Slide 1: Grindrod Limited Unaudited Interim Results
FREIGHT + FINANCIAL www.grindrod.com Grindrod Limited Unaudited Interim Results for the six months ended 30 June 2018 WIFI access | guest@sun Presentation and announcement download | www.grindrod.com > Investor Relations
Slide 2: Highlights
FINANCIAL FREIGHT ++FINANCIAL FREIGHT GROUP Highlights Mike Hankinson
Slide 3: Business environment
HIGHLIGHTS FREIGHT ++FINANCIAL FINANCIAL FREIGHT Business environment • Global output estimated to grow by 3.2% in 2018 • China’s economic growth is projected at 6.6% for 2018 • US and Eurozone economic growth is projected to be moderate at 2.8% and 2.1% respectively in 2018 • South African economic
Slide 4: Strategic highlights
HIGHLIGHTS FREIGHT ++FINANCIAL FINANCIAL FREIGHT Strategic highlights Shipping • Shipping spin-off successfully implemented • Shipping market and outlook remain positive • New board in process of agreeing and executing the strategy • Shareholders now hold an entirely dollar based share with specific
Slide 5: Financial performance from continuing operations
HIGHLIGHTS FREIGHT ++FINANCIAL FINANCIAL FREIGHT Financial Performance from continuing operations – Freight and Financial Services • Revenue inclusive of joint ventures up 5% to R11 051.7 million (H1 2017: R10 515.9 million) • EBITDA inclusive of joint ventures up 21% to R531.2 million (H1 2017: R43
Slide 6: Financial (continued)
HIGHLIGHTS FREIGHT ++FINANCIAL FINANCIAL FREIGHT Financial (continued) Performance from total operations • Earnings per share 317.3 cents (H1 2017 loss per share: 11.5 cents) • Headline earnings per share 3.8 cents (H1 2017 headline loss per share: 17.2 cents) • Net asset value per share 1 257 cents
Slide 7: 2018 Interim results
FINANCIAL FREIGHT ++FINANCIAL FREIGHT GROUP 2018 Interim results Andrew Waller
Slide 8: Management income statement – Continuing operations
2018 INTERIM RESULTS FREIGHT ++FINANCIAL FINANCIAL FREIGHT Management income statement – Continuing operations R million H1 2018 H1 2017 % Comments Increase in bunker fuels revenue due to higher Revenue 11 052 10 516 5 crude oil price Good terminal utilisation offset by exchange rate Trading profit
Slide 9: Attributable profit by segment – Continuing operations
2018 INTERIM RESULTS FREIGHT ++FINANCIAL FINANCIAL FREIGHT Attributable profit by segment – Continuing operations H1 2018 H1 2017 400 450 46 (24) 351 17 350 400 (43) 104 80 350 342 300 300 174 250 133 R million R million 250 200 200 150 150 114 100 92 100 50 50 - - Port and Logistics Financial Marin
Slide 10: Management income statement – Discontinued operations
2018 INTERIM RESULTS FREIGHT ++FINANCIAL FINANCIAL FREIGHT Management income statement – Discontinued operations R million H1 2018 H1 2017 Comments Improved drybulk rates offset by decline in tanker rates and Revenue 2 090 2 888 exchange rate Trading loss (157) (23) Shipping (94) 131 Includes transa
Slide 11: Management balance sheet
2018 INTERIM RESULTS FREIGHT ++FINANCIAL FINANCIAL FREIGHT Management balance sheet R million 30 June 2018 31 Dec 2017 Comments Property, plant and equipment 2 931 2 769 Port and Terminals 1 149 1 086 Berth deepening Logistics 962 817 Syrah project Financial Services 191 195 Marine Fuels and Agricul
Slide 12: Net debt analysis
2018 INTERIM RESULTS FREIGHT ++FINANCIAL FINANCIAL FREIGHT Net debt analysis 2,050 1,800 1,550 1,300 1,050 1 275 891 800 R million 550 300 95 (83) (451) (7) 62 50 (200) (450) (700) (950) December Operating Working Interest/ Investments Proceeds June (1,200) 2017 cashflow capital dividends/ and capit
Slide 13: Operational overview – Freight Services
FINANCIAL FREIGHT ++FINANCIAL FREIGHT FREIGHT SERVICES Operational overview Bongiwe Ntuli
Slide 14: Operational overview – Port and Terminals
FREIGHT SERVICES FREIGHT ++FINANCIAL FINANCIAL FREIGHT Operational overview – Port and Terminals Maputo Port and Matola Terminal • Maputo Port continues to benefit from the access channel dredge, achieving strong volume growth • Total Port volumes at 9.7 million tonnes grew 15% on 2017 • MPDC handle
Slide 15: GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S15)
GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S15)
Slide 16: Operational overview – Port and Terminals (continued)
FREIGHT SERVICES FREIGHT ++FINANCIAL FINANCIAL FREIGHT Operational overview – Port and Terminals (continued) Richards Bay Terminals • Richards Bay volumes at 1.7 million tonnes, up 7% on 2017 Liquid Terminals • Construction of tank capacity at Nautilus site in Cape Town is progressing to plan – expe
Slide 17: GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S17)
GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S17)
Slide 18: Operational overview – Logistics
FREIGHT SERVICES FREIGHT ++FINANCIAL FINANCIAL FREIGHT Operational overview – Logistics • Cross-docking facility to execute the Syrah graphite logistics contract is complete and volume ramp-up in progress • Ships Agency and Clearing and Forwarding businesses were impacted by lower port calls and und
