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RESULTS PRESENTATION for the year ended 31 December 2010 February 2011

RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

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Page 1: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

RESULTS PRESENTATIONfor the year ended 31 December 2010

February 2011

Page 2: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Content

2010 Business environment

Divisional reviews

2010 Results

Strategic update

Conclusion

Additional information for analysts is available on the group’s websitewww.grindrod.co.za

2

2010 Business environment

Divisional reviews

2010 Results

Strategic update

Conclusion

Additional information for analysts is available on the group’s websitewww.grindrod.co.za

Page 3: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

2010 Business environment

Page 4: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

2010 Business environment

Generally improved trading conditions both locally and globally

China, India and commodity based economies continue to drive global economic growth

Western economies showing slow recovery

Demand for commodities at high levels

Weak product and chemical tanker markets

Drybulk shipping markets firm in H1 but impacted by fleet oversupply in H2

Continued high volatility in shipping, commodity and financial markets

South African industrial action impacted ship operating and Freight Services

Strong Rand/US Dollar exchange rate

– Average R7,34/USD vs R8,46 in 2009

– Closing R6,62/USD vs R7,37 in 2009

2010 Businessenvironment

Generally improved trading conditions both locally and globally

China, India and commodity based economies continue to drive global economic growth

Western economies showing slow recovery

Demand for commodities at high levels

Weak product and chemical tanker markets

Drybulk shipping markets firm in H1 but impacted by fleet oversupply in H2

Continued high volatility in shipping, commodity and financial markets

South African industrial action impacted ship operating and Freight Services

Strong Rand/US Dollar exchange rate

– Average R7,34/USD vs R8,46 in 2009

– Closing R6,62/USD vs R7,37 in 2009

4

Page 5: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Divisional reviews

Page 6: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Divisional reviews

ZAR earnings declined by 26%

– Reduced ship sale profits

– Strong ZAR/USD exchange rate

– Excluding ship sales, USD earnings up 59% on prior year

Average earnings per day outperformed average spot rates

Drybulk shipping markets were volatile, but stronger than anticipated

Contract cover protected earnings in weak product tanker market

Fleet market value R811 million > book value

Current fleet of 35 ships to increase to 42 by 2014

Expanded bunker tanker business and took delivery of bunker tanker newbuilding

Increased contract cover to 53% for 2011 (drybulk 56%/tankers 49%)

Revenue -13%

EBITDA -30%

Operating income -37%

Operating margin 9.5% vs 13% in 2009

ZAR earnings declined by 26%

– Reduced ship sale profits

– Strong ZAR/USD exchange rate

– Excluding ship sales, USD earnings up 59% on prior year

Average earnings per day outperformed average spot rates

Drybulk shipping markets were volatile, but stronger than anticipated

Contract cover protected earnings in weak product tanker market

Fleet market value R811 million > book value

Current fleet of 35 ships to increase to 42 by 2014

Expanded bunker tanker business and took delivery of bunker tanker newbuilding

Increased contract cover to 53% for 2011 (drybulk 56%/tankers 49%)

6

Page 7: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Analysis of results

Profit from owned andlong-term chartered ships

Bulk carriers Tankers 2010 2009 Growth

Handysize Panamax Capesize Mid-range Small Chemical Total Total %

Average number of owned/long-term chartered ships (A) 14,7 2,0 3,2 8,7 1,5 4,0 34,1 34,7 (2)

Average daily revenue (US$) (B) 13 600 23 400 34 600 18 600 10 500 15 300 17 500 15 900 10

Average daily cost (US$) (C) 8 800 9 400 23 300 15 600 12 200 14 200 12 800 11 500 (11)

Profit (US$ million) (Ax(B-C)x365) 25,9 10,2 13,3 9,4 (0,9) 1,7 60 55 9

(US$ million)

Divisional reviews

(US$ million)

Profit from ship operating activities 28 31 (10)

Profit from ship sales 3 31 (90)

Shipbuilding costs (1) (7) 86

Overheads (27) (28) 4

Funding costs/preference dividends/taxation (8) (17) 53

Forex loss (6) (5) (20)

Total 49 60 (18)

7

Average daily cost includes interest/depreciation on owned ships

Page 8: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Contract cover

53%

US$30m

Divisional reviews

24%

8% 7%

US$26m

US$16mUS$14m

2011 2012 2013 2014

% of fleet fixed Contracted earnings (US$m)

