2006 RESULTS AND ANALYST PRESENTATION INTRODUCTION 2006 Results

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2006 RESULTS AND ANALYST PRESENTATION

2006 RESULTS AND ANALYST PRESENTATION

INTRODUCTION • 2006 Results • Current Position • Strategic Plan • Conclusion • Annexures

INTRODUCTION • 2006 Results • Current Position • Strategic Plan • Conclusion • Annexures – A : Balance Sheets – B : Market Value of Fleet – C : Fleet Summary – D : Impact of Rand / USD Exchange Rate – E : Shipping Market Report

2006 RESULTS

2006 RESULTS

EARNINGS FROM SHIPS Owned & Long Term Chartered Bulk Carriers Daily Income ($/day) Daily

EARNINGS FROM SHIPS Owned & Long Term Chartered Bulk Carriers Daily Income ($/day) Daily Cost ($/day) Average No. of ships Profit Contribution Tankers Container Ships Total 2006 Total 2005 Handysiz e Panamax Capesize Chemica l 13 900 20 800 32 400 14 000 18 900 13 500 17 800 19 500 7 700 9 100 20 800 11 000 14 500 10 300 11 200 10 700 18. 7 2. 0 5. 6 3. 4 5. 7 1. 3 36. 7 35. 7 $89 m $114 m International Operations $75 m $105 m SA Based Operations $14 m $9 m 2006 Results $41 m $9 m Current Position $24 m $4 m Mid. Range Product $9 m Strategic Plan $2 m Conclusion

INCOME STATEMENT 2006 2005 Growth Comments Shipping Services Earnings from ships ($ million) Other

INCOME STATEMENT 2006 2005 Growth Comments Shipping Services Earnings from ships ($ million) Other shipping income Trading profits from ship sales ($ million) Overheads / Forex profit / Other interest ($ million) Profit from international operations (R million) Profit from SA based operations Trading, Freight and Financial Services Trading Services Freight Services Financial Services Group Overheads / Pref Dividends / STC / Disposal Adjustment Profit Attributable to Ordinary Shareholders 2006 Results Current Position 74. 8 105. 1 0. 6 35. 3 9. 8 7. 1 (3. 5) 122. 3 112. 0 9. 2% 829 714 16. 1% 81 81 910 795 25 22 127 66 15 6 167 94 (69) (38) 1 008 851 Strategic Plan Lower shipping markets Favourable contracts Increased interest income 14. 5% Bank only 77. 7% H 2 growth = 99% Marriott profit in 2005 Mainly pref dividends 18. 4% 19. 2% growth in HEPS Conclusion

BALANCE SHEET Including Revaluation of Fleet to Market Value 2006 Rm Fixed Assets /

BALANCE SHEET Including Revaluation of Fleet to Market Value 2006 Rm Fixed Assets / Investments 2005 Rm Comments 7 401 5 679 680 - 2 230 1 571 10 311 7 250 7 166 5 108 Net Debt 526 642 Bank Deposits 711 - 1 908 1 500 Total Equity & Liabilities 10 311 7 250 Gearing - Book Value - Fleet at Market Value 0. 19: 1 0. 07: 1 0. 33: 1 0. 13: 1 Bank Loans, Advances and Liquid Assets Current Assets Total Assets Equity Other Liabilities • R 1. 3 b increase in fleet value • Acquisition of 100% of Grindrod Bank • Trading Services – high December volumes + high commodity prices • Acquisitions • R 250 m Preference shares issued • Exchange rate movement (11% depreciation) • Increase in profits and fleet value • Share Buy Back (4% at avg price of R 12. 22) • Ship Sales (R 650 m) / Capex (R 1 068 m) • Increase in cash resources • Acquisition of 100% of Grindrod Bank • Trading volumes / acquisitions • See Annexure A for split between International Shipping & SA based Shipping, Trading, Freight & Financial Services • See Annexure B for detail on revaluation of fleet to market value 2006 Results Current Position Strategic Plan Conclusion

KEY FINANCIAL RATIOS CEPS CAGR 63% HEPS CAGR 60% Lower due to growth in

KEY FINANCIAL RATIOS CEPS CAGR 63% HEPS CAGR 60% Lower due to growth in book value of equity 2006 Results Current Position Strategic Plan Conclusion

