AGM Update by the CEO of Tongaat Hulett

At today’s Annual General Meeting, Tongaat Hulett’s Chief Executive Officer, Peter Staude, gave the following update on the operations and trading conditions.

 The total South African maize harvest in 2010 is projected to be above 13 million tons, the largest crop in 29 years. The price of maize in South Africa through to July 2011 is trading close to the world price, which contributes significantly to the competitiveness of the starch operation. Sales volumes of starch and glucose in the last three months have continued to show evidence of the contraction in consumer spending, particularly in the prepared foods, confectionary and canning sectors.

 Increasing sugar production from the 957 000 tons milled in the 2009/10 season to the installed sugar milling capacity of 1,9 million tons per annum, with a simultaneous reduction in the unit cost of production, is one of Tongaat Hulett’s key focus areas.

 Tongaat Hulett’s sugar production for the 2010/11 season in Zimbabwe is expected to be between 330 000 and 350 000 tons (from 259 000 tons in 2009/10) and in Mozambique to be between 230 000 and 250 000 tons (from 134 000 tons in 2009/10). Sugar production started later than expected due to unseasonal rain in Mozambique and extensive rehabilitation work on the Hippo Valley mill in Zimbabwe. Consistent mill throughput rates close to capacity, without substantial disruptions, are now required to crush the available cane crop and conclude the sugar sales by the end of the season.

 In South Africa, rainfall in the KwaZulu-Natal north coast region during the sugar cane growing months of January to June 2010 was 252 millimetres compared to a long-term mean of 491 millimetres. Tongaat Hulett’s sugar production in South Africa is now expected to be slightly below that of 2009/10 notwithstanding the hectares under cane supplying Tongaat Hulett’s mills increasing by some 2 000 hectares.

 Tongaat Hulett’s financial results remain sensitive to movements in the Rand, US dollar, Euro and Mozambique Metical. These impact on the revenue streams, costs incurred and the conversion of profits into Rands. Exchange rate movements over the past few months have not been in Tongaat Hulett’s favour. The Rand is currently 16% stronger against the Euro than it was for the 2009/10 reporting period.

 Tongaat Hulett’s land and property development activity is currently focused on value creation for all stakeholders in the growth corridor north of Durban. The new international air platform at King Shaka and the development of an aerotropolis present particular opportunities for land conversion at the appropriate time and value. In the current economic climate, with the sale of development land across most other sectors being depressed, few hectares are being converted to development in the higher value prime locations on the coastline and to the west of Durban.

 Tongaat Hulett remains well positioned to benefit from the favourable global fundamentals of increasing demand for agricultural products, food, renewable energy and land usage.

 Tongaat

27 July 2010

Audited results for the 15 months ended 31 March 2010

AUDITED RESULTS FOR THE
15 MONTHS ENDED 31 MARCH 2010

• Revenue of R11,136 billion (prior period: R9,453 billion)
• Profit from operations of R1,691 billion (prior period: R1,323 billion)
• Headline earnings of R858 million (prior period: R626 million)
• Recovery of Zimbabwe operations underway
• Scrip distribution with cash dividend alternative of 175 cents per share

Commentary by Peter Staude, CEO of Tongaat Hulett:

Profit from operations increased by 28% to R1,691 billion for the 15 months ended March 2010, compared to the corresponding 15 month prior period, with headline earnings growing by 37% to R858 million. Tongaat Hulett has increased profit from continuing operations every year since 2003 as the company benefits from its growing operations and the emerging global dynamics of increasing demand for agricultural products, food, renewable energy and land usage.

The financial year-end has changed to the end of March, which corresponds with the sugar season in all the countries in which Tongaat Hulett operates. The current financial results are thus for the 15 months to 31 March 2010 and include the revenue of a single sugar milling season and the increased value of the growing crop. The costs are for a 15 month period, including those costs incurred from January to March in the off-crop period that are required to be expensed in the income statement.

Profit from the starch operations for the 15 months was R301 million, compared to R290 million in the prior period. Starch and glucose sales volumes in the local market declined by 5% over this period, with the rate of decline slowing in the first quarter of 2010. Lower demand was experienced in the alcoholic beverage, paper, coffee creamer and confectionary sectors, with the contraction in consumer spending. The negative effect of the lower demand was offset by improved starch and glucose margins. A second consecutive year of favourable agricultural conditions in South Africa yielded a large maize crop in 2009 of 12,9 million tons (previous crop: 12,7 million tons) and resulted in local maize prices trading closer to world prices for most of the year. Co-product revenues decreased as a result of lower prices for edible oils and animal feeds.

