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PR PRESENTAT NTATION ION TO TO AN ANAL ALYS YSTS TS ON ON RE RESULT LTS S FOR OR TH THE YE YEAR AR TO TO 31 31 MA MARCH CH 20 2019 19 AGE GEND NDA 1. 1. WELCO COME ME AND IN INTROD RODUCTION UCTION PEARS RSON ON

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SLIDE 1

PR PRESENTAT NTATION ION TO TO AN ANAL ALYS YSTS TS ON ON RE RESULT LTS S FOR OR TH THE YE YEAR AR TO TO 31 31 MA MARCH CH 20 2019 19

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SLIDE 2

1. 1. WELCO COME ME AND IN INTROD RODUCTION UCTION PEARS RSON ON GOWERO RO

  • 2. TRAD

ADIN ING REVIEW IEW PEARS RSON ON GOWERO RO

  • 3. FIN

INANCIAL NCIALS MATTS TTS VALEL ELA

  • 4. DIS

ISCU CUSSIO ION/QUE /QUESTION STIONS ALL ALL

  • 5. REFRE

RESHMENTS SHMENTS ALL ALL

AGE GEND NDA

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SLIDE 3
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SLIDE 4

VOL OLUME ME BE BEVE VERAGE GE CA CATE TEGO GORY

  • Gr

Grew w by y 31 31% % LA LAGE GER R BEE EER

  • Declined

clined by 44 y 44% SOFT FT DRI RINKS KS

  • Overal

rall volume lume gr grew by 5% y 5%

  • Chi

hibuku uku Super per gr grew w by 24 y 24% SORG RGHUM HUM BEE EER

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SLIDE 5

NIN INE E MO MONTHS THS OF OF STABLE ABLE PR PRIC ICING ING

 Visible election related spending.  Agriculture and mining drove disposable incomes.  Liberal fiscal and monetary policies provided liquidity and encouraged consumption.  Foreign currency was accessed from formal banking channels and credit facilities.  The benefit derived from sourcing currency from formal channels ensured stable pricing and affordability.  Strong demand on the back of affordable prices.  Product supply depended on access to foreign currency which became severely constrained from October onwards.

TRADI DING NG EN ENVIR IRONM ONMENT ENT

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SLIDE 6

TRADI DING NG EN ENVIR IRONM ONMENT ENT

SECOND COND HALF F OF OF TH THE YE YEAR

 Tighter fiscal spending and the introduction of the 2% IMT tax.  Initial separation of RTGS and USD balances followed by formal devaluation of the RTGS balances.  Loss of consumer purchasing power by operation of the law, RTGS balances and wages not converted at the new exchange rate.  Increased foreign currency shortages and related cost escalations. Upward adjustment of RTGS prices in sympathy with exchange rates since February.

Cont…

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SLIDE 7

VOL OLUME ME PE PERFOR ORMAN MANCE CE SUMM MMAR ARY Y

Cat ategor

  • ry

Actual ual Volum ume 000hl hl % Cha hang nge e

  • n

n Prior ior Y ear ar

  • 1. BEVER

VERAGES GES (HLS S 000) 1.1 Clear Beer 2 014 31 1.2 Sorghum Beer 3 722 5 1.3 Sparkling Beverages 797 797 (44) 1.4 Alternative Beverages 112 112 (41) Total al Excluding uding Za Zambia ia 6 645 (1) 1.5 National Breweries 1 053

  • Total

7 741 11

  • 2. Mal

alt Tonn nnag age 30 590 18

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SLIDE 8

LA LAGE GER BE BEER VOL OLUME ME PE PERFOMAN OMANCE CE BY QU Y QUAR ARTER TER

505 505 523 523 576 576 456 456 323 323 358 358 451 451 416 416 505 505 535 535 571 571 403 403 $77 7 $82 2 $89 9 $98 8 $0 $0 $20 $20 $40 $40 $60 $60 $80 $80 $10 $100 $12 $120 100 100 200 200 300 300 400 400 500 500 600 600 700 700 Qua Quart rter 1 r 1 Qua Quart rter 2 r 2 Qua Quart rter 3 r 3 Qua Quart rter 4 r 4 F1 F13 F1 F18 F1 F19 F1 F19 9 Revenu evenue - $m e - $m F1 F13 3 Revenu evenue - $m e - $m

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SLIDE 9

TR TRAD ADING NG REVI VIEW W - LA LAGE GER BE BEER MI MIX

50 500 1 0 1 000 00 1 5 1 500 00 2 0 2 000 00 2 5 2 500 00

F19 F19 F18 F18

11% 11% 14% 14% 62% 62% 58% 58% 27% 27% 28% 28% Prem Premiu ium Main ain Stre Stream am Eco Econom nomy

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SLIDE 10

LA LAGE GER BE BEER

  • Firm demand allowing the division to leverage scale.
  • Both factories operated at capacity till December.
  • Sufficient barley intake to cover domestic volumes.
  • Growth in premium brands (Zambezi/Castle Lite) and one way

packs.

