Nampak Limited · JSE:NPK
Nampak — Investor Day (August 2010)
116 slides from Nampak's investor day presentation, Aug 25, 2010
Slide 1: Nampak Investor Day 25th August 2010
Nampak Click Investor to add title Day Sub 25 Title 2010 th August Presented by: Name Surname | Date: Monday, September 22, 2008 Presented by: Name Surname | Date: Monday, September 22, 2008
Slide 2: Agenda
Agenda • Nampak Wiegand Glass • Bevcan • DivFood • Nampak Tissue • Nampak Strategy in Africa • Nampak Group Strategy 2
Slide 3: Nampak Wiegand Glass
Click Nampak to add title Wiegand Glass Presented by: Name Surname | Date: Monday, September 22, 2008 Click to add subtitle Presented by: Name Surname | Date: Monday, September 22, 2008
Slide 4: Aerial View of the Plant
Aerial View of the Plant Presented by: Name Surname | Date: Monday, September 22, 2008 4
Slide 5: Nampak Wiegand Glass Overview
Nampak Wiegand Glass Overview Single plant operation Roodekop (Gauteng) Two furnaces (F1 & F2) Total daily output +/- 630 tons Total annual output +/- 185 000 tons 7 production lines F1: 3 lines & F2: 4 lines Five colours Presented by: Name Surname | Date: Monday, September 22, 2008 Flint,
Slide 6: Joint Venture Shareholders
Joint Venture Shareholders Presented by: Name Surname | Date: Monday, September 22, 2008 Joint venture agreement between Nampak and Wiegand Glas signed in October 2005 6
Slide 7: Nampak Wiegand Glass at a Glance
Nampak Wiegand Glass at a Glance 7
Slide 8: Major Customers
Major Customers •SABMiller •Heineken •Namibia Breweries •SABEX •Coca Cola System ( ABI/CC Fortune/ Shanduka) •Distell Presented by: Name Surname | Date: Monday, September 22, 2008 •E Snell •KWV •Douglas Green •Diageo •Tiger Brands 8
Slide 9: Products
Products GOLD Trophy – Sustainable Packaging 9
Slide 10: Market Share
Market Share SA market is 1,100,000 tonnes p.a. SA Market Share 80% Presented by: Name Surname | Date: Monday, September 22, 2008 Consol Nampak Wiegand 18% Imports 2% 10
Slide 11: Glass – Competitive Advantages
Glass Competitive Advantages • High barriers to entry • Only two players in the market – we are the second player • Improved operational performance – high quality reputation • New investments delivering value – furnaces, cullet plant etc • Competitive Disadvantages • Only a two furnace operation o
Slide 12: Glass – Strategy
Glass – Strategy • Leverage the manufacturing base o Leverage narrow-neck-press-and-blow technology to manufacture lightweight bottles o Improve the pack-to-melt performance • Expand capacity in furnace 2 rebuild • 3rd furnace investment 12
Slide 13: Bevcan
Click Bevcan to add title Click to add subtitle Presented by: Name Surname | Date: Monday, September 22, 2008
Slide 14: Bevcan Background
Bevcan Background • Manufacture beverage cans for carbonated soft drinks, alcoholic beverages, energy drinks, vegetable and fruit juices. • Our cans have tinplate steel bodies with aluminum ends and are available in standard and slimline options ranging from 200ml – 440ml. Presented by: Name Surname
Slide 15: Bevcan – Competitive Advantages
Bevcan Competitive Advantages • High barriers to entry • National geographic spread of plants • Strong operational performance, systems and skills • Good customer relationships • SA market is relatively small • Strong export capability & growth opportunity into Africa Competitive Disadvantages • Per
Slide 16: Plant locations
Plant locations Angl: 1 Line – 725 m (WIP) Ros: 3 Lines – 950 m Spr: 2 Lines – 1.35 bn Dbn: 1 Line – 450 m CT: 1 Line – 650 m 16
Slide 17: Beverage Can Volume History – By Supplier
Beverage Can Volume History – By Supplier 17
Slide 18: Volume History - Geographical
Volume History - Geographical 18
Slide 19: Sales – Geographical Spread
Sales – Geographical Spread 19
