#1@Tongaat Hulett JANUARY 2011#2An integrated Agriculture and Agri-processing Business ● > 42 000 Employees Operations in 6 countries in SADC Sugar - 14 operations Maize/corn - 6 operations Market Capitalisation - R11 billion Net debt R3,7 billion NAMIBIA ■CSI F&I Harare ZIMBABWE Triangle Hippo Valley BOTSWANA MOZAMBIQUE ■Mafambisse Beira Gabarone Windhoek Sugar Industries ■ ■CSI Walvis Bay CSI Period (Rands million) Profit from operations Headline earnings Germiston Mill 31 March 2010 R1 500 R815 12 months Chloorkop Estates Kliprivier Mill Meyerton Mill SOUTH AFRICA ■Felixton Mill Amatikulu Mill ✓ Darnall Mill ■Maidstone Mill Durban Huletts Refinery Xinavane Tambankul Maputo SWAZILAND 30 September 2010 R963 R507 6 months Belville Mill Cape Town Location of operations Tongaat Hulett 2#3Profit from Tongaat Hulett Operations R million - 12 Months 1132 838 726 550 323 150 1500 2003 2004 2005 2006 2007 2008 2010 December Interim Results Profit from Operations Half-year ended 30 September R million Tongaat Hulett March (12 months) Headline Earnings 2010 2009 963 873 R million Half-year ended 30 September 2010 2009 507 452 3#4Grow Sugar Production Using Existing Milling Capacity Additional 1 Million Tons Sugar Indicative Minimum Revenue Gap "Mills Full" > R3,3 billion p.a. South Africa Zimbabwe Mozambique Sugar Production at Capacity Previously Achieved (Year) 1 000 000 969 000 (2001) 600 000 580 000 (2002) 327 000 Replacement cost of 1 million tons unutilised milling capacity > R10 billion Tongaat Hulett Future potential Cane supplies • Brownfield investment . Greenfield investment 4#5Efficient Electricity Generation From Fibre in Sugar Cane All Tongaat Hulett Mills - Full Generating capacity (MW) 350 Additional Revenue - Electricity 2,7 (Rand billion) Investment (Rand billion) 8,9 Annual running costs (Rand million) 161 Tongaat Hulett 5#6Ethanol From Sugar Cane Tongaat Hulett Working towards . SADC introducing a workable ethanol regime as a CO2 mitigation strategy 10% ethanol blend ● Equivalent to 2,2 million tons raw sugar Current South African sugar market is 1,7* million tons Existing Northern SADC sugar capacity is 2,2 million tons * Includes imports of 325 000 tons raw sugar from Swaziland 6#7Value Extraction from Land under Sugar Cane Last 12 Years: 2 600 hectares Converted to Development Developable Hectares: 8 763 in SA Net Cash Inflow (including overheads) . Cornubia ● . R700 000 per developable hectare Bulk deal for low cost housing Ridgeside development ● R9,9 million per developable hectare Majority of developments between R2 million and R6 million per developable hectare Tongaat Hulett 7#8Tongaat Hulett Interchangeability of maize/corn and sugar cane Tongaat Hulett processes 600 000 tons of maize per annum - starch and glucose Turnover from animal feeds - R1,1 billion per annum Huletts consistently rated as the leading sugar brand in South Africa VOERMOL. SUPERMOT 50 kg Tongaat Hulett Huletts Pure Sugar - Pure Sweetness White Sugar, Huletts SunSweet Brown Sugar VOERMOL 8#9Zimbabwe and Mozambique - Sugar Production Sugar production (tons) 2009/10 Actual 2010/11 Actual 2011/12 2011/12 (% Increase) Estimate Nov* Jan 2011 Estimate Milling Capacity Zimbabwe 258 965 333 020 (29%) - 380 000 400 000 0 36 360 000 380 000 > 600 000 Mozambique 133 802 165 744 (24%) - 270 000 290 000 0 25 250 000 270 000 > 327 000 32000 SILVER-WEIBULL Tongaat Hulett * Estimate presented in the November 2010 Roadshow 9#10Hectares Supplying our Mills - Harvested 2010/2011 Estimate Nov # 2010/2011 Actual Hectares Harvested 2011/2012 