Omnia Holdings Limited (OMN) Earnings Call Transcript & Summary

Good morning, everyone. By way of the introduction, my name is Nerina Bodasing. I'm the Group Executive for IR and Comms for Omnia. I just want to extend a very warm welcome to all of you to our 2025 financial year-end presentation. As you know, safety is a core value for Omnia. And before we start any of our meetings or any major event, we always have a safety share. And I would like to welcome Ditebogo Malatsi, our Executive for SHEQ and Sustainability, to provide us with the safety share.

Good morning, and thank you, Nerina. So, several countries across the world actually observe safety month in the month of June. And the purpose of this is to raise awareness around the importance of safety in the workplace, at home, and on the road. And one of the key themes and practices, really for the safety month, is emergency preparedness. Emergency preparedness is the plan to keep yourself, your teams, your community, and your family even safe during unexpected events. This can be natural disasters. This can be fires and medical emergencies that can happen in the home. And just being prepared just helps us in instances to be able to save lives, to reduce injuries where injuries happen, and basically to just be able to return to normal as quick as possible. Some of the key elements of emergency preparedness planning, firstly, is know your risks. So what are the types of emergencies that can affect your area or your families. For example, if you've got people in your families that have certain medical conditions, you need to be able to plan around that. Being able to stay informed with your local authorities, credible news agencies about some of the weather-related, accident-related, incident-related incidents in your area. The second part is developing an emergency plan that can be communicated with your teams and family. And what's important here is just writing it down so that anyone in your family has easy access to the plan should anything happen. This plan should include evacuation routes and assembly points. Basically, how does someone get out if there's an issue, and where do they go? Secondly, roles and responsibilities, who does what in case of an emergency. Their communication method, who do you contact and how do you contact them? So if there were an emergency in your home, would your children know who to contact if you are not able to. And lastly, just the basic medical assistance or first aid protocols. Thirdly, build a small emergency kit. This can include things as small as drinking water, first aid, and fire extinguishers, and important documents such as IDs and insurance documents. So these are the things that you need to deal with, for example, your insurance providers in case of a fire, but bring it back home. Similarly, Omnia does have an emergency preparedness plan in place. So we do not have a safety drill that is planned for today. So, should you hear an alarm inside the building, it means there is an emergency. First of all, please do remain calm and walk briskly towards your emergency exit. We've got 2 for this room. So the first one is to my right, just down the hall. The second is the entrance door where you came in this morning. Please walk towards your assembly point. The assembly point for this room is 0. So there is a poll that has a 0 written on it outside. Just wait there for roll call to be taken. Please refrain from smoking when you are at the assembly point. Once roll call has been taken and the emergency controller has declared the building safe to come back in, it's only at that point when you can come back in. Thank you, and back to you, Nerina.

Thank you, D, and thank you for those important words. With that, let's move on to the main part of our program, the results presentation. The agenda for today is as follows: our CEO, Seelan Gobalsamy, is going to begin the presentation and give you a high-level overview of the results. Ditebogo will then take us through our safety and ESG performance. Stephan Serfontein, our Finance Director, will take us through the details of the financials. And finally, Seelan will return and share our strategic outlook, and we'll open the floor to Q&A. I will now hand over to Seelan.

Thank you, Nerina, and good morning, everybody. Good morning to our Board members online, all of you in the room, our shareholders, our management that are listening in, and other stakeholders. I really appreciate you coming. Ditebogo mentioned the safety drill, but we were planning for snow today in Johannesburg. So thank goodness, there's no snow outside and the weather is doing its part. Today, we're just going to talk through our results. And I think I'm sharing with you another strong set of results that I think the team can be proud of, and it demonstrates our focus and our resilience. No company is strong without a very clear purpose. So the first point I just wanted to raise is just remind all of you what our purpose is, innovating to enhance life and together creating a greener future. Our company is underpinned by strong, strong ESG principles. And 3 things that has underpinned some of our results and also underpinned what we're going to be doing going forward is innovation, sustainability, and collaboration. And if I just pause a little bit on innovation, you'll see a number of our customer value propositions in the deck, and what we talk about is underpinned by our teams working together to do things differently. We do things differently, not only in our support functions like supply chain and finance, and others, but we also do things differently right at the front end with our customers. And you see that with the way we think about the solutions we sell to farmers, focused heavily on yield enhancement, focused heavily on nutrient and water use efficiency. Similarly, in our Mining business, if you look at our detonators, if you look at the predictive analysis tools we have around fragmentation and how the pile is fragmented. Also, if you look at the used oil we're using in our emulsions, hugely underpinned by innovation. Added to that, we know that the world needs food and the world needs mineral extraction. That is a big part of how we think about why we do what we do. And our plants, our products and our solutions have a huge underpin of lower CO2 emissions, water use efficiency and also the ability to do things better for the environment, and we'll talk a little bit about that. Finally, all of this cannot be done without people. So our people need to collaborate. They need to collaborate with each other. They need to collaborate with our suppliers. They need to collaborate with our customers. And a large chunk of our growth, which you'll see coming -- has come through and coming through in our Mining business, it's around us having partners. Where has that landed us today? We put out a set of results that really shows the continuation of our strategy execution. It shows that what we said we would do 5 years ago is still being done. It's been done in an environment that has changed, in an environment that is continuously changing, but also, it's done on a way that's focused on disciplined capital management and disciplined execution. We show a very, very strong cash generation and a strong distribution to shareholders. Our outstanding performer is our Mining segment. Our Mining segment has shown CAGR over the last 5 years of 41% growth. And our Mining segment today equates to 60% of the overall business of Omnia. Our Mining segment is the largest segment in our group and continues to grow. We also show some very strong volumes in our Agri SA business and volume growth in our Agri International business. And you'll see how that has enhanced our profits and our margins in both those businesses. Unfortunately, we've had significant headwinds in the rest of Africa, in agriculture and the accelerated restructuring in Protea has detracted from our results. We've got one-off costs of circa ZAR 100 million in our earnings relating to Protea. And you will see a loss that has come through out of the rest of Africa, our agriculture business. Having said all of that, what you see is a strong earnings being generated, disciplined cash flow, a very, very strong working capital position, a strong balance sheet, again, a net cash position and then dividend distribution to shareholders. Our revenue, 3% up. Cash generation, ZAR 2.5 billion. Our net cash balance at the end of the year, ZAR 1.8 billion. Our working capital at 15% to revenue. A very, very strong performance, and we can talk a little bit about the detail in there. There's still more to come. And then capital return to shareholders, an ordinary dividend of ZAR 4 a share, a special dividend of ZAR 2.75, and that's on top of us having bought back shares during the year. This strong performance is underpinned by our 2 core operations. I think if -- those of you who have been following Omnia for a number of years, you would know that we've streamlined the balance sheet. We've come out of noncore investments like Umongo. We disinvested from Oro Agri. And later on, I'll show you a few other smaller disinvestments we've made. We've focused our business around mining and agriculture. We've taken away all of the peripherals. And today, you will see the changes we've made in Protea Chemicals. And both these 2 core businesses have delivered incredible results for us. Our Mining business underpinned by volume growth and contract wins. We've seen volume growth not only in South Africa, but also in SADC, great profits out of West Africa. Our joint venture in Indonesia continues to do what it's set out to do. And our mining chemicals business is also adding to the growth in the mining sector. We've got some contract wins in Namibia with some of the uranium mines there, and we can go into a little bit of more detail of that in the Q&A. Our Mining business is above its target margin guidance at 12.4%. I'm sure a lot of you will ask me later, we're going to change that guidance range and our profits at ZAR 1.13 billion. From an agriculture perspective, our Agriculture business remains incredibly strong. We've got good, good customer propositions there. In South Africa, our Head of Sales and Marketing has been able to secure incredible volumes. We continue to move the market into specialties, more value-added solutions that enhance crop yield for the farmers. And we also do that in a more sustainable way by using less water, less chemicals, less nutrients. We continue to see that favorable outlook in agronomic conditions locally and in the rest of SADC. I've already said that, obviously, the rest of Africa detracted from this result. You'll see strong performance from our business in Australia again, volumes up, margins up and profits up. And that business continues to do what we planned it to do over prior years. I'm going to pause here and just hand over to Ditebogo again just to talk to you about our ESG indicators and safety. Thank you.

