Remgro Limited · JSE:REM
Remgro — H1 2007 Earnings Presentation
21 slides from Remgro's earnings presentation, Nov 28, 2006
Slide 1: Results Presentation
Results Presentation For the six months ended 30 September 2006
Slide 2: Financial highlights
Financial highlights September September % change Final 2006 2005 Mar 2006 Headline earnings (R’m) 3 232 2 372 36.3 5 084 Headline earnings excl non-recurring BEE (“NR BEE”) costs (R’m) 3 232 2 691 20.1 5 464 HEPS (cents) 678.1 489.2 38.6 1 052.3 HEPS – excl NR BEE costs (cents) 678.1 555.0 22.2 1 1
Slide 3: Corporate activity since March 2006
Corporate activity since March 2006 Share repurchases • Remgro repurchased − 6 622 561 shares at an average price of R142.23 per share − for a total amount of R941.9 million during the six months ended 30 September 2006 − currently 8 002 196 (1.8%) shares are held as treasury shares (excluding share
Slide 4: Subsequent to 30 September 2006
Subsequent to 30 September 2006 Kagiso Trust Investments (“KTI”) and Kagiso Infrastructure Empowerment Fund (“KIEF”) • Remgro has entered into agreements with KTI and KIEF in terms of which it has committed funds amounting to R350 million to KIEF • KIEF has a target size of R650 million and aims to
Slide 5: Segmental headline earnings performance
Segmental headline earnings performance (excluding NR BEE costs) Contributions from: Industrial 36.8% Mining (1.3)% Tobacco 17.3% Financial (1.9)% September 2006 September 2005 Corporate Corporate 5.3% 1.1% Mining Mining 2.9% 2.4% Industrial Industrial 19.8% 22.6% Tobacco Tobacco 47.0% 45.9% Financi
Slide 6: Summary of underlying performance
Summary of underlying performance R’million September September % change 2006 2005 Tobacco interests 1 483 1 264 17.3 Financial services 772 787 (1.9) Industrial interests 729 533 36.8 Mining interests 76 77 (1.3) Corporate 172 30 473.3 Headline earnings (excl NR BEE) 3 232 2 691 20.1 Portion of NR
Slide 7: Tobacco
Tobacco Headline earnings % Intrinsic value % R’million Sep’06 Sep’05 change Sep’06 Mar’06 change R&R / BAT 1 483 1 264 17.3 47 527 34 065 39.5 Avg ZAR:£ rate 12.60 11.72 7.5 Highlights (1) Currency movements had a greater impact on the earnings than a year ago (favourable currency impact of R104 mi
Slide 8: Tobacco (cont’d)
Tobacco (cont’d) £’million Sept ‘06 Sept ‘05 % change Attributable profit of BAT before capital and non- recurring items 1 100 1 011 8.8 Remgro’s 10.4% share thereof 114 103 Portion of R&R’s non-BAT income 4 5 118 108 9.3 ZAR: £ translation rate 12.60 11.72 Remgro’s tobacco headline earnings (R’mill
Slide 9: Financial
Financial Headline earnings % Intrinsic value % (excl NR BEE costs) R’million Sep’06 Sep’05 change Sep’06 Mar’06 change FirstRand 415 357 16.3 8 516 9 623 (11.5) RMBH 357 307 16.3 7 401 7 990 (7.4) ABSA - 123 Nm - - - Other - - - - 1 Nm Total 772 787 (1.9) 15 917 17 614 (9.6) Highlights (1) Remgro’s
Slide 10: Industrial
Industrial Headline earnings % Intrinsic value % (excl NR BEE) R’million Sept’06 Sept’05 change Sept’06 Mar’06 change Medi-Clinic 131 143 (8.4) 3 488 3 531 (1.2) Distell 74 57 29.8 2 332 2 112 10.4 Total SA 116 83 39.8 2 248 1 889 19.0 UBR 92 53 73.6 2 235 1 984 12.7 Rainbow 107 95 12.6 1 834 1 642
Slide 11: Industrial (cont’d)
