2020 INVESTOR PRESENTATION APPENDICES 31 AUGUST 2020 RESULTS FOR THE YEAR ENDED JUNE 2020
INVESTOR PRESENTATION APPENDICES RCL FOODS IN CONTEXT FOOD, LIQUOR INSURANCE BANKING HEALTHCARE INDUSTRIAL INFRASTRUCTURE MEDIA & SPORT & HOME CARE 2
INVESTOR PRESENTATION APPENDICES OUR STRUCTURE 3
INVESTOR PRESENTATION APPENDICES OUR BUSINESS MODEL (Chicken, Sugar, Grain (Bread, Buns & Rolls and Milling) and Animal Feed) Speciality, Pies Food Partners (Speciality, Pies, Food Partners, Grocery, Baking, Beverages and Added-value Chicken 4
INVESTOR PRESENTATION APPENDICES OUR BUSINESS PROFILE RCL FOODS is a leading South African food manufacturer, producing a wide range of branded and private label food products which we distribute through our own route-to-market supply chain specialist, Vector Logistics. Our strategy is founded on a clear sense of who we are and where we are going as a business. We aim to create the future Our Way – driven by Our Passion and Our Ambition and guided by Our Values. 5
INVESTOR PRESENTATION APPENDICES OUR BRANDS 6
INVESTOR PRESENTATION APPENDICES OUR IMPACT SUSTAINABILITY Our Sustainable Business Drive is about creating the future. Underpinned by Our Passion , it sets out our response to the most critical social and environmental challenges we face. Our Sustainable Business Drive enables us to secure the future for our business , whilst establishing competitive advantage in a fast- changing world. 7
INVESTOR PRESENTATION APPENDICES MATERIAL FINANCIAL IMPACTS CURRENT AND PRIOR YEAR PRIOR YEAR CURRENT YEAR A R266.8m negative impact arising A R105.0m profit on sale of Total impairments of dormant farms in the Chicken from the COVID-19 crisis and R1 506.3 million were business unit stemming from the relating to additional costs incurred recognised in the current year decision to reduce commodity (2019:R763.7 million). Cash- chicken volumes in February 2017 A net gain on bargain purchase generating unit (CGU) specific relates to the gain arising from the impairments of R1 505.4 A R47.0 million profit on disposal Vector acquisition of the Imperial million were recognised in the of the prepared lines at the cold chain business. The total gain Groceries, Baking, Chicken, Speciality Bronkhorstspruit site on bargain purchase of R277.5m Sugar and Vector business units has been offset by once-off costs of (2019: R761.9 million relating R110.0m related to the to the Sugar CGU) synergisation of the networks; An IFRS 9 fair value loss of The implementation of IFRS 16 R13.1m (2019: R32.4m gain), from 1 July 2019, using the relating to the fair value gains “simplified” approach with and losses on commodity comparatives not being restated. contracts entered into as part For the current year, the impact of of the Group’s raw material IFRS 16 resulted in EBITDA procurement strategy increasing by R237.7m and Headline Earnings increasing by R55.6m 8
