Nampak 2012 Annual Results

Transcription

1 Nampak 2012 Annual Results November

2 Highlights cents 250 Headline Earnings per Share continuing operations

3 Highlights Rm 1,800 1,600 1,400 1,200 1, Operating Profit continuing operations 1,229 1,498 1,

4 Highlights cents 140 Dividends per Share

5 Highlights Rm Rest of Africa Trading Profit

6 Highlights % Trading Margin continuing operations

7 7 GROUP RESULTS

8 Group Income Statement Continuing operations Rm % Revenue Operating profit Net finance costs Income from investments Profit before tax Taxation Profit for the year from continuing operations Discontinued operations Non-controlling interest Attributable income HEPS continuing 200.8c 172.4c

9 Abnormal Items Rm 2012 Fair value of financial instruments 18 Retrenchment and restructuring 11 Impairment of goodwill, plant, property & investments 10 Net gain on revaluation of original interest in Glass 44 Other 2 TOTAL 3 9

10 Tax Rate (continuing) Rm 2012 Profit before tax Tax 446 Effective tax rate 27.2 Capital gains tax 3.2 Prior year adjustments 1.0 Joint venture interest revaluation 0.8 Angola tax losses 1.1 STC and withholding tax 2.4 Other 0.7 Standard tax rate

11 Abridged Balance Sheet Rm Non-current assets Bank balances, deposits and cash Current assets TOTAL ASSETS Total equity Loans and borrowings Retirement benefit obligations Current liabilities Other TOTAL EQUITY AND LIABILITIES

12 Group Condensed Cash Flow Rm Cash generated from operations before working capital Working capital changes 340 Cash generated from operations Net interest paid 154 Tax paid 417 Dividends /cash distributions paid 678 Capex Acquisition of business 978 Other 78 Cash outflow before financing activities Net borrowings raised and other 465 Net decrease in cash

13 Working Capital Movement Rm Inventories 532 Receivables 38 Payables 154 Total increase in working capital

14 Net Debt : Equity 60% 50% 40% 30% Acquisition of 50% Nampak Wiegand-Glass 20% 10% 0% Sep-09 Sep-10 Sep-11 Sep-12 14

15 Key Ratios RONA % ROE % Interest Cover X Net debt:ebitda X

16 16 OPERATIONAL REVIEW

17 Geographical Revenue 10% 9% 17% 73% South Africa Africa + exports UK 21% 70%

18 Rm 14,000 Revenue 12,000 10,000 8,000 6,000 4,000 including exports 2,000 0 South Africa Rest of Africa UK

19 Rm 1,400 Trading Profit and Margin 1,200 1, % 9.6% % 9.0% 7.4% 6.4% South Africa Rest of Africa UK Note: exports profits included in South Africa

20 South Africa: Metals & Glass Rm 6,000 4,000 Revenue Rm 1, Trading Profit Margin 13.4% 14.4% 2, H1 H H1 H Substantial growth in beverage can volumes but margin pressure Fish and fruit cans sales up Modest demand for aerosol, paint and other cans 100% of glass for 7 months Lower demand for returnable beer and FAB bottles 20

21 South Africa: Paper & Flexibles Rm 5,000 4,000 3,000 2,000 Revenue Rm Trading Profit Margin 4.0% 3.9% 1, H1 H H1 H included R28m trading profit for sold businesses Corrugated improved further Weaker demand in 2 nd half for flexibles Disappointing performance by cartons Good cement sack exports 21

22 South Africa: Plastics Rm Revenue Rm Trading Profit 2, Margin 11.9% 10.9% 2, ,500 1, H1 H H1 H Lower demand for milk and juice bottles margins under pressure Strong local demand for sorghum beer cartons and exports to Botswana Good demand for CSD PET bottles and associated closures Reduced sales of crates and drums lower margins 22

23 South Africa: Tissue Rm 2,000 Revenue Rm 150 Trading Profit Margin 6.8% 8.0% 1, , H1 H H1 H Marginal growth in volumes of toilet tissue Diaper volumes increased Fierce price competition across all products 23

24 Rest of Africa: Metals & Glass Rm Revenue Rm Trading Profit 1, Margin 8.5% 5.7% 1, H1 H H1 H Angola ran at full capacity and performed to expectations Nigeria affected by socio-political factors East Africa performed well on good demand for food cans and crowns 24

25 Rest of Africa: Paper & Flexibles Rm 1, Revenue Rm Trading Profit Margin 24.4% 12.2% 0 H1 H H1 H Strong demand for cigarette cartons in Nigeria Increased sales of paper sacks in Kenya Substantial growth of sorghum beer cartons in Zambia Moderate improvement by Malawi 25

26 United Kingdom: Plastics Rm Revenue Rm Trading Profit 2,000 1, Margin 7.4% 6.4% 1, H1 H H1 H Sales flat Good cost control Fresh milk price war Record-high polymer prices Excellent result in challenging circumstances 26

