Our ProfileZambeef Products PLC is one of the largerst agri-businesses in Zambia and the region, involved in the production, processing, distribution and retailing of beef, chickens, pork, eggs, milk, dairy products, edible oils and bread throughout Zambia & West Africa. The company is also one of the largest cropping operations in Africa with 4 380 hectares under irrigation of row crops and 2 450 hectares under irrigation of sugarcane. The Group is in the process of rolling out a 20 000 hectare palm plantation.

ContentsFinancial Highlights Chairmans Report Who We Are Group Structure Geographical Representation Fact Sheet How We Have Performed Joint Managing Directors Report How We Are Governed Environmental, Health & Safety, and Social Responsibility Report Corporate Governance Report Citizens Economic Empowerment Report Board of Directors- Biography Directors Attendance Register Financial and Shareholder Information Ratios and Statistics Consolidated Financial Statements Notice of the Annual General Meeting Proxy Form 2 7 8 10 12 15

27 32 38 40 43 45 46 Appendix 1 Appendix 2

1

Financial HighlightsTurnover ZMK Millions Turnover US$ Millions

68.7%

80.9%

Profit after tax ZMK Millions

Profit after tax US$ Millions

59.0%

70.5%

ZAMBEEF,2

Financial HighlightsWeighted average earnings per share ZMK Weighted average earnings per share US Cent

32.2%

41.7%

Dividends ZMK Millions

Dividends US$ Millions

43.2%

53.5%

flying higher!3

Financial Highlights

Segmental Analysis of Operating Profits 2008

Fully Diversified Operating Profits1.08% LEATHER & SHOE 1.74% EGGS 1.18% BAKERY 1.08% ZAMCHICK INN 1.05% MASTER MEATS NIGERIA

0.39% MASTER MEATS GHANA 0.24% OTHER

11.67% EDIBLE OILS

32.27% BEEF

0.41% FISH 1.67% EGGS 2.31% STOCK FEED

10.04% MILK

5.92% CHICKEN 22.61% CROPS

6.35% PORK

Diversification has reduced earnings volatility and increased quality of earnings

4

Financial Highlights

5

Chairmans Report

6

Chairmans ReportThe above acquisitions have been successfully integrated within the Zambeef Group and we are anticipating significant upside from these ventures during 2009 and beyond. It is pleasing to note that the above business acquisitions were all strong earnings enhancing, contributing to the weighted average earnings per share increasing by 32%. In addition, we approved a number of new and exciting projects for 2009, totaling in excess of US$30m, including the building of a new modern stock feed plant, the setting up of a poultry hatchery, the continued expansion of the irrigated cropping operations, the establishment of ranching operations, the expansion of the piggery and pork processing operations and the establishment of the first 3,500 hectares of the planned 20,000 hectare palm plantation. I am also proud to report that Zambeef won the Lusaka Stock Exchange Corporate Governance first prize which clearly demonstrates your Boards commitment to good corporate governance principles based on openness, integrity, accountability and transparency. As Chairman of the company, I would like to express my gratitude for the support I have received from my colleagues on the Board as well as members of Zambeef s senior management. I also wish to extend my appreciation to Mr. David Phiri who retired as a non-executive director in June 2008; David has diligently served Zambeef as a director since 2002 and his advise over the years has been invaluable. On behalf of the Board, I would like to pay tribute to our thousands of employees for their loyalty, enthusiasm and team spirit, which has ensured another very successful year for Zambeef.

Dear Shareholder, I am pleased to report that the financial year ended September 2008 has once again been another excellent year for the Zambeef group, despite the tough global economic climate and severe floods. Turnover increased by 69% to K493bn and profit after tax increased by 59% to K37.4bn. The interim and final dividend pay out of K13.6bn for 2008 is 43% higher than last year dividend pay out of K9.5bn. One of our key strengths and reason for our continued success lies in our diversification strategy and our significant reinvestment policy, which has reduced earnings volatility and improved the quality of earnings. We continue to expand our business in areas where we believe we have a comparative advantage. During the financial year under review, we invested in excess of K289bn in developing, expanding and diversifying the business, largely through the issue of 44,036,595 new ordinary shares.This has resulted in a very well capitalized and diversified agri-business which is well placed to benefit from the strong real growth not only in Zambia but in the region. We successfully concluded the acquisitions of Zamanita Ltd (edible oil), the assets of Amanita Milling Ltd, the acquisition of the Chiawa Farm assets in the Zambezi Valley, 100% shareholding of Master Pork Ltd, 85.7% shareholding of Nanga Farms PLC as well as establishing a palm plantation and commencing trading operations in Ghana.

Dr. Jacob Mwanza Chairman

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Who We Are

Group Structure

ZAMBEEF PRODUCTS PLC

SUBSIDIARIES

Zambeef Retailing Ltd

Zamleather Ltd

Nanga Farms PLC

Novatek Ltd

Zampalm Ltd

Abattoirs 8 Butcheries 91 Processing 3 Plants Zamchick Inns 7 Mill & Bakery

Tannery Finished Leather Division Shoe Division

Sugarcane Cattle Herd

Stock Feed division producing feed for dairy and beef, poultry and pigs

Palm Plantation

100%

100%

85.73%

100%

100%

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Group Structure

Who We Are

OPERATING DIVISIONS WITHIN ZAMBEEF PRODUCTS PLC

BEEF CHICKEN EGG MILK CROPPING RANCHINGZamanita Ltd Master Pork Ltd Master Meat & Agro Production Co. of Nigeria Ltd Master Meats (Ghana) Ltd

Edible Oil Crushing Plant EdibleOilRefinery Margarine Plant Plastics Plant

Pork Abattoir Pork Processing Plant Sow Piggery

Franshise on Shoprite Checkers Butcheries

Franchise on Shoprite Checkers Butcheries

100%

100%

90%

90%

9

Who We Are

Geographical Representation

Countries to which Zambeef Products PLC has exported products Countries to which Zambeef Products PLC is operating

AFRICA Angola Botswana DRC Malawi Ghana Nigeria Namibia Tanzania South Africa Zimbabwe

INTERNATIONAL China England Hong Kong India Italy

ZAMBIABUTCHERIES (91) ABATTOIRS (8) FARMS (5) ZAMCHICK INNS (7) PROCESSING PLANTS (3)

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Geographical Representation

Who We Are

D.R.C

TANZANIALAKE TANGANYIKA

LAKE MWERU

KASAMA

NorthernZAMPALM MANSA LAKE BANGWEULU LUANGWA

Luapula

ANGOLA

SOLWEZI

North Western

CHILILABOMBWE MUFULIRA CHINGOLA CHAMBESHI KITWE KALULUSHI NDOLA LUANSHYA KAPIRI MPOSHI

EasternCHIPATA

MONGU

CentralMUMBWA

KABWE LUSAKA

PETAUKE CHISAMBA

WesternSENANGA

MAZABUKA NAMWALA CHIRUNDU SINAZONGWE LAKE KARIBA ZAMBEZI

CHOMA ZAMBEZI

SouthernLIVINGSTONE

ZIMBABWE

BOTSWANA 11 MOZAMBIQUE

Who We AreFact Sheet

BEEF & FEEDLOT

Largest meat company in Zambia slaughtering 60 000 cattle per annum Largest feedlotter of quality beef in Zambia feedlotting 12 000 grain-fed cattle per annum abattoirs strategically located around Zambia 8

CHICKEN & EGG

MILK & MILK PROCESSING

State of the art dairy milking 850 cows per day and producing an average of 20 thousand litres of milk per day Milk pasteurised and homogenised in modern milk processing plant Further value added in producing drinking yoghurt, eating yoghurt, cheese, butter and cream Juice line successfully commissioned in 2008

Largest chicken producer processing 3.5 million chickens per annum Major egg producer currently producing 20 million eggs per annum Zambias only national egg supplier

Largest pork processor in Zambia processing 25 000 pigs per annum Largest pig producer producing 6 000 pigs per annum Expanding pig production and processing operations

PORK

One of the largest cropping operations in Africa Producing maize, soya, wheat and lucerne 380 hectares under irrigation 4 500 hectares of dry land crops 1 Harvested 50 000 tons of grain during 2008 Silo storage capacity of 32 000 tons

CROPPING GRAINS

CROPPING PALMS

CROPPING

SUGARCANE

One of the largest sugarcane farms in Zambia 450 hectares under irrigation 2 Produced in excess of 162 000 tons of sugarcane Beef herd totalling 1 427 head of cattle

First commercial palm plantation in Zambia Plantingfirst3500hectaresduring2009 Expected plantation size of 20 000 hectares

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Who We AreFact SheetMILL AND BAKERY

State of the art wheat mill commissioned November 2007 Capacity to mill 3 000 tons of wheat per month State of the art bakery commissioned during May 2007 Currently baking 20 000 loaves per day

The largest edible oils plant in Zambia Crushes 36 000 tons of oil seed in crushing plant Produces 20 000 tons of animal feed cake per annum Margarine production commenced in February 2008 fuels plant commissioned during 2008 Bio Plastics plant to produce full range of plastic bottles for oil

ZAMANITA NOVATEK STOCK FEED

Currently producing 120 tons of stock feed per day in own stock feed plant Modern fully automated stock feed to commence operation in February 2009 for both Zambeef and external sales Capacity of 6 000 tons per month

LEATHER & SHOES

Currently processes 80 000 hides per annum through tannery Exports to South Africa, Europe, and the Far East valued at US$ 1.4 million per annum Major producer of industrial footwear for the local and regional markets