Land and property development activity is currently focused on the growth corridor north of Durban that commences inland of Umhlanga/Umdloti, extends around the new King Shaka International Airport and includes the greater Tongaat area. In the present economic conditions, with the sale of development land across most sectors being depressed, few hectares are being converted to development in the higher value, prime locations on the coastline and to the west of eThekwini. Good progress is being made, working with all spheres of Government, on processes leading to the conversion of agricultural land to optimal land usage and accelerated socio economic development, including tourism in KwaZulu-Natal. Tongaat Hulett owns 13 863 gross hectares for development in South Africa. Operating profit from land conversion and development for the 15 months to March 2010 amounted to R187 million (prior period: R256 million) with a further R52 million in capital profits (prior period: R22 million) being realised. During this period, 169 developable hectares (280 gross hectares) were sold comprising 159 hectares in the eThekwini growth corridor, including new airport related activities, and 10 hectares in the prime coastal corridor.

The South African sugar milling, refining and agriculture operations contributed R158 million to profit for the 15 months ended March 2010 (prior period: R95 million), with higher local and export sales realisations.; Sugar production decreased to 564 000 tons compared to the 644 000 tons produced in the previous season. Almost all of Tongaat Hulett’s sugar production was sold in the local market under the Hulett’s brand in 2009/10. In terms of the South African sugar industry legislated regulations, only 65% of the sales were deemed to be local and 35% were recognised and valued as exports. Raw sugar export volumes from South Africa were sold at an effective world sugar price of 15,4 US c/lb (prior year: 12,1 US c/lb) at an average exchange rate of R8,20/US$ (prior year: R8,05/US$).

The downstream sugar value added activities contributed R226 million to profit (prior period: R230 million). This includes Voermol animal feeds, South African refined exports, regional marketing, sales, packing and distribution activities.

In Swaziland, Tambankulu Estates produced a raw sugar equivalent of 54 000 tons (previous season: 56 000 tons). Operating profit for the 15 months, including the value of the cane growth in the period of January to March 2010, was R63 million, compared to R56 million in the prior period.

Sugar production in Mozambique increased to 134 000 tons from 108 000 tons in the previous season. The start-up problems that limited sugar production in 2009/10 at the expanded and modernised Xinavane mill have now been resolved, including replacing the diffuser chain and modifying conveyer systems. This resulted in a large portion of the crop on the substantially expanded cane growing estates being carried over, for harvesting at the start of the 2010/11 season. Production of sugar at Xinavane was 89 000 tons (previous season: 63 000 tons). Mafambisse’s sugar production of 45 000 tons (previous season: 45 000 tons) was adversely affected by a number of factors, including the harvesting of young cane in the newly established cane areas and overcoming irrigation bottlenecks. The Mozambique operation’s raw sugar export volumes to the European Union totaled 49 000 tons (prior: 39 000 tons) and sales to the domestic market increased to 85 000 tons (prior: 69 000 tons). The currency gains of R122 million realised in 2008, when financial structures were finalised, were not repeated in 2009/10. The Mozambique profit from operations amounted to R192 million (prior period: R301 million).

The profit from sugar operations in Zimbabwe was R576 million in the 15 months to March 2010, as relevant economic fundamentals were reintroduced into the local economy and the business. Sales to the domestic market of 188 000 tons were undertaken in US dollars at levels in line with regional pricing and 146 000 tons were exported to the European Union. Sugar production in Zimbabwe amounted to 259 000 tons (previous season: 298 000 tons). The situation that prevailed in Zimbabwe in 2008 had a negative impact on the 2009 harvest and sugar production levels.

The recovery of the Zimbabwe sugar operations commenced in 2009, coinciding with the US dollarisation of the Zimbabwe economy and the return to more normal economic fundamentals relevant to the sugar business, including the restoration of domestic sales prices to regional levels. As reported in the interim results, the Zimbabwe operations are consolidated in Tongaat Hulett’s financial results from the beginning of 2009.; The accounting treatment, in terms of International Financial Reporting Standards, on the commencement of consolidation of these operations gave rise to a balance sheet take-on gain of R1,969 billion, which is recognised in the income statement. This gain is excluded from the profit from operations and excluded from headline earnings.

The centrally accounted and consolidation items include a R82 million gain (prior period: R86 million) on the recognition of an unconditional entitlement in 2009 to an employer surplus account allocation in the Tongaat Hulett pension fund.

The tax charge in the income statement includes the benefit of a release from the deferred tax provision following the reduction of the Zimbabwe tax rate from 30% to 25% at the end of 2009 and the advantage of an attractive Mozambique tax rate for agricultural operations.

Finance costs for the 15 months to March 2010 increased to R452 million from R367 million in the equivalent prior period, commensurate with the borrowings in the business.

Cash inflow from operations was R1,955 billion for the 15 months to March 2010. Tongaat Hulett’s net debt at the end of March 2010 was R3,040 billion (compared to R3,370 billion at December 2009 and R2,356 billion at December 2008) with significant capital expenditure, mainly on the Mozambique expansion, cash absorption in the establishment of the expanded cane crops and replanting of sugar cane in Zimbabwe.