Thanks, Seelan. I think just starting with safety in mind. From an Omnia perspective, last year, we had, I think, one of our best safety performance outcomes, and this is measured predominantly using our recordable case rate. But what we've seen this year is it hasn't been a great year for us. And as a management team, we are disappointed by this movement. This movement has predominantly been in the agriculture and manufacturing segments. So I think looking forward, collectively, the management team has had several engagements on this over the past couple of months. And I think some of the key focus areas is firstly, just having our management be able to be visible and felt and present on our facilities, just leading from the front, reminding our people why safety is so important because we want our people to come to work and go home in the same condition back to their families. We'll be focusing a lot on reducing what we call avoidable incidents. Because of the conditions of our road, a lot of the climate change impact, there's a lot of things that come at us, and we need to be able to respond to those. But where things are avoidable, where incidents as a result of people's behaviors, we're committed to working harder to actually reducing those because while as you see from the international benchmarking, we may be comparable or thereabouts, from our own standards, we're choosing not to accept this because we say we are committed to zero harm and need to show in our results as well. And what's important is all of this will be underpinned and continues to be underpinned by our values and the behaviors that we subscribe to. This is ensuring that we've got safe practices and standards in our facilities. This is ensuring that we encourage our staff members to have an open dialogue to speak up and to share their concerns and ideas around our operations and which obviously has an impact on our safety. And lastly, it's just acting responsibly because that is what we do. It's important to do that. We're not doing it for the safety performance. We're doing it because we have a lot of people in our communities and in our facilities that we care about. Moving on to our environmental performance. We've shared these slides for a number of years now. And what we're seeing is Omnia remains committed to improving our greenhouse gas emissions, and we're seeing the intensity outcomes improving year-on-year as well. And this is predominantly due to the continued servicing of our tertiary abatement system, specifically in our nitric acid plants and the increased use of renewable energy in our facilities. From a renewable solar energy perspective, specifically, we're seeing an increase from year-on-year, and this is predominantly due to the Phase 1 and Phase 2 solar plants that is at our Sasolburg facility. But what you don't see here is that over and above the solar energy, we generate our own electricity from Triveni, and that increases our total renewable and self-generated energy to over 35,000 megawatt hours. And lastly, one of the utilities that are critical for our own operations, our production is water. But the trick with that is that it's also a basic human right. So, we, as an organization, have continued to focus on the use, treatment and reuse of water in our facilities to ensure that we have water that's left clean for communities. But over and above that, we're also using used oil in our emulsion product. And what that does is ensures that used oil, essentially waste oil that could have ended up importable water is used in our production facilities is taken out of the environment, leaving potential for contamination of water reduced. And then looking forward, last year, we introduced our refreshed ESG strategy. I think in the past couple of months or years or so, we've seen globally a number of countries, a number of companies that have been going back on their ESG commitments. But what we've done is saying ESG is integral to our organization. It's integral to what we do. Omnia has been on a sustainability journey for over 10 years. So, this is not new to us. But what we have done is said, we have focused on our ESG initiatives predominantly in our manufacturing facilities. Last year, we went, and we refreshed our strategy to look across our full value chain. And we went a step further to say we've actually seen that we have met a lot of our environmental targets. We're actually going to extend our environmental targets and set more stringent targets for ourselves leading to 2030. While you see on the slide that majority of the targets that are up here are linked to environmental initiatives, we do have other targets in our social and in our government -- governance not government to ensure that -- we actually have ESG targets across the full scale of ESG. And what's important to note is whereas in the past, like I said, our ESG targets were focused predominantly in our manufacturing facilities. We are actively now setting targets and looking to collaborate with upstream our suppliers, downstream our customers to ensure that collectively, we can actually enhance our ESG outcomes. So, in summary, if you were to ask us what our ESG program -- ESG targets are looking at now is improving efficiency. It's focusing on circularity and it's collaborating with our suppliers, our customers and our communities. I'm going to hand back over to Seelan to give us our business update.

