Slide 1: Audited Results and Dividend Announcement
AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT for the year ended 31 December 2013
Slide 2: Operational Highlights
OPERATIONAL HIGHLIGHTS ae SIE aitinree settee CTT hee LEE fia: aetna Gee on “0 bad an integrated business Maarbi 0 wy = iti Per ay Jiitiae ‘Sito ite ‘Shapate 2 ‘Sub Aki ca Was
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Headline earnings per share Attributable profit ▲ 16% to 118,7 cents ▲ 41% to R1 177,2 million (2012: 102,6 cents) (2012: R836,7 million) Earnings per share Total ordinary dividend ▲ 40% to 199,1 cents ▲ 13% to 37,1 cents per share (2012: 141,8 cents) (2012: 32,9 cents) Increase
Slide 4: Strategic Highlights
STRATEGIC HIGHLIGHTS ● Matola coal terminal and Maputo car terminal expansion ● Further expansion in the rail business ● Good project pipeline being secured ● Expansion in the shipping fleet and joint ventures ● Strategic investments in agricultural businesses ● Expanded financial services offerings
Slide 5: Business Environment
BUSINESS ENVIRONMENT ● Industrial commodity demand continues ● Rail demand continues ● African growth strong and infrastructure opportunities remain intact ● Continued growth in global dry-bulk seaborne trade ● Scrapping exceeds newbuild deliveries in handysize market ● Uncertainty in the trading pa
Slide 6: Results 2013
RESULTS 2013 ae SIE aitinree settee CTT hee LEE fia: aetna Gee on “0 bad an integrated business Maarbi 0 wy = iti Per ay Jiitiae ‘Sito ite ‘Shapate 2 ‘Sub Aki ca Was
Slide 7: Management Income Statement 2013
MANAGEMENT INCOME STATEMENT 2013 R million 2013 2012 Comments Revenue 32 135 35 267 Decrease due to 50% sale of Cockett in 2012 Increased volumes in terminals offset by decline Trading profit 1 784 1 439 in the trading business Increased capital expenditure in ships, terminals Depreciation and amort
Slide 8: Headline Earnings – 2013
HEADLINE EARNINGS – 2013 Growth R million 2013 2012 % Profit attributable to ordinary shareholders 1 177 837 41 Adjusted for: (475) (231) 106 Foreign currency translation reserve recycled (698) – upon cessation of operations following restructure Net profit on disposals (79) (455) (83) Impairments 3
Slide 9: Attributable Income by Division
ATTRIBUTABLE INCOME BY DIVISION 2013 Attributable income by division 2012 Attributable income by division 1 400 1 400 92 (5) 1 177 761 1 050 1 050 114 (167) 32 837 793 65 R million R million 700 652 (323) 700 350 350 0 0 Freight Trading Shipping Financial Group Total Freight Trading Shipping Financi
Slide 10: Management Balance Sheet
MANAGEMENT BALANCE SHEET Growth R million 2013 2012 % Comments Property, plant and equipment Freight Services 2 952 2 108 40 Acquisitions in terminals, vehicles and equipment Trading 86 125 (31) Transfer to non-current assets held for sale Shipping 6 318 4 800 32 Acquisitions and weaker rand Financi
Slide 11: Net Debt Analysis
NET DEBT ANALYSIS (746) (2 591) 0 648 (562) ( 400) (2 040) ( 800) (1 200) R million (1 600) (2 000) (2 400) 109 (2 800) December Cash generated Interest/ Investments Disposal of December 2012 from operations dividends/taxation/ and capital business 2013 forex/other expenditure GRINDROD LIMITED | AUD
Slide 12: Capital Commitments and Expenditure
CAPITAL COMMITMENTS AND EXPENDITURE Capital expenditure Capital commitments Split as follows Approved Approved (R million) 2013 2014 2015 2016+ Total not contracted and contracted Freight Services 982 560 42 207 809 416 393 Ports and Terminals 309 200 13 – 213 84 129 Rail 231 178 29 207 414 263 151
Slide 13: Markets
MARKETS ae SIE aitinree settee CTT hee LEE fia: aetna Gee on “0 bad an integrated business Maarbi 0 wy = iti Per ay Jiitiae ‘Sito ite ‘Shapate 2 ‘Sub Aki ca Was
