Slide 1: 2024 Results Presentation
2024 RESULTS PRESENTATION for the year ended 31 December 2024
Slide 2: 2024 in context
2024 in context
Slide 3: 2024 in context
2024 in context Navigating a challenging, uncertain operating environment • Trading hampered by a weak economy for most of the year • Low consumer and business confidence during 1H2024 • First signs of recovery at the end of 3Q2024, after interest rates and inflation declined, were not fully sustain
Slide 4: 2024 in context (continued)
2024 in context (continued) Good progress on strategic projects, including portfolio optimisation • Portfolio optimisation • Versapak sale concluded in November for R255m • Acquired minority interest in Africa Tanks in April • Plastics FMCG Wadeville product portfolio realignment progressing well de
Slide 5: 2024 in context (continued): Working towards a sustainable future
2024 in context (continued) Working towards a sustainable future • Solar generated power (16MWp) increased by 79% saving over R40 million in electricity costs - more solar installations underway • First digital twin development project • Successful CFO transition • Award-winning packaging designs •
Slide 6: Delivering on our strategy - investing for the future
Delivering on our strategy - investing for the future
Slide 7: Mkhondo Mill upgrade project, Mpumalanga
Mkhondo Mill upgrade project, Mpumalanga Mkhondo Mill Project Capex budget R1.3 billion 1H 2025: Pulp plant upgrade, new spray dryer, paper machine modifications Planned completion 2H 2027: Upgraded waste management infrastructure Virgin pulp: 120,000 tonnes (additional 58,000 tonnes) Targeted capac
Slide 8: Mkhondo Mill upgrade project, Mpumalanga
Mkhondo Mill upgrade project, Mpumalanga 8
Slide 9: Mpact Paper Converting upgrades
Mpact Paper Converting upgrades • Purpose: Expansion of capabilities to meet customer requirements and extend innovative product and service offering • Scope: • Converting equipment (Corrugator, RDC, FFG, bag and cup lines): Western Cape, Mpumalanga, Eastern Cape, Gauteng and Namibia • Site expansio
Slide 10: Mpact Plastic Containers, Castleview
Mpact Plastic Containers, Castleview • Purpose: Expansion of capabilities to meet customer requirements and extend innovative product offering, including food-grade production facility and automated warehouse • Scope: Property acquisition; setup manufacturing facility and warehouse; install new and
Slide 11: Innovation – award-winning products
Innovation – award-winning products Mpact’s dedication to creating smarter, sustainable solutions was recognised through 10 prestigious industry awards during 2024 Zlox cardboard component provides an interlocking Packaging design for Phoenix Beer corrugated carton solution Innovative packaging for
Slide 12: Financial overview
Financial Financial overview overview
Slide 13: Financial review
Financial review from continuing operations, excluding Versapak Group revenue • Revenue up 3.6% to R13.3bn 13,291 14 000 12,373 12,823 • Sales volumes up 1.6% (2H24 up 5.2% vs -2.1% in 12 000 7,118 10 000 6,630 6,583 1H24) R million 8 000 6 000 • Average selling price increase (up 2.0%) reflects a 4
Slide 14: Operating Review
Operating Review 14
Slide 15: Paper Business
Paper Business Segment revenue • Revenue up 2.7% to R11.0bn, with an increase of 3% in sales 12 000 11,008 volumes offset by lower selling prices 10,373 10,715 10 000 5,458 5,446 5,911 • Paper manufacturing volumes up 7.5% mainly due to increased R million 8 000 exports in 2H2024 6 000 4 000 5,269 5
Slide 16: Plastics Business
Plastics Business from continuing operations, excluding Versapak Segment revenue • Revenue up 8.0% to R2.3bn • Higher sales revenue and volumes at all operations other than 2 500 2,161 2,334 FMCG Wadeville, which declined as expected 2,041 2 000 1,237 • Bins & Crates volumes up 17% with good growth
