section 1 results at a glance - omnia...
TRANSCRIPT
Omnia’s business model is focused on value creation and has increased profitability for 2015.
SECTION 1
RESULTS AT A GLANCE
2
FINANCIAL RESULTS AND HIGHLIGHTS
Revenue at an all time high of
R16.8 billion
Operating profit up
4%R1 476 million
Headline earnings per share up 2.6%
1 465 CENTS PER SHARE
Debt: equity ratio
12.3%
+9 400CUSTOMERS
COUNTRIES
4 027 employees
21
up 3.5% year-on-year
Operating profit margin at
8.8%
SECTION 1
3Omnia Holdings Limited Integrated annual report 2015
FINANCIAL RESULTS AND HIGHLIGHTS CONTINUED
31 March2015
%Change
31 March2014
in Rm
Revenue 16 835 4 16 259
EBITDA 1 829 7 1 711
Operating profit 1 476 4 1 416
Profit for the year 934 (6) 992
Profit attributable to owners of Omnia Holdings Limited 939 (6) 996
Cash generated from operations 1 846 4 1 769
Cash available from operating activities 466 (65) 1 315
Capital expenditure 587 (31) 855
Equity 6 642 12 5 912
Net debt 820 100 335
Market capitalisation 11 639 (18) 14 193
in cents per share
Basic earnings 1 402 (6) 1 496
Diluted basic earnings 1 308 (3) 1 344
Headline earnings 1 465 3 1 428
Diluted headline earnings 1 366 6 1 283
in respect of the previous financial year
– Final dividend paid 290 7 270
in respect of the current financial year
– Interim dividend paid 190 3 185
– Final dividend declared subsequent to year end 300 3 290
Total dividend 490 3 475
Net asset value per share 9 844 11 8 867
Ratios in %
Net debt to equity 12 6
Return on average equity 15 18
REVENUE AND OPERATING PROFIT
2011
Reve
nue
(Rbn
)
Oper
atin
g pr
ofit
(Rm
)
20132012 2014 20150
6
12
18
Revenue Operating profit
0
400
800
1 200
1 600
9.3
10.8
13.416.3 16.8
686
881
1 2311 416
1 476
4
2015 2014
Shares
Shares in issue at year end 1 67 471 010 66 677 592
Market capitalisation at year end R million 11 639 14 193
Market value per share
– At year end R 172.50 211.05
– High during the year R 242.00 221.76
– Low during the year R 167.00 153.62
Value of shares traded during the year R million 6 712 5 914
Volume of shares traded during the year million 33 31
Share volumes traded as percentage of total shares in issue % 48.8 45.7
Key Ratios
Operating margin % 8.8 8.7
Profit before tax (percentage of revenue) % 7.9 8.2
Profit after tax (percentage of revenue) % 5.5 6.1
Effective tax rate % 29.8 25.4
Return on average equity % 14.9 18.3
Gearing ratio % 12.3 5.7
Current ratio 1.6 1.5
Net debt: EBITDA cover 0.4 0.2
EBITDA finance cost cover 12.6 19.7
Dividend cover 2.9 3.1
Operating profit margin by division
Agriculture (FY2015 target of 8%-10%) % 9.0 6.5
Mining (FY2015 target of 15%-16%) % 13.5 15.2
Chemicals (FY2015 target of 4.5%-5.5%) % 2.4 3.8
1 excluding treasury shares of 822 342 (2014 : 572 233)
1112131415
PROFIT AFTER TAX (Rm)
451629
880992
934
1112131415
EBITDA (Rm)
8561 070
1 5751 711
1 829
REVENUE BY DIVISION
Rm
• Agriculture 7 287• Mining 5 351• Chemicals 4 197
OPERATING PROFIT BY DIVISION
Rm
• Agriculture 656• Mining 720• Chemicals 100
SECTION 1
5Omnia Holdings Limited Integrated annual report 2015
ABOUT US
Omnia Holdings Limited is a diversified Group with specialised services and solutions for the agricultural, mining and chemicals industries. As a Group, Omnia creates customer wealth by leveraging knowledge.
The Group differentiates itself from other commodity chemical providers by adding value at every stage of the supply and service chain through technological innovation and by deploying our intellectual capital. The sustainability of the business model is strengthened based on targeted backward integration through the installation of technologically advanced plants to manufacture core materials such as nitric acid and explosives emulsions. In addition to securing sources of supply, this enables us to improve operational efficiencies throughout the product development and production cycle.
Omnia, which has its roots in the fertilizer and agricultural industry, has built an in-depth understanding not only of its core markets in South Africa, but also in the fundamental industries of mining and agriculture in Africa. Based in Johannesburg, South Africa and with operations in 16 countries in Africa, including South Africa, and 6 countries outside Africa, Omnia has more than six decades of experience in the business. Additionally, Omnia continues to grow its global footprint, with business units in Australasia, Brazil and Mauritius and clients in other regions such as Europe, South America and South East Asia.
Omnia provides customised, knowledge-based solutions through our Agriculture, Mining, and Chemicals divisions. Our divisions include Omnia Fertilizer, BME, Protea Mining Chemicals and Protea Chemicals, all niche businesses that operate with a common objective – to enhance our customers’ businesses through research, development and knowledge sharing that will equip the customer to increase yields and by extension, profit margins.
