WELCOME AND INTRODUCTION PEARSON GOWERO 1. SIX MONTHS VOLUME & - PowerPoint PPT Presentation

WELCOME AND INTRODUCTION PEARSON GOWERO 1. SIX MONTHS VOLUME & FINANCIALS MATTS VALELA 2. BUSINESS REVIEW SIX MONTHS TO PEARSON GOWERO 3. SEPTEMBER 2012 DISCUSSION/ QUESTIONS 4. ALL REFRESHMENTS 5. ALL

1. Good growth in lager beer and soft drinks volume 2. Installation and commissioning of Lager Beer packaging line in Harare 3. Localisation of Castle Lite brewing and packaging 4. Additional Lager Beer storage capacity installed in Harare and Bulawayo. 5. Addressed issue of low margins for Chibuku

1. FINANCIAL HIGHLIGHTS 2. FINANCIAL STATEMENTS

LAGER • Grew by 9% SBS • Grew by 11% CHIBUKU • Declined by 8%

• Grew by 10% LAGER • Grew by 13% SORGHUM • Grew by 23% SPARKLING

REVENUE Increased by 18% to $299,6 million (Turnover - $348,8m) EBIT Up by 41% to $57,1 million OPERATING MARGIN % Up from 18,48% to 21,92%

EBITDA Up by 39% to $70,4 million ATTRIBUTABLE INCOME Increased by 42% to $42,0 million EARNINGS PER SHARE Increased by 41% to 3,50 cents DIVIDEND PER SHARE Interim dividend paid per share – 1,17 cents Up 41% on prior year

Category Actual Volume % Growth on 000hl Prior Year 1. BEVERAGES (HLS 000) 1.1 Clear Beer 1 027 9 1.2 Sorghum Beer 1 639 (8) 1.3 Sparkling Beverages 720 11 1.4 Maheu 50 2 Total Excluding Associates 3 436 0 2. Plastic Tonnages 4 292 22 3. Malt Tonnages 18 311 10

SEPT 2012 SEPT 2011 US$000’s US$000’s REVENUE 299 612 254 816 Operating income 57 058 40 372 Net finance expense (566) (757) Associates – Share of Profit / (loss) 657 574 PROFIT BEFORE TAX 57 149 40 189 Taxation (14 508) (9 904) TOTAL COMPREHENSIVE INCOME 42 641 30 285

SEPT SEPT 2012 2011 From Operations Normal EPS – Cents 3,50 2,49 Fully Diluted EPS - 3,42 2,41 Cents Dividend per share - 1,17 0,83 Cents

2012 2011 ASSETS US$000’s US$000’s Non-current assets Property, plant and equipment 288 854 248 432 Investments, loans and trademarks 28 850 23 239 TOTAL NON-CURRENT ASSETS 317 704 271 671 CURRENT ASSETS Inventories 83 502 63 768 Trade and other receivables 46 390 44 126 Cash and cash equivalents 58 876 13 098 TOTAL CURRENT ASSETS 188 768 120 992 TOTAL ASSETS 506 472 392 663

2012 2011 EQUITY AND LIABILITIES US$000’s US$000’s Share Capital 12 024 11 849 Share Premium 20 331 17 795 Reserves 4 603 2 960 Dividend Payable 14 845 9 835 Non-controlling Interests 5 589 4 463 Shareholder’s equity 299 510 230 782 Long- term borrowings 61 137 - Deferred taxation 27 208 22 911 88 345 22 911 CURRENT LIABILITIES Short-term borrowings 18 627 39 977 Interest free liabilities 99 990 98 993 TOTAL CURRENT LIABILITIES 118 617 138 970 TOTAL EQUITY AND LIABILITES 506 472 392 663

2012 2011 US$000’s US$000’s Profit for the half year from operations attributable to: Owners of the parent 42 018 29 492 Non-controlling 623 793 interests 42 641 30 295

2012 2011 US$000’s US$000’s Cash flow from 54 597 40 157 operations Net cash invested (36 432) (36 179) Net funding (20 888) (26 878)

Shares in Issue as at 31 March 1 192 105 715 2012 Share Options Exercised 10 328 100 Shares in Issue at 30 September 1 202 433 815 2012

SEPTEMBER 2012 2011 Operating income to net 21,92% 18,48% producer’s revenue

Review of volume performance by product 1. category Drive for value 2. 3. Highlights for the second half 4. Supply Chain update

HLS 000 1200 1027 945 1000 800 724 600 491 400 274 200 0 F09 F10 F11 F12 F13

HLS 000 800 720 700 648 600 488 500 400 299 300 157 200 100 0 F09 F10 F11 F12 F13

HLS 000 2 000 1 784 1 800 1 639 1 616 1 549 1 600 1 400 1 200 1 000 881 800 600 400 200 0 F09 F10 F11 F12 F13

5 000 4 500 4 292 4 000 3 526 3 500 2 834 3 000 2 500 2 123 2 000 1 500 930 1 000 500 0 F09 F10 F11 F12 F13

F12 F13 19.00 28.00 21.00 30.00 53.00 49.00 Lager Sorghum SBs Lager Sorghum SBs

F13 F12 39% 35% 61% 65% Lager Beer Lager Beer Sorghum Beer Sorghum Beer

1200 19% 13% 1000 800 Premium 600 Main Stream 77% 82% Economy 400 200 4% 5% 0 F12 F13

800 700 32% 600 23% 500 Convenience pack 400 RGB 68% 300 77% 200 100 0 F12 F13

1. Commissioning of PET Line in Bulawayo – Re-opening of Bon Accord Factory 2. Introduction of Calabash bottle ahead of festive season 3. Introduction of NRB’s for mainstream portfolio 4. Launching of Chibuku Super in PET – longer shelf-life product

375ml(Calabash) 340ml(NRB – twist off) 375ml(current)

1. Barley • Intake projected to exceed 35 000 tonnes • Significant improvement in yields achieved this year 2. Maize • Requirements to year end in place and sourced locally 3. Sorghum Stocks adequate ; contracting for next season in progress

4. Bottles • Zimglass is back in production and the bulk of glass purchases to be localised 5. Carbon Dioxide • Adequate to peak 6. Utilities • Electricity and water remain a challenge though electricity has shown some improvement lately.

AFDIS (30%) SZL (49%) • Hotfill line installed. • Improving in line with • New juice products strategic plan. launched. • Profitability in the first • Management renewal half affected by juice in progress. problems. • Expected to be profitable but below our forecast.

• PACKAGING CAPACITY INSTALLED PROJECTED CAPACITY UTILISATION Lager Beer 2,4m hls 88%* Sparkling Beverages 2,4m hls 75% Sorghum Beer 5m hls 68% • Beer capacity utilisation is above the 85% target indicating the need for further investment

1. Revenues expected to continue growing strongly but GPA processes could have an impact 2. EBIT Growth : > 25% $82m – additional containers 3. Capex :

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