BUTCHERY OUTLETS

Sells high quality beef, chicken, pork, milk, eggs, processed meat, edible oils and bread in 93 outlets throughout Zambia and West Africa store butcheries in Shoprite supermarkets in Zambia, Nigeria and Ghana In

FASTFOOD OUTLETS

Popular fast food chain selling fried chicken and chips Zamchick Inns with more planned for next year 7

TRANSPORT & DISTRIBUTION

OneofthelargesttruckingandtransportfleetsinZambiainexcessof200units Ownmodernworkshoptoserviceandmaintainfleet

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How We Have Performed

14Zamanita Plant

Joint Managing Directors ReportOVERVIEW The Zambeef Products PLC Group of Companies are pleased to confirm the completion of another outstanding financial year for the Group. Not only has the Groups existing business continued to grow, but the financial year has seen the successful acquisition by Zambeef Products PLC of four new subsidiaries operating in pork, edible oils, sugar production and the establishment of a Palm Plantation. The Zambeef Products PLC Group also started trading in Ghana through a new subsidiary in November 2007 resulting in the Group now having operations in three African countries namely Zambia, Nigeria and Ghana. In order to finance these strategic acquisitions as well as part finance the large reinvestment in the Zambeef Products PLC existing operations, Zambeef Products PLC issued 44,036,595 new ordinary shares during the year raising K259bn. This has resulted in a very well capitalised and diversified agri-business which is well placed to benefit from the strong real growth not only in Zambia but in the region. The Zambian economy has continued to show strong growth with the economy growing in real terms by 6.8% in 2007 and is expected to grow by 6% in 2008. The resulting increase in real incomes has contributed to strong growth in the demand for basic food products and has resulted in Zambeef Products PLC Group having to invest in all its divisions to continue to meet this increased demand for food. The group continues to be the largest food provider in Zambia and has increased exports into the region in line with the vision of being the leading food provider for the region. With the region being a large net importer of food, the challenge remains for Zambeef Products PLC to continue to grow to help ensure food security for the region. The Zambeef Board of Directors have approved a number of exciting new projects for the next financial year which include the building of a new modern stock feed plant to provide quality stock feed to Zambeef s operations as well as the open market, the setting up of a poultry hatchery in order to provide day old chicks to Zambeef s poultry operations as well as the open market, the continued expansion of Zambeef s irrigated cropping operations, the establishment of Zambeef s ranching operations and the expansion of the Zambeef s pork production. In addition Zampalm Ltd, a subsidiary of Zambeef Products PLC will start planting the first 3,500 hectares of the planned 20,000 hectare Palm Plantation. Zambeef is also looking at new opportunities in the region. These projects will contribute to the continued growth of the Zambeef Products PLC Group of Companies. FINANCIAL REVIEW This has been another year of strong growth for the Zambeef Products PLC Group with Turnover increasing by 69% in Kwacha terms and 81% in Dollar terms. Profit after tax increased by 59% in Kwacha terms and 71% in Dollar terms. It is pleasing to note that the acquisition of Master Pork Ltd, Zamanita Ltd, and Nanga Farms PLC were all strong earnings enhancing acquisitions contributing to the weighted average earnings per share increasing by 32% in Kwacha terms and 42% in dollar terms. These excellent results have resulted in the Zambeef Board of Directors proposing increasing the dividend pay out for the year from K9.5bn to K13.6bn representing an increase of 43%. OPERATIONAL REVIEW This has been a year which has not only seen the continued expansion of the Zambeef Groups existing operations but has also seen the very successful incorporation of the Master Pork Ltd pork operations and the Zamanita Ltd oil operations into the Zambeef Group. Master Pork Ltd became a wholly owned subsidiary of Zambeef Products PLC on 2nd January 2008 and Zamanita Ltd became a wholly owned subsidiary on 15th February 2008. In addition Nanga Farms PLC became an 85.73% subsidiary of Zambeef Products PLC on 1st July 2008. The full benefit

How We Have Performed

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How We Have Performed

Joint Managing Directors Reportof these acquisitions will come through in the Zambeef Group results for the 2008/9 Financial Year. Zambeef Products PLC also incorporated a 90% subsidiary company called Master Meats (Ghana) Ltd which commenced trading on 1st November 2007. This company has had a successful first 10 months of operations and the intention is to continue to grow the West African operations both in Ghana and Nigeria. Finally Zambeef Products PLC acquired Zampalm Ltd on 14th May 2008.This company is in the process of establishing a 20,000 hectare Palm Plantation in Zambias Northern Province. This project will only start generating a return in five years time. However, once in production, this project will have a very material impact on the results of the Zambeef Group. The performance of the divisions and subsidiaries of Zambeef Products PLC are discussed in more detail below: BEEF (ZAMBEEF) The beef division has had an outstanding year with turnover up 23% in Kwacha terms and 32% in Dollar terms while gross profit increased by 28% in Kwacha terms and 38% in US Dollar terms.The beef division remains the single largest division within the Zambeef Group accounting for 32% of operating profits. During the 2007 financial year Zambeef Products PLC invested in 3 new regional abattoirs taking the number of abattoirs from five to eight. The rewards from this substantial investment have now been realised and the Zambeef Group is in the enviable position of having abattoirs in almost all the main cattle areas of Zambia. This has reduced the volatility of supply of beef and meant that Zambeef has been able to meet the increased demand for beef from the increasing real incomes. During the year Zambeef Products PLC also established a second large beef feedlotting operation at its Sinazongwe Farm in Southern Province. This was necessitated by a restriction on the movement of live animals out of Southern Province. This has further strengthened the beef operations and meant that the Group is less vulnerable to disruptions in supply from disease outbreaks. The beef division can look forward to continued growth with real incomes rising in Zambia and the continual upgrading and expanding of its retailing network. CHICKEN (ZAMCHICK) The chicken division has shown a 19% growth in turnover while operating profits have remained constant. This reduction in margins was largely due to the large increase in feed prices from the significant increase in maize and soya prices during the year. There is always a delay in passing these prices onto the consumer resulting in a decrease in margins. Despite this reduction in margins the Zambeef Group remains committed to the expansion of its poultry operations. The Board of Directors have approved the establishment of Zambeef s own hatchery which will supply all of

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Joint Managing Directors ReportPLC, Master Pork Ltd has had operating profits of K12.1bn representing 6.4% of the Zambeef Groups operating profits. The Zambeef Group expects strong growth from its pork operations for the foreseeable future and is investing in expanding the pork processing plant as well as increase its own pork production in order to plan for the future growth of Master Pork Ltd. In the first nine months of operations since becoming a wholly owned subsidiary of Zambeef Products PLC, Master Pork has more than doubled its monthly turnover. Continued strong growth within Zambia is expected and the aim is to start supplying the processed pork products into the region as well. DAIRY (ZAMMILK) This remains the Zambeef Groups highest margin division operating on a gross profit percentage of 60% and accounting for 10% of the Groups operating profits. The division has performed very well despite the difficulties arising from the 25% reduction in the dairy herd during 2007. This reduction was in order to remove all cows with mastitis from the herd following the exceptionally rainy 2006/7 season. In order to ensure this problem is not repeated the roads used by the dairy cows, when being taken to the dairy parlour for milking, were tarred at a cost of US$300,000 before the 2007/8 rainy season. Despite another very heavy rainy season in 2007/8 the tarred roads have ensured that this problem has not been repeated. We will now see a steady increase in the dairy herd and consequently in the supply of milk. In order to speed up the increase in the dairy herd, sexed semen is now being used. To compensate for the reduction in the Zambeef dairy herd, expensive milk was bought which reduced margins. In addition stock feed prices increased significantly during the year. The dairy division performed very well by increasing the production of its value added lines being butter, cream, yoghurt, drinking yoghurt and starting the production of a milk based juice line. In spite of the 20% reduction in the dairy herd, the dairy

How We Have Performed

Zambeef s day old chick requirements and also sell day old chicks to the open market. Zambeef is continuing to build new chicken houses and is confident that margins will increase particularly as commodity prices appear to be reducing which will result in feed prices reducing. EGGS (ZAMCHICK EGG) The Zambeef Group did not expand its egg operations during the year. The Group remains Zambias only national egg supplier producing approximately 20 million eggs per annum. Turnover was up by 9% while operating profits were down by 16%. As with the chicken division this is as a result of a delay in passing the large increase in stock feed prices onto the consumer resulting in a reduction in margins. There are no immediate plans for the expansion of the egg operations. PORK (MASTER PORK) The acquisition of Master Pork Ltd and the integration of these operations into the Zambeef Group has been a huge success. It the first 9 months as a subsidiary of Zambeef Products

