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INNSCOR AFRICA LIMITED
PRESENTATION TO ANALYSTS
F2013
4 SEPTEMBER 2013
www.innscorafrica.com
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OPERATING ENVIRONMENT
GROUP RESULTS F2013
HIGHLIGHTS BY BUSINESS
CLOSING REMARKS BY CEO
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OPERATING ENVIRONMENT
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Macro-economic conditions generally weak
Liquidity issues towards latter part of year
Increased competition from Rand imports
Consumer habits changing
Diminished local production of key raw materials
OPERATING
ENVIRONMENT
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Strong generation of free cash continues
Significant investment in expansion and maintenance
projects
Continued focus on growing market share
Improved utilisation of synergies within the Group
OPERATING
ENVIRONMENT
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GROUP RESULTS F2013
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SUMMARISED GROUP STATEMENT
OF COMPREHENSIVE INCOME
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OPERATING PROFIT
TO REVENUE
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PBT TO
REVENUE
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DIVIDEND PER
SHARE
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REVENUE BY
SEGMENT
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OPERATING PROFIT
BY SEGMENT
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PBT BY SEGMENT
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SUMMARISED GROUP
STATEMENT OF
FINANCIAL POSITION
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RETURN ON
EQUITY
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CAPITAL EXPENDITURE
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SUMMARISED GROUP
STATEMENT OF CASH
FLOWS
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HIGHLIGHTS BY BUSINESS
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BAKERIES & FAST FOODS
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BUSINESS HIGHLIGHTS
BAKERIES & FAST FOODS
BAKERIES
Volumes increased by 12% over prior year to 128.3
million loaves
Two new additional bread lines commissioned during
H2 F2013, taking capacity to 450,000 loaves per day
New bread roll line and small confectionery line also
recently commissioned
Two further bread lines planned for commissioning
during H1 F2014
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BUSINESS HIGHLIGHTS
BAKERIES & FAST FOODS
FAST FOODS
Improved product and pricing strategies successfully
introduced at Chicken Inn and Pizza Inn
New Fish Inn brand launched in April 2013
21 additional counters added to the Zimbabwean store
network
Refurbishment programme continued
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BUSINESS HIGHLIGHTS
BAKERIES & FAST FOODS
FAST FOODS (contd)
Additional outlets will be added in Harare, Mutare,
Chegutu, Masvingo and Bulawayo during F2014
Minority shareholding in FF Northern business acquired
with effect from 1 April 2013
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BUSINESS HIGHLIGHTS
BAKERIES & FAST FOODS
FAST FOODS (contd)
Customer counts within the regional operations
increased by 4% to 11.7 million customers
16 additional counters opened during the year
210 regional counters operating at year end
An additional 31 counters planned for F2014
Nigerian market being reassessed
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DISTRIBUTION GROUP AFRICA
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BUSINESS HIGHLIGHTS
DISTRIBUTION GROUP AFRICA
17% volume growth recorded in Zimbabweanoperations
Improved gross margins and good cost control
enhanced profitability
Volume growth of 10% in Zambia
7% decline in volumes in Malawi but an improvement in
results achieved
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SPAR
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BUSINESS HIGHLIGHTS
SPAR
Retail operations still in a loss position but significantimprovements made at store level
Head Office function to be amalgamated with that of
SPAR DC
SPAR Letombo outlet successfully re-launched during
H2 F2013
Investigations underway to add additional corporate
stores
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BUSINESS HIGHLIGHTS
SPAR
Reduced profitability at SPAR DC due to restructuringcost provisions incurred
Rights to operate the SPAR franchise in the Western
region recently acquired
72 outlets currently operating under various SPAR
brands
Pleasing results recorded at SPAR Zambia
Network consists of 6 Corporate stores and 7 franchised
operations
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COLCOM
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Disappointing results recorded for the year
A number of processes undertaken to re-energise the
business
Approximately USD4 million of one-off charges
processed to the income statement
Investment in F2014 to be focused on improving factory
efficiencies and product quality
BUSINESS HIGHLIGHTS
COLCOM
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Associated Meat Packers performed exceptionally well
during the year
8 Texas low-cost protein retail outlets operational by yearend
Additional outlets currently being developed
Significantly improved results expected for F2014
BUSINESS HIGHLIGHTS
COLCOM
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HOUSEHOLD GOODS
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TV SALES & HOME
Volume increase of 11% recorded over prior year
Higher mix of furniture sales
9 additional outlets opened across Harare, Karoi,
Marondera, Chinhoyi, Hwange and Kadoma
New revolving-credit scheme recently introduced
Quality of debtors book remained good
BUSINESS HIGHLIGHTS
HOUSEHOLD GOODS
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CAPRI
Volumes increased by 19%
Continued focus on lowering manufacturing costs
New refrigerator plant scheduled for installation
towards end of 2013
Work continues to develop and secure market share
with Hisense products
BUSINESS HIGHLIGHTS
HOUSEHOLD GOODS
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ASSOCIATE AND OTHER BUSINESSES
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BUSINESS HIGHLIGHTS
ASSOCIATES & OTHER
NATIONAL FOODS
Volumes increased by 21% from prior year to 489,000
metric tonnes
Results enhanced by some one-off profit streams
Significant increase in raw material stocking positions
8 factories operational during the year
7 additional depots opened
G G
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BUSINESS HIGHLIGHTS
ASSOCIATES & OTHER
IRVINES
Strong contribution to overall Group results
Recorded 11% increase in volumes of processed chicken
sales, whilst day-old chicks sales grew by 16%
Production efficiencies at both farm and factory levelscontinue to improve profitability
Further investment to be made in day-old chick
production
BUSINESS HIGHLIGHTS
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BUSINESS HIGHLIGHTS
ASSOCIATES & OTHER
NATPAK
With effect from 1 July 2012 shareholding in NatPak
increased to 66.67%
Large packaging requirement in the Group
Strong demand for core polypropylene woven
packaging products
New investment in plant for production of bread bags
to be commissioned in H1 F2014
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