Slide 20: Angolan Expansion
Angolan Expansion • One of the fastest growing economies in the world • Only market in the world where the beverage can market size exceeds a fully utilised can line, without any local can manufacturer • Estimated beverage can market in excess of a billion cans • Currently supplying 50% from RSA • O
Slide 21: Angolan Expansion
Angolan Expansion Presented by: Name Surname | Date: Monday, September 22, 2008 21
Slide 22: Angolan Expansion
Angolan Expansion Presented by: Name Surname | Date: Monday, September 22, 2008 22
Slide 23: Environmental Responsibility: Collect-a Can
Environmental Responsibility: Collect-a Can • Collect-A-Can was established in 1993 as a JV between Nampak and Mittal Steel South Africa • Dedicated to ensuring that used beverage cans, exist in harmony with the environment • Creates consumer awareness for the can being the most recovered packaging
Slide 24: Collect-a-Can: RSA Recovery Rates
Collect-a-Can: RSA Recovery Rates Presented by: Name Surname | Date: Monday, September 22, 2008 24
Slide 25: Bevcan – Strategy
Bevcan – Strategy • Secure and grow the Home Base • Consolidate the Angolan market o Complete project ASAP o Win all the can business in Angola – install second line • Maintain management and manufacturing base • Replacement of Angolan exports o Grow local market with customers o Expand exports o Le
Slide 26: Bevcan: Total Volume Growth
Bevcan: Total Volume Growth 4,000 3,500 3,000 2,500 2,000 Presented by: Name Surname | Date: Monday, September 22, 2008 1,500 1,000 500 0 2010 2011 2012 2013 2014 2015 Angolata 0 207 693 705 1,224 1,260 Bevcan RSA 2,570 2,393 2,100 2,165 2,240 2,310 26
Slide 27: Marketing Campaign
Marketing Campaign Presented by: Name Surname | Date: Monday, September 22, 2008 27
Slide 28: DivFood
DivFood Presented by: Name Surname | Date: Monday, September 22, 2008
Slide 29: DivFood: Production Facilities & Customers
DivFood: Production Facilities & Customers Major customers: Tiger Brands VANDERBIJLPARK Langeberg & Ashton Foods Oceana Nestle Rhodes Foods Reckitt Benckiser Giants Bull Brand SC Johnson Sara Lee Presented by: Name Surname | Date: Monday, September 22, 2008 Unilever MOBENI PAARL EPPING Two piece can
Slide 30: Food Cans
Food Cans \UCKY STAR Ya
Slide 31: Aerosol Cans
Aerosol Cans 31
Slide 32: Shaped Aerosol Cans
Shaped Aerosol Cans packaging excellence
Slide 33: Aluminium Bottles
Aluminium Bottles 33
Slide 34: Paint Cans
Paint Cans 34
Slide 35: Polish Cans
Polish Cans > KiWwy7 QUALITY SHOE POLISH PROTECTS = WATERPROOFS = SHINES, TONEY RED TRIPLE WAX POLIS: a = GABF len 4aVENDER “ANI 4 in the Cat io Cie, TRIPLE WAX PO!!! Nampak
Slide 36: Promotional Tinware
Promotional Tinware Nampak packaging excellence
Slide 37: Other General Products
Other General Products SSL_pDEN ~SYRUP__ dhe strong apSinfecta® id cleans® CarBouic ACIO COpFFicienT 412°
Slide 38: Metal Packaging Market
Metal Packaging Market Major Categories Nampak Local Competition Imports 2 Piece Food 100% 0% 0% 3 Piece Food 60% 30% 10% Tinplate Aerosols 84% 0% 16% Aluminium Aerosols 70% 0% 30% Paint 68% 32% 0% Polish 95% 5% 0% Fuels & Lubes 100% 0% 0% 38
Slide 39: DivFood – Competitive Advantages
DivFood Competitive Advantages • Reasonably high barriers to entry • Geographic spread • R&D and other support • Capacity and size, with diversity of range • Technical status with major brand and retail owners • Technologically advanced in some areas • 2 Piece can format (integrity and cost) Competi
Slide 40: Strategy
Strategy • Substantially upgrade manufacturing base • Develop alternative sources of raw material supply • Drive improved supply chain 40
Slide 41: Growth Opportunities
