Slide 1: Presentation of Results FYE 30th September 2012
PRESENTATION OF RESULTS FYE 30th SEPTEMBER 2012
Slide 2: Sinazongwe Farm
Sinazongwe Farm
Slide 3: Disclaimer
Disclaimer THIS DOCUMENT (“DOCUMENT”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR GENERAL BACKROUND INFORMATION. THE DISTRIBUTION OF THIS DOCUMENT MAY BE RESTRICTED BY LAW. ACCORDINGLY, THIS DOCUMENT MAY NOT BE DISTRIBUTED IN ANY JURISDICTION EXCEPT IN ACCORDANCE WITH THE L
Slide 4: Contents
CONTENTS 2012 Highlights Divisional Review 2012 Performance Summary/Outlook
Slide 5: 2012 Highlights
2012 Highlights 2 Products PLC
Slide 6: 2012 Highlights
2012 HIGHLIGHTS REVENUE GROSS PROFIT* GROUP PROFIT* EBITDA* 32% 43% 41% 56% 2012: ZMK 1,296 bn 2012: ZMK 480 bn 2012: ZMK 63 bn 2012: ZMK 138 bn 2011: ZMK 983 bn 2011: ZMK335bn 2011: ZMK 44 bn 2011: ZMK 88 bn Successful integration of Mpongwe farm Zamanita upgrade and expansion Master Pork upg
Slide 7: Historic Financial Performance
Historic Financial Performance TURNOVER GROSS PROFIT* 480 (43%) 1,296 (32%) 983 (28%) 335 (38%) 771 242 255 (23%) 162 207 (28%) 70 (38%) 94 (34%) 51 2010 2011 2012 2010 2011 2012 Turnover (ZMK'bn) Turnover (USD'mn) GP (ZMK'bn) GP (USD'mn) 63 (41%) GROUP PROFIT FOR THE YEAR* EBITDA* 138 (56%) 45 (125
Slide 8: Segmental Summary
Segmental Summary Master Meats Master Meats Gross Profit Master Meats Ghana Revenue Ghana Nigeria 1% (1%) Leather Master Meats 1% (1%) 2% (2%) 1% (1%) Nigeria Bakery & Flour Leather 3% (2%) Beef Bakery & Flour 22% (23%) 5% (3%) 2% (1%) Beef 6% (6%) 24% (24%) Edible oils 10% (19%) Edible oils 16% (23
Slide 9: Divisional Review
lew ional Revi IvIS D 2 Products PLC
Slide 10: Cropping
CROPPING Turnover increased by 102%, gross profit increased by 154% & margins increased from 37% to 47% Accounts for 15% of group turnover and 22% of gross profits Cropping’s good performance was largely due to Mpongwe farm, which recorded very good yields 15,436 Ha planted during summer cro
Slide 11: Beef
BEEF Turnover increased by 17%; gross profit increased by 42% and margins increased from 29% to 35% Accounts for 22% of group turnover and 24% of gross profits Demand continued to outstrip supply To mitigate this, Zambeef has: Introduced a minimum guaranteed floor price to suppliers Init
Slide 12: Chicken
CHICKEN Turnover increased by 13%; gross profit increased by 33% and margins increased from 25% to 29% Accounts for 8% of group turnover and 7% of gross profits Demand continued to outstrip supply To mitigate this, Zambeef has built and stocked an additional 20 broiler houses Outlook – pos
Slide 13: Pork
PORK Turnover increased by 38%; gross profit increased by 31% and margins decreased from 31% to 29% Accounts for 8% of group turnover and 7% of gross profits During the year, Master Pork built a new abattoir in Chingola & successfully commissioned the Hirsch-Pro 400 automated processing plant
Slide 14: Milk & Dairy
Milk and Dairy Revenue ZMK’bn MILK & DAIRY 60 65% 52 54 70% 43 56% Turnover increased by 3%; gross profit decreased by 8% and 40 64% 50% margins decreased from 64% to 56% 20 30% Accounts for 4% of group turnover and 6% of gross profits 0 10% Demand continues to outstrip supply, and we are curr
Slide 15: Edible Oils
EDIBLE OILS Transitional year - soya crushing & SE Plant shut down for 10 months to carry out major upgrade & expansion Turnover decreased by 15%; gross profit decreased by 20% and margins decreased from 22% to 21% (excluding the Zamanita ZRA tax liability) Accounts for 16% of group turnover a