8NB: Includes management estimate of earnings under COA’s

Page 9: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Shipping marketsDivisional reviews

100,000

120,000

140,000

160,000

180,000

200,000

Bulk carrier spot earnings (US$/day)

0

20,000

40,000

60,000

80,000

100,000

2000

-Q1

2000

-Q2

2000

-Q3

2000

-Q4

2001

-Q1

2001

-Q2

2001

-Q3

2001

-Q4

2002

-Q1

2002

-Q2

2002

-Q3

2002

-Q4

2003

-Q1

2003

-Q2

2003

-Q3

2003

-Q4

2004

-Q1

2004

-Q2

2004

-Q3

2004

-Q4

2005

-Q1

2005

-Q2

2005

-Q3

2005

-Q4

2006

-Q1

2006

-Q2

2006

-Q3

2006

-Q4

2007

-Q1

2007

-Q2

2007

-Q3

2007

-Q4

2008

-Q1

2008

-Q2

2008

-Q3

2008

-Q4

2009

-Q1

2009

-Q2

2009

-Q3

2009

-Q4

2010

-Q1

2010

-Q2

2010

-Q3

2010

-Q4

2011

-Q1

Baltic Capesize Index ave 4 TC Baltic Panamax Index ave 4 TC Baltic Handysize Index ave TC

Source: Clarksons Research Services Limited, copyright Baltic Exchange

9

Page 10: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Shipping marketsDivisional reviews

20 000

25 000

30 000

35 000

40 000

Clean products tanker 30 – 38 000 dwt spot earnings forselected routes (US$/day)

ROUTES: 35 000 GULF / JAPAN; 35 000 GULF / E AFRICA; 37 000 UKC / USAC; 38 000 CARRIBS / USAC; 30 000 SING / JAPANSource: Clarksons Research Services Limited

0

5 000

10 000

15 000

20 000

2004

-Q1

2004

-Q2

2004

-Q3

2004

-Q4

2005

-Q1

2005

-Q2

2005

-Q3

2005

-Q4

2006

-Q1

2006

-Q2

2006

-Q3

2006

-Q4

2007

-Q1

2007

-Q2

2007

-Q3

2007

-Q4

2008

-Q1

2008

-Q2

2008

-Q3

2008

-Q4

2009

-Q1

2009

-Q2

2009

-Q3

2009

-Q4

2010

-Q1

2010

-Q2

2010

-Q3

2010

-Q4

2011

-Q1

10

Page 11: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Shipping marketsDivisional reviews

80

100

120

140

160

180

Secondhand prices 5 year old (US$ million)

Source: Clarksons Research Services Limited

11

0

20

40

60

80

2000

-Q1

2000

-Q2

2000

-Q3

2000

-Q4

2001

-Q1

2001

-Q2

2001

-Q3

2001

-Q4

2002

-Q1

2002

-Q2

2002

-Q3

2002

-Q4

2003

-Q1

2003

-Q2

2003

-Q3

2003

-Q4

2004

-Q1

2004

-Q2

2004

-Q3

2004

-Q4

2005

-Q1

2005

-Q2

2005

-Q3

2005

-Q4

2006

-Q1

2006

-Q2

2006

-Q3

2006

-Q4

2007

-Q1

2007

-Q2

2007

-Q3

2007

-Q4

2008

-Q1

2008

-Q2

2008

-Q3

2008

-Q4

2009

-Q1

2009

-Q2

2009

-Q3

2009

-Q4

2010

-Q1

2010

-Q2

2010

-Q3

2010

-Q4

Capesize 170 000 dwt Panamax 73 000 dwt Handysize 25 000-30 000 dwt 47 000 dwt D/H Tanker

Page 12: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Shipping marketsDivisional reviews

200

250

300

350

400

Capesize bulk carriers

No of ships mDwt

Fleet (Feb 2011) 1 182 212,45

Orderbook (Feb 2011) 638 124,34

Percentage of fleet 54% 59%

Percentage over 25 years 7% 7%

% Non-delivery in 2009 34% 33%

0

50

100

150

200

<=19

86

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Existing fleet Capesize Capesize on order

