Avi Limited Class Y · JSE:AVI

Avi Limited Class Y — Investor Presentation (June 2005)

39 slides from Avi Limited Class Y's investor presentation, June 2005

  1. Slide 1: Convenience Foods Category

    raouow Op SOUTH arRican NATIONAL BRANDS LIMITED CONVENIENCE FOODS CATEGORY

  2. Slide 2: Agenda

    Agenda • Convenience food market • Biscuit market insights • Strategy • Innovation • Operations - Westmead

  3. Slide 3: Convenience food market

    rrovoir Of SOUTH AFRICAN NN NATIONAL BRANDS LIMITED Convenience food market y q “€ Savoury snack COW’ pm

  4. Slide 4: What is Convenience Food?

    What is Convenience Food? Not: Definition: Needing preparation Light eat solutions that require limited Warm or no preparation, consumed by snacks anyone, anywhere, anytime, anyhow. Fast foods The Biscuit Category has been redefined as the Cooked meals Convenience Foods Category

  5. Slide 5: Convenience Foods consists of several categories showing strong growth

    Convenience Foods consists of several categories showing strong growth over the past 4 years 2003 Impulse Snacks Market = R14 961 bn 5000 4000 3000 2001 2002 2000 2003 1000 0 ps r m ts g um n e ps n its ga rs at or Yo ea ea lle i hi u Ch Su l G Ba pc co sc Pe P cr c k Po z/ in o Bi er e- gy et Ch Dr

  6. Slide 6: Biscuit market insights

    rrovoir Of SOUTH AFRICAN NN NATIONAL BRANDS LIMITED Biscuit market insights y q “€ Savoury snack COW’ pm

  7. Slide 7: Strong sales growth for biscuit category in retail sector

    Strong sales growth for biscuit category in retail sector 1,600,000 1,200,000 800,000 Sales value Rands'000 400,000 - 2003 2004 2005 Sales value 1170006 1106190 1389456 Rands'000 Source: Nielsen Feb/ March 2005 12mm Average

  8. Slide 8: Positive biscuit category volume trend in retail sector

    Positive biscuit category volume trend in retail sector driven by affordable biscuits 50,000 40,000 30,000 Tons 20,000 10,000 0 2003 2004 2005 Source: Nielsen Feb/ March 2005 12mm Average

  9. Slide 9: NBL remains dominant player in retail for total biscuits

    NBL remains dominant player in retail for total biscuits 0.0% 24.2% NBL Own Brands Tiffany Kwality 5.2% All Others 58.5% 5.8% Nabisco 6.3% Source: Nielsen SA

  10. Slide 10: Convenience food business split

    Convenience food business split 1% 2% 2% 2% 1% 6% SA Market 1% Rest of Africa East Africa West & Central Namibia Botswana 85% Zambia Other

  11. Slide 11: NBL brand and segment contributions

    NBL brand and segment contributions Sweet segment Brand splits 81% 19% 30.0% Savoury segment Sweet Brand splits Savoury 70.0% 100%

  12. Slide 12: Bakers Brands

    Bakers Brands ( based on average sales ) 18 Sku’s in total Choice 21.9% 23.0% Tennis Eet-Sum-Mor Blue Label 7.3% Romany Creams 16.7% 9.0% Red Label 10.4% 11.8% Others

  13. Slide 13: Baumann's Brands

    Baumann’s Brands ( based on average sales ) 7 Sku’s in total 8.9% Topper 9.4% Lemon Creams 10.3% 46.3% Match Tanner Marie 11.9% 13.2% Others

  14. Slide 14: Pyotts Brands

    Pyotts Brands ( based on average sales) 13 Sku’s in total Pro-Vita 19.8% 20.8% Mini Cheddars VitaSnack 6.4% Salticrax Snacktime 7.3% 15.1% Cream Crackers 7.7% 10.5% 12.4% Kips Others

  15. Slide 15: Strategy

    rrovoir Of SOUTH AFRICAN NN NATIONAL BRANDS LIMITED Strategy 7, Ny “€ Savoury snack COW’ EAN

  16. Slide 16: Our Mission

    Our Mission “Deliver Affordable, Fun Snacks for urban Sub-Saharan Africa” …make every urban African smile every day….