The Board has declared a final distribution, as a scrip distribution with a cash dividend alternative of 175 cents per share, bringing the total distribution for the full period to 275 cents per share. There is a separate detailed announcement on the scrip distribution and the related circular will be posted to shareholders.

Outlook

Tongaat Hulett’s land and property development activity is currently focused on opportunities in the growth corridor north of Durban, including those related to the new international air platform.

The South African maize harvest in 2010 is projected to be above 13 million tons, the largest crop in 29 years, which should maintain local maize prices close to world prices and contribute to the competitiveness of the starch operation.

The world sugar price, after rising substantially, has recently declined sharply to a level similar to the average earned on exports from South Africa in 2009/10. These exports currently constitute some 20% of Tongaat Hulett’s total sugar sales and this percentage will reduce as the Zimbabwe and Mozambique production increases. Movements in the Rand, US dollar and Euro exchange rates have a direct impact on export proceeds and the conversion of earnings into Rands by the operations outside South Africa.

The business is driving to increase sugar production from the 957 000 tons milled in the 2009/10 season to the installed sugar milling capacity of 1,9 million tons per annum, with a simultaneous reduction in the unit cost of production. Sugar production in the 2010/11 season is expected to be 20% to 25% above the previous season. Plans are in place to increase sugar production over the next two seasons in Mozambique from the 134 000 tons in 2009/10 to the newly installed milling capacity of 300 000 tons per annum, with the cane supply already well established. A recovery programme is currently underway in Zimbabwe, focused on the two sugar factories, improving cane yields and re-establishing outgrower cane lands, so as to restore sugar production to the existing installed capacity of 600 000 tons per annum. In South Africa, the rainfall in the cane growing months has been below average for the 2010/11 season, which will affect the sugar operations. The focus in South Africa is on working with commercial and small scale growers on increasing hectares under cane, areas to be replanted and farming practices to improve yields, leading to higher milling capacity utilisation.

Tongaat Hulett remains well positioned to benefit from the medium to longer term global fundamentals of increasing demand for agricultural products, food, renewable energy and land usage.

Peter Staude
Chief Executive Officer

About Tongaat Hulett

Tongaat Hulett is an agri-processing business which includes integrated components of land management, property development and agriculture. Through its sugar and starch operations in Southern Africa, Tongaat Hulett produces a range of refined carbohydrate products from sugar cane and maize. It has considerable expertise in downstream agricultural products, biofuel production and electricity generation. Competition for water and alternative land usages is an ongoing dynamic. Tongaat Hulett optimises land conversion and development at the appropriate times. New dimensions for agriculture are emerging with the continued increase in demand for food products together with a world having to contend with climate change. Agricultural trade regimes are changing, with Africa and the European Union (EU) moving closer as a trade bloc. Opportunities for expansion and growth in Africa are thus emerging. Tongaat Hulett has the established business platform and size to capitalise on these opportunities.

Amanzimnyama
Tongaat, KwaZulu-Natal

28 May 2010

Results for the 12 months ended 31 December 2009

• Revenue of R9,1 billion (2008: R7,1 billion)
• Profit from operations of R1,555 billion (2008: R1,132 billion)
• Headline earnings of R839 million (2008: R583 million)
• Recovery of Zimbabwe operations underway

Commentary by Peter Staude, CEO of Tongaat Hulett:

Tongaat Hulett has overcome a number of challenges in 2009 and is well on its way to fully utilise its newly installed sugar production capacity in Mozambique and to re-establish cane supply and milling capacity utilisation in Zimbabwe. The recovery of the Zimbabwe sugar operations has commenced, coinciding with the US dollarisation of the Zimbabwe economy in 2009 and the return to more normal economic fundamentals relevant to the sugar business, including the restoration of domestic sales prices to regional levels. Both Mozambique and Zimbabwe have preferential access to the attractive European Union markets.

The significantly improved global sugar dynamics are beginning to be reflected in the financial results of the various sugar operations. At the same time, market conditions for the sale of development land across most sectors remained depressed.

Tongaat Hulett’s profit from operations grew by 37% to R1,555 billion in 2009 and headline earnings increased by 44% to R839 million.

Profit from the starch operations was R256 million (2008: R240 million). Starch and glucose sales volumes in the local market declined by 5,5%. Lower demand was experienced in the alcoholic beverage, paper and coffee creamer sectors, with the contraction in consumer spending. The negative effect of the lower demand was offset by improved starch and glucose margins. A second consecutive year of favourable agricultural conditions in South Africa yielded a large maize crop of 12,05 million tons (2007/08: 12,7 million tons) and resulted in local maize prices trading closer to world prices for most of the year. Co-product revenues decreased as a result of lower prices for edible oils and animal feeds.

