Annual Results for the year ended 30 June 2010 Annual Financial - - PowerPoint PPT Presentation

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Annual Results for the year ended 30 June 2010 Annual Financial - - PowerPoint PPT Presentation

Apr 21, 2023 162 likes •778 views

Annual Results for the year ended 30 June 2010 Annual Financial Results ended 30 June 2010 AGENDA Introduction and Highlights Paul Schouten CEO Financial performance p John Haveman CFO Focus on automotive market Ugo Frigerio MD,

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SLIDE 1

Annual Results

for the year ended 30 June 2010

Annual Financial Results

ended 30 June 2010

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SLIDE 2

AGENDA

Introduction and Highlights Paul Schouten CEO Financial performance John Haveman CFO p Focus on automotive market Ugo Frigerio MD, Automotive Divisional performance Paul Schouten CEO Divisional performance Paul Schouten CEO Prospects Paul Schouten CEO

Annual Results

30 June 2010

1

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SLIDE 3

HIGHLIGHTS

Financial Strong operating cash flows Debt/equity ratio 23.9% HEPS of 21.2 cents (previous year 11.4 cents) Net asset value per share R3.13 Cash Flow Operating margins improved from 3.4% to 4.9% Lower interest charge Lower net working capital Limited capex =R190 million free cash flow Operations Hosaf plant operating well

Annual Results

30 June 2010

2

p p g Recovery in automotive vehicle build

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SLIDE 4

A l Fi i l R lt Annual Financial Results

for the year ended 30 June 2010

Annual Financial Results

ended 30 June 2010

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SLIDE 5

INCOME STATEMENT

  • Headline earnings growth from loss of 3.2 cents to profit of 21 cents
  • Finance costs down due to improved borrowings and lower rates
  • Tax rate high due to permanent differences on pension fund surplus
  • Earnings growth from loss of 8 8 cents to profit of 20 6 cents

June 2010 Rm June 2009 Rm Continuing operations

  • Earnings growth from loss of 8.8 cents to profit of 20.6 cents

Revenue 3 970.5 3 839.0 Operating profit before restructuring costs 198.2 152.5 Restructuring costs (3.7) (19.9) Net finance costs (52 7) (63 4) Net finance costs (52.7) (63.4) Joint ventures 3.0 2.7 Profit before taxation 144.8 71.9 Taxation (48.7) (20.5) Profit after taxation 96.1 51.4 Net loss from discontinued operations (2.4) (84.1) Minorities (6.3) (4.6) ( ) ( ) Net profit/(loss) 87.4 (37.3) HEPS 21.0 (3.2) EPS 20 6 (8 8)

Annual Results

30 June 2010

4

EPS 20.6 (8.8)

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SLIDE 6

BALANCE SHEET – ASSETS

2010 2009

  • Balance sheet strengthening
  • Properties valued at R591m, book value R213m
  • Net asset value per share (cents)

313 292 June 2010 Rm June 2009 Rm Assets

  • Net tangible asset value per share (cents)

297 276 Fixed assets 945.7 939.9 Goodwill 66.7 66.7 Pension fund surplus 25.1 30.4 Deferred taxation assets 68.3 107.3 Joint ventures 22.7 22.1 Non-current assets 1 128.5 1 166.4 Inventories 646.3 675.8 Accounts receivable 621.1 547.9 Cash and equivalents 101.8 58.5 Assets held for sale 12.5 60.0 Current assets 1 381.7 1 342.2

Annual Results

30 June 2010

5

Total assets 2 510.2 2 508.6

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SLIDE 7

FIXED ASSETS MOVEMENT

June 2010 Rm June 2009 Rm Opening balance 939.9 828.2 p g Capital expenditure 63.3 257.4 Disposals (2.6) (17.2) Depreciation (70.8) (59.3) Impairments (0.3) (19.4) Transfers from/(to) held for sale 16.2 (49.8) Closing balance 945.7 939.9 By category Land and buildings 193.6 192.3 Investment property 19.4 5.5 Plant and machinery 687.8 701.3 Other assets 44.9 40.8

Annual Results

30 June 2010

6

Total 945.7 939.9

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SLIDE 8

CAPITAL EXPENDITURE

  • Restricted to less than depreciation charge
  • Capital cycle of last five years complete
  • R13 million capex incurred in Automotive to acquire Dura assets
  • No major capex planned for 2011

