Slide 1: Audited Results and Dividend Announcement
AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT for the year ended 31 December 2014
Slide 2: Highlights
HIGHLIGHTS
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS an integrated business Revenue increased Total assets ▲ 2% to R32 717 million ▲ 14% to R37.3 billion (2013: R32 135 million) (2013: R32.6 billion) Headline earnings Earnings per share ▲ 4% to R729.4 million ▲ 26% to 147.6 cents (2013: R701.8 million) (2013: 199.1 cents) ● Net ca
Slide 4: Strategic Highlights
STRATEGIC HIGHLIGHTS an integrated business ● Successful raise of R2.4 billion secures equity for growth plan ● Successful B-BBEE consortium transaction of R1.6 billion ● Good volumes from terminal businesses despite adverse market conditions ● Good progress with shipping fleet renewal programme ● C
Slide 5: Business Environment
BUSINESS ENVIRONMENT an integrated business ● China growth estimated at approximately 6% ● US economic recovery remains robust ● European economy weak ● Commodity prices significantly depressed ● Delayed recovery in dry-bulk shipping markets ● Industrial action in South Africa in the first half of t
Slide 6: Results 2014
RESULTS 2014
Slide 7: Management Income Statement – 2014
MANAGEMENT INCOME STATEMENT – 2014 an integrated business Growth R million 2014 2013 % Comments Increase mainly due to marine fuel and terminal Revenue 32 717 32 135 2 volumes. Offset by wind-down of Atlas Trading profit 1 825 1 761 4 Depreciation and amortisation (753) (618) 22 Increase due to acqu
Slide 8: Headline Earnings – 2014
HEADLINE EARNINGS – 2014 an integrated business Growth R million 2014 2013 % Comments Profit attributable to ordinary shareholders 1 001 1 177 (15) Adjusted for: (272) (475) 43 Foreign currency translation reserve (100) (698) 86 Net profit on disposals (430) (79) (444) Fair value of businesses acqui
Slide 9: Headline Earnings/Dividends per Share
HEADLINE EARNINGS/DIVIDENDS PER SHARE an integrated business HEADLINE EARNINGS PER SHARE (CENTS) DIVIDENDS PER SHARE (CENTS) 180 60 150 72.3 120 40 27.0 42.5 90 17.1 43.9 43.7 55.5 15.4 12.0 20.0 60 20 95.4 76.2 27.0 30 55.7 58.9 20.0 52.0 17.5 17.5 13.6 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2
Slide 10: Headline Earnings by Division
HEADLINE EARNINGS BY DIVISION an integrated business 2014 2013 1 000 1 000 (233) 92 252 112 (52) 800 800 729 702 175 591 600 600 R million R million 494 400 400 200 200 0 0 Freight Shipping Financial Group Total Freight Shipping Financial Group Total Services Services Services Services GRINDROD LIMI
Slide 11: Attributable Income by Division
ATTRIBUTABLE INCOME BY DIVISION an integrated business 2014 2013 1 800 1 800 92 (426) 852 1 500 1 500 1 177 1 200 1 200 52 1 001 112 R million R million 900 224 900 659 613 600 600 300 300 0 0 Freight Shipping Financial Group Total Freight Shipping Financial Group Total Services Services Services Se
Slide 12: Management Balance Sheet
MANAGEMENT BALANCE SHEET an integrated business Growth R million 2014 2013 % Comments Property, plant and equipment Freight Services 3 378 2 943 15 Additional assets from acquisition of businesses Shipping 6 913 6 413 8 Dry-bulk ship purchases Financial Services 187 169 11 Group 65 63 3 Intangible a
Slide 13: Net Debt Analysis
NET DEBT ANALYSIS an integrated business 1 500 525 (381) 1 000 543 500 3 579 (2 591) 0 ( 500) R million (1 000) 1 486 (428) (1 646) (1 500) (2 000) (2 500) (3 000) (3 500) December Cash generated Interest/ Investments Net cash Disposal of Forex/ December 2013 from operations dividends/ and capital f
Slide 14: Capital Commitments and Expenditure
CAPITAL COMMITMENTS AND EXPENDITURE an integrated business Capital expenditure Capital commitments Split as follows Approved Approved (R million) 2014 2015 2016 2017+ Total not contracted and contracted Freight Services 1 354 90 22 7 119 1 118 Port and Terminals 120 53 18 6 77 1 76 Rail 648 1 1 1 3
Slide 15: Markets
MARKETS
Slide 16: Dry-Bulk Seaborne Trade
DRY-BULK SEABORNE TRADE an integrated business DRY-BULK SEABORNE TRADE GROWTH 6 000 Global dry-bulk seaborne CAGR 5.1% or ~239mt per annum trade is expected to exceed 5 000 4.8 billion tonnes in 2015 Seaborne trade will continue 4 000 to grow by an average of 5.1% annually Million tonnes 3 000 CONTR
