INVESTMENT CASE


Tongaat Hulett creates value for all stakeholders through an all-inclusive approach to growth and development.

From an investor perspective, the business’s strategic positioning and objectives focus on the following key points:

Growth from existing sugar and starch asset and business base  
Firstly, increasing sugar production by some 50 percent from existing unutilised milling capacity - low cost and high incremental profit per additional ton of sugar produced. Platform for further brownfield/greenfield regional expansion  
Increasing cane supplies - higher yields and greater areas under cane, with a particular focus on developing private farmers  
Well-established market positions, brands and market opportunities - local, African, EU and other international markets  
Renewable energy opportunities to increase revenue from sugarcane - electricity generation from fibre and ethanol production to replace export sugar  
Starch - local and African market growth, supplied from existing available wet-milling capacity  
Socio-economic position going from strength to strength  
Strategic positioning in the region is underpinned by the inextricable link between agriculture, sugar production, rural jobs and community development, government and local authorities, unlocking infrastructure investment and the conversion of cane land to development  
Land conversion  
Unique land portfolio and well-established development platform - in the fastest-growing area of KwaZulu-Natal  
Accelerating pace of land conversion, increasing momentum and substantial step-up in value being unlocked, with cash generation  
People - multiple advanced core competencies, good governance, strong executive and Board leadership  
Sound sustainability strategy and track record - from environmental stewardship through to the specifics of safety at the operations  
Strong balance sheet with high-quality assets  
Increasing earnings and cash flows - leading to higher dividends