Slide 1: Rainbow Chicken Limited Interim Financial Results
RAINBOW CHICKEN LIMITED INTERIM FINANCIAL RESULTS for the six months ended December 2024
Slide 2: Disclaimer
DISCLAIMER Rainbow Chicken Limited (“Rainbow”) has made every effort to ensure the accuracy and completeness of the information in this presentation. However, the recipients should be aware that any information contained in this presentation has not been audited or reviewed by Rainbow’s external a
Slide 3: Agenda
AGENDA 01 SALIENT FEATURES & Marthinus Stander – CEO STRATEGIC REVIEW 02 FINANCIAL Kerry Van der Merwe – CFO REVIEW 03 OPERATIONAL Wouter De Wet – COO REVIEW 04 PROSPECTS Marthinus Stander – CEO RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 3
Slide 4: Salient Features & Strategic Review
01 SALIENT FEATURES & STRATEGIC REVIEW MARTHINUS STANDER | CEO RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024
Slide 5: Key Highlights
KEY HIGHLIGHTS TURNAROUND MOMENTUM MAINTAINED DELIVERING A PLEASING RESULT AND IMPROVEMENT ON PREVIOUS YEAR REVENUE EBITDA¹ EARNINGS EPS EBITDA¹ • Rainbow’s “Brilliant R7,9 billion R581,1 million R317,0 million 35.58 cents Basics” turnaround strategy continues to 8.9% 119.0% 1 407.1% 1 407.6
Slide 6: Reflections by the CEO
REFLECTIONS BY THE CEO FIRST INTERIM REPORT AS AN INDEPENDENT BUSINESS Future perfect Rainbow Chicken strategy to grow as a sustainable, low-cost producer of scale, and deliver attractive through the cycle profitability returns and growth Green shoots but consumers still under pressure Commodity pri
Slide 7: Industry Matters
INDUSTRY MATTERS Rainbow supports the initiative by the South African The South African poultry industry requires greater and Government to include new protein products to the more urgent support from the Government to access existing consumer basket of products that don't attract export markets, pa
Slide 8: Financial Review
02 FINANCIAL REVIEW KERRY VAN DER MERWE | CFO RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024
Slide 9: Condensed Consolidated Income Statement
CONDENSED CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED 29 DECEMBER 2024 December December 2024 2023 R’000 R’000 Movement % Revenue 7 894 686 7 249 374 645 312 8.9 Revenue R7,9 billion, up 8.9% EBITDA¹ 581 131 265 400 315 731 119.0 EBITDA R581,1 million, up 119.0% EBITDA Margin 7.4% 3.7%
Slide 10: Rainbow Historical Performance
RAINBOW HISTORICAL PERFORMANCE EBITDA¹ AND EBITDA MARGIN % 700 000 8.0% 637 174 7.4% 600 000 581 131 7.0% 6.0% 500 000 371 774 H2 2024 5.0% 400 000 336 211 4.4% 4.0% 300 000 3.0% 200 000 3.0% 2.0% 265 400 100 000 H1 2024 38 644 1.0% 15 059 0 # 0.0% 0.1% 0.3% 2021 * 2022 * 2023 * 2024 H12025 EBITDA¹
Slide 11: Results Summary: EBITDA (R'000)
RESULTS SUMMARY: EBITDA (R’000) EBITDA¹ MOVEMENT DECEMBER 2023 TO DECEMBER 2024 800 000 700 000 33 807 (177 054) 600 000 184 426 500 000 36 011 400 000 220 575 300 000 581 131 200 000 (137 328) 155 294 265 400 100 000 0 EBITDA December 2023 Front-end Feed Costs KPIs Avian Influenza Loadshedding Ince
Slide 12: Condensed Consolidated Statement of Financial Position
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 29 DECEMBER 2024 December December 2024 2023 Movement Net working capital as a % of revenue R’000 R’000 % Non-Current Assets 2 244 894 2 116 570 6.1 Net Current Assets 1 917 574 2 211 674 (13.3) 33.2% 27.0% Current Assets (excluding cash)
Slide 13: Condensed Consolidated Cash Flow Statement (R'000)
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (R’000) FOR THE SIX MONTHS ENDED 29 DECEMBER 2024 1 200 458 854 970 838 1 000 800 79 101 651 948 600 26 943 (196 250)² (17 323) (2 860) (42 169) 400 200 12 594 0 Opening cash EBITDA adjusted Net working Replacement Expansion capital Tax paid Net interestNet
Slide 14: Capital Investment
CAPITAL INVESTMENT FOR THE SIX MONTHS ENDED 29 DECEMBER 2024 December December 2024 2023 Movement R’000 R’000 % Depreciation, amortisation and impairment 165 318 153 185 7.9 Property, plant, equipment, intangible assets and investment property 134 534 124 526 8.0 Right-of-use assets 30 784 28 659 7.
