Tongaat Hulett

Tongaat Hulett Germiston Mill

LEADING AGRI-PROCESSING AND LAND DEVELOPMENT
Tongaat Hulett is an agricultural and agri-processing business which includes integrated components of land management and property development. 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.

Over the past century, Tongaat Hulett has established itself as a leading large scale agri-processing business which has its base firmly established in Southern Africa. Demand for food products is increasing worldwide, climate change and renewable energy have introduced a new dimension to agriculture and agricultural trade regimes are changing, with Africa and the European Union (EU) moving closer as a trade bloc. Further opportunities for expansion and growth in Africa are thus emerging. Tongaat Hulett has the established business platform and size to capitalise on these opportunities.

The successful management of the socio-economic and political dynamics of agriculture, land, water, agri-processing, food and energy are integral to the business. The growth and development of Tongaat Hulett's operations, in the selected regions in which it operates, have involved establishing credible partnering relationships with local communities, governments and employees over time.

Its 25 percent South African Black Economic Empowerment (BEE) equity participation transactions and involvement in post settlement land claim solutions, the partnership with the Mozambique government in establishing the Mozambique sugar operations and its programmes to establish indigenous cane farmers in Zimbabwe illustrate the level of understanding and extent of relationships in the region.

The integrated business model involves land and water management, agriculture, agri-processing and the conversion to development and other uses at the appropriate times. Tongaat Hulett is able to maximise value through the various phases of land usage, from acquisition, agriculture and agri-processing to the conversion to development. This carefully managed process continues to enhance the value of Tongaat Hulett's remaining land. As Durban grows, investments like the new King Shaka International Airport will highlight the importance and value of Tongaat Hulett's agricultural land with development potential.

Tongaat Hulett's wet-milling operation is the major producer of starch and glucose on the African continent. Established in 1919, the starch operation has grown to be an important supplier to a diverse range of South African and African industries. Operating five wet-milling plants, Tongaat Hulett converts more than 600 000 tons of maize per annum into starch and starch-based products.

It manufactures a wide range of products, from unmodified maize starch to highly refined glucose products, which are key ingredients for local manufacturers of foodstuffs, beverages and a variety of industrial products. The expansion of the economically active population in the South African economy is positive for the volume growth of these products.

Tongaat Hulett Sugar Refinery in Durban

Possessing a portfolio of sugar operations and assets in some of the lowest cost sugar production areas in the world, coupled with its leading Huletts® sugar brand, world class technology and preferential market access, Tongaat Hulett is in the advantageous position of being able to capitalise on the changing sugar fundamentals in world markets. Tongaat Hulett conducts its business operations in a manner that seeks to create value for all stakeholders, is sustainable and contributes meaningfully to the social and physical environment in which it operates. A high priority is placed on all aspects of safety, health and environment.

CORPORATE SOCIAL INVESTMENT
Tongaat Hulett continues to promote sustainable development through constructive Socio-Economic Development (SED) initiatives, which are aimed at building and enhancing the quality of life of people, with emphasis on previously disadvantaged communities within which Tongaat Hulett operates. A well-entrenched SEDpolicy existswithin the company, with guiding principles on key focus areas for social responsibility activities. SED spend is mainly directed at education, health, community skills upliftment, charitable organisations, environmental needs and crime prevention.

In addition to the donation of funds to worthy projects, expertise is made available by company management to guide community projects. Where appropriate, SED initiatives are linked with business objectives through a corporate social partnership approach, to ensure that the company's involvement is in line with community priorities. The total SED spend for the 15 months to 31 March 2010 including the cost of company sponsored occupational and primary health care services was R130,7 million.

2010 SUSTAINABLE DEVELOPMENT HIGHLIGHTS INCLUDE:
 

• Tongaat Hulett's inclusion in the 2010 JSE's Socially Responsible Investment (SRI) index for the six year in a row and being ranked among the 23 best performing companies on the JSE SRI Index.
• Being ranked first in the Food & Beverages sector of the Financial Mail's Top Empowerment Companies 2010.
• Tongaat Hulett has a BEEscorecard rating as a Level Two Contributor with a score of 86,49 percent achieved in 2010.

Full Name of Company: Tongaat Hulett Ltd
Nature of Business: Agriculture, Financial and Business Services
Services / Products:
We are:
1. South Africa's leading supplier of refined carbohydrates.
2. A world leader in sugar milling technology.
3. Our Huletts' brand is the second most admired food brand in South Africa.
4. The major producer of starch and glucose on the African continent.
5. Tongaat Hulett optimises land conversion and development at the appropriate times mainly in the KwaZulu-Natal coastal corridor north of Durban.
Date Established: 1892
No. of Employees: >42 000
Operations: Tongaat Hulett Developments, Tongaat Hulett Starch, and Tongaat Hulett Sugar.
Auditors / Accountants: Deloitte
Bankers: FNB, Nedbank, Standard & ABSA
Advertising / PRO Agency: Paton Tupper
BEE Status: Level Two Contributor

KEY PERSONNEL
Chief Executive Officer- CEO: Peter Staude
Chief Financial Officer- CFO: Murray Munro
Property Development Operations Executive: Mike Deighton
SA Sugar Operations Executive: Martin Mohale
Starch Operations Executive: Garth MacPherson
Company Secretary: Maditshaba Mahlari
Investor Relations Executive: Michelle Jean-Louis
Renewable Energy Executive: Nico Kruger

CONTACT DETAILS
Corporate Office
Physical Address: Amanzimnyama Hill Road, Tongaat
Postal Address: P.O. Box 3, Tongaat, 4400
Tel: +27 (0)32 439 4000
Fax: +27 (0)32 945 3333
E-mail: info@tongaat.co.za
Website: http://www.tongaat.co.za