Financial Results Presentation 31 March 2018

TRANSNET AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2018 2

Executive summary

Revenue increased by 11,3% to R72,9 billion, driven by: a 6,5% increase in railed automotive and

container volumes; a 4,3% increase in railed export coal

volumes; and a 6,1% increase in port container

volumes.

Operating expenses increased by 6,5% to R40,4 billion.

Savings of R3,1 billion were achieved against planned costs.

EBITDA increased by 18,0% to R32,5 billion, with the EBITDA margin increasing from 42,1% to 44,6%.

Net profit for the year increased by 75,4% to R4,9 billion (2017: R2,8 billion), a significant increase from the prior year.

Gearing improved by 0,8% to 43,4% and cash interest cover at 3,0 times, are both comfortably within loan covenant requirements.

The Company recorded a DIFR ratio of 0,73 – the seventh consecutive year that a ratio below 0,75 has been achieved with the global benchmark of 1,0.

Cash generated from operations increased by 12,6% to R34,9 billion.

Capital investment of R21,8 billion, bringing expenditure over the past six years to R165,6 billion.

2,9% of personnel costs invested in training, focusing on: Artisans; Engineers; and Engineering technicians.

B-BBEE spend amounted to R25,8 billion or 86,9% of total measured procurement spend, per DTI codes.


Five-Year review + Volumes

+ Financial ratios

• The launch of the Transnet Africa Locomotive

during April 2017 marked a crucial step in its

strategy of becoming a leading manufacturer and

supplier of rolling stock on the African continent.

• The locomotive, designed, engineered and

manufactured in Africa, is suitable for use on

branch lines and in the yard for shunting, while

also being able to travel on old rail tracks originally

designed to carry light axle loads.

• In addition, the diesel-powered Trans-

Africa Locomotive is appropriate for aged railway

lines that operate on the Cape Gauge system,

offering a cost-effective solution for the majority of

the continent’s railway lines that are currently

unused.


5-Year review

2014 2015 2016 2017 2018 % VARIANCE*

VOLUMES

General freight (GFB) (mt) 88,0 90,6 84,0 88,1 90,8 3,2

Export coal (mt) 68,1 76,3 72,1 73,8 77,0 13,1

Export iron ore (mt) 54,3 59,7 58,1 57,2 58,5 7,7

Total rail 210,4 226,6 214,2 219,1 226,3 7,6

Containers (TPT) ('000 TEUs) 4 503 4 571 4 366 4 396 4 664 3,6

Petroleum (Mℓ) 16 583 17 186 17 426 16 978 16 345 (1,4)

FINANCIALS

Revenue (including claw back) 56 606 61 152 62 167 65 478 72 887 28,8

EBITDA (including claw back) 23 639 25 588 26 250 27 557 32 515 37,5

Capital investment 31 766 33 565 29 561 21 438 21 781 (31,4)

Total assets 240 073 328 439 356 393 353 139 369 823 54,0

Total borrowings 90 444 110 377 134 517 124 780 122 550 35,5

RATIOS/STATISTICS

EBITDA margin (%) 41,8 41,8 42,2 42,1 44,6

Gearing (%) 45,9 40,0 43,1 44,2 43,4

Cash interest cover (times) 3,7 3,6 3,1 2,9 3,0

* Absolute comparison to 2014. ** Decrease due to value engineering and optimisation efforts.

**


Summary financial performance

+ Actual performance

+ Revenue and volumes

+ Net operating expenses

+ Earnings before interest, taxation and

depreciation (EBITDA)

+ Depreciation, impairment and finance costs

+ Property, plant and equipment

+ Total borrowings, gearing and cash interest cover

+ Abridged cash flow statement

• The fully autonomous safety inspection device (SID)

prototype – one of a kind globally - is used and tested

by Transnet to detect:

• Obstacles such as livestock or humans;

• Defects on the track in front of trains; and

• Cable theft or overhead traction issues.

• A cow-catcher at the front removes small obstacles on

the track, like stones.

• Six engineers spent 18 months developing the concept

and working on the prototype in collaboration with the

CSIR.


Actual performance

* Absolute variance. #Excluding working capital changes.

