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Lonrho One2One Investor Presentation - 28th September 2011

Lonrho One2One Investor Presentation - 28th September 2011

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Investing in the growth of Africa


a PAN AFRICAN COMPANY 1<br />

• 100 year legacy of investing in Africa<br />

• Significant BRAND value<br />

• Sole focus is Sub Saharan Africa<br />

• 17 Countries<br />

• 5 Market sectors<br />

• Mitigating the risks of an emerging market<br />

Investing in the growth of Africa<br />

Countries where <strong>Lonrho</strong> operates


Corporate structure 2<br />

LAH<br />

Rollex<br />

Luba Freeport Fly 540<br />

easyHotels<br />

<strong>Lonrho</strong> IT<br />

Services<br />

Oceanfresh<br />

Kwikbuild<br />

<strong>Lonrho</strong> Transport<br />

Mozambique<br />

Maputo<br />

<strong>Lonrho</strong> Water<br />

John Deere<br />

DRC<br />

Lubumbashi<br />

AFEX<br />

Komatsu<br />

Gabon<br />

Libreville<br />

<strong>Lonrho</strong> Integrated<br />

Support Services<br />

<strong>Lonrho</strong> Logistics<br />

PCA<br />

Hotel<br />

Management<br />

Contracts<br />

Fish On Line<br />

Investing in the growth of Africa


African Economic Growth<br />

3<br />

<strong>Lonrho</strong> focuses on supporting three industrial sectors<br />

across Africa that are driving African growth and<br />

increasingly becoming globally important:<br />

AGRICULTURE<br />

60% of the world’s<br />

uncultivated land is in<br />

Africa, 10% of which is<br />

productive.<br />

OIL & GAS<br />

It is estimated that a<br />

significant percentage of<br />

the world’s oil reserves are<br />

in Africa.<br />

MINERALS<br />

Africa is a primary source<br />

of the minerals required to<br />

meet global demand.<br />

combined with the growing domestic market being<br />

generated by the one billion people in Africa, and<br />

increasing domestic consumer expenditure.<br />

Investing in the growth of Africa


Investing in the growth of Africa<br />

Vertically integrating agricultural production<br />

and processing to provide the ability for African<br />

produce to reach consumers within Africa and<br />

internationally.


<strong>Lonrho</strong> Agribusiness<br />

Agribusiness<br />

5<br />

Grows, sources, packs and delivers<br />

fresh fruit, fish, meat and vegetables<br />

from Africa to retailers in Africa and<br />

around the world, such as:<br />

Marks & Spencer<br />

Tesco<br />

Sainsbury<br />

Carrefour<br />

Spinneys<br />

World Flowers<br />

Univeg<br />

Shoprite<br />

Spar<br />

Pic n’ Pay<br />

Makro<br />

Walmart<br />

Costco<br />

Sysco<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Agribusiness<br />

LONRHO AGRICULTURE<br />

6<br />

A vertically integrated cold chain<br />

logistics network taking produce<br />

from the field to the global<br />

supermarket shelf by air and sea.<br />

10,041m 2 chilled agri-processing, freezing<br />

and packing facility airside at Johannesburg<br />

International Airport<br />

New agri-processing facilities being developed<br />

across Southern Africa<br />

Delivers to global markets by sea and air freight<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Agribusiness<br />

oceanfresh seafoods<br />

7<br />

Oceanfresh is a vertically integrated seafood<br />

production and processing company.<br />

Oceanfresh has its primary operations in Mozambique but also<br />

operates around Southern Africa and has sales offices in South<br />

America, the USA and Europe.<br />

The implementation of SASSI (WWF Sponsored) sustainable fishing<br />

principles is a core fundamental of the Oceanfresh business model,<br />

which has been very well received by consumers and retailers.<br />

Oceanfresh produces both its own branded range of products as<br />

well as providing in-house brands for major retail chains.<br />

A significant supplier into the South African market,<br />

export markets include:<br />

• USA<br />

• UK<br />

• Europe<br />

• Far East<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Agribusiness<br />

john deere<br />

8<br />

John Deere is one of the<br />

world’s leading suppliers<br />

of agricultural equipment.<br />

<strong>Lonrho</strong> is the John Deere tractor and<br />

agricultural equipment distributor for<br />

• Angola<br />

• Tanzania<br />

• Mozambique<br />

<strong>Lonrho</strong> is the Komatsu distributor<br />

for Mozambique<br />

<strong>Lonrho</strong>’s John Deere businesses focus<br />

on providing training, support and<br />

maintenance to build long term brand<br />

awareness and loyalty and care for<br />

John Deere products.<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Agribusiness<br />