INVESTOR PRESENTATION APPENDICES PERFORMANCE REVENUE (Rbn) 27.8 EBITDA (Rm) 2 224.0 25.9 25.0 25.0 2 046.0 24.4 23.4 1 762.4 1 747.6 1 636.0 19.5 1 525.7 1 206.1 1 201.0 14.2 1 165.7 1 152.2 1 122.2 13.3 13.1 1 082.2 12.9 12.8 12.0 900.4 8.7 688.3 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 INTERIM FULL YEAR INTERIM FULL YEAR AROUND MORE THAN 550 000 TONS OVER 138 TONS 645 000 500 OF FLOUR AND 20 000 OF MAYONNAISE TONS OF DELIVERY MAIZE MILLED EMPLOYEES SOLD DAILY SUGAR PER YEAR VEHICLES PER YEAR 1.2 MILLION MORE THAN 30 15 MILLION 720 000 286 000 WELL KNOWN CHICKENS ON TONS OF LOAVES OF PIES PER DAY & MUCH LOVED THE GROUND AT ANIMAL FEED BREAD PER DAY BRANDS ANY TIME PER YEAR 9
INVESTOR PRESENTATION APPENDICES OUR BRANDS A FEW OF SOUTH AFRICA’S MUCH LOVED BRANDS PRODUCED BY RCL FOODS 5 BRANDS OVER R1bn 5 BRANDS BETWEEN R1bn AND R400m 5 BRANDS BETWEEN R400m AND R100m 19 BRANDS UNDER R100m 10 "Relative sales (12 Months to June 2020)"
INVESTOR PRESENTATION APPENDICES INVESTOR PRESENTATION APPENDICES MARKET SHARE MARKET SHARE VOLUME SHARE % FOR THE PERIOD 6MM JUNE 20 12MM JUNE 20 12MM JUNE 19 SOURCE Dogfoods (RCL Brands) 30.7 29.4 26.8 Aztec* 31.0 29.9 26.0 Aztec Catfoods (RCL Brands) Yum Yum Peanut Butter 28.1 26.0 30.5 Aztec Nola Mayonnaise 41.3 40.9 47.7 Aztec Sorghum (RCL FOODS Brands) 29.6 29.4 28.3 Aztec 43.3 42.6 44.3 Aztec Ouma Rusks 67.1 66.7 69.3 Aztec Mageu Freezer to Fryer 35.8 34.0 30.8 Aztec Polony (RCL FOODS Brands) 9.3 9.4 9.0 Aztec Viennas (RCL FOODS Brands) 16.6 15.3 1.2 Aztec 29.4 29.5 29.2 Aztec Selati Pies and Rolls (RCL FOODS Brands) 2.1 1.9 2.8 Aztec Supreme Flour 13.0 12.8 12.7 SAGIS** Sunbake 9.2 8.6 8.5 SAGIS 11 *Aztec is a provider of market measurement and related services for consumer packaged goods | ** SAGIS is a South African grain information service that supplies market information to the grain and oil seeds industry
3 300 3 550 3 800 4 050 4 300 4 550 4 800 5 050 5 300 5 550 5 800 COMMODITY PRICES Jul-18 Aug-18 AVG Price R4 390 Sep-18 Oct-18 SAFEX WHEAT PRICE (R/Ton) INVESTOR PRESENTATION APPENDICES INVESTOR PRESENTATION APPENDICES Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 1 500 2 000 2 500 3 000 3 500 4 000 May-19 Jun-19 Jul-18 9.2% Jul-19 Aug-18 AVG price R2 522 SAFEX YELLOW MAIZE PRICE (R/Ton) Aug-19 F19 Sep-18 Sep-19 Oct-18 Oct-19 Nov-18 Nov-19 Dec-18 Dec-19 Jan-19 Jan-20 Feb-19 Feb-20 Mar-19 AVG Price R4 793 Mar-20 Apr-19 Apr-20 May-19 May-20 Jun-19 7.1% Jun-20 Jul-19 Aug-19 Sep-19 255 280 305 330 355 380 405 430 Oct-19 Jul-18 Nov-19 Aug-18 AVG Price Dec-19 $312 Sep-18 Jan-20 Oct-18 Feb-20 AVG Price R2 702 Nov-18 Mar-20 F20 Apr-20 Dec-18 May-20 CME SOYA PRICE ($/Ton) Jan-19 Jun-20 Feb-19 Mar-19 Apr-19 May-19 Jun-19 4.8% 10.50 11.50 12.50 13.50 14.50 15.50 16.50 17.50 18.50 19.50 Jul-19 Aug-19 Jul-18 Sep-19 Aug-18 AVG Price Oct-19 R14.18 F19 Sep-18 Nov-19 Oct-18 Dec-19 Nov-18 Jan-20 Dec-18 Feb-20 AVG Price Jan-19 Mar-20 $296 Feb-19 Apr-20 RAND/USD Mar-19 May-20 Apr-19 Jun-20 May-19 10.4% Jun-19 Jul-19 3 700 4 200 4 700 5 200 5 700 6 200 6 700 7 200 7 700 8 200 8 700 9 200 Aug-19 Sep-19 Jul-18 Oct-19 AVG Price Aug-18 Nov-19 R5 174 Sep-18 Dec-19 SAFEX SUNFLOWER PRICE (R/Ton) Oct-18 Jan-20 Nov-18 Feb-20 AVG Price Dec-18 Mar-20 R15.66 F20 Apr-20 Jan-19 May-20 Feb-19 Mar-19 Jun-20 Apr-19 May-19 Jun-19 7.8% Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 AVG Price Mar-20 R5 579 Apr-20 May-20 Jun-20 12