The Group’s proven business model makes it a market leader in chemical services. Omnia continues to grow and prosper, offering extraordinary value to its customers by tailoring its solutions to their business needs through product and service innovation, with the expert application thereof.
GROUP PROFILE
Omnia is distinguished by its culture of transparency and integrity. Our prosperity has taught us that assisting others, assists us.
EXCELLENCE TRUST INNOVATION INTEGRITY COLLABORATION KNOWLEDGE
Strong distinctive culture (feet in the past but eyes to the future)
Combine values of family business with strength of professionally
managed public company (best of
both worlds)
Robust spirit of enterprise (thinking
on our feet)
Reputation for highest levels of integrity (living our values)
Working closely with our customers
(adding value)
Driven by values
OUR VALUES
+ + + + =
“Omnia provides customised, knowledge-based solutions through our Agriculture, Mining, and Chemicals divisions.”
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OUR VISIONCreating customer wealth by leveraging knowledge
Omnia is committed to playing a role in the development and growth of the agricultural, mining and chemical sectors. We have years of experience and extensive knowledge which we integrate into our services to facilitate the growth of the sectors forming our client base. We strive to help these sectors grow as we have grown and prospered through long term sustainable relationships with customers.
1SECTION
7Omnia Holdings Limited Integrated annual report 2015
SERVICE THROUGH
KNOWLEDGE
PRODUCTSDIFFERENTIATED
International strategyValue
COMMODITIES
BUSINESS MODEL
OUR VALUE PROPOSITION
We differentiate ourselves from other commodity chemical suppliers by applying our intellectual capital and technologies to all key points along our supply and service chains. This enables Omnia to create value throughout by tailoring our products and services to the specific and changing needs of our customers.
Our business model has been tried and tested over many years, and continues to be fine-tuned as our markets and customers evolve. We sustain and grow our business by continuously enhancing the value we offer to our local and international customers through product innovation, growing our intellectual capital and working to further raise our already exceptional service levels. A continuous feedback loop with our customers at all points of engagement keeps our business model on track.
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OUTCOMES:• Efficient water use• Secure food supply• Increased agricultural yields
STRATEGIC RELATIONSHIPS:• Farmers• Government• Industry bodies
R191m R234m R1 455m R1 435m R322m
To providers of finance
To govern-ments
Reinvested On salaries To providers of capital
R3 693mINPUTS:VALUE DISTRIBUTED:
OUTPUTS: • Fertilizer• Consulting• Nutriology
AGRICULTUREOMNIA GROUPA
MC
A
MC
A
MC
A
MC
EMPLOYEES
1 669
41.4% 32.8% 25.8%EMPLOYEES
1 320EMPLOYEES
1 038EMPLOYEES
4 027
100%
REVENUE REVENUE REVENUE
R7 287m
43.3%R5 351m
31.8%R4 197m
24.9%
REVENUE
R16 835m
100%
R ?R ?R ?R ?R ?R ?Funding Electricity PlantsWater Knowledge Transport Brand
reputationWorkforce
KNOWLEDGE AND PRODUCTS MEET TO MAKE A DIFFERENCE
OPERATING PROFIT
R1 476m100% OPERATING PROFIT
R656m44.4%OPERATING PROFIT
R720m48.8%OPERATING PROFIT
R100m
16
6.8%
9Omnia Holdings Limited Integrated annual report 2015
R ? R ?Funding Funding
OUTCOMES:• Treated drinking water• Renewable energy
OUTCOMES:• Enhanced safety• Enhanced productivity
STRATEGIC RELATIONSHIPS:• Suppliers• Industrial sector• CAIA
STRATEGIC RELATIONSHIPS:• Mining sector in Africa• Government and regulatory bodies
INPUTS:INPUTS:
OUTPUTS: • 10 000 products
OUTPUTS: • Bulk explosives• Consulting• Mining accessories
MINING CHEMICALSA
MC
A
MC
A
MC
A
MC
A
MC
A
MC
A
MC
A
MC
EMPLOYEES
1 669
41.4% 32.8% 25.8%EMPLOYEES
1 320EMPLOYEES
1 038EMPLOYEES
1 669
41.4% 32.8% 25.8%EMPLOYEES
1 320EMPLOYEES
1 038
REVENUE REVENUE REVENUE
R7 287m
43.3%R5 351m
31.8%R4 197m
24.9%
REVENUE REVENUE REVENUE
R7 287m
43.3%R5 351m
31.8%R4 197m
24.9%
OPERATING PROFIT
R656m44.4%OPERATING PROFIT
R720m48.8%OPERATING PROFIT
R100m
16
6.8%OPERATING PROFIT
R656m44.4%OPERATING PROFIT
R720m48.8%OPERATING PROFIT
R100m
16
6.8%
R ?R ?R ?PlantsKnowledge Transport Brand
reputationWorkforceR ?R ?R ?
PlantsKnowledge Transport Brand reputation
Workforce
SECTION 1
10Omnia Holdings Limited Integrated annual report 2015
A BUSINESS MODEL FOR LONG-TERM SUSTAINABILITY
Omnia has a balanced presence in sectors that are essential to the sustainable use of the world’s finite resources, and will play a key role in sustaining Africa’s future development. We will continue to develop and leverage our intellectual property to add focused value to the agriculture, mining and chemicals markets in Africa and abroad.
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