Slide 17: Versapak – discontinued operation
Versapak – discontinued operation Disclosed separately in the Annual Financial Statements for the year ended 31 December 2024, with the assets and liabilities being reported as “held-for-sale” and the Income Statement reported as a “discontinued operation” 10-months • Sale completed on 4 November 20
Slide 18: Financial Performance
Financial Performance
Slide 19: Variable costs
Variable costs from continuing operations, excluding Versapak +6.2% Benchmark recovered paper prices (OCC) 9 000 8 182 7 625 7 701 160 (December 2022= 8 000 1 126 10% 140 1 038 1 022 7 000 984 10% 120 933 895 100 Index 100) 6 000 1 107 953 1 031 7% 80 5 000 1 119 60 R million 1 053 967 15% 4 000 Dec
Slide 20: Fixed costs
Fixed costs from continuing operations, excluding Versapak +7.0% • Total fixed costs, excluding depreciation and non- 4 500 4 185 recurring items, up by 5% 4 000 3 911 3 584 578 8% • Personnel costs increased by 3% 533 3 500 508 660 7% • Maintenance costs up by 6.8% 3 000 618 547 • Expanded operatio
Slide 21: Financial review
Financial review from continuing operations, excluding Versapak 1 December December Rands in millions 2024 2023 change Underlying operating profit from profit continuing operations 923 1,210 (23.7%) Net finance costs (297) (284) 4.6% Earnings from equity accounted investees and other 19 18 1.1% Unde
Slide 22: Net debt and bank facilities
Net debt and bank facilities Net debt December December June Rands in millions 2024 2023 change 2024 3000 2 665 2 371 Net debt close 2,371 2,665 (11.0%) 3,230 2500 224 270 2000 Net debt average 3,311 2,921 13.3% 3,251 R million 1500 2 441 Net finance costs 297 284 4.6% 148 1000 2 101 500 Gearing (%)
Slide 23: Movements in net debt
Movements in net debt 2 000 1 545 1 500 1 000 500 323 254 0 -92 -72 -59 -104 -155 R million -500 -343 -1 000 -1 003 -1 500 -2 000 -2 500 -2 371 -2 665 -3 000 Net debt at Cash Working Capital Net interest Income tax Dividend Proceeds Acquisition Purchase of Other Net debt at December generated capita
Slide 24: Working capital and ROCE
Working capital and ROCE from continuing operations, excluding Versapak Trade working capital % of revenue Return on Capital Employed (ROCE) 5 000 20% 22.6% 4 000 21.9% 18.5% 17.0% 2 639 2 719 2 394 15% 16.6% 3 000 2 338 2 000 18.4% 11.7% 18.0% 10% R million 1 000 1 979 1 999 2 150 % 1 463 0 5% -1 0
Slide 25: Capital expenditure
Capital expenditure 1 800 • Capital commitments of R1.5bn 1 600 1 537 • R225m has been contracted 114 • we expect to spend R1.1bn in the next 12 months, 1 400 of which R446m relates to the Mkhondo Mill 361 project 1 200 1 006 1 003 • Mkhondo Mill project spend included in FY2024 R million 1 000 56 a
Slide 26: Dividends
Dividends 140 120 120 115 105 • Final dividend in line with prior years 100 • Reflects our view of the importance of shareholder 45 40 returns and our continued confidence in the future of 30 the business Cents per share 80 • Will continue to focus on: driving long-term value for shareholders; 60
Slide 27: Outlook
Outlook
Slide 28: Outlook
Outlook • Mpact is well positioned to capitalise on any economic recovery in South Africa • Mkhondo Mill upgrade project commissioning scheduled for the end of June 2025 • Approximately three weeks of planned project downtime in 1H2025 • Financial benefits not expected to be realised immediately, bu
Slide 29: Thank you
Thank you Bruce Strong Hannes Snyman Chief Executive Officer Chief Financial Officer For any further Investor Relations questions please contact: Keyter Rech Investor Solutions Marlize Keyter | mkeyter@kris.co.za | +27 83 701 2021 RESULTS PRESENTATION for the year ended 31 December 2024 29