RCL Foods Limited · JSE:RCL
RCL Foods — H1 2017 Earnings Presentation
24 slides from RCL Foods's earnings presentation, Feb 24, 2017
Slide 1: Results for the Six Months Ended 31 December 2016
RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 INVESTOR PRESENTATION APPENDICES 24 FEBRUARY 2017
Slide 2: RCL Foods in Context
RCL FOODS IN CONTEXT FOOD, LIQUOR BANKING HEALTHCARE INSURANCE INDUSTRIAL INFRASTRUCTURE MEDIA & SPORT & HOME CARE
Slide 3: Areas of Business
AREAS OF BUSINESS CONSUMER SUGAR & MILLING GISTICS. GROUP DIVISION DIVISION DIVISION FUNCTIONS Salestsolutlons) jee | ; (un) ee Information IN Technology Grocery Milling & Baking Supply Chain Intelligence wW Human Resources Speciality Animal Feed 0 Pies G © Foodsolutions
Slide 4: Our Passion
OUR PASSION _MORE FOOD TO MORE PEOPLE MORE OFTEN | WE BELIEVE IN DOING MORE... with a single minded passion to provide more food to more people, more often. We believe that by nourishing people while sustaining our resources, everyone wins. Communities will be enriched, employees inspired and our cu
Slide 5: We're For More
=—= WE’RE FOR MORE »— Foops = OUR WAY We see and do things differently We're restless, often maverick We rattle complacency’s cage, upset the status quo Not just for the sake of it But because we want to make an impact One that matters We want to do more and be more We want people to lead better liv
Slide 6: Our Way
OUR WAY MORE IMPACT MORE BRAVE MORE CURIOUS MORE OPEN MORE SPEED MORE YOU PS. MORE FUN! ee For the greatest impact, you need to face the brutal facts and clear the biggest hurdles. Have the courage to do the right thing. Make bold decisions. Learn from your mistakes. It’s curious people who have gam
Slide 7: Our Business Model
Speciality, é \\ Cookery, Pies, <i ‘ Baking, Food : Beverages, Solutions Chicken
Slide 8: Strategic Thrusts
STRATEGIC THRUSTS STRATEGIC THRUSTS STRATEGIC GOALS F16-F20 • Invest behind brands, grow key markets and our shares GROW THROUGH STRONG BRANDS • Accelerate added value, maximise core categories in South Africa PARTNER WITH STRATEGIC CUSTOMERS • Partner with strategic customers, driving common growth
Slide 9: Platform for Growth
PLATFORM FOR GROWTH 2 224.0 REVENUE (Rbn) 25.0 EBITDA (Rm) 23.4 22.4 1 762.4 19.5 22.4 1 434.6 1 206.1 1 122.2 1 152.2 12.9 13.1 11.6 12.0 889.1 900.4 10.1 8.7 688.3 445.3 4.5 196 2013 2014 2014* 2015 2016 20172017 2013 2014 2014* 2015 2016** 20172017 INTERIM FULL YEAR INTERIM FULL YEAR *Pro-forma *
Slide 10: Integrated Organisation
INTEGRATED ORGANISATION CONSUMER DIVISION SUGAR & MILLING DIVISION LOGISTICS DIVISION BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS Chicken, Speciality, Grocery, Sugar, Millbake, Animal Feed Logistics business responsible for Pies, Beverages Group-wide route-to-market Sales Solutions Supply Chain Int
Slide 11: Our Brands
OUR BRANDS RELATIVE SALES (12 Months to December 2016) 6 BRANDS OVER R1bn 5 BRANDS OVER R500m 10 BRANDS OVER R100m 8 BRANDS UNDER R100m
Slide 12: Market Share
MARKET SHARE VOLUME SHARE % FOR THE PERIOD 6MM Dec16 12MM Dec16 12MM Dec15 SOURCE Catfoods (RCL Brands) 19.9 18.9 15.0 Aztec* Dogfoods (RCL Brands) 27.0 26.9 26.7 Aztec Yum Yum Peanut Butter 31.3 31.1 29.8 Aztec Nola Mayonnaise 42.6 41.9 39.4 Aztec Freezer to Fryer 28.5 26.0 24.8 Aztec Sorghum (RCL
Slide 13: Chicken Bone-In Imports
- 10,000 15,000 20,000 25,000 30,000 35,000 5,000 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 TONS PER MONTH Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 Source: SAPA May-15 CHICKEN BONE-IN IMPORTS Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 Ma
Slide 14: Consumer: Chicken
