ORGANOGRAM. 70% Sucoma Malawi Nchalo Dwangwa. 60% Ubombo Sugar Swaziland. 90% Zambia Sugar

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1 ORGANOGRAM 100% Operations South Africa Eston Gledhow Merebank Noodsberg Pongola Sezela Umfolozi Umzimkulu 90% Zambia Sugar 76% Maragra Acucar SARL Mozambique 60% Ubombo Sugar Swaziland 55% Kilombero Sugar Tanzania 100% Monitor Sugar United States 70% Sucoma Malawi Nchalo Dwangwa 1

2 STRATEGIC INTENT Sugar and downstream Africa s leading, increasingly global, world-class lowest cost producer Add value to every stick of cane / beet Market leader Community involvement GROUP PROFILE A leading, global, low-cost sugar producer and significant manufacturer of high-value downstream products Operations in 7 countries: South Africa, Swaziland, Malawi, Zambia, Tanzania, Mozambique and United States Production: Sugar cane million tons Sugar Furfural Ethyl alcohol million tons tons 51,800 kl Ethyl alcohol - 51,800 Major supplier of sugar to Southern African consumer and industrial ial markets Exports to 94 countries - 38% of turnover Significant access to preferential markets in Europe and the United States 61% of sugar production and 77% by value is sold into stable domestic or premium priced markets (Zambia / Mauritius alters mix) High margin downstream production, largely export driven 2

3 ABRIDGED BALANCE SHEET R millions Entity Outside shareholders Deferred tax Borrowings Property, plant & equipment Investments Net current assets Gearing Interest Cover GROUP PRODUCTION SUGAR Tons 000 s Sugar Production Cane production South Africa Swaziland Malawi Zambia USA Tanzania* Mozambique* Illovo Group South Africa * Managed investments not yet consolidated 3

4 GROUP PRODUCTION - DOWNSTREAM Production Unit % World Furfural Furfural alcohol Diacetyl Acetoin Ethyl alcohol Lactulose Syryp tons tons kg kg kl tons tons % 11% 34% 10% Local 9.5% 70% Local CORPORATE STATISTICS Total capital employed Total fixed assets: $400 Million $390 Million Tons cane grown: - irrigated 2,6 - dry land 2,0 4,6 Million Tons Tons sugar produced: South Africa 1,270 Malawi,220 Swaziland,220 Mauritius,090 Tanzania,060 Mozambique,006 United States,175 2,0 Million Tons World Production 133 Million Tons Downstream Products: Molasses 550,000 Tons Ethyl alcohol 45 Million Litres Furfural 20,000 Tons 4

5 COMPETITIVE ANALYSIS 5 YR AVERAGES 1989/ /94 Country Cane Sucrose Factory Number Comment-Agricultural MT/Ha/Yr % Recovery of Mills Activities Labour Australia 68,8 15,1 89,8 26 Highly mechanised 6300 family operations Brazil 46,1 13,7 76,3 364 Partially mechanised Thailand 46,0 12,5 79,1 46 Mainly manual labour R.S.A. 42,9 13,1 85,5 15 Partially mechanised USA (Cane) 66,3 12,4 82,8 40 Totally mechanised USA (Beet) 43,5 16,7 81,9 36 Highly mechanised EU (Beet) 52,8 16,4 85,2 194 Totally mechanised PROJECTIONS (1999) Malawi 101,2 13,9 83,5 2 Mainly manual labour Mauritius 89,2 12,1 91,7 3 Partially mechanised Tanzania 70,8 12,6 80,5 4 Mainly manual labour Swaziland 100,0 14,0 88,1 3 Mainly manual labour AFRICA'S ADVANTAGES ARE PREDOMINANTLY CLIMATIC. THE TOTAL AGRICULTURAL LABOUR COST IS NOT A MAJOR ADVANTAGE TAKING INTO ACCOUNT PRODUCTIVITY AND THE LARGE NUMBERS EMPLOYED. RAWS COSTS OF PRODUCTION INDEPENDENT INTERNATIONAL SUGAR CONSULTANT - 98/99 US CENTS PER POUND WORLD Zimbabwe 6.89 Brazil 7.51 GROUP 7.51 S. Africa 9.95 Guatemala 8.68 Swaziland Australia 9.33 Malawi 8.76 Colombia Zambia 8.19 India Thailand Kenya USA Average (refined) EU (refined)