Growth Opportunities • Grow in new markets: o Monobloc Aerosols – develop to +100m units o 2-piece cans (vegetable, fish, and possibly fruit ) o Components for own cans and exports • Expand to rest of Africa 41
Slide 42: Nampak Tissue
Nampak Click Tissue to add title Sub Title Presented by: Name Surname | Date: Monday, September 22, 2008 Presented by: Name Surname | Date: Monday, September 22, 2008
Slide 43: Nampak Tissue Footprint
Nampak Tissue Footprint Recycling Paper Mills Converting Sancella Division + Johannesburg Pretoria Johannesburg National Footprint Durban Cape Town Cape Town Pietermaritzburg 43
Slide 44: Tissue Business & Categories
Tissue Business & Categories Consumer Paper Sancella (JV) Consumer H & L 1 Ply 45% Diaper 26 Foil 3% 2Ply % Facial Fempro Wraps Kitchen Towel Serviettes Inco Plates Away From Home Paper products, Towels, Wipes & Dispensers 19% Additional Sales Recycling and Flat Grades 8% 44
Slide 45: Market Info – Market Growth & Shares
Market Info – Market Growth & Shares Market Size Market Size Market Market Volume Value Share % Share % (Tons/Pcs) (R) Volume Value 1 Ply 51,340 -7% 1,26 Bil +8% 45% +0.7 53% +2.4 TS 31% TS 35% 2 Ply 21,593 +5% 827 Mil +15% 28% +1.3 28% + 1.7 TS 18% TS 18% Facial 3,241 -4% 243 Mil +15% 53% +3.2 43%
Slide 46: Nampak Tissue – Competitive Advantages
Nampak Tissue Competitive Advantages • Strong brands • Manufacturing infrastructure with barriers to entry • Recycling capability (in-house) • National footprint – supply chain • Experienced personnel • Consistent quality – attributes to value • Nampak/SCA Partnership Competitive Disadvantages • Lim
Slide 47: Competitor Range Positioning
Competitor Range Positioning 10% 40% Business Growth Rate Procter & Gamble Contribution Margin 5% K-C (2-ply, Facial & Fluff) 30% Nampak Tissue (Paper) Sancella 0% 20% -5% Independents (1-ply) -10% 15% 10x 1x 0.1x Relative Competitive Position • Competition ranges by category from independents to mu
Slide 48: Strategic Imperatives – Defend and Grow
Strategic Imperatives – Defend and Grow • Defend the core business (AFH & Consumer) – Toilet tissue still the core – Continue investments behind brands – Industry governance • Preserve industry profitability (approach to value added categories) – Increase share of value added segment – Improve brand
Slide 49: Sancella
Sancella Competitive Advantages • Strong established consumer brands (Cuddlers & Lifestyle) • Number 1 brand in the diaper value segment • Trade support as an alternative to dominant diaper brands • Tena is a strong Inco brand (30% share worldwide) • SCA partnership & innovation opportunities • Adva
Slide 50: Sancella Strategy
Sancella Strategy • Diaper growth path – Build Cuddlers brand and grow market share – Investment to replicate success of Nemo 1 • Lifestyle turnaround plan – Improve Lifestyle market share in line with brand equity – Maintain brand building activities – Drive the wholesale plan (Thick High Tech) • T
Slide 51: Nampak Strategy in Africa
Nampak Click Strategy to add title in Africa Sub 25 Title 2010 th August Presented by: Name Surname | Date: Monday, September 22, 2008 Presented by: Name Surname | Date: Monday, September 22, 2008
Slide 52: Rest of Africa - Agenda
Rest of Africa - Agenda • Where is Nampak in Africa • Where are the opportunities in Africa • Nampak strategy in Africa • Summary of current strategic initiatives • Regional update 52
Slide 53: Rest of Africa - Agenda
Rest of Africa - Agenda • Where is Nampak in Africa • Where are the opportunities in Africa • Nampak strategy in Africa • Summary of current strategic initiatives • Regional update 53
Slide 54: Difficult to compete
Difficult to compete 1: Proximity to Europe 2: Culture and language 3: Logistics
Slide 55: Focus on sub-Saharan Africa only
Focus on sub-Saharan Africa only
Slide 56: Nampak in Africa – Where are We?