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How We Have Performed

Joint Managing Directors Reportdivision has performed remarkably well to show a 12% increase in turnover and a 10% reduction in operating profits in Kwacha terms. With the dairy herd numbers increasing strongly again the dairy division can look forward to solid growth moving forward in terms of turnover and margins. CROPPING (ZAMBEEF FARMING) The Zambeef Groups cropping operations continue to be the fastest growing division within the group. Zambias fertile soils, excellent climate and ample water resources make it a unique place in the world to do large scale cropping operations. In addition to the large expansion of its grain cropping operations, the Zambeef Group is now a major sugar cane grower having acquired a large sugar estate during the year. The cropping operations turnover increased by 69% while operating profits also increased by 69% representing 23% of the Zambeef Groups total operating profits.This remains a priority area for expansion for the foreseeable future particularly with the Zambeef Groups ability to further value add to most of its cropping activities. a) Grain Zambeef Products PLC has aggressively continued with its strategy of expanding its grain cropping operations with all expansion being done solely under irrigation. This has necessitated the identification of suitable areas which have both the water and the power to undertake large scale irrigation projects. During 2007 the Zambeef Sinazongwe Farm was fully developed with 2,000 hectares under irrigation while Zambeef s Chisamba Farm, with 700 hectares under irrigation, had insufficient water to expand the irrigation further. As a result Zambeef identified a new farming block with potential for expansion and acquired Chiawa Farm in February 2008. This farm is on the confluence of two of Zambias biggest rivers being the Zambezi and Kafue Rivers. The Farm had 960 hectares under irrigation but more importantly the potential to develop a further 2,000 hectares under irrigation. During 2008 a further 720 hectares under irrigation has been developed and a further 700 hectares is planned for 2009. The Zambeef Group has now firmly established itself as the largest grain growing operation in Africa having increased its operations from 2,700 hectares under irrigation in 2007 to 4,380 hectares in 2008 and a further 700 hectares planned for 2009. The Zambeef Group is committed to

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Joint Managing Directors Reportcontinuing to expand its grain cropping operations which will feed into the new modern stock feed plant and wheat mill and ultimately be sold in a value added form as one of pork, beef, chicken, milk, edible oils or bread through the Zambeef Groups extensive retailing network. This will remain a fast growing part of the Zambeef Groups operations. b) Sugar Zambeef Products PLC acquired 85.73% of Nanga Farms PLC on 1st June 2008. Nanga Farms PLC owns a large sugar estate in Mazabuka which has 2,450 hectares of sugar under irrigation. This includes 250 hectares planted during the current year with a further 250 hectares under irrigation planned for 2009. Zambia remains one of the best sugar growing countries in the world with Nanga Farms yielding on average just under 130 tonnes of cane per hectare. Further, as a Lesser Developed Country, Zambia has a quota for the export of sugar to Europe. In addition, it is possible that with the high fuel costs in Zambia legislation will in the future be considered for the blending of ethanol into fuel. As a result the Zambeef Group is excited about being involved in the growing of sugar cane and with Zambias unique sugar growing climate there are hopes to continue to grow the sugar operations. c) Palm Plantation On 14th May 2008, Zambeef Products PLC acquired 100% of Zampalm Ltd which had planned for the development of a 20,000 hectare Palm Plantation in Zambias Northern Provence. During the year Zambeef secured 20,000 hectares of land for the establishment of Zambias first commercial Palm Plantation. The seed for the planting of 3,500 hectares of Palms in 2009 has been imported and the nursery for growing the seedlings established. The Zambeef Group is currently a large importer of crude palm oil from Malaysia for refining at its Zamanita oil plant in Lusaka. In addition Zambia and the region is a large net importer of edible oil. In line with the Zambeef strategic aim of being self sufficient in the production of the raw materials for its operations, this project will not only cater for Zambeef s edible oil requirements but will also make Zambia a large exporter of edible oil into the region. With the expensive fuel in Zambia, Zambeef will always consider the option of some of the palm oil off-take going into bio fuels. This is one of the Zambeef Groups most exciting projects and will in five years time have a material impact on the Groups results.

How We Have Performed

19Nanga Farm

How We Have PerformedFEED PLANT

Joint Managing Directors Reportincrease during the coming year with the new stock feed plant in production. MILLING (ZAMFLOUR) The flour milling operations have had an outstanding year with the commencement of operations at Zambeef s new flour mill during November 2007. Zambeef had been producing flour under a toll milling agreement with another mill since November 2006. The start of milling at Zambeef s own mill has resulted in an improvement in quality and efficiency. The brand name, Zamflour, has grown in strength during the year and sales both within Zambia and the region have increased significantly during the year with turnover up 105% in Kwacha terms and 121% in Dollar terms while operating profit increased 656% in Kwacha terms and 713% in Dollar terms. The milling operations will continue to add value to Zambeef s wheat production and will continue to grow as Zambeef s wheat production grows annually. This division can look confidently to the future. BAKING (ZAMLOAF) Zambeef started baking bread in its new bakery

The feed plant division remains an important part of the Zambeef operations adding value to the maize and soya produced by Zambeef Products PLC and converting it into a product that can be fed to the chickens, cattle and pigs. Zambeef currently produces all its own stock feed in its own stock feed plant. During the year the Zambeef Board of Directors approved a US$8m project for the establishment of a fully automated state of the art stock feed plant which will take the feed milling industry in Zambia to a new level. This stock feed plant should be operational in February 2009 and will produce all of the Zambeef Group stock feed requirements as well as sell stock feed to third parties in Zambia and into the region. This plant will have the capacity to produce 6,000 tonnes of feed per month. With the expansion of the Zamanita oil crushing plant, the stock feed plant will have a good supply of protein for the livestock sector. Instead of this protein being exported in the raw form, the intention is to add maximum value in the stock feed plant before selling the stock feed in the Zambian and regional market. The stock feed operations accounted for only 2.3% of the operating profits of the Zambeef Group for 2008. It is expected that this will

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Joint Managing Directors Reportunder the brand name Zamloaf in May 2007.The bakery has a capacity of 30,000 loaves a day and is currently producing around 20,000 loaves per day.This allows Zambeef to add still further value to the wheat it grows by turning its wheat firstly into flour and then bread before retailing this bread through the Zambeef retailing network. Turnover has increased by 204% in Kwacha terms and 227% in Dollar terms while operating profits have increased by 196% in Kwacha terms and 219% in Dollar terms. This division will continue to grow and Zambeef hopes to develop the brand name Zamloaf into Zambias national bread brand. TANNERY (ZAMLEATHER) & SHOE PLANT (ZAMSHU) The tannery and shoe plant have had a difficult year with turnover down and operating profits significantly down with the tannery dropping by 52% in Kwacha terms and the shoe plant by 57% in Kwacha terms. This large reduction in profits resulted from a dramatic fall in leather prices and demand following the sub prime mortgage crises and then added to by the credit crunch later in the year. The global recession has adversely affected the demand and price of luxury goods such as leather. The tannery had an outstanding year in 2007 following Zamleather successfully securing contracts with two large motor vehicle upholstery leather manufacturers. This industry has been badly affected by the large fall in the demand for motor vehicles in the world The tannery and shoe plant can expect another tough year ahead. FISH Zambeef has continued to expand its fish sales through its retailing network with turnover up by 98% in kwacha terms. Margins reduced during the year with a large increase in the price of fish

How We Have Performed

21

How We Have Performed

Joint Managing Directors Report

worldwide. Zambeef Products PLC have started a small fish project on its Chiawa Farm and with fish continuing to be a cheap form of protein, the Group is looking at the viability of doing a large fish project. EDIBLE OIL (ZAMANITA) In February 2008, Zambeef Products PLC acquired the assets of the largest edible oil producer in Zambia. These assets were placed in a wholly owned subsidiary of Zambeef Products PLC called Zamanita Ltd. Zamanita has been very successfully brought into the Zambeef Group and its products are now being distributed through the Zambeef Groups distribution and retailing network. Zamanita is now the third largest division within the Zambeef Group after the beef and farming divisions accounting for 12% of the operating profits.

This acquisition was an important strategic decision by the Zambeef Group. The edible oils produced by Zamanita compliment Zambeef Groups range of basic foods retailed through its retailing network. In addition the by-product from the oil crushing plant is the main source of protein for the livestock sector. Zambeef is thus committed to expanding the crushing plant in order to ensure as many of the oil seeds grown in Zambia are crushed and value added in Zambia. This reduces Zambias need to import edible oils and ensures the protein remains in Zambia to develop the livestock sector. Zamanita has embarked on an aggressive capital expenditure program in order to upgrade the Zamanita plant and ensure it is competitive in the region. A new cotton seed decorticating plant has been installed which now allows Zamanita to crush cotton seed in addition to soya and sunflower seed. This now means that

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Joint Managing Directors Report

How We Have Performed

Zambias cotton seed can stay in the country for further processing instead of being exported in its raw form. A new reverse osmosis water plant was installed during the year in order to get the margarine plant operating.The margarine plant is now fully operational and sales increasing monthly. The reverse osmosis plant is also being utilised to produce bottled water under the brand name Zamaqua.The plastics plant has been expanded and Zamanita is largely self sufficient in the production of all its own plastic bottling requirements. The plan is to expand the plastics plant further to meet the Zambeef Groups plastic requirements. Further capital expenditure is ongoing on both the oil crushing plant and the oil refinery. The prospects for Zamanita look exciting and strong growth is expected from this operation for the foreseeable future.

RETAILING NETWORK The Zambeef Group has the largest retailing and distribution network for perishable products in the country with 98 outlets strategically located throughout Zambia. This network is continually being upgraded and expanded. The retailing network in Zambia includes the franchise on the 18 Shoprite Checkers Supermarket butcheries. It also includes the Zambeef Groups fast food chain which is branded as Zamchick Inns. These have proved very popular and currently stand at 7 Zamchick Inns. With the increase in the Zambeef Groups non perishable business, the Group is considering starting a new dry store network in addition to its existing network which sells both perishable and non perishable products. This would look at specialising in stock feed, oil, day-old-chicks, maize meal and flour.