6 FUTURE ISSUES S.A. Sugar Act SADC Protocol U.S. Farm Bill / NAFTA EU Common Agricultural Policies: ACP/ LDC s Inclusion in group results of Mozambique and Tanzania MANPOWER STATISTICS ILLOVO EMPLOYEES ONLY Malawi Mauritius Mozambique RSA Swaziland Tanzania Total Industrial Agricultural Hotels Marketing & Sales Total Permanents Seasonals Total Labour % Illovo Cane 92,6% 66,8% 48,6% 10,4% 46,7% 83,4% However including labour employed by outgrowers supplying these Illovo results. Estimated Growers Labour Estimated Total Labour Community Population 570, , , ,000 The employee multiplier is estimated to be at least 6 to 1 in RSA. 6

7 SOUTHERN AFRICAN OPERATIONS Fact: The sugar operations are rural in nature AFRICAN FACT: GOVERNMENT PAST & PRESENT UNDER-PROVIDE THEREFORE ILLOVO HAS TO DEVELOP, SUSTAIN, SUPPORT Roads, Bridges Electricity Infastructure Water Sewage Transport Community Primary Health Care: Upliftment (Hospitals/Clinics/Welfare) Malaria & Social Schools HIV/Aids Investment Endemic Disease Control TB Training Business Understanding Programme Artisans Adult Basic Education THESE ARE NOT SOFT ISSUES AS WE NEED: EDUCATED SKILLED EMPLOYEES HEALTHY To remain competitive & profitable Fact - Illovo is good at managing these functions and there is considerable potential leverage 7

8 COMPANY STATEMENT We are a private sector, profit oriented company and proud of it! But we have to survive in an open market against sophisticated competition and need to finance development and be able to afford upliftment Whilst Illovo is committed to a corporate social investment programme focused on the needs of the countries in which the group has operations Available finance and affordability are severe limiting factors We need to create the critical mass to develop self-managed projects which will provide their own micro-lending facility through the injection of donor seed capital. Development is a key issue as it also provides the means to address upliftment issues. ILLOVO IS AN ORGANISATION COMMITTED TO DEVELOPMENT :- SMALL SCALE GROWERS :- MEDIUM SCALE FARMERS :- SERVICES OUTSOURCING - TRANSPORT (cane haulage) - CONTRACTING - services - maintenance - small scale business ILLOVO HAS SUCCEEDED IN THESE AREAS 8

9 INVOLVEMENT OF COMMUNITIES Growers South Africa Malawi Swaziland Zambia Tanzania Small Scale Medium-scale Number Tons 000 Number Tons TOTAL Investment Swaziland - 40% Malawi - 40% Tanzania - 25% Zambia - 10% Other - Outsourcing / medical / education / housing PROJECT KASINTHULA - MALAWI NCHALO GOVERNMENT AND LOCAL AUTHORITY APPROVAL JUNE GROWERS ALLOCATED 3 HA EACH KASINTHULA CANE GROWERS LTD FORMED 95% 5% Illovo Project 60% Management & Extension Agreement Kasinthula Trust Cane Supply Sucoma Govt 25% 10 Trustees Agreement Public 15% US$ 1997 Phase I 340 Ha 1,750,000 Division of proceeds 1998 Phase II 430 Ha 2,675,000 60% of sugar value & molasses 2000 Phase III 430 Ha Est 1,763,000 proceeds returned to grower EIB HAVE GRANTED FINANCE FARMERS ARE CURRENTLY EXCEEDING TONNAGE PER Ha BY 10% AND THEIR NET EARNINGS AFTER SERVICING LOANS AVERAGES US$1700 p.a. PER HECTARE COMPARED TO A GDP PER CAPITA OF US$180. 9

10 FUTURE SMALL SCALE GROWER SCHEMES REQUIRING FINANCE ESTIMATES DWANGWA MALAWI - LIWALADZI PROJECT 500 ha 1.5 Million - KASITU PROJECT 500 ha 1.5 Million NCHALO MALAWI - MALIKOPO PROJECT 800 ha 2.4 Million KILOMBERO TANZANIA - OUTGROWER PROJECT 3000 ha 9.0 Million MARAGRA MOZAMBIQUE 2600 ha 7.8 Million MEDIUM SCALE FARMERS DEVELOPMENT KLIPSPRUIT ) STONEYHILL )SCHEME ,647.2 ha 20 BLACK FARMERS OAKLANDS ) R15 MILLION KWAZULU FINANCE & INVESTMENT CORPORATION MGAYI )SCHEME ,169.5 ha 20 BLACK FARMERS ELMSLEIGH ) R11,826 MILLION KWAZULU FINANCE & INVESTMENT CORPORATION UBOMBO POORTZICHT R10 MILLION 597 ha 15 SWAZI FARMERS SWAZILAND INVESTMENT DEVELOPMENT CORPORATION 10