Thank you, Ditebogo. I think if we think about sustainability and ESG, Omnia can be incredibly proud of itself. We've been focusing heavily on this. And a lot of the investments we've made over the years in solar, in reverse osmosis water, in our trains, in our actual production facilities has helped us immensely. And you'll see some of that coming through 1 or 2 of the slides a little bit later. So, if I press ahead and let's just talk a little bit about the environment. And the one thing I didn't want to do is give you a picture of Mr. Donald Trump on this slide. So, we kept it quite wordy. But in essence, what you do know is we operate in a very complex global world. There's an immense amount of uncertainty. There's an immense amount of volatility. And when we talk internally, we discipline ourselves to think very carefully about when we act and when we do things and when we respond and how we respond. So, I think this challenging operating environment continues to be that for us. And I just wanted to pick out a few themes. The first one is the geopolitical tension has increased volatility in various of the markets and countries we operate. We saw some of that in Mozambique. We see a change in terms of U.S. aid and tariffs across the world. And ultimately, what we're seeing is a world that we all know is a global village. When we studied, we were told it's a global village and a global supply chain. We're now seeing it's more of a high level of protectionism and it's more local village. So you need to be able to do it yourself, whether it's from a water or an energy perspective, but you also need to have your inputs, your fertilizer, your explosives close to your customers. And that has impacted the way we think about things and the way we do things. I've mentioned the geopolitical issues in Zambia, Mozambique and Zimbabwe. But what you've also seen is significant impacts due to climate change, drought that impacted electricity supply in Zambia and also the issues of port disruption and others that we've seen in Mozambique that's actually impacted supply chain all the way into the entire SADC region. Rainfall and climate change also is heavier and more excessive. So often the rain is harsher than what you've seen and often the drought is a little bit worse than what we've seen previously. This talks directly to Omnia's customer value propositions. Our value propositions are out there to help farmers and help mines do things better, do bigger blasts, do more complicated blasts, use less water, enhance crop health, respond to some of the issues that are faced from a climate perspective. We also have some supporting dynamics. So often when we do these slides, it's all bad news, and we challenged ourselves and said there are some supporting dynamics -- we operate in these primary sectors of agriculture and mining. And what we know is that the sectors we operate in is positively disposed to food security, and there's a high demand for that. Most countries cannot feed themselves. They need to import food. And from a mining perspective, we know that the population growth, urbanization, the need for certain metals is not going to go away. And we're seeing the positive impacts of that in our business. What we also know is there's a high need for a strong ESG underpinned business. And all of our propositions at the front end are focused to reduce water, reduce clean oil to be able to do more complex blasts to enhance fragmentation and from a Nutriology perspective to enhance the yield for our customers. Last year, I visited one of our farms, and I was absolutely amazed to see the Omnia agronomist on the farm, look at the yields and actually see how we enhanced the tonnage of apples that was delivered in that farm so substantially. What did that all land up with? So with that backdrop, predominantly negative, where did -- how did our company perform? What you're seeing is solid cash being generated and the quality of our earnings being higher. 60% of our business is now explosives. Our explosives business has grown by 41% CAGR over the last 5 years, and that brings in a much higher quality of earnings, much higher and faster turn of working capital and a business that is less correlated to commodity prices. Our revenue 3% up, our gross margin, 3% up. Our operating profit fairly flat, taking into account that we've got ZAR 100 million of once-off restructuring costs related to Protea in there, and we've seen significant headwinds in SADC. Our operating margin down to 7.4%. That would have been 7.9% if we didn't put in the Protea restructure cost and our headline earnings per share up 2%. I think where that has landed us -- before I go there our return on equity, 10.9%. We can also discuss that a little bit later, so you can see the impact that some of our restructure cost has had there. And our working capital, very good, disciplined working capital management yet again. We've got 2 items of additional working capital in -- we put in more working capital for a massive Sasol shut that's underway in Sasolburg and some additional working capital stuck in Zambia. But even with that, our working capital is 15% to revenue and probably the best it's been in a number of years. A strong net cash position of just under ZAR 1.8 billion, ZAR 2.4 billion of cash generated for the year, and that resulted in the Board declaring an ordinary dividend of ZAR 0.40 -- ZAR 0.400, sorry, which is ZAR 0.25 higher than last year. I think the increase in the ordinary dividend demonstrates the quality earnings and it demonstrates our confidence in the earnings and cash generation that -- where the business is at. Added to that is a special dividend of ZAR 2.75, and I think we can talk further about that in terms of our capital allocation a little bit later. So how did we achieve that? We've said before that there's a few things we look at in our company, margins, working capital and cash generation. So from a profitability perspective, and maybe I'll start with chemicals. Protea has been a perennial challenge for us. Probably for 2 decades, Omnia has really battled with this asset. We've seen it ebb and flow in terms of profitability. And in the current period, what we did was we accelerated the restructuring in that business. So we split the business into 3 pieces, a piece that we unfortunately had to close down from a people perspective and an infrastructure perspective and then a piece of the business that we will keep and will be profitable going forward. And that business will probably make circa ZAR 100 million profit in coming years for us. And that business, we will keep, and we will probably synergize it with some -- one of our businesses internally. And then a third business, which we are now holding for sale, and we've disclosed it that way in our results, and we will dispose of that in the coming months. So that's the Protea story. We've got a chunk of restructure costs, ZAR 100 million in our result this year. And I think what you'll see us speak a little bit less about the Protea business going forward because post this restructure, our challenge will be behind us. Our Mining business, by far, the star performance in our portfolio. The Mining business, strong, strong execution again. It assists with the diversification of Omnia to be more correlated to explosives. A number of new contract wins that the team have been able to sign up, contract renewals as well, strong growth in South Africa, the Rest of Africa, West Africa, significant growth out of Namibia from the chemical side. And whilst we've still got mobilization costs in Canada and Australia, the business delivers the CAGR operating profit growth that we're showing. And obviously, from a margin perspective, 12.4%, so ahead of its margin guidance. From an agriculture perspective, we've seen very strong growth in Agriculture South Africa. So near record volumes, the continuous move to specialty, good margins. I think our agronomists and our sales teams have done very well in South Africa. We also saw very strong performance in Australia and Brazil. So you'll see that segment when Stefan puts it up later, has shown a very nice growth, margins strong and profitability is strong. We have got 2 large off takers in India and China that has driven the volumes as we expected. What detracted from this segment is the Rest of Africa. We've had weak Stephan in Mozambique, Zimbabwe and Zambia. And you'll see us when Stefan puts up his slide and we show the detail, you'll see us actually print a loss of ZAR 62 million in Agriculture SA. Having said all of that, the strong performance in our SA business, the strong performance in our manufacturing and supply chain and the strong performance in our international business has offset some of the challenges in Agri. Overall, our operations are strong. Overall, our margins are maybe it can be a little bit better if some of these one-offs are not there, but they're within range, and we will talk a little bit later about the guidance going forward. I think we can be incredibly proud to see the resilience of the team when you look at the disruptions that have happened last year. We have fulfilled all of our customer commitments and more. And we have not been -- we have been impacted, but we have not been negatively impacted from a customer perspective with any of the port logistics, supply chain disruptions that you've seen in the market. I think our disciplined capital allocation, cash management and are sticking to our capital framework is also something that we've done quite religiously in the last while. So if I just step one step further into the detail, the first part of our delivery is our supply chain and our manufacturer. And I think we told you a few years ago that we will set up an additional revenue or profit generator from that perspective. Our third-party ammonia derivative sales have been on the increase. You can see that they are roughly 4x up of where they were in 2020, 2021. And a lot of that business, the team has also been able to convert it to contractual business, which is more sustainable for us. And it really shows you the strength of our plants, the strength of our production facilities, the strength of our ammonia supply chain and the strength and the reliability of our throughput. We've also focused heavily on utility spend and costs. So Ditebogo mentioned our solar plant. We generated 20-megawatt hours of capacity in the current year. But our folks in Sasolburg have been very heavily focused on how can we reduce cost and increase efficiency. So reliable supply, it's given us a lot of strategic optionality. So when the ports are challenged or when the trains are challenged, we also have introduced trucks to move ammonia around, and that has been a help for us. We've also built more storage capacity. I think we mentioned at half year, we were building a 5,000 liter I hope I got that right, AN storage tank. That tank is there. And I can tell you how much is in it, but let me not say that, but it helped a lot with the disruptions and being able to supply the market as needed. Then for a number of years, we spoke about how do we manage price and input cost risk. So you know that our business has got -- is impacted by the cost and input prices of ammonia. We've got other commodities that impact us. And then on the front end, you've got some crop prices and metals prices that impact our farmers and our mines. So what you're seeing here, and we did one chart or a picture that takes us all the way back to 2020, you see that our business continues to deliver strong profits, strong cash generation, strong margins through low commodity prices. Increasing commodity prices, decreasing commodity prices and now what we'll probably call a fairly flat 12 years -- 12 months of commodity prices. When we sized up the block, the half year and full year, what you can see is the level of volatility during that time. Even though the prices were flat, our supply chain folks and our finance team and our treasury teams had to be very, very diligent on when they buy, when they produce, when they sell, how much they store, and more and more efficiency has got into that process. You see this performance being driven by, one, an increase in the diversification between Agri and Mining. So our Mining business gets bigger, reduces some of our risk in terms of commodities on the Agri side. You also see our plant throughput increasing. So we're selling not only to BME, but we're also selling to other mining businesses, and that is coming from our Sasolburg plant and our strong supply chain. I suppose a few other things that drove the decorrelation to pure commodity prices is the growth in the biostimulants business out of Australia. A lot of effort is being put into demand and supply management, when do we buy, when do we produce, when do we sell. And our teams, I think, have got to a point where we are highly confident about our agility and our ability to win in that space. We're showing you a picture of one of the ships that bring ammonia to the Richards Bay port. So this is a real example of a ship that we contract in to bring ammonia for us. It then gets offloaded in Richards Bay into a tank, and it then gets put into our trains and brought up to Sasolburg to make the fertilizer and explosives that we use. The second part of our business is -- a big -- a second part of a big driver of our result is our working capital. And there's not a lot to say here, but to say working capital is still very well managed on a very disciplined basis. I said earlier that there are 2 areas where we increased working capital. The one is for a major shut that's happening. And the second is we have had working capital stuck a little bit due to some of the issues we faced in our Zambian business. So that's probably circa ZAR 200 million. If that wasn't there, our working capital would have even performed better than this. So very, very strong performance again on working capital and another year of very disciplined management of working capital and cash. It's probably worth a note to say if you -- when you get all the way into the detail, you're going to see that our debtor collections were strong and well managed, and we continue to use supply chain finance very effectively to manage our working capital going forward. Overall, from a capital perspective, also a bit boring. We're very disciplined on capital. I think if I go back to 2019 when I joined the company, a strong balance sheet is often criticized and folks say, "Well, why don't you take all your money in your war chest and go and buy something?" And that leads often to the wrong decisions by management teams. So we continuously remind ourselves of our capital framework, and we continuously tell ourselves and we tell you that when we think of acquisitions, when we think of M&A, we will be very disciplined with the way we go about doing that. So I think what you've seen is all of our investments have been partnerships, joint ventures and done in a very disciplined way, where there's surplus capital, we've been returning that to shareholders via ordinary special and share buybacks. We don't often talk about what we don't do, but there's often transactions we look at. And if they don't meet our hurdles, if they don't meet our strategic fit, we won't just do them to spend capital. I think we've demonstrated an immense amount of discipline from a capital perspective. We then said, let's just give you a bit of a view of what we've done because every year, you see bits and pieces of how we've -- what we've done in terms of capital. And just a quick reminder, if we start at the bottom, we've been on a disposal of noncore assets and focusing the business on agriculture and mining. So you saw us exit Umongo, the petrochemicals business, which was a joint venture between us and Chevron, and you saw us let go of Oro Agri to focus purely on the businesses we understood. We also got rid of some other noncore assets or underperforming assets, circa ZAR 300 million. We then invested -- if I go to the top of the slide, we invested CapEx to protect our business. So over the last 5 years, circa ZAR 1 billion into maintenance CapEx into different infrastructure builds in our businesses into our core. And we also put in some growth CapEx. So we grew our distribution in our Agri business, and we invested in a number of plants globally in our mining business. So 2 detonator plants in Canada, emulsion plants. We're now building a Hypex Bio plant in Canada. And then we went into a little bit more bold expansion. We invested in certain joint ventures and partnerships, the one with Consbec in Canada, which we put some money into and the one in Indonesia with M&K, which we allocated some funds to. And then last year, you saw us buy 10% -- roughly a 10% stake in Hypex Bio, which is a hydrogen peroxide green explosives business based in Stockholm. And if any of you are really interested in that and you Google and you see what they've been up to, they've been making significant progress in Europe around doing more and more blasts, and we're busy building a hydrogen peroxide emulsion plant in Canada with them now. Just in terms of how we're thinking about capital going forward, we will continue to be disciplined. We will continue to look for projects that are closely aligned with our core mining and agriculture. And we will continue to protect our core and grow our mining business internationally and invest in our AgriBio business globally. You won't find us doing anything generally outside of that. So we're not going to be buying a packaging business, and we're not going to be buying an aeroplane. It will all be focused on agriculture and protecting our core, investing in mining globally and investing in distribution for our AgriBio business. So I'm going to hand over to Stephan, who's going to do the finance update now. Thanks, Stephan.