Land and property development activity is currently focused on the growth corridor north of Durban that commences inland of Umhlanga/Umdloti, extends around the new international airport at La Mercy and includes the greater Tongaat region. In the present economic conditions, few hectares are being converted to development in the higher value, prime locations on the coastline and to the west of eThekwini. Good progress is being made, working with all spheres of Government, in planning for optimal land usage and accelerated socio economic development. Tongaat Hulett owns 13 895 gross hectares for development in South Africa. Operating profit from land conversion and development in 2009 amounted to R148 million (2008: R263 million) with a further R57 million in capital profits (2008: R22 million) being realised.; During the year, 150 developable hectares (247 gross hectares) were sold comprising 144 hectares in the eThekwini growth corridor, including new airport related activities, and 6 hectares in the prime coastal corridor.

The South African sugar milling, refining and agriculture operations contributed R159 million to profit (2008: R73 million). Raw sugar export volumes from South Africa increased to 232 000 tons (2008: 210 000 tons) and were sold at an effective world sugar price of 15,0 US c/lb (2008: 12,1 US c/lb) at an average exchange rate of R8,19/US$ (2008: R8,05/US$). South African domestic sugar sales increased by 17% to 545 000 tons (2008: 466 000 tons). Sugar production decreased to 564 000 tons compared to the 644 000 tons produced in 2008. There has been a reduction in stock levels at the end of the year. The current dynamics of a higher world sugar price are encouraging for the South African sugar industry as improved returns from sugar cane farming will stimulate an improvement in farming practices and an increase in hectares under cane, leading to improved milling capacity utilisation.

The downstream sugar value added activities contributed R209 million to profit (2008: R204 million). This includes Voermol animal feeds, South African refined exports, regional marketing, sales, packing and distribution activities.

In Swaziland, Tambankulu Estates produced a raw sugar equivalent of 54 000 tons (2008: 56 000 tons). Operating profit was R43 million, compared to last year’s R44 million.

Sugar production in Mozambique increased to 134 000 tons from 108 000 tons in 2008. The start-up problems experienced during Xinavane’s 2009 milling season, that limited sugar production, have now been resolved, including having to replace the diffuser chain following numerous chain link failures. This resulted in a large portion of the crop on the substantially expanded cane growing estates being carried over, for harvesting at the start of the 2010/11 season. Production of sugar at Xinavane to the end of December 2009 was 83 000 tons, with a further 6 000 tons produced in January 2010 in an extended crushing season (2008: 63 000 tons). Mafambisse’s sugar production of 45 000 tons (2008: 45 000 tons) was adversely affected by a number of factors, including the harvesting of young cane in the newly established cane areas and overcoming irrigation bottlenecks. The Mozambique operation’s raw sugar export volumes to the European Union totaled 49 000 tons (2008: 39 000 tons) and sales to the domestic market increased to 85 000 tons (2008: 69 000 tons). The currency gains of R122 million realised in 2008, when financial structures were finalised, were not repeated in 2009. The Mozambique profit from operations amounted to R185 million (2008: R250 million). Over the next two seasons, the Mozambique operations are targeting to increase sugar production from the 134 000 tons in 2009/10 to the newly installed milling capacity of 300 000 tons per annum, with the cane supply already well established.

The profit from sugar operations in Zimbabwe was R548 million in 2009, as relevant economic fundamentals were reintroduced into the local economy and the business. Sales to the domestic market of 153 000 tons were undertaken in US dollars at levels in line with regional pricing and 146 000 tons were exported to the European Union. Sugar production in Zimbabwe in 2009 amounted to 259 000 tons (2008: 298 000 tons). The situation that prevailed in Zimbabwe in 2008 had a negative impact on the 2009 harvest and sugar production levels. A recovery programme is currently underway, focused on improving cane yields and the re-establishment of outgrower cane lands, so as to restore sugar production to the existing installed capacity of 600 000 tons per annum.

As reported in the interim results to 30 June 2009, the Zimbabwe operations are now consolidated in Tongaat Hulett’s financial results.; The accounting treatment, in terms of International Financial Reporting Standards, on the commencement of consolidation of these operations gave rise to a balance sheet take-on gain of R1,969 billion, which is recognised in the income statement. This gain is excluded from the profit from operations and excluded from headline earnings.

The centrally accounted and consolidation items include a R82 million gain (2008: R86 million) on the recognition of an unconditional entitlement in 2009 to an employer surplus account allocation in the Tongaat Hulett pension fund.

The tax charge in the income statement includes the benefit of a release from the deferred tax provision following the reduction of the Zimbabwe tax rate from 30% to 25% at the end of 2009 and the advantage of an attractive Mozambique tax rate for agricultural operations.

Finance costs increased to R343 million (2008: R280 million), commensurate with the borrowings in the business.

