Nampak 2012 Annual Results November 2012 1
Highlights cents 250 Headline Earnings per Share continuing operations 200 150 142.3 172.4 200.8 100 73.9 50 0 2009 2010 2011 2012 2
Highlights Rm 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 595 Operating Profit continuing operations 1,229 1,498 1,794 2009 2010 2011 2012 3
Highlights cents 140 Dividends per Share 129.5 120 100 80 83 108 60 40 42 20 0 2009 2010 2011 2012 4
Highlights Rm 350 300 250 200 Rest of Africa Trading Profit 316 150 100 50 67 83 122 0 2009 2010 2011 2012 5
Highlights % 12 10 Trading Margin continuing operations 9.1 9.8 10.2 8 6 6.4 4 2 0 2009 2010 2011 2012 6
7 GROUP RESULTS
Group Income Statement Continuing operations Rm 2012 2011 % Revenue 17 639 15 819 12 Operating profit 1 794 1 498 20 Net finance costs 169 120 41 Income from investments 13 12 Profit before tax 1 638 1 390 18 Taxation 446 456 Profit for the year from continuing operations 1 192 934 28 Discontinued operations - 331 Non-controlling interest 15 25 Attributable income 1 207 628 92 HEPS continuing 200.8c 172.4c 16.5 8
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
Tax Rate (continuing) Rm 2012 Profit before tax 1 638 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 28.0 10
Abridged Balance Sheet Rm 2012 2011 Non-current assets 7 546 6 258 Bank balances, deposits and cash 1 780 1 451 Current assets 5 924 5 199 TOTAL ASSETS 15 250 12 908 Total equity 6 216 5 695 Loans and borrowings 1 595 1 359 Retirement benefit obligations 1 618 1 360 Current liabilities 5 157 3 996 Other 664 498 TOTAL EQUITY AND LIABILITIES 15 250 12 908 11
Group Condensed Cash Flow Rm Cash generated from operations before working capital 2 602 Working capital changes 340 Cash generated from operations 2 262 Net interest paid 154 Tax paid 417 Dividends /cash distributions paid 678 Capex 1 082 Acquisition of business 978 Other 78 Cash outflow before financing activities 1 125 Net borrowings raised and other 465 Net decrease in cash 660 12
Working Capital Movement Rm Inventories 532 Receivables 38 Payables 154 Total increase in working capital 340 13
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
Key Ratios RONA % ROE % 20 20 15 15 10 10 5 5 0 2009 2010 2011 2012 0 2009 2010 2011 2012 Interest Cover X Net debt:ebitda X 15 2.0 10 5 1.5 1.0 0.5 0 2009 2010 2011 2012 0.0 2009 2010 2011 2012 15
16 OPERATIONAL REVIEW
Geographical Revenue 10% 9% 17% 73% South Africa Africa + exports UK 21% 70% 2011 2012 17
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 2011 2012 18
Rm 1,400 Trading Profit and Margin 1,200 1,000 800 600 400 9.7% 9.6% 200 0 15.1% 9.0% 7.4% 6.4% South Africa Rest of Africa UK 2011 2012 19 Note: exports profits included in South Africa
South Africa: Metals & Glass Rm 6,000 4,000 Revenue Rm 1,000 800 600 Trading Profit Margin 13.4% 14.4% 2,000 400 200 0 0 H1 H2 2012 2011 H1 H2 2012 2011 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
South Africa: Paper & Flexibles Rm 5,000 4,000 3,000 2,000 Revenue Rm 200 150 100 Trading Profit Margin 4.0% 3.9% 1,000 50 0 0 H1 H2 2012 2011 H1 H2 2012 2011 2011 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
South Africa: Plastics Rm Revenue Rm Trading Profit 2,500 300 Margin 11.9% 10.9% 2,000 250 1,500 1,000 500 200 150 100 50 0 0 H1 H2 2012 2011 H1 H2 2012 2011 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
South Africa: Tissue Rm 2,000 Revenue Rm 150 Trading Profit Margin 6.8% 8.0% 1,500 120 1,000 500 90 60 30 0 0 H1 H2 2012 2011 H1 H2 2012 2011 Marginal growth in volumes of toilet tissue Diaper volumes increased Fierce price competition across all products 23
Rest of Africa: Metals & Glass Rm Revenue Rm Trading Profit 1,500 120 100 Margin 8.5% 5.7% 1,000 80 60 500 40 20 0 0 H1 H2 2012 2011 H1 H2 2012 2011 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
Rest of Africa: Paper & Flexibles Rm 1,000 750 500 250 Revenue Rm 250 200 150 100 50 Trading Profit Margin 24.4% 12.2% 0 H1 H2 2012 2011 0 H1 H2 2012 2011 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
United Kingdom: Plastics Rm Revenue Rm Trading Profit 2,000 1,500 150 125 100 Margin 7.4% 6.4% 1,000 75 500 50 25 0 0 H1 H2 2012 2011 H1 H2 2012 2011 Sales flat Good cost control Fresh milk price war Record-high polymer prices Excellent result in challenging circumstances 26
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