Thanks, Seelan. Good morning to our Board members, our shareholders, our staff from around the world as well as all the other stakeholders in the room as well. Maybe just a quick update on the SARS matter before we jump into the exciting stuff of the financial numbers. So we're busy closing out in the final stages of the ADR process, as previously communicated, we aim to resolve the matter. And if that can't be done during the ADR process, then the appeal process will resume, but we'll keep our shareholders updated on the matter. Maybe just a quick overview, just linking on to what Seelan was mentioning. I do believe the group delivered a strong financial performance for '25. It just emphasizes our ability to navigate through these external pressures effectively. We remain maintained reliability of supply to our customers. Seelan touched on the effective working capital management. And that put us in a very strong financial position and a very strong generating cash position throughout the financial year. So, if I look through the line items, revenue increased by 3%. That was driven by the robust performance in our Mining segment, and well supported also by our Agriculture business, even though it was at lower average commodity prices relative to the comparative period across the SADC region. From a gross profit point of view, we've seen an increase of 6% up to the ZAR 5.1 billion. Again, that was driven by the 2 core businesses. In the SADC region, even though we referred to more stable commodity prices, if we zoom in a bit, as Seelan has touched on, over the last year, commodity prices still moved some of our key inputs more than 50% throughout the year. The gross profit margin, which is quite pleasing, increased to 22.5%. That was driven by the higher throughput through our manufacturing facilities. The margin was also boosted by our mining production efficiencies, and I'll touch on that a bit later. And maybe just to remind our shareholders, there was a drop in quarter 1 of our previous financial year as the commodity prices came down sharply, which really affected our results in '24. From a distribution and admin expenses, that increased by 6.7% relative to the comparative period. Seelan touched on the restructuring cost of the Chemicals business. If I maybe just isolate for the restructuring cost, the admin and distribution expense would have been up 4.1% relative to the comparative period. Then, moving further down the income statement. If you look at the net other operating income and expenses, that includes on the expenses side, ForEx losses that came through our accounts. Specifically, in the SADC region, we've seen a sharp decline in the Zambian kwacha due to the drought that really affected the electricity supply. And then on the income side, we've seen gains coming through our sell captive, which we use for our insurance program as well as the sale of noncore assets. The impairment losses of financial assets that mostly relates to the ECL provision specifically in Zambia that I will maybe just touch on a bit later. Then the share of net profit of investment, the bulk of that relates to our JV in the mining space in Indonesia, really strong performance by our team, as we see growth in that area. Just taking into account the comparative period only included 10 months relative to a full year performance. That resulted in the operating profit in the year being stable at the ZAR 1.7 billion level. If I adjusted for the chemicals restructure, that would have been increased close to the ZAR 1.8 billion level, and that will then resulted in an increase of about 5.6%. If you look at the operating margin, the operating margin reduced to 7.4% relative to the comparative period. Again, if I just adjusted for the restructure costs that would have been at the bottom end of our guidance range at the 7.9% level. From a net finance expense point of view, the increase in the net finance expense was actually driven by a reduction in net finance income on a net basis, and that was driven by finance income on debtors, specifically in agriculture, Zambia as well in SA. And then on the expense side, the increased use of the supply chain facility also increased the expense. From an effective tax rate point of view, the effective tax rate at 31.6% was in line with the prior year's 31.7%. In our investor deck, we've added additional disclosures for our shareholders, and there was still a lot of moving parts moving the effective rate, even though on the face value, it seems to be fairly in line with the comparative period. Then that all resulted in diluted HEPS, as Seelan mentioned, being up by 2% to ZAR 704 relative to the ZAR 6.91 in the comparative period. Maybe jumped into some of the details. If we can start off with agriculture first. In Agriculture SA, we've seen increased fertilizer sales. That was underpinned by our metrology model, driven by the teams. We've also seen favorable economic conditions playing out across the region, even though, as I mentioned, at a bit lower average commodity selling prices. We've seen strong margin extraction by the team, which was also supported by our integrated manufacturing and supply chain capability. And the teams have done really well in effectively managing our price risk, if you take into account some of these commodities still moved more than 50% within our relative financial year. If we look at the Rest of Africa, as Seelan mentioned earlier, it was a disappointing performance for us in the rest of Africa. We've seen revenue and margins reduced. A couple of factors resulting into that. We've seen the severe drought across the region. We've seen sociopolitical challenges, specifically also in Mozambique played out. And the severe drought in Zambia resulted in the electricity constraints that really drove down the devaluation or depreciation in the Zambian kwacha, which resulted in ForEx losses coming through our accounts. That also furthermore resulted in increased ECL provisions due to delayed customer payments affected across the region. But the teams are making really good progress in implementing the operating model changes in the region to ensure we set up the business favorably going forward. If I look at our Agriculture International business, this is our business in Australia, or our AgriBio business. We've seen revenue and operating profit increased, a really strong performance in volumes, export volumes out of Australia, and that is due to new contracts, some of the key ones into China, as well as recovery of 2 key customers, as previously mentioned in our results. In addition to the export volumes, we've also seen really strong domestic volumes in Australia, which confirm the trend for sustainable farming practices for the use of the biostimulants products. In Brazil, we've seen a severe drought in Brazil. It's the worst in the last 70 years playing out in Brazil. But we've seen resilient volumes by our Brazilian team, which just sustained the demand from our customers. However, the drought affected again the local currency or the Brazilian real, and that was due to the weight on investor confidence across that region. And in the U.S., as we mentioned, we continue to invest in our distribution capability to ensure support for our long-term international growth strategy, but a really strong performance by our AgriBio business. From a mining point of view, very, very strong performance from mining across both regions, local and international. Specifically, if we touch on SA first, we've seen a robust performance by the business, taking into account there were macroeconomic challenges. There was adverse weather conditions affecting the business as well as the sustained infrastructure challenges that the business faced across the region. The revenue and profit growth came from new business as well as contract extensions as well as product mix across the product range in SA. Furthermore, we've seen the margins were boosted by our production efficiencies, and that was supported also our ESG drive by the increased use of used oil in our emulsions. On the international side, we've seen strong volumes and margin growth across the businesses, specifically in SADC into Zambia as well as into Namibia. That came through our blasting solutions business as well as our metallurgy business, our previously our mining chemicals business. And then on the international space, also, we've seen contributions from Indonesia as well as West Africa really boosting our results, which was slightly offset by the loss of a surface contract mine in Canada. BME Metallurgy was also strongly supported by our ammonia derivative sales from our Sasolburg facilities. Overall, we also made real good progress in the development costs in Australia and Canada. Lastly, on the chemical space, as Seelan already touched, we've accelerated the restructuring in the chemical space, resulting in the ZAR 99 million restructuring cost. The disposal of the noncore assets are underway. We've added additional disclosures on the profitable water care business as well as other assets that is held for sale as disclosed in our financial results. Maybe just moving forward to our financial position. The financial position remained strong for the group due to the disciplined working capital management as well as cash generation. If you look at the total assets, the total assets are down lower year-on-year by 2%. The most notable changes to highlight there is the reduction in trade receivables, which came across all our segments, supporting our cash generation. And we've seen increased inventory. Seelan already touched some of the shutdown of the key supplier to ensure we've put in strategic stock to ensure security of supply to our customers. And then in Agriculture Africa, we've also shifted our supply chain route from Beira into Walvis Bay, resulting in road logistic challenges, specifically out of Walvis Bay, which increased the inventory position at year-end. We've seen the lower cash position on the balance sheet just year-on-year relative to the comparative year. So maybe just 2 points to note is the current year included a special dividend cash flow, which was not in FY '24. And in FY '24, we also had a working capital release of ZAR 603 million with a small capital draw in the current year. We've seen excellent working capital management, as we mentioned, a favorable ratio of 15%. Maybe just someone else to call out is in other assets, as I mentioned, is the asset classified that is held for sale, which is mostly coming through the restructuring of the chemicals business. And then maybe touching on the cash flow. The cash generated from operations remained strong, which contributed to our solid cash position. Our net working capital, including our supply chain finance, which gets disclosed on a separate line in our cash flow statement. We've added just the additional disclosure on the slide for the working capital, resulting in a small capital draw in the current year relative to a big release in the prior year. And then the finance expense, as previously explained, increased due to the lower interest earned on debt accounts in SA as well as in Africa. From a tax expense point of view, the tax cash flow expense include the Zimmer matter as we've disclosed to our shareholders at the half year as well. Looking at the investing cash flows, that relate to our organic and growth capital as we spent throughout the year. We don't staff our plants of any capital. And the restricted cash balance relates to FICA requirement in the DRC, which has been resolved since year-end. Also, maybe just to note the prior year included capital flows for our M&K JV as well as our Hypex Bio investment. From a financing activity point of view, the cash flow relates to our share repurchase program as well as the shares procured for our staff share schemes. And then the dividend flows is the current year includes the special dividend flow relative to an ordinary one in the comparative period. Thank you. I'll maybe just hand over to Seelan for the closeout. Thank you.

