RCL Foods Limited · JSE:RCL
RCL Foods — FY2016 Earnings Presentation
21 slides from RCL Foods's earnings presentation, Aug 31, 2016
Slide 1: Results for the Year Ended 30 June 2016 - Appendices
RESULTS FOR THE YEAR ENDED 30 JUNE 2016 INVESTOR PRESENTATION: 31 AUGUST 2016 APPENDICES
Slide 2: RCL Foods in Context
RCL FOODS IN CONTEXT FOOD, LIQUOR & HOME CARE BANKING HEALTHCARE INSURANCE INDUSTRIAL INFRASTRUCTURE MEDIA & SPORT 54
Slide 3: Divisions and Group Functions
CONSUMER SUGAR & MILLING LOGISTICS GROUP DIVISION DIVISION DIVISION FUNCTIONS Finance Information Technology Human Resources Corporate Affairs Audit & Risk 55
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 cust
Slide 5: Our Way
=] OUR WAY =—= WE’RE FORMORE =>— Wi We see and do things differently e We're restless, often maverick A) 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
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
OUR BUSINESS MODEL Speciality, Pies, Food Solutions Chicken, Sugar, Grains (Wheat, Maize), Animal Feed MAXIMISE IN SA \ \ Cookery, \ Baking, Beverages,
Slide 8: Strategic Thrusts
Salient features | Strategic overview | Financial review | Operational reviews | Prospects 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 PARTNE
Slide 9: Platform for Growth
PLATFORM FOR GROWTH REVENUE (Rbn) EBITDA (Rm) 2 224.0 25.0 23.4 1 766.5 22.4 1 434.6* 19.5 1 206.1 1 145.8 1 122.2 889.1* 12.0 12.9 11.6 688.3 10.1 8.7 445.3 4.5 195.0 2013 2014 2014 2015 2016 2013 2014 2014 2015 2016 INTERIM FULL YEAR INTERIM FULL YEAR *Pro-forma AROUND OVER 500 000 TONS 700 000 MO
Slide 10: Integrated Organisation
INTEGRATED ORGANISATION CONSUMER DIVISION SUGAR & MILLING DIVISION LOGISTICS DIVISION BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS Chicken, Speciality, Grocery, Pies & Sugar, Millbake, Animal Feed Logistics business responsible for Beverages, FoodSolutions Group-wide Route to Market 62
Slide 11: Our Brands
OUR BRANDS RELATIVE SALES 6 BRANDS OVER R1bn 5 BRANDS OVER R500m 9 BRANDS OVER R100m 8 BRANDS UNDER R100m 63
Slide 12: Consumer: Chicken
CONSUMER: CHICKEN Limpopo Province Tzaneen Polokwane Botswana Rustenburg Mpumalanga Windhoek North West Nelspruit Midrand Roodepoort Klerksdorp Carolina Namibia KwaZulu Natal Wolwehoek Newcastle Free State Pietermaritzburg Northern Cape Bloemfontein Lesotho Hammarsdale Durban 209 rearing, laying and
Slide 13: 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 14: Consumer: Groceries
CONSUMER: GROCERIES GROCERY PIE The Grocery Division consists of a portfolio of well recognised brands The Pie Division produces a range of high quality, with market leading positions. predominantly meat pies under the Piemans brand that are solid in these formats: frozen unbaked, frozen baked and c
Slide 15: Consumer: Groceries
CONSUMER: GROCERIES BEVERAGE SPECIALITY The Beverage Division produces a maize-based health drink under The Speciality Division produces a range of superior ready to eat the Mageu No 1, Smooth, Phuzimpilo and Mnandi brands. products, including speciality breads, mainly for Woolworths. The product ra
Slide 16: Sugar & Milling: Millbake
SUGAR & MILLING: MILLBAKE BAKING MILLING The Baking Division is the fourth largest bakery group in the The Milling Division operates the largest single site flour mill in country, operating seven bakeries and distributing its products in Southern Africa and a maize mill, both based at the same site
Slide 17: Sugar & Milling: Animal Feed
SUGAR & MILLING: ANIMAL FEED Limpopo 7 FEED MILLS Province Tzaneen Polokwane Botswana Rustenburg Pretoria Mpumalanga Windhoek North West Midrand Pongola Nelspruit Roodepoort Klerksdorp Carolina Namibia KwaZulu Natal Wolwehoek • 5 produce grain based Newcastle feeds Free State Northern Cape Bloemfont
Slide 18: Sugar & Milling: Sugar
SUGAR & MILLING: SUGAR SUGAR MILLS SUGAR MILLS MILL ESTABLISHED NOTES Nkomazi Malalane 1968 Nkomazi produces approximately Komati 1993 560 000 tons of sugar per year Pongola produces approximately Pongola Pongola 1954 140 000 tons of sugar per year MALALANE MILL 70
Slide 19: Operational Review: Logistics
OPERATIONAL REVIEW: LOGISTICS SERVICES PLANT BASED VECTOR COLD VECTOR PRINCIPAL FOOD SERVICE SALES & CREDIT & COLD STORES STORAGE (VCS) PRIMARY SECONDARY CUSTOMER MERCHANDISIN INFORMATION (PBCS) TRANSPORT DISTRIBUTION SECONDARY G INCLUDING MANAGEMENT (VPT) (PSD) DISTRIBUTION CALL CENTRE (CSD) 2008 2
Slide 20: Operational Review: Logistics
OPERATIONAL REVIEW: LOGISTICS CUSTOMER SECONDARY DISTRIBUTION (CSD) PRINCIPLE SECONDARY DISTRIBUTION (PSD) Vector is contracted by the customer to deliver their full Vector is contracted by the principal to deliver to all basket of products directly to the outlets retailers, wholesalers and general
Slide 21: Operational Review: Logistics
OPERATIONAL REVIEW: LOGISTICS Limpopo Province INFRASTRUCTURE Tzaneen Polokwane • Vector infrastructure Randfontein Pretoria • National footprint including Windhoek Botswana • 6 plant-based cold stores Rustenburg Mpumalanga Windhoek North • 13 distribution sites West Pongola • Capacity 100 608 palle