Slide 17: Shipping: Capesize Bulk Carriers
SHIPPING an integrated business CAPESIZE BULK CARRIERS (100 000+ dwt tonnes) 350 No of ships mDwt 300 Fleet (1 Jan 2015) 1 637 308.1 Order book (1 Jan 2015) 369 72.6 250 Order book % of fleet 23% 24% Number of ships % of fleet over 25 years 2% 2% 200 % non-delivery in 2012* 30% 30% % non-delivery in
Slide 18: Shipping: Handymax Bulk Carriers
SHIPPING an integrated business HANDYMAX BULK CARRIERS (40 - 62 999 dwt tonnes) 600 No of ships mDwt 500 Fleet (1 Jan 2015) 3 113 165.8 Order book (1 Jan 2015) 772 46.5 400 Order book % of fleet 25% 28% Number of ships % of fleet over 25 years 5% 4% % non-delivery in 2012* 25% 24% 300 % non-delivery
Slide 19: Shipping: Handysize Bulk Carriers
SHIPPING an integrated business HANDYSIZE BULK CARRIERS (10 - 39 999 dwt tonnes) 500 No of ships mDwt 400 Fleet (1 Jan 2015) 3 120 88.7 Order book (1 Jan 2015) 474 16.8 Order book % of fleet 15% 19% Number of ships 300 % of fleet over 25 years 15% 14% % non-delivery in 2012* 19% 21% % non-delivery i
Slide 20: Shipping: Medium-Range Products Tankers
SHIPPING an integrated business MEDIUM-RANGE PRODUCTS TANKERS (25 - 54 999 dwt tonnes) 250 No of ships mDwt 200 Fleet (1 Jan 2015) 1 714 75.9 Order book (1 Jan 2015) 268 12.3 Order book % of fleet 16% 17% Number of ships 150 % of fleet over 25 years 4% 4% % non-delivery in 2012* 50% 50% % non-delive
Slide 21: Shipping: Small Chemical and Products Tankers
SHIPPING an integrated business SMALL CHEMICAL AND PRODUCTS TANKERS (15 – 19 999 dwt tonnes) 90 No of ships mDwt 75 Fleet (1 Jan 2015) 592 10.7 Order book (1 Jan 2015) 63 1.2 60 Order book % of fleet 11% 11% Number of ships % of fleet over 25 years 7% 7% % non-delivery in 2012* 52% 51% 45 % non-deli
Slide 22: Freight Services
OPERATIONAL OVERVIEW FREIGHT SERVICES
Slide 23: Operational Highlights – Port, Terminals and Rail
OPERATIONAL HIGHLIGHTS – PORT, TERMINALS AND RAIL an integrated business ● Maputo port volumes up 14% to 19.5 million tonnes (2013: 17.2 million tonnes) ● Matola terminal throughput increased by 22% to 4.1 million tonnes (2013: 3.3 million tonnes) with increased magnetite volumes ● Richards Bay term
Slide 24: Operational Highlights – Logistics
OPERATIONAL HIGHLIGHTS – LOGISTICS an integrated business ● Turnaround in Automotive achieved with focused cost-saving efficiency measures ● Restructuring of fuel transportation business progressing ● Much improved second half of the year in merged ships agency business – Sturrock Grindrod Maritime
Slide 25: Strategy and Outlook
STRATEGY AND OUTLOOK an integrated business STRATEGY ● Terminal expansion: dry bulk and liquid bulk ● Expansion in rail businesses ● Diversification in the African continent ● Commodity diversification to promote terminal sustainability OUTLOOK ● Magnetite and coal volumes under pressure despite inc
Slide 26: Shipping
OPERATIONAL OVERVIEW SHIPPING
Slide 27: Operational Highlights
OPERATIONAL HIGHLIGHTS an integrated business ● Rates in dry bulk remain well below profitable levels ● Rates in the tanker sector were at unprofitable levels for the majority of the year ● Average earnings per day exceeded average spot-market rates ● Solid performance in ship-operating businesses ●
Slide 28: Strategy and Outlook
STRATEGY AND OUTLOOK an integrated business STRATEGY ● Careful management of owned fleet to maximise commercial opportunities ● Expand fleet under commercial management OUTLOOK ● Pressure of newbuilding deliveries remains ● Despite the cover, the dry-bulk fleet is not covering costs at these low lev
Slide 29: Financial Services
OPERATIONAL OVERVIEW FINANCIAL SERVICES
Slide 30: Operational Highlights
OPERATIONAL HIGHLIGHTS an integrated business ● Growth across all businesses ● Good valuation growth in property portfolio ● Engagement with SASSA, PASA and Net1 to promote positive outcome for the future ● Positive results from investment philosophy that exceed benchmarks ● Grew presence in the Exc
Slide 31: Strategy and Outlook
STRATEGY AND OUTLOOK an integrated business STRATEGY ● Drive and incrementally execute focused business growth and diversification ● Pursue growth in assets under management ● Appropriate investment banking opportunities ● Focus on well-secured loans with low risk of default OUTLOOK ● Steady growth
Slide 32: Key Capital Projects Update