Industrial (cont’d) Improved performances were mainly due to: TSB • The results were positively affected by the inclusion of the income (R14 million) from its 27% interest in Royal Swazi Sugar (since 1 October 2005) • TSB’s sugar production, for the season, is expected to be 440 600 tons (2005: 456
Slide 12: Industrial (cont’d)
Industrial (cont’d) Total SA • The higher earnings were mainly due to a higher market share in the retail business and increased refining margins • The Natref refinery performed well, although production capacity decreased by approximately 14% following the introduction of new fuel specifications on
Slide 13: Industrial (cont’d)
Industrial (cont’d) Rainbow and Distell • Both reported solid earnings growth Nampak • Nampak’s contribution to headline earnings increased mainly due to NR BEE costs accounted for in the previous reporting period, as well as improved trading results for the six months ended 30 September 2006 Medi-C
Slide 14: Mining
Mining Headline earnings % Intrinsic value % R’million Sep’06 Sep’05 change Sep’06 Mar’06 change Implats 73 60 21.7 4 287 3 886 10.3 Trans Hex 3 16 (81.3) 310 363 (14.6) Gencor - 1 Nm - 8 Nm Total 76 77 (1.3) 4 597 4 257 8.0 Highlights (1) Dividends received from Implats amounted to R73 million (2)
Slide 15: Corporate finance & other
Corporate finance & other Headline earnings R’million Sept’06 Sept’05 Treasury (1) 196 53 Net corporate costs (24) (23) Total 172 30 Intrinsic value R’million Sept’06 Mar’06 Sundry (liabilities) / assets (114) (401) (1) The increase can be attributed mainly to higher interest rates as well as higher
Slide 16: Cash movement at the centre
R million 0 -3,000 -2,000 -1,000 BAT dividend 1,000 923 Other 508 dividends Shareholders' 89 loans repaid Investments 37 realised Special dividend paid (1 931) Ordinary dividend paid (1 094) Cash movement at the centre Share buy- backs (1 015) Other 447 Cash 16 movement (2 036)
Slide 17: Total cash
Total cash At 30 September 2006 R’million Local Offshore Total Per consolidated balance sheet 658 3 450 4 108 Less: Cash from other operating subsidiaries (350) - (350) Cash at the centre 308 3 450 3 758 Attributable share of R&R’s cash - 2 616 2 616 Available cash 308 6 066 6 374 Offshore cash at t
Slide 18: Remgro’s intrinsic value
Remgro’s intrinsic value R’million Sept ‘06 March ‘06 %change Tobacco interests in GBP (£’m) 3 275 3 201 2.3 Tobacco interests 47 527 34 065 39.5 Financial services 15 917 17 614 (9.6) Industrial interests 17 676 15 986 10.6 Mining interests 4 597 4 257 8.0 Other 387 360 7.5 CGT payable - (344) Nm D
Slide 19: Intrinsic value vs share price
Intrinsic value vs share price 20000 19000 18000 Discount at 17000 28/11/06:15.9% Discount at 30/9/06:16.8% 16000 Cents per share 15000 14000 Discount at 31/3/06: 14.3% 13000 12000 11000 10000 2005/09/30 2005/10/14 2005/10/28 2005/11/11 2005/11/25 2005/12/09 2005/12/23 2006/01/06 2006/01/20 2006/02/
Slide 20: Share price performance
Share price performance 400 350 300 250 200 150 100 50 29/09/2000 29/12/2000 30/03/2001 29/06/2001 28/09/2001 31/12/2001 28/03/2002 28/06/2002 30/09/2002 31/12/2002 31/03/2003 30/06/2003 30/09/2003 31/12/2003 31/03/2004 30/06/2004 30/09/2004 31/12/2004 31/03/2005 30/06/2005 30/09/2005 29/12/2005 31/
Slide 21: Questions
Questions 21