KEY FINANCIAL RATIOS CAGR = 60% 2006 Results Current Position Strategic Plan Conclusion

KEY FINANCIAL RATIOS CAGR = 60% 2006 Results Current Position Strategic Plan Conclusion

CURRENT POSITION

CURRENT POSITION

CURRENT POSITION • • Smooth handover from Ivan Clark Management team restructured Substantial growth

CURRENT POSITION • • Smooth handover from Ivan Clark Management team restructured Substantial growth over last seven years Strong balance sheet with little gearing – Target Debt : Equity = 1: 1 – In theory could spend R 3 billion per annum over next 3 years – Will spend judiciously on ships and freight services • • • Non-shipping business positioned for growth Valuable fleet of ships + well diversified Fleet set to grow by 54% - Contracted at favourable prices Good contracted income base Firm shipping markets / prices 2006 Results Current Position Strategic Plan Conclusion

SHIPPING MARKETS Bulk Carrier - New building prices Bulk Carrier – 2 nd hand

SHIPPING MARKETS Bulk Carrier - New building prices Bulk Carrier – 2 nd hand prices (5 -yr old) Bulk Carrier – 1 -year time charter rates 2006 Results Current Position Strategic Plan Conclusion

SHIPPING MARKETS 2006 Results Current Position Strategic Plan Conclusion

SHIPPING MARKETS 2006 Results Current Position Strategic Plan Conclusion

STRATEGIC PLAN

STRATEGIC PLAN

SHIPPING SERVICES Market Outlook to 2010 • Drybulk - Continued growth in cargo movement

SHIPPING SERVICES Market Outlook to 2010 • Drybulk - Continued growth in cargo movement – China still a big driver Newbuildings not excessive compared to demand growth (Growth in coal / iron ore movements will offset fleet growth) Increased scrapping forecast Handysize market has very good fundamentals – Declining fleet / continued requirement for these ships to service ports with restrictions • Tankers - Continued growth in demand – Refining capacity constraints, change in trade patterns, continued consumer demand Legislative requirements have impact on supply However, still possible oversupply of larger product tankers from big order book Small product and chemical tanker markets have more favourable outlook - High stainless steel prices - Limited newbuildings / Current fleet is old - Demand from regional trades 2006 Results Current Position Strategic Plan Conclusion

SHIPPING SERVICES Key Strategic Initiatives • Restructure of operations • Continued focus on areas

SHIPPING SERVICES Key Strategic Initiatives • Restructure of operations • Continued focus on areas of expertise Ø Bulk Carriers § Handysize § Panamax § Capesize Ø Tankers § Mid Range Product § Small Chemical Ø Container Ships § Feeder • Portfolio shift towards small product and chemical tankers • Longer term contract cover 2006 Results Current Position Strategic Plan Conclusion

CONTRACTED EARNINGS Contracted Out at 31/12/2006 2007 2008 2009 Bulk Carriers Tankers Total Panamax

CONTRACTED EARNINGS Contracted Out at 31/12/2006 2007 2008 2009 Bulk Carriers Tankers Total Panamax Capesize Chemical Number (Average) 11. 6 2. 0 3. 7 2. 7 4. 3 - - - 24. 3 Revenue (US$/day) 15 000 20 800 33 500 13 100 18 700 - - - 18 700 Number (Average) 3. 5 2. 0 3. 4 1. 1 2. 9 - - - 12. 9 Revenue (US$/day) 16 400 20 700 36 100 22 100 21 200 - - - 23 900 Number (Average) 0. 7 2. 0 2. 3 - 1. 3 - - - 6. 3 Revenue (US$/day) 17 900 20 700 33 600 - 21 000 - - - 25 200 % of fleet fixed out by dwt Charters US$m Small Bunker Barges Handysize Contracted Profits (US$m) Mid Range Container Ships Ship Sales US$m TOTAL US$m 2007 74% 57. 4 26. 8 84. 2 2008 54% 40. 2 - 40. 2 2009 36% 18. 9 - 18. 9 2006 Results Current Position Strategic Plan Conclusion

SHIPPING SERVICES Key Strategic Initiatives (continued) • Lock in value through ship sales -

