Omnia Holdings Limited · JSE:OMN
Omnia — H1 2011 Earnings Presentation
31 slides from Omnia's earnings presentation, September 2010
Slide 1: Interim results for the period ended 30 September 2010
Interim results for the period ended 30 September 2010 www.omnia.co.za
Slide 2: Group at a Glance
Group at a Glance Omnia Group Chemicals Mining Agriculture www.omnia.co.za
Slide 3: Worldwide
ONODNaWN— Worldwide 9 =M 10 sem Malawi 110 = Mali 12. = Mauritania 13 === Mauritius 14 = mm Mozambique 15 = Namibia 16 = New Zealand 7 8 18 mmm South Africa 19 = Sudan 20 ~~ & Swaziland 21 + =mm Tanzania ZZ . 23 =m= Zambia 24 ume Zimbabwe i Chemicals @ Mining Mf Agriculture www.omnia.co.za
Slide 4: The Omnia Proposition
The Omnia Proposition • Focusing on unique market offerings that create value and, in so doing, earn a premium • Providing specialised solutions to the chemical, mining and agricultural markets • Concentrating on growing its international business • A commitment to meeting international standards fo
Slide 5: Key Drivers
Key Drivers • Strong demand for mining commodities • Low activity levels in SA Manufacturing Sector • Commodity prices - stable but low – marginally higher in $ terms – lower in Rand terms • Continued Rand strength – pressure on selling prices – pressure on Rand margins www.omnia.co.za
Slide 6: Salient Features
Salient Features • Revenue constant year on year at R4.3 bn • Improved operating profit margin • Lower finance costs • Profit after tax of R 167 m (2009: loss R 99 m) • Adjusting for 2009 R 350 m downward valuation of inventory, profit after tax improved by R 14 m • Successful completion of R 1 bn R
Slide 7: Divisional Review – Chemicals
Divisional Review – Chemicals 2010 2009 % Change Revenue R 1.7 bn R 1.8 bn (5%) Profit/(loss) for the period R 32 m R 59 m (46%) Operating margin 1.8% 3.2% • Rated 13th largest chemical distributor in a global survey by ICIS journal • Tough trading conditions – Continued low activity levels in South
Slide 8: Divisional Review – Mining
Divisional Review – Mining 2010 2009 % Change Revenue R 1.1bn R 0.9 bn 20% Profit/(loss) for the period R 172 m R 107 m 61% Operating margin 15.9% 11.8% • Increased international demand for coal, iron ore, copper and platinum www.omnia.co.za
Slide 9: Commodity Prices - Coal
Commodity Prices - Coal www.omnia.co.za
Slide 10: Commodity Prices - Metals
Commodity Prices - Metals www.omnia.co.za
Slide 11: Divisional Review – Mining
Divisional Review – Mining 2010 2009 % Change Revenue R 1.1bn R 0.9 bn 20% Profit/(loss) for the period R 172 m R 107 m 61% Operating margin 15.9% 11.8% • Increased international demand for coal, iron ore, copper and platinum • Strong volume growth in surface and underground mining • Overheads well
Slide 12: Divisional Review – Agriculture
Divisional Review – Agriculture 2010 2009 % Change Revenue R 1.4 bn R 1.5 bn (4%) Profit/(loss) for the period R 89 m R (218) m 141% Operating margin 6.2% (14.5%) • Poor winter wheat season and lower domestic maize price • Volumes maintained • Marginal reduction in sales prices – improved internatio
Slide 13: Raw Material Fundamentals
Raw Material Fundamentals www.omnia.co.za
Slide 14: Raw Material Fundamentals
Raw Material Fundamentals www.omnia.co.za
Slide 15: Financial Review
FINANCIAL REVIEW
Slide 16: Exchange Rate Fundamentals