Pipelines volumes lower than prior year due mainly to a customer shutdown, and lower market demand.

March 2018 volume growth (%) vs prior year

3,3

6,1

(3,7)

Rail Ports Pipelines

Mar 2018 vs prior year

Weighted group volume performance +6,5%

Revenue excluding clawback +10,0%

+18,0%

Depreciation +1,6%

Capital investment +1,6%

Cash interest cover (times)*# +0,1

Gearing* (0,8%)

Finance cost +12,9%

+11,3% Revenue including clawback

EBITDA excluding clawback +14,8%

EBITDA including clawback

Mainly due to a decrease in borrowing costs capitalised and the impact of the credit rating downgrade.


Revenue and volumes

* Including clawback. ** Excludes specialist units and intercompany eliminations.

Revenue* (R million)

65 478 72 887

+11,3%

2018 2017

* Variance % prior year.

Rail volumes (mt)

Port containers (‘000 TEUs)

Petroleum (mℓ)

4 396

2017

+6,1%

2018

16 345

-3,7%

2018 2017

Revenue contribution by core Operating Division** (%)

TE

14 TNPA

15

52 TFR

14

5 TPT

TPL

77,0

2018

226,3

+3,3%

58,5 57,2

219,1

90,8 88,1

2017

73,8

Export coal +4,3%*

Export iron ore +2,3%*

General freight +3,1%*

Resilient performance and above expectations in an economy showing signs of recovery.

4 664

16 978


Net operating expenses (R million) Net operating expenses contribution by cost element (%)

Net operating expenses 6,5%

in costs in line with higher volumes, with resultant increases of: 12,8% in personnel, 13,6% in fuel and 5,7% in electricity costs.

Cost-optimisation initiatives: • Rationalising overtime, reducing professional and consulting

fees; • Rolling out programmes to measure condition-assessment

versus time-based maintenance execution; and • Limiting discretionary costs relating to travel, printing,

stationery and telecommunications.

Represent 75% of operating expenses

R3,1 billion against planned

costs

Net operating expenses

18

7

7

10

58

Other operating expenses

Material and maintenance

Fuel costs

Electricity costs

Personnel costs

40 37237 921

+6,5%

2018 2017


EBITDA

EBITDA contribution by core Operating Division (%)

EBITDA growth of 18,0%, with EBITDA margin increasing from 42,1% to 44,6%.

EBITDA (R million)

EBITDA margin (%)

*

* Absolute variance.

TE

12

TNPA** 21 TFR 59

TPL**

9 TPT

** Regulated entities.

32 51527 557

2018

+18,0%

2017

Regulated entities represent 30% of Group EBITDA.

42,1

2017 2018

+2,5%

44,6

-1


Depreciation, impairment and finance costs

Depreciation, derecognition and amortisation (R million)

Finance costs (R million)

Impairment of assets (R million)

Depreciation, derecognition and amortisation of assets by 1,6% Due to: • The revaluation of property, plant and equipment, partially offset by: • A significant decrease in derecognition costs.

Impairment of assets of R1,4 billion Due to: • The impairment of property, plant and equipment (derailments and

index valuation impairments on port operating assets). • Impairment of trade and other receivables.

Finance costs by 12,9%, Due to: • Lower capitalisation of borrowing costs. • Increased cost of borrowings impacted by the credit rating downgrade.

13 68613 471

2017

+1,6%

2018

1 442

2 538

2017 2018

-43,2%

10 2119 045

+12,9%

2017 2018


Property, plant and equipment (R million)

Return on total average assets (%)**

PPE by 7,0% to R335,5 billion Due to: • Capital investment of R21,8 billion.

Expansion: R5,4 billion. Sustaining: R16,4 billion.

• R165,6 billion invested in the past six years. • Transnet is seeking new growth paths to compensate for a lower growth

phase in traditional markets.

Return on total average assets of 5,9% • Represents an absolute of 1,3% compared to the prior year, mainly due

to a 33,7% increase in operating profits.

*

Property, plant and equipment

2 933

11 678

21 781

(13 303)

Reval. Additions 2017

313 431

+7,0%

2018

335 488

Impairment and other

(1 032)

Borrowing costs

Deprec.

