Nampak Limited · JSE:NPK
Nampak — H1 2025 Earnings Presentation
40 slides from Nampak's earnings presentation, May 2025
Slide 1: Interim results for the half year ended 31 March 2025
Interim results for the half year ended 31 March 2025 nampak.com
Slide 2: Phil Roux, Chief Executive Officer
Phil Roux Chief Executive Officer
Slide 3: Two-year roll back
Two-year roll back From To ▸ Distressed assets/undercapitalised ▸ Recapitalised/revitalised balance sheet ▸ Crippling debt ▸ Structurally sound balance sheet ▸ Fractured, ailing and risk-prone portfolio ▸ Focused portfolio strategy ▸ Stakeholder trust deficit ▸ Confidence restored ▸ Bloated cost bas
Slide 4: Can manufacturing
Can manufacturing Aluminium 2-piece can manufacturing pushes industrial limits Precision Rivals aerospace Speed Outpaces automotive Complexity Matches semiconductors Producing 3 000 cans per minute with tolerances under 0.001mm (1 micron) Nampak interim results for the half year ended 31 March 2025
Slide 5: Bill Campbell quote on outworking the job
“No one has ever lived to outwork the job. It will always be bigger than you… ... you’re not going to outwork it.” Bill Campbell 04
Slide 6: Financial snapshot 1H25 vs 1H24
Financial snapshot 1H25 vs 1H24 Abridged income statement (continuing operations) Change 1H25 1H24 (%) Revenue 5 671 5 093 11 Trading profit 764 626 22 Trading profit margin (%) 13.5 12.3 EBITDA 1 093 1 021 7 EBITDA margin (%) 19.3 20.0 Operating profit 952 887 7 Operating margin (%) 16.8 17.4 Nampa
Slide 7: Salient features
Salient features 1 Disabling macroeconomic environment 2 Stifling socio-political climate 3 Nampak on a steady footing 4 Beverage installation limits full potential 5 Stellar Diversified performance 6 Sustained Angolan recovery 7 Innovation can format trending Nampak interim results for the half yea
Slide 8: Financial overview: positive trend
Financial overview Positive trend Abridged income statement (continuing operations) CAGR 1H25 1H24 1H23 (%) Revenue 5 671 5 093 4 794 9 Trading profit 764 626 157 121 Trading profit margin (%) 13.5 12.3 3.3 EBITDA 1 093 1 021 221 123 EBITDA margin (%) 19.3 20.0 4.6 Operating profit/(loss) 952 887 (7
Slide 9: Introduction to COO
Introduction to COO 1 30 years MD/Exec role experience having undertaken business optimisation and turnarounds 2 Worked across multiple geographies 3 Contracted two years ago to improve Diversified SA 4 Andrew's succession ensures continuity of strategy and culture Nampak interim results for the hal
Slide 10: Andrew Hood, Chief Operating Officer
Andrew Hood Chief Operating Officer
Slide 11: Beverage South Africa poised for growth
Beverage South Africa poised for growth Beverage South Africa Contribution to group Revenue (%) Operating profit (%) R million 1H25 1H24 %∆ Revenue 3 410 3 187 7 Trading profit 452 428 6 Trading margin 13.3 13.4 60% 47% Operating profit 451 425 6 Operating margin (%) 13.2 13.3 Performance drivers Pe
Slide 12: Diversified stabilised and excels
Diversified stabilised and excels Diversified Contribution to group Revenue (%) Operating profit (%) R million 1H25 1H24 %∆ Revenue 1 674 1 463 14 Trading profit 216 145 49 Trading margin 12.9 9.9 30% 23% Operating profit 215 127 69 Operating margin (%) 12.8 8.7 Performance drivers Performance inhib
Slide 13: Angola sustains momentum
Angola sustains momentum Beverage Angola Contribution to group Revenue (%) Operating profit (%) R million 1H25 1H24 %∆ Revenue 512 443 16 Trading profit 130 98 33 Trading margin 25.4 22.1 9% 13% Operating profit 127 96 32 Operating margin (%) 24.8 21.7 Performance drivers Performance inhibitors ‣ Ca
Slide 14: Emerging metal can packaging trends
Emerging metal can packaging trends Trends Implications ▸ Energy drink market growth Invest in capacity ▸ 500ml value pack offering ▸ Wine in a can and RTDs Leading supplier of 200ml and 250ml (Ready to drink) ▸ Tactile and matt cans Scope versatility ▸ Coating regulatory changes Converting food and
