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NG WORLD CLASS SERVICE, QUALITY AND COST COMPETITIVENESS PROVIDING WORLD CLASS SERVICE, QUALITY PROVIDING WORLD CLASS SERVICE, QUALITY AND COST COMPETITIVENESS PROVIDING WORLD CLASS SERV SS PROVIDING WORLD CLASS SERVICE, QUALITY AND COST COMPETITIVENESS PROVIDING WORLD CLASS WORLD CLASS SERVICE, QUALITY AND COST COMPETITIVENESS ANNUAL REPORT 2000 ND COST COMPETITIVENESS PROVIDING WORLD CLASS SERVICE, QUALITY AND COST COMPETITIVENESS THE PRIME OBJECTIVE OF THE GROUP IS TO THE PRIME OBJECTIVE OF THE GROUP IS TO SUSTAIN REAL GROWTH IN EARNINGS PER SHARE SUSTAIN REAL GROWTH IN EARNINGS PER SHARE In achieving the prime objective, the Group is committed to: Act with integrity, purpose and responsibility to all stakeholders Satisfy customer needs through quality and service excellence Develop a dynamic enterprise with a balanced and attractive portfolio of operating businesses Invest in the development of its people, recognising that they are the Group’s greatest source of competitive advantage Follow enlightened employment practices leading to equal opportunity for all employees Perform responsibly in relation to the physical and social environment 1 Registration No. 1892/000610/06 GROUP PROFILE HIGHLIGHTS Earnings before exceptional items R654 million The Tongaat-Hulett Group Limited is a Headline earnings R512 million major South African company with three Headline earnings per share 507,9 cents internationally competitive businesses, Dividends per share 212,0 cents sugar, starch & glucose and aluminium. CONTENTS CONTENTS In addition it has a land development operation and is currently actively pursuing strategies Shareholders’ Information 2 Comparative Highlights 3 to exit from its building materials and Directorate 4 textiles operations. Corporate Information 5 Executive Committee of the Board 5 Group Activities 6 Its shares are listed on the Johannesburg and Executive Chairman’s Review 7 London stock exchanges. Divisional Reviews: Sugar 10 It employs some 12 300 people, has Starch & Glucose 12 Aluminium 14 annual revenue from continuing operations Property 16 of approximately R4,6 billion and Triangle 18 capital employed of R6,3 billion. Five Year Review 19 Definitions 20 Segmental Analysis 21 Human Resources and Development 22 Value Added Analysis 23 Black Economic Empowerment and Social Investment 24 CURRENCY CONVERSION GUIDE The Environment, Health and Safety 25 APPROXIMATE VALUES OF R1,00 AT 31 DECEMBER Group Services 26 2000 1999 Corporate Governance 27 US dollar 0,13 0,16 UK pound 0,09 0,10 Annual Financial Statements: German mark 0,27 0,32 Report of the Independent Auditors 30 Swiss franc 0,21 0,26 Certificate by Company Secretary 30 Zimbabwe dollar 7,27 6,05 Directors’ Approval of Annual Financial Statements 31 Statutory Report 32 Financial Statements 36 Subsidiary Companies and Joint Ventures 53 Additional information about the Group is available at our Notice to Shareholders 54 website: http://www.tongaat.co.za Senior Management 56 2 SHARE PRICE PERFORMANCE Five year price trend (Cents) 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 1996 1997 1998 1999 2000 High Low 31 December SHARE OWNERSHIP ANALYSIS at 31 December 2000 Number of shareholders Category Shares held % held 2 209 1 - 500 shares 311 153 0,31 796 501 - 2 500 shares 882 017 0,88 1732 501 - 5 000 shares 588 010 0,58 75 5 001 - 10 000 shares 540 921 0,54 58 more than 10 000 shares 3 405 907 3,38 3 311 Individuals - total 5 728 008 5,69 4 Insurance & assurance companies 51 670 0,05 7 Pension & provident funds 1 265 315 1,25 128 Banks & nominee companies 41 326 337 40,97 140 Investment trusts & other companies 1 212 439 1,20 1 Anglo American plc group 51 281 348 50,84 3 591 Total 100 865 117 100,00 Shareholdings over five percent: Anglo South Africa (Pty) Limited 51 281 348 50,84 Standard Bank Nominees (Tvl) (Pty) Limited 26 027 001 25,80 3 SHAREHOLDERS’ DIARY Financial year end 31 December Annual general meeting May Reports and profit statements: Interim report August Profit announcement and final dividend declaration March Annual report March Dividends: Interim Declared August Paid September Final Declared March Paid April COMPARATIVE HIGHLIGHTS 2000 1999 Capital employed (Rmillion) 6 269 5 997 Equity (Rmillion) 3 916 3 743 Market capitalisation (Rmillion) 3 848 5 240 Revenue – continuing operations (Rmillion) 4 579 3 631 Earnings – continuing operations (Rmillion) 639 579 Total net earnings (Rmillion) 378 313 Headline earnings (Rmillion) 512 489 Headline earnings per share (Cents) 507,9 486,7 Dividends per share (Cents) 212,0 207,0 Dividend cover (Times) 2,4 2,4 Return on capital employed (%) 12,9 12,7 Return on equity (%) 13,4 13,3 Net debt to equity (%) 15,4 14,0 Net asset value per share (Cents) 3 882 3 714 Share price – 31 December (Cents) 3 815 5 200 – high (Cents) 5 190 5 220 – low (Cents) 2 840 2 970 Shares – issued (Million) 101 101 – weighted (Million) 101 101 Number of shareholders 3 591 3 926 Permanent employees – at year end South Africa 7 968 8 263 Other (excluding Triangle) 4 311 3 981 