Nampak Limited · JSE:NPK
Nampak — 16th Annual Sun City Conference 2015
17 slides from Nampak's conference presentation, Mar 19, 2015
Slide 1: Our Africa growth story
Our Africa growth story 16th Annual Sun City Conference 2015 18 – 19 March 2015
Slide 2: Forward looking statements
We may make statements that are not historical facts and relate Forward looking to analyses and other information based on forecasts of future 2 statements results and estimates of amounts not yet determinable. These are forward-looking statements as defined in the U.S. Private Securities Litigation
Slide 3: Our strategy is two-pronged
Our strategy is two-pronged 3 Unlock further value Accelerate from base business African growth › Active portfolio management, including › Focus on sub-Saharan Africa possible divestitures › Growth through greenfield investment › Stringent cost management and acquisitions in metals, glass and › Work
Slide 4: Trading profit contribution from operations outside South Africa at 30%
Trading profit contribution from operations outside South Africa at 30%… 4 REVENUE Revenue (%) (%) 11 11 17 South Africa 15 Rest of Africa United Kingdom 72 74 2014 2013 TRADING PROFIT Revenue (%) (%) 5 16 9 South Africa 7 Rest of Africa 47 United Kingdom Corporate 26 60 30 2014 2013
Slide 5: …an increase from 6% in 2010
…an increase from 6% in 2010 5 R million Bevcan Nigeria 700 Acquisition 616 Bevcan Angola ramp-up to 600 full capacity and strong performance from paper and general can businesses 499 500 400 316 300 Bevcan Angola start-up 200 122 100 83 0 2010 2011 2012 2013 2014
Slide 6: 2014 and 2013 trading profit and margin
2014 and 2013 trading profit and margin 6 TRADING PROFIT MARGIN MILLION % 2014 2013 2014 2013 South Africa 970 1 142 6.7 8.5 Rest of Africa 616 499 18.7 18.2 United Kingdom 144 162 6.5 8.4 Corporate services 318 98 – – Group 2 048 1 901 10.3 10.5 › Challenging trading conditions in South Africa › St
Slide 7: Future growth will be driven through greenfields, acquisitions and organic expansion
Future growth will be driven through greenfields, acquisitions and organic expansion 7 Food and Paper other carton Plastic Bev cans/ and Liquid bottles cans drum Crown labels Corr Sack carton and jars Closure Crate Glass Angola X X X Ethiopia X X X X X Kenya X X X X X (fill) X Nigeria X X X X X X X
Slide 8: Our project pipeline
Our project pipeline 8 CONCEPT FEASIBILITY PLANNING EXECUTION DEVELOPMENT FINAL INVESTMENT DECISION › Angola Glass › Nigeria Bevcan › Nigeria Glass › Angola Bevcan Line 2 Line 2 › Angola Bevcan › Kenya Glass Line 3 › Rosslyn Bevcan › Ethiopia Glass Line 1 Conversion › Rosslyn Bevcan › Cape Town Line
Slide 9: The growth opportunity in SSA is driven by a variety of factors
The growth opportunity in SSA is driven by a variety of factors 9 › Improving conditions around policy Urban % of population certainty › Strengthening political commitment to private sector growth and job creation › Increased investment, high GDP growth rates (>5%), population growth (predominantly
Slide 10: Africa is not suffering from a lack of demand, but a lack of supply
“Africa is not suffering from a lack of demand, but a lack of supply” 10 › The consumer opportunity is motivated by five key elements: » The rise of the middle class » Exponential population growth » The dominance of youth » Rapid urbanisation » Fast adoption of digital technology › On average, the
Slide 11: Beverage consumption growth supports Nampak's strategy
The growth in alcoholic and non-alcoholic beverage consumption supports Nampak’s strategy 11 NIGERIA ANGOLA ETHIOPIA › 1 in 5 households is middle class › 1 in 3 households is middle class › 99% households are low income, › Middle class: 30% (2020) & ~40% (2030) › Middle class: 50% (2030) earn <$2/d
Slide 12: Rise of middle class supports trading up, increases use of packaging
Rise of middle class supports trading up, increases use of packaging 12 2 – 5% of all clear beer consumed in Africa Super premium beer 10 – 15% of all clear beer Premium beer consumed in Africa 70 – 80% of all clear beer Mainstream beer consumed in Africa 5 – 10% of all clear beer Value beer consume
Slide 13: Developments in agroprocessing a future growth area for packaging in Africa
Developments in agroprocessing a future growth area for packaging in Africa 13 › Africa has 60% of the world’s arable land › Developing agriculture as a business in Africa has the ability to make the continent the new frontier for growth in feeding the world » Nigeria is the second largest producer
Slide 14: Countering the risks and challenges of doing business in Africa
Countering the risks and challenges of doing business in Africa 14 › Political and country risk › Fiscal and momentary risk » Countries in which Nampak does » Nampak business predominantly done business have relatively lower in local currency linked to the US$ political risk » Brewers import between
Slide 15: Nampak investment proposition
Nampak investment proposition 15 Solid foundation Compelling African business growth story › Strong cash flow from base › Africa’s largest packaging company business with operations in South Africa and 12 › Offers packaging across the major countries in the rest of Africa packaging substrates (metal
Slide 16: Conclusion
Conclusion 16 › Nampak is well positioned to capitalise on the rest of Africa growth › An exciting pipeline of growth projects in East and West Africa › South African trading conditions expected to remain challenging; cost discipline and manufacturing excellence key to maintain competitiveness › The
Slide 17: Thank you
Thank you | 17