2021 2020 VAR (%) Comments Revenue 18 037 16 370 10 Core operations 5 170 4 750 9 Improved volumes Non-core operation 12 867 11 620 11 Higher Marine Fuels revenue Trading profit 1 664 970 72 Core operations 1 786 1 356 32 Non-core operation (122) (
Slide 8: Core headline earnings analysis
R ESU LT S 2021 Core headline earnings analysis Port and Total core Rmillion Terminals Logistics Bank Group businesses 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Earnings from core businesses 384 226 (82) 137 97 38 141 (72) 540 329 Headline earnings adjustments 5 50 325 (16) - - 16 (30) 346 4
Slide 9: Segmental balance sheet
R ESU LT S 2021 Segmental balance sheet Rmillion 2021 2020 Comments Property, plant and equipment 3 144 3 366 Carrier transferred to held for sale in June 2021 Right of use asset 1 441 1 225 Acquisition of Durban port leases, UCD Beaconvale lease Intangible assets 976 1 091 Logistics impairments off
Slide 10: Segmental balance sheet (liabilities)
R ESU LT S 2021 Segmental balance sheet Rmillion 2021 2020 Comments Shareholders’ equity 8 571 7 975 Exchange rate, current year profits Interest-bearing borrowings 3 227 3 837 Repayment of overdraft and short-term borrowings Lease liabilities 1 558 1 415 New leases offset by repayments Deposits fro
Slide 11: Group legal net debt / cash reconciliation
GROUP LEGAL NET DEBT / CASH RECONCILIATION Rmillion ( 17) ( 150) 451 996 1 073 ( 768) ( 683) December Operating Working Interest / Investments Proceeds on December 2020 cashflow before capital and dividends / and capital disposal, forex 2021 Net debt working capital JV loans taxation expenditure and
Slide 12: Legal net debt analysis (excluding Bank)
LEGAL NET DEBT ANALYSIS (EXCLUDING BANK) Total debt analysis Rmillion 2021 2020 3 972 Rmillion Total debt 3 164 3 972 903 Less: cash (952) (939) 3 164 Net debt excluding Bank 2 212 3 033 540 957 2021 2020 % 1 040 Net debt to equity ratio 26 38 600 Net (cash)/debt to equity ratio including Bank (5) 9
Slide 13: Non-core proceeds utilisation
NON-CORE PROCEEDS UTILISATION DISPOSALS PROCEEDS APPLIED AS FOLLOWS Private equity debt Senwes repayments R450 million R367 million Share buy backs R30 million Private equity investments R312 million TOTAL PROCEEDS RECEIVED Repayment of Group overdraft R363 million Grindrod Shipping shares Private e
Slide 14: Financial performance – segmental basis
DIVISIONAL OVERVIEW Financial performance – segmental basis 2021 2020 Headline Non-core 0.74 1.79 0.89 operations NAV earnings Return Return (Rand / (Rand / on on Division share) share) equity equity 2.08 Freight and 7.15 1.18 17% 6% Group * NAV Bank 2.08 0.15 7% 3% R11.76 Total core operations ** 9
Slide 15: Divisional Overview
DIVISIONAL OVERVIEW GRINDROD LIMITED Provisional reviewed results and dividend announcement for the year ended 31 December 2021 Drybulk terminal I MATOLA XOLANI MBAMBO
Slide 16: Freight services – financial highlights
DIVISIONAL OVERVIEW Freight services – financial highlights Port and Terminals Logistics Core 2021 FY 2020 FY 2021 FY 2020 FY SHERQ Fatality (target: nil) - 1 - - LTI 5 6 18 20 LTIFR (target: <=0.5) 0.37 0.46 0.58 0.63 FINANCIAL Revenue (Rm) 1 413 1 082 3 242 3 232 EBITDA (Rm) 580 461 895 893 EBITDA
Slide 17: Divisional Overview: Port and Terminals
DIVISIONAL OVERVIEW GRINDROD LIMITED Transições I MOIANI PHOTOGRAPHY Provisional reviewed results and dividend announcement for the year ended 31 December 2021 Port I MAPUTO XOLANI MBAMBO
Slide 18: Port and Terminals – 2021 focus areas
DIVISIONAL OVERVIEW Port and Terminals – 2021 focus areas Activities Feedback Optimise berth utilisation at Maputo port and Matola terminal Record volumes at Maputo port and Matola drybulk terminal Address low margins at Matola terminal Discontinued road haulage into Matola in favour of rail Complet
Slide 19: Port and Terminals – operational highlights
DIVISIONAL OVERVIEW Port and Terminals – operational highlights +20% Maputo port (million tonnes) +16% +7% +17% Capacity 4.70 6.50 5.40 2.90 3.00 3.50 2.50 2.5 2.9 3.0 H1 2020 H2 2020 H1 2021 H2 2021 2020 2021 +51% Matola drybulk terminal (million tonnes) +10% +8% +68% Capacity 3.65 8.30 5.20 5.50 2
Slide 20: Port and Terminals – market outlook
DIVISIONAL OVERVIEW Port and Terminals – market outlook Current Short term Long term Market exposure fundamentals fundamentals Chrome ore / ferrochrome 9.4 mtpa Manganese 0.3 mtpa Coal 4.2 mtpa Iron ore 7.3 mtpa GRINDROD LIMITED Provisional reviewed results and dividend announcement for the year end