Nampak in Africa – Where are We? 20 operations in 12 countries 86 factories Turnover +/- R1.9 bn Ethiopia 1 Kenya 1 Presented by: Name Surname | Date: Monday, September 22, 2008 Nigeria 2 Tanzania Angola 1 Malawi 1 1 under construction Zambia Mocambique Namibia 2 1 1 Botswana South Africa 1 Zimbabwe
Slide 57: Nampak in Africa - 2010
Nampak in Africa - 2010 Rm Revenue 750 600 450 300 150 0 Malawi Nigeria Zambia Tanzania Mozambique Kenya 9% of Group (excl Zimbabwe) 57
Slide 58: Products Manufactured in Africa
Products Manufactured in Africa Country Metals Glass Paper Tissue Plastics Kenya * * Malawi * * Mocambique * Namibia * Presented by: Name Surname | Date: Monday, September 22, 2008 Nigeria * * South Africa * * * * * Swaziland * Tanzania * * Zambia * * * Zimbabwe * * * * 58
Slide 59: Nampak in Africa - Where are We?
Nampak in Africa - Where are We? • Operations +/- R1.9 bn • Exports +/- R1.65 bn Ethiopia 86 factories 1 Kenya 1 Presented by: Name Surname | Date: Monday, September 22, 2008 Nigeria 2 Tanzania Angola 1 Malawi 1 1 under construction Zambia Mocambique Namibia 2 1 1 Botswana South Africa 1 Zimbabwe 65
Slide 60: Nampak in Africa - 2010
Nampak in Africa - 2010 Local Imports ex Total Country Manufacture Nampak SA Business (R' mill ) (R' mill ) (R' mill ) Angola R0 R 428 R 428 Botswana R 20 R 211 R 231 DRC R0 R2 R2 Kenya R 275 R 72 R 347 Malawi R 127 R 10 R 137 Mozambique R 35 R 101 R 135 Namibia R0 R 466 R 466 Nigeria R 440 R 31 R 4
Slide 61: Rest of Africa - Agenda
Rest of Africa - Agenda • Where is Nampak in Africa. • Where are the opportunities in Africa • Nampak strategy in Africa • Summary of current strategic initiatives • Regional update 61
Slide 62: Rest of Africa Economies : 2009
Rest of Africa Economies : 2009 GDP US$ % per cap Country (Billion) Growth (PPP) Angola 85.5 7.0% 5,431 Botswana 12.9 6.3% 13,214 DRC 12.6 5.4% 323 Kenya 34.2 4.1% 1,568 Presented by: Name Surname | Date: Malawi 4.8 Monday, 5.9% September 22, 2008 550 Mozambique 10.2 6.4% 950 Namibia 10.5 1.7% 6,327
Slide 63: Rest of Africa Economies : 2009
Rest of Africa Economies : 2009 GDP US$ % per cap Country (Billion) Growth (PPP) Angola 85.5 7.0% 5,431 Botswana 12.9 6.3% 13,214 DRC 12.6 5.4% 323 Kenya 34.2 4.1% 1,568 Malawi Presented by: Name Surname 4.8 5.9% | Date: Monday, September 22,550 2008 Mozambique 10.2 6.4% 950 Namibia 10.5 1.7% 6,327
Slide 64: Economic Zones in Africa
Economic Zones in Africa Presented by: Name Surname | Date: Monday, September 22, 2008 64
Slide 65: Key Trade Zones in Africa
Key Trade Zones in Africa SADC COMESA ECOWAS Presented by: Name Surname | Date: Monday, September 22, 2008 Suspended Members Current Members SADC Members Only Former Member of the SACU Members COMESA SADC – 15 Member States COMESA - 19 member states ECOWAS – 15 States SADC –Free Trade Area 12 states
Slide 66: Rest of Africa - Agenda
Rest of Africa - Agenda • Where is Nampak in Africa. • Where are the opportunities in Africa • Nampak strategy in Africa • Summary of current strategic initiatives • Regional update 66
Slide 67: Rest of Africa – Growth Strategy
Rest of Africa – Growth Strategy • Build a market base through exports • Establish local manufacture when critical mass achieved • Diversify established manufacturing base to other Nampak products • Create hubs in key growth areas and trading blocks • Follow major Nampak customers 67
Slide 68: Nampak in Africa – Regional Hubs
Nampak in Africa – Regional Hubs Kenya 1 Presented by: Name Surname | Date: Monday, September 22, 2008 Nigeria 2 South Africa 65 68
Slide 69: Rest of Africa – Multi-National Opportunities
Rest of Africa – Multi-National Opportunities • BAT • Cadbury • SAB Miller • Diageo • Heineken • Illovo Sugar • Coca Cola • Lafarge • Pepsi • Colgate Palmolive • Unilever • PZ Cussons • Nestle • Sara Lee • Diageo • Reckitt Benckiser 69
