AGENDA 1. WELCOME AND INTRODUCTION PEARSON GOWERO 2. TRADING - PowerPoint PPT Presentation

AGENDA 1. WELCOME AND INTRODUCTION PEARSON GOWERO 2. TRADING REVIEW PEARSON GOWERO 3. FINANCIALS MATTS VALELA 4. DISCUSSION/QUESTIONS ALL 5. REFRESHMENTS ALL

VOLUME BEVERAGE CATEGORY • Declined by 8% LAGER BEER • SBs declined by 6% SOFT DRINKS • Declined by 3% SORGHUM BEER

TRADING ENVIRONMENT 1. Underperforming economy – slump in commodity prices and poor agricultural output. 2. Cash shortages – impact on discretionary spending. Low consumer confidence. 3. Liquidity challenges – customer cash/debtors cycles. 4. Job losses and the inability of the economy to generate new jobs. 5. Strong US Dollar – increase in imports from regional markets as local products become more expensive. 6. Delays or inability to meet wage/salary payments by local authorities, parastatals, industry and central government. 7. Policy risk – discord in policy implementation discouraging FDI.

VOLUME PERFORMANCE SUMMARY Category Actual % Change Volume on Prior 000hl Year 1. BEVERAGES (HLS 000) 1.1 Clear Beer 1 307 (8) 1.2 Sorghum Beer 3 587 (3) 1.3 Sparkling Beverages 1 385 (6) 1.4 Alternative Beverages 190 (2) Total Excluding Associates 6 469 (5) 2. Malt Tonnage 24 391 11

QUARTERLY VOLUME & REVENUE PERFORMANCE 2 000 $180 1 726 1 800 1 639 1 578 1 526 1 600 $173 $160 1 400 Gross Sales $million $159 Volume Hl '000 1 200 $150 1 000 $140 $143 800 600 $120 400 200 0 $100 Apr-Jun Jul-Sep Oct-Dec Jan-Mar Volume Gross Sales

LAGER BEER VOLUME & REVENUE PERFORMANCE LAGER BEER FULL YEAR VOLUME PERFORMANCE F11 TO F16 2 500 $400 $352 $326 $350 $316 2 000 $278 $300 1 981 2 060 Gross sales $million $235 Volume Hl '000 $250 1 697 1 500 1 414 $200 1 307 1 000 $150 $100 500 $50 0 $0 F12 F13 F14 F15 F16 Volume Gross Sales

TRADING REVIEW- LAGER BEER MIX HLs ‘000 1,600 1,400 26% 1,200 27% 1,000 Premium Main Stream 800 66% Economy 59% 600 400 200 14% 8% - F15 F16

LAGER BEER • Increase in parallel imports. • Market shares holding. • Growth in value brands. • Competition from other forms of alcohol increased. • Leveraged association with SABMiller and introduced a number of new products. It all comes together with a CASTLE

SPARKLING BEVERAGES VOLUME & REVENUE PERFORMANCE $231 1 800 $250 $225 $204 1 600 $202 1 615 $183 $200 1 589 1 400 1 480 Gross sales $million 1 200 1 472 Volume Hl '000 1 385 $150 1 000 800 $100 600 400 $50 200 $0 0 F12 F13 F14 F15 F16 Volume Gross Sales

TRADING REVIEW- SPARKLING BEVERAGES MIX HLs ‘000 1,600 1,400 40% 42% 1,200 1,000 Convenience pack 800 RGB 600 60% 58% 400 200 - F15 F16

SPARKLING BEVERAGES • Growth in value packs (2L PET) and 1L returnable glass bottle pushed volume away from higher margin packs. • Higher demand in December/January driven by heat wave. • Slow down in imports of value brands following duty increases. • Parallel imports from Botswana and Zambia benefitting from trade agreements (lower duties) and stronger USD. • Competition largely on flavours as brand Coke remains dominant. • Leveraging TCCC franchise arrangements to engage competition.

SORGHUM BEER VOLUME & REVENUE PERFORMANCE 4 000 $250 3 716 3 587 3 442 3 354 3 500 3 080 $200 3 000 Gross Sales $million $193 $176 Volume Hl '000 2 500 $150 $146 2 000 $118 $100 1 500 $103 1 000 $50 500 0 $0 F12 F13 F14 F15 F16 Volume Gross Sales

TRADING REVIEW- SORGHUM BEER MIX HLs ‘000 4,000 3,500 29% 56% 3,000 2,500 Chibuku Super 2,000 Chibuku 1,500 44% 71% 1,000 500 - F15 F16

SORGHUM BEER • Additional Chibuku Super capacity commissioned in October at Fairbridge Bulawayo. • Recovery in standard Chibuku volume following price review. • Gain in value and market share driven by Chibuku Super. • Chibuku products offering an accessible and affordable entry into commercial alcohol.

