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

1.

WELCOME AND INTRODUCTION

2.

SIX MONTHS VOLUME & FINANCIALS

3.

BUSINESS REVIEW SIX MONTHS TO SEPTEMBER 2012

4.

DISCUSSION/ QUESTIONS

5.

REFRESHMENTS PEARSON GOWERO MATTS VALELA PEARSON GOWERO ALL ALL

• 3. Localisation of Castle Lite brewing and packaging
• 2. Installation and commissioning of Lager Beer packaging line in

Harare

• 4. Additional Lager Beer storage capacity installed in Harare and

Bulawayo.

• 5. Addressed issue of low margins for Chibuku
• 1. Good growth in lager beer and soft drinks volume

• 1. FINANCIAL HIGHLIGHTS
• 2. FINANCIAL STATEMENTS

• Grew by 9%

LAGER

• Grew by 11%

SBS

• Declined by 8%

CHIBUKU

• Grew by 10%

LAGER

• Grew by 13%

SORGHUM

• Grew by 23%

SPARKLING

REVENUE Increased by 18% to $299,6 million (Turnover - $348,8m)

OPERATING MARGIN % Up from 18,48% to 21,92% EBIT

Up by 41% to $57,1 million

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 000hl % Growth on Prior Year

• 1. BEVERAGES (HLS 000)

1.1 Clear Beer 1.2 Sorghum Beer 1.3 Sparkling Beverages 1.4 Maheu 1 027 1 639 720 50 9 (8) 11 2 Total Excluding Associates 3 436

• 2. Plastic Tonnages

4 292 22

• 3. Malt Tonnages

18 311 10

SEPT 2012 US$000’s SEPT 2011 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 2012 SEPT 2011

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

ASSETS 2012 US$000’s 2011 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

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

2012 US$000’s 2011 US$000’s Cash flow from

• perations

54 597 40 157 Net cash invested (36 432) (36 179) Net funding (20 888) (26 878)

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

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

1.

Review of volume performance by product category

2.

Drive for value

• 3. Highlights for the second half
• 4. Supply Chain update

HLS 000 274 491 724 945 1027

200 400 600 800 1000 1200 F09 F10 F11 F12 F13

HLS 000

157 299 488 648 720

100 200 300 400 500 600 700 800

F09 F10 F11 F12 F13

HLS 000

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

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

28.00 53.00 19.00

F12

Lager Sorghum SBs

30.00 49.00 21.00

F13

Lager Sorghum SBs

35% 65%

F12

Lager Beer Sorghum Beer

39% 61%

F13

Lager Beer Sorghum Beer

200 400 600 800 1000 1200 F12 F13

Premium Main Stream Economy 5% 82% 13% 4% 77% 19%

100 200 300 400 500 600 700 800 F12 F13

Convenience pack RGB

23% 68% 32% 77%

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

• 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

• 6. Utilities
• Electricity and water remain a challenge though electricity has

shown some improvement lately.

• 5. Carbon Dioxide
• Adequate to peak

SZL (49%)

• Hotfill line installed.
• New juice products

launched.

• Profitability in the first

half affected by juice problems.

• Expected to be profitable

but below our forecast.

AFDIS (30%)

• Improving in line with

strategic plan.

• Management renewal

in progress.

PACKAGING CAPACITY Lager Beer Sparkling Beverages Sorghum Beer

• INSTALLED

CAPACITY 2,4m hls 2,4m hls 5m hls PROJECTED UTILISATION 88%* 75% 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%

• 3. Capex :

$82m – additional containers

THANK YOU