+1,3%

5,9

2018 2017

4,6

* Absolute variance. ** Excluding capital work in progress and Regulator claw backs.


The gearing ratio by 0,8%. • Below the target range of <50,0%. • Well below the triggers in loan covenants.

The gearing ratio not expected to exceed the target ratio over the medium-term.

Long-term borrowings raised of R9,9 billion, without government guarantees and net short-term facilities accessed of R3,4 billion. The Company borrows on the strength of its financial position and has maintained an investment-grade credit rating for its stand-alone credit profile.

Reflects available capacity to continue the investment strategy, aligned to validated demand.

Total borrowings and cash interest cover

Gearing (%)

Total borrowings (R million)

Cash interest cover (times)

122 550124 780

2017 2018

-1,8%

*

2017

-0,8%

2018

44,2 43,4

+0,1

2018

3,0

2017

2,9

* Absolute variance.

Transnet’s strong cash-generating capability resulting in CIC of 3,0 times which is higher than the triggers in loan covenants of 2,5 times.

*


Abridged cash flow statement

Credit rating as at 31 March 2018

Foreign currency Baa3/stable outlook BB/stable outlook

Local currency Baa3/P-3/stable outlook

BB+/stable outlook

Stand-alone credit profile

bbb- baa3/stable outlook

2018 2017

% var R million R million

Cash flows from operating activities 22 958 25 104 (8,5)

Cash generated from operations 34 915 31 018 12,6

Changes in working capital (2 161) 1 747 >(100,0)

Other operating activities (9 796) (7 661) 27,9

Cash flows utilised in investing activities (24 891) (24 689) 0,8

Cash flows utilised in financing activities (109) (7 936) (98,6)

Net decrease in cash and cash equivalents (2 042) (7 521) (72,8)

Cash and cash equivalents at the beginning of the year 6 422 13 943 (53,9)

Total cash and cash equivalents at the end of the year 4 380 6 422 (31,8)

Borrowings raised

2018

R billion

Development finance institutions 3,5

Export credit agencies 2,8

Bank loans 2,5

Domestic bond issue 1,1

Total long-term borrowings raised 9,9

Net short-term facilities accessed 3,4


Capital investment + Capital investment analysis

+ Major capital deliveries

• DCT Pier 2 deployed 23 new Kalmar straddle carriers

assembled locally, marking Transnet’s commitment to

localisation and industrialisation of the country.

• The substantial capital investment of nearly R308 million will

increase the number of reliable straddle carriers available to

operations and lower the cost of maintenance due to less

equipment failures.

• TPT has sought the services of a global and leading cargo

handling maker, Kalmar, an original equipment manufacturer

(OEM), to supply a substantial portion of the sub-assembled

components for specialised cargo handling equipment of this

nature through Transnet Engineering.

• Phase 1 of the Manganese Rail project is complete and in

operation.

• Maydon Wharf Berths were reconstructed to allow bigger

vessels to berth.

• Transnet achieved multi-product operations of the NMPP in

August 2017.


Capital investment (R billion)

Capital investment by operating segment

Expansion vs replacement

Capital investment by commodity

3%

2%

7%

4%

77%

2%

4%

1%

Manganese

Iron ore

Coal

Piped products

Automotive and other

General freight

Bulk and break bulk

Maritime containers

7%

11%

81%

Engineering and other

Pipelines

Ports

Rail

75%

25%

Replacement R16,4 billion.

Expansion R5,4 billion.

* CAGR from 2013 to 2018.

*

Capital investment analysis

2014

-4,5%

2016 2017

33,6

2018

29,6

2015 2013

27,5 21,4 21,8

31,8

Although capital investment has declined, the objective of providing capacity aligned to validated demand has been achieved, with R165,6 billion invested over the past 6 years. Transnet deferred certain non-critical capital investment due to the credit rating downgrades which caused a climate of restrained and more costly funding.

1%


* Cumulative since inception of contracts.