  17. Slide 17: Strategic Themes

    Strategic Themes Grow Core Innovation Address Establish Develop Business Affordability Route to People Market Continued focus Innovation will Increase our SA We aim to Our people will on delivering drive share share of market improve be recognized meaningful growth in the in the LSM 4 – 7 accessibil

  18. Slide 18: Innovation

    rrovoir Of SOUTH AFRICAN NN NATIONAL BRANDS LIMITED Innovation 7, Ny “€ Savoury snack COW’ EAN

  19. Slide 19: Innovation

    Innovation We will focus on satisfying consumer needs for indulgent and healthier snacking options Indulgence Healthier snacking solutions

  20. Slide 20: Rate of Innovation (% of turnover)

    Rate of Innovation (% of turnover) 30 20 20 13.6 10.2 10 0 F03 FO4 Target

  21. Slide 21: 'On the go' innovation from Pyotts Pro-Vita

    ‘On the go’ innovation from Pyotts Pro-Vita

  22. Slide 22: Innovation in the muesli, health & energy bar segment

    Innovation in the muesli, health & energy bar segment

  23. Slide 23: Design & flavour innovation

    oo NATIONAL BRANDS LIMITED Design & flavour innovation Romany(reams sd Romany(reams CRUNCH pm 1 A YE x Savoury snack CON®™

  24. Slide 24: Bakers Magic for Kids!

    NATIONAL BRANDS LIMITED ~ © raspberry jam & cream biscuits | 7 S € Savoury snack CON

  25. Slide 25: Bakers promotional activity

    Bakers promotional activity

  26. Slide 26: Operations - Westmead

    rrovoir Of SOUTH AFRICAN NN NATIONAL BRANDS LIMITED Operations - Westmead y q “€ Savoury snack COW’ pm

  27. Slide 27: Westmead Biscuit Factory Background

    Westmead Biscuit Factory Background • Baumann’s Factory in Durban established 1852 manufacturing ships biscuits • New Westmead Factory opened January 1973 – 6 travelling ovens – 420 permanent employees – 400 seasonal employees

  28. Slide 28: Westmead is a versatile manufacturing site

    Westmead is a versatile manufacturing site Plain Biscuits Bakers BettaSnack,Bakers Nutticrust, Bakers Iced Zoo, Pyotts Crackerbread Creamed Bakers Red Label Lemon Creams, Bakers BN, Bakers Royal Creams, Bakers Romany Creams, Bakers Wafers, Bakers Choc Kits, Baumanns Lemon Creams, Baumanns Topper Bau

  29. Slide 29: Large volumes produced at Westmead have consistently been increasing

    Large volumes produced at the Westmead manufacturing site have consistently been increasing 16000 14000 Westmead Tons 12000 F02 F03 F04

  30. Slide 30: SKU reduction with tonnage growth has driven down cost

    SKU reduction together with consistent tonnage growth has driven down cost 250 18% 16% 200 14% 12% 150 10% Number of Sku's 8% Turnover growth % year on year 100 6% 4% 50 2% 0% 0 -2% F97 F98 F99 F00 F01 F02 F03 F04

  31. Slide 31: Global procurement strategy has reduced input costs

    Global procurement strategy have significantly contributed to reduced input costs 0.00% -1.00% -2.00% -3.00% F04 vs F03 -4.00% F05 YTD Dec vs -5.00% F04 -6.00% -7.00% -8.00%

  32. Slide 32: Plant utilisation improved with available capacity

    Plant utilisation improved with available capacity to accommodate future growth 30000 25000 20000 Westmead Tons 15000 Westmead capacity 10000 5000 0 F02 F03 F04

  33. Slide 33: Variable costs contained below inflation

    Variable costs contained below inflation 140 124.8 117.7 120 108.0 100.0 100 80 Variable Factory 60 Cost 108.6 114.0 Inflation 100.0 102.5 40 20 0 FO2 FO3 FO4 FO5 Dec YTD

  34. Slide 34: Plant efficiency has improved significantly

    Plant efficiency has improved significantly 93 92 91 90 89 Target 88 Efficiencies 87 86 85 84 F2002 F2003 F2004

  35. Slide 35: Service levels continuously improving vs target

    Service levels continuously improving vs target 99 98 97 96 Target Service levels (%) 95 94 93 92 F2002 F2003 F2004 F2005 YTD DEC

  36. Slide 36: Capex increased significantly (R millions)

    Capex increased significantly (R millions) 25000 20000 15000 Isando Westmead 10000 5000 0 F02 F03 F04 F05(YTD)

  37. Slide 37: Recent Capex Projects

    Recent Capex Projects 2003 Baumann’s Topper R11.5 million 2004 Establish jam R15.5 million capability 2005 Notta bars R1.8 million

  38. Slide 38: International standards

    International standards • ISO 9001 (2003) • HACCP (2003) • AIB (2003) • ISO 14001 (2004) Supports our International expansion plan

  39. Slide 39: Factory tour – process flow

    Factory tour – process flow RAW MATERIALS WEIGHING OFF MIXING STORE BAKING FORMING - LPG ROTARY CUTTING CREAMING - ROTARY MOULDING - PARAFFIN - ELECTRICITY - EXTRUDE & CUT PACKAGING WRAPPING MATERIALS & DISPATCH STORE PACKING

AVI — Investor Presentation (June 2005) on 6ix