INVESTOR PRESENTATION: APPENDICES 4 MARCH 2019 RESULTS FOR THE SIX - - PowerPoint PPT Presentation

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Nov 23, 2022 316 likes •529 views

INVESTOR PRESENTATION: APPENDICES 4 MARCH 2019 RESULTS FOR THE SIX MONTHS ENDED DECEMBER 2018 INVESTOR PRESENTATION APPENDICES RCL FOODS IN CONTEXT FOOD, LIQUOR INSURANCE BANKING HEALTHCARE INDUSTRIAL INFRASTRUCTURE MEDIA & SPORT

SLIDE 1

INVESTOR PRESENTATION: APPENDICES 4 MARCH 2019

RESULTS FOR THE SIX MONTHS ENDED DECEMBER 2018

SLIDE 2

INVESTOR PRESENTATION APPENDICES

RCL FOODS IN CONTEXT

FOOD, LIQUOR & HOME CARE BANKING HEALTHCARE INSURANCE INDUSTRIAL INFRASTRUCTURE MEDIA & SPORT

SLIDE 3

INVESTOR PRESENTATION APPENDICES

SLIDE 4

INVESTOR PRESENTATION APPENDICES

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INVESTOR PRESENTATION APPENDICES

Guided by our passion and underpinned by

ur values, we strive to create value for our

stakeholders through the manufacture and distribution of a wide range of branded and private label food products. In line with our business model, our business activities centre on growing our revenue and profit across both our core and added- value categories, through the effective and balanced use of our capitals.

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INVESTOR PRESENTATION APPENDICES

MATERIAL FINANCIAL IMPACTS

Profit on sale of dormant farms in the Chicken business unit of R105.0m, stemming from the decision to reduce commodity chicken volumes in February 2017 An IFRS 9 fair value gain of R34.1m in the Grocery business unit (December 2017: R8.8m gain), with the improvement over the prior period mainly attributable to gains on sunflower positions

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INVESTOR PRESENTATION APPENDICES

2014 2015 2016 2017 2018 2019

INTERIM FULL YEAR

2014 2015 2016 2017 2018 2019

INTERIM FULL YEAR

PERFORMANCE

300 000

PIES PER DAY

20 MILLION

CHICKENS ON THE GROUND AT ANY TIME OF FLOUR AND MAIZE MILLED PER YEAR

1.2 MILLION

TONS OF ANIMAL FEED PER YEAR

750 000

LOAVES OF BREAD PER DAY

150 TONS

OF MAYONNAISE SOLD DAILY

MORE THAN 20

WELL KNOWN & MUCH LOVED BRANDS

1 500

MORE THAN DELIVERY VEHICLES

OVER 20 000

EMPLOYEES

700 000

AROUND TONS OF SUGAR PER YEAR

550 000 TONS

REVENUE (Rbn)

8.7 19.5 12.0 23.4 12.9 25.0 13.1 25.0 12.8 24.4 13.3 688.3

EBITDA (Rm)

1 122.2 1 206.1 2 224.0 1 152.2 1 762.4 900.4 1 747.6 1 201.0 2 046.0 108.2 1 082.2

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INVESTOR PRESENTATION APPENDICES

OUR BRANDS

A few of South Africa’s much loved brands produced by RCL FOODS

BRANDS UNDER R100m

8

BRANDS OVER R1bn

7

BRANDS OVER R500m

2

BRANDS OVER R100m

8

BRANDS OVER R300m

5

Relative sales (12 Months to December 2018)

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INVESTOR PRESENTATION APPENDICES

MARKET SHARE

*Aztec is a provider of market measurement and related services for consumer packaged goods **AFMA refers to the Animal Feed Manufacturers Associations, which represents approximately 60-65% of the total feed market. Shares are for the period to October. *** SAGIS is a South African grain information service that supplies market information to the grain and oil seeds industry

6MM DEC 18 12MM DEC 17 12MM DEC 18 VOLUME SHARE % FOR THE PERIOD SOURCE

Dogfoods (RCL FOODS Brands) 28.8 29.1 27.4 Aztec* Catfoods (RCL FOODS Brands) 27.6 27.5 23.2 Aztec Yum Yum Peanut Butter 34.1 32.9 30.3 Aztec Nola Mayonnaise 50.9 49.3 41.9 Aztec Sorghum (RCL FOODS Brands) 29.2 28.5 29.4 Aztec Ouma Rusks 46.5 47.9 46.6 Aztec Mageu 69.8 69.9 71.2 Aztec Freezer to Fryer 31.5 30.7 37.7 Aztec Polony (RCL FOODS Brands) 7.4 6.1 10.0 Aztec Viennas (RCL FOODS Brands) 0.0 4.7 20.4 Aztec Selati 25.5 26.7 26.8 Aztec Pies and Rolls (RCL FOODS Brands) 4.3 5.1 8.3 Aztec EPOL 13.5 13.3 13.7 Internal estimates – share of AFMA** Molatek 4.8 4.8 4.4 Internal estimates – share of AFMA Supreme Flour 12.5 12.5 12.6 SAGIS*** Sunbake 8.5 8.6 8.8 SAGIS 9