Asset type 2018

Port equipment

Haulers 33

Trailers 9

Straddle carriers 23

Workshop forklift 3

Reach stackers 7

Tugs 7

Major capital deliveries

Asset type FY 2018 Cumulative 2018*

Locomotives

233 class 44 diesel 86 203

359 class 22 electric 88 168

232 class 45 diesel 21 21

240 class 23 electric 10 10

Wagons

GFB 450

Iron ore 232

Asset type 2018

Rail refurbishment: Infrastructure

Turnouts (units) 30

Universals (units) 54

Rail (kilometers) 320

Screening (kilometers) 160

Sleepers (units) 349 786 Pipeline infrastructure

Coastal terminal phase 1A 96%

NMPP main trunk line 100%

Coastal terminal (tight-line operations) 100%

Inland terminal phase 1A 100%

• The programme achieved multi-product operations in August 2017.

Asset type Stage of completion

Rail infrastructure

Waterberg rail Stage 1 complete and in operation

Manganese rail Phase 1 complete and in operation

Port infrastructure

Reconstruction of Maydon Wharf berths Complete

Port of Ngqura new administration building Complete


+ Rail – Export coal

+ Rail – Export iron ore

+ Rail – General Freight Business

+ Ports containers

+ Pipelines

• The Sishen–Saldanha railway line, also known as the Iron

Export Line, is an 861 kilometres (535 miles) long heavy haul

railway line.

• It connects iron ore mines near Sishen in the Northern

Cape with the port at Saldanha Bay in the Western Cape. It

is used primarily to transport iron ore and does not carry

passenger traffic.

• Train lengths have been increased to 342 wagons,

employing Radio Distributed Power (RDP) technology. These

trains have 8 locomotives, a mix of electric and diesel-

electric, and 342 wagons with a total mass of 41 400 tonnes

and are 3,8 kilometres long.

• This is the longest production train in the world.

Volumes and operations


Volumes (mt)

Productivity and efficiency

Ra

il –

Ex

po

rt C

oa

l

Export coal volumes: • by 4,3% from the prior year.

• Improved performance in response to

strong customer demand. • This achievement includes a monthly

record throughput of 7,2mt in the month of September 2017.

Improvement initiatives include: • Continued high level engagement to

address network disruptions due to community unrest;

• Additional foot-patrols inspecting hotspot areas during severe weather conditions to avoid possible incidents;

• Customer engagement on stockpile levels to optimize wagon allocation; and

• Continuous improvement of operational efficiencies through lean six sigma programme deployment.

Cycle time (hours)

Volumes and operations

+4,3%

2018

77,0

2017

73,8

2016

72,1

2013

69,2

2015

76,3

2014

68,1

-1,7%

62,6

2018 2017

63,7


Volumes (mt)


Ra

il –

Ex

po

rt I

ron

Ore

Export iron ore volumes: • by 2,3% from the prior year. • Improved performance in response to

increased demand. This was partially offset by: • Adverse weather conditions; and • Derailments on the export iron ore line in

the fourth quarter. Improvement initiatives for the ensuing year include: • Customer liaison on product availability

and resource allocation; and • Cycle time improvements through lean six

sigma programme initiatives.

Cycle time (hours)

Volumes and operations Volumes and operations (Cont.)

2017

90,3

-3,9%

86,8

2018

+2,3%

2018

58,5

2017

57,2

2016

58,1

2015

59,7

2014

54,3

2013

55,9


Volumes (mt)


Ra

il –

Ge

ne

ral Fre

igh

t B

usin

ess (

GFB

)

GFB volume performance • by 3,1% from the prior year.

• Improved operational efficiency and

productivity led to increased volumes. • The container and automotive business

grew by 6,5%, suggesting continued success in market-share growth from the road-to-rail shift.

Improvement initiatives for the ensuing year include: • Continued implementation of

diversification & road to rail strategies; • Maximizing rail delivery on commodities

with high demand; and • Improving on wagon placement for

improved turnaround times.

Wagon turnaround time (days)

Volumes and operations (Cont.)

2017

88,1

2016

90,8

+3,1%

2018

88,0

2013

82,6 84,0

2015

90,6

2014

-5,6%

10,1

2018 2017

10,7


Ship turnaround time (hours)

Volumes (‘000 TEUs)


Po

rt C

on

tain

ers

The current year’s performance • by 6,1% from the prior year.

• Better performance mainly due to

improved customer demand.

