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 18% LAGER SPARKLING • Declined by 2% BEVERAGES • Grew by 12% SORGHUM BEER ALTERNATIVE • Grew by 33% BEVERAGES (MAHEU) • Grew by 11% PLASTICS

TRADING REVIEW - ALL BEVERAGES Population 1,152,520 PCC Lagers -9% 7 SBs 9% 6 Population 1,501,656 PCC Sorghum 5% 19 Lagers -5% 11 Population 2,123,132 PCC SBs 3% 10 Lagers -13% 32 Sorghum 2% 37 SBs -4% 32 Sorghum 37% 39 Population 1,344,955 PCC Lagers -9% 6 SBs 0% 6 Sorghum 10% 16 Population 749,017 PCC Population 1,614,941 PCC Lagers -13% 4 Lagers -14% 9 Population 1,752,698 PCC SBs 6% 5 SBs 2% 10 Lagers -10% 7 Sorghum 3% 13 Sorghum 1% 28 SBs Sorghum 30% 21 Population 683,893 PCC Lagers -26% 4 Population 653,337 PCC SBs -9% 6 Population 1,485,090 PCC Lagers -22% 25 Sorghum 3% 9 Lagers -11% 9 SBs -1% 28 Total Beverages Volume SBs 0% 9 Sorghum 22% 17 Sorghum -4% 31 F14 F13 Growth 6,904 6,887 0%

VOLUME REVIEW Marked slowdown in consumer spend in last half. Full year volume flat Worsening economic fundamentals. Premium category contribution up. Retail pricing for beer still an issue. Consumer switch to affordable offerings.

LAGER BEER FIVE YEAR VOLUME PERFORMANCE HLs ‘000 2 500 2 060 1 981 1 697 1 608 2 000 1 148 1 500 1 000 500 0 F10 F11 F12 F13 F14

TRADING REVIEW - LAGER BEER F14/F15 Province Volume PCC Mashonaland West -10% 11 Matabeleland North -14% 4 Mashonaland East -15% 6 Masvingo Province -16% 9 Harare -16% 32 Manicaland -17% 8 Midlands Province -17% 9 Mashonaland Central -17% 7 Bulawayo -23% 25 Matabeleland South -28% 4 Total Lagers -18% 13 � Resource deployment follows the per capita map. � Parallel imports in border areas. (same brands different source)

TRADING REVIEW - LAGER BEER MIX HLs ‘000 2500 19% 2000 Premium 21% 1500 Main Stream 77% 1000 72% Economy 500 4% 7% 0 F13 F14

SPARKLING BEVERAGES FIVE YEAR VOLUME PERFORMANCE HLs ‘000 2 000 1 589 1 615 1 480 1 175 1 500 770 1 000 500 0 F10 F11 F12 F13 F14

TRADING REVIEW - SPARKLING BEVERAGES F14/F15 Province Volume PCC Mashonaland Central 9% 7 Matabeleland North 6% 4 Mashonaland West 3% 10 Midlands Province 2% 11 Masvingo Province 0% 9 Mashonaland East 0% 6 Bulawayo -1% 28 Harare -4% 32 Matabeleland South -9% 6 Total SBs -1% 12 � Demand held for most of the year except 4 th quarter. � Harare had an acute water problem leading to stock outs in 4 th quarter.

TRADING REVIEW - SPARKLING BEVERAGES MIX HLs ‘000 2000 1500 32% 40% Convenience… RGB 1000 68% 60% 500 0 F13 F14

SORGHUM BEER FIVE YEAR VOLUME PERFORMANCE HLs ‘000 3 442 3 354 3 700 3 114 3 080 2 908 3 200 2 700 2 200 1 700 1 200 F10 F11 F12 F13 F14

TRADING REVIEW – SORGHUM BEER F14/F15 Province Volume PCC Harare 37% 40 Manicaland 30% 21 Bulawayo 22% 17 Mashonaland East 10% 16 Mashonaland Central 5% 19 Matabeleland North 3% 13 Matabeleland South 3% 9 Mashonaland West 2% 37 Midlands Province 1% 28 Masvingo Province -4% 31 Total Sorghum 12% 26 � Chibuku spurred by Super. � Scud holding shore and growing modestly � Further investment made for Chibuku Super.

TRADING REVIEW - SORGHUM BEER MIX HLs ‘000 4000 3000 Chibuku 90% 2000 100% Chibuku Super 1000 10% 0 F13 F14

MARKET SHARE Lager Beer Sorghum Beer Soft Drinks DELTA BEVERAGES 99 84 98 � Focus was on market retention and building brand loyalty. � Lager share largely driven by mainstream � Sorghum beer demand reignited by Chibuku Super

PLASTIC PACKAGING FIVE TONNAGE PERFORMANCE Tonnes 10 495 12 000 9 451 10 000 7 468 8 000 5 796 4 550 6 000 4 000 2 000 0 F10 F11 F12 F13 F14 � Tonnage driven by PET preforms for Sparkling Beverages.