23Sinazongwe Farm

How We Have Performed

Joint Managing Directors ReportThe Zambeef retailing network remains the engine which drives the Zambeef business. It allows Zambeef to add maximum value to all its primary production through further processing before branding and then retailing these products directly to the end consumer. With real incomes increasing in Zambia, the resulting increase in demand for food in Zambeef s retailing network keeps the pressure on all the Zambeef Group Divisions to continue to expand to meet this demand. WEST AFRICA (NIGERIA & GHANA) On 1st November 2007 the Zambeef Group commenced operations in Ghana through a 90% subsidiary called Master Meats (Ghana) Ltd. This is the second country outside of Zambia that Zambeef Products PLC has operations in. The other country being Nigeria where Zambeef Products PLC also has a 90% subsidiary called Master Meats and Agricultural Production Company of Nigeria Ltd. Both these operations have the franchise on the South African supermarket giant, Shoprite Checkers butcheries, in these countries. The Ghana operation has had a very good first 10 months of operations with the company making an operating profit of K750m and breaking even for the year. This is an excellent start to operations in Ghana. Shoprite are looking at further sites in Ghana and are in the process of starting developing 2 sites in Accra and one in Kumasi which will open in late 2009 and mid 2010. Two further sites are being looked at in Accra. As a result the Ghana operations will have strong growth with most of this coming through in 2010/11. The Nigerian operation has continued to grow and will be opening its new pork processing plant in the New Year. This will be a smaller version of Zambeef s Master Pork operations in Zambia. Shoprite have an aggressive expansion program in Nigeria with work starting on four new sites being two in Abuja, one in Lagos and one in Ogun State. In addition 12 additional sites are currently being looked at. As a result we expect in 2010/11 the Nigerian operations to increase significantly and become a material part of the Zambeef Group operations. FUTURE DEVELOPMENTS The Zambeef Products PLC Board of Directors have already approved new projects to the value of US$30m for the 2008/9 Financial Year. These projects include the setting up of a poultry hatchery, building a modern new piggery, expansion of the processed meats division, expansion of the irrigated cropping operations, establishment of ranching operations, and development of a new stock feed plant. The Zambeef Group is also considering strategic acquisitions both in the region and within Zambia.The Zambeef Group has prided itself on the continual reinvestment back into its operations and expects 2009 to be another exciting year for the Group. APPRECIATION David Phiri retired as a non executive director of Zambeef Products PLC on 6th June 2008. David Phiri has had a long association with Zambeef Products PLC and served as a non executive director since 2002. His advice over the years has been invaluable particularly with Zambeef Products PLC becoming a public company in February 2003. As Joint Managing Directors, we would like to most sincerely thank David Phiri for his wise and constructive guidance over the years. STAFF & BOARD OF DIRECTORS The Zambeef Group remains committed to attract, retain and motivate top quality people in the best interests of the Group. As Joint Managing

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Joint Managing Directors ReportDirectors we would like to thank all the staff of the Zambeef Group in Zambia, Nigeria and Ghana for their contribution to another very successful year for Zambeef. It is another year we can all look back on with a lot of pride. A company is only as good as its work force and the success of Zambeef is a reflection of the dedication and work by the employees. We would like to welcome our new directors who have joined us during the year. Dr Aubrey Muyeke Chibumba joined the Board as a non executive director following the retirement of David Phiri. He is currently the Director General of NAPSA, the main state pension fund in Zambia and brings wide experience in international business and risk management. Diego Casilli joined as an executive director on 2nd January 2008, following the acquisition of Zamanita Ltd. Diego Casilli was one of the owners of this company and took shares in Zambeef as part of the acquisition cost. He has an excellent knowledge of business in Zambia and the region and has brought a lot of new ideas and opportunities to Zambeef. Nick Wilkinson joined as an executive director on 19th September 2008. Nick Wilkinson again brings enormous business skills and knowledge of business in Africa having been Chief Executive of Mpongwe Development Company Ltd and Nanga Farms PLC, Chief Executive of Dunavant Ltd and Managing Director of Lonhro Africa Cotton. We would again like to sincerely thank our Board colleagues for the continual guidance, advise and support in continuing to grow and expand our business. Zambeef Products PLC is fortunate in the high calibre of its directors with enormous experience in the private and public sector both within Zambia and internationally. In particular we must thank our Board Chairman Dr Jacob Mwanza for his continued tremendous support and guidance. CONCLUSION This has been another exceptional year for the Zambeef Group of Companies. It is a year in which Zambeef has matured significantly with a number of strategic and profitable acquisitions. It has seen Zambeef widen its operations in Africa with the commencement of operations in Ghana and has seen Zambeef expand its existing operations with the strategic objective of being the leading food provider for the region. Zambeef can continue to look to the future with a great deal of confidence.

How We Have Performed

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How We Are Governed

26

Environmental, Health & Safety and Social Responsibility Report

How We Are Governed

Zambeefs environmental policy is aimed at providing a safe and healthful work place, protecting the environment, and being a responsible corporate citizen within the communities where we operate. The policy provides the foundation for the following corporate policy objectives: Provide a safe and healthful workplace and ensure that personnel are properly trained and have appropriate safety and emergency equipment. Be an environmentally responsible neighbour in the communities where we operate, and act promptly and responsibly to correct incidents or conditions that endanger health, safety, or the environment. Conduct our business in compliance with applicable environmental and health & safety laws and regulations. Be a responsible and committed corporate citizen and be a useful and effective member of the communities within which we operate. Aim to reduce poverty by establishing strong partnerships with local communities & supporting community initiatives, especially in the health and education areas, that deliver sustainable long-term results & real benefits to the communities within which we operate. Review yearly our strategies, objectives and targets and monitor environmental programs to ensure continuous improvement of our environmental performance. Conduct ongoing audits to ensure compliance of environmental and health & safety legislation and report periodically to the Board of Directors.

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How We Are Governed

Environmental, Health & Safety and Social Responsibility Report

Zambeef subscribes to the United Nations Millennium Development Goals which aim to: Eradicate extreme poverty & hunger Achieve universal primary education Promote gender equality and empower women Reduce child mortality Improve maternal health Combat HIV/AIDS, Malaria, TB and other diseases Ensure environmental sustainability

We are pleased to report that Zambeef has fully complied with all environmental and health & safety laws and regulations.

Zambeef also continues to assist and/or support worthy & noble activities & organizations aimed at poverty alleviation through both cash donations as well as providing free meat and dairy products on a regular basis. Zambeef has also continued to give support in the following areas: Construction of schools and health centres Electrification and provision of clean water facilities Financial support to teachers and health workers Funding of educational & healthcare materials Donation of food to the vulnerable Support to promotion of sport Support to traditional ceremonies Support to local authorities Support to Ministry of Agriculture for development process of Food Safety Policy

Zambeef also carried out training of staff throughout the country in various fields as a law requirement under the Factories Act cap 441 and the Food and Drugs Act cap 303.

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Environmental, Health & Safety and Social Responsibility Report

How We Are Governed

About 242 managers, stock controllers and cashiers were trained during the year under review, who later trained their own staff in their respective outlets and the number came to 941. The staff were trained in the following areas: Hazard Analysis of Critical Control Point (HACCP) Food hygiene Basic Training Course in First Aid Fire Drill and use of fire equipment Cholera control Solid waste management Abstract of the Factories Act Cap 441 Customer service and marketing Role of managers in food premises and relationship with Health Inspectors

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How We Are Governed

Environmental, Health & Safety and Social Responsibility Report

The development of HIV/AIDS policy was finalised and due to be implemented shortly. However, HIV programmes, such as Training Peer Educators, Voluntary Counselling and Testing and Training of HIV/AIDS AWARENESS to focal persons were carried out. Zambeef has also teamed-up with a UK based charity called Alive & Kicking, which aims to use the power of football to deliver health education, in particular, to raise HIV/AIDS awareness and malaria prevention. The charity already operates in Kenya and South Africa.

Zambeef has agreed to partner this worthy cause and have so far committed to: Buying footballs to be distributed to schools and orphanages in poor, largely rural areas Provide finished leather from our tannery at reduced prices Provide space at our tannery/shoe plant free of charge Use of our shoe plant equipment free of charge

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How We Are Governed

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How We Are GovernedCORE POLICY

Corporate Governance Report

The directors of Zambeef Products PLC are fully committed to the principles of effective corporate governance and the application of high ethical standards in the conduct of business. The group endorses the principles of openness, integrity, transparency and accountability as advocated in its Code of Corporate Governance and as set out in the King Report on Corporate Governance SA 2002 (King II). Zambeef s success in achieving the highest standards of corporate governance is evidenced by Zambeef being awarded the first prize in the Lusaka Stock Exchange annual awards held in November 2007. CODE OF CORPORATE GOVERNANCE The key principles underpinning the governance of the group are set out in its Code of Corporate Governance. Zambeef s Code of Corporate Governance complies with the requirements of the Lusaka Stock Exchange. The group believes that a corporate culture of compliance with applicable laws, regulations, internal policies and procedures is a core component of good corporate governance. As such, compliance is one of the most important areas covered by Zambeef s system of internal control. The Code spells out the companys commitment towards shareholders and stakeholders, as well as policies and guidelines regarding the personal conduct of management and other employees. The key sections of the Code relate to Board and Directors, Board Committees, Legal and Compliance, Internal Audit, Risk, Environmental, Health and Safety and Social Responsibility Policies, Disclosure & Stakeholder Communication and Organization Integrity.