Slide 21: Port and Terminals – growth opportunities
DIVISIONAL OVERVIEW Port and Terminals – growth opportunities Additional Facility capacity Commodity Timing Matola drybulk 4.7 mtpa Iron ore / coal Medium term Maputo drybulk 3.0 mtpa Iron ore / coal Short term Richards Bay drybulk * 1.0 mtpa Coal / other Medium term Gqeberha drybulk 0.6 mtpa Mangan
Slide 22: Divisional Overview: Logistics
DIVISIONAL OVERVIEW GRINDROD LIMITED Provisional reviewed results and dividend announcement for the year ended 31 December 2021 Intermodal facility I DURBAN XOLANI MBAMBO
Slide 23: Logistics – 2021 focus areas
DIVISIONAL OVERVIEW Logistics – 2021 focus areas Activities Feedback Replace and / or grow footprint in the container business Three sites under development Optimise graphite export solution Developing an alternative channel for the customer Finalise the container depot merger deal with Maersk Compl
Slide 24: Logistics – market outlook
DIVISIONAL OVERVIEW Logistics – market outlook Current Short term Long term Market exposure fundamentals fundamentals Container 300 000m2 Graphite 360 000 tpa Agriculture N/A * East Africa EAMT ** Rail 55 locos (owned) * Citrus and grapes currently limited to container volumes only. ** East Africa M
Slide 25: Logistics – growth opportunities
DIVISIONAL OVERVIEW Logistics – growth opportunities Facility Probability Impact Timing Container Medium High Medium term Rail (deployment / open access) Medium High Medium / long term East Africa footprint Medium Medium Medium term Northern Mozambique LNG Low High Uncertain GRINDROD LIMITED Provisi
Slide 26: Divisional Overview: Bank
DIVISIONAL OVERVIEW GRINDROD LIMITED Provisional reviewed results and dividend announcement for the year ended 31 December 2021 DAVID POLKINGHORNE
Slide 27: Financial performance – segmental basis: Bank
DIVISIONAL FINANCIAL PERFORMANCE Financial performance – segmental basis Bank Core 2021 FY 2020 FY Rm Rm Revenue 488 378 Net profit 97 38 Net asset value 1 672 1 603 Core deposits * 10 264 8 551 Loans and advances 8 321 7 933 * Excludes retail deposits. GRINDROD LIMITED Provisional reviewed results
Slide 28: Bank operational highlights and 2022 key focus areas
DIVISIONAL OVERVIEW Bank Operational highlights 2022 key focus areas § Healthy growth in advances of 5% to R8.3 billion § Growth in loans and advances by continuing (December 2020: R7.9 billion) focused lending § Strong core deposit funding base at R10.3 billion § SME banking growth (December 2020:
Slide 29: Divisional Overview
DIVISIONAL OVERVIEW GRINDROD LIMITED Provisional reviewed results and dividend announcement for the year ended 31 December 2021 Bunker barge I ROTTERDAM ANDREW WALLER
Slide 30: Update on disposal process
UPDATE ON DISPOSAL PROCESS Business Feedback Senwes Disposal fully executed in first quarter of 2021 Grindrod Shipping shares Completed in 2021 Private equity Two material investments remaining (portfolio value of R622 million) Marine Fuels Management is working with business and partners to exit (n
Slide 31: Market Outlook
GRINDROD LIMITED Provisional reviewed results and dividend announcement for the year ended 31 December 2021 Intermodal facility I DURBAN ANDREW WALLER
Slide 32: Market outlook
MARKET OUTLOOK Current Projected growth Current Growth areas / Region growth rate rate 2022 presence commodities Attractiveness GLOBAL* 5.9% 4.9% SADC South Africa: 5.0% South Africa: 2.2% All Coal, magnetite, Significant resources, Mozambique: 2.5% Mozambique: 5.3% manganese, chrome, economic Zimba
Slide 33: For more information contact
For more information contact PORT Fathima Ally TERMINALS LoGIsTICcS P +2731 302 7575 BANK E fathima.ally@grindrod.com www.grindrod.com - G@RINDROD
Slide 34: Port, Terminals, Logistics, Bank
PORT TERMINALS LOGISTICS BANK CG GRINDROD
Slide 35: Divisional Overview: Port
DIVISIONAL OVERVIEW Port H1 H2 FY FY Change Tonnes 2021 2021 2021 2020 % Chrome / ferrochrome 3 039 076 3 499 269 6 538 345 5 320 112 23 Sub-concession and other 6 396 834 9 329 496 15 726 330 13 063 032 20 Port of Maputo 9 435 910 12 828 765 22 264 675 18 383 144 21 Trucks per day into Maputo (aver
Slide 36: Port and Terminals capacity and utilisation
PORT AND TERMINALS CAPACITY AND UTILISATION Terminals H1 H2 FY FY Change Template 2021 2021 2021 2020 % capacity Drybulk (tonnes) 4 971 399 8 010 117 12 981 516 9 396 223 38 15 150 000 Matola terminal 1 3 104 117 5 168 919 8 273 036 5 501 651 50 7 300 000 Richards Bay 1 696 937 2 091 143 3 788 080 3