Slide 14: Dry-Bulk Seaborne Trade
DRY-BULK SEABORNE TRADE Global dry-bulk seaborne trade Global dry-bulk seaborne trade is estimated to have grown by 6 000 5,1% in 2013 and reached CAGR 5,8% 4,3 billion tonnes. 5 000 Seaborne trade growth is expected to accelerate in 2014 and 2015 as recovery picks up 4 000 in developed economies. T
Slide 15: Shipping: Capesize Bulk Carriers
SHIPPING Capesize bulk carriers 300 No of Capesize ships mDwt 250 Fleet (1 Jan 2014) 1 565 293,2 Order book (1 Jan 2014) 311 60,2 200 Order book percentage of fleet 20% 21% Number of ships % of fleet over 25 years 1% 2% % non-delivery in 2011* 25% 28% 150 % non-delivery in 2012* 30% 30% % non-delive
Slide 16: Shipping: Handysize Bulk Carriers
SHIPPING Handysize bulk carriers 800 No of Handysize ships mDwt Fleet (1 Jan 2014) 3 019 85,5 600 Order book (1 Jan 2014) 444 15,3 Order book percentage of fleet 15% 18% Number of ships % of fleet over 25 years 20% 19% % non-delivery in 2011* 41% 42% 400 % non-delivery in 2012* 23% 24% % non-deliver
Slide 17: Shipping: Medium-Range Products Tankers
SHIPPING Medium-range products tankers 180 No of Medium-range ships mDwt 150 Fleet (1 Jan 2014) 1 641 72,2 Order book (1 Jan 2014) 294 14,1 120 Order book percentage of fleet 18% 20% Number of ships % of fleet over 25 years 5% 4% % non-delivery in 2011* 58% 59% 90 % non-delivery in 2012* 50% 50% % n
Slide 18: Shipping: Small Chemical and Products Tankers
SHIPPING Small chemical and products tankers 90 No of Small chemical and products ships mDwt 75 Fleet (1 Jan 2014) 586 10,6 Order book (1 Jan 2014) 36 0,7 60 Order book percentage of fleet 6% 6% Number of ships % of fleet over 25 years 8% 8% % non-delivery in 2011* 57% 57% 45 % non-delivery in 2012*
Slide 19: Freight Services
OPERATIONAL OVERVIEW FREIGHT SERVICES
Slide 20: Freight Services
FREIGHT SERVICES ● Earnings from trading activities increased by 52,4% to R576,7 million (2012: R378,4 million), excluding a R75,8 million profit on sale of Grindrod Tank Terminals (2012: R415 million from Matola coal terminal) ● Ports, Terminals and Rail earnings from trading activities up 51,0% to
Slide 21: Operational Highlights – Ports, Terminals and Rail
OPERATIONAL HIGHLIGHTS – PORTS, TERMINALS AND RAIL ● Maputo port volumes up 15,0% to 17,2 million tonnes ● Significant increase in profit from Matola coal terminal ● Maputo car terminal volume up 49,5% with 71 368 vehicles moved ● Improved volumes at Richards Bay ● Significantly expanded the rail bu
Slide 22: Operational Highlights – Logistics
OPERATIONAL HIGHLIGHTS – LOGISTICS ● Intermodal volumes up 9,1% to 2,3 million TEU ● Intermodal depot expansions in Johannesburg and Maputo in progress ● Contracts secured with owner equipment manufacturers through Maputo car terminal ● Vehicle volumes affected by 77 days of industrial action in aut
Slide 23: Strategy and Outlook
STRATEGY AND OUTLOOK STRATEGY ● Terminal expansion: dry-bulk and liquid-bulk ● Expansion in rail businesses ● Geographic diversification OUTLOOK ● Port and terminals volumes are expected to increase, sustained by continued seaborne commodity demand and new capacity ● Rail business to benefit from in
Slide 24: Trading
OPERATIONAL OVERVIEW TRADING
Slide 25: Trading
TRADING ● 2013 revenue generated of R22,4 billion and net loss of R322,6 million (2012: revenue R27,1 billion and earnings of R113,5 million) ● Poor result from the Atlas business due to increased competition and an inverted market ● Atlas asset impairments and goodwill written off ● Investments in
Slide 26: Operational Highlights