12

% Non-delivery in 2009 34% 33%

% Non-delivery in 2010 42% 39%

Source: Clarksons Research Services Limited

Page 13: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Shipping markets

800

1 000

1 200

1 400

Handysize bulk carriers

Divisional reviews

No of ships mDwt

Fleet (Feb 2011) 3 046 82,73

Orderbook (Feb 2011) 808 26,20

Percentage of fleet 27% 32%

Percentage over 25 years 44% 44%

% Non-delivery in 2009 45% 47%

0

200

400

600

<=19

86

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Existing fleet Handysize Handysize on order

13

% Non-delivery in 2009 45% 47%

% Non-delivery in 2010 39% 38%

Source: Clarksons Research Services Limited

Page 14: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Shipping markets

150

200

250

Medium-range tankers

Divisional reviews

No of ships mDwt

Fleet (Feb 2011) 1 940 81,21

Orderbook (Feb 2011) 340 14,88

Percentage of fleet 18% 18%

Percentage over 25 years 7% 6%

% Non-delivery in 2009 18% 18%

0

50

100

<=19

86

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Existing fleet MR MR on order

14

% Non-delivery in 2010 39% 37%

Source: Clarksons Research Services Limited

Page 15: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Earnings growth of 18% in challenging operating environment

Earnings impacted by:

– Limited availability of rail wagons to service drybulk terminal volumes

– Industrial action in South Africa

– Slow turnaround of the transport business/rationalisation costs and write-offs

– Maputo Port – recognition of earnings and increasing volumes

– Strong performance by Intermodal business

– Acquisition of Fuelogic

Restructured into two divisions, Ports and Terminals/Logistics, to ensure strategic delivery

Rail projects with TFR to increase export capacity of Richards Bay and Maputo corridors

Divisional reviews

Revenue +15%

EBITDA +24%

Operating income +25%

Operating margin 11% vs 10% in 2009

15

Earnings growth of 18% in challenging operating environment

Earnings impacted by:

– Limited availability of rail wagons to service drybulk terminal volumes

– Industrial action in South Africa

– Slow turnaround of the transport business/rationalisation costs and write-offs

– Maputo Port – recognition of earnings and increasing volumes

– Strong performance by Intermodal business

– Acquisition of Fuelogic

Restructured into two divisions, Ports and Terminals/Logistics, to ensure strategic delivery

Rail projects with TFR to increase export capacity of Richards Bay and Maputo corridors

Page 16: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Maputo Port/Coal Terminal expansion

– Concessions extended to 2043

– Dredging of port from 9.4m to 11m completed January 2011

– Joint venture to develop a Maputo container depot (completion Q3 2011)

– Phase 3 of Coal Terminal expansion to 6m tonnes commissioned

February 2011

– Land secured to potentially expand Coal Terminal capacity to 25m tonnes

(completion 2014)

Conclusion of Baobab joint venture to pursue major transport

infrastructure projects

Award for the KZN BEE Deal/Project of the year

Divisional reviews

Maputo Port/Coal Terminal expansion

– Concessions extended to 2043

– Dredging of port from 9.4m to 11m completed January 2011

– Joint venture to develop a Maputo container depot (completion Q3 2011)

– Phase 3 of Coal Terminal expansion to 6m tonnes commissioned

February 2011

– Land secured to potentially expand Coal Terminal capacity to 25m tonnes

(completion 2014)

Conclusion of Baobab joint venture to pursue major transport

infrastructure projects

Award for the KZN BEE Deal/Project of the year

16

Page 17: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Earnings declined by 34% (24% in US Dollars)

Revenue increased by 14% (8% volume growth)

Strong performances of marine fuels and agricultural commodities

Operating margin declined to US$3.14/mt (2009: US$4.00/mt)

– Product mix

– New business development costs

Continued focus on South America, Asia and sub-Saharan Africa

Participation in supply chain projects

– Strategic alliances in Southern Africa

– Bunker physical supply (London’s Queen’s Channel)

– Chrome ore, stainless steel, manganese

Divisional reviews

Revenue +14%

EBITDA -26%

Operating income -29%

Operating margin 0.8% vs 1.2% in 2009

Earnings declined by 34% (24% in US Dollars)

Revenue increased by 14% (8% volume growth)

Strong performances of marine fuels and agricultural commodities

Operating margin declined to US$3.14/mt (2009: US$4.00/mt)

