Slide 1: Tongaat Hulett May 2014
MAY 2014 i vo @ Tongaat Hulett | - =| ,, V/\ ‘. i | \
Slide 2: Location of operations
Location of operations Harare ZIMBABWE Mafambisse NAMIBIA Triangle Beira CSI Hippo Valley BOTSWANA Gaborone Windhoek Sugar Industries CSI Xinavane Walvis Bay CSI Tambankulu Estates Maputo Chloorkop Germiston Mill SWAZILAND Kliprivier Mill Meyerton Mill Felixton Mill Amatikulu Mill Darnall Mill SOUTH
Slide 3: Sugar Markets
Sugar Markets Zimbabwe Mozambique • Total production 2013/14 season - 488 000 tons • Total production 2013/14 season - 383 000 tons • Local market 2013/14 season - 287 000 tons • Tongaat Hulett production - 249 000 tons • Imports - 139 000 tons • Local market 2013/14 season 188 000 tons • Supplied b
Slide 4: Sugar Markets (cont.)
Sugar Markets (cont.) South Africa - 2013/14 • Production - 2,344 million tons (SA industry) • Tongaat Hulett production - 634 000 tons (Industry share 27%) • Local market 2013/14 season - 2,2 million tons • Imports - 462 000 tons (342 000 tons sold in 2013/14 - estimate) • Swaziland - 330 000 tons
Slide 5: Growing Sugar Production
Growing Sugar Production > 2,1 million Tons from Existing Capacity (All About Cane) Tons Raw 2010/11 2013/14 2017/18 Sugar Actual Actual Target Tongaat Hulett unutilised milling capacity > R13,3 billion South Africa 455 000 634 000 808 000 (current replacement value for 700 000 tons) Zimbabwe 333 00
Slide 6: Cost of Producing Sugar
Cost of Producing Sugar Goods & Services / Salaries & Wages / Transport* % Change Millions 2012/13 2013/14 Per ton raw Overall sugar produced Mozambique (Metical) Mt3 052 Mt2 785 9% down 14% down South Africa (Rands) R2 325 R2 558 10% up 16% down Zimbabwe (US$) $186 $146 21% down 23% down * Excludes
Slide 7: Off-Crop Expenditure
Off-Crop Expenditure • All costs incurred at the mill from shutdown of a season to 31 March of that financial year • Costs expensed against next seasons production Millions - Per 2012/13 2013/14 2014/15 Income Statement Mozambique 421 466 429 (Metical) South Africa 131 182 139 (Rand) Zimbabwe (US$)
Slide 8: Mozambique - Revenue and Cost Breakdown
Mozambique - Revenue and Cost Breakdown 2013/14 2012/13 Per ton raw Variance sugar Metical million Metical million produced REVENUE 5 035 5 644 Sugar sales 4 857 5 452 11% down 16% down Other activities 178 192 7% down 12% down COSTS Payments for 3rd party cane 318 350 Goods/services/transport/marke
Slide 9: Zimbabwe - Revenue and Cost Breakdown
Zimbabwe - Revenue and Cost Breakdown 2013/14 2012/13 Per ton raw Variance sugar US$ million US$ million produced REVENUE 286 380 Sugar sales 260 360 28% down 30% down Other activities 26 20 31% up 28% up Sugar stock movement 35 10 COSTS Payments for 3rd party cane 76 91 Goods/services/transport/mar
Slide 10: South Africa - Revenue and Cost Breakdown
South Africa - Revenue and Cost Breakdown 2013/14 2012/13 Per ton raw R million R million Variance sugar produced REVENUE * 5 265 4 467 Sugar sales - own production 4 206 3 554 18% up 9% down Other activities 1 059 913 16% up 11% down COSTS Payments for 3rd party cane/SASA levies 2 194 1 809 Goods/s
Slide 11: Growing Crops - Change in Fair Value: 2013/14
Growing Crops - Change in Fair Value: 2013/14 IAS 41 Fair Value Change included in the Income Statement: Year to 31 March R million 2013/14 2012/13 R million 2013/14 2012/13 Sugar operations: profit Roots - 78 303 1 061 962 before cane valuations Standing cane - 75 165 Cane valuation: change in FV -
Slide 12: Growing Crops - Change in Fair Value: 2013/14 (cont.)