Cash inflow from operations, before tax payments, was R1,390 billion (2008: R1,128 billion). Tongaat Hulett’s net debt at the end of December was R3,370 billion (compared to R3,064 billion at June 2009 and R2,356 billion at the end of 2008) with significant capital expenditure, mainly on the Mozambique expansion, cash absorption in sugar cane growing crops and replanting of sugar cane in Zimbabwe.

Outlook

Tongaat Hulett’s financial year-end has changed to 31 March, with effect from the current financial year. A March year-end corresponds with the sugar season in all the countries in which Tongaat Hulett operates. This is increasingly significant with the growth in the agriculture and agri-processing components of the business. Audited results will be published for the 15 months ending 31 March 2010. The final dividend declaration will coincide with the financial year-end of 31 March 2010.

The financial results for the 15 months to 31 March 2010 will include the revenue from a single sugar production season while the costs will be for a 15 month period, including those costs incurred from January to March in the off-crop period that are required to be expensed in the income statement.

A focal point for the business is the drive to increase sugar production from the 957 000 tons milled in the 2009/10 season to the installed sugar milling capacity of 1,9 million tons per annum, with a simultaneous reduction in the unit cost of production.

Tongaat Hulett, with its established and growing operations in agriculture, agri-processing and land conversion, remains well positioned for the emerging global dynamics of increasing demand for agricultural products, food, renewable energy and land usage.

Peter Staude
Chief Executive Officer

About Tongaat Hulett

Tongaat Hulett is an agri-processing business which includes integrated components of land management, property development and agriculture. Through its sugar and starch operations in Southern Africa, Tongaat Hulett produces a range of refined carbohydrate products from sugar cane and maize. It has considerable expertise in downstream agricultural products, biofuel production and electricity generation. Competition for water and alternative land usages is an ongoing dynamic. Tongaat Hulett optimises land conversion and development at the appropriate times. New dimensions for agriculture are emerging with the continued increase in demand for food products together with a world having to contend with climate change. Agricultural trade regimes are changing, with Africa and the European Union (EU) moving closer as a trade bloc. Opportunities for expansion and growth in Africa are thus emerging. Tongaat Hulett has the established business platform and size to capitalise on these opportunities.

Anglo American plc Disposes its Shareholding in Tongaat Hulett

Tongaat Hulett Limited
Registration number (1892/000610/06)
Share code: TON
SIN ZAE000096541

Tongaat Hulett shareholders are referred to the announcement made today by Anglo American plc on the completion of its sale of the shares it owned in Tongaat Hulett to institutional investors.

The 51.2 million shares held by Anglo American were all sold in their bookbuild equity placing process. No exchangeable bonds will be issued by Anglo American.

Peter Staude, CEO of Tongaat Hulett, says “The bookbuild process highlighted interest by institutional fund managers, with Tongaat Hulett shares now widely held both locally and internationally.”

The Anglo American announcement is available on the Stock Exchange News Service (SENS) on the JSE and the Regulatory News Service (RNS) on the LSE.

13 August 2009

Tongaat

Sponsor

INVESTEC BANK LIMITED

Anglo American Plc Shareholding in Tongaat Hulett

Tongaat Hulett Limited

Registration number (1892/000610/06)

Share code: TON

ISIN ZAE000096541

Tongaat Hulett shareholders are referred to the announcement made today by Anglo American plc in respect of a bookbuild process (involving Tongaat Hulett ordinary shares and exchangeable bonds issued by Anglo American) to dispose of the shares it owns in Tongaat Hulett to institutional investors.

Peter Staude, CEO of Tongaat Hulett, says “This is an opportunity to increase the liquidity of Tongaat Hulett’s listed equity and enhance the extent and spread of local and foreign shareholders. This transaction by Anglo American should remove the uncertainty that has existed in respect of its shareholding in Tongaat Hulett and enable increased investment by emerging market fund managers, who were previously constrained by the limited liquidity.”

The Anglo American announcement is available on the Stock Exchange News Service (SENS) on the JSE and the Regulatory News Service (RNS) on the LSE.

12 August 2009

Tongaat

 Sponsor

INVESTEC BANK LIMITED

Interim Results for the Half-Year Ended 30 June 2009

• Revenue of R3,9 billion (2008: R3,1 billion)
• Profit from operations of R864 million (2008: R443 million)
• Headline earnings of R440 million (2008: R252 million)
• Interim dividend of 100 cents per share (2008: 160 cents per share)
• Consolidation of Zimbabwe operations

Commentary by Peter Staude, CEO of Tongaat Hulett:

The first half of 2009 was characterised by the restoration of key macroeconomic fundamentals for the sugar business in Zimbabwe and limited opportunity for agricultural land conversion as a result of testing market conditions for property developers in South Africa. Headline earnings increased to R440 million compared to R252 million in the first half of 2008.

