Tiger Brands Limited Interim Results Investor Presentation - - PowerPoint PPT Presentation
Tiger Brands Limited Interim Results Investor Presentation 2010 Adding value to life 1 Group results and capital distribution for half year ended 31 March 2010 AGENDA Corporate S trategy A Context for Performance S
Group results and capital distribution for half year ended 31 March 2010
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OrganicGrowth
longtermvaluecreation
success
growth vector growthvector
willcontinue
International Expansion Domestic Acquisitions
anenablertogrowth
termequity
longtermperformance
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Consumerspendingpowerremains constrained
..
p p innegativeterritoryandexpenditureon nondurablesfailstorecover
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Source:SAReserveBank/NedbankEconomicguide/Econometrix
l l d li h Ti h d li d l i j it f t i
Total South Africa - Total Category - Volume Growth/ Decline Trends
Category Volume Growth
Source: Nielsen
Mat LY vs Mat TY 6mm Curr vs 6mm YA 3mm Curr vs YA
Source: Nielsen
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ActionsTakentoSaveonHHExpenditure
%
75 68 68 67 65 55 53 48 47
60 70 80
SABehaviour GlobalBehaviour
48 47 45 30 28
30 40 50
15 46 54 55 50 43 34 37 38 34 30 24 18 13
10 20
ways Ent. thes lec ands Exp ays ch. ems ten tion rands king C utdownonTakeAway utDownonOutofHomeE SpendL essonnewcloth SaveonG as/ Elec tchtocheapergrocerybran C utDownTelExp C utDownHoliday Delayupg radingTech DelayreplacementHHitem Usemycarlessoften C utoutannualvacatio wnorBuyC heaperAlcBra C utDownS moking S Ni l C ut Switc De C utDow Source:Nielsen
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764.2 800 900 627.3 668.9 600 700 400 500
200 300
100
F 2009 F 2010 F 2010 (excl BEE) F2009 F2010 F2010(exclBEE) F2009 F2010 F2010(exclBEE)
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250 300 200 250 150
50 100 50
F 2009 F 2010 F2009 F2010 F2009 F2010
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Rm 2010 2009 % Change
Continuingoperations g p
Turnover 10,187 11,154 (9%) FM CG 10,187 10,418 (2%) Oceana
Oceana 736 OperatingIncome 1,594 1,602
1,594 1,523 5% Oceana 79 Oceana
Incomefrominvestments 11 13 (18%) Netfinancingcosts (48) (164) 71% I f A i 94 58 63% IncomefromAssociates 94 58 63% Profitbeforetaxationandabnormalitems 1,651 1,509 9% Incometaxexpense (463) (472) 2% Profitaftertaxationbeforeabnormalitems 1,188 1,037 15%
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% Rm 2010 2009 Change
Continuingoperations
P fi f i b f b l i 1 188 1 037 15% Profitaftertaxationbeforeabnormalitems 1,188 1,037 15% Abnormalitems (187) (51) Tax onabnormalitems 35 2 Profit after taxation 1 036 988 5% Profitaftertaxation 1,036 988 5% DiscontinuedOperations– SeaHarvest
Netprofitforthe period 1,036 1,031 1% Attributable to: Attributableto: Ordinaryshareholders 1,046 990 6% Non ControllingInterest (10) 41 HEPS(cents) excludingonceoffempowermenttransaction costs 764.2 627.3 22% HEPS(cents) 668.9 627.3 7% HEPS(cents) 668.9 627.3 7% EPS(cents) 662.2 631.2 5%
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Rm M arch 2010 M arch 2009 % Change Rm 2010 2009 Change
FM CG 10,187 10,418 (2%) DomesticFood 8,357 8,481 (1%) Grains 4 185 4 682 (11%) Grains 4,185 4,682 (11%)
M illingandbaking
2,905 3,158 (8%)
Othergrains
1,280 1,524 (16%) Groceries 1,751 1,419 23% Groceries 1,751 1,419 23% Snacks&Treats 920 877 5% Beverages 642 623 3% ValueAddedM eatProducts 721 741 (3%) ( ) OutofHome 138 139 (1%) HPC 972 1,031 (6%)
PersonalCare
300 345 (13%)
Baby Care
301 286 5%
HomeCare
371 400 (7%) Exports&International 935 969 (4%) Other– intersegment (76) (63) (21%) Fishing Oceana(2009:toM arch)
TotalContinuingOperations 10,187 11,154 (9%)