CONSUMER: CHICKEN INTEGRATED SUPPLY CHAIN FROM “FARM TO FORK” GP OPERATION AGRICULTURE PROCESSING GRANDPARENT BROILER GRANDPARENT FARMS PARENT FARMS CHICKS FARMS PROCESSING REARING LAYING HATCHING REARING LAYING HATCHING GROWING 3 WEEKS BROILER 21 WEEKS 40 WEEKS 3 WEEKS 21 WEEKS 40 WEEKS 34 DAYS 4 P
Slide 15: Consumer: Chicken
CONSUMER: CHICKEN Limpopo The Chicken business unit produces a wide range of Province chicken products under 3 well established brands; Rainbow, Simply Chicken and Farmer Brown. Tzaneen Botswana Rustenburg Mpumalanga Windhoek North West Carolina Namibia KwaZulu Natal Wolwehoek 209 rearing, laying an
Slide 16: Consumer: Groceries
CONSUMER: GROCERIES GROCERY PIES The Grocery business unit consists of a portfolio of leading South The Pies business unit produces a range of high quality pies African brands spanning staples to top end offerings across a range under the Pieman’s brand in frozen unbaked, frozen baked and of food an
Slide 17: Consumer: Groceries
CONSUMER: GROCERIES BEVERAGES SPECIALITY The Beverages business unit produces a maize-based drink under The Speciality business unit produces a range of superior ready to the Mageu No 1, Smooth and Mnandi brands. eat products, including speciality breads, mainly for Woolworths. Botswana Limpopo Limp
Slide 18: Sugar Imports and Duties
SUGAR IMPORTS AND DUTIES 120,000 3500 3000 100,000 • Cumulative tons imported from 1 April 2015 and 2016 (start of industry year). 2500 • A total of 108, 943 tons have been 80,000 imported for the 9 months ended 31 December 2016 (Dec ’15: 55,007 2000 tons) DUTIES • Duties decreased from TONS 60,000
Slide 19: Commodity Prices
1500 2000 2500 3000 4000 4500 3500 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 (6m) Oct-15 R2 978 AVG Price H1 F16 Nov-15 Dec-15 Jan-16 3500 3700 3900 4100 4300 4700 4900 5100 5300 4500 Feb-16 Jan-15 Mar-16 Feb-15 Apr-16 Mar-15 May-16 Apr-15 7.4% YELLOW MAIZE PRICE Jun-16 May-15 J
Slide 20: Sugar & Milling: Sugar
SUGAR & MILLING: SUGAR The Sugar business unit produces a range of sugar products under the leading sugar brand Selati. Limpopo Province Tzaneen Malelane Komati Botswana Pretoria Mpumalanga Windhoek North Nelspruit West Pongola Namibia KwaZulu Natal Free State Northern Cape Bloemfontein Lesotho 3 Su
Slide 21: Sugar & Milling: Millbake
SUGAR & MILLING: MILLBAKE BAKING MILLING The Baking operations produce a range of bread products under The Milling operations produces flour and a range of maize meal the Sunbake brand - the fourth largest bread brand nationally. products at its flour mill - the largest single site flour mill in Sou
Slide 22: Sugar & Milling: Animal Feed
SUGAR & MILLING: ANIMAL FEED The Animal Feed business unit produces grain and molasses based feeds for a range of species including game, dairy, Limpopo poultry, horse, pigs and ruminants, under the leading brands Province of Epol and Molatek. Malelane Botswana Rustenburg Pretoria Mpumalanga Windhoe
Slide 23: Operational Review: Logistics
OPERATIONAL REVIEW: LOGISTICS Vector Logistics offers a fully integrated and cost effective outbound supply chain to customers and principals. The business is balanced and diversified with service offerings covering the full outbound supply chain. PLANT BASED VECTOR COLD VECTOR PRINCIPAL FOOD SERVIC
Slide 24: Operational Review: Logistics
OPERATIONAL REVIEW: LOGISTICS Limpopo Province Tzaneen Polokwane Pretoria Botswana Rustenburg Mpumalanga National footprint including Windhoek: Windhoek North West Roodepoort Midrand • 5 plant-based cold stores Nelspruit Dartprops • 13 distribution sites • Capacity 100 608 pallets Namibia KwaZulu Na