KEY CAPITAL PROJECTS UPDATE
Slide 33: Richards Bay Terminal
RICHARDS BAY TERMINAL an integrated business OPPORTUNITIES ● Immediate phase 1 expansion from 3.2 million Total Capex (Ph 1) Est. R125 million to 4.5 million tonnes per year capacity Timeline Complete end 2015 ● Potential future phases up to 20 million tonnes Grindrod shareholding 49.9% per year cap
Slide 34: Ngqura Liquid-Bulk Terminal Storage
NGQURA LIQUID-BULK TERMINAL STORAGE an integrated business OPPORTUNITIES: ● Phase 1 of the development 230 000m³ storage Total Capex Est. R2.9 billion capacity Timeline Complete Q1 2019 ● Availability of land for further development of Grindrod shareholding 30.5% up to 720 000m³ storage capacity ● C
Slide 35: OTGC Saldanha Crude Oil Terminal
OTGC SALDANHA CRUDE OIL TERMINAL an integrated business OPPORTUNITIES: ● OTGC¹ in joint venture with MOGS² Total Capex Est. R3.1 billion (Royal Bafokeng Group) Timeline Complete mid 2018 ● Development of 12 x 1.1 million barrel Grindrod shareholding 15.25% crude tanks ● Crude oil blending capability
Slide 36: Maputo Port Development – Port Dredge
MAPUTO PORT DEVELOPMENT – PORT DREDGE an integrated business OPPORTUNITIES: ● Dredge caters for fully laden Panamax vessels Total Capex (Ph 1) Est. US$100 million draft of 14.2 meters resulting in increased Returns Under evaluation competitiveness Timeline Complete mid 2016 ● An independent commerci
Slide 37: Maputo Matola Terminal
MAPUTO MATOLA TERMINAL an integrated business OPPORTUNITIES: ● Currently the terminal capacity is 7.3 mtpa Total Capex Est. US$186 million ● Phase 4A – increase capacity to 12 mtpa Returns 18.4% (over life of concession – 2043) ● Phase 4B – Concept stage – increase capacity To commence once volumes
Slide 38: North West Rail
NORTH WEST RAIL an integrated business OPPORTUNITIES: ● First major new rail infrastructure project in Total Capex Est. US$500 million sub-Saharan Africa Timeline Complete end 2018 ● Phase 1: 340 km from Chingola to Kalumbila Grindrod shareholding 100% ● Phase 2: potential to connect West to Angolan
Slide 39: North South Corridor
NORTH SOUTH CORRIDOR an integrated business OPPORTUNITIES: ● 3 000 km rail corridor with potential to transport 4 million tpa at full ramp-up ● Competitive solution to convert road traffic to rail ● Primary driver is copper, but also industrial and agricultural growth in Zambia and Zimbabwe ● Corrid
Slide 40: Group Strategy and Outlook
GROUP STRATEGY AND OUTLOOK
Slide 41: Group Strategy and Outlook
GROUP STRATEGY AND OUTLOOK an integrated business STRATEGY ● To purposefully grow the business organically, by acquisitions and seeking synergies within the group, with specific focus on Africa, to become a respected fully integrated freight and logistics service provider OUTLOOK ● Continual increas
Slide 42: Annexures
ANNEXURES
Slide 43: Terminal Capacity
TERMINAL CAPACITY an integrated business Utilisation Annual Annual plus Change capacity capacity under Terminals 2014 2013 % 2014 construction Dry bulk (tonnes) 13 770 729 11 816 561 17 18 650 000 18 650 000 Matola coal terminal1 4 076 779 3 333 964 22 7 300 000 7 300 000 Richards Bay1 3 892 742 3 8
Slide 44: Dry-Bulk Daily Spot Rates (Baltic Indices)
DRY-BULK DAILY SPOT RATES (BALTIC INDICES) an integrated business 50 000 3 500 3 000 40 000 2 500 US$ per day Index points 30 000 2 000 1 500 20 000 1 000 10 000 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* 2010 2011 2012 2013 2014 2015 Baltic capesize Index ave TC Baltic
Slide 45: Scrapping
SCRAPPING an integrated business Handy* Handy* Handysize Handymax Panamax Capesize products chemical All other Total dwt 000 bulker bulker bulker bulker tanker tanker Total types scrapping 2010 2 700 400 700 2 700 3 200 1 400 11 100 16 900 28 000 2011 5 300 2 200 5 200 10 500 1 400 700 25 300 17 400
Slide 46: Market Outlook
MARKET OUTLOOK an integrated business The following additional market slides have been posted on our website: ● South African port volumes – 2014 ● Auto Industry sector – South Africa ● SA Motor Industry Sales ● Dry-bulk Trade Growth ● Handysize Bulk Carrier and Products Tanker Time Charter Rates ●
Slide 47: Disclaimer
DISCLAIMER an integrated business 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 herewith is believed to be correct but the accuracy thereof is not guaranteed and