INVESTOR PRESENTATION APPENDICES INVESTOR PRESENTATION APPENDICES GROCERIES The Groceries business unit consists of a portfolio of leading South African brands spanning staples to top end offerings across a range of food and animal product categories. It is made up of Grocery, GROCERY Pies and Beverages Pretoria x2 Krugersdorp Randfontein PIES Molteno BEVERAGES 13
INVESTOR PRESENTATION APPENDICES INVESTOR PRESENTATION APPENDICES BAKING BAKING IS MADE UP OF THE FOLLOWING CATEGORIES: Bread, buns and rolls – the fourth largest bread brand nationally and produces a range BREAD, BUNS & ROLLS of baked goods under Sunbake and DOB Tzaneen brands Polokwane Milling – produces flour and a range of Centurion maize meal products at its flour mill - the Bushbuckridge Pretoria largest single site flour mill in Southern Africa Nelspruit Spartan Rustenburg Speciality – produces a range of ready to Benoni eat products across speciality bread, ambient cake and chilled cakes & desserts, mainly for MILLING Woolworths SPECIALITY Worcester 14
INVESTOR PRESENTATION APPENDICES INVESTOR PRESENTATION APPENDICES CHICKEN The Chicken category produces a wide range of chicken products under 3 well established brands: Rainbow, Simply Chicken and Farmer Brown. In addition to 3 primary processing plants and 2 further processing plants, Chicken has 180 rearing, laying and broiler farms and hatcheries across the country, with 20m birds on the ground The Feed category produces grain-based Vaalwater feeds for a range of species under the brands of Epol, Driehoek, Equus, Lotmix and Winterveld Rustenburg Pretoria CHICKEN Wolwehoek X2 Hammarsdale ANIMAL FEED East London Worcester 15
INVESTOR PRESENTATION APPENDICES CHICKEN CHICKEN INTEGRATED SUPPLY CHAIN FROM “FARM TO FORK” GP OPERATION AGRICULTURE PROCESSING BROILER GRANDPARENT GRANDPARENT FARMS PARENT FARMS CHICKS FARMS PROCESSING REARING LAYING HATCHING REARING LAYING HATCHING GROWING BROILER 21 WEEKS 40 WEEKS 3 WEEKS 21 WEEKS 40 WEEKS 3 WEEKS 34 DAYS 3 PLANTS & 2 FP PLANTS World’s oldest pedigree broiler breed • Located in Carolina and East London to ensure optimal bio-security • 3 broad agricultural regions: Northern, KZN, W Cape • FEED SUPPLY 5 broiler feed mills producing 876 000 tons pa CONSUMERS BRANDS CUSTOMERS DISTRIBUTION Grade A Quality, Grade A Taste The consumer is They taste so at the heart of good ‘cos they our business eat so good The Chicken Experts 16
INVESTOR PRESENTATION APPENDICES INVESTOR PRESENTATION APPENDICES SUGAR The Sugar business unit is made up of the following categories: • Sugar – produces a range of sugar products under the leading sugar brand Selati • Molatek – produces molasses-based feed for a range of species Komati Malelane SUGAR Pongola ANIMAL FEED 17
Recommend
More recommend
