Slide 1: Audited Results and Dividend Announcement for the year ended 31 December 2012
AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT for the year ended 31 December 2012
Slide 2: Content
Content • Highlights • Results 2012 • Markets • Operational overview by division • Group strategy and outlook • Annexures 2
Slide 3: Highlights
Highlights
Slide 4: Highlights
Highlights • Attributable income up 61% to R853,3 million (2011: R530,9 million) • Headline earnings per share up 22% to 121,9 cents (2011: 99,6 cents) • Earnings per share up 30% to 144,6 cents (2011: 111,0 cents) • Cash generated from operations R1,4 billion • Book net asset value per share up 11%
Slide 5: Business environment
Business environment • Demand remains for iron ore, copper and coal from India and China • Marginal growth in oil demand continues • Food security continues to creep up the agenda • Continued growth in seaborne freight • Continued oversupply of ships despite scrapping reaching record levels • Infras
Slide 6: Results 2012
Results 2012
Slide 7: Management income statement 2012
Management income statement 2012 R million 2012 2011 % Comments Revenue 35 267 37 056 (5) Disposal of 50% of marine fuels businesses and decreased volumes in agricultural commodities Trading profit 1 452 1 215 19 Improved volumes through terminals and increased margins in marine fuels trading Deprec
Slide 8: Attributable income by division
Attributable income by division 2012 2011 R million R million 1 000 1 000 114 (170) 51 853 793 65 800 800 600 600 58 4 531 144 7 400 400 318 200 200 0 0 Freight Trading Shipping Financial Group Total Freight Trading Shipping Financial Group Total Services Services Services Services 8
Slide 9: Balance sheet
Balance sheet R million 2012 2011 Growth% Comments Ships 3 865 3 823 1 Increased acquisitions in terminals, vehicles Terminal infrastructure, vehicles and equipment 1 052 914 15 and equipment Additional joint ventures due to business Investments in joint ventures and associates 2 181 986 121 disposa
Slide 10: Cash flow and net debt analysis
Cash flow Net debt analysis 1 500 1 000 427 (401) 500 R million 0 1 423 (1 305) (746) ( 500) (890) (1 000) 2011 Cash generated Disposal of Interest/ Investments and from operations businesses dividends/ 2012 capital (1 500) taxation/ expenditure forex/other (2 000) 10
Slide 11: Capital commitments and expenditure
Capital commitments and expenditure Capital Capital commitments Split as follows expenditure Approved not Approved and 2012 2013 2014 2015+ Total R million contracted contracted Freight Services 982 597 84 18 699 442 257 Logistics 219 252 66 - 318 198 120 Ports and Terminals 189 329 18 18 365 244 12
Slide 12: Markets
Markets
Slide 13: Seaborne drybulk demand
Seaborne drybulk demand 1 600 11,1% 10,1% 8,5% 8,4% 1 400 8,0% 7,1% 6,4% 6,9% 6,7% 5,8% 4,5% 5,7% 1 200 Million tonnes 1 000 800 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E Minor bulks (mt) Coking and thermal coal (mt) Iron ore (mt) Grains (mt) Demand growth (%)
Slide 14: Shipping: Capesize bulk carriers
Shipping Capesize bulk carriers 300 No. of mDwt ships Fleet (1 Jan 2013) 1 505 278,9 250 Orderbook (1 Jan 2013) 245 49,6 Orderbook percentage of fleet 16% 18% 200 Percentage of fleet over 25 years 2% 2% Number of ships % Non-delivery in 2010* 40% 39% % Non-delivery in 2011* 25% 28% 150 % Non-deliver
Slide 15: Shipping: Handysize bulk carriers
Shipping Handysize bulk carriers 900 No. of mDwt ships 800 Fleet (1 Jan 2013) 3 037 85,4 Orderbook (1 Jan 2013) 392 12,9 700 Orderbook percentage of fleet 13% 15% 600 Percentage of fleet over 25 years 27% 26% % Non-delivery in 2010* 34% 36% Number of ships 500 % Non-delivery in 2011* 42% 42% % Non-d
Slide 16: Shipping: Medium-range tankers
Shipping Medium-range tankers 180 No. of mDwt ships 160 Fleet (1 Jan 2013) 1 589 69,4 Orderbook (1 Jan 2013) 183 8,8 140 Orderbook percentage of fleet 12% 13% Percentage of fleet over 25 years 5% 4% 120 Number of ships % Non-delivery in 2010* 52% 51% 100 % Non-delivery in 2011* 59% 59% % Non-deliver
Slide 17: Shipping: Small chemical and products tankers