Slide 70: Rest of Africa - Agenda
Rest of Africa - Agenda • Where is Nampak in Africa • Where are the opportunities in Africa • Nampak strategy in Africa • Summary of current strategic initiatives • Regional update 70
Slide 71: Rest of Africa – Current Strategic Initiatives
Rest of Africa – Current Strategic Initiatives • Angola • Beverage can line $150 m, commissioning March 2011 • Nigeria • Beer Labels New label press – commissioning October 2010 • Expand capacity and range in metals – ointment, paint, food • Zambia • New paper bag line to supply Illovo - commissioni
Slide 72: Rest of Africa - Agenda
Rest of Africa - Agenda • Where is Nampak in Africa. • Where are the opportunities in Africa • Nampak strategy in Africa • Summary of current strategic initiatives • Regional update 72
Slide 73: West Africa
WEST AFRICA | AUGERIA iv Tropic of Cancer Scale 1:51,400,000 Pies Kil Azimuthal Equal-Area Projection T 8 0 800 Kilometers DEM. REP. a S| = t) B00 Miles OF THE ebsis Vinchace \ Nampak packaging excellence
Slide 74: Nampak Nigeria
Nampak Nigeria — NIGERIA Birnin YOBE KATSINA Kebbi BORNO Damaturu = BAUCHI Kadui KADUNA Bauchi NASSARAWA Jalingo Lafia TARABA Makurdi Maiduguri Calabar Ndmpak packaging excellence
Slide 75: Nigeria - Cartons
Nigeria - Cartons Company Shareholding Products Nampak Cartons 100 % Cartons / Labels Key Issues • Established operation now with good skills and equipment • Underpinned by 10 year supply agreement to BAT • Good growth prospects in beer labels and FMCG multi-nationals Strategy • Expand into non ciga
Slide 76: Nigeria Metals - Issues
Nigeria Metals - Issues Listed company – Nampak shareholding 57% Competitive Advantages • Reasonably high barriers to entry – already established • Only two major independent players in Nigeria • Existing reinvestment programme is bearing fruit • Site is ideally located near customer base and indust
Slide 77: Nigeria Metals - Strategy
Nigeria Metals - Strategy • Reinvest in productive output of plant • Grow with existing customer base and invest behind this growth • Leverage the technical competence of RSA • Acquisitions • Expand product portfolio to include other Nampak product lines 77
Slide 78: East Africa
EAST AFRICA AKAGIA , Al Democratic Republic of Congo Map is not t0 scale. It should therefore not be used for other purpose other than purposes of reflecting the ral alignment of the Zast Affican Road Nework idors. additional road links are in dotted lines in colours ‘ar 10 the Corridors of their al
Slide 79: East Africa - Issues
East Africa - Issues Competitive Advantages • Reasonably high barriers to entry –established in Kenya, Tanzania and Ethiopia (25%) • Only 4 major independent players in East Africa in metals • Good manufacturing base in Kenya • Reputation as the premium supplier • Duty protection and need for local
Slide 80: East Africa - Strategy
East Africa - Strategy • Invest in productive output of plant • Follow lead brand owners in region • Beverage • Food • Develop additional product ranges o Sacks/Bags – increase capacity of existing JV • Leverage the technical competence of RSA 80
Slide 81: Mozambique
Mozambique Competitive Advantages • Only local manufacturer • Good customer relationships • Good equipment Competitive Disadvantage • Skills and size Strategy • Secure contracts with major customer • Leverage technical competence of RSA 81
Slide 82: Zambia
Zambia Mini Nampak Liquid Paper & Plastic Steel drums Revenue Paper & Board $30m Crowns Plastic crates 82
Slide 83: Zambia-Liquid Paper: Sorghum Beer