Thank you, Stephan. And thank you to you and the finance team for the incredible work to continuously move the results a little bit earlier. I know that puts a little bit of pressure on our auditor is sitting next to us in the audience as well. But thank you to you as well for everything you do, Tega. Thank you. So, if we change gears a little bit and just talk about the future and what's next. From a strategy perspective, we will continue with our disciplined focus on executing what we said we would go out and do. And there, we said we would protect and grow our core. We will continue to scale and grow our Mining business globally, and we will build out the distribution of our AgriBio business in the selected markets we're operating in. There's a lot more we can do on all 3 of these businesses or all 3 of these thrusts. And in the outlook slide at the end, we'll attach a little bit of monetary values to that. In setting out with this global growth path, we need to ensure that it's underpinned by very strong values in our company. We also need -- I mean, we all know that we can't do this without people. So we need to keep investing in our people and driving a performance culture. Our strategy will also be underpinned by a high degree of sustainability. And I think broadly, if I look at where we are and I compare us to some of our peers globally and locally, I think we have done incredibly well and maybe even a little bit ahead of where the pack is. We also want to have what we do underpinned by technology and innovation. And I think there, our customer-focused teams have got some very good propositions that they have that is focused on that. And then I think finally, this disciplined capital allocation, we will continue on that path. So you will not find us deviating from what we say, and you will not find us deviating from the disciplined execution path we've been on. We will be a purpose-driven organization, and we will be focused on long-term shareholder value. So in some instances, you might find us not taking as much risk as you want or you might find us doing things in a very considered way, but we will focus on the long-term, and we will ensure that we manage our company for long-term sustainable shareholder value. We will unlock more value from our manufacturing and supply chain. So we don't think it's all out. We think there's still a lot more we can do. Our teams -- we put out this slide previously. Our teams have done some really good work in optimizing working capital, optimizing production. But every time I spend a bit of time with our engineers and I walk our plants and we talk about the detail, it just fascinates me how much more we can do. So we've got a lot of focus to optimize our plants, increase the agility of our supply chain, focus on having our plants being more reliable, more efficient, getting more throughput through it. We haven't put out a slide with where we are in throughput, but we can still do more. And we want to leverage our supply chain, our strong, call it, broadly ZAR 23 billion supply chain to actually generate more value for us. We want to optimize our purchasing, optimize our terms, and we'll continue to do that while as we reduce emissions and build a more sustainable business going forward. From an agriculture perspective, we know that we are absolute leaders in agriculture from a regional perspective. So our teams on the ground in South Africa, our teams on the ground in Zimbabwe, in Zambia and others have incredible technologies and a huge amount of value to add to increase yield. Our Head of Sales and Marketing will continue to do what is right for farmers and move them towards more specialty, more science-based, more research-based solutions to maximize water use efficiency and nutrient efficiency, but also continue to create a world-class agriculture sector we have in SADC. I'm not going to do justice to some of the detail in the slide because I want to leave a bit of time for Q&A at the end. We'll continue to invest and be a strong, strong regional player from a Nutriology perspective and an agriculture perspective locally and in SADC. Globally, you know and you've seen over and over that our AgriBio business has got great propositions. We see that the operating margin has increased. And what we did on the slide on the right, if you take out some of our development costs, we've got some development costs in the U.S. now, distribution people that we've brought in, that margin even increases further. So it's a very strong business, a very strong moat around the customer value proposition there with strong margins, and we will continue to grow that. We will think deeply about a strategic partner that will allow us to access greater distribution. But what we've done to access the Chinese market and the Indian market has now paid strong dividends for us. So the exports of 46%, about 2/3, maybe 3/4 of that is really going into India and China. So it's having the impact we expect. We'd really like it to grow faster, and we really like this growth to be unlocked a little bit quicker than it is. Having said that, this is a fast-growing market. We've done a chunk of research now in the U.S. to see what the uptake is in this space. Brazil, which has been a huge gainer from some of the disruption that Mr. Donald Trump has put in place has been a huge uptaker of biostimulants. And if you just look at the massive impact Brazil is having on food exports to the rest of the world, a lot of that is driven by enhanced yield and farmers doing more with less. So there's a great moat around this business, and we'll keep investing and growing in it and looking for partnerships from a distribution perspective, but also strategic partnerships that can help us do more. Then if we come to our big story, the Mining segment, BME has demonstrated its right to win. We are seeing this business win locally. We've seen this business win from a chemicals perspective, and we're seeing the business win globally. It wins globally against big global providers like we'll show you on the next slide, and it wins locally against local competitors. We will continue to invest in BME, and we'll continue to drive its growth from a global perspective. The CAGR of 41%, we had a staff session before this and one of the managers asked me, Seelan, how sustainable is that? And can it go up? And we unpack that in a little bit of detail. So we believe there's still an immense amount of legs in BME to grow and do better. And I think what we do know, a lot of our mobilization costs is sitting in this 41% CAGR. We haven't taken the mobilization costs and showed you what the CAGR would be without it. But as soon as more of our countries or more of our plants deliver profit and the mobilization costs go out, you will see another increase in profitability from this business. We have invested in Hypex Bio, and we think that would -- that is a great investment for us in the medium and long term. We certainly haven't got any revenue or profits coming from it yet but we think that also strategically positions BME in a different space. We will -- we've got a track record of partnerships. So we'll continue looking for partnerships like the ones we've done in Canada and Indonesia. And I'm sure over the coming years, you will see us do a few more of those in a very disciplined fashion across the world. Obviously, this business delivers lower cyclicality risk, faster cash conversion cycles, and it changes the complexion of Omnia. It doesn't change it from green to red yet. But what it does do, it changes the complexion of our earnings to have 60% of our earnings more correlated to a different risk factor. Just talking about the specific initiatives across the world. These are our joint ventures, which you're aware of. Maybe I'll touch on Canada. In Canada, we've built 2 detonator plants and a Hypex Bio plant. We are -- we have still got mobilization costs in there, and we will, in the coming period, see that turn to profits. Obviously, Indonesia, you've seen that in our results. Indonesia is going well. The integration is good. There's 6 new contracts that's been signed there, and the progress is very pleasing. Australia, we've got -- we've invested in infrastructure. We've got some more people there. And we would -- while the access plant is cold commissioned, we still have to turn that business into revenue and profits going forward. So still upside from that. Having said that about those 3 regions, there is still huge, huge opportunities in -- on the African continent, Namibia and further south in South Africa that we can still unlock. And we see our business and our management team is doing an incredible job to do that. We will consider value-accretive M&A. So where there are projects that look -- that they can enhance BME's value proposition, that they can enhance BME's distribution capability, we will look at those, and we will explore those in a very considered manner going forward. Just to give you a sense why we believe there's strong value to be unlocked here. On the left of this slide, we put a chunk of recent explosives businesses that have traded. And you can see the EV/EBITDA multiples that they traded on. And on the right-hand side of the slide, I'm assuming it's the same way for you guys. On the right-hand side of the slide, we put a few of the listed explosives companies, and there are not many, but we put Orica, Dyno, EPC, NEX and the 2 Indian companies up there, and you can get a sense of what multiples they trade on. And I think the overall context of this slide is to say that mining is an incredibly attractive sector for us with strong fundamentals. And what you're seeing is that Omnia BME is incredibly undervalued in a global context. And as we grow our revenue and our business globally, what you will see is that value being unlocked going forward. And then just in terms of outlook, and we're almost done. Margins and performance, we said broadly, this is something very important to us. We all get -- as far as our -- a big part of our KPIs is on margins and growing that and all the concepts we're speaking about here, net working capital, ROE and others. So BME, obviously, in its margin guidance ahead of it. Agri slightly below. But if you take out some of the challenges in SADC, Agri probably also there or thereabout. And the group broadly within its margin guidance. I guess the question, I'm sure a few you're going to ask, are we going to change the margin guidance and increase it? We probably will, but not right now. I think we've got some once-offs with Protea and then Agri SADC that has been a bit of a headwind. So that will settle through in the current year. And next year, we'll look at revising the margin guidance, maybe taking the bottom away and increasing the top a little bit, which we've done a few years ago. I think Stephan did that. So I think our margin guidance still holds. From a return on equity, a nice smooth increase. However, what we do know is that chemicals is in this result. So if you take chemicals out, there will be an uptick. And if you also make an adjustment or try to normalize a little bit for SADC, there will be an uptick. But I think we're still targeting to increase our return on equity further. And obviously, what are we going to do to achieve all of that increase returns will happen with increased margins. We will have to also increase our asset turn. And you see the emphasis on our plants, on our supply chain, on our working capital and obviously, very disciplined capital allocation. And we often talk in our capital allocation committee. It's not just about allocating and spending money. It's also about removing money and saying we will not spend money on such or we will not continue in a business as this one if it's not delivering the required ROE or if a project or a country or a product is not delivering the ROE. Then we took a stab at giving you a view of what enhancements can still come. And we previously did this based on margins and this time, -- the team did this based on profits. And we said, "Well, if we look at what benefit can we still unlock in the business and where could that be?" And we put out a slide just showing you a view of a 3, 4, 5-year profit unlock per segment. Obviously, in chemicals, what we're saying is you won't see the loss coming through and you'll see some profit coming through. So a swing, mining, a view of that, Agri a view of that and then a CAGR over that period. Just to also tell you that what we put out here is not just a dream and a vision. There's some clear plans underneath it that we're working on to deliver it. Some of that will go better than planned. Some of that will not go as planned. But overall, what you can see is a very credible outlook in terms of earnings enhancements, which will increase our return on capital, but also increase our profitability. So, from an outlook perspective, I think chemicals, we've boxed that. We've split it into 3. The restructures happened. The asset -- there's still a chunk of asset sales, working capital, and cash that will be unlocked from that. So none of that's in the current period. In the next period, the cash that will be unlocked from the chemicals restructuring will start coming through. It's not in the current period. In the current period is cost. So there will be a release of working capital and cash generated. From an agriculture perspective, we're still quite cautious on Africa, but we've got a strong team that we've put in place there, and we've got certain different distribution models in different countries. AgriBio, we're very positive on that, and you'll see that will continue. And obviously, from a mining perspective, that's our key thrust. We're demonstrating the value that we can unlock there. And we will hopefully continue to have implemented some of these customer wins that we've secured and continue to grow not only in South Africa and Namibia and Southern Africa, but also West Africa, East Africa, in Zambia, and then in the different countries we've chosen across the world. So I think a very strong outlook for mining for our group. Then, just to close out on a little bit of a shareholder slide, why should you consider us? We operate in primary sectors. So mining and agriculture, we know, has a high degree of resilience. Our Mining business, as that grows, it diversifies our share. It makes us more correlated to a different sector. We've got a track record now of operational excellence. We focus on delivery. And sometimes delivering is hard. So our management team can be very proud of themselves for their hard work and commitment to do what they do. We've got this great integrated manufacturing complex of new plants, sustainable plants, well-maintained plants. We've got some great solutions in Nutriology, in our biostimulants business, and in mining. And then what we've got is a track record of generating strong cash and cash flow, a strong balance sheet, strong and well-managed working capital cycles. And what we're showing now, if you take whatever, a 5-year horizon, a very strong dividend payout. And all of that together creates some form of shareholder return, and you can choose whichever you want to. There was a very smart -- one of our very smart team members yesterday said, well, if you take a 12-month period, it's this number. And then I said, well, you can take -- you can choose whichever number you want and then find it on the period. But overall, very strong shareholder returns over the period. And maybe I'm going to pause there and just say thank you to all of you for attending. And a big thank you to all of the team members at Omnia. We've got 3,800 people. Our people work 24/7 across the world. Our plants never stop. Our trains never stop. Unfortunately, they do stop due to cable theft, but they should not be stopping. Our trucks never stop, and our people never stop. So thank you to the 3,800-odd people across our businesses, our plants that work night and day in the cold, in the heat, in the dark, in the sun to deliver all of this. You are really our true heroes. And thanks to all of you for attending the roadshow, and thank you for your interest in our company. We'll open up for questions. There's a microphone. And I'm going to happily pass some of the questions on to the management team as well, if that's okay.