June 2010 June 2009 Capex Depreciation Capex

  • No major capex planned for 2011

Industrial segment 39.7 56.0 233.5 Automotive 21.3 26.5 15.4 Industrial footwear 2 7 6 4 19 7 Industrial footwear 2.7 6.4 19.7 Hosaf 15.7 23.1 198.4 Consumer segment 23.6 14.8 23.9 Consumer segment 23.6 14.8 23.9 Bull Brand 8.8 3.8 8.9 Brenner 4.4 4.0 4.4 Jordan 2.4 2.7 5.6 Glodina 8.0 4.3 5.0 TOTAL 63.3 70.8 257.4

Annual Results

30 June 2010

7

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SLIDE 9

BALANCE SHEET – EQUITY AND LIABILITIES

  • Liabilities reducing and gearing improving

June 2010 Rm June 2009 Rm Equity 1 364.7 1 272.1 q y Interest-bearing borrowings 30.5 29.6 Deferred taxation liabilities 20.6 23.8 Retirement benefit obligations 10.6 11.3 Long-term liabilities 61.7 64.7 Accounts payable and provisions 686.9 628.0 Short-term loans and bank overdrafts 396.9 535.5 Liabilities held for sale

  • 8.3

Current liabilities 1 083.8 1 171.8 Total equity and liabilities 2 510.2 2 508.6

Annual Results

30 June 2010

8

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SLIDE 10

CASH FLOW STATEMENT

  • Cash flow continues to improve
  • 2009 cash flow included Bull Brand and Hosaf effects
  • Cash taxation paid in Feltex Fehrer JV
  • Group assessed losses R633 million

June 2010 Rm June 2009 Rm EBITDA 269.0 125.1

  • Group assessed losses R633 million

Non-cash items (0.4) 11.2 Decrease in working capital 28.4 231.8 Decrease in inventories 44.1 223.9 (Increase)/decrease in accounts receivable (73.7) 181.9 Decrease/(increase) in accounts payable 58.0 (174.0) Operating cash flows 297.0 368.1 Net finance costs (54.2) (77.5) Cash taxation paid (8.9) (14.2) p ( ) ( ) Capital expenditure (63.3) (257.4) Disposal of PPE 18.4 19.8 Free cash flow 189.0 38.8 Other investing activities 2.4 7.1 g Dividends paid (2.1) (3.6) Repayment of loans (128.2) (141.0) Change in cash and equivalents 61.1 (98.7)

Annual Results

30 June 2010

9

Free cash flow per share (cents) 44.5 9.1

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SLIDE 11

REVENUE

  • Growth in consumer business challenging
  • Change in profile following Hosaf expansion and Bull Brand fresh meat closure
  • Hosaf now the largest division

June 2010 Rm % June 2009 Rm % Hosaf now the largest division Industrial segment 2 495 62% 2 242 48% Automotive 752 19% 782 17% Automotive - discontinued 28 1% 58 1% I d t i l f t 342 9% 349 7% Industrial footwear 342 9% 349 7% Hosaf 1 373 34% 1 053 23% Consumer segment 1 505 38% 2 322 52% Consumer segment 1 505 38% 2 322 52% Bull Brand 285 7% 278 6% Bull Brand - discontinued

  • 668

16% Brenner 680 17% 831 18% Brenner 680 17% 831 18% Jordan 342 9% 351 8% Glodina 198 5% 194 4%

Annual Results

30 June 2010

10

TOTAL 4 000 100% 4 564 100%

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SLIDE 12

OPERATING PROFIT BEFORE RESTRUCTURING

  • 45% improvement on 2009
  • Hosaf now 37% of the total following expansion
  • Automotive improvement

June 2010 Rm June 2009 Rm Industrial segment 142.4 73.5 Automotive improvement g Automotive 35.4 5.2 Automotive - discontinued 0.5 (8.5) Industrial footwear 31.3 30.0 Hosaf 75.2 46.8 Consumer segment 56.3 64.7 Bull Brand 7.5 8.8 Bull Brand - discontinued

  • (6.8)

Brenner 28.7 44.1 Jordan 11.1 2.4 Glodina 9.0 16.2

Annual Results

30 June 2010

11

TOTAL 198.7 138.2

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SLIDE 13

DEBT REDUCTION PROCEEDING TO PLAN

  • Goal of continuous improvement
  • Reached target net debt/equity ratio of < 30%
  • EBITDA interest cover 5 times
  • Some divisions still receiving attention
  • Sale of under-utilised properties to continue
  • Risks to the downside:
  • Exchange rate
  • Activity levels
  • Commodity prices