Zambia-Liquid Paper: Sorghum Beer Competitive Advantages • Preferred container (conical) • Manufacturing footprint (RSA, Malawi & Zambia) • Low-cost filling machines • Service infrastructure • SAB contract Competitive Disadvantages • SAB dominant customer • Printing graphics (4 colours) Strategy • R
Slide 84: Zambia – Liquid Plastics
Zambia – Liquid Plastics Competitive Advantages • Systems supplier – bottle, cap and filling equipment Competitive Disadvantage • Low cost self-manufacture by customers Strategy •Utilise existing capacity •Expand Mageu market with NBL 84
Slide 85: Zambia – Steel Drums
Zambia – Steel Drums Competitive Advantages • Sole local supplier Competitive Disadvantage • Old paint and printing equipment Strategy • Milk 85
Slide 86: Zambia – Paper & Board
Zambia – Paper & Board Competitive Advantages • Good printing facilities • Technical backup from Cartons & Labels South Africa • Part of Cartons & Labels manufacturing hub in Southern Africa Competitive Disadvantage • No gravure label capacity Strategy • Supply Zambian Breweries with beer labels • R
Slide 87: Zambia - Crowns
Zambia - Crowns Competitive Advantages • Sole local supplier • Spare capacity • Import duties Competitive Disadvantage • Low cost crowns from RSA and Kenya Strategy • Retain local business • Regional supply • Malawi • DRC 87
Slide 88: Zambia – Plastic Crates
Zambia – Plastic Crates Competitive Advantages • Sole viable local supplier • Technical backup from Megapak South Africa Competitive Disadvantage • Low priced imports from Megapak Zimbabwe Strategy • Restrict capacity to ensure high equipment utilisation 88
Slide 89: Malawi
Malawi Company Shareholding Products PIM (listed) 64% Corrugated Sorghum beer cartons Sacks Key Issues: • Only significant local player in big tobacco market • Small but growing market in sorghum beer and sacks Strategy • Grow sales to tobacco market / sacks market (agency) • Leverage regional sorgh
Slide 90: Zimbabwe
Zimbabwe Company Shareholding Products Hunyani (listed 39% Cartons/corru//sacks Megapak 49% Crates / Rigid Plastics CMB 100% Metals / Rigid Plastics Key Issues • Good growth prospects (tobacco / sacks) • Indigenization Laws • Political Stability • Not full management control Strategy • Adopt a wait
Slide 91: Nampak Group Strategy
Nampak Click Group to add title Sub Title Presented by: Name Surname | Date: Monday, September 22, 2008 Presented by: Name Surname | Date: Monday, September 22, 2008
Slide 92: Nampak vs Alsi – 10 year trend
Nampak vs Alsi – 10 year trend index 400 350 ALSI 300 250 200 150 Nampak 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 92
Slide 93: Nampak vs Alsi – recent trend
Nampak vs Alsi – recent trend index 170 ALSI 160 150 140 Nampak 130 120 110 100 90 80 Mar-09 Jul-09 Nov-09 Mar-10 Jul-10 93
Slide 94: Nampak vs Competitors – 10 year trend
Nampak vs Competitors – 10 year trend Share prices based to 100 1000 900 Nampak 800 Astrapak Bowler Metcalf 700 600 Presented by: Name Surname | Date: Monday, September 22, 2008 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 94
Slide 95: Nampak vs Competitors – recent trend
Nampak vs Competitors– recent trend Share prices based to 100 220 Nampak 200 Astrapak Bowler Metcalf 180 160 140 120 100 80 Mar-09 Jul-09 Nov-09 Mar-10 Jul-10 95
Slide 96: Group Competitive Advantages
GROUP COMPETITIVE ADVANTAGES 96
Slide 97: Substantial Market shares
Substantial Market shares Packaging 100% 85% 50% 40% 30% 20% Beverage cans 1 Aluminium aerosol cans 1 Tinplate aerosol cans 1 Food cans 1 Paper sacks 1 HDPE milk and juice bottles 1 Folding cartons 1 Presented by: Name Surname | Date: Monday, September 22, 2008 Flexible plastics 1 PET bottles 1 Corr
Slide 98: Established Base in African Countries