OPERATIONAL HIGHLIGHTS ● Marine fuels business expanded into Dubai ● Marine fuels physical business: › established oil storage in the UK (Thames), and › increased Rotterdam volumes ● Oreport empowerment transaction concluded ● Acquisition of 20% shareholding in Senwes and NWK agribusinesses ● Poor A
Slide 27: Strategy and Outlook
STRATEGY AND OUTLOOK STRATEGY ● Focus on utilisation of group assets, services and resources providing an integrated service offering ● Consolidation of the agribusinesses OUTLOOK ● Marine fuels market remains stable ● Further opportunity for growth and consolidation in the agricultural market GRIND
Slide 28: Shipping
OPERATIONAL OVERVIEW SHIPPING
Slide 29: Shipping
SHIPPING ● Earnings from trading activities R165 million (2012: loss R167 million) after excluding R596 million non-trading items Change from 2012 Shipping R million % Revenue 4 319 8 EBITDA 571 83 Operating income 236 244 GRINDROD LIMITED | AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT
Slide 30: Operational Highlights
OPERATIONAL HIGHLIGHTS ● Improved earnings from dry-bulk fleet in the second half ● Tanker earnings under pressure in the second half ● Average earnings per day outperformed average spot market rates ● Delivery of four new-generation eco fuel-efficient 52 000 dwt medium-range product tankers into Vi
Slide 31: Strategy and Outlook
STRATEGY AND OUTLOOK STRATEGY ● Careful management of owned fleet to renew and capture value ● Expand fleet under commercial management OUTLOOK ● Owned and long-term chartered fleet has a reasonable level of cover ● Dry-cargo market is expected to improve, supported by expected growth in seaborne tr
Slide 32: Financial Services
OPERATIONAL OVERVIEW FINANCIAL SERVICES
Slide 33: Financial Services
FINANCIAL SERVICES ● Attributable profit increased to R92,2 million (2012: R65,1 million) ● Assets under management up 11,8% to R12,3 billion (December 2012: R11,0 billion) ● Total funding (excluding SASSA deposits) at R4,9 billion (December 2012: R3,6 billion) ● Bank advances grew 15,6% to R3,7 bil
Slide 34: Operational Highlights
OPERATIONAL HIGHLIGHTS ● South African Social Security Agency (SASSA) debit card rollout completed with 9,7 million cards in issue at year-end ● Expansion of Private Equity initiatives into UK Property Private Equity Fund ● Launch of Exchange Traded Fund product range ● Consolidation and repositioni
Slide 35: Strategy and Outlook
STRATEGY AND OUTLOOK STRATEGY ● Continue with focused expansion ● Develop business around the retail card offering ● Pursue growth in assets under management ● Focus on well-secured loans with low risk of default OUTLOOK ● Good foundation for continued, sustainable growth across the business ● Fee i
Slide 36: Transformation
TRANSFORMATION ae SIE aitinree settee CTT hee LEE fia: aetna Gee on “0 bad an integrated business Maarbi 0 wy = iti Per ay Jiitiae ‘Sito ite ‘Shapate 2 ‘Sub Aki ca Was
Slide 37: Transformation
TRANSFORMATION ● Significant investment in corporate social investment (CSI) in 2013 ● Worked with empowerment partner, Adopt-a-School Foundation ● Adopted King Shaka High School in 2009 with notable successes: › a Matric pass rate in 2013 of 71% (2012: 62%, 2009: 35%) › 18 distinctions were achieve
Slide 38: Group Strategy & Outlook
GROUP STRATEGY & OUTLOOK ae SIE aitinree settee cneres singed” sates sitaae ate ight an ee an integrated business Maarbi oe wy = Lita Per a ite ‘Sito ite ‘Shapate 2 ‘Sub Aki ca Was
Slide 39: Group Strategy and Outlook
GROUP STRATEGY AND OUTLOOK STRATEGY ● To purposefully grow the business, organically, by acquisition and seeking synergies within the Group, with specific focus on Africa, to become the preferred fully integrated freight and logistics service OUTLOOK ● Well-positioned to take advantage of an improve
Slide 40: Key Focus Areas 2014
