Zambeef Products Plc · LSE:ZAM

Zambeef Products — H1 2012 Earnings Presentation

28 slides from Zambeef Products's earnings presentation, September 2012

  1. Slide 1: Presentation of Interim Results for 6 months to 31st March 2012

    PRESENTATION OF INTERIM RESULTS for 6 months to 31st March 2012

  2. Slide 2: Disclaimer

    Disclaimer THIS DOCUMENT (“DOCUMENT”) IS STRICTLY CONFIDENTIAL AND IS BEING PROVIDED TO YOU SOLELY FOR YOUR 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 LEGAL REQUIREMENTS

  3. Slide 3: Contents

    CONTENTS Zambeef Group Overview Divisional Review Interim 2012 Performance Growth and Development

  4. Slide 4: Zambeef Group Overview

    Zambeef Group Overview

  5. Slide 5: Attractive Investment Opportunity

    ZAMBEEF ATTRACTIVE INVESTMENT OPPORTUNITY Sound macro- economic backdrop of sub-Saharan Africa Experienced management team Large supplier of with established track record “Farm cropping and protein in Zambia to Fully diversified and Fork” Strong recognised integrated business brands model Global dem

  6. Slide 6: Overview of Group's Business

    Overview of Group’s Business 6

  7. Slide 7: Historic Financial Performance

    Historic Financial Performance 652 228 Revenue Gross Profit* 457 144 357 113 128 45 77 97 30 24 Mar 2010 Mar 2011 Mar 2012 Mar 2010 Mar 2011 Mar 2012 Revenue (ZMK'Bn) Revenue (USD'Mn) Gross Profit (ZMK'Bn) Gross Profit (USD'Mn) EBITDA* 78 Profit for the period* 36 23 38 24 12 15 7 8 5 5 3 Mar 2010 M

  8. Slide 8: Segmental Summary

    Segmental Summary Revenue (2012) Gross Profit (2012)* Fish, Fish, West Africa Zamchick Inn Beef West Africa Zamchick Inn 4% & Leather 19% & Leather Chicken & Egg 3% Chicken & Egg3% 4% 13% 12% Bakery & Bakery & Pork Beef flour flour 7% 21% 5% 4% Pork 7% Edible oils Edible oils Crops - row 12% 19% cro

  9. Slide 9: Divisional Review

    Divisional Review

  10. Slide 10: Cropping

    CROPPING  Contributes 15% of revenue and 19% of gross profitability  15,946 Ha planted for summer cropping with majority dedicated to soya beans  Excellent summer season with high yielding soya crop harvested (over 35,000 MT)  Successful integration of Mpongwe Farms into cropping division  High

  11. Slide 11: Beef

    BEEF  Contributes 19% of revenue and 21% of gross profitability  Overall demand outstripped supply, especially traditional beef  Supply constraints being addressed with adequate stock holding Beef (USD'000s) 35,000 10,000 9,000 30,000 8,000 25,000 7,000 20,000 6,000 5,000 15,000 4,000 10,000 3,00

  12. Slide 12: Chicken & Egg

    CHICKEN & EGG  Contributes 13% of revenue and 12% of gross profitability  Strong demand, continuing to outstrip supply  Situation improving through extra production, better yields and new chicken houses  Demand from other retail chains to stock Zambeef products Chicken & Egg (USD'000s) 25,000 6,

  13. Slide 13: Pork

    PORK  Contributes 7% of revenue and 7% of gross profitability  Strong demand, continuing to outstrip supply  Situation improving through higher prices offered to pig producers and new pig abattoir  Completed new processing facilities  Opportunities to supply other retail chains and export Pork

  14. Slide 14: Milk & Milk Processing

    Milk (USD'000s) MILK & MILK PROCESSING 7,000 5,000  Contributes 4% of revenue and 8% of gross profitability 6,000 4,500 4,000  Demand continues to be strong and outstripping supply 5,000 3,500  Situation being addressed through importation of 180 4,000 3,000 in-calf heifers and construction of ne

  15. Slide 15: Edible Oils

    EDIBLE OILS  Contributes 19% of revenue and 12% of gross profitability (excluding ZRA tax liability)  Expansion and upgrade of crushing and SE plant, almost complete  Increase crushing capacity from 50,000 MT p.a. to 100,000 p.a.  Sourced c. 90,000 MT of soya beans in 2012 c.f. 36,000 MT in 2011