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Corporate Governance ReportBOARD OF DIRECTORS The Board of Directors has been appointed by the shareholders and is responsible to the shareholders for setting the direction of Zambeef through the establishment of strategic objectives and key policies. The Board consists of twelve directors, of whom eight are non-executive directors and six are executive directors. The Board considers the nonexecutive directors to be independent as described in the King II Report. The non-executive directors, drawing on their skills, experience and business acumen, have ensured impartial and objective viewpoints in decision-making processes and standards of conduct. The mix of technical, entrepreneurial, financial and business skills of the directors is considered to be in balance and to enhance the effectiveness of the Board. All directors have had access to management and to such information as was needed to carry out their duties and responsibilities fully and effectively. The directors have stayed fully abreast of the groups business through meetings with senior management and site visits. One third of the non-executive directors are subject to the rotation provisions contained in the Code of Corporate Governance and the Companies Act and retire at the Annual General Meeting. BOARD COMMITTEES Subject to specific fundamental, strategic and formal matters reserved for its decision, the Board has delegated certain responsibilities to standing sub-committees, which operate within defined terms of reference laid down by the Board, as referred to below. The board has the following sub-committees to assist it with its duties: Executive committee Audit committee Remuneration committee

How We Are Governed

Executive Committee The Executive Committee is chaired by the Board Chairman, Dr Jacob Mwanza, and its membership consists of the two Joint Managing Directors and three non-executive directors. The committee is responsible for advising the Joint Managing Directors in implementing the strategies and policies determined by the Board and making quick decisions on issues which cannot wait for the convening of formal board meetings. The committee is also responsible for monitoring the performance of the company. Audit Committee The Audit Committee is chaired by Mr. Lawrence Sikutwa, non-executive director, and its membership consists of three non-executive directors and an independent secretary. An Executive Director, the Finance Director and the Chief Internal Auditor attend, report and participate at all meetings of the committee, which ensures cohesion with senior management. The committee operates within defined terms of reference and authority granted to it by the Board. The Audit Committee has met four times during the financial year to advise the Board on a range of matters, including corporate governance issues, effectiveness of internal control policies and procedures, assessing management of risks facing the business. The committee is also responsible for ensuring compliance with laws and other regulatory requirements. The primary role of the Audit Committee is to ensure the integrity of the financial reporting and

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How We Are Governed

Corporate governance Reportthe audit process, and that a sound risk management and internal control system is maintained. The Committee provides an independent oversight of the groups system of internal control and financial reporting processes, including the review of the interim and annual financial statements before they are submitted to the Board for final approval. The Audit Committee is required to ensure that all appropriate controls and processes are in place to identify all significant business, strategic, statutory and financial risks and that these risks are being effectively monitored and managed. In pursuing these objectives, the Audit Committee oversees relations with the external auditors and reviews the effectiveness of the internal audit function. The Audit Committee is not aware of any significant cases of non-compliance with the groups Code of Corporate Governance during the year under review, nor is it aware of any ascertainable risk from any litigation pending, in progress or threatened, which could be regarded as material t the groups financial position. Remuneration Committee The Remuneration Committee is chaired by Dr. Jacob Mwanza, and its membership consists of three non-executive directors. The two Joint Managing Directors and the Executive Director attend, report & participate at all meetings of the committee but they do not take part in any decisions regarding their own remuneration. The main responsibility of the committee is to review and approve the remuneration and employment terms and conditions of the executive directors and senior group employees. The committee has a clearly defined mandate from the Board aimed at ensuring that the groups remuneration strategies, packages and schemes are related to performance, are suitably competitive and give due regard to the interests of the shareholders and the financial and commercial health of the company. In determining the remuneration of the executive directors and senior group employees, the Remuneration Committee has aimed to provide the appropriate packages required to attract, retain and motivate the executive directors and senior group employees.

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Corporate Governance ReportThe committee has considered and submitted recommendations to the Board concerning the fees to be paid to each non-executive director. Any changes to the fees are approved by the Board and the shareholders in a general meeting. INTERNAL CONTROL, RISK MANAGEMENT AND INTERNAL AUDIT The Board is responsible for the groups system of internal control and risk management and for reviewing its effectiveness. The Chief Internal Auditor has established the procedures necessary to implement clear operating procedures, lines of responsibility and delegated authority. The system of internal control, which is embedded in all key operations, aims to provide assurance that the companys business objectives are achieved within the risk tolerance levels defined by the board. Regular management reporting, which provides a balanced assessment of key risks and controls, is an important component of Board assurance. The companys internal audit function now has a formal collaboration process in place with the external auditors to ensure efficient coverage of internal controls and to eliminate duplication of effort. The key features of the internal control system that operated throughout the year covered by the financial statements are described under the following headings: Identification and Evaluation of Business Risks and Control Objectives The Board has the primary responsibility for identifying the major risks facing the group and for developing appropriate policies to manage those risks and relies on the reports of the Audit Committee. Information and Reporting Systems The group operates a comprehensive annual planning and budgeting system with an annual budget approved by the Board. Reports include profit forecasts and cash flow statements, which are used in determining that the group is in line with its projected trading/financial forecasts and that it has adequate funding for its current and future needs.

How We Are Governed

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How We Are GovernedRisk Management

Corporate Governance Report

The Board identifies and monitors risk through the planning process, the close involvement of the executive directors in the groups operations and the periodic monitoring of key issues to ensure that the significant risks faced by the group are being identified, evaluated and appropriately managed, having regard to the balance of risk, cost and opportunity. Monitoring The Audit Committee considers that there have been no weaknesses in the system of internal control that resulted in any material losses or contingencies during the last year or the period from the balance sheet date to the date of this report.

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How We Are Governed

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How We Are Governed

Citizens Economic Empowerment ReportIn the year 2006, the Government of the Republic of Zambia enacted the Citizens Economic Empowerment Act number 6 (CEE Act). The Act provides the legal basis for implementing the economic empowerment program in Zambia. The objective of this program once implemented would be to expand citizen ownership and effective participation in the affairs of the economy. The Act also established the Citizens Economic Empowerment Commission (CEEC ) whose mandate among others is to promote the economic empowerment of targeted citizens, citizens empowered companies, citizens influenced companies and citizens owned companies. To this effect, nine pillars have been identified as being a summary of the economic empowerment program; - Equity and Ownership - Skills Development - Greenfield Investment - Access to Finance - Foreign Direct Investment - Preferential Procurement - Good Corporate Governance - Corporate Social Responsibility - Transformation of Society The CEEC with the stakeholders are currently in the process of developing sector codes which will become legally binding once CEEC cause their publication in the Government Gazette. TARGETED CITIZENS These have been identified as citizens that have historically been marginalized and whose access to economic resources and developmental capacity has been constrained due to various factors including race, sex, education background, status and disability. Targeted citizens include;The Youth; Women; Disabled; People living with HIV/ AIDS; Senior Citizens; Retirees; Cooperatives/ Farmer Associations. CITIZEN EMPOWERED COMPANY This is a company where twenty five fifty percent of its equity is owned by citizens. CITIZEN INFLUENCED COMPANY This is a company where five to twenty five percent of its equity is owned by citizens and in which citizens have significant control of the management of the company. CITIZEN OWNED COMPANY This is a company where at least fifty point one percent of its equity is owned by citizens and in which citizens have significant control of the company. In light of the Act, and the provisions thereof, Zambeef Products PLC Group has set up deliberate programs and activities to ensure that the company adheres to the provisions of the CEE Act. Employment The group employs over 3,485 employees of which over 98% are Zambian. Furthermore, the group through its farming division provides significant employment to the rural community where poverty levels are much higher than the urban areas. In addition to providing employment, the group has set up health, education and sanitary facilities to these communities. The group also runs a confidential program for people living with HIV/AIDS which is run on a strict inter- personal relationship to discourage stigmatization and promote confidentiality. Equity and Ownership Zambeef Products PLC joined the stock market in 2003. This position provided an opportunity for Citizens at large to buy shares in the company. It also provided an equal opportunity for pension fund managers to invest in the companys shares so as to provide a return for the

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How We Are Governedpensioners. In this regard, the group provided an environment that allowed for citizens to acquire equity by buying shares on the stock market. A large percentage of Zambeef s shares are owned by Zambian individuals and Zambian institutions. Skills Development The Zambeef group is fully committed to developing and training its employees at all levels within the organization. This year, the group carried out and/or supported training (in Zambia and overseas) of over 900 staff in various fields of finance, engineering, Hazard Analysis of Critical Control Point (HACCP), farming, corporate governance, food processing, food hygiene and safety, milling, sales and marketing. The groups continual re-investment into labour and human resources has resulted in many senior positions being occupied by Zambians, as well as two Zambians running the groups West Africa operations. Preferential Procurement Zambeef has eight regional abattoirs and in many of these largely rural areas, Zambeef is one of the largest business partners where the group injects over K8bn per month into these rural economies through the procurement of locally produced raw materials, resulting in poverty alleviation and sustainable development of these rural economies. Citizens Economic Empowerment is a new concept to the Zambian environment still going through development and implementation stage. Once fully completed and up in running, the company will reposition itself to ensure that it fully complies with the Act.