– Product mix

– New business development costs

Continued focus on South America, Asia and sub-Saharan Africa

Participation in supply chain projects

– Strategic alliances in Southern Africa

– Bunker physical supply (London’s Queen’s Channel)

– Chrome ore, stainless steel, manganese

17

• Development of newmarkets

• Secure commodity supply• Increased profitability from

supply chain participation

Page 18: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Good profit growth in challenging environment

– 27% increase in attributable earnings

– Significant fee income

– Maintained net interest margin

– Growth in advances

Strong liquidity

Well managed lending book

Growth in Asset Management division

– Assets under management grew 28%

– Growth in product range

Strong performance from Grindrod Global Property Income Fund and Grindrod Diversified

Preference Share Fund

Divisional reviews

Revenue +42%

EBITDA +67%

Operating income +47%

Operating margin 46,2% vs 38,5% in 2009

Good profit growth in challenging environment

– 27% increase in attributable earnings

– Significant fee income

– Maintained net interest margin

– Growth in advances

Strong liquidity

Well managed lending book

Growth in Asset Management division

– Assets under management grew 28%

– Growth in product range

Strong performance from Grindrod Global Property Income Fund and Grindrod Diversified

Preference Share Fund

18

Page 19: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

2010 Results

Page 20: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Attributable income by division

262

120 45 (9) 780

600

800

1 000

2010

R m

illio

n

492

222

181 36 (58)873

600

800

1 000

2009

R m

illio

n

2010 Results

20

362

0

200

400

Shipping FreightServices

Trading FinancialServices

Groupcost

Total

R m

illio

n

0

200

400

Shipping FreightServices

Trading FinancialServices

Groupcost

TotalR

mill

ion

• Non-shipping businesses contributed 54% of earnings (2009: 47%)• 2010 group costs include internal fees vs BEE cost in prior year

Page 21: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Income statement2010 Results

(R million) 2010 2009 Growth %

Revenue 30 203 27 692 9

EBITDA 1 304 1 435 (9)

Trading commodity price andvolume/acquisitionsTrading commodity price andvolume/acquisitions

Lower ships sale profit/averageexchange rateLower ships sale profit/averageexchange rate

21

Operating income 964 1 143 (16)

Attributable income 780 873 (11) Lower interest costs/lowereffective tax rate/MPDCperformance

Lower interest costs/lowereffective tax rate/MPDCperformance

Increased depreciation on capexIncreased depreciation on capex

Exchange rate impact of R166 million vs 2009

Page 22: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Headline earnings per share

263.1

511.7

300

400

500

600

2010 Resultsce

nts

24.5 35.050.2

121.4

185.3220.8

263.1

189.6167.6

0

100

200

300

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

cent

s

22

Page 23: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Dividends per share/cover

68.0

2.5

3.0

3.5

4.0

4.5

80

100

120

140

cent

s/sh

are

2010 Resultstim

es cover

1.6 2.8 3.610.0

20.028.0 34.0

68.0

30.0 27.04.0 5.2 8.425.0

32.0

38.044.0

30.027.0

0.0

0.5

1.0

1.5

2.0

0

20

40

60

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

H2 H1 Dividend cover

cent

s/sh

are

23

times cover

Page 24: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Balance sheet

(R million) 2010 2009

Ships 3 266 2 485

Other fixed assets/investments 3 341 2 897

Current assets 4 010 3 588

Total assets 10 617 8 970

Business acquisitions/terminalexpansionBusiness acquisitions/terminalexpansion

Higher commodity pricesHigher commodity prices

Capital expenditure/acquisitionsCapital expenditure/acquisitions

2010 Results

Total assets 10 617 8 970

Equity 5 971 5 836

Net debt 1 904 258

Other liabilities 2 742 2 876

Total equity and liabilities 10 617 8 970

Net debt:equity 32% 4%

Profit generated offset byexchange rate/dividends paidProfit generated offset byexchange rate/dividends paid

Capital expenditure/commodityprices/acquisitionsCapital expenditure/commodityprices/acquisitions

24

Page 25: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Capital expenditure2010 Results

Description Capitalexpenditure

Capital commitments and approved expenditure

2010 2011 2012 2013 Totalcommitments

(R million)

