WELCOME AND INTRODUCTION Pearson Gowero 1. FINANCIAL RESULTS - - PowerPoint PPT Presentation

1.

WELCOME AND INTRODUCTION

2.

FINANCIAL RESULTS

3.

BUSINESS REVIEW

4.

DISCUSSION/ QUESTIONS

5.

REFRESHMENTS Pearson Gowero Matts Valela Pearson Gowero All All

• Completed all major capital programmes - $83m.
• Returnable Glass injection to the new calabash bottle.
• Introduced non-returnable glass across the entire beer

portfolio.

• Successfully launched longer shelf-life Chibuku in PET.
• Localised Maheu production.
• Achieved an improved market supply position across all

beverages.

• Achieved significant improvement in productivity and cost

management .

• Negative impact of excise increase on lager beer.

• 1. FINANCIAL HIGHLIGHTS
• 2. FINANCIAL STATEMENTS

• Grew by 4%

LAGER

• Grew by 9%

SBS

• Declined by 8%

CHIBUKU

• Grew by 42%

MAHEU

• Up 8% to $352 million

LAGER

• Up 14% to $231 million

SBS

• Up 15% to $118 million

CHIBUKU

• Up 50% to $11 million

MAHEU

EBIDTA Up 36% to $161,5m ATTRIBUTABLE INCOME Up 39% to $102,5m Revenue (Gross Sales $740,2m) Up 14% to $631,3m EBIT Up 37% to $135,0m Operating Margin % Up from 20,48% to 24,73% EPS Up 36% to 8,49c Final Dividend Total Dividend ($41,3m) Up 78% to 2,23c Up 63% to 3,40c

281 408 555 631 100 200 300 400 500 600 700 F10 F11 F12 F13 REVENUE - $m

39 68 98 135 20 40 60 80 100 120 140 160 F10 F11 F12 F13 EBIT - $m

15.3 19.53 20.48 24.73 5 10 15 20 25 30 F10 F11 F12 F13

OPERATING MARGIN %

EBITDA - $m

49 82 119 162 20 40 60 80 100 120 140 160 180

F10 F11 F12 F13

Category Actual Volume 000hl % Growth on Prior Year

• 1. BEVERAGES (HLS 000)

1.1 Clear Beer 1.2 Sorghum Beer 1.3 Sparkling Beverages 1.4 Maheu 2 060 3 080 1 615 132 4 (8) 9 42 Total Excluding Associates 6 887

• 2. Plastic Tonnages

9 451 27

• 3. Malt Tonnages

35 834 3

MARCH 2013 US$000’s MARCH 2012 US$000’s REVENUE 631 276 554 767 Operating Income 134 989 98 288 Net Finance expense (574) (2 650) Gain on Acquisition of Associates

• 1 930

Associates – Share of Profit 2 458 1 725 PROFIT BEFORE TAX 136 873 99 293 Taxation (32 750) (24 087) TOTAL COMPREHENSIVE INCOME 104 123 75 206

2013 US$000’s 2012 US$000’s Profit for the year attributable to: Owners of the parent 102 472 73 747 Non-controlling interests

1 651 1 459

104 123 75 206

MARCH 2013 MARCH 2012 From Operations Normal EPS – Cents 8,49 6,22 Fully Diluted EPS - Cents 8,42 6,03 Dividend per share - Cents 3,40 2,08

ASSETS

2013 US$000’s 2012 US$000’s

Non-current assets Property, plant and equipment

319 241 268 470

Investments, loans and trademarks

30 598 28 133

TOTAL NON-CURRENT ASSETS

349 839 296 603

CURRENT ASSETS Inventories

93 012 77 620

Trade and other receivables

43 999 37 345

Cash and cash equivalents

75 088 55 578

TOTAL CURRENT ASSETS

212 099 170 543

TOTAL ASSETS

561 938 467 146

EQUITY AND LIABILITIES 2013 US$000’s 2012 US$000’s Share Capital 12 230 11 927 Share Premium 24 049 19 553 Reserves 276 921 217 559 Dividend Payable 27 270 14 901 Non-controlling Interests 6 780 5 129 Shareholder’s equity 347 250 269 069 Long- term borrowings 60 000 60 000 Deferred taxation 30 740 27 247 90 740 87 247 CURRENT LIABILITIES Short-term borrowings 18 605 21 381 Interest free liabilities 105 343 89 449 TOTAL CURRENT LIABILITIES 123 948 110 830 TOTAL EQUITY AND LIABILITES 561 938 467 146