SLIDE 10

INVESTOR PRESENTATION APPENDICES

1500 1700 1900 2100 2300 2500 2700 2900 3100 3300 3500 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

20.1%

COMMODITY PRICES

CME SOYA PRICE ($/Ton) SAFEX WHEAT PRICE (R/Ton) SAFEX SUNFLOWER PRICE (R/Ton) RAND/USD YELLOW MAIZE PRICE (R/Ton)

Source: Reuters 10 11 12 13 14 15 16 17 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

H1 F18

AVG Price (6m) R13.40

H1 F19

AVG Price (6m) R14.18

5.8%

3500 3700 3900 4100 4300 4500 4700 4900 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

H1 F18

AVG Price (6m) R4 226.0

H1 F19

AVG Price (6m) R4 279.7

1.3%

200.0 250.0 300.0 350.0 400.0 450.0 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

H1 F18

AVG Price (6m) $313.5

0.6%

H1 F19

AVG Price (6m) $315.3

3 500.0 4 000.0 4 500.0 5 000.0 5 500.0 6 000.0 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

H1 F18

AVG Price (6m) R4 637.6

9.5%

H1 F19

AVG Price (6m) R5 078.8

H1 F18

AVG Price (6m) R1 980.1

H1 F19

AVG Price (6m) R2 377.8

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INVESTOR PRESENTATION APPENDICES

CONSUMER: CHICKEN

INTEGRATED SUPPLY CHAIN FROM “FARM TO FORK”

GP OPERATION AGRICULTURE PROCESSING

GRANDPARENT CHICKS

GRANDPARENT FARMS PARENT FARMS BROILER FARMS

REARING 21 WEEKS LAYING 40 WEEKS HATCHING 3 WEEKS GROWING 34 DAYS BROILER PROCESSING 3 PLANTS & 2 FP PLANTS REARING 21 WEEKS LAYING 40 WEEKS HATCHING 3 WEEKS

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 feed mills producing 1.2 million tons pa

CONSUMERS

The consumer is at the heart of

ur business

BRANDS

Grade A Quality, Grade A Taste They taste so good ‘cos they eat so good The Chicken Experts

CUSTOMERS DISTRIBUTION

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INVESTOR PRESENTATION APPENDICES

CONSUMER: CHICKEN

Limpopo Province Windhoek Namibia Northern Cape Cape Town Western Cape Worcester Botswana North West Rustenburg Wolwehoek Free State Lesotho Eastern Cape East London Mpumalanga Carolina KwaZulu Natal Gauteng Hammarsdale Durban

The Chicken business unit produces a wide range of chicken products under 3 well established brands; Rainbow, Simply Chicken and Farmer Brown.

180 rearing, laying and broiler farms and hatcheries 20m birds on the ground 3 primary processing plants 2 further processing plants

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INVESTOR PRESENTATION APPENDICES

CONSUMER: GROCERIES

Limpopo Northern Cape Western Cape Botswana North West Free State

Lesotho

Eastern Cape Mpumalanga KwaZulu Natal Molteno Gauteng Randfontein Limpopo Northern Cape Western Cape Botswana North West Free State

Lesotho

Eastern Cape Mpumalanga KwaZulu Natal Krugersdorp Gauteng

GROCERY PIES

The Grocery business unit consists of a portfolio of leading South African brands spanning staples to top end offerings across a range

f food and animal product categories.

The Pies business unit produces a range of high quality pies under the Pieman’s brand in frozen unbaked, frozen baked and chilled baked formats.

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INVESTOR PRESENTATION APPENDICES

Limpopo Northern Cape Western Cape Botswana North West Free State

Lesotho

Mpumalanga KwaZulu Natal Limpopo Northern Cape Western Cape Botswana North West Free State

Lesotho

Eastern Cape Mpumalanga KwaZulu Natal Centurion Gauteng Gauteng Pretoria x2 Spartan Worcester Eastern Cape Bronkhorstspruit

CONSUMER: GROCERIES

BEVERAGES SPECIALITY

The Beverages business unit produces a maize-based drink under the Mageu No 1, Smooth and Mnandi brands. The Speciality business unit produces a range of ready to eat products across speciality bread, ambient cake and chilled cakes & desserts, mainly for Woolworths.

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INVESTOR PRESENTATION APPENDICES

SUGAR & MILLING: SUGAR

3 Sugar Mills based in Malelane, Komati and Pongola, were established in 1968, 1993 and 1954 respectively produce approximately 700 000 tons of sugar per year.