Sure. Ntuthuko Sithole from SBG Securities. I would like to congratulate you, Seelan, and the team. You often maintain your earnings or grow them despite the macro environment. But I do have a few questions actually. I would like to start with the Chemicals business. I know it's not relevant, but I'm just thinking from a modeling perspective and just overall. So, looking at the Chemicals business, it looks like you're going to unwind working capital in this financial year, right? And then you're going to sell this chemicals business -- the unprofitable parts of the Chemicals business. So you're going to make about ZAR 200 million, like that's ZAR 200 million or so. Do you think we'll see this come as an additional distribution to shareholders? That's the first question. Then also on the Chemicals business. So it looks like when I looked at the restructured and unrestructured, the past 2 years that you have, it's about ZAR 1 billion in revenue and a 5% to 6% operating margin. Is that the sustainable way we should be thinking of the business? And then a third one, just to throw it out there, just for Stephan. If you could explain the impact of the Pillar Two tax model and its potential impact on your effective tax rate and working capital. And then lastly, I just want to think about strategy. Often the biggest question that I get about Omnia, right, is what's next? We've always seen the slides about the turnaround and the resilience, and the continued growth. And I guess the question is what now? Because it's definitely turned around. Like you said, is there more -- is it just more areas for efficiency and where? Or is Slide 18 alluding to some M&A?

Thanks for that. I think on the Chemicals business, you're right in saying that currently, the Chemicals business has got cost in the current year. And what you're going to see next year is a cash unlock of working capital and an asset sale potentially. Added to that, there will also be some sites, some land, and operational sites that we will dispose of. So it will have a positive cash impact in the future year. I mean, whether that's now going to correlate to a special dividend or not, I'll leave that to your imagination. I think the second point was really the piece that's left. So that's the bulk trading business, and what could we model in for a revenue and a margin on that. I'll maybe ask Glen or Stefan to talk about that. I think it's early to state exactly where that's going to end, but we have a view of that, and we have a view of how we're seeing that. One of you want to answer that now quickly. Glen, do you want to go?