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How We Are Governed

Board of Directors - BiographyDr. Jacob Mwanza Board Chairman and Chairman of the Remuneration and Executive Committees Nationality: Zambian Qualifications: MA Economics (W. Germany) Experience: Over 30 years Buisiness Management experience, both in the public and private sectors. Previously Governor of the Central Bank; currently Chancellor of the University of Zambia. Has served and is currently on several Boards, including Stanbic Bank, Citi Bank, Intercontinental Hotel. Rodney Clyde-Anderson Non-executive Director and member of the Remuneration Committee Nationality: British Qualifications: Diploma in Agriculture (Zimbabwe) Experience: Over 30 years experience in Agribusiness; past Chairman of Herd Book Society of Zambia and Livestock Services Co-operative Society; previously Vice-president of Zambia National Farmers Union. Currently serving on several Boards including Bric Brac Ltd, Wellspring Ltd and Mazabuka Marketing Company Ltd. Lawrence Sikutwa Non-executive Director and Chairman of the Audit Committee and member of the Remuneration and Executive Committees Nationality: Zambian Qualifications: FCII; Post Grad Diploma in Insurance (UK) Experience: Over 30 years experience in Business Management. Previously General Manager of Zambia State Insurance Corporation; currently Group Chairman of LSA Ltd Group of Companies. Hilary Duckworth Non-executive Director Nationality: British Qualifications: R.M.A Sandhurst; MBA (UK) Experience: Over 20 years experience in Business Management; Merchant Banking experience with various banks in the UK; Director of a number of other companies including Bric Brac Ltd. David Phiri (Retired 06-06-08) Non-executive Director and Chairman of the Remuneration Committee and member of the Executive Committee Nationality: Zambian Qualifications: Rhodes Scholar Experience: Over 30 years Business Management experience, both in the public and private sectors. Previously Governor or the Central Bank and Ambassador to Sweden. Has served and is currently on several Boards, including Stanbic Bank, Citi Bank, Anglo American Corporation, Zambia Venture Capital Fund, Madison Insurance Company Ltd, British American Tobacco, Holiday Inn

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Board of Directors- BiographyJohn Rabb Non-executive Director Nationality: South African Qualifications: BSc (Agriculture); MBA (RSA) Experience: Over 30 years Business Management experience. Currently Managing Director of Wooltru Group South Africa. Has served and is currently on several Boards, including Spur Holdings (listed on JSE) and Wellspring Ltd. Mark Doron Shnaps (alternate to John Rabb) Non-executive Director Nationality: South African Qualifications: Bachelor of Business Science (UCT with honours in Finance) CA (RSA) Experience: Over 5 years experience in finance and accounting. Currently Director of Cape Underwear Manufacturers, a division of Seardel Group Trading (Pty) Ltd, Financial Director of Creative Fashions, a division of Seardel Group Trading (Pty) Ltd. Irene Muyenga Non-executive Director and member of the Audit and Executive Committees Nationality: Zambian Qualifications: BA (ed); DIS; LIII Experience: Over 20 years Business Management experience. Currently Managing Director of Zambia State Insurance Corporation. Has served and is currently on several Boards, including African Insurance Organisation, Insurance Advisory Council, Organisation for Eastern & Southern African Insurers, Zambia Insurance Business College, PTA Re-Insurance Company. Adam Fleming Non-executive Director Nationality: British Experience: Over 30 years Business Management and Banking experience. Previously Chairman of Harmony Gold (listed on JSE and one of the largest gold mining companies in the world); currently Chairman of Witwatersrand Consolidated Gold Resources Ltd. Has served and is currently on several Boards. Brian Dowden (alternate to Adam Fleming) Non-executive Director Nationality: South African Qualifications: Chartered Accountant (RSA) Experience: Over 30 years experience as a practicing accountant.

How We Are Governed

Dr. Aubrey Chibumba Non-executive Director and member of the Audit and Remuneration Committees Nationality: Zambian Qualifications: CFA, PhD, MSc, B Eng Experience: Over 15 years Business Management experience, both in the public and private sectors. Previously consultant to a number of international banks. Current head of NAPSA and Advisor to Governor of the Bank of Zambia.

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How We Are Governed

Board of Directors - BiographyCarl Irwin Joint Managing Director Nationality: Zambian Qualifications: B. Com; ACA (UK) Experience: Over 17 years of accounting & finance experience with a number of companies, including Coopers & Lybrand UK. Co-founder of Zambeef Products Plc. Other directorships include Lubungu Wildlife Safari Company Ltd, Proflight Commuter Services Ltd, Zambezi Ranching & Cropping Ltd and Master Pork Ltd. Francis Grogan Joint Managing Director Nationality: Irish Qualifications: BSc Agriculture (Ireland) Experience: Over 22 years experience in agriculture and meat, including experience with United Meat Packers (Ireland), one of Europes largest meat companies. Co-founder of Zambeef Products Plc. Other directorships include Zambezi Ranching & Cropping Ltd and Master Pork Ltd. Yusuf Koya Executive Director Nationality: British Qualifications: BSc in Geology & Economics; MSc in Economics; ACIB (UK) Experience: Over 17 years banking experience in corporate finance and credit risk management, both in the UK and Zambia. Previously Head of Corporate Finance, Assistant Corporate Director & Country Credit Director with Barclays Bank Zambia Plc.

Nancy Hart Finance Director Nationality: American Qualifications: BSc in Accounting; CPA (USA) Experience: Over 17 years accounting, finance & audit experience, including 3 years as an officer in the Enforcement Division of the US SEC and 4 years as Senior Auditor with Ernst & Young, USA.

Nick Wilkinson Executive Director Nationality: British Qualifications: BCom in Accounting; Chartered Accountant Experience: Over 20 years experience in senior management in large corporates in the Southern African region and Zambia. Previously Managing Director of Mpongwe Development Company and Dunavant Zambia.

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Directors Attendance RegisterDiego Casilli Managing Director (Zamanita Limited) Nationality: Italian Qualifications: Bachelor of Commerce with Honors (University of Witwatersrand,RSA) Experience: Over 18 years in Agro-processing and Commodity Finance operations in the SADC region. Other Directorship include Amanita Africa Limited, Inbond Limited, Dolomite Limited.

How We Are Governed

Danny Museteka Company Secretary Nationality: Zambian Qualifications: MBA (UK); FCCA; PG. DIP BA; Diploma in Accountancy; AZICA Experience: Over 17 years accounting and finance experience with a number of public and private companies in Zambia.

The Number of Board Meetings and Committee meetings attended by the Directors during the financial year

Directors Jacob Mwanza Rodney Clyde- Anderson Lawrence Sikutwa Hillary Duckworth John Rabb Irene Muyenga Adam Flemming Carl Irwin Francis Grogan Yusuf Koya Nancy Hart Aubrey Chibumba Diego Casilli Nick Wilkinson

A 4 3 4 2 3 4 3 4 4 4 4 1 3

B

C 1 1

D 5 2

7

7

3 5 5 4

1

A- Board Meetings B- Audit Committee Meetings C- Remuneration Committee Meetings D- Executive committee

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Financial and Shareholder InformationRatios and StatisticsIncome statement information Revenue Gross Profit Profit attributed to the shareholders of Zambeef Products PLC Revenue Gross Profit Net Profit Balance Sheet Information Total Asset Shareholders Funds Total Liabilities Profitability & Return Ratios Gross Profit Margin Net Profit Margin Return on Equity Asset Turnover Liquidity Ratios Current Ratio Interest Cover (using EBITDA) Capital Structure Ratios Long term debt / Equity Ratio Total Debt / Equity Ratio Shareholders Ratios Earnings per share Dividend per share Dividend cover Dividend payout ratio Dividend Yield Price Earnings Ratio Net Asset value per share Lusaka Stock Exchange Statistics Market Value per share At year end Highest Lowest Number of shares issued Closing Market Capitalisation K Millions K K K 6 300 7 000 5 500 5 500 5 500 2 499 2 499 2 500 1 300 1 400 1 400 800 800 1 000 671 K K times % % ratio K 270.92 85.69 3.2 31.6 1.4 23.3 2 743.13 204.94 82.85 2.5 40.4 1.5 26.8 1 349.57 171.22 74.13 2.3 43.3 3.0 14.6 854.29 145.49 60.61 2.4 41.7 4.3 9.6 700.10 126.71 60.35 2.1 47.6 7.5 6.3 615.22 % % 10.9 35.4 24.8 42.3 27.8 46.7 37.4 65.9 18.3 39.0 times times 1.3 8.9 1.6 15.0 1.8 13.6 1.68 8.5 1.93 17.8 % % % times 38.7 7.6 8.6 1.0 44.0 8.0 15.2 1.4 44.9 8.8 21.5 1.7 43.7 8.5 20.8 1.6 39.8 8.8 20.6 1.8 K Millions K Millions K Millions 718 940 435 352 279 496 265 464 154 754 110 629 169 913 91 429 78 422 162 708 80 280 82 428 122 535 70 456 51 988 K Millions K Millions K Millions 2008 492 698 190 881 37 368 2007 291 971 128 456 23 500 2006 223 782 100 432 19 634 2005 196 576 85 821 16 683 2004 164 740 65 564 14 529

US$ Millions US$ Millions US$ Millions

137.1 53.1 10.4

75.8 33.3 6.1

55.2 24.8 4.8

43.8 19.1 3.7

33.9 13.5 3.0

158 706 045 114 669 450 114 669 450 114 669 450 114 669 450 999 848 630 682 286 559 160,537 91 736

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Financial and Shareholder InformationConsolidated Financial Statements

30 September 2008Approval of annual financial statements and annual compliance certificate Report of the Directors Statement of Directors responsibilities Report of the Independent Auditors Group consolidated profit and loss account Statement of changes in equity Group consolidated balance sheet Company balance sheet Group consolidated cash flow statement Notes to the financial statements Agenda Form of Proxy Notes to the Proxy Form 47 48 52 53 54 55 56 57 58 59 Appendix 1 Appendix 2 Appendix 2

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Financial and Shareholder InformationApproval of Annual Financial Statements & Annual Compliance CertificateApproval of Financial StatementsThe Annual Financial Statements that appear on pages 54 to 81 were approved by the Board of Directors on the 21st November 2008 and signed on its behalf by:

Dr. Jacob Mwanza Chairman

Nancy Hart Finance Director

Lusaka: 21st November 2008

Annual Compliance CertificatePursuant to the requirements of schedule 18 to the rules of the Lusaka Stock Exchange, I the undersigned Danny Shaba Museteka being the duly appointed and registered Secretary certify to the Lusaka Stock Exchange that Zambeef Products Plc has during the twelve months ended Septemeber 2008, complied with every disclosure requirement for continued listing on the Lusaka Stock Exchange imposed by the Board of the Exchange during that period. In addition, I hereby confirm that for the year ended 30 September 2008, the company has lodged with the Registrar of Companies all such returns as are required by a public company in terms of the Companies Act 1994 and that all such returns are true and correct.

