Kap Limited · JSE:KAP
Kap — 18 months to 30 June 2007 Earnings Presentation
22 slides from Kap's earnings presentation, June 2007
Slide 1: IAS Results Presentation
IAS Results Presentation 18 months to 30 June 2007 IAS Results Presentation, 18 months to 30 June 2007
Slide 2: Highlights
Highlights Revenue of R5.2 billion for the 18 months Headline earnings of 52.5c for the 18 months Acquisition of 60% of Brenner Mills and 100% of Caravelle Carpets Joint venture with Futuris to manufacture tufted carpeting in East London New compounding plant for gumboot division Capex for new
Slide 3: Income Statement
Income Statement 30 June 31 Dec 2007 2005 18 months 12 months Rm Rm Revenue 5,242.2 2,975.1 EBITDA 404.1 267.7 Operating profit 338.5 225.5 EPS 53.3 46.2 HEPS 52.5 45.7 Dividend 17 12 Tax rate 18.2% 18.5% IAS Results Presentation, 18 months to 30 June 2007
Slide 4: Balance Sheet
Balance Sheet 30 June 31 Dec 2007 2005 Rm Rm Assets Property, plant and equipment 709.1 529.5 Other non-current assets* 206.0 166.7 Inventory 789.8 535.3 Accounts receivable 684.8 516.8 Total assets 2,389.7 1,748.3 Equity and liabilities Equity 1,191.1 1,055.2 Non-current liabilities 114.5 118.8 Acc
Slide 5: Financial Structure
Financial Structure 30 June 31 Dec 2007 2005 Rm Rm Net interest bearing debt 516.6 233.1 Interest bearing debt/equity 43.4% 22.1% Interest cover 5.9 11.6 Current ratio 1.36 1.8 IAS Results Presentation, 18 months to 30 June 2007
Slide 6: Income Statement
Income Statement 30 June 30 June 2007 2006 12 months 12 months Rm Rm Revenue 3,673.5 3,127.5 EBITDA 282.1 275.3 Operating profit (2006 excl.pension surplus R20m) 239.5 227.7 EPS 36.2 50.0 HEPS 35.5 48.9 HEPS (2006 exluding pension fund surplus) 35.5 37.1 Dividend declared 17 12 Tax rate 19.7% 18.20%
Slide 7: Industrial Division
Industrial Division IAS Results Presentation, 18 months to 30 June 2007
Slide 8: Feltex
Feltex New “C” class Mercedes and new Toyota Corolla introduced during June ’07 Acquisition of Caravelle Carpets Futuris JV is now fully operational Consolidated PE and East London sites under one roof in East London IDZ New leather processing technology at FAL Domestic production figure
Slide 9: Feltex Domestic Production
Feltex Domestic Production 2003 2004 2005 2006 2007 2008 2009 2010 Cars Local Sales 176,340 200,264 210,976 215,311 190,000 205,000 230,000 270,000 Exports 114,909 100,699 113,899 119,171 110,000 130,000 155,000 180,000 Light Commercials Local Sales 102,007 123,467 146,933 159,469 180,000 200,000 22
Slide 10: Industrial Footwear
Industrial Footwear Turnover up 14,7% and operating profit up by 8% Safety footwear demand is steady Gumboots demand is still very strong new machine to be installed in December Compounding plant to manufacture raw materials Total sales 12.8% increase 12 months to June 06 2.56 million pa
Slide 11: Hosaf
Hosaf Turnover up 17,5% and operating profit up by 27% Tons sold 79,400 (June ’06 80,500) Global PET consumption has increased by 7.5% in 2007 and SA growth of 10% North American margins were at their lowest level in a decade during 2006. Closure of older technology capacity 350000T (9% of t
Slide 12: Consumer Division
Consumer Division IAS Results Presentation, 18 months to 30 June 2007
Slide 13: Bull Brand Foods
Bull Brand Foods Drop in margins High cost of weaners (6 month old cattle) High cost of maize Farming performance remains goods Standing days, mortalities, morbidities Cost saving initiatives Backgrounding of cattle (preconditioning) Drive for value added products Biltong plant I
Slide 14: Bull Brand Foods
Bull Brand Foods 25 20 15 10 5 0 Apr Apr Aug Aug Jul Jul Oct Oct Mar Nov Dec Feb May Jun Sep May Nov Dec Jan '06 Feb March Jun Sep Landed Price of W eaners R/KG Jan '07 Net selling price R/KG IAS Results Presentation, 18 months to 30 June 2007
Slide 15: Bull Brand Foods
Bull Brand Foods 25 20 15 10 5 0 May May March Mar Jul Jul Nov Nov Jan '06 Jun Aug Jan '07 Jun Aug Apr Apr Oct Oct Feb Sep Feb Sep Dec Dec Landed Price of W eaners R/KG Net selling price R/KG IAS Results Presentation, 18 months to 30 June 2007
Slide 16: Chicken vs Beef prices
Rand / Kg - 5.00 10.00 15.00 20.00 25.00 02-Jun-06 09-Jun-06 15-Jun-06 23-Jun-06 30-Jun-06 07-Jul-06 14-Jul-06 21-Jul-06 28-Jul-06 04-Aug-06 11-Aug-06 18-Aug-06 25-Aug-06 01-Sep-06 08-Sep-06 15-Sep-06 22-Sep-06 29-Sep-06 IAS Results Presentation, 18 months to 30 June 2007 06-Oct-06 13-Oct-06 20-Oct-
Slide 17: Jordan
Jordan Turnover up 11% and operating profit up by 69% Increase pressure from retailers for price points Strength of the brands China not as cheap as it used to be Offer far more variety Inferior raw materials sometimes used Local manufacture for long runs (core lines) New brand Steve
Slide 18: Glodina
Glodina Turnover up 8,7% and operating profit up by 21% Investment of R23m over 18 months to maintain competitiveness Hospitality remains a major focus area Excellent overall performance Glodina remains an excellent example in a textile industry that is full of restructuring and closures.
Slide 19: Brenner Mills
Brenner Mills Consolidated with effect from 1 May 2007 Improved staff morale because of solid financial backing Benefited from better purchasing in a rising market (6 weeks forward) Better prices for “chop” which is opposite to Bull Brand extra feed cost Cost saving on expenses, interest a
Slide 20: Corporate Action
Corporate Action Caravelle carpets Purchase price R15m Good operating profits during the period under review Joint venture with Futuris Plant now fully operational Expect a small operating profit in the first year Supply Mercedes in East London Brenner Mills Purchase price R18m for
Slide 21: Prospects
Prospects Focus on cash flow to drive debt equity below 40% Automotive division to benefit from increased build in second 6 months No major increase in Hosaf until 2009/2010 financial year Industrial footwear volumes up approximately 10% Bull Brand should recover quite strongly Maize pri
Slide 22: Thank You
Thank You IAS Results Presentation, 18 months to 30 June 2007
KAP — 18 months to 30 June 2007 Earnings Presentation on 6ix