Thanks for the question, too. So in the disclosure, we actually broke out the piece that we're keeping, so the bulk trading business. And we showed that last year, that business made ZAR 51 million of operating profit. And that's the piece we're keeping. So we think we can grow and do better in that business, but that's the core piece. And then, I mean, the other piece that's being sold outside of the pieces that are closing is still a profitable business. So if that sales delay, you're actually getting profits at least of the same magnitude as that coming in. But if we sell it, there will also be gain on sale and the rest there. I hope that helps.

So I think chemicals will not -- when it's out the system, it will not detract from our operating margin, if that's where you're going. It will be in that chemicals operating margin guidance range, if not a bit better. Because that was with some loss-making in as well. Then I think, Stephan, on the Pillar Two tax model, I don't know if you want to answer that or...

And maybe just specifically on the Pillar Two tax. So obviously, we've added a bit of disclosure on it. You will see it in our financials as well. The impact was small at this stage where we are. So it's going to be just less than ZAR 10 billion, the impact of Pillar Two. But some of them, the safe harbor rules still needs to be actually worked out. So there's still legislation on that. And that needs to be in play by the end of March next year as we actually submit that.

Yes. I mean I think if I just try and summarize our growth story because you're alluding to something, I think we're very clear that there's a chunk of growth we can still unlock out of our core business. So that's out of our Agri business and out of our SADC business and out of our mining local business. But I think where we're pointing to is the growth out of our Mining business globally. And that is a step change of value unlock. That can be done, one, by just growing our Mining business day on day the way it is. So if our mining business continues with a 40% CAGR growth for the next 4, 5 years, you'll get some of that. That could also be unlocked by some M&A, some bolt-on M&A like we've done with Consbec, M&K and then maybe something we do in another country, but that can also be unlocked with something much bigger than that. And that is what we're showing in that slide. I guess for us, we're sticking to our knitting and growing our business, working through our joint ventures that we've invested in and then exploring what else is out there, what is moving. And often, we don't -- you will only hear about what we've executed on. What you don't hear is what we've looked at and we haven't executed. And I've said this before, that's quite a powerful statement to make because it demonstrates discipline. It demonstrates our Board's discipline and our management's discipline not to just execute on an M&A transaction because we have a strong balance sheet or because we believe it's the right thing to do. We must only do it if we fundamentally believe it's aligned with our strategy. It's the right returns, it's the right price. It's something we can manage. It's something we can take forward. So I think we have looked at various projects during this financial year and last financial year. And should we find the right project, we will consider doing something within our disciplined capital allocation. But I think what you -- the growth story of Omnia going forward is in its Mining business. That's where we see the growth. And I think what is so strong about that is that we've done a 41% CAGR growth in the last 5 years, and we're now telling you that's where we're pointing to for growth going forward. Exactly how that growth unlocks I think it could be one or a combination of a few of these options that I've put out. And obviously, there's a slide with what has happened globally in explosives and how they traded and how that played out. Thank you. Everyone is pointing.

It's David Fraser from Peregrine Capital. First of all, kudos to you and your team. I think it's been a fantastic 5 years, ZAR 5.5 billion of capital return to shareholders is no mean feat. And certainly, the cyclicality we've had in this business over 25 years seems to have been smoothed out. So congratulations. I think it's not an accident that you're not -- that you are a significant shareholder in this business. And I think -- it's fantastic to see a CEO running a business with focus on shareholder returns. My question relates to the Sasol shutdown. Obviously, a big risk for your business. I mean, where exactly are we in the timeline there? And if that shutdown is extended, how much kind of wriggle room have you built up into your stock provisioning as far as should there be any sort of delay in bringing that plant back?

Thanks, David. And I think just to go back, I think the kudos must actually go to all of you that helped us. And in the room today, we've got one specific individual who had to basically underwrite the ZAR 6.8 billion of debt we had at the time, and I think he took 1/4 of that. And we should maybe acknowledge your presence, Andrew, and you've -- a lot of our shareholders and our debt providers and people like yourself have walked a long journey with us. So thank you to all of you for the trust and faith in us. Coming to Sasol, and I've got all the experts here, but I'll give you the 2 minutes before they come in. It's -- we've got a very complex shut, firstly, that we've done. So we've shut both our plants at once. They both brought up already. So they've shut and maintained and going both nitric acid plants. Sasol have gone through a very complex shut themselves. They've done a steam shut and an ammonia shut. The steam shut has ended and the steam is back. Added to that, unfortunately, we had a -- I want to say a cat, but it's not a cat. What is it?

Civet.

A civet going into one of the substations of Eskom and tripped it and while Sasol was in it shut, everything came down. And kudos to our engineers and the response teams to get all of that going. And currently, where we stand is the ammonia system of Sasol's back online and the ammonia is coming through the pipe as we speak. I was told that late last night through a WhatsApp. What we've done to prepare for that, we've obviously got our trains that have been moving around. And I spent quite a few days in Sasolburg over the last few months, and they're there and they're working. We've increased our storage capacity on AN. So we've got some storage capacity. And our teams have planned for this. I guess if you're asking me what's the risk now of them not coming up, I think it's reduced quite significantly. Things always go wrong. So something can trip or break or whatever. But I think our supply chain teams, and our manufacturing teams are on top of it, and they've done a brilliant job. Now David, having said all of that, there's another problem. We currently don't have water in Sasolburg. There's no water. And we haven't had water for a week or how long, a week maybe. We're currently trucking in 70 trucks a day of water to keep our plants going. Our teams have bladders set up and had to set them up. So I'm incredibly proud of the resilience of our teams and how they've planned for all of this. So this was all planned for from our perspective last year. I think -- and we continue. So we continue to produce fertilizer. Our trucks are continuing to send out explosives. These are the things we don't talk about. When you see the one macro headwind of infrastructure challenges, this is a real example of what's actually happening today as we sit here. So I think we're confident that we're okay from that perspective. Have I covered it? You're shaking your head. Okay. The more clever engineers have said I've covered it.

Simon Sylvester from Rezco. Could you maybe just talk a little bit about your African Agricultural business because there's obviously a mix of restructuring and macro that we're seeing in that loss that you've disclosed. Could you maybe talk about what that business looks like going forward and just try to help me size it from a revenue, operating profit perspective?

Okay. I'll talk about it just from an overall perspective and maybe Stephan or Glen want to size it. But broadly, you've got Mozambique in there. And Mozambique last year was an absolute challenge with the sociopolitical issues and the disruption. The port failed. So we couldn't get product through Beira. We had to bring it through Walvis. So I think their outlook is pretty negative, and we probably will be very cautious about putting product into Mozambique and trading in there. Then the second one you've got is Zimbabwe. Zimbabwe is closely aligned with us from an AN perspective, and we've got quite a significant -- when I say significant presence, maybe not in terms of assets, but we're quite important to the agriculture space there. We've got some people there. We've restructured that business. The gentleman sitting behind you, Peter Swat, can give you a bit more detail maybe over tea what he's done and how he's managing that. And then the big one is Zambia. So Zambia had a lot of headwind against it. It had the drought. It had a supply -- a massive supply chain disruption because the product now couldn't come from Beira. It had to come from Walvis, and that hurt us from a working capital perspective, even though our working capital is good. And what we also had was some debtor write-offs that came through where with the drought, customers couldn't sell. They were caught on the wrong side of the commodity prices. And we've had to provide for some of that via ECLs and others. In terms of outlook and sizing that, I don't know if one of you want to…

Yes. I think if I look at the Rest of Africa business is that the 2 main components that really affected the business, as we mentioned, the currency depreciation that affected that and the ECL provisions. Now the ECL provisions goes hand-in-hand in the sense that due to the drought and the constraints there everything shifted a bit later. So that resulted in later collections over a year-end period. The impact there, and you will see the disclosures in the financial statements as well. Just on the ECL side, the impact was about ZAR 66 million on the ECL. So that was quite a significant impact. And then on the currency as well, you will see it's actually north of ZAR 30 million impact as well overall year-on-year. So if I think about the business going forward, you will see over the last 2 years, there is on the tone of the commodity prices that drives the top line. You will see that we're sitting at about ZAR 2.5 billion where that business was driving. So we do expect that to continue along those lines. Peter and the team is looking at specifically Mozambique and Zimbabwe and those. He's already implemented some of the restructuring to mitigate that risk. But I think sustainably going forward, that business, we want to put it on a part of profitability in a sense that needs to be between ZAR 80 million to ZAR 120 million at the ZAR 2.5 billion level going forward.