  • Intermittent production stoppages on account of imported raw

materials particularly between October to December.

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SLIDE 11

SOR ORGH GHUM UM BE BEER VOL OLUME PE PERFOR ORMANC MANCE E BY QU Y QUAR ARTER TER

893 893 933 933 930 930 804 804 846 846 1021 1021 1067 1067 787 787 $46 $46 $56 $56 $58 $58 $67 $67 $40 $40 $43 $43 $48 $48 $44 $44

$0 $0 $10 $10 $20 $20 $30 $30 $40 $40 $50 $50 $60 $60 $70 $70 $80 $80 200 200 400 400 600 600 800 800 100 1000 120 1200 Qua Quate ter1 Qua Quate ter2 Qua Quate ter3 Qua Quate ter4

F18 F18 F19 F19 F19 F19 Rev Revenue ue -

  • $m

$m F18 F18 Rev Revenue ue -

  • $m

$m

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SLIDE 12

TR TRAD ADING NG REVI VIEW W - SOR ORGH GHUM M BE BEER MI MIX

HLs ‘000

200 200 700 700 1 20 1 200 1 70 1 700

F19 19 F18 18 F19 - 19 - Zamb Zambia ia

16% 16% 29% 29% 49% 49% 84% 84% 71% 71% 51% 51% Chibuku Sup Chibuku Super er Standard Standard

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SLIDE 13

SOR ORGH GHUM UM BE BEER

  • Strong demand during the second and third quarter.
  • Satisfactory performance of the relaunched 1.5l Scud – affordable offering

complementing capacity constraint on Chibuku Super.

  • Supply bottle-necks on packaging materials (PET and HDPE Material) due

to foreign currency availability.

  • Chibuku Super capacity fully extended and plans are afoot to break ground
  • n a new brewery in Rusape.
  • Zambia - volume swing to Chibuku Super. Focus on strategies to

differentiate product from cluttered competitor offerings.

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SLIDE 14

SPARK RKLI LING NG BEV EVER ERAGES GES VOLUME E PE PERF RFORM ORMANCE ANCE BY Q Y QUAR ARTER TER

268 268 318 318 438 438 396 396 329 329 273 273 151 151 44 44

Quarter uarter 1 1 Quarter uarter 2 2 Quarter uarter 3 3 Quarter uarter 4 4 F18 18 F19 19

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SLIDE 15

TR TRAD ADING NG REVI VIEW- SPAR ARKL KLING ING BE BEVE VERAGE GES S MI MIX

HLs ‘000

200 400 600 800 1 000 1 200 1 400 1 600 F19 F18 55% 58% 45% 42% Convenience pack RGB

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SLIDE 16

SPAR ARKL KLING NG BE BEVE VERAGE GES

  • Experienced severe product shortages due to foreign

currency challenges in the second half resulting in 3 months shut down.

  • Performance not reflective of business potential.
  • A new trading framework introduced in May 2019 in

collaboration with TCCC to address foreign currency and affordability challenges.

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SLIDE 17

AF AFDI DIS – FULL LL YE YEAR AR VOL OLUME ME PE PERFOR ORMAN MANCE CE

Cat ategor

  • ry

Actual ual Volum ume 000li litr tres es % Cha hang nge e on n Prior ior Y ear ar

  • 1. BEVER

VERAGES GES (Lit itres es 000) 000) 1,1 Spirits 3 321 22 1,2 Wines 518 518 (2) 1,3 Ciders 3 856 41 Total al 7 695 28

  • Su

Suppor

  • rt

t from m part rtner er Di Dist stell ll in access ssing ng ra raw w materials rials

  • Pri

ricing ng dist storti rtions

  • ns impac

acting ting on sa sales

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SLIDE 18

ASSOCIATES

1.