• Port productivity at Port of Durban impacted significantly by severe storms and floods in October 2017 that damaged port infrastructure and equipment extensively.

Improvement initiatives include: • Intensive repairs and maintenance to

damaged infrastructure and port equipment in response to the unanticipated long recovery period from the October 2017 floods and storms;

• Maintenance of minimum work operations during adverse weather conditions, in line with standard operating procedures;

• Optimal utilization of 23 new straddle carriers; and

• Close liaison with shipping lines for improved cargo handling plans (parcel sizes and stowage).


4 237 4 503 4 571 4 366 4 396

2017 2018

+6,1%

2014 2013 2015 2016

51 55 26 24

69

32 38

Cape Town Durban Pier 2 Ngqura Durban Pier 1

2017 2018

4 664

72



Po

rt C

on

tain

ers

Train turnaround time (hours)

Container moves per ship working hour

While train turnaround times at Durban Pier 1 and Pier 2 improved, performance at Cape Town and Ngqura declined marginally.

Container moves per ship working hour (SWH) negatively impacted by: • Shipping lines significantly changing their

vessel and parcel sizes, requiring adaptations in the allocation of available port resources; and

• Operations in the Port of Durban were impacted by a severe storm in October 2017, which saw a significant amount of equipment being damaged (e.g. cranes & RTGs), temporarily reducing the terminals’ operational capacity.

The terminals recovered from this incident and performance in the last quarter reflected significant improvement.


3,8

1,1

2,4

Durban Pier 1

2,9 3,5

Durban Pier 2

2,2

1,0

3,9

Ngqura Cape Town

53,0

Durban Pier 2

52,7 45,0

55,5

Durban Pier 1

45,5

Ngqura

49,5 63,0

Cape Town

44,8

2017 2018

2018 2017


DJP + NMPP capacity utilisation (Mℓ/Week)

Volumes (bℓ)


Pip

eli

ne

s

Operating cost per Mℓ.km (Nominal R/Mℓ.km)

Petroleum volume performance

• 3,7% below the prior year.

Low performance was mainly due to a customer shutdown and lower market demand.

Planned vs actual delivery time (% of deliverables within 2 hours of plan)

Ordered vs delivered volumes (% of deliveries within 5% of order)

Interventions

• Continue to maximise on available coastal volumes;

• Optimise TM2 utilization; and

• Perform an assessment of the demand intermodal study.


89 99 120 133 119

2014 2013 2017 2018 2016 2015

85,6 85,7

2016 2017 2018

86,0

2014

82,0

2015

84,0 99 98 96 93

2018 2017 2016 2015 2014

116,0

2017

115,0

2018 2016

110,0

2014

16,6

2015

17,2

2016

17,4

2017

17,0

2018 Actual

16,3

-3,7%

2013

15,9

100

135


Sustainable development outcomes + Safety

+ Human resources

+ Community development

+ Industrial capability building and

transformation

+ ED initiatives

+ Environmental stewardship

• Two unique trains that operate as mobile healthcare

hospitals, bringing much needed medical and educational

services to impoverished rural areas of South Africa.

• With over 40 permanent staff and numerous volunteers,

the train is more than a mobile hospital, it provides out-

reach and educational programmes and has thus far

reached 23,5 million people since it rolled out in 1994,

which makes it the world’s biggest mobile clinic.


Employee fatalities (number)

The Company regrets to report five employee fatalities during the year (compared to fifteen in the prior year). The employee fatalities resulted from a combination of causes such as road vehicle accident and human behavior. Transnet’s leadership has heightened its oversight role of operational performance - and safety performance in particular – in more visible ways through site-visits, and by instituting an integrated systems management approach to ensure the various levels of safety performance are clearly understood and adhered to within the organisation. The Company continues to analyse and review its current safety approach and efficiency, while proactively striving ‘towards zero harm’.

Disabling injury frequency rate (DIFR)

DIFR performance of 0,73 (tolerance: 0,75)

• This is the seventh consecutive year of recording a DIFR ratio below 0,75 due to continued focus and investment in safety.

The Company continues to monitor and mitigate, as best as is possible, considering both operational and behavioural risks that are inherent in a Transnet work environment.