Slide 15: Operational Review: Chicken Division
OPERATIONAL REVIEW CHICKEN DIVISION Revenue R’000 EBITDA R’000 EBITDA Margin % 7 000 000 400 000 6% 6 955 815 350 000 362 419 5% 5.2% 300 000 4% 250 000 6 500 000 200 000 3% 6 438 361 150 000 2% 100 000 1.7% 110 588 1% 50 000 6 000 000 0 0% December 2024 December 2023 December 2024 December 2023 Dec
Slide 16: Operational Review: Animal Feed Division
OPERATIONAL REVIEW | CONTINUED ANIMAL FEED DIVISION Revenue R’000 EBITDA R’000 EBITDA Margin % 3 650 000 250 000 7% 6% 3 626 808 200 000 3 600 000 211 764 5.8% 5% 150 000 4% 3 550 000 138 760 3.9% 3 541 940 100 000 3% 3 500 000 2% 50 000 1% 3 450 000 0 0% December 2024 December 2023 December 2024 De
Slide 17: Operational Review: Waste-to-Value Division
OPERATIONAL REVIEW | CONTINUED WASTE-TO-VALUE DIVISION Revenue R’000 EBITDA R’000 EBITDA Margin % 58 000 25 000 45% 40% 56 000 56 641 22 962 20 000 35% 40.5% 54 000 30% 33.3% 52 000 15 000 16 183 25% 50 000 20% 10 000 15% 48 000 48 634 5 000 10% 46 000 5% 44 000 0 0% December 2024 December 2023 Dece
Slide 18: Summary of Financial Performance
SUMMARY OF FINANCIAL PERFORMANCE FOR THE SIX MONTHS ENDED 29 DECEMBER 2024 Pleasing results for the first six months of trading Continued focus on liquidity, working capital as a standalone business and cash management Management will prioritise investment No interim dividend declared given that we
Slide 19: Operational Review
03 OPERATIONAL REVIEW WOUTER DE WET | COO RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024
Slide 20: Maize Prices
MAIZE PRICES SAFEX yellow maize price (R/ton) 6 000 5 000 4 000 • Maize – a key input of feed cost • Trading at levels slightly below the 3 000 record highs • Local and international weather outlook – a key driver of price 2 000 volatility 2020 2021 2022 2023 2024 2025 SALIENT FEATURES FINANCIAL OPE
Slide 21: Soyabean Meal Prices
SOYABEAN MEAL PRICES CBOT (US$/ton) 600 500 400 • Soybean meal prices have trended lower 300 • Prices at historically low levels in Dollar terms but impacted by Rand/US Dollar volatility 200 • Local and international weather 2020 2021 2022 2023 2024 2025 outlook remains a concern CBOT – Chicago Boar
Slide 22: Currency
CURRENCY Rand/US Dollar exchange rate 20 19 USD • A high of R19.20 and a low of R17.10 vs the US Dollar for the 18 6-month reporting period • The exchange rate has a direct (CBOT) and an indirect (SAFEX IMPORT PARITY) impact on total 17 feed costs Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Slide 23: Feed Sales Mix vs PY
FEED SALES MIX vs PY Sales mix – H12024 Sales mix – H12025 9% 9% 17% 18% 447 371 tons 475 164 tons Volume increase = 6% 74% 73% Internal Sales External Poultry Other SALIENT FEATURES FINANCIAL OPERATIONAL OPERATIONAL PROSPECTS STRATEGIC REVIEW REVIEW REVIEW REVIEW RAINBOW CHICKEN LIMITED INTERIM RES
Slide 24: Chicken Category Sales Mix vs PY
CHICKEN CATEGORY SALES MIX vs PY Sales mix – H12024 Sales mix – H12025 8% 8% 25% 13% 14% 28% 174 366 tons 193 825 tons Volume increase 20% = 11% 20% 34% 30% IQF Mixed portions Prime Frozen Fresh Secondary & Tertiary Further Processed SALIENT FEATURES FINANCIAL OPERATIONAL OPERATIONAL PROSPECTS STRAT
Slide 25: Chicken Channel Sales Mix vs PY