Jan 2011 Estimate (% change) Indicative Target (Year) Mozambique Tongaat Hulett 18 330 17 904 20 380 (14%) 21 496 (2013/14) Outgrowers 3 890 3 809 Total 22 220 21 713 4 305 (13%) 24 685 (14%) 5 304 (2013/14) 26 800 Zimbabwe Tongaat Hulett 26 488 24 943 26 392 30 247 (2014/15) Outgrowers 8 585^ 8 805 9 405 15 880 (?) Total 35 073* 33 748* 35 797 46 127 Tongaat Hulett # Estimate presented in the November 2010 Roadshow ^ 5 900 hectares previously reported increased by 2 685 low yield hectares requiring replant * Excludes 1 500 hectares from Chisumbanje Estate (future ethanol mill) 10#11Growing Cane Supply - Yields Tons Cane per Hectare Harvested Cane Harvested Cane 2010/2011 Estimate Nov ^ 2010/2011 Hectares to be harvested 2011/2012 Actual Yields Jan 2011 Estimate Indicative Target (Year) Mozambique Tongaat Hulett 94# 88# 100# > 107# (2013/14) Outgrowers 86 906 86 93 > 107 (2013/14) Zimbabwe Tongaat Hulett 85 86 98 Outgrowers 48* 47* 50 > 112 (2014/15) > 100 (?) Mozambique actual cane yields Excessive rainfall during the main growing period from January to April 2010 adversely affected young cane which manifested itself in lower stalk weights when harvested in November/December 2010 ^ Estimate presented in the November 2010 Roadshow # Excludes yield on Mafambisse Original Estate - 7 000 hectares * Excludes 1 500 hectares from Chisumbanje Estate (future ethanol mill) 11#12South Africa Sugar Industry Regulatory Framework • To change Indicative electricity price for cane is imminent Integrated Resource Plan (IRP 2010) for electricity to be finalised by March 2011 Tongaat Hulett COFIT/REFIT Price (SA Rands) cent/kWh Return on Capital 55 Operating cost (indicative) 9 Fuel (bagasse) 110 Total 174 12#13South Africa - Increasing Cane Supplies Private Public Partnerships • 3 534 hectares over 3 years - government R51 million 17 000 gross hectares Tongaat Hulett identified as the strategic partner • Initial award of R30 million New Sugar Cane Planting Small scale growers Commercial growers Tongaat Hulett leased land Total September 2010 - March 2011 3 216 691 2 097 6 004 Yields Hectares harvested and sugar produced . 2000/01 SA North Coast 63,8 tcph • • 2009/10 SA North Coast 44,8 tcph 2009/10: 111 005 hectares harvested 564 000 tons sugar • 2010/11 SA North Coast 34,0 tcph • Target 60,0 tcph 2010/11: 112 527 hectares harvested Rainfall for hectares supplying TH Mills October 2009 to March 2010 October 2010 to 10 January 2011 Tongaat Hulett 75% of LTM 112% of LTM 445 694 tons sugar • Targeted 2012/13: 123 715 hectares 835 000 tons sugar * Assumes normal rainfall year 13#14Hectares Supplying our Mills South Africa Small scale growers Commercial growers Tongaat Hulett leased land 2009/2010 (564 000 tons) 21 996 835 000 Tons Sugar* 29 963 94 688 97 704 6 145 10 155 Tongaat Hulett owned land 7 765 7 725 Total hectares under cane 130 594 145 547 Total hectares harvested 111 005 123 715 85% of total hectares under cane Tongaat Hulett Assumes normal rainfall year 14#15Raw Sugar Flows - Tongaat Hulett South Africa - effective sugar regime Local market Exports - World market Ethanol - EU Mozambique and Zimbabwe Regional market Exports - World market Ethanol - EU/USA Tongaat Hulett 2010/2011 Estimate Indicative 2 million tons ^ 365 000 tons at 29 c/lb 81 000 tons at 19 c/lb 500 000 # 500 000 295 000 tons 433 000 204 000 tons 494 000 ^ Includes > 60 000 tons Raw Sugar Equivalent from Swaziland operation # SADC Region 15#16Reducing the Unit Cost of Sugar Production · Milling and indirect overheads • > 92% of costs fixed (not related