GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017

Transcription

1 GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017

2 MANAGEMENT SEGMENTAL BALANCE SHEETS AS AT 30 JUNE 2017 R000 FREIGHT SERVICES SHIPPING FINANCIAL SERVICES GROUP TOTAL GROUP Fixed assets Other assets Current assets excluding cash, liquid assets and advances TOTAL ASSETS Equity Preference share capital Net debt (including cash) ( ) Non-current liabilities Current liabilities (10 703) TOTAL EQUITY AND LIABILITIES GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S2)

3 OTHER SEGMENTAL INFORMATION AS AT 30 JUNE 2017 R000 FREIGHT SERVICES SHIPPING FINANCIAL SERVICES GROUP SEGMENTAL ADJUSTMENTS TOTAL GROUP Depreciation and amortisation ( ) Net interest (69 811) (57 423) Preference dividend GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S3)

4 SEGMENTAL ANALYSIS AS AT 30 JUNE 2017 Unaudited Unaudited 30 June 30 June R000 R000 Revenue Freight Services Freight Services excluding businesses classified as held for sale Businesses classified as held for sale Shipping Financial Services Group Segmental adjustments ( ) ( ) Freight Services ( ) ( ) Shipping ( ) ( ) Financial Services - - Group Earnings/(loss) before interest, taxation, depreciation and amortisation Freight Services Freight Services excluding businesses classified as held for sale Businesses classified as held for sale ( ) Shipping (26 823) Financial Services Group (51 411) Segmental adjustments ( ) ( ) Freight Services ( ) ( ) Shipping ( ) Financial Services - - Group Operating (loss)/profit before interest and taxation Freight Services (76 726) Freight Services excluding businesses classified as held for sale Businesses classified as held for sale ( ) Shipping (8 817) ( ) Financial Services Group (2 288) (51 519) ( ) Segmental adjustments ( ) Freight Services ( ) (61 764) Shipping (45 404) Financial Services - - Group - - (92 453) ( ) Share of associate companies' profit/(loss) after taxation Freight Services (7 165) Freight Services excluding businesses classified as held for sale (7 331) Businesses classified as held for sale (2 223) 166 Group (7 165) Segmental adjustments (7 165) (Loss)/profit attributable to ordinary shareholders Freight Services (81 932) ( ) Freight Services excluding businesses classified as held for sale (92 034) Businesses classified as held for sale ( ) ( ) Shipping ( ) ( ) Financial Services Group (46 990) (86 623) ( ) Segmental adjustments - - (86 623) ( ) GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S4)

5 LEGAL NET DEBT BREAKDOWN AS AT 30 JUNE 2017 Including Financial Services Excluding Financial Services R million Net Debt Net Debt Loans and advances to bank customers Liquid assets and short-term negotiables Bank and cash Bank and cash included in non-current assets held for sale Long-term loans ( ) ( ) Deposits from bank customers ( ) Current portion of long-term loans ( ) ( ) Short term borrowings and overdraft ( ) ( ) Interest bearing debt included in non-current liabilities held for sale ( ) ( ) Net debt ( ) ( ) GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S5)

6 FREIGHT SERVICES CONTRIBUTION BY BUSINESS UNIT Please note that these KPIs are as per Management Structure (JV s proportionally consolidated line by line and e.g. revenue will be higher than revenue in the legal structure (where JVs are added as a one line item) Freight Services June 2017 June 2016 Revenue EBITDA Operating income (77) 32 Attributable income (82) (732) Operating Margins (%) (5) 1 Freight Services (excluding rail assets held for sale) June 2017 June 2016 Rail assets held for sale June 2017 June 2016 Revenue EBITDA Operating income Attributable income 242 (92) Operating Margins (%) 10 1 Revenue EBITDA (207) 53 Operating income (219) 17 Attributable income (324) (640) Operating Margins (%) (77) 2 GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S6)

7 FREIGHT SERVICES CONTRIBUTION BY BUSINESS UNIT Please note that these KPIs are as per Management Structure (JV s proportionally consolidated line by line and e.g. revenue will be higher than revenue in the legal structure (where JVs are added as a one line item) Port, Terminals and Rail June 2017 June 2016 Ports, Terminal and Rail (excluding rail assets held for sale) June 2017 June 2016 Revenue EBITDA Operating income (70) 26 Earnings before NTI 1 (170) (40) Attributable income (101) (700) Operating margin (%) (9) 2 Revenue EBITDA Operating income Earnings before NTI 1 85 (34) Attributable income 223 (60) Operating Margins (%) 28 2 Logistics June 2017 June 2016 Revenue EBITDA Operating income (7) 6 Earnings before NTI 1 19 (31) Attributable income 19 (32) Operating margin (%) (1) 1 Rail assets held for sale June 2017 June 2016 Revenue EBITDA (207) 53 Operating income (219) 17 Earnings before NTI 1 (255) (6) Attributable income (324) (640) Operating Margins (%) (77) 2 1 Earnings before non-trading items (NTI) GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S7)

8 FLEET OVERVIEW (OWNED AND LONG-TERM CHARTERED SHIPS) Bulk carriers Tankers Contracted in at 30 June 2017 Handysize Supramax Capesize Medium-range Small Total H Number (average) Cost (US$/day) Number (average) Cost (US$/day) Number (average) Cost (US$/day) Current fleet H (1) (1) (2) 2018 (1) (1) (1) (1) (4) 2019 (1) (1) Fleet at end of Charter option extensions and purchase options on 1 Handysize bulk carrier, 2 Supramax bulk carrier and 1 Capesize bulk carrier are not included in the above numbers as they are not contracted. GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S8)