27 Summary of Results HEPS up 16.5% Dividend up 20% Trading margin improved Africa profit up 159% Debt and gearing under control RONA and ROE improved both now at 20% 27

28 STRATEGY and GROWTH OPPORTUNITIES South Africa Rest of Africa Conclusion 28

29 South Africa Focus and invest in our core operations Grow with our major customers and the South African economy 29

30 Investment in Beverage Cans Project >> Slim/Sleek - Rosslyn R37m 440ml - Springs R61m Aluminium conversion +R600m 30

31 2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul South Africa Beverage Cans Index

32 2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul Angola Beverage Cans Index

33 2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul Beer Cans Index

34 2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul Cider Cans Index

35 2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul RTD/Energy Cans Index

36 2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul Slimline Cans Index

37 2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul 440ml Cans Index

38 38 Investment in 440ml beverage cans

39 39 440ml Cans

40 40 New SAB Draught in a Can

41 41 New REDD S Cans

42 42 Brutal Fruit Cans

43 43 Premium Beer Brands

44 44 Hunter s Extreme Cans

45 45 Hunter s Dry and Hunter s Gold Cans

46 46 Liquifruit Sparkling Cans

47 47 Smirnoff Cans

48 48 KWV 3 Yr and Cola Cans

49 49 BOS Ice Tea Cans

50 50 330ml Slender Fuze & 440ml Play Cans

51 51 Roses Cans

52 52 EnerBev Cans

53 53 EnerBev Cans

54 Investment in Food and Diversified Cans Investment in printing modernisation R40m 54

55 55 Printed Cans

56 Aluminium Aerosol Can Line 6 56 Investment of R65 million for additional capacity

57 57 Aluminium Aerosol Cans

58 Two-Piece Food Can Line Investment of R75 million. 58

59 59 Key Food Can Brands

60 Investment in Glass : Furnace 2 Brands we package 60 Invested R400m in rebuild and additional capacity

61 61 Furnace 2 Brands we package

62 62 New Wide-Mouth Jars Brands we package

63 Spirits Bottles Brands we package 63

64 64 Beer and FABS Bottles Brands we package

65 65 Wine and Non-Alcoholic Drinks Bottles

66 7 Layer Film Extruder Commissioning in progress First in South Africa Enables multi layer barrier bags Investment of R30m 66

67 Pouch Machines and Spout Inserter 67 Investment of R10m

68 68 Re-sealable Chocolate Wrapping

69 Investment in Metal and Plastic Closures Wine Closure CSD Super-Shorty Closure 69

70 Rest of Africa Strategy Focus on sub-saharan Africa Export and then establish local manufacture Partner with multinationals long term contracts Broaden our product range 70

71 Manufacturing Exports Zimbabwe Rest of Africa Rm 2,500 2,000 1,500 1, Revenue 23% Group Revenue 71

72 Manufacturing RevenueTrend Rm 2,250 2,000 1,750 1,500 1,250 1,

73 Angola Nigeria Zambia Kenya Malawi Tanzania Manufacturing Revenue in Major Countries Rm

74 Rest of Africa: Trading Profit Rm

75 Nampak Products Manufactured in Africa Country Bev cans Food & other cans/ drums Crowns Cartons & Paper Labels Corrug ated Sacks Liquid Cartons Plastic Bottles & Jars Closures Angola X X X Crates Botswana X Kenya X X X X(fill) X X Malawi X X X Moz X Namibia X Nigeria X X X X(fill) X Swaziland X Tanzania X X X(fill) Zambia X X X X X X X X Zimbabwe X X X X X X(fill) X X X Ghana Uganda X (fill) X (fill) Ethiopia X X X 75 Existing : Proposed: X X 75

76 Angola and Mozambique Plastics acquisition X 2 nd can line X Closure line X Paper Sacks X Investment $120m 76 76

77 Nigeria Beverage cans X Can line expansions Closures X X X Investment $320m 77 77

78 East Africa Ethiopia Company X - plant upgrade X Crate plant for Coke X Uganda Rigid Plastics X Tanzania metal drums X Investment $15m 78 78

79 Southern Africa 2013 Zambia Liquid Carton Printer X PET jar line Zimbabwe crown line X X Investment $5m 79 79

80 Sorghum Beer Cartons & Fillers 2013 Ghana X Nigeria X Uganda X Mozambique X Investment $4m 80 80

81 81 NAMPAK PERFORMANCE

82 Nampak vs ALSI : 1999 to 2009 index ALSI Nampak

83 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 index Nampak vs ALSI : Since 2009 Nampak ALSI 83

84 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 cents Nampak Share Price 84

85 RONA %

86 ROE %

87 Trading Margin %

88 Headline Earnings per Share cents % +21% 172.4c +16.5% 200.8c c c

89 Dividends per Share cents % % +30% 108c 129.5c c c

90 90 OUTLOOK

91 Outlook Markets expected to remain challenging Many exciting opportunities especially in Africa Growth strategy is in place We expect a further improvement in performance in

92 92 THANK YOU