Ships 1 027 803 194 34 1 031

Property and terminals 179 238 74 1 313

Capacity for a further R7 billion - R8 billion capital spend over the next three years

Property and terminals 179 238 74 1 313

Equipment, locomotivesand vehicles 209 93 6 5 104

Subtotal 1 415 1 134 274 40 1 448

Acquisition of businesses 307 - - - -

Total 1 722 1 134 274 40 1 448

25

Page 26: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Cash flow

(258)

1340146 (565)

(547)

(1 722)(1 904)

( 500)

0

500

1 000

1 500Net cash/debt analysis

R m

illio

n2010 Results

(243)

(55)

(2 500)

(2 000)

(1 500)

(1 000)

( 500)

2009 Cashgenerated

fromoperations

Proceeds ondisposalof ships

andlocomotives

Workingscapital

movements

Interest/dividends/taxation

Capitalexpenditure

Short-termreceivablesadvanced

Forex/other 2010

R m

illio

n

26

Page 27: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Net debt/EBITDA

2.1

1.51.5

2.0

2.5

3.0

3.5

times

2010 Results

27

1.0 1.1

0.7 0.60.4

0.6

(0.1)

0.2

1.5

( 0.5)

0

0.5

1.0

1.5

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Net debt/EBITDA Maximum net debt/EBITDA benchmark

times

Page 28: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Return on ordinary shareholders’ funds

42.4

75.7 74.6

57.2

50.8 50.250

60

70

80

2010 Results

%Impacted by Ships under construction Developing terminal capacity

28

20.2

26.7

15.9 15.4

0

10

20

30

40

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Return on ordinary shareholders' funds Group's minimum benchmark

Page 29: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Strategic update

Page 30: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Current position

Global business

Valuable strategic assets/low cost fleet of ships

Experienced management and staff

Strong customer, supplier and banking relationships

Strong balance sheet

Focus on movement of:

– Drybulk cargo

– Bulk liquid cargo

– Containerised cargo

– Vehicles

Strategic update

30

Global business

Valuable strategic assets/low cost fleet of ships

Experienced management and staff

Strong customer, supplier and banking relationships

Strong balance sheet

Focus on movement of:

– Drybulk cargo

– Bulk liquid cargo

– Containerised cargo

– Vehicles

Page 31: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Key focus area

Shipping

Maintain a modern/low cost fleet

Further expansion of ship operating businesses

Maintain a high level of contract cover over drybulk fleet

Expand drybulk and tanker fleets at right time to achieve growth and optimal scale

Freight Services

Ports and Terminals

– Expansion and maximisation of existing operations

– Secure rail rolling stock to support operations

– Seek/develop major expansion opportunities

Logistics

– Complete turnaround of road transportation business following restructure

– Grow Ships Agency locally and internationally

Strategic update

Shipping

Maintain a modern/low cost fleet

Further expansion of ship operating businesses

Maintain a high level of contract cover over drybulk fleet

Expand drybulk and tanker fleets at right time to achieve growth and optimal scale

Freight Services

Ports and Terminals

– Expansion and maximisation of existing operations

– Secure rail rolling stock to support operations

– Seek/develop major expansion opportunities

Logistics

– Complete turnaround of road transportation business following restructure

– Grow Ships Agency locally and internationally

31

Page 32: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Key focus area (continued)Trading

Strategic supply chain projects

Improve operating margin/tonne

Grow volumes

Development of new markets

Financial Services

Asset management growth

Investment banking expansion

– Property private equity

– Conventional private equity

– Mezzanine debt fund

Growth in core banking business

Strategic update

Trading

Strategic supply chain projects

Improve operating margin/tonne

Grow volumes

Development of new markets

Financial Services

Asset management growth

Investment banking expansion

– Property private equity

– Conventional private equity

– Mezzanine debt fund

Growth in core banking business

32

Page 33: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Trading Shipping Freight Services Financial Services

Liquid bulk cargo

Marine Fuels Tanker ShippingBunker Tanker Shipping

FuelogicTank TerminalsClearing and ForwardingShips Agency

Drybulk cargo

Industrial Raw MaterialsAgricultural

Drybulk Shipping TerminalsRailRoadClearing and ForwardingStevedoringShips Agency

Trade FinanceInvoice Discounting

Business integrationStrategic update

Containerised cargo

SeafreightIntermodalWarehousingClearing and ForwardingContainer Leasing

Vehicles

Maputo Car TerminalRoad TransportationClearing and ForwardingStevedoringShips Agency