OTHER HIGHLIGHTS 1. Implementation of new ERP System (SAP) enabling real-time processing of transactions 2. Optimisation of RTM to improve customer service and production planning (pre- order) 3. Operational focus by beverage category extended to Lagers and SBs 4. Excise duty remains an impediment to volume growth 5. Supply chain challenges exacerbated by regulatory restrictions (quotas for sugar, ban on maize imports and other import controls

AGENDA FINANCIAL HIGHLIGHTS 1. 2. FINANCIAL STATEMENTS

VOLUME PERFORMANCE SUMMARY Category Actual Volume 000hl % Growth on Prior Year 1. BEVERAGES (HLS 000) 1.1 Clear Beer 1 696 (18) 1.2 Sorghum Beer 3 442 12 1.3 Sparkling Beverages 1 590 (2) 1.4 Maheu 175 33 Total Excluding Associates 6 903 0.25 2. Plastic Tonnages 10 495 11 3. Malt Tonnages 32 639 (10)

GROSS SALES • Down 10% to $316 million LAGER SPARKLING • Down 2% to $225 million BEVERAGES • Up 24% to $146 million CHIBUKU ALTERNATIVE BEVERAGES • Up 35% to $15 million (MAHEU )

FINANCIAL HIGHLIGHTS REVENUE Declined by 1% to $625,5 million (Turnover - $733,8m) EBIT Down by 1% to $134,2 million OPERATING MARGIN % Up from 24.73% to 24.75%

FINANCIAL HIGHLIGHTS Cont… EBITDA Up by 2% to $165,2 million ATTRIBUTABLE INCOME Increased by 3% to $105,7 million EARNINGS PER SHARE Increased by 1% to 8,55 cents DIVIDEND PER SHARE Up 4% on prior year Interim dividend paid per share – 1,30 cents Final dividend proposed per share – 2,25 cents

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD MARCH 2014 MARCH 2013 US$000’s US$000’s REVENUE 625 517 631 276 Operating income 134 184 134 989 Net finance expense 3 763 (574) Share of associates profit 2 283 2 458 PROFIT BEFORE TAX 140 230 136 873 Taxation (33 037) (32 750) TOTAL COMPREHENSIVE INCOME 107 193 104 123

ANALYSIS OF ATTRIBUTABLE INCOME 2014 2013 US$000’s US$000’s Profit for the half year from operations attributable to: Owners of the parent 105 664 102 472 Non-controlling interests 1 529 1 651 107 193 104 123

EARNINGS PER SHARE MARCH 2014 MARCH 2013 From Operations Normal EPS – Cents 8,55 8,49 Fully Diluted EPS - Cents 8,49 8,42 Dividend per share - Cents 3,55 3,4

STATEMENT OF FINANCIAL POSITION 2014 2013 ASSETS US$000’s US$000’s Non-current assets Property, plant and equipment 353 209 319 241 Investments, loans and trademarks 35 228 30 598 TOTAL NON-CURRENT ASSETS 388 437 349 839 CURRENT ASSETS Inventories 100 153 93 012 Trade and other receivables 44 807 43 999 Cash and cash equivalents 86 489 75 088 TOTAL CURRENT ASSETS 231 449 212 099 TOTAL ASSETS 619 886 561 938

STATEMENT OF FINANCIAL POSITION Cont… 2014 2013 EQUITY AND LIABILITIES US$000’s US$000’s Share Capital 12 342 12 230 Share Premium 28 982 24 049 Reserves 336 974 276 921 Dividend Payable 27 772 27 270 Non-controlling Interests 8 309 6 780 Shareholder’s equity 414 379 347 250 Long- term borrowings - 60 000 Deferred taxation 35 769 30 740 35 769 90 740 CURRENT LIABILITIES Short term borrowings 71 293 18 605 Interest free liabilities 103 149 105 343 TOTAL CURRENT LIABILITIES 169 738 123 948 TOTAL EQUITY AND LIABILITES 619 886 561 938

CASH FLOW 2014 2013 US$000’s US$000’s Cash flow from operations 128 835 134 094 Net cash invested (67 653) (83 337) Net funding 15 196 (3 517)

SHARE CAPITAL MOVEMENTS Shares in Issue as at 31 March 2013 1 227 362 815 Share Options Exercised 14 201 900 1 241 564 715 Shares in Issue at 31 March 2014

ASSOCIATES SZL AFDIS Volumes up on prior year • Revenue up 6% to $100m • To localise production of ciders this • Challenge is to manage productivities year • and supply chain to protect margins Registering good growth on volume • Market share in cordials stable • and profitability Gains in juice drinks market share •

THANK YOU