Established Base in 12 African Countries Ethiopia 1 Kenya 1 Nigeria 2 Tanzania Angola 1 Malawi 1 1 under construction Zambia Mocambique Namibia 2 2 1 Botswana 1 Zimbabwe Swaziland 7 1 98
Slide 99: Market Competitive Advantages
Market Competitive Advantages • Long-term contracts and cost escalation formulae • R & D facility • Comprehensive range of metal, plastic, paper and glass packaging • Strong brands in toilet paper, tissue, diaper and feminine products • Recycled product capabilities and high recovery rates 99
Slide 100: Manufacturing Competitive Advantages
Manufacturing Competitive Advantages • Technology agreements • Technical competence • Generally good kit • Geographic spread of manufacturing facilities • In-plant facilities • High barriers to entry in many sectors 100
Slide 101: High Barriers to Entry
High Barriers to Entry Rm Approximate Cost 1,000 900 800 700 600 500 400 300 200 100 0 Bevcan Glass Tissue mill Gravure Litho line furnace printer printer 101
Slide 102: Cash Generated from Operations
Cash Generated from Operations Rm 2,500 2,000 1,500 1,000 500 0 2005 2006 2007 2008 2009 2010 102
Slide 103: Financial Strength
Financial Strength X Net Debt/EBITDA 7 6 5 4 3 2 1 0 Nampak Mondi Amcor O-I Ball Smurfit Astrapak SCA Rexam Sappi Crown Source: RBS, Astrapak 103
Slide 104: Other Competitive Advantages
Other Competitive Advantages • BEE rating • Ethical, moral group • SRI index • Procurement • Strong systems 104
Slide 105: Group Competitive Disadvantages
GROUP COMPETITIVE DISADVANTAGES 105
Slide 106: Competitive Disadvantages
Competitive Disadvantages • Power of customers in some areas • Power of suppliers in some areas • Wage rates • Group charges/IT costs 106
Slide 107: Financial Strategy
FINANCIAL STRATEGY 107
Slide 108: Financial Strategy
Financial Strategy • Reduce gearing • Return on net assets > 20% • Real growth in HEPS • Cost focus • Allocation of capital 108
Slide 109: Financial Strategy
Financial Strategy • Non-performer resolutions • Capex = depreciation • Outsource non-core functions • Working capital management 109
Slide 110: Group Strategy: Metals & Glass Strategy Presentation
GROUP STRATEGY Metals & Glass Strategy Presentation Presented by: Name Surname | Date: Monday, September 22, 2008 110
Slide 111: Nampak Group Strategy – Core Divisions
Nampak Group Strategy Core Divisions with Competitive Advantages Retain South Africa Africa Europe 111
Slide 112: Nampak Group Strategy – Divisions with Disadvantages
Nampak Group Strategy Divisions with Competitive Disadvantages Fix/Sell/Close South Africa Africa Europe Disposals in last year • Disaki * * Subject to regulatory approval • L&CP * • Foam • Flexpak • Redibox • Carmoc • Containers 112
Slide 113: Key Opportunities – Africa
Nampak Group Strategy Key Opportunities Africa Angola Beverage plant (phases 1 & 2) Other Nampak products once beverage plant commissioned Nigeria Metals Cartons & Labels Zambia Sacks Labels Kenya Tea sacks Maize bags Metals 113
Slide 114: Key Opportunities – South Africa and Europe
Nampak Group Strategy Key Opportunities South Africa Divfood Monobloc aerosol 2 piece cans Tissue Diapers 2 ply tissues Closures Supershorty DBJ Liquid Long life milk Glass Wide mouth jars Additional capacity Europe Plastics Arla in plant N Ireland Lightweighted bottles 114
Slide 115: Nampak Group Strategy - Conclusion
Nampak Group Strategy - Conclusion 1. Focus and invest in core divisions where we have a sustainable competitive advantage. 2. Continue disposal of divisions with competitive disadvantage. 3. Take advantage of numerous opportunities in core operations in Africa, South Africa and Europe. 4. Stratplan
Slide 116: Thank you
Thanktoyou Click add title Sub Title Presented by: Name Surname | Date: Monday, September 22, 2008 Presented by: Name Surname | Date: Monday, September 22, 2008