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OperatingIncome % %Operating M argins Rm 2010 2009 Change 2010 2009 FM CG 1,594 1,523 5% 15.7% 14.6% Domestic Food 1 400 1 131 24% 16 7% 13 3% DomesticFood 1,400 1,131 24% 16.7% 13.3% Grains 782 601 30% 18.7% 12.8% M illingandBaking 582 440 32% 20.0% 13.9% Othergrains 200 161 24% 15.6% 10.6% G i 275 250 10% 15 7% 17 6% Groceries 275 250 10% 15.7% 17.6% Snacks&Treats 155 142 9% 16.9% 16.2% Beverages 80 66 20% 12.5% 10.7% ValueAddedM eatProducts 77 56 38% 10.7% 7.5% OutofHome 31 16 92% 22.3% 11.5% HPC 244 260 (6%) 25.0% 25.2% Personal 88 105 (16%) 29.2% 30.3% Babycare 87 79 10% 28.9% 27.7% abyca e 8 9 0% 8 9% % Homecare 69 76 (10%) 18.6% 19.1% Exports&International 25 156 (84%) 2.6% 16.1% Other (73) (24) Fishing– Oceana
10.7% TOTAL CONTINUINGOPERATIONS 1,594 1,602
14.4%
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Rm 2010 2009
Continuing operations
Empowerment transaction costs – BEE Phase II (185)
BEEPhaseII (185) Lossonsaleofproperty,plant&equipment,andimpairmentchargesonintangibles
Lossonsaleofinvestments
f (33) CostsrelatingtotheunsuccessfulattempttoacquireAVILtd
Recognitionofpensionfundsurpluses
Other (2) (10) Total (187) (51)
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Rm 2010 2009 % Change
Group
Headlineearnings 1,057 984 7% g , BEEPhaseIIempowermenttransactioncosts aftertax 151
1,208 984 23% HEPS(cents) excludingonceoffempowermenttransaction costs 764.2 627.3 22% Weightedaverageshares(000’s) 158 014 156863 1%
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Rm M arch 2010 M arch 2009
Assets Assets FixedassetsandIntangibles 4,570 3,698 Investments 1,585 1,711 CurrentAssets 6,001 6,280 Cash 166 139 Cash 166 139 Assetsclassifiedasheldforsale
12,322 12,727 EquityandLiabilities O di Sh h ld E it 7 553 5 925 OrdinaryShareholdersEquity 7,553 5,925 NoncontrollingInterests 305 458 LongtermBorrowings 409 525 ShorttermBorrowings 646 1,718 b l NoncurrentLiabilities 447 470 CurrentLiabilities 2,962 3,397 Liabilitiesclassifiedasheldforsale
12,322 12,727
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Rm 2010 2009
Continuing operations
NetDebt 889 2,104 NetDebt/ Equity% 11% 33% WorkingcapitalperR1turnover(cents) 22.2 19.4 Netinterestcover(times) 33.2 9.9 Operating income margin % (FM CG) 15 7% 14 6% Operatingincomemargin %(FM CG) 15.7% 14.6% Effectivetaxratebeforeabnormalitems 29.7% 32.3%
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M h M h Rm M arch 2010 M arch 2009
Cash Operating Profit 1 825 1 842 CashOperating Profit 1,825 1,842 Workingcapitalrequirements (212) (513) Cashgeneratedfromoperations 1,613 1,329 Net dividends received/ (net financing costs) 31 (140) Netdividendsreceived/ (netfinancingcosts) 31 (140) Taxationpaid (511) (600) Cashavailablefromoperations 1,133 589 Capital distributions and dividends (743) (877) Capital distributionsanddividends (743) (877) Netcashinflow/ (outflow)fromoperatingactivities 390 (288) Netcashoutflowfrominvestingactivities (923) (343) Net cash (outflow)/ inflow from financing activities (6) 79 Netcash(outflow)/ inflow fromfinancingactivities (6) 79 Netdecreaseincashandcashequivalent (539) (552) Cashandcashequivalents atbeginningoftheyear 187 (725) Cashandcashequivalents atendoftheperiod (352) (1,277)
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Rm 2010 2009
Continuing operations Capitalexpenditure(Rmillion) 463 252 130
Replacement
184 130
Expansion
279 123 Capitalcommitments(Rmillion) 818 497
contracted
431 139
approved
387 358 pp
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PerformanceDrivers PerformanceHighlights
11%
18.7%
+30%
KeyChallenges
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d li l t
1900 2100
SAFEXWhiteM izeprice
Bumpercrop– 12ml. Rand strengthen R10 6
leadingto:
1700 1900
R
Rand strengthenR10,6 toR7,8 ElNinouncertainty CBOTincreaseby$25
andlowermarketprice realisations
1300 1500
Rand/ ton
Bumper Crop R13,1ml
realisations
900. 1100
J an09–J ul09 Aug09–Dec09 J an10–Apr10 g p
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100%SmoothWholegrainProduct:
Co ta s eat ge , a atu a sou ce o VitaminE
t l f
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(Source: AC Nielsen M arch 2010) (Source:ACNielsen,M arch2010)
good gains in the short