BEVERAGE VOLUME CONTRIBUTION F16 F15 3% 3% 20% 20% 22% 21% Lagers Lagers Sorghum Sorghum SBs 55% SBs 56% Maheu Maheu

VOLUME CONTRIBUTION BEER CATEGORY F15 F16 28% 27% Lagers Lagers 72% 73% Sorghum Sorghum

UPDATE ON ASSOCIATES AFDIS • Soft Volume • Affordability challenges SCHWEPPES ZIMBABWE LIMITED • Volume holding • Volume and revenue pressure – new growth areas being explored while sorting out supply chain bottlenecks • Improvement in financial performance • Beitbridge Juice resumed supplies of juice concentrates to bottlers • Launch of Bonaqua water brand at competitive prices NAMPAK ZIMBABWE • Listed entity has reported steady increase in earnings in their half year results to March 2016

AGENDA 1. FINANCIAL HIGHLIGHTS 2. FINANCIAL STATEMENTS

VOLUME PERFORMANCE SUMMARY Category Actual % Growth Volume on Prior 000hl Year 1. BEVERAGES (HLS 000) 1.1 Clear Beer 1 307 (8) 1.2 Sorghum Beer 3 587 (3) 1.3 Sparkling 1 385 (6) Beverages 190 (2) 1.4 Alternative Beverages Total Excluding Associates 6 469 (5) 2. Malt Tonnage 24 391 11

GROSS SALES • Down 15% to $235 million LAGER BEER • SBs down 10% to $183 million SOFT DRINKS • Alt.Bev down 17% to $14 million • Up 10% to $193 million SORGHUM BEER

FINANCIAL HIGHLIGHTS REVENUE Declined by 7% to $538,2 million (Turnover - $633m) EBIT Down by 14% to $96,1 million OPERATING MARGIN % Down from 22,08% to 20%

FINANCIAL HIGHLIGHTS Cont…. EBITDA Down by 10% to $129 million ATTRIBUTABLE INCOME Declined by 13% to $80,1 million EARNINGS PER SHARE Decreased by 13% to US6,49 cents DIVIDEND PER SHARE DIVIDEND PER SHARE Up 3% on prior year Interim dividend paid per share- US 1,40 cents Final dividend proposed per share- US 2,35 cents Special Dividend Special dividend proposed per share – US 0,95 cents

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD MARCH 2016 MARCH 2015 US$000’s US$000’s REVENUE 538 198 576 552 Operating income 96 072 111 136 Net finance expense 5 895 7 362 Share of associates profit 3 944 3 265 PROFIT BEFORE TAX 105 911 121 763 Taxation (25 822) (29 809) PROFIT FOR THE YEAR- CONTINUING 80 089 91 954 OPERATIONS Profit for the year from discontinued operations - 846 TOTAL COMPREHENSIVE INCOME FOR THE 80 089 92 800 YEAR

ANALYSIS OF ATTRIBUTABLE INCOME 2016 2015 US$000’s US$000’s Profit for the half year from operations attributable to: Owners of the parent 80 089 91 943 Non-controlling interests - 857 80 089 92 800

EARNINGS PER SHARE MARCH MARCH % 2016 2015 Change Normal EPS (from Continuing 6,49 7,44 (13) operations) – Cents Fully Diluted EPS (from 6,48 7,40 (12) Continuing operations) Cents Dividend per share - Cents 4,70 3,65 29

SEGMENT OPERATING INCOME MARCH MARCH MARCH 2016 2016 2015 US$’ 000 US$’ 000 US$’ 000 25 575 22 525 LAGER BEER 25 575 28 136 39 108 87 208 SPARKLING BEVERAGES 8 864 22 525 32 583 96 072 SORGHUM BEER 39 108 41 277 TOTAL REPORTABLE SEGMENTS 87 208 101 996 ALL OTHER SEGMENTS 8 864 9 140 TOTAL OPERATING INCOME 96 072 111 136

STATEMENT OF FINANCIAL POSITION MARCH 2016 2015 ASSETS US$000’s US$000’s Non-current assets Property, plant and equipment 345 332 341 099 Investments, loans and trademarks 54 776 45 469 TOTAL NON-CURRENT ASSETS 400 108 386 568 CURRENT ASSETS Inventories 86 431 98 262 Trade and other receivables 43 683 45 224 Cash and cash equivalents 166 016 133 611 TOTAL CURRENT ASSETS 296 130 277 097 TOTAL ASSETS 696 238 663 665

STATEMENT OF FINANCIAL POSITION MARCH cont… 2016 2015 EQUITY AND LIABILITIES US$000’s US$000’s Share Capital 12 310 12 366 Share Premium 33 074 32 234 Reserves 5 985 4 531 Retained Earnings 436 530 407 514 Non-controlling Interests - - Shareholder’s equity 487 899 456 645 Long- term borrowings 65 000 70 000 Deferred taxation 48 833 41 780 113 833 111 780 CURRENT LIABILITIES Short term borrowings - - Interest free liabilities 94 506 95 240 TOTAL CURRENT LIABILITIES 94 506 95 240 TOTAL EQUITY AND LIABILITES 696 238 663 665

CASH FLOW 2016 2015 US$000’s US$000’s Cash flow from operating 137 463 131 690 activities Net cash invested (49 426) (41 908) Net funding 101 016 63 611

SHARE CAPITAL MOVEMENTS Shares in Issue as at 31 March 2015 1 242 568 675 Share Options Exercised 1 745 300 Shares in Issue as at 31 March 2016 1 244 313 975

OUTLOOK 1. Trading conditions to remain difficult. 2. Business survival strategies to remain a priority. 3. Chibuku Super capacity increase. New plants to be commissioned in Masvingo and Kwekwe by September 2016. 4. Target profitability, cash generation and dividend payout. 5. Optimise volume and spend on our products via innovative go to market strategies. 6. People focus; to retain and refresh skills. 7. Transactional difficulties due to cash shortages pause a risk. 8. Perceived policy risk to remain.

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