Exchange Rate Fundamentals www.omnia.co.za
Slide 17: Income Statement Features
Income Statement Features 6 months 6 months 12 months Rm 30/9/2010 % 30/9/2009 31/3/2010 Revenue 4 268 0% 4 249 8 827 www.omnia.co.za
Slide 18: Income Statement Features
Income Statement Features 6 months 6 months 12 months Rm 30/9/2010 % 30/9/2009 31/3/2010 Revenue 4 268 0% 4 249 8 827 Cost of sales (3 394) (10%) (3 789) (7 438) Gross profit 874 90% 460 1 389 Gross profit 20.5% 10.8% 15.7% GP% after R 350m adjusted 20.5% 19.1% 19.7% www.omnia.co.za
Slide 19: Income Statement Features
Income Statement Features 6 months 6 months 12 months Rm 30/9/2010 % 30/9/2009 31/3/2010 Revenue 4 268 0% 4 249 8 827 Cost of sales (3 394) (10%) (3 789) (7 438) Gross profit 874 90% 460 1 389 Other operating income 35 (10%) 39 77 Distribution expenses (345) 13% (305) (674) Administrative expenses (
Slide 20: Income Statement Features
Income Statement Features 6 months 6 months 12 months Rm 30/9/2010 % 30/9/2009 31/3/2010 Revenue 4 268 0% 4 249 8 827 Cost of sales (3 394) (10%) (3 789) (7 438) Gross profit 874 90% 460 1 389 Other operating income 35 (10%) 39 77 Distribution expenses (345) 13% (305) (674) Administrative expenses (
Slide 21: Operating profit
Operating profit www.omnia.co.za
Slide 22: Balance Sheet
Balance Sheet 6 months 6 months 12 months Rm 30/09/2010 30/09/2009 31/12/2010 Assets Non-current assets 2 347 1 766 1 944 Current assets 3 778 3 292 2 680 Inventories 1 913 1 597 1 315 Trade and other receivables 1 865 1 695 1 365 6 125 5 058 4 624 www.omnia.co.za
Slide 23: Monthly Sales Profile
Monthly Sales Profile The seasonal nature of agriculture typically impacts the balance sheet at the interim stage APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR www.omnia.co.za
Slide 24: Balance Sheet
Balance Sheet 6 months 6 months 12 months 30/09/2010 30/09/2009 31/12/2010 Total equity 3 075 1 743 1 971 Current liabilities 1 966 1 802 2 249 Trade and other payables 1 861 1 787 2 166 Other 105 15 83 Interest bearing liabilities 1 084 1 513 404 Short term (net of cash) 216 663 (508) Short term po
Slide 25: Consolidated Cash Flow
Consolidated Cash Flow 6 months 6 months 12 months Rm 30/9/2010 30/9/2009 31/3/2010 Operating profit/(loss) 293 (52) 279 Depreciation and amortisation 73 61 142 Adjustment for non-cash items (42) (186) 106 (Utilised)/generated by working capital (1 403) (32) 805 (1 079) (209) 1 332 Interest paid (59
Slide 26: Debt : Equity Ratio – Interim Reporting
Debt : Equity Ratio – Interim Reporting www.omnia.co.za
Slide 27: Prospects
PROSPECTS www.omnia.co.za
Slide 28: Group Outlook
Group Outlook • Chemicals – No expectation of improvement in volumes and selling prices – Focus on aggressive cost reductions and efficiency improvements • Mining – Favourable conditions expected to continue • Agriculture – Performance influenced by sales volumes in summer plantings – late rains – I
Slide 29: Commodity Prices - Crops
Commodity Prices - Crops www.omnia.co.za
Slide 30: Group Outlook
Group Outlook • Chemicals – No expectation of improvement in volumes and selling prices – Focus on aggressive cost reductions and efficiency improvements • Mining – Favourable conditions expected to continue • Agriculture – Performance influenced by sales volumes in summer plantings – late rains – I
Slide 31: Thank You
THANK YOU www.omnia.co.za