Annual Results

30 June 2010

12

y p

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SLIDE 14

DEBT HISTORY

Interest-bearing debt/equity %

40% 45% 50% 30% 35% 40% 43% 43% 40% 43% 40% 20% 25% 27% 22% 23% 20% 34% 24% 22% 10% 15% 0% 5% Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Annual Results

30 June 2010

13

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SLIDE 15

CAPITAL DISTRIBUTION

  • Reinstated following good cash flows in 2009 and 2010
  • Final cash distribution of 7 cents per share proposed
  • Cover of 3 times headline earnings

Final distribution June 2010 June 2009 Cover of 3 times headline earnings

  • Cover of 6.4 times free cash flow

Headline earnings (cents per share) 21.0 (3.2) Free cash flow (cents per share) 44.5 9.1 Distribution per share (cents per share) 7.0

  • Total distribution proposed (R million)

29.7

  • Cover (times - headline earnings)

3.0

  • Cover (times - free cash flow)

6.4

  • Annual Results

30 June 2010

14

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SLIDE 16

I d t i l S t Industrial Segment

Annual Financial Results

ended 30 June 2010

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SLIDE 17

AUTOMOTIVE DIVISION

Annual Financial Results

ended 30 June 2010

16

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SLIDE 18

REVENUE AND OPERATING PROFIT

Rm Dec June June June June 2005 2007 2008 2009 2010 R 818 934 1063 840 780 Revenue 818 934 1063 840 780 Operating Profit/(loss) 84 100 32 (3) 36 Operating Margin 10.3% 10.7% 3.0% (0.4%) 4.6%

Revenue

1 200

Operating profit

120

818 934 1 063 840 780 800 1 000

100 84 80 100

780 400 600

36 40 60

200 2005 2007 2008 2009 2010

36 (3) 32 20 2005 2007 2008 2009 2010

Annual Results

30 June 2010

2005 2007 2008 2009 2010

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SLIDE 19

TOTAL PASSENGER AND LCV SALES 2006 TO 2010 TOTAL PASSENGER AND LCV SALES 2006 TO 2010

70 000 75 000 60 000 65 000 70 000 50 000 55 000 40 000 45 000 30 000 35 000 2006 54 817 62 231 69 746 57 987 63 710 66 942 71 824 71 872 69 655 71 855 70 612 61 505 J F M A M J J A S O N D 2006 54 817 62 231 69 746 57 987 63 710 66 942 71 824 71 872 69 655 71 855 70 612 61 505 2007 58 539 66 361 69 455 54 100 63 153 59 630 64 559 70 147 55 574 67 965 61 162 55 538 2008 56 122 63 623 67 170 61 438 59 698 60 841 67 300 64 317 65 437 63 359 58 082 49 949 2009 39 596 42 216 49 522 34 103 37 957 40 181 40 109 37 109 44 036 50 919 51 420 41 773 2010 41 941 46 598 57 287 46 352 55 367 52 339

Annual Results

30 June 2010

18

Source of Data: NAAMSA

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SLIDE 20

LOCAL vs EXPORT SALES BY MONTH – JAN 2009 to JUNE 2010

70.0% 14.00 50.0% 60.0% 12 00 13.00 40.0% ercentage 11.00 12.00 and / Euro 20.0% 30.0% Pe 10.00 Ra % 10.0% 9.00 0.0% 8.00 % Export 57.7 49.3 47.4 50.1 48.9 57.2 60.1 65.1 55.7 57.1 59.8 55.4 36.4 43.3 50.5 52.5 58.5 53.2 % Local 42.3 50.7 52.6 49.9 51.1 42.8 39.9 34.9 44.3 42.9 40.2 44.6 63.6 56.7 49.5 47.5 41.5 46.8 Exchange Rate 13.13 12.80 12.99 11.89 11.44 11.27 11.20 11.34 10.95 11.09 11.21 10.93 10.65 10.50 10.06 9.86 9.61 9.34 Jan Feb Marc h April May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Annual Results

30 June 2010

19

Source of Data: NAAMSA

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SLIDE 21

PASSENGER CAR EXPORTS BY MAJOR DESTINATION (>1 000)

