RESULTS PRESENTATION. Creating a Future, Enhancing Life

Transcription

1 RESULTS PRESENTATION Creating a Future, Enhancing Life

2 PRESENTATION AGENDA MILESTONES FOR 2017 Wessie van der Westhuizen VISION 2019 Wessie van der Westhuizen FINANCIAL RESULTS 2017 Graeme Mouton OUTLOOK Wessie van der Westhuizen QUESTIONS All 2

3 MILESTONES FOR

4 MILESTONES FOR 2017 Everyone purposefully producing breakthrough everywhere NBL maintained its strong market position despite a strained local economy 46% increase in beer volumes produced for South Africa 3% decrease in Namibian beer volumes 8% overall increase in volume growth 2% increase in export beer volumes 12% increase in revenue 13% increase in operating profit 4

5 EXPORT MARKETS PERFORMANCE UPDATE Focus markets* Botswana Tanzania Zambia Trading markets Swaziland Zimbabwe Lesotho St Helena Mozambique * Markets with high-growth potential and therefore earmarked for in-market presence and investment 5

6 SOUTH AFRICA UPDATE Increased volumes delivered to South Africa driven by additions to the SA portfolio and increased market share The Group s craft portfolio will be positioned within Heineken South Africa Soweto Gold now incorporated into Heineken South Africa Heineken South Africa announced its intention to acquire Stellenbosch-based craft brewery, Stellenbrau 6

7 MILESTONES FOR 2017 Amazing experiences, enduring impact Launched Tafel Lite as a lower-calorie alternative to Tafel Lager, with 27% less carbohydrates Introduced Code as a new mainstream soft drink, available in three flavours Relaunch of Camelthorn in Namibia and South Africa 7

8 MILESTONES FOR 2017 Amazing experiences, enduring impact Windhoek Lager, Windhoek Draught and Urbock won gold medals at the DLG Awards this was the 11th consecutive DLG gold medal won by Windhoek Lager Swakopmund Brewing Company was the first and only brewer in Africa to compete in the annual international Best Brew Challenge Tafel Lager relaunched in South Africa this includes the sponsorship agreement with Griquas Rugby Union 8

9 MILESTONES FOR 2017 Sustainable execution in everything Continued efforts and investments to reduce dependency on national water supply, as well as the reduction of overall water consumption Reduction in NBL s carbon footprint through the biomass boiler and improved performance of the rooftop solar plant Long-term success of NBL s home-grown barley project remains a priority; NBL continued to raise awareness of King Lager s role in the home-grown barley project The compounded annual growth rate in dividends paid increased, on average, by 9.2% over the past five years An total shareholder return of 34% for the year (an average of 26% over the past five years) 9

10 MILESTONES FOR 2017 Sustainable execution in everything Litres of water used per litre of beverage produced

11 VISION

12 VISION 2019 Purpose Creating a Future, Enhancing Life Values Let s Talk Let s do it Hooked on Results We Grow People Vision To be the most Progressive and Inspiring Company O&L Group Vision for 2019 To achieve a N$2 billion EBIT target To reduce the Group s carbon footprint by 20% To be an Employer of Choice To create additional job opportunities We All Serve Naturally Today for Tomorrow We do the Right Things Right 12

13 VISION 2019 O&L Group vision for 2019 NBL s contributions towards Vision 2019 Achieve a N$2 billion earnings before interest and tax (EBIT) target Financial results (+13% increase in EBIT) Reduce our carbon footprint by 20% Be an Employer of Choice Create additional job opportunities Biomass boiler Rooftop solar plant Focused strategy to positively contribute to Great Place to Work Home-grown barley project Local procurement spend (2017: 41%, 2016: 38%) 13

14 FINANCIAL RESULTS

15 FINANCIAL RESULTS 2017 Operating environment Economic environment: Higher unemployment rate Reduction in Government spend Increased interest rates Increased utility costs Challenges experienced in the agricultural sector and construction industry Low growth in large neighbouring countries 46% increase in the production volumes to South Africa 15

16 FINANCIAL RESULTS 2017 Salient features (% change 2017 vs 2016) Revenue 11.7% 23.6% 6.5% 11.8% Profit attributable to ordinary shareholders Earnings per ordinary share Headline earnings per ordinary share Dividend paid per ordinary share (14.5%)(14.5%) Net asset value per ordinary share (23.9%) Return on ordinary shareholders' fund 16