lonrho logistics<br />

9<br />

Committed to offering<br />

innovative, highly specialized<br />

and technologically advanced<br />

logistic and freight forwarding<br />

solutions within the supply<br />

chain.<br />

In excess of 50 years of cold chain<br />

management experience and a member of<br />

IATA (International Air Transport Association)<br />

with IATA qualified staff.<br />

The company is strategically situated with<br />

airport-based office/warehouses in South<br />

Africa - Johannesburg, Port Elizabeth, George<br />

and Cape Town.<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Agribusiness<br />

fish on line<br />

10<br />

Fish On Line (Pty) Ltd. is<br />

a seafood trading company<br />

registered in the Republic of South<br />

Africa, offering a wide range of<br />

seafood products and services.<br />

Importing of Seafood, Seafood Warehousing &<br />

Distribution.<br />

Registered importers & exporters, Fish On Line<br />

adheres to standards as set out by the South African<br />

Department of Trade and Industry as well as the<br />

Health Authorities.<br />

Fish On Lines’ company purchase platform includes:<br />

• South America<br />

• Africa<br />

• Europe<br />

• Middle and Far East<br />

Investing in the growth of Africa


Investing in the growth of Africa<br />

<strong>Lonrho</strong> believes one of the significant constraints<br />

to development in Africa remains the lack of<br />

adequate physical infrastructure. This has a direct<br />

effect on the rate of economic development that<br />

can be achieved and is fundamental to sustainable<br />

economic growth. <strong>Lonrho</strong>’s strategy of investing<br />

in infrastructure can assist regional development,<br />

while adding shareholder value.


<strong>Lonrho</strong> Infrastructure<br />

OIL SERVICE PORTS<br />

12<br />

Efficient centres for logistics<br />

of the oil and gas industry.<br />

LUBA FREEPORT: EQUATORIAL GUINEA<br />

• Africa estimated to hold a significant<br />

percentage of global oil and gas reserves<br />

• ‘One stop shop’ for the oil industry<br />

• Unique natural deepwater bay<br />

• Established working Freeport<br />

• 290m of deepwater quay<br />

Nigeria<br />

Niger Delta Basin<br />

Luba<br />

Freeport<br />

Zafiro<br />

Rio del rey<br />

Basin<br />

E Q U A T O R I A L G U<br />

Alba<br />

I N<br />

Bioko<br />

E A<br />

Cameroon<br />

Douala<br />

Basin<br />

Kribi-Campo<br />

Basin<br />

GHANA OIL SERVICES PORT<br />

• MOU with Government signed August <strong>2011</strong><br />

• Sole development rights<br />

• 2,000 acre development<br />

Rio Muni<br />

Basin<br />

Ceiba<br />

Rio Muni<br />

Gabon<br />

Further oil ports under negotiation across<br />

Africa to support the growth in the oil industry.<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Infrastructure<br />

luba freeport<br />

13<br />

Existing clients:<br />

Amerada Hess<br />

Baker Hughes<br />

CNOOC<br />

ExxonMobil<br />

LOTEG<br />

Marathon<br />

MI Fluids<br />

NALCO<br />

Noble Energy<br />

Ophir Energy<br />

Pacific Tide Water<br />

ROC Oil<br />

SBM<br />

Schlumberger<br />

Swire<br />

Technip<br />

Tenaris<br />

TLC<br />

VANCO<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Infrastructure<br />

kwikbuild<br />

14<br />

KwikBuild manufactures and supplies<br />

prefabricated buildings across Africa,<br />

suitable for worker’s accommodation,<br />

offices, clinics, medical facilities and<br />

low cost housing.<br />

• Rapid installation<br />

• Inexpensive<br />

• Temporary or permanent<br />

• Guaranteed quality<br />

• Pre-fabricated<br />

• Non skilled installation<br />

• Insulated<br />

• Energy efficient<br />

Investing in the growth of Africa<br />

Clients include:<br />

Sonangol<br />

Chevron<br />

South Africa Police Services<br />

IDT Cluster Schools Department of Education<br />

First Quantum Minerals Ltd<br />

Department of Public Works SA<br />

Aurecon South Africa<br />

African Barrick Ltd<br />

The Elilox (Pty) Ltd<br />

Walter Sisulu University<br />

Rethabile trading<br />

B & L Quantity Surveyors<br />

National Health Laboratory Services<br />

Gene Louw Primary School<br />

CVS Construction<br />

Transnet Ltd


Improved transportation systems are necessary<br />

for economic development and to increase<br />

Africa’s regional and international trade.<br />

<strong>Lonrho</strong>’s pan-African regional aviation<br />

business, Fly540, is developing an<br />

international standard, punctual and reliable<br />

network to connect Africa.<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Transportation<br />

fly 540<br />

16<br />

Fly540 is a regional airline<br />

connecting Africa, accessing two<br />

core markets:<br />

1. Connecting Africa by moving passengers and<br />

freight; East to West, North to South, and providing<br />

quality regional aviation solutions.<br />

2. Delivering regional distribution for intercontinental<br />

carriers flying into Africa:<br />

– British Airways<br />

– Emirates<br />

– Virgin<br />

– Air France<br />

– Swiss<br />

– Delta<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Transportation<br />