July 2009 to June 2010

1 182 South Korea 2 725 1 488 Italy Egypt 5 720 3 041 Germany France 6 816 Australia y 16 148 9 207 UK Japan 26 855 5 000 10 000 15 000 20 000 25 000 30 000 USA YTD June 2010

Annual Results

30 June 2010

20

Source of Data: NAAMSA

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SLIDE 22

LCV EXPORTS BY MAJOR DESTINATION (>500)

January to June 2010

671 648 K Sweden 808 752 671 Zambia Portugal Kenya 1 184 881 808 Japan Mozambique Zambia 1 576 1 208 Nigeria Zimbabwe 2 878 2 148 France UK 4 039 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 Algeria YTD June 2010

Annual Results

30 June 2010

21

Source of Data: NAAMSA

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SLIDE 23

VEHICLES SOLD VERSUS VEHICLES BUILT

January to June 2010

  • 45% improvement on 2009
  • Hosaf now 37% of the total following expansion
  • Automotive improvement

OEM Vehicles sold Vehicles built Ford 31 330 26 248 Nissan/Renault 38 278 38 881 BMW 47 481 45 973 Mercedes Benz 48 204 49 912 Toyota 111 322 112 376 General Motors 25 681 24 974 Volkswagen 93 054 93 935 Fi t d V l 518 Fiat and Volvo 518 Total 395 868 392 299

Annual Results

30 June 2010

22

Source of Data: Vehicles sold per NAAMSA, vehicles built per Feltex

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SLIDE 24

OE PRODUCTION AND FELTEX FORECAST

Jul 07 to Jun 08 Jul 08 to Jun 09 Jul 09 to Jun 10 Jul 10 to Jun 11 Actual Actual Actual Feltex Actual Actual Actual Feltex forecast Ford 63 394 43 648 26 248 20 576 Nissan 34 056 25 135 38 881 42 420 BMW 49 193 44 474 45 973 44 460 MBSA 57 461 44 283 49 912 47 880 Toyota 170 999 133 470 112 376 111 720 GMSA 68 408 33 648 24 974 21 660 VWSA 89 924 73 762 93 935 100 320 Total 533 435 398 420 392 299 389 036

Annual Results

30 June 2010

23

Source of Data: Feltex

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SLIDE 25

UTILISATION OF PRODUCTION CAPACITY

  • 7 SOUTH AFRICAN OEMs

90.0% 100.0% 70.0% 80.0% 50.0% 60.0% 30.0% 40.0% 10.0% 20.0% 0.0% Cars 79.7% 81.1% 80.1% 67.7% 68.3% 59.4% 69.6% 72.5% LCV 72.1% 79.9% 87.8% 82.7% 73.9% 56.5% 65.1% 62.9% 2004 2005 2006 2007 2008 2009 Q1 2010 Q2 2010

Annual Results

30 June 2010

24

Source of Data: NAAMSA

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SLIDE 26

MODEL RUN IN’S AND RUN OUT’S

New Models Run Out Models Ford T6 Q3 – 2011 Ford Focus Q1 – 2011 BMW F30 Q1 – 2012 Ford Bantam Q2 – 2011 Corsa Viva Q3 – 2011 Ford Ranger Q2 – 2011 Mazda Drifter Q2 - 2011 BMW E90 Q4 – 2011 Corsa Lite Q2 – 2011

Annual Results

30 June 2010

25

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SLIDE 27

VEHICLE SALES BY FINANCIAL YEAR

LOCAL VEHICLES ALL OEMs

600 000 400 000 500 000 300 000 400 000 200 000 100 000 LCV 107 189 118 707 117 856 110 616 119 157 146 474 190 824 230 618 206 709 163 945 141 030 Passenger 213 537 239 411 262 956 265 333 277 323 296 929 335 645 304 927 303 884 269 020 254 320 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Annual Results

30 June 2010

26

Source of Data: NAAMSA

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SLIDE 28

FELTEX AUTOMOTIVE DIVISION

REVENUE AND OPERATING PROFIT FROM CONTINUING OPERATIONS (INCL. JVs)

90 000 100 000 930 000 950 000 70 000 80 000 90 000 ) 890 000 910 000 930 000 50 000 60 000 70 000 g profit (R'000 850 000 870 000 890 000 nue (R'000) 30 000 40 000 Operating 810 000 830 000 Reven 10 000 20 000 770 000 790 000 750 000 Revenue 898 730 896 957 880 231 Operating profit 41 933 17 834 49 658 2008 2009 2010