Slide 16: Stock Feed
Stock feed Revenue ZMK’bn 187 26% STOCK FEED 200 21% 128 30% 25% 150 Turnover increased by 47%; gross profit increased by 78% and 22% 20% margins increased from 22% to 26% 100 77 15% Accounts for 12% of group turnover and 10% of gross profits 10% 50 5% Currently running at full capacity and st
Slide 17: Mill & Bakery
MILL & BAKERY Turnover increased by 29%; gross profit increased by 151% and margins increasing from 13% to 25% Accounts for 6% of group turnover and 5% of gross profits Most of the profitability came from the wheat milling division, with demand for flour being high Bakery margins under press
Slide 18: West Africa
80 West Africa Revenue ZMK’bn 40% 30% 64 WEST AFRICA 60 24% 30% 39 Turnover increased by 65%; gross profit increased by 8% and 40 31 19% 20% margins decreased from 30% to 19% 20 10% Accounts for 4% of group turnover and 3% of gross profits 0 0% We continue to roll-out our West Africa expansion
Slide 19: 2012 Performance
2012 Performance 2 Products PLC
Slide 20: Abridged Income Statement
Abridged Income Statement ACTUAL ACTUAL ACTUAL % CHANGE % CHANGE TO ACTUAL TO ACTUAL K Millions Y/E 2012 Y/E 2012 Y/E 2011 % % incl Zamanita excl Zamanita incl Zamanita excl Zamanita Provision Provision Provision Provision Turnover 1,296,339 1,296,339 983,138 31.86% 31.86% Gross Profit 445,816 479,7
Slide 21: Abridged Balance Sheet
Abridged Balance Sheet ACTUAL ACTUAL ACTUAL incl Z amanita excl Z amanita Provision Provision ZMK'Ms Y/E 2012 Y/E 2012 Y/E 2011 Non Current Assets 925 661 925 661 817 702 Current Assets 690 829 685 395 359 365 TOTAL ASSETS 1 616 490 1 611 056 1 177 067 Capital and Reserves 752 020 801 170 744 593 No
Slide 22: Abridged Cash Flow
Abridged Cash Flow ACTUAL ACTUAL ACTUAL incl Z amanita excl Z amanita Provision Provision ZMK'Ms Y/E 2012 Y/E 2012 Y/E 2011 Profit Before Taxation 15 558 64 708 50 356 EBITDA 88 554 137 704 88 420 Movement in Working Capital (248 493) (297 643) (65 840) Cash inflow/(outflow) from (159 939) (159 939)
Slide 23: Segmental Summary
Segmental Summary Revenue Revenue Gross Profit Gross Profit GP Margin GP Margin Segment 2011 2012 Change 2011 2012 Change 2011 2012 ZMK'Bs ZMK'Bs % ZMK'Bs ZMK'Bs % Beef 280 327 17% 80 113 42% 29% 35% Chicken 106 120 13% 27 35 33% 25% 29% Pork 84 117 38% 26 34 31% 31% 29% Crops - row crops 110 223 10
Slide 24: Mpongwe Farm
Mpongwe Farm
Slide 25: Summary/Outlook
Summary/Outlook 2 Products PLC
Slide 26: Summary/Outlook
Summary/Outlook Integrated business model provides strong foundations for growth: Underpins margin capture and value-add Secures supply chain Reduces risk and earnings volatility Large capital investments now complete: Mpongwe farm successfully integrated with crop production ahead of bu
Slide 27: Key Financial Goals
Key Financial Goals 1) Grow top line revenue at a growth rate of at least 15% per year: 2012 = 32% 2) Improve Group gross margins to at least 35%: 2012 = 37% 3) Maintain a cost/income ratio of maximum 25%: 2012 = 25.5% 4) Grow bottom line profits at a growth rate of at least 15% per year: 2012 = 41%
Slide 28: Notes
Notes
Slide 29: Zamanita: New Soya Crushing & SE Plant Mpongwe Farm
Zamanita: New Soya Crushing & SE Plant Mpongwe Farm
Slide 30: Contact
CONTACT uo\* Private Bag 17, Woodlands Plot 4970, Manda Road Industrial Area, Lusaka, Zambia Tel: +260211 369000 Fax: +260211 369050 www.zambeefplc.com