 Operating profit from agricultural land conversion and development amounted to R64 million (2008: R115 million) with a further R2 million in capital profits (2008: R15 million) being realised. During the first half of the year, 95 developable hectares (183 gross hectares) were sold, of which, 93 hectares were for affordable housing in the eThekwini growth corridor. Market conditions for property development in the prime residential, resorts and commercial sectors continued to be depressed, while the demand for land for affordable housing and industrial property in the Durban area remained positive. There is a shortage of established industrial logistics, support and service locations north of Durban, which continues to be the focus of attention, particularly with the new international airport under construction for 2010. Good progress has been made in areas such as Sibaya, Cornubia and Canelands in the planning and acquisition of development rights, with the conversion from agricultural land to take place at the appropriate time.

 The South African agriculture, sugar milling and refining operations contributed R77 million to profit (2008: R37 million). In the first half of 2009, raw export volumes from South Africaincreased to 93 000 tons (2008: 66 000 tons) and were sold at an effective world sugar price of 12,9 US c/lb (2008: 10,8 US c/lb) at an average exchange rate of R8,34/US$ (2008: R7,50/US$). South African domestic sales were 240 000 tons (2008: 230 000 tons). In 2009, sugar production is estimated to be 638 000 tons compared to the 644 000 tons produced in 2008.

 The downstream sugar value added activities contributed R94 million to profit (2008: R75 million). The South African refined exports, domestic marketing, sales and distribution activities benefited from increased realisations and delivered another good performance, as did Voermol and the Botswana and Namibian sugar packing and distribution operations.

 In Swaziland, Tambankulu Estates is expected to produce a raw sugar equivalent of 53 000 tons (2008: 56 000 tons) and has benefited from higher realisations within the Swazilandsugar industry. Operating profit grew to R34 million (2008: R29 million).

 The Mozambique profit from operations increased to R134 million (2008: R77 million), with the growth in the agricultural activities contributing significantly. The expanded mill at Xinavane commenced limited crushing in June and will be in a ramp-up phase until the end of August. Production at Xinavane this year is expected to be above 150 000 tons (2008: 63 000 tons) in an extended season, weather permitting. Mafambisse’s sugar production is expected to be 83 000 tons (2008: 45 000 tons), following the expansion completed in 2008.

 The Zimbabwe sugar operations are now consolidated in Tongaat Hulett’s financial results. This consolidation follows the macroeconomic changes that essentially occurred when Zimbabwe moved to a US dollar and Rand based economy and, in so doing, restored relevant key fundamentals to the economy. The accounting treatment, in terms of International Financial Reporting Standards, on the commencement of consolidation of these operations gives rise to a balance sheet take-on gain of R1,969 billion, which is recognised in the income statement. This gain is excluded from the profit from operations and excluded from headline earnings. The profit from operations in the first half of 2009 in Zimbabwe was R305 million (compared to the dividend received of R35 million in 2008). Sales to the domestic market were undertaken in US dollars at levels in line with regional pricing and export shipments to the European Union were fulfilled. The milling campaign got underway in the second quarter, with sugar production in Zimbabwein 2009 expected to be similar to the 298 000 tons produced in 2008.

 Profit from the starch and glucose operations was R112 million (2008: R103 million). A second successive season of favourable agricultural conditions in South Africa resulted in local maize prices trading close to world prices for a large part of the period. The positive effects of improved margins were offset by reduced demand. Sales volumes in the local market declined by 4,3% with growth in confectionary and coffee creamer sectors being offset by declines in the paper and alcoholic beverage sector. Sales to the industrial sector are expected to remain below last year, while sales to the alcoholic beverage sector are expected to recover in the second half of the year with the commissioning of a new brewery in Gauteng that will replace current imported beer sales. Approximately 90% of customer sales contracts for the current year have been concluded with maize procured close to world price levels.

 The centrally accounted and consolidation items include an R82 million gain on the recognition of an unconditional entitlement in the first half of 2009 to an employer surplus account allocation in the Tongaat Hulett pension fund.

Cash inflow from operations was R253 million (2008: R180 million). Tongaat Hulett’s net debt has increased to R3,064 billion from R2,356 billion at the end of 2008 with significant capital expenditure, mainly on the Mozambique expansion and the cash absorption in sugar cane growing crops. Finance costs increased to R151 million, commensurate with the borrowings in the business.

The Board has declared an interim dividend of 100 cents per share (2008: 160 cents per share).

Outlook

Profit from operations in the second half of the year is expected to be below that achieved in the first six months. Agricultural land conversion opportunities are limited in current market conditions. A stronger Rand would affect export realisations from South Africa and the profit in Rands reported by the operations outside South Africa. Profit from operations inZimbabwe in the second half is likely to be well below the first half of the year, which included the benefit of the recovery of pricing and its impact on sugar stocks and the value of cane. The seasonal nature of cane growing leads to operating profit in the first six months which includes the increased value from the growth in the cane crop. Following the anticipated cash absorption in the Mozambique expansion, significant cash inflow is expected to commence in the latter part of 2009 and early 2010.

