UK Investor roadshow August 2014

Transcription

1 UK Investor roadshow August 2014

2 About Barloworld

3 Current company structure 100% 100% 3

4 Performance September 2013 Revenue: R65.1 billion Operating Profit: R3.5 billion Total Assets: R40.7 billion Energy Consumption (GJ): GHG Emissions (tco 2 e): Water consumption (ML): 848 LTIFR: 1.02 CSI: R16.9m 4

5 Group revenue Automotive and Logistics Equipment Southern Africa Equipment Europe Equipment Russia Handling 5

6 Where we operate Operations in 24 countries; people Equipment Equipment 6

7 7 The divisions and brands

8 Financial overview

9 Income statement highlights (Rm) 1H 14 1H 13 % chg Continuing operations Revenue EBITDA Operating profit Fair value adjustments on financial instruments (108) 7 Net finance costs (525) (488) Profit before exceptional items Exceptional items (49) (34) Taxation (345) (304) Income from associates Net profit from continuing operations Profit from discontinued operations Net profit Basic earnings per share (cents) HEPS (cents) HEPS - continuing operations (cents)

10 Statement of financial position (Rm) 1H 14 FY 13 Non-current assets Current assets (excluding cash) Cash and cash equivalents Assets classified as held for sale 371 Total assets Interest of all shareholders Total debt Other liabilities Liabilities classified as held for sale 106 Total equity and liabilities Net debt

11 Summarised statement of cash flows (Rm) 1H 14 1H 13 Operating cash flows before working capital Increase in working capital (3 234) (2 405) Net investment in leasing assets and vehicle rental fleet (1 713) (1 108) Cash utilised in operations (2 022) (865) Other net cash flows (935) (725) Dividends paid (481) (358) Net cash applied to operating activities (3 438) (1 948) Net cash applied to investing activities (440) (963) Net cash outflow (3 878) (2 911) 11

12 Capital structure remains strong Group segmental gearing ratios Debt to equity (%) Trading Leasing Car Rental Total group Target range Gross Net 31 Mar Mar Sept Net debt of R11 198m (Mar 2013: R11 147m) EBITDA interest cover 5.2 x (Mar 2013: 4.8 x) Excludes R1.2bn from Australian sale received on 1 Apr

13 Debt maturity profile Interest bearing debt Redemption (Rm) Total Short-term Long-term South Africa Offshore Total debt March Total debt March Total debt September Ratio of long-term to short-term debt 63:37 (Sept :29) R1.5bn long-term bonds raised in in Dec 2013 R5.5bn unutilised bank facilities at Mar 2014 Cash and cash equivalents R1 810m (Sept 2013 R2 695m) 13

14 Business overview Equipment southern Africa

15 15 Southern Africa sales history

16 16 Southern Africa revenue profile March 2014

17 $ Billions Market outlook indicates mining turnaround in 2016 Mining Contract mining 17 Source: Internal analysis

18 Commodities snapshot Commodity RSA's rank 2013 RSA's output, t Pricing Price trend Share of commodity in RSA Mining Revenue, % Iron Ore USD/t 5% Copper USD/t 14% Diamonds mn n/a 17% 18

19 Commodities snapshot Commodity RSA's rank 2013 RSA's output, t Pricing Price trend Share of commodity in RSA Mining Revenue, % Uranium USD/lb 3% Platinum USD/oz 12% Coal USD/t 40% Gold USD/oz 3% 19

20 Major surface mining opportunities Coal Iron ore Uranium Diamonds Platinum Copper Orapa Cut 3 ( ) Jwaneng Cut 9 ( ) Cateruca - AEMR ( ) Lumwana-Barrick Gold (2018) Zambeze Rio Tinto (2017) Etango-Bannerman ( ) Moatize exp - Vale (2016) Exxaro Medupi Exp(2015) ResGen Boikarabelo (2015) Argent- Shanduka(2015) Waterberg Coal Sekoko (2017) Sedibelo PPM (2016) Kipanya BHP ( ) Belfast Project Exxaro ( ) Zonnebloem Xstrata (2017) Sishen - KIO ( ) Mogalakwena Amplats (2017) 20 Anglo New Largo (2017)

