Lonrho One2One Investor Presentation - 28th September 2011
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