11 SERVICES OUTSOURCING - TRANSPORT (CANE HAULAGE) CONTRACTOR - NKULULEKO TRANSPORT SERVICES 1994 Awarded Cane Haulage Contracts at Eston and Gledhow Mills * Guaranteed contract from Illovo & Independent growers * 25% Discount given on capital cost - Purchased 5 trucks & infield equipment from Illovo - Took over company maintenance garage facilities Value U$ 420,000 financed First National Bank 2000 Grown to 500,000 tons cane per annum with 10 trucks, 22 drivers & 3 mechanics. - TRANSPORT (SUGAR HAULAGE) CONTRACTOR - NKULULEKO TRANSPORT SERVICES 1997 Subcontracted to Unitrans (Illovo sugar contractor) - For 97,000 tons sugar haulage 1998 Increased capacity to 257,000 tons sugar haulage 2000 New trucks U$ 2,5m to be financed Itala/Kwa-Zulu Finance Corporation SERVICES OUTSOURCING G.S.L. TRANSPORT 1998 : Cane haulage contract on closure of Glendale Mill 40 People (Drivers, Conductors, Crane Drivers, Supervisors, Clerk) tons cane operation Value : US$ 170,000 Financed by : Kwazulu Finance & Investment Corp. 11

12 SERVICES OUTSOURCING GLEN MOTOR SUPPLIES (JAYA ATCHANNAH) MARCH People : (Mechanic, clerks and fuel attendants) Service Station (fuel & repairs) and tyre warehouse Value : US$ 50,000 Financed by : Illovo Sugar REPAYMENTS COMPLETE MARCH 2000 ILLOVO - SOCIAL INVESTMENT STRUCTURE RSA EXECUTIVE COMMITTEE ALLOCATE ILLOVO SUGAR ANNUAL BUDGET MAIN BOARD - Managing Director - Administration Director - Operations Director RSA - Industrial Affairs Managers - HR Public Relations - HR SA Operations - Secretary Committee approval Project motivation & community buy-in SOCIAL INVESTMENT COMMITTEE AT OPERATING CENTRES - General Manager - Human Resources Manager - Elected Worker & Community Representatives Tendering Process (Affirmative Preference) Monthly Cost Control Standards Monitoring Project Report back 12

13 ILLOVO - COMMUNITY UPLIFTMENT & SOCIAL INVESTMENT SOCIAL INVESTMENT - RSA 276,000 - AFRICA 1,560,000 TRAINING - RSA 800,000 - AFRICA 1,782,000 HEALTHCARE - RSA 1,000,000 - AFRICA 2,155,000 TOTAL U$7,573,000 ILLOVO - SOCIAL INVESTMENT STRUCTURE RSA BUDGET 2000/01 US$ A - MANAGING DIRECTORS VOTE 17,000 B - CORPORATE VOTE 80,000 C - LOCAL COMMUNITY VOTE 102,000 D - GENERAL MANAGERS VOTE 33,000 E - EDUCATIONAL ASSISTANCE SCHEME 44, ,000 13