17 FINANCIAL RESULTS 2017 Volume contribution per category 61.0% Beer - Namibia 67.6% 28.3% Beer - South Africa 20.7% JUNE % 0.0% Beer - Export RTDs 4.9% 0.7% JUNE % Softs 6.1% An increasingly diversified portfolio of alcoholic and non-alcoholic products beer still dominant at 61.0% of overall volumes produced 17

18 FINANCIAL RESULTS 2017 Salient features: comprehensive income 30 June 2017 N$ 000s 30 June 2016 N$ 000s Turnover Operating expenses ( ) ( ) Operating profit Finance costs (50 923) (39 412) Finance income Equity loss from joint venture (38 917) Equity (loss)/profit from associate ( ) Profit before income tax Income tax expense ( ) ( ) Profit attributable to ordinary shareholders

19 FINANCIAL RESULTS 2017 Salient features: equity losses from associate and joint venture 30 June 2017 N$ 000s 30 June 2016 N$ 000s Equity accounted losses Equity loss from joint venture (38 917) Equity loss from associate ( ) (61 759) Equity loss from ongoing operations ( ) ( ) Deferred tax asset recognition statutory audit adjustments by associate Effect of impairment of assets and recognition of liabilities (68 525) Total equity accounted losses ( ) (11 464) Increased shareholding Audit adjustment by associate Impact of the impairment of assets and recognition of liabilities Heineken South Africa (Proprietary) Limited fair valued the assets and liabilities on the amalgamation of Sedibeng Brewery (Proprietary) Limited s operations into Heineken South Africa (Proprietary) Limited and, as a result, recorded a bargain purchase for the net amount of N$435 million NBL have not accounted for the bargain purchase in line with its Group accounting policy 19

20 FINANCIAL RESULTS 2017 Salient features: financial position 30 June 2017 N$ 000s 30 June 2016 N$ 000s Property, plant and equipment Investment in associate Other non-current assets Non-current assets held for sale Current assets Total assets Issued capital Non-distributable reserves Retained income Ordinary shareholders equity Interest-bearing loans and borrowings (non-current) Other non-current liabilities Current liabilities Total equity and liabilities

21 FINANCIAL RESULTS 2017 Salient features: cash flow N$ 000s 12 Months 30 June Months 30 June Months 30 June Months 30 June Months 30 June 2013 CONSOLIDATED STATEMENTS OF CASH FLOWS Cash generated by operations Dividends paid ( ) ( ) ( ) ( ) ( ) Taxation paid ( ) ( ) ( ) ( ) ( ) Employer benefits payment on post employment benefits plans (935) Net cash flow from operating activities Net cash flow applied to investing activities ( ) ( ) ( ) ( ) ( ) Net cash flow from financing activities (99 602) (4 179) ( ) (17 989) Net (decrease)/ increase in cash and cash equivalents (65 776) ( )

22 FINANCIAL RESULTS 2017 Salient features: dividends Dividend paid per ordinary share (cents)

23 OUTLOOK 23

24 OUTLOOK Increased market share Namibian skills development Increase overall efficiencies New product development and portfolio extensions Track market and consumer insight Innovation Optimise NBL s supply footprint and route-tomarket Employment engagement initiatives and interventions to entrench NBL s purpose and breakthrough culture Succession planning, talent attraction and development of capabilities and skills remains a priority Particular focus on critical skills development International training, exchange programmes and import of technical specialists for transfer of skills Continue to invest in first-time-right initiatives Maximise scale efficiencies and capabilities in South Africa 24

25 OUTLOOK Create a responsible drinking culture Winning portfolio Actively promote responsible consumption and road safety initiatives e.g. Stay Cool, Enjoy Responsibility campaign individuals received DRINKiQ training during the reporting period Continued implementation of winning strategies, innovation capabilities and breakthrough thinking Leverage NBL s unique value proposition as Africa s only independent brewer, supported by a purpose-driven ethos and quality credentials Leverage the Group s premium portfolio and further capitalise on opportunities in the growing craft beer segment 25

26 QUESTIONS 26