2013 US$000’s 2012 US$000’s Cash flow from

• perations

165 112 121 391 Net cash invested (83 336) (77 137) Net funding (3 517) (26 878)

Shares in Issue as at 31 March 2012 1 192 105 715 Share Options Exercised 35 257 100 Share buyback (4 480 980) Shares in Issue at 31 March 2013 1 222 881 835

Target to improve Total Shareholder Return as measured by:

• Revenue Growth
• Margins
• Cash

0% 14% 37% 63% 0% 10% 20% 30% 40% 50% 60% 70% Volume Revenue Ebit Dividend

• 1. Volume Review by Beverage category
• 2. Beverage Mix
• 3. Supply Chain/Enterprise Development
• 4. Associates
• 5. Capacity
• 6. The Future

HLS 000

538 1 148 1 608 1 981 2 060 500 1000 1500 2000 2500 F09 F10 F11 F12 F13

HLS 000 308 770 1 175 1 480 1 615 500 1000 1500 2000 F09 F10 F11 F12 F13

HLS 000

1 673 3 114 2 908 3 354 3 080 500 1000 1500 2000 2500 3000 3500 4000 F09 F10 F11 F12 F13

HLS 000

89 93 132

• 20

40 60 80 100 120 140 F11 F12 F13

1 815 4 550 5 796 7 196 9 451 2000 4000 6000 8000 10000 F09 F10 F11 F12 F13

Mat North 2% Mat South 2% Mash Central 5% Manicaland 5% Mash East 7% Masvingo 8% Mash West 9% Midlands 10% Bulawayo 10% Harare 42%

Mat North 2% Mat South 3% Mash East 4% Mash Central 4% Mash West 9% Masvingo 9% Midlands 11% Bulawayo 12% Harare 46%

Bulawayo 3% Mat North 5% Manicaland 5% Mash Central 7% Mash East 9% Masvingo 15% Midlands 16% Mash West 17% Harare 21% Mat South 2%

• Volume performance reflects slowing GDP growth rate.
• Soft drinks growth driven by increased investment in PET

and glass.

• Sorghum volume affected by input cost induced pricing

and poor agricultural performance in 2012.

• The Midlands and Mashonaland East showing faster

growth than other provinces – mining generating incomes.

• Localisation of Maheu production drove volume

performance.

• Clear beer affected by excise and retail price increase

from December.

30% 46% 24%

F13

Lager Sorghum SB's 29% 49% 22%

F12

Lager Sorghum SB's

37% 63%

F12

Lager Sorghum 40% 60%

F13

Lager Sorghum

500 1000 1500 2000 F12 F13

Premium Main Stream 84.4% 15.6% 81.6% 18.4%

200 400 600 800 1000 1200 1400 1600 1800 F12 F13

Convenience pack RGB

28.4% 68.9% 31.1% 71.6%

• Revenue and margin driven by premiumisation in lager beer

and soft drinks and price correction in Chibuku

• Maintained balance between mainstream and premium

category to avoid cannibalisation.

• Maintained focus on economy segment with Eagle and

Chibuku.

• Focus on local sourcing – Price/Quality
• Barley – Improved yields
• Maize – maximise local purchases by brewery
• Other Inputs – stable supply

CHALLENGES

• Utilities – water and electricity

SZL (49%)

• Profitability trending up.
• Minute maid production

successfully localised and product acceptability encouraging.

• Bottom end of the non-

juice products - competitive. AFDIS (30%)

• Operating to plan.
• Product availability and

innovation improving.

• Recapitalisation

programme underway.

BEVERAGE Lager Beer Sparkling Beverages Sorghum Beer INSTALLED CAPACITY 2,4m hls 2,4m hls 5m hls Capex will be in containers, Chibuku Super and targeted at productivity improvement.

We remain a multi beverage business dominating the beer, sparkling beverages and sorghum beer categories. We extend into adjacent territories directly (Maheu) or through strategic investments (Schweppes - Still and Afdis - Spirits)

1. Consumer disposable Incomes remain under pressure. Volume performance will reflect this, and growth although a focus area, will be a challenge in the first half

• f the year.

2. Keeping our beverages affordable. 3. Meeting the aspirations of our premium consumers. 4. Bringing new offerings to the market via a carefully managed innovation pipeline. 5. Nurturing strong core brands. 6. Targeted and improved market execution. 7. Regional PCC Benchmarks highlight opportunity on beer, soft drinks and Non Alcoholic Beverages (NABs). 8. Opportunity in process and cost management. 9. Ready to take advantage of any positive economic rebound. 10. Earnings growth to be ahead of GDP and inflation driven by - mix

• productivity

THANK YOU