KEY FOCUS AREAS 2014 ● Execute on capital projects ● Maximise asset utilisation ● Drive to secure additional capacity ● Improve operating efficiencies and costs ● Deliver on agribusiness strategy ● Expand rail business ● Develop new infrastructure and logistics opportunities ● Develop an integrated
Slide 41: Annexures
ANNEXURES ae SIE aitinree settee CTT hee LEE fia: aetna Gee on “0 bad an integrated business Maarbi 0 wy = iti Per ay Jiitiae ‘Sito ite ‘Shapate 2 ‘Sub Aki ca Was
Slide 42: Terminal Capacity
TERMINAL CAPACITY Utilisation Annual Annual plus Annual % capacity capacity under capacity Terminals 2013 2012 change 2013 construction 2012 Dry-bulk (tonnes) 13 304 503 12 065 176 10 18 650 000 19 150 000 15 850 000 Matola coal terminal¹ 4 314 260³ 4 475 649 (4) 7 300 000 7 300 000 6 000 000 Richar
Slide 43: Auto Industry Sector – South Africa
AUTO INDUSTRY SECTOR – SOUTH AFRICA 800 000 600 000 Vehicle units 400 000 200 000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f 2016f South Africa: Vehicle imports, units South Africa: Vehicle exports, units (includes M&HCVs) South Africa: Vehicle production South Africa: Domestic sales f =
Slide 44: Dry-Bulk Daily Spot Rates (Baltic Indices)
DRY-BULK DAILY SPOT RATES (BALTIC INDICES) 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* 2010 2011 2012 2013 2014 Baltic Capesize Index ave TC Baltic Panamax Index ave TC Baltic Supramax Ind
Slide 45: Dry-Bulk Trade Growth
DRY-BULK TRADE GROWTH 6 5 4 Billion tonnes 3 2 1 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f 2019f 2020f Iron ore Coal Agribulk Bauxite/Alumina Minor ores Steel industry minor bulks Phosrock/Fertilisers Forest products Other minor bulks Sourc
Slide 46: Handysize Bulk Carrier and Products Tanker Time Charter Rates
HANDYSIZE BULK CARRIER AND PRODUCTS TANKER TIME CHARTER RATES 50 000 40 000 US$ per day 30 000 20 000 10 000 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1* 2006 2007 2008 2009 2010 2011 2012 2013 2014 BHSI: time charter average 1 Year timecharte
Slide 47: Southern African Coal Exports
SOUTHERN AFRICAN COAL EXPORTS 80 70 60 50 Million tons 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e European Union China India World total Southern Africa: Botswana, Lesotho, Namibia, South Africa, Swaziland Source: Maersk Broker, January 2014 GRINDROD LIMITED | AUDITED RESULTS A
Slide 48: Global Seaborne Coal Trade
GLOBAL SEABORNE COAL TRADE 1.6 1.4 1.2 1.0 Billion tonnes 0.8 0.6 0.4 0.2 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f 2019f 2020f Source: Braemar Seascope, January 2014 GRINDROD LIMITED | AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT
Slide 49: Global Iron Ore Importers
GLOBAL IRON ORE IMPORTERS 1.8 Huge growth in iron ore imports to feed 1.5 economic expansion in the East 1.2 Billion tonnes 0.9 0.6 0.3 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f 2019f 2020f China Japan South Korea Germany Malaysia Oman Ta
Slide 50: Global Iron Ore Exporters
GLOBAL IRON ORE EXPORTERS 1.8 Largest exporters of iron ore are Australia and Brazil 1.5 In 2014 the top nine exporters are forecast to account for 84% of the global supply 1.2 Billion tonnes 0.9 0.6 0.3 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f 2015f 2016f 2017
Slide 51: Scrapping
SCRAPPING 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 17 200 42 500 2012 8 200 4 6
Slide 52: Research Disclaimer
RESEARCH DISCLAIMER The information supplied herewith is believed to be correct but the accuracy thereof is not guaranteed and the company and its employees and information sources cannot accept liability for loss suffered in consequence of reliance on the information provided. Provision of this dat
Slide 53: ein
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