  • 1. Schweppes

hweppes Zim imbab abwe we Li Limit ited ed

  • 12 months volume decreased by 5%.
  • Current volume performance impacted by affordability issues.
  • Improved performance of agri-processing businesses.
  • Pursuing exports into the region.

2. . Nam ampak pak Zim imbabwe babwe

  • Due to publish half year results to March 2019.
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SLIDE 19
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SLIDE 20

CO CONT NTEXT T OF OF TH THE FI FINA NANCIA NCIAL L RESULTS TS

  • To comply with SI33/19, we have not adjusted for currency changes in the

Income Statement.

  • 75% of revenue was recorded in the first nine months of the year.
  • The Company urges users to be cautious in interpreting the Income

Statement on account of non compliance to IAS21.

  • The Balance Sheet has been translated to RTGS$ to enable compliance with

IFRS’s into the future.

  • A generic adverse opinion on the financial statements for non compliance to

IAS21 issued by the Auditors.

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SLIDE 21

VOL OLUME UME & GR GROS OSS S SALES ES PE PERF RFORMANC ORMANCE E FO FOR R TH THE YEAR R ENDING DING 31 31 MA MARCH CH 2019 2019 - ZIM IMBAB BABWE WE VOL OLUM UME E (HL ‘000) GR GROS OSS S SALES ES (RTGS$m TGS$m) % % Ch Chang nge % % Ch Chang nge Lager ger Beer eer 2 01 2 014 31% 31% 404 404 47% 47% Sor

  • rghum

ghum be beer er 3 7 3 722 22 5% 5% 256 256 29% 29% Sof

  • ft

t Drinks inks 909 909 (4 (44) 4) 118 118 (37) (37)

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SLIDE 22

FIN INANCIAL ANCIAL HI

HIGH GHLI LIGHTS GHTS

RE REVEN ENUE UE

In Increa eased sed by by 26 26% to % to RTGS$ TGS$ 72 722, 2,4 mil 4 millio lion n (Tur

urnov nover er – RTGS S $841,5m ,5m)

OPE PERATING TING MARG RGIN IN %

Up Up from

  • m 20

20,7 ,75% 5% to

  • 28

28,3 ,34% 4%

EB EBIT IT

In Increa eased sed by by 68 68% to % to RTGS$ TGS$ 17 175, 5,5 mil 5 millio lion

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SLIDE 23

FINA NANC NCIAL IAL HI HIGH GHLI LIGHT GHTS S EBI BITD TDA

In Increase rease by 58 y 58% % to RT RTGS GS$ $ 212,4 2,4 mil illion lion ATTRIBU RIBUTAB TABLE LE IN INCOME OME

In Increased reased by by 58 58% t % to

  • RT

RTGS GS$ $ 14 140, 0,7 mil 7 millio lion DIV IVIDEN IDEND D PE PER R SHARE RE Nor

  • rma

mal l di divid idend end pa paid id - RT RTGS GS 9, 9,50 50 cents nts Spe pecial cial di dividend vidend pa paid id - RT RTGS GS 4, 4,50 50 cents nts

EA EARN RNING INGS S PE PER SH R SHARE RE

In Increased reased by by 55 55% t % to

  • RT

RTGS GS 11 11,1 ,19 cents nts

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SLIDE 24

STATEM TEMENT ENT OF PR PROFIT IT OR LO R LOSS S & COMPREHENSI PREHENSIVE VE IN INCOME OME FOR R THE E YE YEAR

Mar arch Mar arch 2019 2019 2018 2018 RTGS$’000 RTGS$’000 REVENUE 722 384 572 227 Operating Income 175 488 104 715 Net finance (expense) / income (4 753) 6 250 Share of associate profit 10 800 4 334

Non controlling interest

(2 573) 321 321

PROFIT OFIT BEFOR ORE E TAX

178 962 115 299 Taxation (38 38 301 (26 791)

TOTAL AL CO COMPRE PREHE HENSIVE SIVE IN INCO COME ME FOR R THE E YEAR

140 661 88 829

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SLIDE 25

Mar arch ch Mar arch ch % C % Chang hange e RTGS GS Cents ts 2019 19 2018 18 Pr Prio ior r Y ear ar Normal rmal EP EPS 11,19 ,19 7,2 ,22 55 Ful ully ly Di Diluted uted E EPS PS 11,05 ,05 7,2 ,20 53 Normal rmal div ivide idend nd per sh shar are 9,50 ,50 7,20 ,20 32 Spe pecial cial di dividend idend pe per sh shar are 4,50 ,50