14 ILLOVO - SOCIAL INVESTMENT STRUCTURE RSA COMPLETED PROJECTS - LOCAL COMMUNITY VOTE US$ US$ 1996/7 GLEDHOW COMMUNITY HALL NOODSBERG VUMUTHANDO PRIMARY SCHOOL SEZELA IFAFA COMMUNITY SCHOOL UMZIMKULU LOUISIANA PRIMARY SCHOOL /8 UMFOLOZI MTUBATUBA PRIMARY SCHOOL SONBEAM NURSERY SCHOOL HIV NET PROJECT GLEDHOW FENCING PRIMARY SCHOOL NOODSBERG BULAWAYO PRIMARY SCHOOL UMZIMKULU MABIYA SCHOOL NORTH PONDOLAND COMMUNITY HALL /9 PONGOLA PHUMULA SCHOOL NOODSBERG MUZIKAWU THANDWA HIGH SCHOOL ESTON MABOMVINI SCHOOL READRIGHT UMZIMKULU EBUMBENI JP SCHOOL GLEDHOW ENKUKWINI P SCHOOL TOILETS/FEN ALL SPONSORED SCHOOLS - OUTCOME BASED EDUCATION POSTERS ILLOVO - SOCIAL INVESTMENT - AFRICA ANNUAL BUDGET SET AND APPROVED AT BOARD LEVEL MONTHLY CONTROL AGAINST BUDGET : QUARTERLY BOARD REVIEW US$ MALAWI SCHOOLS FUNDING SALARY SUBSIDY 126,000 BUILDING RENOVATIONS SOCIAL PROJECTS PRESIDENT'S CHARITY COMMUNITY UPLIFTMENT 290,000 RECREATION SPONSORSHIP MOZAMBIQUE SOCIAL PROJECTS HOUSING UPGRADE 62,000 CLEAN WATER SUPPLY SCHOOL FUNDING LOCAL SCHOOL SUBSIDY 12,000 SWAZILAND SOCIAL PROJECTS FUNERAL & RECREATION TRANSPORT COMMUNITY SERVICES STAFF COSTS 235,000 STAFF WELFARE COSTS SCHOOL FUNDING FOUR COMPANY SCHOOLS 510,000 UTECH COLLEGE TANZANIA SOCIAL PROJECTS UPGRADE SUBSIDY OF RECREATION FACILITIES 245,000 VILLAGE ROAD MAINTENANCE SCHOOL FUNDING TEACHER'S SUBSIDY 80,000 1,560,000 14

15 ILLOVO - TRAINING "Global competitiveness make it imperative that we continue to actively manage our human resources to derive maximum benefit and synergies across the group." STRATEGIC PLAN "Obtaining the commitment of all employees to the attainment of our business objectives and the ongoing upliftment of skills at all levels is a priority." STRATEGIC PLAN Current Training Focus is as follows: US$m US$m R.S.A. Business Understanding Programme 0,160 Adult Basic Education 0,080 Apprentice & Engineers Training 0,320 Management & General Skills Development 0,240 0,800 MALAWI Business Understanding Programme 0,326 Supervisory courses 0,122 Operator & Apprentice Training 0,367 0,815 MOZAMBIQUE Basic training for safety, drivers and operators 0,017 TANZANIA Business Understanding Programme 0,063 National training levy 0,070 Basic computer, safety, driving & irrigation course 0,120 0,250 SWAZILAND Training centre and course fee costs 0,700 2,582,000 ILLOVO S CONTRIBUTION TO HEALTHCARE IN AFRICA Entity Clinic Services (US$ ) Hos pital Services (US$ ) South Africa Tanzania Kilombero Malawi Nchalo Malawi Dwangwa Swaziland Ubombo Mozambique Maragra Total

16 Tanzania - Kilombero ILLOVO S CONTRIBUTION TO HEALTHCARE IN AFRICA Illovo is presently managing and running the Msolwa 140-bed district hospital which provides medical services to the surrounding community and district. As well as this, it has a small 10-bed day-care facility and clinic. These facilities were formerly run by the Ministry of Health. The total population served is estimated to be well over Malawi - Nchalo There are seven clinics on the estate which provide health services to approximately people. There is a close affinity with the Montfort District Hospital to which the company provides a substantial subsidy. We are involved in research with the Malawi College of Medicine and John Hopkins University, Baltimore in the field of malaria and HIV / AIDS. The clinics see about cases of malaria a month and there is a high HIV prevalence rate. Malawi - Dwangwa Dwangwa has four clinics and an on-site 35-bed maternity hospital. The clinics handle a caseload of about a month. In Malawi, malaria, HIV / AIDS and respiratory infections account for about 70 % of all attendance s. ILLOVO S CONTRIBUTION TO HEALTHCARE IN AFRICA Swaziland - Ubombo Ubombo have a 40-bed, fully equipped hospital on the estate, which has three resident doctors and a full complement of nursing personnel. Health services are provided to all the employees and their dependents, as well as the surrounding communities. Mozambique - Maragra We have recently set up a healthcare facility on the estate to provide primary and occupational health services for our employees. There is a strong involvement with the local community and with the district hospital of Manhica. South Africa The seven clinics provide primary and occupational health services to employees and their dependents. A major focus of attention is the HIV / AIDS pandemic which has profound social and economic implications. Intervention programs are in place at all our mills / estates and we are involved in research with the Medical Research Council and HIVNET on this. 16