SHIPPING SERVICES Key Strategic Initiatives (continued) • Lock in value through ship sales - Value > PV of expected earnings - Better opportunities in other sectors • Expand fleet at the right time in the right sectors - Underinvested sectors - Take advantage of anticipated trading pattern changes - Against medium / long term contract • International listing / Unbundling - Investigation ongoing Realize hidden value in shipping and SA based operations Will allow for international comparison Broader shareholder base and analyst coverage Shareholder approval will be required 2006 Results Current Position Strategic Plan Conclusion

TRADING, FREIGHT & FINANCIAL SERVICES TRADING SERVICES • Current Operations – Atlas Trading &

TRADING, FREIGHT & FINANCIAL SERVICES TRADING SERVICES • Current Operations – Atlas Trading & Shipping – soft commodities – Oreport (50%) – Mineral commodities – Cocket Marine (50%) – Bunkers (fuel for ships) • Grow through new markets / acquisitions • Improve efficiency through utilization of Group shipping and logistics infrastructure 2006 Results Current Position Strategic Plan Conclusion

TRADING, FREIGHT & FINANCIAL SERVICES FREIGHT SERVICES • Key Drivers – – Export /

TRADING, FREIGHT & FINANCIAL SERVICES FREIGHT SERVICES • Key Drivers – – Export / Import trade volumes Domestic growth SA logistics hub for regional growth Infrastructural spend (rail, terminals, ports, roads, etc) • Positioning for Growth – Staffing expertise – Development of existing terminal facilities – Acquisition of assets (locomotives, trucks, materials handling equipment) – Acquisition of complimentary business from within existing operations 2006 Results Current Position Strategic Plan Conclusion

TRADING, FREIGHT & FINANCIAL SERVICES FREIGHT SERVICES – STRATEGY • Restructure and consolidation of

TRADING, FREIGHT & FINANCIAL SERVICES FREIGHT SERVICES – STRATEGY • Restructure and consolidation of freight services business into focused operating divisions • Terminals - develop Maputo (R 139 m capex approved) - develop Richards Bay (R 168 m capex approved) - develop Maydon Wharf Facilities (R 59 m capex approved) • Intermodal (container logistics) - consolidate, then grow • Ports - develop PPP opportunities in Southern Africa 2006 Results Current Position Strategic Plan Conclusion

TRADING, FREIGHT & FINANCIAL SERVICES FREIGHT SERVICES – STRATEGY (continued) • Rail - acquire

TRADING, FREIGHT & FINANCIAL SERVICES FREIGHT SERVICES – STRATEGY (continued) • Rail - acquire additional locomotives and rolling stock - enhance rail integration capability • Logistics - acquire strategic businesses - buy-up in existing JV’s - enhance Lead Logistic Provider capability • Seafreight - grow business through expanded trading scope and enhanced feeder offering • Ships agency - expand agency network 2006 Results Current Position Strategic Plan Conclusion

TRADING, FREIGHT & FINANCIAL SERVICES Grindrod Bank • Why Grindrod Bank? - Obtain control

TRADING, FREIGHT & FINANCIAL SERVICES Grindrod Bank • Why Grindrod Bank? - Obtain control - Value proposition – Discount to NAV • Additional capital injected (doubled to R 250 m / strong balance sheet) • Investment bank focused on niche areas - Deposit taking Property sector lending and advisory Corporate and commercial asset based financing and structuring Corporate finance Private client wealth management Structured investment products 2006 Results Current Position Strategic Plan Conclusion

TRADING, FREIGHT & FINANCIAL SERVICES Grindrod Bank - Strategy • Alignment with Group strategy

TRADING, FREIGHT & FINANCIAL SERVICES Grindrod Bank - Strategy • Alignment with Group strategy - Property requirements - Expand services to Group clients (property finance, receivables finance and trade finance) - Creation of investment products to efficiently fund Group assets / expansion • Acquisition / development of fee generating businesses • Create offshore private client wealth management capability • Net-1 initiative for card based wage payments 2006 Results Current Position Strategic Plan Conclusion