Slide 15: COO operational focus
COO operational focus 1 Seamless CEO transitioning 2 Strategic and cultural continuity 3 Growth articulation and manufacturing efficiency focus 4 ritical project management C — capital expansion and footprint evaluation 5 everage customer B introduction and engagement 6 Broader stakeholder engagemen
Slide 16: Glenn Fullerton, Chief Financial Officer
Glenn Fullerton Chief Financial Officer
Slide 17: Financial overview (continuing operations)
Financial overview (continuing operations) Performance step change: 2X operating leverage Group revenue of Trading profit of Operating profit of R5.7bn from R5.1bn ▲ 11% R764m from R626m ▲ 22% R952m from R887m ▲ 7% Beverage SA ▲ 7% Beverage SA ▲ 6% ▸ R100m interim Covid-19 insurance claim ▸ R65m pen
Slide 18: Financial overview: steady progress
Financial overview Steady progress Disposal facility of Net debt of R3.1bn Cash generated from operations R2.6bn (excluding capitalised leases) before working capital changes of fully settled, ahead of schedule ▾ R1.5bn from R4.6bn in 1H24 R1.2bn ▲ 38% from R905m in 1H24 ▸ Contributes to future lowe
Slide 19: Abridged statement of comprehensive income
Abridged statement of comprehensive income Volume growth and lower interest costs drive profitability R million 1H25 1H24 %∆ ‣ Revenue growth ‣ Profit before tax up 58% • Beverage SA • Improved trading Revenue 5 671 5 093 11 – Volume growth • Lower finance costs Trading profit 764 626 22 – Price man
Slide 20: Performance overview
Performance overview Revenue growth and improved operating margins Revenue (R'm) Operating profit bridge (R'm) 1H25 5 671 Increase 88 5 093 1H24 Decrease 3 922 Total 3 410 3 187 3 630 952 31 26 (80) 887 1 674 1 463 512 443 75 Beverage SA Beverage Beverage Diversified SA Corporate Total Operating Bev
Slide 21: Net finance costs down 38%
Portfolio optimisation and lower interest rates drive net finance costs down 38% Net finance costs (R'm) ‣ Lower interest rates on financing package Financing transaction costs 926 Finance costs on lease liabilities ‣ Disposal proceeds of R1.5bn 32 3% Finance costs on loans/bank bonds ‣ 33% reductio
Slide 22: Net profit performance value drivers
Net profit performance value drivers Improved trading profit, lower finance costs Continuing operations — Profit for the period bridge (R'm) Increase Decrease 176 4 Total 138 ▲ 15% 13 503* (181) (85) 439 Profit for the period Trading profit Capital and Impairments Finance costs Share of net loss Inc
Slide 23: "Clean" HEPS growth of 31%
"Clean" HEPS growth of 31% 1H25 1H24* 1H25 1H24* (R'm) (R'm) (cps) (cps) Headline earnings 471 448 5 683.5 5 410.4 Adjustments (post tax) (127) (185) (1 532.2) (2 235.9) Pension fund surplus (47) (567.7) Covid-19 interim insurance claim (80) (964.5) Post-retirement medical aid gain (212) (2 557.6) O
Slide 24: Abridged statement of financial position
Abridged statement of financial position Structurally sound balance sheet R million 1H25 1H24 %∆ ‣ Inventories ‣ Assets and liabilities Property, plant, equipment and investment property 3 573 3 307 8 • Active management held for sale and improved forecasting • Bevcan Nigeria and I&CS Other non-curr
Slide 25: Capital expenditure remained tightly controlled
Capital expenditure remained tightly controlled Capital expenditure and depreciation (R'm) ‣ Asset base remains well capitalised Replacement 393 Expansion ‣ Assets well maintained Depreciation charge 353 ‣ Line 2 Springs upgrade completed and 95 capitalised 297 236 ‣ Enhanced capital assurance revie
Slide 26: Net debt reduction: Nigeria disposal a game changer
Net debt (excluding finance leases) reduction of 30% Nigeria disposal: a game changer Net debt movement (R'm) R million 1H25 % Increase Cash generated from operations 1 247 Decrease Net working capital changes (742) 4 436 423 Total Replacement capex (106) Free cash flow generated 399* 100 Finance co
