RCL Foods Limited · JSE:RCL
RCL Foods — Investor Presentation (January 2014)
21 slides from RCL Foods's investor presentation, January 2014
Slide 1: Presentation to investors
Presentation to investors January 2014
Slide 2: Disclaimer
Disclaimer PLEASE READ THIS NOTICE CAREFULLY. IT APPLIES TO ALL PERSONS WHO VIEW THIS PART OF THE WEBSITE AND, DEPENDING UPON WHO YOU ARE AND WHERE YOU ARE SITUATED OR LIVE, IT MAY AFFECT YOUR RIGHTS. THIS PRESENTATION ("PRESENTATION") CONTAINS INFORMATION PERTAINING TO RCL FOODS LIMITED ("COMPANY")
Slide 3: Agenda
Agenda 1 Group overview 2 Business segments 3 Strategic priorities 4 Financial information 5 Equity capital raising 3 3
Slide 4: Presentation team
1 2 3 4 5 Group overview Presentation team Miles Dally Rob Field Chief Executive Officer Chief Financial Officer • Appointed: February 2003 • Appointed: July 2004 • Miles has 32 years’ experience in the consumer goods • Rob is a Chartered Accountant who qualified with industry and served as group Ma
Slide 5: RCL Foods in context
1 2 3 4 5 Group overview RCL Foods in context A member of the Rupert Family group of companies Rupert Family Food, Liquor Media & Banking Healthcare Insurance Industrial Infrastructure & Home care Sport RCL Foods is Remgro’s chosen platform for its food strategy in Sub-Saharan Africa 5
Slide 6: History and evolution
1 2 3 4 5 Group overview History and evolution Where did we come from? Apr 2013 May 2013 Jan 2014 Acquired 49% Acquired Acquired TSB interest in ZamChick FoodCorp Sugar Holdings 22,500 The recent acquisitions of Foodcorp and TSB Sugar 20,000 have transformed RCL 17,500 Foods from a chicken business
Slide 7: Key Group brands
1 2 3 4 5 Group overview Key Group brands Where are we today? Category Category Division Category Brands Position (1) Share (1) Peanut Butter 1 50% Rusks 1 39% Portfolio of compelling Mayonnaise 2 45% brands that deliver to Grocery consumer and customer Sorghum 2 29% needs Dry Pet Food - Cat (2) 2 ~
Slide 8: Investment highlights
1 2 3 4 5 Group overview Investment highlights What differentiates us? 1 Portfolio of leading consumer brands 2 6 Support of a Unique highly regarded integrated strategic business model shareholder 5 3 Experienced management Significant team with platform for strong expansion operational track recor
Slide 9: Agenda
Agenda 1 Group overview 2 Business segments 3 Strategic priorities 4 Financial information 5 Equity capital raising 9 9
Slide 10: Rainbow Chicken
1 2 3 4 5 Business segments Rainbow Chicken Integrated supply chain from “farm to fork” GP operation Agriculture Processing Grandparent Grandparent farms Parent farms Broiler • 4.7 million birds per week chicks farms Rearing Laying Hatching Rearing Laying Hatching Growing Processing 4 Broilers plant
Slide 11: Foodcorp
1 2 3 4 5 Business segments Foodcorp Compelling consumer brands • Foodcorp is a leading South African manufacturer of a diversified portfolio of quality branded food products from basic essentials to top-end desserts and convenience meals • The market leader in five product categories, and its range
Slide 12: TSB Sugar
1 2 3 4 5 Business segments TSB Sugar Leading South African sugar producer • Engages in sugar cane agriculture, sugar manufacturing, marketing, sales and distribution • Operates three mills in South Africa, in close proximity to Mozambique with capacity to produce 700 000 tonnes of sugar p.a. • The
Slide 13: Vector Logistics
1 2 3 4 5 Business segments Vector Logistics Optimisation of outbound supply chain Services Manufacturers Primary Primary Principal Customer Sales Credit & (PBCS) Warehousing Transport Secondary Secondary Solutions Information (VCS) (VPT) Distribution Distribution (VSS) Management What we do Plant B
Slide 14: Zam Chick / Zamhatch
1 2 3 4 5 Business segments Zam Chick / Zamhatch Strategic partner in Zambia • RCL Foods acquired a 49% stake in Zam Chick in April 2013 • Zam Chick is the chicken broiler operations of Zambeef, itself a fully integrated agri-business What we do • Zambeef is responsible for the day-to-day management
Slide 15: Agenda
Agenda 1 Group overview 2 Business segments 3 Strategic priorities 4 Financial information 5 Equity capital raising 15 15
Slide 16: Strategic priorities
1 2 3 4 5 Strategic priorities Strategic priorities Where are we headed? RCL Foods’ ambition is to create a diversified food business of scale with compelling brands that deliver to consumer and customer needs in Sub-Saharan Africa Innovating and investing Leveraging strategic Realising synergies in
Slide 17: Agenda
Agenda 1 Group overview 2 Business segments 3 Strategic priorities 4 Financial information 5 Equity capital raising 17 17
Slide 18: Unaudited pro forma financials
1 2 3 4 5 Financial information Unaudited pro forma financials The pro forma financial information below has not been audited. It has been presented for illustrative purposes only and may not fairly represent the financial performance or financial position of the company Revenue contribution 5 Chick
Slide 19: Debt and hedging profile
1 2 3 4 5 Financial information Debt and hedging profile Notes and sources: Pro forma (R million) 1 30 June 2013 1. Pro forma Statement of Financial Position of RCL Foods (circular to RCL Foods Shareholders dated 12 Pro forma Debt 6 568 December 2013) net debt 2. Includes R450 million investment in
Slide 20: Agenda
Agenda 1 Group overview 2 Business segments 3 Strategic priorities 4 Financial information 5 Equity capital raising 20 20
Slide 21: R2.5 bn equity capital raising
1 2 3 4 5 Equity capital raising R2.5 bn equity capital raising • RCL Foods is currently considering significant growth and expansion projects in South Africa and the rest of sub-Saharan Africa across the broader food and fast moving consumer goods space • In order to capitalise fully on these oppor