Danny Shaba Museteka Company Secretary This: 21st day of November 2008

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Financial and Shareholder InformationReport of the DirectorsThe Directors have pleasure in presenting their report of the activities of the company and the group for the year ended 30 September 2008.

1 PRINCIPLE ACTIVITIES

Zambeef Products PLC and its Subsidiaries (Group) is one of the largest agri-businesses in Zambia and the region. The Groups principal activities are cropping operations as well as the production, processing and retailing of beef, chicken, pork, eggs, milk, dairy products, wheat products, leather products and edible oils throughout Zambia and West Africa.

2 THE COMPANY

The company floated on the Lusaka Stock Exchange on 14 February 2003 when it became a public limited company. The company is incorporated and domiciled in Zambia. Business Address Plot 1164, Nkanchibaya Road Rhodes Park Lusaka Zambia Postal Address Private Bag 17 Woodlands Lusaka Zambia

3 SHARE CAPITAL

Details of the companys authorised and issued share capital are included in note 18 to the financial statements.

4 RESULTSThe Groups results are as follows: 2008 K Million 492 698 44 195 (5 919) 38 276 (908) 37 368 2007 K Million 291 971 28 212 (4 688) 23 524 (24) 23 500

Turnover Profit before taxation Taxation Profit after taxation Profit attributed to minority interest Profit attributed to the shareholders of Zambeef Products Plc

5 DIVIDENDS

During the year an interim dividend of K2 100 million (2007 K1 500 million) was paid to the shareholders. A final dividend of K11 500 million has been proposed by the companys Board of Directors. This compares to a final dividend of K8 000 million paid in the previous year. The directors propose to carry the remaining profit for the year of K23 767 million to reserves (2007 K14 000 million).

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Financial and Shareholder InformationReport of the Directors [continued]6 SEGMENTAL REPORTINGContribution to the consolidated turnover and gross profit of the group are as follows: Turnover Turnover Beef Chicken Pork Crops Stock Feed Eggs Fish Milk ZamChick Inn Edible Oils Bakery Flour Leather Shoe Master Meats - Nigeria Master Meats- Ghana Other Total Less: Intragroup sales Group total 2008 K million 166 222 51 425 28 082 78 869 35 715 8 009 2 505 32 202 7 255 119 971 9 260 21 803 6 948 1 898 16 248 5 902 3 876 596 190 (103 492) 492 698 2007 K million 134 929 43 318 15 984 46 612 24 323 7 341 1 266 28 797 6 804 3 047 10 626 7 012 2 284 12 389 2 983 347 716 (55 745) 291 971 Change % 23 19 76 69 47 9 98 12 7 204 105 (1) (17) 31 30 2008 K million 61 589 11 303 12 128 43 156 4 415 3 186 776 19 158 2 062 22 274 2 247 3 314 1 679 387 1 995 749 463 190 881 Gross Profit 2007 K million 47 065 12 439 2 013 25 507 4 951 3 812 751 21 325 2 450 758 438 3 483 901 2 416 147 128 456 Change % 31 (9) 503 69 (11) (16) 3 (10) (16) 196 657 (52) (57) (17) 215

190 881

128 456

7 MANAGEMENTSenior Management Carl Irwin Francis Grogan Yusuf Koya Nick Wilkinson Nancy Hart Diego Casilli Danny Museteka Murray Moore Ebraham Israel Sushmit N Maitra Jones Kayawe David Mynhardt Carl Rorbye Rob Boucher Raymond Strover Leon Gunter Richard Franklin Alaister McLeod Justin Pigou Jacob Erasmus John Stephenson Lufeyo Nkhoma Position Joint Managing Director Joint Managing Director Executive Director Executive Director Finance Director Managing Director Zamanita Company Secretary General Manager - Food Processing Operations International Retailing Manager Business Solutions Manager Technical Director - Zamanita Limited General Manager - Farming (Sinazongwe) General Manager - Farming (Huntley) General Manager - Farming (Chiawa) General Manager - Nanga Farms PLC General Manager - Stock Feed General Manager - Zamleather Limited General Manager - Poultry General Manager - Dairy General Manager - Copperbelt General Manager - Master Meat Nigeria General Manager - Master Meat Ghana

49

Financial and Shareholder InformationReport of the Directors [continued]Senior Management [cont] Philip Diedericks John Nkonjela James Banda Lloyd Mwiinga Sanjay Kumar Ryan Stassen Clement Mulenga Mabvuto Mbao Hilary Anderson David Ngambi Amos Wambili Eddie Tembo Justo Kapulande Pravin Abraham Ernest Gondwe Bartholomew Mbao Peter Wandira Francis Mandamona Walter Roodt Wilson Mutale Ragu Kulkarni Theo de Lange Gert Zietsman Christabel Malijani Position Financial Manager Finance Manager - Zambeef Products PLC Finance Manager - Zambeef Retailing Limited Finance Manager - Nanga Farms PLC Finance Manager - Zamanita Limited Retailing Operations Manager Retailing Regional Manager Retailing Regional Manager Retailing Regional Manager Human Resource Manager Human Resource Manager - Zamanita Limited Chief Security Manager Public Relations Manager Group Internal Auditor Masterpork Plant Manager Milk Factory Manager Mill Manager Cattle Ranch Manager Animal Nutritionist Shoe Plant Manager Tannery Manager Technical Manager Workshop Manager Environmental, Health & Safety Manager

8 DIRECTORS AND SECRETARYThe directors who served during the financial year and at the date of this report were as follows: J Mwanza R Clyde Anderson C Irwin F Grogan H Duckworth J Rabb L Sikutwa D Phiri I Muyenga A Fleming A Chibumba Y Koya N Hart D Casilli N Wilkinson D Museteka Chairman

(Alternate M Shnaps) Retired 6 June 2008 (Alternate B Dowden) Appointed 6 June 2008 Appointed 2 January 2008 Appointed 19 September 2008 Company Secretary

9 DIRECTORS INTERESTSJ Mwanza R Clyde Anderson C Irwin F Grogan H Duckworth J Rabb

The directors held the following interests in the companys ordinary shares at the balance sheet date: Beneficial 850 000 Non-Beneficial 1 537 545 4 567 373 4 730 747 4 698 120 5 024 920

50

Financial and Shareholder InformationReport of the Directors [continued]9. DIRECTORS INTERESTS [continued]L Sikutwa A Chibumba I Muyenga A Fleming Y Koya N Hart D Casilli N Wilkinson Beneficial 1 160 14 323 17 152 Non-Beneficial 679 864 8 266 471 4 438 516 33 943

882 635 There are no other shareholders who hold more than 5% of the issued share capital of the company

10 EMPLOYEES

The group employs 3 485 full time employees (2007 1 661) and total salaries and wages were K45 717 million for the year ended 30 September 2008 (2007 K30 052 million). The company employs 622 full time employees and total salaries and wages were K6 551 million (2007 K6 600 million). The average number of staff for each month in the year was as follows: Oct 07 1 673 Nov 1 727 Dec 1 735 Jan 08 2 073 Feb 2 176 Mar 2 154 Apr 2 384 May 2 535 June 2 538 July 3 189 Aug 3 414 Sept 3 485

11 GIFTS AND DONATIONS

The group made donations of K145 million (2007 K31.5 million) to a number of activities which include Kasisi Orphanage, Cheshire Homes, Kaoma Orphanage, Liteta Invalid Compound, Mother of Mary Hospice, Jon Hospice and Kabwe High Security Prison.

12 EXPORT SALES 13 FIXED ASSETS

The group made exports of US$2.04 million during the year (2007 US$1.9 million).

The Group purchased assets totalling K220 515 million during the year (2007 K33 762 million).

14 ANNUAL FINANCIAL STATEMENTS 15 AUDITORS

The annual financial statements set out on pages 54 to 81 have been approved by the directors.