Safety – the seventh consecutive year recording a DIFR ratio below 0,75

0,69

2014

0,69 0,69

2017

0,73

2018 2016 2015

0,69

5

15

8

4

7

2014 2015 2016 2018 2017


Human resources – Employment, transformation, skills development

* Including contract

employees.

Invested 2,9% of the labour cost bill on skills

development initiatives (focusing on operational and

technical training).

Transnet achieved its targets for 2018 in most critical

skills development areas, that were the focus for the

year.

Schools of Excellence in Transnet continued to be

a great flagship of the Transnet Academy’s

delivery.

55 666

Transnet employees*

A representative workforce.

Designated categories Target % Actual %

2018 2018

Black 88,0 86,1

Females at GLT 50,0 36,4

Females at extended GLT 50,0 39,7

Females below extended GLT 29,7 28,4

People with disability (PWD)’s 3,1 2,4

Skills development, capacity building and job creation

Key performance indicator

Unit of measure

Annual target

Actual 2018

Training spend % of personnel costs Rand million

≥ 3,5 2,9 741

Engineering trainees Number of learners ≥ 100 100

Technician trainees Number of learners ≥ 200 201

Artisan trainees Number of learners ≥ 200 202

Sector specific trainees Number of learners ≥ 955 1 516

Transnet has performed well in relation to its employment

equity targets. For black employees, Transnet had set a

stretch target after having achieved the National

Economically Active Population target.

With the formation of the Transnet PWD forum, various

initiatives related to PWDs have received traction.

Female representation is growing steadily despite

significant challenges in an operations-heavy environment

at semi and unskilled levels but the recruitment and

retention of women is receiving significant attention.


Community development – Transnet Foundation invested R219 million in corporate social investment.

Heritage preservation

Managing Transnet heritage assets for future generations.

Four locomotives were relocated to Bloemfontein for restoration.

The museums in George and Kimberley continue to demonstrate the role played by rail in the historic development of the South African economy.

Employee volunteer programme (EVP) and socio-economic

infrastructure development (SEID)

Employees volunteered at the

De Aar Youth Precinct to work with

local youth.

Idondotha Community Centre is

60% complete.

ESD centre at Empageni is

complete and the community

centres at Khuma, Thokoza,

Ireagh and Springs provided

social services to 45 989 clients.

152 poor households were

recipients of food-garden produce.

4 148 motorists and

pedestrians have been reached

through rail safety programmes.

Sports

SAFA/Transnet Football School of Excellence

Will soon be converted to a

fully-fledged Transnet Soccer

Academy.

The current rural and farm

sports programme reached

50 000 learners through

programmes promoting chess,

athletics, soccer, netball and

basketball.

Healthcare

Access to primary health care services for rural

communities. Transnet-Phelophepa I&II.

157 418 patients assisted

on-board.

435 332 individuals assisted

through outreach services.

7 647 girls and 2 385 boys through packaged health services.

Mass cancer and diabetes campaigns were intensified.

Education

Looks after orphaned and vulnerable youth in communities where

Transnet has large projects or operations.

Completed the King Zwelithini primary school library.

A national programme is underway to audit teachers’ skills to support the 2019 teacher development programme.


Broad-based black economic empowerment (B-BBEE) and local supplier

industry development

Transnet is currently

rated as a Level 2 B-BBEE

contributor

Supplier development (SD) programme (R million)

% B-BBEE spend of TMPS* B-BBEE categories spend % of TMPS *

Industrial capability building and transformation

* TMPS – Total measurable procurement spend. ** B-BBEE spend down due to certain large suppliers being impacted by the introduction of the new codes. ^Absolute variance.

+2%

Total contract value

137,619 134,365

2018

2017

+1%

Committed SD obligation

63,403 62,564

+32%

Actual SD obligation delivered

42,479

32,246

87103101105

948880756559

2018 2017

+4%

2013 2014 2015 2016 2012 2011 2010 2009

**

Emerging enterprises

8 9

+1%^

+18%^

Qualifying small enterprises

0%^

+8%^

8

Black owned

8 13

Black woman owned

42

34 31

2018

2017


ED initiatives

Junior Achievement South Africa (JASA)

Be Bold Entrepreneurial Youth Programme

South African Bureau of Standards (SABS)

GODISA Fund

R4,5 million spend since inception

R1,5 million spend in the current year. Completed in 2018

R30 million spend since inception in 2014 to date.