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Page 34: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Conclusion

Page 35: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Conclusion

Continued strong demand for commodities by China and India anticipated

Local and global economies expected to continue to improve

Weaker shipping markets expected but likely to create opportunities

Commodity demand likely to result in growth in ship operating volumes

Good long-term contract cover

Turnaround of road transportation business

Current expansion projects: Car Terminal/Coal Terminal (Maputo and Richards Bay)/Maputo Port

Earnings growth anticipated in Freight Services, Trading and Financial Services

Opportunities for future growth of group are being evaluated

Group results remain sensitive to the Rand/US Dollar exchange rate

Strategy will transform group from a shipping business to an integrated logistics business

Conclusion

Continued strong demand for commodities by China and India anticipated

Local and global economies expected to continue to improve

Weaker shipping markets expected but likely to create opportunities

Commodity demand likely to result in growth in ship operating volumes

Good long-term contract cover

Turnaround of road transportation business

Current expansion projects: Car Terminal/Coal Terminal (Maputo and Richards Bay)/Maputo Port

Earnings growth anticipated in Freight Services, Trading and Financial Services

Opportunities for future growth of group are being evaluated

Group results remain sensitive to the Rand/US Dollar exchange rate

Strategy will transform group from a shipping business to an integrated logistics business

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Page 36: RESULTS PRESENTATION Results presentation.pdfContent ð§2010 Business environment ð§Divisional reviews ð§2010 Results ð§Strategic update ð§Conclusion Additional information

Clarksons Research disclaimer:

The information supplied herewith is believed to be correct but the accuracy thereof is not guaranteed and the company andits employees cannot accept liability for loss suffered in consequence of reliance on the information provided. Provision ofthis data does not obviate the need to make further appropriate enquiries and inspections. The information is for the use ofthe recipient only and is not to be used in any document for the purposes of raising finance without the written permission ofClarkson Research Services Limited.

The statistical and graphical information contained under the heading is drawn from the Clarkson Research Services Limited(“CRSL”) database and other sources. CRSL has advised that:

(i) some information on CRSL’s database is derived from estimates or subjective judgments;

(ii) the information in the databases of other maritime data collection agencies may differ from the information inCRSL’s database;

(iii) whilst CRSL has taken reasonable care in the compilation of the statistical and graphical information and believes itto be accurate and correct, data compilation is subject to limited audit and validation procedures and mayaccordingly contain errors;

(iv) CRSL, its agents, officers and employees do not accept liability for any loss suffered in consequence of reliance onsuch information or in any other manner;

(v) the provision of such information does not obviate any need to make appropriate further enquiries;

(vi) the provision of such information is not an endorsement of any commercial policies and/or any conclusions byCRSL; and

(viii) shipping is a variable and cyclical business and any forecasting concerning it cannot be very accurate

Annexures

The information supplied herewith is believed to be correct but the accuracy thereof is not guaranteed and the company andits employees cannot accept liability for loss suffered in consequence of reliance on the information provided. Provision ofthis data does not obviate the need to make further appropriate enquiries and inspections. The information is for the use ofthe recipient only and is not to be used in any document for the purposes of raising finance without the written permission ofClarkson Research Services Limited.

The statistical and graphical information contained under the heading is drawn from the Clarkson Research Services Limited(“CRSL”) database and other sources. CRSL has advised that:

(i) some information on CRSL’s database is derived from estimates or subjective judgments;

(ii) the information in the databases of other maritime data collection agencies may differ from the information inCRSL’s database;

(iii) whilst CRSL has taken reasonable care in the compilation of the statistical and graphical information and believes itto be accurate and correct, data compilation is subject to limited audit and validation procedures and mayaccordingly contain errors;

(iv) CRSL, its agents, officers and employees do not accept liability for any loss suffered in consequence of reliance onsuch information or in any other manner;

(v) the provision of such information does not obviate any need to make appropriate further enquiries;

(vi) the provision of such information is not an endorsement of any commercial policies and/or any conclusions byCRSL; and

(viii) shipping is a variable and cyclical business and any forecasting concerning it cannot be very accurate

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