CHICKEN CHANNEL SALES MIX vs PY Channel mix – H12024 Channel mix – H12025 8% 8% 30% 36% 174 366 tons 193 825 tons 56% Volume increase = 11% 62% RWS QSR HORECA SALIENT FEATURES FINANCIAL OPERATIONAL OPERATIONAL PROSPECTS STRATEGIC REVIEW REVIEW REVIEW REVIEW RAINBOW CHICKEN LIMITED INTERIM RESULTS DE
Slide 26: Agricultural KPI's
AGRICULTURAL KPI’S 120% 112% 110% 110% 108% 105% 106% 106% 103% 102% 103% 103% 99% 99% 100% 100% 96% 95% 95% 94% 97% 90% 90% 86% 83% 80% 2021 2022 2023 2024 2025 YTD Feed Conversion Mortality Performance Efficiency Factor Hatchability Average Daily Gain SALIENT FEATURES FINANCIAL OPERATIONAL OPERATI
Slide 27: Operational Review: Waste-to-Value Division
OPERATIONAL REVIEW WASTE-TO-VALUE DIVISION The Worcester plant is operationally outperforming Operational issues at the Rustenburg plant are having an on the original design specification and therefore, key to impact on profitability and are being closely monitored Rainbow’s sustainability initiativ
Slide 28: Prospects
04 PROSPECTS MARTHINUS STANDER | CEO RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024
Slide 29: Outlook
OUTLOOK CHICKEN PEOPLE DOING CHICKEN THINGS The goal is to deliver exceptional Rainbow’s focus remains on value through innovative products Reduction of costs remains advancing the “Brilliant Basics” and a product mix that responds a priority, especially where strategy for the remainder of to market
Slide 30: Thank You
RAINBOW CHICKEN LIMITED THANK YOU
Slide 31: Appendix
APPENDIX RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024
Slide 32: Company Profile: Rainbow in Context
COMPANY PROFILE RAINBOW IN CONTEXT CONSUMER MEDIA & SOCIAL FINANCIAL PRODUCTS HEALTHCARE INFRASTRUCTURE INDUSTRIAL IMPACT OTHER SERVICES INVESTMENTS SALIENT FEATURES FINANCIAL OPERATIONAL PROSPECTS STRATEGIC REVIEW REVIEW REVIEW RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 32
Slide 33: Company Profile: Post Un-bundling Group Structure
COMPANY PROFILE RAINBOW POST UN-BUNDLING GROUP STRUCTURE SALIENT FEATURES FINANCIAL OPERATIONAL PROSPECTS STRATEGIC REVIEW REVIEW REVIEW RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 33
Slide 34: Company Profile: One of South Africa's Largest Chicken Processors
COMPANY PROFILE ONE OF SOUTH AFRICA’S LARGEST PROCESSORS AND MARKETERS OF CHICKEN LIMPOPO MPUMALANGA 9 000 174 1 288 8 NORTH WEST GAUTENG PERMANENT AND FARMS HOUSES HATCHERIES TEMPORARY EMPLOYEES FREE STATE X2 NORTHERN CAPE KWA ZULU-NATAL 3 2 6 EASTERN CAPE PRIMARY PROCESSING ANIMAL FEED PROCESSING
Slide 35: Company Profile: Rainbow Values
COMPANY PROFILE RAINBOW VALUES SALIENT FEATURES FINANCIAL OPERATIONAL PROSPECTS STRATEGIC REVIEW REVIEW REVIEW RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 35
Slide 36: Company Profile: Animal Feed Brands
COMPANY PROFILE ANIMAL FEED BRANDS SALIENT FEATURES FINANCIAL OPERATIONAL PROSPECTS STRATEGIC REVIEW REVIEW REVIEW RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 36
Slide 37: Company Profile: Chicken Brands
COMPANY PROFILE CHICKEN BRANDS SALIENT FEATURES FINANCIAL OPERATIONAL PROSPECTS STRATEGIC REVIEW REVIEW REVIEW RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 37
Slide 38: Company Profile: Chicken Channels in Which We Operate
COMPANY PROFILE CHICKEN CHANNELS IN WHICH WE OPERATE SALIENT FEATURES FINANCIAL OPERATIONAL PROSPECTS STRATEGIC REVIEW REVIEW REVIEW RAINBOW CHICKEN LIMITED INTERIM RESULTS DECEMBER 2024 38