4 DIRECTORATE DIRECTORATE EXECUTIVE DIRECTORS NON-EXECUTIVE DIRECTORS ALTERNATE DIRECTORS C M L Savage (62) R S R Armstrong (70) PC du Trevou (43) Executive Chairman Sugar Cane Farmer Managing Director Employed 1977, Appointed director 1958 Building Materials Division Appointed director 1981 Employed 1984, and chief executive 1991 L Boyd (64) Appointed alternate 1997 Executive Vice Chairman D G Aitken (58) Anglo American plc and Deputy D B Pfaff (36) Group Financial Director Chairman, Anglo American Senior Vice President Employed 1969, Corporation of South Africa Limited Anglo Ferrous Metals and Appointed director 1996 Appointed director 1989 Anglo Industries Appointed alternate 1999 B G Dunlop (47) E le R Bradley (62) Managing Director Executive Chairman J D Ralph (61) Sugar Division Wesco Investments Limited Group Strategic Planning Director Employed 1980, Appointed director 1987 Employed 1961, Appointed director 1997 Appointed alternate 1997 E K Diack (43) G R Hibbert (54) Chief Executive Officer: Anglo Industries TD Rye (54) (British) Managing Director and Executive Vice President: Finance, Managing Director Property Division Anglo Ferrous Metals Textiles Division Employed 1972, Appointed director 1997 Employed 1985, Appointed director 1998 Appointed alternate 1997 E S C Garner (61) G P N Kruger (43) Director of Companies J Thomas (32) Managing Director Appointed director 1978 Manager: Corporate Finance Starch & Glucose Division Anglo American Corporation Employed 1982, M W King (63) of South Africa Limited Appointed director 1997 Executive Vice Chairman Appointed alternate 2001 Anglo American plc and J B Magwaza (58) Deputy Chairman, Anglo American Chairman Corporation of South Africa Limited Building Materials Division Appointed director 1980 Employed 1975, Appointed director 1994 M Mia (53) Chief Executive Officer S J Saunders (41) Fasic Investment Corporation Limited Chairman Appointed director 1996 Sugar and Textiles Division Employed 1986, TH Nyasulu (46) Appointed director 1991 Director of Companies Appointed director 2000 M Serfontein (48) Group Human Resources G R Pardoe (44) Director Executive Director: Finance Employed 1983, Anglo American Corporation of Appointed director 1996 South Africa Limited Appointed director 1995 PH Staude (47) Managing Director R H J Stevens (60) Aluminium Division Director of Companies Employed 1978, Appointed director 1977 Appointed director 1997 AJ Trahar (51) Chief Executive Officer Anglo American plc Appointed director 1992 5 CORPORATE INFORMATION CORPORATE INFORMATION GROUP SECRETARY BANKERS AUDITORS M A Kennedy (59) First National Bank Deloitte & Touche Employed 1973, of Southern Africa Limited Appointed group secretary 1995 Nedcor Bank Limited The Standard Bank TRANSFER SECRETARIES of South Africa Limited BUSINESS AND POSTAL ADDRESS South Africa: Computershare Services Limited ATTORNEYS PO Box 61051 Amanzimnyama Hill Marshalltown 2107 Tongaat, KwaZulu-Natal Cox Yeats PO Box 3 United Kingdom: Deneys Reitz Tongaat 4400 Capita IRG Plc Garlicke & Bousfield Bourne House Shepstone & Wylie Telephone (032) 439 4000 34 Beckenham Road Taback & Associates Facsimile (032) 945 3333 Kent BR3 4TU Website: http://www.tongaat.co.za E-mail: [email protected] EXECUTIVE COMMITTEE OF THE BOARD EXECUTIVE COMMITTEE OF THE BOARD Standing left to right: G P N Kruger, S J Saunders, B G Dunlop, M Serfontein. Seated left to right: G R Hibbert, J B Magwaza, D G Aitken, C M L Savage, P H Staude, E K Diack, J D Ralph. 6 GROUP ACTIVITIES GROUP ACTIVITIES SUGAR STARCH & GLUCOSE ALUMINIUM PROPERTY DIVISION DIVISION DIVISION DIVISION Tongaat-Hulett Sugar Limited African Products (Pty) Limited Hulett Aluminium (Pty) Limited (50%) Moreland Estates (Pty) Limited B G Dunlop G P N Kruger P H Staude G R Hibbert Managing Director Managing Director Managing Director Managing Director Tongaat-Hulett Sugar owns African Products is a wet- Hulett Aluminium manufactures Moreland’s land development and operates five mills, a miller of maize with mills at a wide range of rolled and activities cover all market central refinery and extensive Kliprivier, Germiston and extruded, semi-fabricated and sectors in the northern Durban sugar cane estates in South Meyerton in Gauteng and finished aluminium products for metropolitan area. Commercial Africa. It also has various Bellville in the Western Cape. local and export markets. Its projects include La Lucia sugar milling and cane Its products include modified products include foil, can stock, Ridge and Umhlanga Ridge. growing interests in and unmodified starches, painted coil, plate, flat sheet and Residential and resort projects neighbouring states. It glucose, maltose and dextrose coil, circles and architectural include Mount Edgecombe produces raw, refined and syrups, glucose powders, and general extrusions. The Country Club Estate, Zimbali, speciality sugars for local and caramel colour, maize germ, business is based in La Lucia Ridge, Broadlands export markets, non-caloric high-protein gluten meal, Pietermaritzburg. Its R2,4 and Somerset Park. It has sweeteners and animal feeds.