OTHER STRATEGIC INITIATIVES • BEE – 18% of Grindrod Bank is being sold to

OTHER STRATEGIC INITIATIVES • BEE – 18% of Grindrod Bank is being sold to BEE – Consolidating and expanding group’s current BEE businesses – Continued focus on addressing other BEE scorecard items 2006 Results Current Position Strategic Plan Conclusion

CONCLUSION

CONCLUSION

CONCLUSION • Sound prospects: – Shipping • Long term charter rates / ship prices

CONCLUSION • Sound prospects: – Shipping • Long term charter rates / ship prices indicate expectation of a firm shipping market in the medium term • Contracted growth in fleet (54% - detail in Annexure C) • Contracted earnings (2007 = 74%; 2008 =54%; 2009 = 36%) • Expectation of gradual weakening of Rand (10 c move = estimated R 20 m Income Statement impact – Annexure D) – Trading, Freight and Financial Services well positioned for growth – Capacity to invest in expansion • Consolidating and extracting value from existing businesses • Focus on expanding existing facilities to capitalise on SA growth • Successful, experienced management team 2006 Results Current Position Strategic Plan Conclusion

ANNEXURES

ANNEXURES

ANNEXURE A BALANCE SHEETS (Including Fleet at Market Value) 2006 Rm International Shipping Fixed

ANNEXURE A BALANCE SHEETS (Including Fleet at Market Value) 2006 Rm International Shipping Fixed Assets / Investments SA Shipping and Trading, Freight & Financial Services Group 5 688 1 713 7 401 - 680 560 1 670 2 230 6 248 4 063 10 311 Equity 6 166 1 000 7 166 Net Debt (155) 681 526 - 711 237 1 671 1 908 Total Equity & Liabilities 6 248 4 063 10 311 Gearing -2. 5% 68. 1% 7. 3% Bank loans, advances & liquid assets Current Assets Total Assets Bank Deposits Other Liabilities

ANNEXURE B MARKET VALUE OF FLEET Rm Excess of market value over book value

ANNEXURE B MARKET VALUE OF FLEET Rm Excess of market value over book value of owned ships 1 029 Indicative values obtained in consultation with reputable ship brokers Value of long term charters 2 452 Differential between Grindrod charter rate and current rate to replace charter i. e. does not include expected profit PV @ 8% (USD WACC) converted at closing exchange rate Value of ship purchase options on chartered ships 862 Projected value of ship at end of charter compared to option strike price PV @ 8% (USD WACC) 4 343 The group valuation should consist of: 1. the analyst’s valuation of Grindrod’s SA based operations 2. a valuation of the international shipping operation taking into account the fleet value, comparison to peers and the analysts estimation of the group’s ability to extract value from its shipping fleet

ANNEXURE C Contracted In at 31/12/2006 2007 2009 Cost (US$/day) Small Bunker Barges Total

ANNEXURE C Contracted In at 31/12/2006 2007 2009 Cost (US$/day) Small Bunker Barges Total Capesize Chemical 19. 8 2. 0 5. 1 4. 4 6. 5 1 - - 38. 8 7 900 9 200 20 800 11 400 14 700 9 000 - - 11 200 20. 7 2. 0 4. 4 4. 0 7. 4 3. 1 - 2. 0 43. 6 8 000 9 200 19 300 14 600 9 800 - - 10 900 20. 6 2. 0 3. 0 4. 0 8. 0 6. 2 - 2. 0 45. 8 8 000 9 200 21 400 14 600 14 700 10 900 - - 11 100 Number Mid Range Container Ships Panamax Number Cost (US$/day) Tankers Handysize Number Cost (US$/day) 2008 Bulk Carriers Net Number of Ships to Deliver 2007 2 - 1 - - - 4 2008 1 - -3 - 1 3 - 2 4 2009 -1 - - - 1 4 - - 4 Fleet at end of 2009 20 2 3 4 10 8 - 2 49

ANNEXURE D IMPACT OF RAND / USD EXCHANGE RATE - 10 C MOVE Income

ANNEXURE D IMPACT OF RAND / USD EXCHANGE RATE - 10 C MOVE Income Statement Translation Adjustment on $75 m = R 7. 5 m Average Rate impact on + $125 m* = R 12. 5 m R 20. 0 m Balance Sheet Translation Adjustment on + $315 m* = R 31. 5 m * Based on 2006 numbers