to volume) Harvesting and delivery of cane to the mill • Average cost based on 15 km haul - 2,3 USc/lb Farming (input costs per hectare) . ⚫ Fertiliser/chemicals, manpower, equipment and irrigation Cane replanted on average every 9 years R16 000 to R25 000 per hectare Tongaat Hulett 16#17Cane Land in KZN Targeted for Property Development DURBAN (ETHEKWINI MUNICIPALITY) CATO RIDGE BALLITO TONGAAT 16 kms DURBAN HARBOUR Total of 13 807 ha (8 763 developable ha) ⚫ eThekwini growth corridor 7 420 gross ha (4 333 developable ha) • Coastal corridor / outside eThekwini 6 387 gross ha (4 430 developable ha) UMKOMAAS INDIAN OCEAN URBANIZED AREAS NOT VIABLE FOR DEVELOPMENT TONGAAT HULETT LANDHOLDINGS Value benchmarks: Net cash inflow (including overheads) Higher value land -> 9,9 million / developable hectare Lower value land -> R700 000 / developable hectare (low cost housing) 17#18Zinkwazi / Thukela • Gross hectares - 2 352 • Developable heactares - 1 459 Tongaat Hulett Tinley Manor Gross hectares - 1 042 Developable heactares - 882 18#19Industrial Land Ethekwini / Ballito In Short Supply Cato Ridge 250 65 65 ? Compensation Flats Early 2012 Inyaninga Imbonini Mid 2011 35 320 Mid 2012 90 uShukela - mid 2012 280 105 DTP Canelands 5 Cornubia End 2011 86 RiverHorse Hammarsdale 70 Mahogany Ridge 15 Pinetown Umgeni River Node Vacancy Rates - Factories & Warehouses Gauteng -6,5% Western Cape -6,6 % KZN - 2,1% Umgeni River Node - 1,9% Pinetown -2,6% SIB - 2,3% Source - SAPOA IVS Q2 2010 Durban 776 hectares - ha DEVELOPED AREAS TH OWNED LAND TH FUTURE INDUSTRIAL LAND 285 hectares - ha Old Airport Site NON TH FUTURE INDUSTRIAL LAND Dig Out Port? 195 hectares - ha SouthGate/AECI 40 NON TH AVAILABLE INDUSTRIAL LAND 105 hectares - ha LEASED LAND 0 сл 5 10 20 Kilometers#20Airport cities - "Even in today's rocky economic times, airports and their immediate environments are becoming 21st century commercial anchors, taking on many features of destination retail and urban centers." N2 R102 M4 INYANINGA MAIN AIRPORT ACCESS KING SHAKA INTERNATIONAL AIRPORT & DUBE TRADEPORT Existing rail Airport Inner Ring Tongaat Hulett Landholding 2 515 Gross hectares 1 517 Developable hectares TONGAAT Proposed new road 0 1,125 2,250 4,500 Meters#21Inyaninga: Bulk Land Sale / TH Development / Partnership Gross hectares : 707 Developable hectares : 550 Yes? R6,3 million per developable hectare R3,465 billion Maybe? R4,4 million per developable hectare R2,420 billion No?#22M41 R102 CORNUBIA SOUTH Cornubia WORTE CORNUBIA NORTH N2 IZINGA UMHLANGA RIDGE SIBAYA ☐ ☐ Cornubia South Boundary Cornubia North Tongaat Hulett landholdings Land already purchased by eTM 517 ha Gross -253 Developable ha R725 000/Developable ha Land Purchased by eTM - Oct 2010 34,6 ha Gross - 25 ha Developable R725 000/Developable ha Land being purchased by eTM - 28,6 ha Gross - 23 Developable R951 000/Developable ha - ☐ Industrial Node - 86 ha Platform 22 22#23Maize/Corn Production in SADC Poised for Growth Products from cane or maize • • Ethanol Sweeteners Fermentation products (beer) Tongaat Hulett only maize wet miller in Southern Africa World maize price • Last 15 years US$80 - US$100/ton • Recent price: US$220 - US$250 per ton Starch and glucose per capita usage below first world levels Plants have capacity to cater for growth Tongaat Hulett Tongaat Hulett's Kliprivier Mill 23 23#24D Tongaat Hulett is one of the few agricultural and agri-businesses in sub Saharan Africa that has the capability, capacity and track record to make it happen STYGEL STARC RAL AMYRA 25 kg STYGROS M MACRO