In Zimbabwe, management attention is focused on improving cane yields and the re-establishment of outgrower cane lands, so as to restore sugar production to the existing installed capacity of 600 000 tons per annum from the current production level of some 298 000 tons. Similarly, the attention in Mozambique is on moving from the 105 000 tons produced in 2008 to the newly installed milling capacity of 300 000 tons per annum. BothZimbabwe and Mozambique benefit from preferential access to the attractive European Union markets.

The current dynamics of a higher world sugar price are encouraging for the South African sugar industry. Improved returns from sugar cane farming will encourage an improvement in farming practices and increased hectarage under cane, leading to improved milling capacity utilisation.

The structural changes that are taking place in international agricultural commodity markets are resulting in improved competitiveness of South African maize and the starch operations, which have additional capacity for local and export growth. Southern Africa has the opportunity to become a sustainable net exporter of maize in the medium term.

Land and property development activity is currently focused on the growth corridor north ofDurban that commences inland of Umhlanga/Umdloti, extends around the new international airport at La Mercy and includes the greater Tongaat region. Tongaat Hulett owns 5 906 gross hectares in this corridor. Given the housing backlog and Government’s commitment to infrastructure spend, there is both opportunity and socio-economic urgency to establish communities with affordable housing in this area and to accelerate land conversion for airport services and support logistics, niche industrial, health care, education and social facilities. In the present economic conditions, few hectares are likely to be converted to development in the high value, prime locations on the coastline (Tongaat Hulett’s 6 006 hectares) and to the west of eThekwini (2 050 hectares) and the focus is on securing infrastructure and development rights, for conversion at the appropriate time.

Tongaat Hulett, with its established agricultural and agri-processing operations in Southern Africa, remains well positioned for the emerging global food, agricultural products and renewable energy demands.

Peter Staude

Chief Executive Officer

About Tongaat Hulett

Tongaat Hulett is an agri-processing business which includes integrated components of land management, property development and agriculture. Through its sugar and starch operations in Southern Africa, Tongaat Hulett produces a range of refined carbohydrate products from sugar cane and maize. It has considerable expertise in downstream agricultural products, biofuel production and electricity cogeneration. Competition for water and alternative land usages is an ongoing dynamic. Tongaat Hulett balances the operational requirement for cane supplies to its sugar cane processing operations with the transition of agricultural land to other uses at the appropriate times. It is well positioned to benefit from the changing world of agriculture and agri-processing.

Amanzimnyama

Tongaat, KwaZulu-Natal

3 August 2009

Trading statement for the half-year to 30 June 2009 and withdrawal of cautionary announcement

Tongaat Hulett issues this Trading Statement on the expected results for the half-year to 30 June 2009, based on the consolidation of the Zimbabwe operations as explained in the cautionary announcement of 18 June 2009.

Tongaat Hulett’s profit from operations for the six months to 30 June 2009 is expected to increase to R864 million (2008: R443 million). This includes profit from the starch operations of R112 million (2008: R103 million) and profit from land and property development of R64 million (2008: R115 million). The profit from the sugar operations totals R644 million, of which Zimbabwe constitutes R305 million (compared to the dividend received of R35 million in 2008) and the various other sugar operations constitute R339 million (2008: R218 million). A net gain of R44 million is reflected in centrally accounted items (2008: R28 million cost), which includes a gain of R82 million on the recognition of Tongaat Hulett’s unconditional entitlement, in 2009, to a pension fund surplus in respect of a 2007 surplus apportionment.

The consolidation of the Zimbabwe operations follows the macroeconomic changes that essentially occurred when Zimbabwe moved to a US dollar and Rand based economy and, in so doing, restored key relevant fundamentals to the economy. This removed many of the distortions that existed in the Zimbabwean economy, which included unrealistic local market sugar price realisations, not receiving the full benefit of export proceeds, exchange rate uncertainty and foreign currency restrictions, shortage of inputs and the effects of extreme hyperinflation. Previously, in terms of the relevant international accounting standard, these operations were not consolidated and were accounted for on a dividend received basis. As a result of the changes at the beginning of 2009, Tongaat Hulett meets the requirement for consolidating its Zimbabwean operations in terms of the relevant international financial reporting standards (IFRS). The accounting treatment in terms of IFRS on the commencement of consolidation of the Zimbabwe operations gives rise to a balance sheet take-on gain of R1,969 billion, which is recognised in the income statement. This gain is excluded from the profit from operations detailed above, excluded from headline earnings and included in total net profit. 