  • 100

Total al div ivide idend nd declar clared ed – RTGS GS$ $ mil illion lion 177,1 7,1 89,1 ,1 99

EA EARN RNINGS INGS PE PER R SH SHAR ARE

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SLIDE 26

SE SEGM GMENT ENT EA EARN RNINGS INGS

Ma March ch 20 2019 19 Ma March ch 20 2018 18

EBIT EBIT T Cont ntri. Gross ss Sales ales Cont ntri. EBIT EBIT T Cont ntri. Gross ss Sale ales s Cont ntri. . RTGS$ GS$’000 % % RTGS$ GS$’000 % %

Lager Beer 94 943 54 48 40 177 38 41 Sparkling Beverages (690) 0)

  • 14

20 414 19 28 Sorghum Beer 70 456 40 35 36 477 35 31 Wines and Spirits 9 50 507 5 3

  • Tot
  • tal

al Reporta portable ble Segments ments 174 216 99 100 97 068 93 100 All Other Segments 1 27 272 1

  • 7 647

7

  • Tot
  • tal

al Opera rati ting ng In Incom come 175 488 100 100 104 715 100 100

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SLIDE 27

STATE TEME MENT NT OF OF FINA NANC NCIAL IAL PO POSITION TION MA MARCH CH

2019 2019 2018 2018 RTGS$’000 RTGS$’000 ASSET SETS Non-curr curren ent t Ass ssets ts Property, plant and equipment 787 037 366 857 Investment in associates 43 43 768 768 47 439 Intangible assets – Trademarks & Goodwill 61 849 17 514 Investments and loans 8 58 589 8 482 Tot

  • tal

al Non-curr current ent Ass ssets ts 901 243 440 292 Cu Current ent Ass ssets ts Inventories 128 863 66 007 Trade and other receivables 46 46 940 940 33 727 Current tax asset 8 774 774 6 148 Cash and cash equivalents 264 264 091 091 291 226 Tot

  • tal

al Cu Current ent Ass ssets ts 448 448 668 668 397 108 Tot

  • tal

al Ass ssets ts 1 349 911 837 400

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SLIDE 28

STATE TEME MENT NT OF OF FINA NANC NCIAL IAL PO POSITION TION MA MARCH CH cont

nt….

2019 2019

2018 18

RTGS$’000

US$’000 EQU QUITY TY AND D LI LIABILITIES BILITIES Capit pital al and nd Rese serves ves Share capital 12 12 526 526 12 361 Share premium 83 83 170 170 44 976 Share options reserve 3 921 921 4 678 Change in functional currency reserve 297 297 748 748

  • Retained earnings

373 373 976 976 434 764 Equity attributed to equity of the parent 771 771 341 341 496 779 Non-controlling interest 31 31 656 656 5 427 Total tal Shar arehold eholders' rs' Equity uity 802 802 997 997 502 206 Non-current Liabilities Long term borrowings 105 105 443 443 42 746 Deferred tax liabilities 57 57 761 761 55 639 Total tal Non-cu curr rrent Liabil bilitie ities 163 163 204 204 98 385 Current Liabilities Short term borrowings 48 48 445 445 12 400 Trade and other payables 284 284 018 018 158 841 Dividend payable 44 44 407 407 59 443 Current tax liability 6 840 840 6 125 Total tal Cur urrent t Liabilit bilitie ies 383 383 710 710 236 809 Total tal Equit uity and nd Li Liabil abilit itie ies 1 349 9 911 837 400

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SLIDE 29

CASH FLOW

2019 2018 RTGS$’000 RTGS$’000 Cash flow from operating activities 211 988 206 298 Net Funding 110 202 236 080

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SLIDE 30

SHARE CAPITAL MOVEMENTS Sh Shar ares es In In Issu Issue e

Sha hares es in in is issu sue e as as at at 31 Mar arch ch 2018 18 1 257 7 365 5 601 Sha hare e Optio ions ns exer ercise cised 11 055 5 454 Sha hare e al allot lotment ment - Trans ansac actions ions 24 183 3 065 Sha hare e c cancel ancella lati tions

  • ns

(1 (18 8 799 9 559) 9) Sha hares es in in is issu sue e as as 31 Mar arch ch 2019 19 1 1 273 3 795 5 989 Sha hares es he held d in in treasur asury 5 632 2 579

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SLIDE 31

Than Thank Y k Y

  • u
  • u