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Annual report Summary


Company name: Omnia
Year: 2013


I. Profile ............................................................................................................................................................................................................................................. 2
II. Business ......................................................................................................................................................................................................................................... 2
A. Notable statistics ............................................................................................................................................................................................................ 2
B. Geography/Climate/Demographics ...................................................................................................................................................................... 2
C. Equipment/technology/production ...................................................................................................................................................................... 3
D. Service/offering .............................................................................................................................................................................................................. 3
E. Regulation/ business operating environment .................................................................................................................................................. 4
F. General business performance ................................................................................................................................................................................ 4
G. Board members .............................................................................................................................................................................................................. 5
III. 10 Year share information ..................................................................................................................................................................................................... 6

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I.

Profile

Omnia is a diversified provider of specialized chemical products and services used in the mining, agriculture and chemicals sectors.
Omnia adds value at every step in the value supply chain.

II.

Business
A.

Notable statistics

B.

In business for 60 years.

R13.5Bn revenue in 2014.
3,600 employees.
Generate 35% revenue from outside SA.
Operates in 26 countries.
Omnia has presence in 23 countries within Africa.
Has 10,000 industrial chemicals on offer.
Stated debt equity ratio of 6%
Target gearing of 30-40%
Aim for ROE of inflation plus 10%
Aim for 8% real growth rate

Geography/Climate/Demographics
Seeing increasing stability in African countries.
Africa has plentiful supplies of coal and uranium, and world needs lots energy
Africa is treasure trove of metals and minerals across globe

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C.

Changing weather patterns are affecting crops- food inflation

Head office in Joburg
Supply to Brazil and Australasia
Expanding middle classes means increased consumption of steel and certain foods- Omnia is positioned for this.
Higher world population is projected - people will consume more energy, more food. This bodes well for Omnia.
Water scarcity is an alarming global problem - 1.2 billion people live in water scarce areas
Changing weather patterns are affecting crops causing food inflation.
Higher crop prices lead to more plantings (more fertilizer used)
Africa only applies 10% of the world average of fertilizers per hectare- this means huge potential for companies like
Omnia.

Equipment/technology/production
Manufacture nitric acid and explosive emulsions.
Three main operating divisions: Mining chemicals, Omnia fertilizer, Mining explosives
Have new nitric acid complex- used in explosives and fertilizers. Historically, Omnia has imported nitrate-based
products.
Omnia is well positioned in biofuel production, and is involved in biofuel research
Omnia has water-treating technology- using it for potable water treatment. Their chlorine packing plant helps to
achieve this.
Omnia researching fertilizers that increase crop yields. Also advise on precision farming.
Omnia struggled with unfavorable ammonia to urea ratio in 2013.

D.

Service/offering

Omnia has an integrated approach to chemicals supply/manufacture, enabling it to differentiate from commodity
chemical suppliers
Have a blasting consultancy service
Their blasting software and electronic delay detonators are quite popular.

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E.

Regulation/ business operating environment

F.

Government in SA has mandated that biofuels be blended into fuel from Oct. 2015
They claim to be avid promoters of employee development and retention.
Lack of investment into mining in SA. Government aiming for redistribution, rather than growth.
Concern that farming expropriation will harm world competitiveness of SA, and lead to higher imports. Farming
very competitive, and other countries are highly subsidized.
Depend on imported ammonia to some extent, and Transnet limitations have prompted Omnia to buy their own rail
wagons, and are studying refrigeration storage.
SA gold and platinum mining is currently unprofitable for Omnia mining.
Mine stripping ratios becoming higher as mines get deeper.
Growth of Uranium industry in Namibia is helping Omnia chemicals.
Farming already seeing higher levels automation due to higher minimum wage.
They are using carbon credits- they sold some which arose from their nitric acid plant energy efficiency, but will be
storing the carbon credits now.
Shale gas could potentially lift the chemical sector.

General business performance

Chemicals division struggling- limited growth outside oil and gas. Current operating margin of 1.5%. Expansion
into other regions/market segments is their path to growth.
Protea chemicals is the largest chemicals distributor in Africa.
Excellent growth in their mining division.

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G.

Board members

Age Qualification

Experience

60

All at Omnia

Chairman

42

BSc Chem
Eng., MBL
Law

Public enterprises

2004

Female

Coloured

61

BSc

2011

Male

White

60

BSc Chem
Eng., MBA
BCom Cum
Laude
BCom, Msc
Chem eng

Cross-geography with SudChemie of Germany

Private consultant in risk
management
Varied, all in financial
management
Director at Anglo Plat, Sasol,
Simmer and Jack. Served on
council of chamber mines.
Risk management for Transnet,
Ernst and young, Liberty life,
AngloGold
Anglo American, various
positions within Omnia, starting
as project engineer.
Professor marketing- helped
Nissan, Sanlam.
Real estate

Company
secretary
Indep. nonexec, England
Indep. nonexec
Group FD

2002

Male

White

1993

Male

White

Northam Platinum

Indep. nonexec

2007

Male

White

Cashbuild

Audit
committee
chair
MD

2008

Female

White

1982

Male

White

Indep. nonexec
Non-exec
director
Indep. nonexec

2003

59
56

59

CA

56

BSc Chem Eng,

BCom

65

PhD

57
41

BCom, MBA
BCom

Sanlam capital markets

Other
directorships

Inst. Estate agents

Various

Title

Appointed Gender BEE

status
1977
Male
White

White
Male

2007

White
Male

2011

Indian
Female

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47
52

39
43

BSc, MSc
BSc Chem Eng

CA

Various on boards, general

management, deal structuring.
Had interest in Duravin
chemicals.

Petro SA, Proactive

health solutions

Black
Male
White
Male

E&Y, BDO, SAB

CA

Indep non2010
exec
MD chemicals 2007

Chief audit
exec
MD: BME

Financial management

2008

Indian
Male

2000

White
Male

45

BA psychology

HR

HR director

2013

Black
Female

III.

10 Year share information

ZAR

CAGR

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

Revenue

15%

16,200,000,000

13,500,000,000

10,900,000,000

9,400,000,000

8,800,000,000

11,100,000,000

7,340,000,000

5,500,000,000

4,300,000,000

4,300,000

Profit
after tax
Dividends

26%

992,000,000

880,000,000

629,000,000

451,000,000

58,000,000

491,000,000

313,000,000

246,000,000

24%

301,000,000

220,000,000

66,000,000

40,000,000

96,000,000

76,000,000

68,000,000

154,000,000 217,000,000
60,000,000

44,000,000

CAGR: Compound Average growth rate

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