termthroughtoM arch(Source:ACNielsen,M arch2010)
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Jungle Oatso Easy Digestive
(SourceACNielsen,Feb2010)
I t t N 2 b d ithi R d t E t id y g
segment(SourceACNielsen,Feb2010)
Jungle Oats Cinnamon
acceleratefuturegrowth
Morvite Pineapple Jungle Oats Jungle Oats Instant
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Volumesunderpressure
+23%
PerformanceInhibitors
looking for
+23%
+10%
value
PerformanceDrivers
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Intheshorttermsomemarketsharesareunderpressure
Volume Share (% ) 12mm 6mm 3mm 2009 2010 2009 2010 2010 2009 2010 2009 2010 2010 Baked Beans 66.3% 67.9% 69.9% 65.7% 66.6% T S 74 0% 74 6% 74 4% 74 7% 74 5% Tomato Sauce 74.0% 74.6% 74.4% 74.7% 74.5% Jam 60.9% 63.1% 62.8% 64.3% 64.7% Canned Veg 64.3% 67.6% 65.4% 67.5% 66.6% Pasta 40.5% 45.0% 46.6% 43.6% 42.8%
Source: Nielsen Feb 2010 Source: Nielsen Feb 2010
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witheffect1Oct2009
iti l f d i h f
BRAND 12M M PREV 12M M CURR M AT% GROWTH 6M M YA 6M M CURR 6M M GROWTH 3M M YA 3M M CURR 3M M GROWTH CROSSE& BLACKWELL 53 2% 54 9% 5 6% 52 2% 53 3% 2 1% 51 6% 53 0% 3 9%
Source: Nielsen Feb 2010
BLACKWELL 53.2% 54.9% 5.6% 52.2% 53.3% 2.1% 51.6% 53.0% 3.9%
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New BITS line
Mama KOO
M amaKOOadvertorial
Mama KOO 35
PerformanceHighlights
M arketchallenges
f l i h l l h l d i ifi
Performanceboosters:
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J ungle J ungle
nowin BiteSize Newdesign– enhanced flavour Beacon Baked Bars BakedBars Capitalise
events
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Oros Motherbrand TV campaign Roses Outdoor Energade Cricket Stadia Advertising
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OrosIceTea EnergadeChamps
Super 7 Smoothie new variants
Super7SmoothieTaxirankactivation 41
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+92%
d t t t l i t d l
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KeyChallenges
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Challenges
PersonalCareM arket
(WhereTigerCompetes)
12mm 6mm 3mm Feb
(M onth)
VOLUM E
3% 7% 7% 9%
VALUE +9% +3% +1%
1%
Source: AC Nielsen Feb10
IntegrationofDesignerGroupandPersonalCaresuccessfullycompleted
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’
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HomeCaremarket 12mma 6mma 3mma Volumegrowth
6.0% 7.6% 8.1%
Pestmarket 12mma 6mma 3mma Volumegrowth
12.7% 15.7% 18.9%
improvement
Source:NielsenFeb2010
improvement
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JEYES goes ATL
DOOM gets smart with Buy-Smart Support for PEACEFUL SLEEP
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J arred Baby Food 12mma PY 12mma CY
NetSales
+5%
EBIT
+10% J arredBabyFood 12mma PY 12mmaCY
Purityvalueshare 98.2% 98.4% InfantCerealmarket 12mma PY 12mmaCY Purity value share 38 4% 41 0%
Longtermmarketsharegrowth M arketvolumesunderpressure
Purityvalueshare 38.4% 41.0% BabyToiletriesmarket 12mma PY 12mmaCY EAbyPurityvalueshare 20.7% 20.0%
M arginexpansion– GrowthofBabyM edicinals
Source:NielsenFeb2010
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i l l k d ti t b d d
newlyintegrateddivision
alliances
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Growthdrivers
consumeractivation
distributors
Export warehouse
distributors Challenges
andastrongRandimpactinggrowth
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Zambia:Fatti’sandM oni’sinstorepromotion Doomactivation:M ozambique EnergadeT20CricketSponsorship,Harare Community sampling: Zimbabwe Doom outdoor advertising: Zimbabwe Fatti’s and M oni’s: Zambia Communitysampling:Zimbabwe Doomoutdooradvertising:Zimbabwe Fatti sandM oni s:Zambia
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Localcurrency: Sales+18%onPY
EBIT+41%onPY
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Source:NielsenM ar201012mm
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2010
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