The Sugar business unit produces a range of sugar products under the leading sugar brand Selati.

15 Limpopo Province Tzaneen Windhoek Namibia Northern Cape Cape Town Western Cape Botswana North West Free State Lesotho Eastern Cape East London Port Elizabeth Bloemfontein KwaZulu Natal Durban Pongola Pretoria Malelane Nelspruit Komati Mpumalanga Gauteng

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INVESTOR PRESENTATION APPENDICES

SUGAR IMPORTS AND DUTIES

Cumulative tons imported from 1

April 2017 and 2018 (start of industry year)

A total of 63 899 tons have been

imported for the six months ended December 2018, down 71.4% (Dec 2017: 223 573 tons)

Duty free periods in August and

September 2017 resulted in record high imports being reported

Revised tariff of R4 195/ton

implemented in August 2018, which substantially reduced imports

Despite the revised tariff, the
verhang of high levels of

imported sugar is still impacting the local market

Source: Import duty is published by Customs in the Government Gazette | Source: Import data is obtained by SASA

DUTIES (R/ton) CUMULATIVE TONS IMPORTED (SOUTH AFRICA) 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 April 17/18 May 17/18 Jun 17/18 Jul 17/18 Aug 17/18 Sept 17/18 Oct 17/18 Nov 17/18 Dec 17/18

17 (Tons) 18 (Tons) 17 (Duties) 18 (Duties)

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INVESTOR PRESENTATION APPENDICES

SUGAR & MILLING: MILLBAKE

Northern Cape Western Cape Botswana North West Free State

Lesotho

Mpumalanga KwaZulu Natal Limpopo Northern Cape Western Cape Botswana North West Free State

Lesotho

Eastern Cape Mpumalanga KwaZulu Natal Gauteng Gauteng Pretoria Tzaneen Benoni Polokwane Pretoria Eastern Cape Nelspruit Limpopo Bushbuckridge Rustenburg

BAKING MILLING

The Baking business unit is the fourth largest bread brand nationally, and produces a range of baked goods under Sunbake and DOB brands. The Milling operation produces flour and a range of maize meal products at its flour mill - the largest single site flour mill in Southern Africa.

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INVESTOR PRESENTATION APPENDICES

SUGAR & MILLING: ANIMAL FEED

3 molasses based feed mills producing almost 300 000 tons per year 5 grain based feed mills producing almost 875 000 tons per year

Limpopo Province Windhoek Namibia Northern Cape Cape Town Western Cape Worcester Botswana North West Rustenburg Free State Lesotho Eastern Cape East London Port Elizabeth Bloemfontein George KwaZulu Natal Durban Pongola Pretoria Mpumalanga Pietermaritzburg

The Animal Feed business unit produces grain and molasses based feeds for a range of species including game, dairy, poultry, horse, pigs and ruminants, under the brands of Epol, Molatek, Driehoek, Equus, Lotmix and Winterveld.

18 Gauteng

Driehoek Voere produces high roughage animal feed under the Driehoek, Equus, Lotmix and Winterveld brands

Malelane Komati Nelspruit

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INVESTOR PRESENTATION APPENDICES

CUSTOMER OVERVIEW: LOGISTICS

Vector is contracted by the customer to deliver their full basket of products directly to the outlets Vector is contracted by the principal to deliver to all retailers, wholesalers and general trade

CUSTOMER SECONDARY DISTRIBUTION (CSD) PRINCIPAL SECONDARY DISTRIBUTION (PSD)

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INVESTOR PRESENTATION APPENDICES

Limpopo Province Polokwane Namibia Northern Cape Cape Town Western Cape Worcester Botswana North West Roodepoort Rustenburg Wolwehoek Free State Lesotho Eastern Cape East London Port Elizabeth Bloemfontein George Nelspruit Midrand KwaZulu Natal Newcastle Hammarsdale Durban Pretoria West Mpumalanga Dartprops Pietermaritzburg Windhoek

NETWORK OVERVIEW: LOGISTICS

Plant-based cold stores Distribution sites

National footprint extending into Namibia,

Botswana and Zambia

6 plant-based cold stores
14 distribution sites
Storage capacity for over 104 000 pallets
Over 4 000 employees
Over 5 800 customer drop points
Nearly 72 million cases delivered annually
Over 570 000 tons transported annually
350 distribution vehicles
Responsible for 100% of Pick n Pay’s frozen product

distribution

ISO 22000 (Food safety management system)

accreditation for all warehouses

ISO 14001 (Environmental management standards)

and OHSAS 18001 (Occupational health and safety standards) across Midrand, Thekwini, Peninsula and Roodepoort

20 Zambia