In accordance with the provisions of the Articles of Association of the company the auditors, Messrs Grant Thornton, will retire as auditors of the company at the forthcoming Annual General Meeting, and having expressed their willingness to continue in office a resolution for their re-appointment will be proposed at the Annual General Meeting. By order of the Board

Danny Shaba Museteka Company Secretary

Date: 21 November 2008

51

Financial and Shareholder InformationStatement of the Directors ResponsibilitiesCompanies Act requires the directors to prepare financial statements for each financial year which give a true and fair view of the financial position of Zambeef Products PLC and its subsidiaries and of its financial performance and its cash flows for the year then ended. In preparing such financial statements, the directors are responsible for: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement; selecting appropriate accounting policies and applying them consistently; make judgements and accounting estimates that are reasonable in the circumstances; and state whether applicable accounting standards have been followed; and preparing the financial statements in accordance with the International Financial Reporting Standards, and on the going concern basis unless it is inappropriate to presume that the company and the group will continue in business. The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 1994. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Board of Directors confirm that in their opinion: (a) the financial statements give a true and fair view of the financial position of Zambeef Products PLC and its subsidiaries as of 30 September 2008, and of its financial performance and its cash flows for the year then ended; (b) at the date of this statement there are reasonable grounds to believe that the company and the group will be able to pay its debts as and when these fall due; and (c) the financial statements are drawn up in accordance with International Financial Reporting Standards. This statement is made in accordance with a resolution of the directors. Signed at Lusaka on 21 November 2007

Dr. Jacob Mwanza Chairman

Nancy Hart Finance Director

52

Financial and Shareholder InformationReport of the AuditorsWe have audited the accompanying financial statements of Zambeef Products PLC and its subsidiaries, which comprise the balance sheet as at 30 September 2008, and the income statement, statement of changes in equity and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes. MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS As described on page 52 management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. AUDITORS RESPONSIBILITY Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements. In making those risk assessments, the auditor considers internal control relevant to the groups preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the groups internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. OPINION In our opinion, the financial statements give a true and fair view of the financial position of Zambeef Products PLC and its subsidiaries as of 30 September 2008, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS In our opinion, the financial statements of Zambeef Products PLC and its subsidiaries as of 30 September 2008 have been properly prepared in accordance with the Companies Act 1994, and the accounting and other records and registers have been properly kept in accordance with the Act.

Chartered Accountants

Wesley M Beene Partner Lusaka: 21st November 2008

53

Financial and Shareholder InformationGroup Consolidated Profit and Loss AccountFor the year ended 30 September 2008 Notes Group 2008 K Million Turnover Cost of sales Gross profit Other operating income Administrative expenses Finance costs Profit before taxation Income tax expense Profit after taxation Profit attributed to minority interest Profit attributed to the subsidiaries of Zambeef Products Plc Dividend paid/proposed (gross) Transfer from revaluation reserve Retained profit for the period Retained profits at 1 October Retained profits at 1 September Weighted Average Earnings per share (Kwacha) 8 6 7 5 492 698 (301 817) 19 0881 736 (139 404) (8 018) 44 195 (5 918) 38 276 (909) 37 368 (13 600) 2 538 26 306 76 645 102 951 270.92 2007 K Million 291 971 (163 515) 128 456 244 (97 631) (2 857) 28 212 (4 688) 23 524 (24) 23 500 (9 500) 2 285 16 285 60 360 76 645 204.94

54

Financial and Shareholder InformationStatements of Changes in Equity30 September 2008

Group statement of changes in equityShare Capital K Million 10 Share Premium K Million 3 211 Capital Reserve K Million 14 766 (59) 49 38 (1 500) (8 000) 105 115 (105) 3 106 (44) (74) (2 100) (11 500) 18 26 159 98 373 158 487 259 966 (118) (2 538) 72 394 2 538 102 951 (2 285) 74 932 2 285 76 645 37 368 154 754 37 368 (74) (2 100) (11 500) 98 391 158 513 435 352Revaluation

Reserve K Million 27 833

Retained Profits K Million 60 360 23 500

Total K Million 91 429 23 500 (59) 49 384 (1 500) (8 000)

At 1 October 2006 Profit for the year Arising on consolidation Surplus on valuation Dividends paid Dividend Proposed Capitalisation issue Transfer At 30 September 2007 Profit for the year Arising from consolidation Dividend paid Dividend proposed Rights issue Issue of shares Transfer At 30 September 2008

Company statement of changes in equityShare Capital K Million 10 Share Revaluation Premium Reserve K Million 3 211 K Million 20 839 27 772 (1 500) (8 000) 105 115 (105) 3 106 (1 573) 47 038 1 573 70 619 24 376 (2 100) (11 500) 18 26 159 98 373 158 487 259 966 (586) 46 452 586 81 981 120 879 24 376 (2 100) (11 500) 98 391 158 513 388 559 Retained Profits K Million 57 122 21 425 Total K Million 81 182 21 425 27 772 (1 500) (8 000)

At 1 October 2006 Profit for the year Arising on consolidation Surplus on valuation Dividends paid Dividend Proposed Capitalisation issue Transfer At 30 September 2007 Profit for the year Arising from consolidation Dividend paid Dividend proposed Rights issue Issue of Shares Transfer At 30 September 2008

55

Financial and Shareholder InformationGroup Consolidated Balance SheetNotes 30 September 2008 Group 2008 2007 K Million K Million

ASSETS Non-current assets Property, Plant and Equipment Held to maturity financial assets Goodwill Deferred Tax Asset 10 12 9 7 373 416 11 760 69 801 515 455 491 Current assets Biological assets Inventories Trade and other receivables Amounts due from related companies Income Tax recoverable Total current assets Total assets EQUITY AND LIABILITIES Capital and reserves Share capital Share premium Reserves Non-current liabilities Interest bearing liabilities Obligations under finance leases Deferred liability Deferred tax liability Current liabilities Interest bearing liabilities Obligations under finance leases Trade and other payables Amounts due to related companies Taxation payable Dividends payable Cash and cash equivalents Total current liabilities Minority interest Total equity and liabilities 13 14 15 16 7 69 363 141 144 48 883 2 367 1 692 263 449 718 940 38 590 36 179 18 598 29 93 396 265 464 172 068 172 068

18 19

159 259 967 175 226 435 352 46 618 644 4 500 22 959 74 721 16 315 2 436 89 013 43 276 11 500 85 192 204 775 4 092 718 940

115 3 106 151 533 154 754 36 675 1 689 3 960 11 875 54 199 5 708 2 123 21 210 1 180 1 525 8 000 16 683 56 431 80 265 464

20 21 22 7

20 21 23 29 7 17

The financial statements on pages 54 to 81 were approved by the Board of Directors on 21 November 2008 and were signed on its behalf by:

56

Dr. Jacob Mwanza Chairman

Nancy Hart Finance Director

Financial and Shareholder InformationCompany Balance Sheet30 September 2008 Notes Company 2008 K Million ASSETS Non-current assets Property, Plant and Equipment Investment in subsidiaries Amount due from Group company Held to maturity financial assets Current assets Biological assets Inventories Trade and other receivables Amounts due from related companies Income Tax recoverable Total current assets Total assets EQUITY AND LIABILITIES Capital and reserves Share capital Share premium Reserves Non-current liabilities Interest bearing liabilities Defered liability Deferred taxation Current liabilities Interest bearing liabilities Trade and other payables Amounts due to related companies Taxation payable Dividends payable Cash and cash equivalents Total current liabilities Total equity and liabilities 10 11 12 172 588 166 729 5 205 11 760 356 282 47 575 47 648 7 502 40 871 963 144 559 500 841 110 754 1 984 112 738 38 590 22 696 5 279 32 849 99 414 212 152 2007 K Million

13 14 15 16 7

18 19

159 259 967 128 433 388 559 28 058 601 14 042 42 701 6 888 16 811 13 381 11 500 21 001 69 581 500 841

115 3 106 117 658 120 879 36 675 588 10 739 48 002 5 708 10 207 456 1 465 8 000 17 435 43 271 212 152

20 22 7

20 23 24 7 17

The financial statements on pages 54 to 81 were approved by the Board of Directors on 21st November 2008 and were signed on its behalf by:

Dr. Jacob Mwanza Chairman

Nancy Hart Finance Director

57

Financial and Shareholder InformationGroup Consolidated Cash Flow Statement30 September 2008 Group 2008 K Million Cash (outflow) inflow (on)/from operating activities Profit before taxation Interest paid Depreciation Loss on disposal of assets Decrease/(Increase) in Biological assets Decrease/(Increase) in Inventory Decrease/(Increase) in Trade and other receivables Decrease/(Increase) in Amount due from related companies (Decrease)/Increase in Trade and other payables (Decrease)/Increase in Amount due to related companies (Decrease)/Increase in Deferred Liability (Decrease)/Increase in Minority interest Net cash inflow/(outflow) from operating activities Returns on investments and servicing of finance Interest paid Dividends paid Net cash outflow on returns on investments and servicing of finance Taxation Income Tax paid Investing Activities Purchase of Property, plant and equipment Investment in held to maturity financial assets Purchase of goodwill Proceeds from sale of fixed assets Net cash outflow on investing activities Net cash outflow before financing Financing Proceeds from issue of shares Long term loans paid Receipt from long term loans Lease finance received Net cash inflow from financing Decrease in cash and cash equivalents Cash and cash equivalents at 1 October 2007 Cash and cash equivalents at 30 September 2008 Represented by: Bank balances and cash Bank overdrafts 44 195 8 018 19 039 (65) (30 773) (104 965) (30 285) (2 338) 67 802 (1 137) 540 3 029 (26 941) (8 018) (10 100) (18 118) 2007 K Million 28 212 2 857 11 918 8 (7 797) (11 346) (9 497) (28) 7 914 363 (1 034) 17 21 587 (2