  16. Slide 16: Stock Feed

    Stock feed (USD'000s) STOCK FEED 18,000 4,500  Contributes 11% of revenue and 10% of gross 16,000 4,000 profitability 14,000 3,500  Operations nearing capacity 12,000 3,000  Consideration being given to expanding production 10,000 2,500 facilities 8,000 2,000  Demand continues to be strong in Za

  17. Slide 17: Mill & Bakery

    MILL & BAKERY  Contributes 5% of revenue and 4% of gross profitability  Strong demand with expansion of milling capacity Bakery & Flour (USD'000s) 9,000 1,800 8,000 1,600 7,000 1,400 6,000 1,200 5,000 1,000 4,000 800 3,000 600 2,000 400 1,000 200 - - 2010 2011 2012 Revenue Gross Profit 17

  18. Slide 18: West Africa

    WEST AFRICA W Africa (USD'000s)  Contributes 4% of revenue and 3% of gross profitability 6,000 1,600  Continued expansion with 2 new Shoprite stores opened 1,400 5,000  2 additional Shoprite stores expected to open before year 1,200 end 4,000 1,000 3,000 800 600 2,000 400 1,000 200 - - 2010 2011

  19. Slide 19: Fish, Zamchick Inn & Leather

    FISH, ZAMCHICK INN & LEATHER  Contributes 3% of revenue and 4% of gross profitability  Strong demand for fish  Improvement in quality of product and service resulting in improved performance of Zamchick Inn  Increased exports for leather and higher demand for shoes resulting in improved performa

  20. Slide 20: Interim 2012 Performance

    Interim 2012 Performance

  21. Slide 21: Abridged Income Statement

    Abridged Income Statement ACTUAL 1st ACTUAL 1st ACTUAL ACTUAL % CHANGE % CHANGE HALF HALF 1st HALF TO ACTUAL TO ACTUAL USD Millions Y/E 2012 Y/E 2012 Y/E 2011 Y/E 2011 % % excl Zamanita incl Zamanita excl Zamanita incl Zamanita Provision Provision Provision Provision Revenue 127.6 127.6 96.7 206.8 3

  22. Slide 22: Abridged Balance Sheet

    Abridged Balance Sheet ACTUAL ACTUAL ACTUAL ACTUAL excl Zamanita incl Zamanita Provision Provision USD Millions P/E 31.03.12 P/E 31.03.12 P/E 31.03.11 Y/E 30.09.11 Non Current Assets 171.3 171.3 116.8 170.4 Current Assets 84.3 85.4 56.3 74.8 TOTAL ASSETS 255.6 256.7 173.1 245.2 Capital and Reserves

  23. Slide 23: Abridged Cash Flow

    Abridged Cash Flow ACTUAL ACTUAL ACTUAL ACTUAL excl Zamanita incl Zamanita Provision Provision USD Millions P/E 31.03.12 P/E 31.03.12 P/E 31.03.11 Y/E 30.09.11 Profit Before Taxation 8.1 (1.6) 5.3 10.6 EBITDA 15.3 5.7 8.0 18.6 Movement in Working Capital (21.1) (11.5) (4.0) (13.7) Cash inflow/(outfl

  24. Slide 24: Segmental Summary

    Segmental Summary 2011 2012 2011 2012 % of Group % of Group Revenue Revenue Movement Gross Profit Gross Profit Movement (2012) (2012) Segment USD '000s USD '000s USD '000s USD '000s Crops - row crops 8,036 23,067 187% 15% 741 8,495 1047% 19% Beef 27,473 29,704 8% 19% 7,214 9,522 32% 21% Chicken & Eg

  25. Slide 25: Growth and Development

    Growth and Development

  26. Slide 26: Key Goals

    Key Goals 1) Grow top line revenue at a compounded organic growth rate of at least 15% per year. 2) Improve Group gross margins to at least 35%. 3) Maintain a cost/income ratio of maximum 25%. 4) Grow bottom line profits at a compounded organic growth rate of at least 15% per year. 5) Grow EPS at a

  27. Slide 27: Growth Prospects

    Growth Prospects • MEAT & DAIRY - Expansion of processing capacity at Master Pork, dairy plant, poultry division (layers, broilers & chicken abattoir), etc, to gear up for increased demand, driven by continued growth of the Zambian economy. • ZAMANITA - Upgrade & expansion of Zamanita plant to incre

  28. Slide 28: Contact

    CONTACT uo\* Private Bag 17, Woodlands Plot 4970, Manda Road Industrial Area, Lusaka, Zambia Tel: +260211 369000 Fax: +260211 369050 www.zambeefplc.com

Zambeef Products — H1 2012 Earnings Presentation on 6ix