Slide 19: GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S19)
GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S19)
Slide 20: GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S20)
GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S20)
Slide 21: Operational overview – Rail
FREIGHT SERVICES FREIGHT ++FINANCIAL FINANCIAL FREIGHT Operational overview – Rail Rail operations • 14% increase in volumes on the North-South corridor • Zambian legislation encouraging volumes from road to rail • Mining development revitalised GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six
Slide 22: GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S22)
GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S22)
Slide 23: Activity and outlook
FREIGHT SERVICES FREIGHT ++FINANCIAL FINANCIAL FREIGHT Activity and outlook Activity Outlook • Execute Port investment on slab capacity and • Buoyant growth on chrome and ferrochrome volume handling equipment to capture benefit of channel is expected to deliver volume growth access depth • Impact of
Slide 24: Operational overview – Financial Services
FINANCIAL FREIGHT ++FINANCIAL FREIGHT FINANCIAL SERVICES Operational overview David Polkinghorne
Slide 25: Operational overview – Historical performance
FINANCIAL SERVICES FREIGHT ++FINANCIAL FINANCIAL FREIGHT Operational overview – Historical performance Net Asset Value Net Profit After Tax 1 400 250 1 200 200 1 000 800 150 600 100 400 200 50 - - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2006 2007 2008 2009 2010 2011 2012 201
Slide 26: Operational overview
FINANCIAL SERVICES FREIGHT ++FINANCIAL FINANCIAL FREIGHT Operational overview • Earnings well up on the prior year • Private equity valuations at similar levels • Strong performance from UK property portfolio • Large currency gain on the UK property portfolio • Small reduction in retail earnings as
Slide 27: Activity and outlook
FINANCIAL SERVICES FINANCIAL FREIGHT ++FINANCIAL FREIGHT Activity and outlook Activity Outlook • Drive focused business growth • Steady organic growth expected • Secure appropriate investment banking opportunities • Volatile stock market could impact asset management returns • Focus on well-secured
Slide 28: Marine fuel and agricultural logistics; and Discontinued operations
FINANCIAL FREIGHT ++FINANCIAL FREIGHT GRINDROD LIMITED Marine fuel and agricultural logistics; and Discontinued operations Andrew Waller
Slide 29: Operational overview – Marine fuel and agricultural logistics
GRINDROD LIMITED FREIGHT ++FINANCIAL FINANCIAL FREIGHT Operational overview – Marine fuel and agricultural logistics • Record carry over grain stock levels after largest national crop in the history of South Africa • Profitability levels improved to levels reported prior to drought cycles in 2016/20
Slide 30: Operational overview – Discontinued operations
GRINDROD LIMITED FREIGHT ++FINANCIAL FINANCIAL FREIGHT Operational overview – Discontinued operations Shipping • Shipping separately listed and distributed by way of dividend at its net asset value of US$320 million • Trading volume on the NASDAQ is minimal on limited US share liquidity • Share pric
Slide 31: GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S31)
GRINDROD LIMITED UNAUDITED INTERIM RESULTS for the six months ended 30 June 2018 (S31)
Slide 32: Operational overview – Discontinued operations (continued)
FREIGHT SERVICES FREIGHT ++FINANCIAL FINANCIAL FREIGHT Operational overview – Discontinued operations (continued) Rail assets held for sale Sierra Leone leased locomotives • Mine currently in care and maintenance • An impairment of R637.5 million has been recorded • Repatriation and sale options are
Slide 33: Outlook
FINANCIAL FREIGHT ++FINANCIAL FREIGHT GROUP Outlook Mike Hankinson
Slide 34: Outlook
GRINDROD GROUP FREIGHT ++FINANCIAL FINANCIAL FREIGHT Outlook • Freight infrastructure assets are well positioned to take advantage of an improvement in the domestic and global economy • Incremental volumes will improve profitability off a low base with available capacity • Commodity demand and prici
Slide 35: Annexure
FINANCIAL FREIGHT ++FINANCIAL FREIGHT Annexure
Slide 36: Terminal capacity – Utilisation for the six months ended 30 June 2018
ANNEXURE FREIGHT ++FINANCIAL FINANCIAL FREIGHT Terminal capacity – Utilisation for the six months ended 30 June 2018 Annual H1 H1 Change Total Total Change capacity Terminals 2018 2017 % 2017 2016 % 2018 Dry bulk (tonnes) 4 763 740 5 002 074 (5) 10 215 920 8 346 607 22 15 150 000 Matola Coal Termina
Slide 37: Disclaimer
DISCLAIMER FREIGHT ++FINANCIAL FINANCIAL FREIGHT Statements contained throughout this presentation regarding the prospects of the group have not been reviewed or reported on by the group's external auditors. The information supplied herein is believed to be correct but the accuracy thereof is not gu
Slide 38: www.grindrod.com www.grindrod.com GRINDROD
FINANCIAL + FREIGHT www.grindrod.com www.grindrod.com www.grindrod.com GRINDROD LIMITED GRINDROD LIMITED FREIGHT + FINANCIAL FINANCIAL + FREIGHT