Fund capitalised at R165 million for 10 years with an equal contribution of

R55 million from each partner.

A School programme that provides entrepreneurship skills to high school

students with five academies in Eastern Cape, Northern Cape, Free State and

North West.

The Programme develops youth in terms of entrepreneurship and innovation for

the transport and logistics industry.

An incubation programme designed to assist black-owned SMMEs with design,

research and development skills.

A partnership with SEFA and Anglo to provide financial assistance to existing

suppliers.

Ten candidates from the Moving Ideas competition have progressed into the Business Support programme.

The top 10 SMMEs to be on the programme.

The 17 rural universities have been identified and associations have been set up.

Application for communication with societies is running.

110 EMEs and start ups assisted, nine individuals assisted and 83 beneficiaries in ideation.

R150 million allocated to financial

assistance and R15 million for non-

financial assistance.

R49 million worth of loans have been

approved, out of which R47 million has

been disbursed.


ED initiatives (Cont.)

GIBS Programme

Shanduka Black Umbrellas

Matlafatso Centre – Wits Furntech


R31 million spend since inception in 2013 to date. The project has been

completed in the current year.


To be completed in 2018.

R3,5 million spend since inception in 2014 to date.

An incubation for the Systems Engineering and Research Centre.

A business incubation and mentorship programme aimed at

assisting black-owned SMMEs with business skills in Port Elizabeth and

Richards Bay.

Financial and non-financial assistance for black disabled youth

to manufacture furniture in Limpopo.

A mini MBA to equip black-owned SMMEs with

entrepreneurial skills.

110 EMEs and start ups assisted, 9 individuals assisted and 83 beneficiaries in ideation.

Two incubation centres are currently running in Richards Bay, and Port Elizabeth.

An intensive mentorship drive was initiated during the period and an improvement in business maturity and literacy rate has been noted.

This initiative is focused specifically on black people living with disabilities.

25 beneficiaries have been trained and the second phase has commenced.

Aims to empower new and existing growth-oriented entrepreneurs.


Energy consumption and efficiency Carbon emissions

Environmental stewardship Energy efficiency and carbon emissions reduction

Total electricity consumption (GW/h)

Total fuel consumption (million litres)

Carbon emissions intensity (kgCO2e/ ton)

Carbon emissions (mtCO2e)

Total energy efficiency (ton/GJ)

Traction electricity efficiency (gtk/kWh)

3 208 3 296

+2,7%

2018 2017

+2,9%

2018

239,0 246,0

2017

2018

65,4 64,5

2017 2017

18,9

2018

19,0

+0,9%

2017 2018

10,34 10,09

-2,4%

2017 2018

3,95 4,00

+1,3%

Freight commodities market share gains from road hauliers

resulted in carbon emissions savings to the South

African transport sector of 859 228 tC02e.

262 016MWh electricity regenerated by the new 15E,

19E, 20E and 21E locomotives.

tC02e - tons of carbon dioxide equivalent. GWh - Gigawatt hours.

GJ – Gigajoule. Gtk - gross ton km.

Traction fuel efficiency (gtk/kWh)

207,9 213,4

+2,6%

2018 2017

-1,5%


Conclusion

Transnet continues to improve performance year on year in an economy showing signs of recovery, confirmed by an

18,0% increase in EBITDA, its key profitability measure.

Improvements in operational efficiency and productivity, together with management‘s continued efforts to contain

costs and optimise capital investment, has resulted in Transnet achieving impressive results.

The Company is striving to be a digital organisation with a strong focus on maximising the use of technology to drive

efficiency, effectiveness and innovation.

Transnet will continue to create value for customers by strengthening infrastructure reliability in existing markets.

Transnet is also seeking new growth paths to compensate for lower growth expectations in its traditional markets.

Thank you

Financial Results Presentation 31 March 2018 · significant increase from the prior year. Gearing...

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Transcript of Financial Results Presentation 31 March 2018 · significant increase from the prior year. Gearing...