STRATEGY and GROWTH OPPORTUNITIES South Africa Rest of Africa Conclusion 28
South Africa Focus and invest in our core operations Grow with our major customers and the South African economy 29
Investment in Beverage Cans Project 2012 2013 >> Slim/Sleek - Rosslyn R37m 440ml - Springs R61m Aluminium conversion +R600m 30
2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul South Africa Beverage Cans Index 120 115 110 105 100 95 90 31
2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul Angola Beverage Cans Index 150 125 100 75 50 32
2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul Beer Cans Index 140 130 120 110 100 90 33
2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul Cider Cans Index 400 350 300 250 200 150 100 50 34
2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul RTD/Energy Cans Index 200 180 160 140 120 100 80 35
2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul Slimline Cans Index 150 140 130 120 110 100 90 36
2010 Oct 2011 Jan 2011 Apr 2011 Jul 2011 Oct 2012 Jan 2012 Apr 2012 Jul 440ml Cans Index 200 180 160 140 120 100 80 37
38 Investment in 440ml beverage cans
39 440ml Cans
40 New SAB Draught in a Can
41 New REDD S Cans
42 Brutal Fruit Cans
43 Premium Beer Brands
44 Hunter s Extreme Cans
45 Hunter s Dry and Hunter s Gold Cans
46 Liquifruit Sparkling Cans
47 Smirnoff Cans
48 KWV 3 Yr and Cola Cans
49 BOS Ice Tea Cans
50 330ml Slender Fuze & 440ml Play Cans
51 Roses Cans
52 EnerBev Cans
53 EnerBev Cans
Investment in Food and Diversified Cans Investment in printing modernisation R40m 54
55 Printed Cans
Aluminium Aerosol Can Line 6 56 Investment of R65 million for additional capacity
57 Aluminium Aerosol Cans
Two-Piece Food Can Line Investment of R75 million. 58
59 Key Food Can Brands
Investment in Glass : Furnace 2 Brands we package 60 Invested R400m in rebuild and additional capacity
61 Furnace 2 Brands we package
62 New Wide-Mouth Jars Brands we package
Spirits Bottles Brands we package 63
64 Beer and FABS Bottles Brands we package
65 Wine and Non-Alcoholic Drinks Bottles
7 Layer Film Extruder Commissioning in progress First in South Africa Enables multi layer barrier bags Investment of R30m 66
Pouch Machines and Spout Inserter 67 Investment of R10m
68 Re-sealable Chocolate Wrapping
Investment in Metal and Plastic Closures Wine Closure CSD Super-Shorty Closure 69
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
Manufacturing Exports Zimbabwe Rest of Africa Rm 2,500 2,000 1,500 1,000 500 0 Revenue 23% Group Revenue 71
Manufacturing RevenueTrend Rm 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 0 2009 2010 2011 2012 72
Angola Nigeria Zambia Kenya Malawi Tanzania Manufacturing Revenue in Major Countries Rm 700 600 500 400 300 200 100 0 73
Rest of Africa: Trading Profit Rm 350 300 250 200 150 100 50 0 2009 2010 2011 2012 74
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
Angola and Mozambique 2013 2014 Plastics acquisition X 2 nd can line X Closure line X Paper Sacks X Investment $120m 76 76
Nigeria 2013 2014 Beverage cans X Can line expansions Closures X X X Investment $320m 77 77
East Africa 2013 2014 Ethiopia Company X - plant upgrade X Crate plant for Coke X Uganda Rigid Plastics X Tanzania metal drums X Investment $15m 78 78
Southern Africa 2013 Zambia Liquid Carton Printer X PET jar line Zimbabwe crown line X X Investment $5m 79 79
Sorghum Beer Cartons & Fillers 2013 Ghana X Nigeria X Uganda X Mozambique X Investment $4m 80 80
81 NAMPAK PERFORMANCE
Nampak vs ALSI : 1999 to 2009 index 600 500 ALSI 400 300 200 Nampak 100 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 82
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 240 220 200 180 160 140 120 100 80 60 Nampak vs ALSI : Since 2009 Nampak ALSI 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 cents 3000 2800 2600 2400 2200 2000 1800 1600 1400 1200 Nampak Share Price 84
RONA % 21 18 15 12 9 6 3 0 2009 2010 2011 2012 85
ROE % 21 18 15 12 9 6 3 0 2009 2010 2011 2012 86
Trading Margin % 12.0 10.0 9.1 9.8 10.2 8.0 6.0 6.4 4.0 2.0 0.0 2009 2010 2011 2012 87
Headline Earnings per Share cents 250 200 150 +93% +21% 172.4c +16.5% 200.8c 100 142.3c 50 73.9c 0 2009 2010 2011 2012 88
Dividends per Share cents 140 +20% 120 100 +98% +30% 108c 129.5c 80 60 83c 40 20 42c 0 2009 2010 2011 2012 89
90 OUTLOOK
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 2013 91
92 THANK YOU