Annual Results

30 June 2010

27

Source of Data: NAAMSA

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SLIDE 29

FELTEX AUTOMOTIVE DIVISION

CASH GENERATED FROM OPERATING ACTIVITIES (INCL. JVs)

R140 000 R122 612 R100 000 R120 000 R80 000 R100 000 R60 000 R83 798 R20 000 R40 000 R11 540 R0 2008 2009 2010

Annual Results

30 June 2010

28

Source of Data: NAAMSA

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SLIDE 30

FELTEX AUTOMOTIVE DIVISION

SALES BY CUSTOMER – JULY 2009 TO JUNE 2010

GMSA 2% Nissan 2% Toyota BMW 12% Ford 4% Toyota Toyota 33% 12% MBSA Other VWSA VWSA 13% VWSA BMW Ford MBSA GMSA Nissan MBSA 17% Other 17%

Annual Results

30 June 2010

29

Source of Data: Feltex

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SLIDE 31

FELTEX AUTOMOTIVE DIVISION

SALES BY BUSINESS UNIT – JULY 2009 TO JUNE 2010

F Futuris Feltex 6% Unifrax Foam 5% 6% Rieter Feltex 8% Caravelle 3% Unifrax 11% Trim Feltex Fehrer Unifrax Trim 36% Rieter Feltex Futuris Feltex Foam Caravelle Feltex Fehrer 31% 36% 31%

Annual Results

30 June 2010

30

Source of Data: Feltex

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SLIDE 32

INDUSTRIAL FOOTWEAR DIVISION

Annual Results

30 June 2010

31

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SLIDE 33

REVENUE AND OPERATING PROFIT

INDUSTRIAL FOOTWEAR DIVISION Rm Dec June June June June 2005 2007 2008 2009 2010 R 263 311 338 349 342 Revenue 263 311 338 349 342 Operating profit 31 27 30 30 31 Operating margin 11.8% 8.7% 8.9% 8.6% 9.1%

Revenue

400

Operating profit

35 342 349 338 311 263 250 300 350

31 27 30 30 31

25 30 35 263 100 150 200 10 15 20 50 100 2005 2007 2008 2009 2010 5 2005 2007 2008 2009 2010 Annual Results

30 June 2010

32

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SLIDE 34

INDUSTRIAL FOOTWEAR

  • Operating profit steady
  • Rand has made it difficult to compete

p

  • Local production has been on short time
  • Increased activity of competitors and more importers
  • Improve design capabilities
  • Changes in marketing – personnel and strategic

Changes in marketing personnel and strategic

  • Potential Australian exports
  • Increase in Mossop turnover – new customers

Annual Results

30 June 2010

33

Annual Results

30 June 2010

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SLIDE 35

HOSAF

Annual Results

30 June 2010

34

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SLIDE 36

REVENUE AND OPERATING PROFIT

HOSAF Rm Dec June June June June 2005 2007 2008 2009 2010 R 709 858 988 1 053 1 373 Revenue 709 858 988 1 053 1 373 Operating profit 44 51 44 47 74 Operating margin 6.2% 5.9% 4.5% 4.5% 5.4%

Revenue

1 600

Operating profit

80

1 373 1 053 1 000 1 200 1 400

74 50 60 70 80

1 053 988 858 709 400 600 800 1 000

44 51 44 47 20 30 40 50

200 400 2005 2007 2008 2009 2010

10 20 2005 2007 2008 2009 2010

Annual Results

30 June 2010

35

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SLIDE 37

PET PRODUCTION CAPACITY

Tonnes (000's) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SANS 85 85 85 85 85 85 85 85

  • Hosaf

15 15 33 33 48 54 57 60 85 120 Total 100 100 118 118 133 139 142 145 85 120 Imports 9 11 11 7 5 8 20 20 100 100 127 129 144 146 147 153 105 140

Annual Results

30 June 2010

36

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SLIDE 38

HOSAF SALES MIX

120 000 140 000 80 000 100 000 s per annum 40 000 60 000 Tonnes 20 000 PET 13 333 12 305 14 590 33 628 45 304 53 366 52 550 59 040 64 607 109 140 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PET 13 333 12 305 14 590 33 628 45 304 53 366 52 550 59 040 64 607 109 140 Fibre 30 267 39 385 38 690 37 786 30 801 27 612 26 885 24 890 19 213 10 425 Plant capabilities