Shipping Small chemical and products tankers 90 No. of mDwt ships 80 Fleet (1 Jan 2013) 634 11,4 Orderbook (1 Jan 2013) 32 0,6 70 Orderbook percentage of fleet 5% 5% Percentage of fleet over 25 years 11% 10% 60 % Non-delivery in 2010* 56% 54% Number of ships 50 % Non-delivery in 2011* 56% 56% % Non-
Slide 18: Operational overview Freight Services
Operational overview Freight Services
Slide 19: Freight Services
Freight Services • Earnings up 150% to R793,3 million (including profit of R414,9 million on disposal of 35% of the Maputo coal terminal) (2011: R317,8 million) • Drybulk terminals’ volume up 26% to 12,0 million tonnes (2011: 9,5 million tonnes) despite coal product shortages • Substantial investmen
Slide 20: Operational highlights – Ports, Terminals and Rail
Operational highlights – Ports, Terminals and Rail • Maputo – Port volumes up 27% to 15,0 million tonnes (2011: 11,8 million tonnes) – Coal terminal volume 4,5 million tonnes, 15% up on prior year – Disposal of a 35% shareholding in coal terminal to Vitol – Car terminal volume 36% up on prior year –
Slide 21: Operational highlights – Logistics
Operational highlights – Logistics • Volumes up in clearing and forwarding and intermodal • Volume growth through the temporary Maputo intermodal container development • Commenced construction of permanent Maputo intermodal container facility in partnership with Dubai Ports World • Reorganisation of
Slide 22: Strategy and outlook
Strategy and outlook Strategy • Expand infrastructure at strategic locations along development corridors • Execute on the Maputo port master plan • Maximise cargo flows through all terminals • Increase capacity at both Maputo and Richards Bay terminals • Further develop the rail business • Complete
Slide 23: Operational overview Trading
Trading Operational overview Trading
Slide 24: Trading
Trading • Earnings (adjusted for marine fuels joint venture) up 12% to R113,5 million (2011 100% earnings: R143,9 million) • Operating margin per tonne up 17% to US$3,90 (R32,02) in 2012 from US$3,33 (R24,22) in 2011 • Marine fuels business performed exceptionally well through improved volumes, impr
Slide 25: Operational highlights
Operational highlights • Contracted tank storage to support physical supply of marine fuel • Good result from the coal trading business concluded in partnership with Vitol • All three chrome recovery plants now operational but impacted by lower demand and the unrest in the mining industry • Further
Slide 26: Strategy and outlook
Strategy and outlook Strategy • Focus on utilisation of group assets, services and resources • Investment in strategic assets in the supply chain Outlook • Marine fuels business should see growth in volumes in its physical supply and broking businesses • Long-term bull market for agricultural commod
Slide 27: Operational overview Shipping
Operational overview Shipping
Slide 28: Shipping
Shipping • Loss of R169,7 million includes impairments of vessels of R173,3 million • Earnings before ship impairments remained positive despite the Baltic Exchange: – Dryfreight Index falling 60% – Clean Tanker Index falling 17% Change from Shipping R million 2011 % Revenue 4 010 2 EBITDA 308 26 Op
Slide 29: Operational highlights
Operational highlights • Expanded dry cargo operations, particularly handymax • South African tanker operations performed well • Medium-range tankers operated well under commercial management with Vitol • Commenced transfer of handysize bulk carriers from Lauritzen pool to own management • Average e
Slide 30: Strategy and outlook
Strategy and outlook Strategy • Carefully timed expansion through charter or purchase of eco-efficient ships • Leverage ship operating capability by increasing fleet under management Outlook • Owned and long-term chartered fleet has good level of cover for 2013 • Drybulk – Order book reducing – Scra
Slide 31: Operational overview Financial Services
Operational overview Financial Services
Slide 32: Financial Services
Financial Services • Earnings up 11,5% to R65,1 million (2011: R58,4 million) • Assets under management increased to R11,0 billion (2011: R6,1 billion) • Bank deposits increased 60% to R4,7 billion (2011: R2,9 billion) • Advances increased 25% to R3,2 billion (2011: R2,6 billion) Change from Financi