fly 540<br />

17<br />

• Niche market pan-African airline<br />

established 2006<br />

• East African Hub: Kenya<br />

• Southern Africa Hub: Angola<br />

• West African Hub: Ghana<br />

• Punctual, reliable and safe<br />

• Strategic scheduling, on-line booking<br />

• Senior management team<br />

is ex-British Airways<br />

• International standard maintenance<br />

engineers and facilities<br />

Accra<br />

Nairobi<br />

Luanda<br />

Investing in the growth of Africa


Investing in the growth of Africa<br />

<strong>Lonrho</strong> Hotels takes pride in providing excellent<br />

hospitality delivering the sales, marketing,<br />

operational support, experience and technical<br />

skills required for hotels to succeed in Africa.


<strong>Lonrho</strong> Hotels<br />

19<br />

leopard rock hotel<br />

ZIMBABWE<br />

easyhotels<br />

africa<br />

grand karavia hotel<br />

DRC<br />

hotel cardoso<br />

Mozambique


Investing in the growth of Africa<br />

<strong>Lonrho</strong> is playing an integral part in providing<br />

support services to African markets as their<br />

economies continue to thrive and grow. This<br />

rapid emergence of Africa is creating a strong<br />

demand for the industries within the support<br />

services division in <strong>Lonrho</strong>.


<strong>Lonrho</strong> Support Services<br />

AFEX<br />

21<br />

Provides quality, cost effective and<br />

rapidly deployed support services<br />

in remote environments.<br />

Products and Services include:<br />

– Camps and Accommodation<br />

– Logistics<br />

– Construction<br />

– Communications<br />

– Security<br />

– Expeditions: Safari and Travel<br />

– Tent Manufacturing<br />

Clients include:<br />

United Nations, bilateral and multilateral development<br />

agencies, non-governmental humanitarian<br />

organisations. Private sector, mining and oil<br />

companies, exploration.<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Support Services<br />

<strong>Lonrho</strong> Integrated Support Services<br />

22<br />

Bringing together the <strong>Lonrho</strong><br />

Group’s core competencies<br />

to deliver turnkey solutions<br />

under one umbrella contract:<br />

• Camp construction<br />

• Communications VSAT<br />

• Food services<br />

• Laundry and Housekeeping<br />

• Facilities and equipment maintenance<br />

• Camp Security<br />

• Water and waste management<br />

• Welfare and fitness<br />

• IT solutions<br />

• Procurement and consolidation<br />

• Asset Management<br />

• Commissaries<br />

Investing in the growth of Africa


<strong>Lonrho</strong> Support Services<br />

lonrho it services<br />

lonrho water<br />

23<br />

Delivering service and<br />

technology to meet Africa’s<br />

demands as a major<br />

emerging market.<br />

Computer Enterprise Solutions<br />

Turnkey IT solutions and service in<br />

Mozambique, South Africa and Zambia.<br />

Strategic alliances and master distributors<br />

for technology partners including Dell,<br />

Microsoft, HP and CISCO.<br />

Bytes & Pieces<br />

Mozambique’s foremost IT company<br />

Water Purification applications<br />

for companies, municipalities;<br />

farms; industry and the<br />

domestic markets.<br />

Turn-key applications delivering a one stop<br />

solution for clean water.<br />

Standardised modular plants that can be<br />

configured to meet varying levels of demand.<br />

Applicable to remote, rural water solution.<br />

Investing in the growth of Africa


<strong>Lonrho</strong><br />

Corporate information<br />

24<br />

Listed:<br />

London - LONR<br />

Johannesburg - JSE:LAF<br />

Shares in issue: 1,298,614,449<br />

Options outstanding: 119,510,000<br />

Broker:<br />

Auditors:<br />

Principal Group Bankers:<br />

PR Advisors:<br />

Website:<br />

Panmure Gordon<br />

KPMG Audit Plc<br />

Barclays Bank Plc<br />

Pelham Bell Pottinger<br />

www.lonrho.com<br />

Board of Directors:<br />

David Lenigas – Executive Chairman<br />

Geoffrey White – Director & CEO<br />

David Armstrong – Finance Director<br />

Emma Priestley – Executive Director<br />

Ambassador Frances Cook – Senior Independent Director<br />

Sir Richard Needham – Non Executive Director<br />

Jean Ellis – Non Executive Director<br />

Kiran Morzaria – Non Executive Director<br />

Investing in the growth of Africa


Real projects delivering real growth<br />

<strong>Lonrho</strong> Plc<br />

25 Berkeley Square, Level 2<br />

London W1J 6HB<br />

United Kingdom<br />

T +44 (0) 20 7016 5105<br />

F +44 (0) 20 7016 5109<br />

www.lonrho.com

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