  • working towards producing 15 tonnes per hour at 98% utilisation = 128 000 tonnes

Annual Results

30 June 2010

37

g g

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SLIDE 39

HOSAF – MARKET SPLIT

Mil litres 2002 2003 2004 2005 2006 2007 TONNES Beverages Carbonated soft drinks 2 207 2 355 2 464 2 539 2 552 2 687 83% Beverages Water 95 119 152 202 270 351 11% Beverages Cordials and squashes 95 96 98 101 105 115 4% Beverages Sports drinks 64 66 70 73 78 81 3% 2 461 2 636 2 784 2 915 3 005 3 234 100% 105 000 Tonnes TONNES Food pack Bottle/tubs 13 147 13 775 14 681 15 430 16 263 17 027 Food pack Rigid trays 8 930 11 767 13 120 14 537 15 540 16 410 22 0 2 42 2 801 29 96 31 803 33 43 3 000 22 077 25 542 27 801 29 967 31 803 33 437 35 000

12%

HOSAF – PET MARKET

2% 13%

Carbonated soft drinks Water Cordials and squashes Sports drinks

62% 8% 3%

Sports drinks Bottle/tubs Rigid trays

Annual Results

30 June 2010

38

Source of Data: BMI Foodpack

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SLIDE 40

HOSAF – WORLD MARKETS

100% 25 000

PET WORLD MARKET

95% 100% 20 000 25 000 90% sation % 15 000 nnes 80% 85% Plant utilis 10 000 000' ton 75% 80% 5 000 70% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

  • Capacity

Demand Utilisation

Annual Results

30 June 2010

39

Source of Data: GSI Consultant

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SLIDE 41

HOSAF

Market developments

  • Fast reheat – energy saving and light weighting
  • Wine bottles for Backsberg
  • PET bottles are fully recyclable and have a lower carbon footprint than glass.

Carbon emissions for glass 89 g vs PET 58 g done.

  • A glass wine bottle 750 ml weighs 400 g

PET wine bottle 750 ml weighs 50 g Th PET b ttl h ll di i

  • The PET bottle has smaller dimensions.

Up to 36% more product can be exported in a container.

  • Budweiser beer at World Cup

S stainable gl col from s gar ne prod ct for Valpré (Feb 2011)

  • Sustainable glycol from sugar – new product for Valpré (Feb 2011)

Annual Results

30 June 2010

40

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SLIDE 42

RAW MATERIAL DERIVATIVES

Annual Results

30 June 2010

41

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SLIDE 43

C S t Consumer Segment

Annual Financial Results

ended 30 June 2010

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SLIDE 44

BULL BRAND FOODS

Annual Results

30 June 2010

43

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SLIDE 45

REVENUE AND OPERATING PROFIT

BULL BRAND FOODS Rm Dec June June June June 2005 2007 2008 2009 2010 R 726 910 954 278 285 Revenue 726 910 954 278 285 Operating profit 38 5 32 8 8 Operating margin 5.2% 0.5% 3.4% 2.9% 2.8%

Revenue

1 200

Operating profit

40 910 954 800 1 000 32 38 25 30 35 726 400 600 10 15 20 278 285 200 2005 2007 2008 2009 2010 8 8 5 5 10 2005 2007 2008 2009 2010 Annual Results

30 June 2010

44

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SLIDE 46

BULL BRAND

Results Cannery turnover slightly down Aff t d b k i th d d fi hi

  • Affected by weakness in the economy and good fishing season
  • Still on track for strong market share gains since 2001
  • Strong performance of sales to Famous Brands in June

Operational

  • Improved service levels to customer
  • Production flow improvements and operational stats

Production flow improvements and operational stats Strategic

  • New brand manager employed

g p y

  • Major drive for new products
  • Export initiatives

Annual Results

30 June 2010

45

Annual Results

30 June 2010

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SLIDE 47

GROWTH IN CANNERY SALES

SALES OF SHRINKS (000s)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2 731 2 783 3 027 3 275 3 813 4 208 4 408 4 639 4 024

4 639 4 500 5 000 2 731 2 783 3 027 3 275 3 813 4 208 4 408 4 639 4 024 2 500 3 000 3 500 4 000 4 500 2 731 2 783 500 1 000 1 500 2 000 2 500 500 2002 2003 2004 2005 2006 2007 2008 2009 2010 Annual Results