9 SHIPPING CONTRACT COVER Bulk carriers Tankers Contracted at 30 June 2017 Handysize Supramax Capesize Mediumrange Small Total H Number (average) Revenue (US$/day) Number (average) Revenue (US$/day) Number (average) Revenue (US$/day) Contract profits % of fleet fixed Charters (US$ million) H (0.4) Note : Variable volume contracts have been included at forecast volumes and rates. Most contracts are index linked and the rates forecast is based on the market at June 2017 and will fluctuate if the market changes GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S9)

10 SHIPPING ANALYSIS OF H EARNINGS Bulk carriers Tankers H H Handysize Supramax Capesize Medium-range Small Total Total % Average number of owned / long-term chartered ships Average daily revenue (US$) Average daily cost (US$) (Loss)/profit (US$ million) (3.9) (3.0) (4.1) (0.8) 0.6 (11.2) (21.0) 47 (US$ millions) Profit from ship operating activities (47) Marine Fuels (33) Overheads (7.3) (7.4) 1 Profit share on earnings (1.1) 100 Funding costs/taxation (1.5) 0.9 (166) Foreign exchange (0.9) (1.7) (47) Loss before unusual items (13.5) (16.6) 19 Impairments/Amortisations (4.7) 100 Release of/(provision for) onerous contracts 4.1 (1.9) 316 Loss on cancellation of Cockett UK lease (4.2) 100 (9.4) (27.4) (66) GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S10)

11 SHIPPING ANALYSIS OF H REVENUE 2017 H Dry bulk Handysize Supramax Capesize Medium range Tankers Small Average no. of owned / long term ships Average daily revenue (US$) Total Dry bulk and Tankers Rm Total Dry bulk and Tankers Rm Days ANALYSIS OF 2014 EARNINGS : SHIPPING R million* * Average exchange rate of US$/R13.32 Ship operating revenue Ship sales Other revenue adjustments Marine Fuels Total Shipping revenue GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S11)

12 ADDITIONAL MARKET OUTLOOK FINANCIAL + FREIGHT + SHIPPING

13 SOUTH AFRICAN NATIONAL PORT VOLUMES YTD 2017 TEUs YTD 2017 YTD 2016 Volume Variance % Deep sea landed full Deep sea landed empty Deep sea shipped full Deep sea shipped empty Total Source: Transnet National Ports Authority, June 2017 GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S13)

14 Vehicle units FINANCIAL + FREIGHT + SHIPPING AUTO INDUSTRY SECTOR SOUTH AFRICA South Africa: Vehicle imports, units South Africa: Vehicle exports, units (includes M&HCVs) South Africa: Vehicle production South Africa: Domestic sales f = BMI forecast Source: Automotive News Europe, NAAMSA, BMI forecasts, 26 July 2017 GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S14)

15 SA MOTOR INDUSTRY SALES Domestic sales Export sales January February March April May June July August September October November December Source: NAAMSA, June 2017 GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S15)

16 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 US$ per day FINANCIAL + FREIGHT + SHIPPING HANDYSIZE BULK CARRIER AND PRODUCTS TANKER TIME CHARTER RATES BHSI: time charter average 1 year timecharter rate 47k-48k modern products tanker Source: Clarksons Research (Shipping Intelligence Network), 27 July 2017 GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S16)

17 GLOBAL SEABORNE COAL TRADE Source: Braemar ACM Research, 28 July 2017 GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S17)

18 GLOBAL SEABORNE TRADE ANNUAL CHANGE Source: Braemar ACM Research, 28 July 2017 GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S18)

19 DISCLAIMER Statements contained throughout this presentation regarding the prospects of the group have not been reviewed or reported on by the group's external auditors. The information supplied herein 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, as a consequence of reliance on the information provided. Provision of this data does not obviate the need to make further appropriate enquiries and inspections. The information is for the use of the recipient only and is not to be used in any document for the purposes of raising finance without the written permission of Clarkson Research Services Limited (CRSL) and/or Thomson Reuters, Hartland Shipping Services Limited and/or Braemar ACM Research and/or the information sources. For the statistical and graphical information drawn from the Information Sources databases, it is advised that: (i) (ii) (iii) (iv) (v) (vi) (vii) some information on the information sources databases is derived from estimates or subjective judgements; the information in the databases of other maritime data-collection agencies may differ from the information in the information sources databases; while the information sources have taken reasonable care in the compilation of the statistical and graphical information and believe it to be accurate and correct, data compilation is subject to limited audit and validation procedures and may accordingly contain errors; the information sources, their agents, officers and employees do not accept liability for any loss suffered in consequence of reliance on such information or in any other manner; the provision of such information does not obviate any need to make appropriate further enquiries; the provision of such information is not an endorsement of any commercial policies and/or any conclusions by any of the information sources; and shipping is a variable and cyclical business and any forecasting concerning it cannot be very accurate. GRINDROD LIMITED ADDITIONAL INFORMATION FOR ANALYSTS for the six months ended 30 June 2017 (S19)

20 GRINDROD LIMITED FINANCIAL + FREIGHT + SHIPPING