Results Presentation YE December 2019 Macro Environment South - PowerPoint PPT Presentation

Results Presentation YE December 2019

Macro Environment South African Key Economical Indicators in a Nutshell GDP GDP Forecast Trade Balance January 2020 Q4/2019 January 2020 2020 -R1.9bn CPI +4.5% 1.2% -1.4% (was 1,4%) PPI +4.6 % 2021 2019 + R24.7bn Q3/2019 rev : -0.6% 1.6% December 2019 : 2019 GDP : 0.2% 2018 + R15.2bn CPI +4,0% | PPI +3.4% % Prime Interest Rate Unemployment Consumer Confidence Retail Trade Sales December 2019 Q4/2019 Q4/2019 January 2020 -7 -0.4% 9.75% 29.1% 2019 : +1.2% November 2019 : 10% Q3/2019 : -7 Q3/2019 : 29.1% November 2019 : +2.6%

* Retailers measure internal inflation by costing a basket of goods relative to the year before. They remain focused on investing in price to reduce shopper exposure to higher prices to try to maintain, and gain market share. As a result retailer’s prices are lower than CPI on food and non-alcoholic beverages. A good indication of the price war. Retail Internal Inflation Total Retailer Comparable Growth from Retailer / Division Financial Period Turnover Internal Price Growth Net stores Real Real Comp Growth Inflation Environment Growth Growth Shoprite FY2019 end Jun 2019 3.6% 0.1% 3.5% 1.6% 2.0% -1.5% Shoprite SA Supermarkets FY2018 end Jun 2018 4.9% 1.9% 3.0% 1.2% 3.7% 0.7% FY2019 end Sept 2019 6.4% 4.6% 1.8% 3.1% 3.3% 1.5% SPAR Retail Real Retail Turnover Growth Massmart FY2019 end Jun 2019 5.5% 3.6% 1.9% 2.7% 2.8% 0.9% Total turnover growth can be misleading in isolation. Real, comparable growth Massdiscounters FY2019 end Jun 2019 3.0% 0.7% 2.3% 0.8% 2.2% -0.1% is indicated stripping out internal FY2019 end Jun 2019 3.7% 1.9% 1.8% 2.9% 0.8% -1.0% Masswarehouse inflation* and the growth from new stores. Masscash FY2019 end Jun 2019 9.1% 8.2% 0.9% 3.6% 5.5% 4.6% Pick n Pay FY2019 end Feb 2018 7.1% 4.8% 2.3% -0.3% 7.4% 5.1% – – – FY2019 end Jun 2019 7.4% 5.2% 2.2% Pick n Pay South Africa – – – – – Woolworths Group FY2019 end Jun 2019 4.6% Woolworths Food FY2019 end Jun 2019 7.7% 5.4% 2.3% 1.8% 5.9% 3.6% Clicks Group FY2019 end Aug 2019 7.2% 6.4% 0.8% 1.2% 6.0% 5.2% Clicks Retail FY2019 end Aug 2019 9.7% 6.4% 3.3% 1.5% 8.2% 4.9% – – – DisChem Group FY2019 end Aug 2019 10% 1.2% 8.8% DisChem Retail FY2019 end Feb 2019 9.7% 3.4% 6.3% 1.2% 8.5% 2.2%

Highlights for the Year Headline Total Dividend Net Asset Value Revenue HEPS Earnings Per Share Per Share 28.8% 28.38% 28.4% 27.9% 10.4% R 7.1 B 51.3 CENTS 10.26 CENTS 314.0 CENTS R230.4M (2018: R5.5 B) (2018: 40.1 CENTS ) (2018: 7.96 CENTS) (2018: 284.3 CENTS) (2018: R179.4 M)

Highlights for the Group o New branding o All major operations produced good results o Increased our market share in the countries o Increased shareholding in Surapax and Array Marketing to 100% Appointed new CEO – D Lewis o o Healthy and strong balance sheet o Strong cash flow generated o Dividend increased

The CA&S Group specialises in the fast-moving consumer goods industry, delivering on- shelf availability to many of the world’s leading consumer brands. Services span warehousing, distribution, selling, merchandising, shopper marketing, Overview training and debtors administration. Bringing the businesses closer together the group embarked on a rebranding exercise in 2019 which has resulted in a new logo, corporate identity and collective manifesto of “the power of &”, developed collaboratively by the collective • Listed on Botswana Stock Exchange and 4 Africa Exchange in SA • Operate in 8 countries • Specialise in: • Distribution across Southern African • Warehousing, Transport & Logistics • Sales & Merchandising - South Africa & Southern Africa • Shopper Marketing, Brand Activation and Promotions • Specialist Training Services