30 June 2010

46

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SLIDE 48

BRENNER MILLS

Annual Results

30 June 2010

47

slide-49
SLIDE 49

REVENUE AND OPERATING PROFIT

BRENNER MILLS Rm Sept Sept June June June 2005 2006 2008 2009 2010 R 834 528 701 831 680 Revenue 834 528 701 831 680 Operating profit (40) (14) 37 44 26 Operating margin (4.8%) (2.7%) 5.3% 5.3% 3.8%

Revenue

900

Operating profit

44 50

834 701 831 680 600 700 800

37 44 26 20 30 40 50

528 300 400 500

  • 14
  • 20
  • 10

10 2005 2006 2008 2009 2010

100 200 2005 2006 2008 2009 2010

  • 40
  • 50
  • 40
  • 30

20

Annual Results

30 June 2010

48

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SLIDE 50

BRENNER

Results

  • Plunging maize price
  • Policy of securing raw materials six weeks forward
  • Cost control focus

Operational

  • Working on a new marketing plan
  • New measurements (GPS)

Annual Results

30 June 2010

49

Annual Results

30 June 2010

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SLIDE 51

JORDAN

Annual Results

30 June 2010

50

slide-52
SLIDE 52

REVENUE AND OPERATING PROFIT

JORDAN Rm Dec June June June June 2005 2007 2008 2009 2010 R 282 336 356 351 342 Revenue 282 336 356 351 342 Operating profit 11 18 10 3 11 Operating margin 3.9% 5.4% 2.8% 0.9% 3.2%

Revenue

400

Operating profit

20 282 336 356 351 342 250 300 350 18 12 14 16 18 100 150 200 11 10 11 6 8 10 12 50 100 2005 2007 2008 2009 2010 3 2 4 2005 2007 2008 2009 2010 Annual Results

30 June 2010

51

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SLIDE 53

JORDAN

Results

  • Good operational performance
  • Decrease in own manufacture
  • Reduced management structure

Strategy

  • Factory shops
  • Focus on building brands
  • Current order book is very strong

Annual Results

30 June 2010

52

Annual Results

30 June 2010

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SLIDE 54

SALES BY BRAND

June 2010 Pairs 000’s June 2009 Pairs 000’s Own manufacture 343 414 Own manufacture 343 414 Bronx 211 194 Jordan Shoes 28 52 Sports – 99 Corporate 92 69 Corporate 92 69 Ladies 12 Imports 1 267 1 428 Bronx 414 563 Jordan 187 263 Anton Fabi 125 101 Other 25

  • Ladies

162 154 Asics 120 90 Ol i 233 257 Olympic 233 257 Shops 475 459 Total 2 085 2 301

Annual Results

30 June 2010

53

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SLIDE 55

GLODINA

Annual Results

30 June 2010

54

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SLIDE 56

REVENUE AND OPERATING PROFIT

GLODINA Rm Dec June June June June 2005 2007 2008 2009 2010 R 173 200 219 194 198 Revenue 173 200 219 194 198 Operating profit 18 23 15 16 9 Operating margin 10.4% 11.5% 6.8% 8.2% 4.5%

Revenue

250

Operating profit

25 173 200 219 194 198 150 200 18 23 16 15 20 100 150 15 16 9 10 15 50 2005 2007 2008 2009 2010 5 2005 2007 2008 2009 2010 Annual Results

30 June 2010

55

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SLIDE 57

GLODINA

Results

  • Textile industry under pressure
  • Investments have been a major factor enabling us to compete
  • India will supplement our production capabilities

Annual Results

30 June 2010

56

Annual Results

30 June 2010

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SLIDE 58

P t Prospects

Annual Financial Results

ended 30 June 2010

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SLIDE 59

PROSPECTS

Cash Flow Cash Flow

  • Capex will once again be limited
  • Continued focus on net working capital
  • Expect a further decrease in debt
  • Expect a further decrease in debt

NAV

  • Strong tangible asset value
  • Strong tangible asset value
  • Conservative valuations

HEPS HEPS

  • Cautious outlook
  • Additional PET output should improve operating profit

L b i ill lt i l i t t

  • Lower borrowings will result in lower interest
  • Strategy will be to generate cash and strict cost control
  • Automotive strike and its effect

Di id d d h b i f 3

Annual Results

30 June 2010

58

  • Dividends resumed on the basis of 3x cover
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SLIDE 60

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Annual Financial Results

ended 30 June 2010