21 Major underground mining opportunities to grow sales Coal Iron ore Diamonds Copper Platinum ARM/Vale - Lubambe Glencore Mopani Vaalbult - Highwall Mine Kangra Kusiponga De Beers Venetia Anglo New Denmark Hebei iron/idc- Palabora (lift two) Continental- De Wittekrans Sasol Bossjespruit Ivanhoe Platinum Lonmin Boabab 21 PGM- Waterberg

22 $ Billions Market outlook indicates continued growth South Africa, Angola & Mozambique Driving Activity Heavy Construction Building Construction 22

23 23 Major infrastructure projects dependent on governments ability to execute and raise finance

24 Equipment Russia

25 25 Russia sales history

26 26 Russia revenue profile March 2014

27 Commodities overview Russia Oil Copper Coal Industry value US$448bn Industry value US$7bn Industry value US$33.3bn Gold Aluminium Platinum Industry value US$13.1bn Industry value US$8.8bn Industry value US$1.7bn Silver Nickel Diamond Industry value US$1.4bn Industry value US$4.9bn Industry value US$4.4bn 27

28 Mining greenfield projects Units Dollars $30m $330m $398m 28

29 Underground greenfield mining projects SDS Ugol Yuzhnaya Mine Lutuginskiy mine site: Coal reserves 40 m tonnes UGMK Region 1 Western and Eastern Siberia Region 2 Yakutia and Russia Far East Anadyr Depressed coal market delaying investment Baykaimskaya mine (underground) Coal reserves 68,7 m tonnes EVRAZ Holding Magadan Raspadskaya mine Coal reserves 451 m tonnes Raspadskaya Koksovaya mine Coal reserves 101 m tonnes SUEK JSC Omsk Tomsk Novosibirsk Achinsk Mirniy Yakutsk Nerungry Petropavlovsk- Kamchatskiy MC Kolmar Nerungryugol JSC A.D. Rubana mine Coal reserves 40 m tonnes Krasnoyarsk Kemerovo Barnaul Abakan Chita Inaglinskaya Mine Coal reserves 76,8 m tonnes Denisovskaya Mine Coal reserves 64,5 m tonnes MC Sibirskaya (Sibuglemet) EVRAZ Holding Uvalnaya mine Coal reserves 342 m tonnes Mezhegey Ugol Coal reserves 700 m tonnes 29

30 Construction/oil and gas opportunity Railways Oil & Gas projects Kuyumba Tayshet oil trunk pipeline implem. period Length 704 km Cost $3 bn Region 1 Western and Eastern Siberia Region 2 Yakutia and Russia Far East Anadyr Power of Siberia gas pipeline implem. period Length over 2700 km Cost over $13,6 bn Severo-Sibirskaya railroad Magadan 2 000km (Nizhnevartovsk to Ust-Ilimsk (BAM)) Stage: start 2016 US$4bn Mirniy Yakutsk Petropavlovsk- Kamchatskiy Omsk Tomsk Novosibirsk Achinsk Krasnoyarsk Kemerovo Nerungry Ust-Kut GPP 2,3 bn m3 of natural gas to be processed (INK) Commissioning 2014 Kyzyl-Kuragino railroad 411,7 km Contractor chosen Mostovik US$5,57bn Barnaul Abakan Chita BAM railway mega project (second spur of Baikal-Amur Mainline) Stage: start in 2014 $15 bn 30

31 Equipment Iberia

32 32 Iberia sales history

33 33 Iberia revenue profile March 2014

34 34 Machine Industry trend and outlook (Iberia)

35 Global Power Systems

36 Business definition Provision of power generating solutions, including engines and other complementary equipment, to fulfill our customer needs in a wide range of applications: Electric Power Petroleum Marine Industrial/ Rail Ensuring excellence in after sales product support, including parts and service, through many different channels 36

37 Regional drivers Southern Africa Electricity shortfall Large-scale infrastructure development Mining and offshore exploration and production Russia Iberia Ukraine crisis - uncertainty RUS Government planning to increase generating capacity by 50 GWT by 2020 Old electric grid and cogeneration plants Slow recovery from European debt crisis Removal of Gas/ cogeneration subsidies Shipbuilding is rebounding 37

38 Electric power analysis and drivers Electric Power Global Global Energy Demand Growth Continued population & GDP growth drive global energy demand increase Energy Infrastructure shortfall Ageing infrastructure & investment shortfalls Concerns on energy security Renewables gaining traction 38 Relevance of green issues Carbon trading, green legislation etc. C02 emissions reduction Gas and CHP potential Driven by gas availability & emissions Growth in mining power Africa, Russia