Slide 33: Operational highlights
Operational highlights • Acquired Plexus Asset Management • Launched Prefex Exchange Traded Fund in March (R209 million by end December) • South African Social Security Agency (SASSA) bank card rollout commenced in April 2012 with 5,5 million cards having been issued to recipients as at 31 December
Slide 34: Strategy and outlook
Strategy and outlook Strategy • Continue with focused expansion • Develop business around the retail card offering • Pursue growth in assets under management on the back of good investment performance Outlook • Fees from increased card base will become meaningful in 2013 • Investors looking for high
Slide 35: Group strategy and outlook
Group strategy and outlook
Slide 36: Group strategy and outlook
Group strategy and outlook Strategy • To deliver on the integrated freight and logistics services strategy and invest in infrastructure opportunities with high barriers to entry Outlook • Well positioned to take advantage of: – Strategic infrastructure projects – Demand for operators in the logistic
Slide 37: 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 cannot accept liability for loss suffered in consequence of reliance on the information provided. Provision of this data does not obviate the
Slide 38: Annexures
Annexures
Slide 39: Terminal capacity
Terminal capacity Utilisation % change Existing plus 2011 Existing capacity under Terminals 2012 2011 to 2012 capacity construction Drybulk (tonnes) 12 065 176 9 547 885 26,36 15 850 000 18 100 000 Maputo coal terminal 4 475 649 3 901 040 14,73 6 000 000 7 300 000 ¹ Richards Bay 3 815 060 3 886 236
Slide 40: Terminal capacity notes
Terminal capacity Notes 1. Phase 3,5 additional capacity of 1,3 million tonnes 2. Change in Maydon Wharf product density in 2013 3. Additional capacity from sized coal expansion 4. Additional capacity from Durban vegetable oil diversification 5. Additional capacity from Cape Town Nautilus site expan
Slide 41: Auto industry sector – South Africa
Auto industry sector – South Africa South African passenger and light commercial vehicle imports and exports 450 000 400 000 350 000 300 000 Vehicle units 250 000 200 000 150 000 100 000 50 000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E Exports (excludes MCV's & HCV's) Imports
Slide 42: Drybulk daily spot rates (Baltic Indices)
Drybulk daily spot rates (Baltic Indices) 35 000 2 500 30 000 2 000 25 000 1 500 US$ per day Index points 20 000 15 000 1 000 10 000 500 5 000 0 0 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1QE 2QE 3QE 4QE 1QE 2QE 3QE 4QE Capesize Panamax
Slide 43: Handysize bulk carrier and products tanker time charter rates
Handysize bulk carrier and products tanker time charter rates 50 000 45 000 40 000 35 000 30 000 US$ per day 25 000 20 000 15 000 10 000 5 000 0 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12
Slide 44: Global seaborne coal trade
Billion tonnes 0,0 0,2 0,4 0,6 0,8 1,0 1,2 1,4 1,6 2000 1,8 2001 2002 2003 Global seaborne coal trade 2004 2005 2006 Source: Braemar Seascope, October 2012 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 44
Slide 45: Global seaborne iron ore trade
Global seaborne iron ore trade 1,8 1,6 1,4 1,2 Billion tonnes 1,0 0,8 0,6 0,4 0,2 0,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Braemar Seascope, February 2013 45
Slide 46: Minor drybulk trade growth
Minor drybulk trade growth Agribulk Phos Rock/Fert Baux/Alum Minor Ores Steel Ind. Forest Prod Cement/Clinker Pet Cole Salt Sulphur 3,0 2,5 2,0 Billion tonnes 1,5 1,0 0,5 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 47: Coal exports from southern Africa
Coal exports from southern Africa Seaborne metric tonnes (millions) 2012E Europe India China Rest of the world E=Estimate Source: Maersk Broker, February 2013 47
Slide 48: 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 2 700 300 700 2 600 3 300 1 300 10 900 14 600 25 500 2011 5 300 2 200 5 200 10 500 1 400 800 25 400 15 600 41 000 2012 8 000 4 6
Slide 49: Commodity supply chain
Commodity supply chain Commodity destination 49