Investec Africa Conference Nampak Growth Strategy in Africa
Presented by: Andrew Marshall| Date Tuesday, 22 nd March 2011 Agenda
• An overview of Nampak in Africa
• Our presence on the continent
• Strategy and growth opportunities
| 2 Nampak in Africa
Ethiopia 1
Kenya 2
Nigeria 2 Tanzania 1 Angola Malawi 1 1
Zambia Mozambique Namibia 2 1 1 Botswana 1 Zimbabwe Swaziland 5 1
| 3 Statistical Overview 2010
Countries 12
Operations 19
Turnover R1 213m
Trading Profit inc fees earned offshore R120m
EBITDA R130m
Assets R1 412m
Capital expenditure R228m
Employees 2 000
| 4 Total Turnover Generated from Africa
Operations R1.2bn
Exports R1.3bn
R2.5bn
| 5 Revenue in Major Countries
Rm 500
400
300
200
100
0 Kenya Malawi Nigeria Zambia Tanzania
| 6 Exports to Africa
Others Kenya 7% 5% Swaziland 6% Namibia Mozambique 38% 8%
Zimbabwe 9%
Angola 12% Botswana 15%
R1.3bn
| 7 Our Presence on the African Continent
| 8 Nigeria
• 100% of Cartons & Labels
• Cigarette cartons
• Folding cartons
• Labels
• 57% of Nampak Nigeria
• Food and general cans
| 9 Nampak Nigeria
| 10 Nigeria - Cartons
• Established operation now with good skills and equipment
• Underpinned by 10 year supply agreement to BAT
• Good growth prospects in beer labels and FMCG multi-nationals
| 11 11 | 12 | 13 | 14 | 15 Non-Cigarette Business in Nigeria
| 16 Nigeria Metals
Shareholding Nampak 57% Public 43%
• Only two major independent players in metal packaging
| 17 17 Nigeria Metals Manufacturing Equipment
| 18 Nigeria Metals Manufacturing Equipment
| 19 Nigeria Metals Products
| 20 Angola
• Greenfield expansion
• $160m beverage can plant
• 700m cans per annum capacity
• Market estimated to be >1bn cans
• Contracts with major customers
• Due for commissioning in April 2011
• Revenues of >R500m in full year
• 30% equity partner
| 21 | 22 Angola Plant - Update | 24 East Africa
• Entered territory via acquisitions
• 4 factories
• Bullpack 49% – paper sacks
• Crown Cork 100% – crowns, food and general cans
| 25 East Africa
• Only 4 major independent players in metals
• Good manufacturing base in Kenya
• Substantial growth in the beverage sector
| 26 26 Nampak Kenya Manufacturing Facility
| 27 Nampak Kenya Manufacturing Facility
| 28 Nampak Kenya Manufacturing Facility
| 29 Tanzania Cans
| 30 Zambia
Mini Nampak
Liquid Paper & Plastic
Steel drums
Paper & Board
Crowns
Plastic crates
| 31 Zambia Liquid Packaging Equipment
| 32 Zambia Liquid Packaging Products
| 33 Zambia Rigid Plastics Products
| 34 Zambia Beer Labels
| 35 Zambia Folding Cartons
| 36 Zanbia Sugar Bags
| 37 Zambia Crowns
| 38 Malawi
• 60% of Packaging Industries Malawi
• Corrugated boxes mainly for tobacco
• Sorghum beer cartons
• Sacks
| 39 Packaging Industries Malawi
| 40 Malawi Corrugated Equipment
| 41 Malawi Liquid Cartons Manufacturing
| 42 Products made in Malawi
| 43 Swaziland
• Corrugated box operation supplying
mainly agricultural customers
| 44 Nampak Corrugated Swaziland
| 45 Mozambique
• 50% of Crown Mozambique
• Crowns for beverage bottles
• Only local manufacturer
| 46 Mozambique
| 47 Mozambique Manufacturing Equipment
| 48 Crowns made in Mozambique
| 49 Namibia
• PET bottle in-plant in Windhoek for
Namibia Beverages (Coca-Cola)
• Produce 20-25m bottles per annum
| 50 Botswana
• Milk and juice bottle plant
• Major customers – Clover and Sally Dairies
• Produce 20-25 million bottles per annum
| 51 Nampak Liquid Packaging Botswana
| 52 Zimbabwe
• Good growth prospects (tobacco / sacks)
• Indigenization Laws
• Political Stability
• Not full management control
• Adopt a wait and see attitude
| 53 53 Zimbabwe
Company Shareholding Products
Hunyani 39% Cartons, corrugated, sacks
Megapak 49% Crates, rigid plastics
CMB 100% Cans, rigid plastics
| 54 Hunyani
• Largest packaging company in Zimbabwe
2009 Financial Highlights US$ 000
Revenue 23 295
Profit before tax 576
Market cap 12 688
Net assets 27 577
| 55 Hunyani Corrugated
| 56 Hunyani Cartons & Labels
| 57 Hunyani Corrugated and Sacks Products
| 58 Hunyani Cartons & Labels Products
| 59 CMB Zimbabwe
| 60 CMB Zimbabwe
| 61 Nampak Zimbabwe Metals Factory
| 62 Zimbabwe Metals Products
| 63 Strategy and Growth Opportunities
| 64 Growth Strategy
• Build a market base through exports
• Establish local manufacture when critical mass achieved
• Diversify established manufacturing base to other Nampak
products
• Create hubs in key growth areas and trading blocks
• Follow major Nampak customers
| 65 65 Nampak in Africa – Regional Hubs
| 66 66 Multi-National Opportunities
• BAT • Cadbury • SAB Miller • Diageo • Heineken • Illovo Sugar • Coca Cola • Lafarge • Pepsi • Colgate Palmolive • Unilever • PZ Cussons • Nestle • Sara Lee • Diageo • Reckitt Benckiser
| 67 67 West Africa
68 West Africa - Strategy
• Expand cartons in Nigeria into non-cigarette markets
• Expand into other Nampak product lines
• Reinvest in metals production capability
• Consider acquisitions
• Leverage the technical competence of RSA
| 69 EAST AFRICA East Africa - Strategy
• Invest in plant capacity
• Follow brand owners in region
• Beverage
• Food
• Develop additional product ranges
• Consider acquisitions
• Leverage the technical competence of RSA
| 71 Revenue 2010
Rest of Europe Africa 22% 6%
R18.6bn Europe Rest of 8% Africa 8% South Africa 72% R15.9bn
South Africa After sale of Europe 84% Paper
| 72 Revenue Target in 5 Years
Europe 5% Rest of Africa 20%
South Africa 75%
| 73 Thank You
| 74