39 Customer segments Petroleum Global Gas Compression Primary Gathering Storage Well Head Gas Processing Plant Transmission Station Well Service Well Fracturing Workover Cementing WS Pumps Nitrogen Drilling Land Power Module Jackup Rig Mud Pumps Semisubmersible Rig Drillship Emergency Genset Production FPSO Fire Pumps Downhole Pumps Refinery Camp Power Rental Coal Bed Methane Offshore Platform Crude Pumping Air Compressor 39

40 Current marine business PRIME SALES AFTER SALES Marine Global Fishing Tug&Salvage Fishing Offshore Military Paramilitary Fishing Offshore Fishing Offshore/T&S Fishing Offshore Ferry Fishing 40

41 Systems integration Marine Global 41

42 Automotive and Logistics

43 Automotive and Logistics Division Strategic positioning Customers Barloworld Automotive (Automotive Business model) Barloworld Logistics Car Rental Fleet Services Digital Disposal Solutions Motor Retail Southern Africa Motor Retail Australia Freight Mangmt and Services Supply Chain Mangmt Supply Chain Mangmt Transport Solutions Communication, HR, IT, Legal, Finance, Sustainable Development, Strategy, Empowerment and Transformation, Risk Management, Business Development and Sales, Governance, Ethics and Compliance Inter-business unit synergies and cost efficiencies Apply Collective Wisdom Leveraging Automotive infrastructure to achieve critical mass for growth Retain strategic focus on each business unit 43

44 Division overview Enhance return on equity Continued cash focus Targeted capital allocation Growing market share Optimising vehicle fleets (utilisation) Managing working capital levels Improving asset turn Expense management Controlling interest costs Implementing Logistics growth strategy Targeted growth opportunities across all units Exceeding customer expectations 44

45 Sense of scale General Information Employees Countries 16 Automotive Principals Avis, Audi, BMW, Ford, General Motors, Mazda, Mercedes-Benz, Toyota, Volkswagen Car Rental locations >190 Wholly owned Motor Retail dealerships (SnA & Oz) 40 Key Indicators FY Sep 12 FY Sep 13 Rental Days 5.71m 6.06m New & Used retail units sold Total vehicles under management New vehicles sold per dealership per month incl. Oz DTS km s travelled FY m SAT tons shipped FY t 45

46 % Growth Car Rental Improved rental days despite competitive market Static revenue per day Continued focus on operating costs Fleet utilisation remains well controlled Continued solid used vehicle profit contribution Sustained customer satisfaction above 90% Leading Indicators Jul '14 YTD Sep '13 YTD Rental Days Revenue per Day Fleet Utilisation Fleet Size 46

47 Motor Retail 47 Source: Dr N. Bruton

48 % Growth Motor Retail Southern Africa Fewer, Bigger, Better Strategy continues 75 new vehicles sold per dealership per month 1H 14 (Sep 13: 75) Appropriate dealership footprint Focused brand strategy aligned to overall Automotive business model presents some targeted growth Improved operating margin through cost containment and margin expansion Continued strong finance and insurance contribution Leading Indicators Jul'14 YTD Sep'13 YTD New Units Service Hours Parts Revenue F & I Net Profit 48

49 % Growth Fleet Services Pleasing performance in low interest rate environment Finance fleet growth slows post large contract roll-outs Strong growth in fleets under maintenance Continued strong used vehicle profits COJ settled and performing well Awaiting adjudication on further tenders Investigating further African growth opportunities 30 Leading Indicators Jul '14 YTD Sep '13 YTD Maintenance Fleet Finance Fleet Total Fleet 49

50 Logistics Good turnaround and positioned for growth Manline contributing strongly to the newly formed Barloworld Transport Solutions from 1 Feb 2013 Niche acquisition effective 5 Jun 2013, rebranded Manline Mega, is well positioned in the abnormal load transport market with further growth potential Successfully renewed all expiring contracts in Supply Chain Management and Dedicated Transport Awarded Pioneer Bakery fleet 4PL contract International operations continue to face difficult trading conditions Restructured Spanish operations Exited Far East business effective 1 Nov

51 THANK YOU