Investec Africa Conference. Nampak Growth Strategy in Africa

Transcription

1 Investec Africa Conference Nampak Growth Strategy in Africa Presented by: Andrew Marshall Date Tuesday, 22 nd March 2011

2 Agenda An overview of Nampak in Africa Our presence on the continent Strategy and growth opportunities 2

3 Nampak in Africa Ethiopia 1 Kenya 2 Nigeria 2 Angola 1 Tanzania 1 Malawi 1 Namibia 1 Zambia 2 Botswana 1 Swaziland 1 Mozambique 1 Zimbabwe 5 3

4 Statistical Overview 2010 Countries 12 Operations 19 Turnover Trading Profit inc fees earned offshore EBITDA Assets Capital expenditure R1 213m R120m R130m R1 412m R228m Employees

5 Total Turnover Generated from Africa Operations R1.2bn Exports R1.3bn R2.5bn 5

6 Revenue in Major Countries Nigeria Zambia Kenya Malawi Tanzania 6 Rm

7 Exports to Africa Swaziland 6% Mozambique 8% Kenya 5% Others 7% Namibia 38% Zimbabwe 9% Angola 12% Botswana 15% R1.3bn 7

8 8 Our Presence on the African Continent

9 Nigeria 100% of Cartons & Labels Cigarette cartons Folding cartons Labels 57% of Nampak Nigeria Food and general cans 9

10 10 Nampak Nigeria

11 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

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16 16 Non-Cigarette Business in Nigeria

17 Nigeria Metals Shareholding Public 43% Nampak 57% Only two major independent players in metal packaging 17 17

18 18 Nigeria Metals Manufacturing Equipment

19 19 Nigeria Metals Manufacturing Equipment

20 20 Nigeria Metals Products

21 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

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23 Angola Plant - Update

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25 East Africa Entered territory via acquisitions 4 factories Bullpack 49% paper sacks Crown Cork 100% crowns, food and general cans 25

26 East Africa Only 4 major independent players in metals Good manufacturing base in Kenya Substantial growth in the beverage sector 26 26

27 27 Nampak Kenya Manufacturing Facility

28 28 Nampak Kenya Manufacturing Facility

29 29 Nampak Kenya Manufacturing Facility

30 30 Tanzania Cans

31 Zambia Mini Nampak Liquid Paper & Plastic Steel drums Paper & Board Crowns Plastic crates 31

32 32 Zambia Liquid Packaging Equipment

33 33 Zambia Liquid Packaging Products

34 34 Zambia Rigid Plastics Products

35 35 Zambia Beer Labels

36 36 Zambia Folding Cartons

37 37 Zanbia Sugar Bags

38 38 Zambia Crowns

39 Malawi 60% of Packaging Industries Malawi Corrugated boxes mainly for tobacco Sorghum beer cartons Sacks 39

40 40 Packaging Industries Malawi

41 41 Malawi Corrugated Equipment

42 42 Malawi Liquid Cartons Manufacturing

43 43 Products made in Malawi

44 Swaziland Corrugated box operation supplying mainly agricultural customers 44

45 45 Nampak Corrugated Swaziland

46 Mozambique 50% of Crown Mozambique Crowns for beverage bottles Only local manufacturer 46

47 47 Mozambique

48 48 Mozambique Manufacturing Equipment

49 49 Crowns made in Mozambique

50 Namibia PET bottle in-plant in Windhoek for Namibia Beverages (Coca-Cola) Produce 20-25m bottles per annum 50

51 Botswana Milk and juice bottle plant Major customers Clover and Sally Dairies Produce million bottles per annum 51

52 52 Nampak Liquid Packaging Botswana

53 Zimbabwe Good growth prospects (tobacco / sacks) Indigenization Laws Political Stability Not full management control Adopt a wait and see attitude 53 53

54 Zimbabwe Company Shareholding Products Hunyani 39% Cartons, corrugated, sacks Megapak 49% Crates, rigid plastics CMB 100% Cans, rigid plastics 54

55 Hunyani Largest packaging company in Zimbabwe 2009 Financial Highlights US$ 000 Revenue Profit before tax 576 Market cap Net assets

56 56 Hunyani Corrugated

57 57 Hunyani Cartons & Labels

58 58 Hunyani Corrugated and Sacks Products

59 59 Hunyani Cartons & Labels Products

60 60 CMB Zimbabwe

61 61 CMB Zimbabwe

62 62 Nampak Zimbabwe Metals Factory

63 63 Zimbabwe Metals Products

64 64 Strategy and Growth Opportunities

65 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

66 Nampak in Africa Regional Hubs 66 66

67 Multi-National Opportunities BAT SAB Miller Heineken Coca Cola Pepsi Unilever Nestle Diageo Cadbury Diageo Illovo Sugar Lafarge Colgate Palmolive PZ Cussons Sara Lee Reckitt Benckiser 67 67

68 68 West Africa

69 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

70 EAST AFRICA

71 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

72 Revenue 2010 Rest of Africa 6% Europe 22% R18.6bn South Africa 72% Rest of Africa 8% Europe 8% R15.9bn After sale of Europe Paper South Africa 84% 72

73 Revenue Target in 5 Years Rest of Africa 20% Europe 5% South Africa 75% 73

74 74 Thank You