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2009 INTERIM RESULTS PRESENTATION. CONTENT. BUSINESS ENVIRONMENT AND current focus. BUSINESS ENVIRONMENT. CURRENT FOCUS. Interim results. SEGMENTAL CONTRIBUTION. HEADLINE EARNINGS. DIVIDENDS. PROFIT FROM OWNED AND LONG-TERM CHARTERED SHIPS. INCOME STATEMENT.
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BALANCE SHEET Market value adjustment in respect of owned and chartered ships = R1,3 billion (not included above)
FLEET OVERVIEW (* owned fleet 8.5; chartered fleet 28) (** owned fleet 25; chartered fleet 19 but can reduce by 11 ships if markets justify)
CONTRACT COVER Note: variable volume contracts have been included at forecast volumes
SHIPPING Outlook: • Improving commodity demand • Large order book expected to impact freight rates • Contract cover provides protection • Handysize sector well balanced • Key factors: • worldwide recovery • supplyside correction Strategy: • Maintain strong balance sheet and liquidity • Maintain high level of contract cover • Continued expansion of ship operating activities • Take advantage of acquisition opportunities at the right time
TRADING Outlook: • Improvement in industrial commodity demand expected, but more challenging trading conditions anticipated in H2 for Agricultural and Marine Fuels Strategy: • Conservatively extend trading platform • Source and invest in new origination businesses • Enhance supply chain solutions to customers • Continued focus on exposure to counterparty and market risks
FREIGHT SERVICES Outlook: • Ports and Terminals expecting increased volumes from demand and added capacity • Improved trading conditions expected for Intermodal and Ships Agencies • Benefits expected from increased market share/restructuring of Logistics • Seafreight volumes expected to remain under pressure • Strong balance sheet and cash resources to fund expansion Strategy: • Grow ports and terminal capacity • Expand related logistical support – road/rail • Seek new port/terminal opportunities • Continue focus on operational efficiency
FINANCIAL SERVICES Outlook: • Macro environment is expected to remain challenging for the remainder of the year andinto 2010 Strategy: • Grow assets under management and deposits • Continue conservative liquidity, credit and asset management policies • Focus on fee income opportunities/good quality lending • Pursue organic growth in all business units as well as take advantage of expansion opportunities that will arise in these markets
CONCLUSION • Strong balance sheet • Good liquidity • Low-cost fleet with options to extend/purchase • Solid contracts with reliable counterparties • Good management team • Well established Trading business • Valuable strategic assets in Ports and Terminals • Financial Services well positioned to grow in current market • From this base we are positioned for substantial growth opportunities, particularly in Shipping, Ports and Terminals