It's Rowan Goeller from Chronux Research. Two questions on the mining side. Firstly, in South Africa, you're winning market share. Now is this because of security of supply or because of certain characteristics maybe that your product has relative to your competitors? And then secondly, in Canada, you say you lost a project. Was that a Consbec project? And how big was that project in your life in Canada?

So maybe, Ralf, you can maybe do the Canada one. Let me just answer the mining one locally. So we have won contracts and market share locally. But I think when we think about our mining market share, we've got to think about what we sell via BME, but also what we sell via the ammonia derivative sales. So we are also supplying other businesses like BME. And there, Rowan, it is happening specifically because of the security of our manufacturer and our supply chain. So you could even have a business that has a nitric acid plant locally that is maybe not able to have consistent supply. And then we had that chart with the contract sales. And then what they would do is take a base amount of contracted volumes from us because we have got more redundancy and more security of supply and then use their plant to top up as and when. So, there's both happening. And we don't really give you a split of how much of it is the ammonia derivative sales, but we show you how that has grown. And that is happening due to supply chain and manufacturing security of supply. And then BME is also winning contracts. So, Ralf can maybe talk through that in SADC and then Canada.

Yes. Thanks for that, Seelan. In SADC and in South Africa, yes, it is obviously -- the supply chain security is key for our customers, but there's obviously many, many other aspects that play a role. It is the quality of products. It's the people on the ground. It's organic growth in contracts where you are, it's technology provision and so forth. So, it's a whole host of things that play a role in winning contracts, but also in keeping contracts. From a Canada perspective, I just want to say we're in mining. So, it's a competitive environment, and we don't ever like losing a contract, but we win some contracts and we lose some contracts. Now as far as the Canada contract goes, we lost the contract on commercial terms and on unsustainable pricing at the end of the day. In a sense, that it is a good story and a bad story that we did not lose the contract because of our practicalities or our products or our quality or our ability to supply the customer. So yes, that customer was still in a mobile or ramping up phase. And so, we were not at the high volumes that we wanted to be at, and we lost that contract on a commercial basis. Does it affect our Canada business going forward? It was to be said that it was not part of our initial strategy for our Canada business to enter surface mining. All our strategy in Canada was based on underground mining and detonator sales. So, this surface contract basically came from the side. And so, will it impact our Canada strategy going forward? No, it will not. We have obviously, it would have been nice to keep the contract because it would have probably taken us to profitability a little bit quicker, but we are focusing on executing our strategy, and that was on underground and detonators and opening not only Canada, but the whole North American market based on those products and those plants that we are commissioning now. I don't know if that's.

Thanks, Ralf.

There's just a couple of questions online.

That's what I'm -- okay, you've got them. I was trying to work out who's got the online question.

So, the first 3 questions are from Bianca Travel at OIG. She's asked, can you give us an indication of the magnitude of any further restructuring costs within the Chemicals segment? And further to that, please provide guidance on the split of these costs between H1 and H2 in FY '26. The next question, what needs to happen in the Agriculture segment, both through external factors and internally for it to reach its margins targets of between 9% to 12%? Will the external factors or internal changes have a bigger impact on margin expansion? And then the final question from Bianca is, could you elaborate on how the ammonia pricing has impacted operating costs and margins within the Agri and Chemicals segment? And how do you see this evolving going forward? And then the last question we had from Khalid was why was the special dividend less than last year? That's it from online.

Thanks very much. So, I think in terms of the restructure cost, there is still a bit of restructure costs that will come through in the current financial year. I think the team have got some flexibility of when and how to do that. So, I don't think we've pinned exactly whether it will be in the first half or the second half. And we haven't disclosed exactly how much that is. I think the key thing for us is that the business will be in profitability going forward in FY '27. Just in terms of Agri's margin guidance, if I were to split whether we would get into guidance quicker due to macro factors or internal factors, I would say we will very easily get into the guidance range by just doing 1 or 2 things that are in our control. Because if you were to look at us making a loss in SADC of ZAR 61 million and maybe we could have made a profit of ZAR 100 million or ZAR 150 million, that in itself will take us to the guidance range. I think the work being done now in Agri SA, Agri International and in MOS, it's within our control to get us into the guidance range. I think what you will see is you will see environments where there will be tailwind in the Agri business. And you saw that where commodity prices are up, where soft commodity prices are up, and that could have a bigger tailwind. But I think what we focus on is what's in our control and the guidance we put out to you are guidance we can deliver that we must deliver a little bit in spite of some of the macros. Then I think the issue around the ammonia pricing, I think what we've been trying to do is show you how we've decorrelated the business to just purely correlate us to ammonia price would probably not be the right thing. And the first issue is the diversification between agri and mining. So, I think you see the mining segment go. And probably the best slide to look at would be the sort of half year bars and just to talk through that. But the ammonia price is important to us. It does have an impact on our business, but we've got more levers to pull now to manage that. And you see us doing that with that slide. We can maybe take that question offline and discuss it a little bit further. Then I think your last question was, should we retract the special dividend and not pay it? But I guess, and our Board had fairly robust discussions about this. And the dividend fits into our capital allocation plan. So, if you say we've got a pot of money and the first thing we use that money for is to protect our core, to grow our business and to look at the projects we've got in sight. So, we've put whatever we need for that away. And then park the fact that we've got debt and all of those things, just let's ignore that for a second. Then we say, "We've got some money left over let's make sure the ordinary dividend is proper." And obviously, what we're doing is we're increasing that because we're saying the quality of our earnings is higher when we've done that. Then we still had some money. Now maybe we could say, "Well, just keep it for a rainy day or alternatively use it to buy back shares or pay a special dividend. " Now the buyback shares in our company, we have been buying back shares. We've told you that, and you see some of the numbers, but it's quite slow. Liquidity is maybe not where we'd like it to be, and we do it in a very structured way. So, then we've kept some money there, and then we said we still have some money, and that's how we got to the special. So, could the special have been ZAR 0.50 more? Probably. Could the special have been ZAR 0.50 less, probably. And eventually, we landed at the special where it is. But I think what it demonstrates is the discipline. And I think whenever we've paid special dividends, it's special. And we've said as "Well, it's never an absolute science." I think what the team have also done is they've looked very carefully at the cash generation. And we've paid if you look at the total distribution, it correlates exactly to cash generation. It's not as if we haven't paid out any of to us asking about any cash coming out of Protea in future years. We haven't paid that out via special now. This is based on how we've performed last year.

An additional question from Robert at Rezco. What are the longer-term steady-state targeted ROEs on the global business?

Okay. We don't have a ROE target per business. But I think generally, if you take the 11%, the second last slide, where we took the 11%, and we made some adjustments to it, and I think it went to 12.9%. So, 12.9% is probably what we should have done if we didn't have some of the one-offs. And if you say, where could we go, the way to model that would be to take the earnings chart, which was the chart just before that, where we showed projections of earnings in 3 years' time. And I think then you'll get to a very credible number of ROE. I don't want to put the number out. I don't know if you guys want to -- do you want to? But that's I mean, there you can model it from there.

That's it from online. Thanks, Seelan.

Thank you. Okay. So, thank you, everyone, for coming. I really appreciate you coming here and braving the traffic and the portals and the interest in our company. Thank you to all of you online for listening. If there are any questions, please e-mail us or phone or message, and we will respond. And what you do know is you have a very strong management team here that are fully committed to running the company, growing shareholder returns and David, keeping Sasolburg going through whatever comes at us, whether it be a cat, a cable theft or a shut. And we will do the best we can to keep everything growing and moving forward. Thank you very much.