New Group Branding : An enabling Platform At inception the group simply adopted the same name as the first business it acquired : CA Sales Botswana and with a slight logo adaptation became known as CA Sales Holdings. In time with further acquisitions in different terretories differentiating between one of the operating entities and the collective became problematic. The intention was to build an enabling platform and endorsed branding architecture so companies retained their overall equity , autonomy and entrepreneurial freedom but benefitted from the endorsement of the parent brand in terms of: o Enhanced operations & o Access to shared opportunity Creating a more intentional and meaningful brand framework will further foster collaboration and facilitate joint sales efforts across services and geographies presenting a more cohesive and consistent client offering. Enhanced client credibility and legitimacy will be forged over time as the new identity is applied and becomes a beacon around which the individual businesses can begin to build consistency of processes and work standards that enable enhanced alignment and ultimately client value.

Group Companies Overview CA Sales & Distribution Smithshine Enterprises PEO Promotions Kalahari Training Institute SMC Brands Marketing, Branding & Gift Distribution, Debtor Management, Distribution for frozen and Vocational Training Distribution, Sales & ambient goods – retail, Services. Shopper Promotions, Sales & Merchandising Specialist in Botswana Merchandising of Liquor Events & Digital in Botswana forecourts and bottom end Brands PacknStack Array Marketing Surapax Promexs Sales & Merchandising in Hardware Hardware Sales, merchandising and mutli-channels / categories Sales & Merchandising Sales & Merchandising expert promotional Services in Zambia A Wutow Whitakers Expo Africa Bull Red Distribution Logico Retail Development Solutions Brand Activation & Pop- Up’s Distribution, Sales & Sales & Merchandising Primary & Secondary Distribution Specialist strategic retail advisory Distribution, Sales & Merchandising, Debtors in Lesotho Promotions, Marketing, Events, Merchandising for ambient, chilled & frozen consultancy and industry Management Research & Digital Services goods. Sales & Merchandising recruitment services.

Service Structure Overview Warehousing & Distribution The Group’s excellent storage solutions and distribution network enables it to consistently deliver for its clients, giving them surety their products are safely stored, maintained and readily available for distribution through our unrivalled distribution network. Brand Activation Warehousing & Distribution Training & Promotions Sales & Namibia Eswatini Botswana, Eswatini, Lesotho, Mozambique, Namibia, Zambia, Zimbabwe, Botswana We specialise in training, Merchandising empowering & motivating Botswana, Eswatini, Botswana Namibia We partner with clients to grow Zimbabwe Botswana work forces to improve their brands by increasing their productivity. Practical market share and volume. We modules are tailored to Sales & Merchandising Zambia build on shelf visibility, South Africa customer’s needs and optimising brand positioning. include Sales & We implement category flows Retail Services Merchandising as well as and ensure sufficient stock is a menu of business, IT, Zimbabwe Namibia Eswatini on hand and readily available, Botswana, Eswatini, wellness and personal Lesotho, Namibia especially when there is development topics. We fluctuating demand. We assist also offer shopper brand in the maintenance of retailer promotions in and out of systems and influence sales store, bringing brands to Botswana Botswana Lesotho South Africa Zambia Botswana South Africa where we are able. life where it counts.

Footprint Overview Zambia o Expo Africa o Promexs Zambia Coverage Namibia o Wutow o Expo Africa Mozambique o Pns Our collective footprint with o SMC Brands a presence in all major Mozambique Zimbabwe centres in 8 countries. o Expo Africa Namibia Botswana o CA Sales & Distribution Zimbabwe Botswana o Expo Africa Local market and country o Bull Red Distribution o Kalahari Training Institute knowledge & understanding. o Expo Africa o PEO Promotions Customer relationships eSwatini eSwatini o SMC Brands combined with regional o Smithshine Enterprises o Expo Africa connectivity and shared o Logico Lesotho South Africa collective expertise give o SMC Brands o Array Marketing South Africa CA&S Group a competitive Lesotho o PnS advantage in the region. o Surapax o Expo Africa o Expo Africa o SMC Brands o Whitakers

Segmental Overview