Headline earnings for the first half of 2009 are expected to be R440 million (2008: R252 million). Headline earnings per share are expected to be 426 cents per share (2008: 245 cents per share). Total net profit for the six months is expected to be R2,419 billion with net profit per share being 2343 cents per share (2008: total net profit was R266 million and net profit per share was 258 cents per share).  

This trading statement is issued in compliance with the JSE Listings Requirements. The above information has not been reviewed and reported on by the auditors.

The cautionary announcement of 18 June 2009 is hereby withdrawn.

The interim results for the half-year ended 30 June 2009 are scheduled for release on Monday, 3 August 2009.
Tongaat
22 July 2009

Hippo Valley Estates Limited

The Country’s accelerated economic decline reached unprecedented levels during the year under review, with hyperinflation reaching a last recorded peak of 231 million per cent in July 2008, on the back of a rapidly shrinking industrial and commercial base.

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Fire at raw sugar storage facility at sugar refinery

(formerly The Tongaat-Hulett Group Limited)
(Registration number 1892/000610/06)
Share code: TON
ISIN ZAE000096541

MEDIA RELEASE – FIRE AT RAW SUGAR STORAGE FACILITY AT SUGAR REFINERY

Tongaat Hulett said that a fire had broken out at the raw sugar storage facility of its sugar refinery operation in South Coast Road, Durban. The fire broke out at approximately 04:40 today and had been extinguished by 08:00.

Tongaat Hulett Sugar South Africa MD, Martin Mohale says “Two of the three raw sugar stores were destroyed by the fire and a third store was partially damaged.
The sugar factory was not affected. There were no injuries. We are investigating the exact cause of the fire and the impact that it will have on operations.

Tongaat Hulett will be able to continue supplying our local customers based on the level of finished product that we have available. We are already working with our insurers in order to determine how soon we can start rebuilding of the affected facilities.”

Martin Mohale concludes, “I would like to thank the eThekwini Fire Department for the important role that they played in ensuring that the blaze was extinguished so quickly.”

Tongaat

09 May 2008
Sponsor

INVESTEC BANK LIMITED

Date: 09/05/2008 13:41:01 Produced by the JSE SENS Department.

The SENS service is an information dissemination service administered by the JSE Limited (‘JSE’). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers employees and agents accept no liability for (or in respect of) any direct indirect, incidental or consequential loss or damage of any kind or nature howsoever arising, from the use of SENS or the use of, or reliance on information disseminated through SENS.

Retirement and appointment of chairman

Cedric Savage, who has reached mandatory retirement age, retires as Chairman and Director of Tongaat Hulett at the Annual General Meeting on 29 April 2009. The board has appointed JB Magwaza as Chairman with effect from that date.

 Cedric Savage joined Tongaat Hulett in 1977, was appointed to the board in 1981 and became Chairman of the board in the year 2000. He presided over the major streamlining of Tongaat Hulett during his time as Chief Executive from 1991 to 2002.

 Cedric Savage says, “I would like to congratulate JB Magwaza on his appointment and wish him well in providing leadership to the board at this very exciting time in the company’s history. He has made a valued contribution to the Tongaat Hulett board since his appointment in 1994 and I am confident that he will excel in his new role.”

 “I am honoured to accept the appointment as Chairman of the board and would like to thank Cedric Savage for his outstanding contribution to the company over 31 years of dedicated service. Tongaat Hulett has benefited from his vision and business acumen and I am looking forward to serving the company in my new capacity as we continue to build on the established platform,” said JB Magwaza.

 Tongaat Hulett CEO, Peter Staude concludes, “We are delighted to welcome JB Magwazaas our new Chairman and look forward to his wise counsel and support in the coming years. Tongaat Hulett and all its stakeholders have greatly benefited from Cedric Savage’s leadership, firstly as CEO and later as Chairman. We wish him well in his retirement.”

 JB Magwaza is the founder of Nkunzi Investment and Chairman of Imbewu Capital Partners (Pty) Ltd, a black owned and controlled private equity and investment holding company. He commenced employment with Tongaat Hulett’s sugar operation in 1975 as an Industrial Relations Consultant and after being promoted to various positions in the company was appointed to the Tongaat Hulett board as an executive director in 1994. JB Magwaza retired in 2003, remaining on the board in a non-executive capacity.

 He is Chairman of Mutual and Federal and Pamodzi Investment Holdings serving on numerous boards including Rainbow Chickens, Nedbank and Hulamin. In addition, JBMagwaza is a founding member of the Black Management Forum (BMF) and a past President of the Institute of Personnel Management.

 Born in 1942, JB Magwaza attained a BA in Social Anthropology at the University ofZululand. He holds numerous other qualifications including an MA Industrial Relations from Warwick University in the United Kingdom.

 Amanzimnyama, Tongaat

1 April 2009