Growing Crops - Change in Fair Value: 2013/14 (cont.) IAS 41 Fair Value Change included in the Income Statement: Year to 31 March R million 2013/14 2012/13 • South Africa Greater quantity of own standing cane South Africa 178 265 more than offset the impact of prices Swaziland 14 15 • Zimbabwe Zimba
Slide 13: Starch Operations
Starch Operations • Operating profit: R482 million (2013: R388 million) +24% • Starch and glucose processing margins benefited from • Local maize costs competitive with international prices • Co-product realisations • Overall sales volumes growth of 4% compared to prior year • Exports growth of 10 6
Slide 14: Land Conversion Activities
Land Conversion Activities • Operating profit: R1,080 billion (2013: R366 million) +195% • Sales of 259 developable hectares (a further 8 200 developable hectares still available and earmarked for development) • 63 developable hectares - Umhlanga/Izinga/Kindlewood/Cornubia areas • Average profit of
Slide 15: Financial Highlights
Financial Highlights 12 months to 12 months to R million % Change 31 March 2014 31 March 2013 Revenue 15 716 14 373 9% Operating Profit 2 374 2 131 11% Operating Cash Flow before Working Capital 2 934 2 182 34% Net Cash Flow for the year 300 - 180 Lower than Tongaat Hulett Net Debt at 31 March 4 320
Slide 16: Starch and Glucose - Overview 2014/15
Starch and Glucose - Overview 2014/15 • Large crop: 13,03 million tons to be harvested May - July 2014 • Ensures continued competitiveness of local maize industry - remains in line with international markets • Some margin pressure in Q1: 2014/15 due to high old season maize prices • Improving capaci
Slide 17: Magnitude of Tongaat Hulett's Land Conversion Activities Going Forward
Magnitude of Tongaat Hulett’s Land Conversion Activities Going Forward • Some 8 200 developable hectares (12 900 gross hectares) earmarked for conversion • Urban expansion: Durban to Ballito - 4 600 developable (7 100 gross) • Urban expansion to the West of Durban - 1 100 developable (2 050 gross) •
Slide 18: Current Context Within Which Land Conversion is Undertaken
Current Context Within Which Land Conversion is Undertaken • More land becoming “shovel ready” • Has many facets (Agricultural release, Infrastructure, Environmental, Zoning, Subdivision) • Bulk infrastructure - R22 billion unlocked • Opens up more possibilities for sales • Major positive has been t
Slide 19: Targeted Areas for Sales of 1 000 - 1 500 Hectares
Targeted Areas for Sales of 1 000 - 1 500 Hectares Next 5 Years - Based on Current Economic Conditions Targeted Areas - Total Developable Area Developable hectares hectares Urban expansion: Durban to Ballito 3 144 4 600 Urban expansion west of Durban 296 1 100 Coastal north of Ballito 270 2 500 Gran
Slide 20: Urban expansion: Durban to Ballito
Urban expansion: Durban to Ballito Sales Likely to come from 3 144 Developable Hectares in Targeted Areas (4 600 Developable Hectares Available) Targeted Areas - Area Developable Hectares Urban expansion: Durban to Ballito 3 144 Urban growth and consolidation - 1 122 Umhlanga region Coastal / Lifest
Slide 21: Urban growth and consolidation : Umhlanga Region
Urban growth and consolidation : Umhlanga Region Sales likely to come from 1 122 Developable Hectares in Targeted Areas Targeted Areas - Area Developable Hectares CORNUBIA PHOENIX INDUSTRIAL Urban growth and ESTATE WATERLOO consolidation - 1 122 Umhlanga region MARSHALL DAM CORNUBIA Ridgeside remain
Slide 22: Urban Growth and Consolidation – Umhlanga Region
Urban Growth and Consolidation – Umhlanga Region Ridgeside • Good progress being made with the targeted sale of 42 developable hectares • 20 developable hectares being retained • Net cash realisation of R34 Mega Transaction million per developable hectare has been achieved 22
Slide 23: Coastal / Lifestyle / Leisure / High End Residential
Coastal / Lifestyle / Leisure / High End Residential Sibaya - Nodes 1 and 5: 125 “Shovel Ready” Developable Hectares Sibaya - Node 4: 103 Developable Hectares in EIA Process Sibaya - Total: 561 Developable Hectares • This year will see a comprehensive international launch of our commercial process t
Slide 24: Airport Region - Business, Industrial and Residential
Airport Region - Business, Industrial and Residential Sales Likely to come from 1 725 Developable Hectares in Targeted Areas Targeted Areas - Area Developable Hectares Airport Region - Business, 1 725 Industrial and Residential INYANINGA WEST uShukela Drive – Airport ABERFOYLE linked Industrial, Ret
Slide 25: Airport Region - Business, Industrial and Residential
Airport Region - Business, Industrial and Residential Sales Likely to come from 1 725 Developable Hectares in Targeted Areas Targeted Areas - Area Developable Act enabling Special Economic Hectares Zones - 23 May 2014 Airport Region - Business, 1 725 Industrial and Residential uShukela Drive – Airpo
Slide 26: MAY 2014 i vo
MAY 2014 i vo @ Tongaat Hulett | - =| ,, V/\ ‘. i | \