Slide 27: Net debt (including lease liabilities)
Net debt (including lease liabilities) Derisked forex profile Net debt (excluding lease liabilities) (R'm) Net debt — debt reduction profile (R'm) Local Increase 3 104 Foreign Decrease 4 639 Total 247 5% 4 436 89 2% 2 597 (507)* Net debt as at Proceeds from Net debt 4 392 95% 4 347 98% 3 104 31 Marc
Slide 28: Abridged statement of cash flows
Abridged statement of cash flows R1.5bn disposal proceeds utilised to repay debt R million 1H25 1H24 %∆ ‣ Strong cash flows from ‣ Net proceeds of R1.5bn operations before working from disposals Cash generated from operations before working capital 1 247 905 38 capital changes positively Net working
Slide 29: Working capital position
Revenue growth and disposals impact working capital position Changes in working capital — Total operations Continuing operations: Discontinued operations: R million 1H25 1H24 R374m (50%) R368m (50%) (Increase)/decrease in inventories (21) 355 ‣ Increased revenue required ‣ Lower creditor funding for
Slide 30: Sustaining the investment thesis
Sustaining the investment thesis Disposal Sound and Margin Lower ROIC > WACC facility significantly expansion interest rates settled in full derisked achieved and reduced balance sheet funding costs with lower gearing Nampak interim results for the half year ended 31 March 2025 29
Slide 31: Phil Roux, Chief Executive Officer
Phil Roux Chief Executive Officer
Slide 32: Trusted brands belong in our cans
Promising performance outlook 1 tabilised and more predictable S 5 ngola offers upside potential A earnings profile supported by increased filling capacity 2 Market leadership in core categories 6 Defensive portfolio structure 3 Beverage can format sustains 7 ampak brand proposition N growth and inn
Slide 33: Organisational stability
Organisational stability We know We know where We know what who we are we are going is important ▸S elf-directed leadership ▸P rofitable top line growth ▸D emand led/customer ▸A ct like owners ▸S ustained cost centric ▸R espected corporate competitiveness ▸P erformance anatomy citizens ▸ I nvest jud
Slide 34: Annexures
Annexures Nampak interim results for the half year ended 31 March 2025
Slide 35: Operating profit before net impairment losses
Operating profit before net impairment losses Reconciliation of operating profit before net impairment loss reversals/(losses) to trading profit (continuing operations) R million 1H25 1H24 * FY24 Operating profit before net impairment losses 952 899 1 244 Adjusted for capital and other items (exclud
Slide 36: Tax rate reconciliation
Tax rate reconciliation Reconciliation of statutory to effective tax rate % 1H25 1H24 FY24 Statutory tax rate 27.0 27.0 27.0 Increase in tax rate due to: 9.7 23.6 30.3 Disallowed interest charges 5.5 11.2 Foreign currency translation impact 1.6 6.9 Adjustment for prior years 1.2 Withholding and othe
Slide 37: Reconciliation of basic earnings to headline earnings
Reconciliation of basic earnings to headline earnings R million 1H25 1H24* %∆ FY24 Basic earnings 503 439 15 626 Adjusted for: Net impairment losses 13 (471) Net profit on disposal of plant, equipment and non-current assets classified as held for sale (32) Tax effects and outside shareholders’ inter
Slide 38: Working capital reconciliation
Working capital reconciliation Trade Trade and other and other R million Inventory receivables payables Total Movement per SFP 52 (295) (302) (545) Assets classified as held for sale 434 358 (207) 585 Movement between FY24 and 1H25 486 63 (509) 40 Items related to FCTR and disposal of businesses (50
Slide 39: Investor Relations
Investor Relations Teboho Lempe E [email protected] M +27 11 719 6300 nampak.com
Slide 40: Thank you
Thank you nampak.com