Sub Title. 17 September Presented by: Name Surname Date: Monday, September 22, 2008

Transcription

1 Click RMB Morgan to add title Stanley Sub Title Big Five Investor Conference 7 September 200 Presented by: Name Surname Date: Monday, September 22, 2008 Presented by: Name Surname Date: Monday, September 22, 2008

2 Agenda Overview of Nampak Nampak Strategy in Africa Nampak Group Strategy 2

3 Click Overview to add of title Nampak Sub Title Presented by: Name Surname Date: Monday, September 22, 2008 Presented by: Name Surname Date: Monday, September 22, 2008

4 Revenue Geographical Segmentation South Africa Rest of Africa Europe R9.6bn 4

5 Revenue Material Segmentation Metals & Glass Paper Plastics R9.6bn 5

6 Metals and Glass Packaging Presented by: Name Surname Date: Monday, September 22,

7 Paper and Flexibles Packaging Presented by: Name Surname Date: Monday, September 22,

8 Plastic Packaging Presented by: Name Surname Date: Monday, September 22,

9 Tissue Products Presented by: Name Surname Date: Monday, September 22,

10 Nampak Facts Rm 2009 Revenue Trading income 28 EBITDA 833 Cash generated from operations Total assets Market capitalisation 9 September Permanent employees Empowerdex rating Level 4 0

11 Operations in Africa Ethiopia Kenya Nigeria 2 Angola under construction Tanzania Malawi Namibia Zambia 2 Botswana South Africa 60 Swaziland Mocambique 2 Zimbabwe 7

12 Operations in Europe Ireland UK 4 Netherlands Germany 2 Luxembourg Presented by: Name Surname Date: Monday, September 22, 2008 France Italy 2 2

13 Click Nampak to add Strategy title in Africa Sub Title Presented by: Name Surname Date: Monday, September 22, 2008 Presented by: Name Surname Date: Monday, September 22, 2008

14 Rest of Africa - Agenda Where is Nampak in Africa Where are the opportunities in Africa Nampak strategy in Africa Summary of current strategic t initiativesiti 4

15 Rest of Africa - Agenda Where is Nampak in Africa Where are the opportunities in Africa Nampak strategy in Africa Summary of current strategic t initiativesiti 5

16 Diffi lt t t Difficult to compete : Proximity to Europe 2: Culture and language 3: Logistics

17 Focus on sub-saharan Africa only

18 Nampak in Africa Where are We? 20 operations in 2 countries 86 factories Turnover +/- R.9 bn Ethiopia Nigeria 2 Presented by: Name Surname Date: Monday, September 22, 2008 Angola under construction ti Tanzania Kenya Malawi Namibia Zambia 2 Botswana South Africa 60 Swaziland Mocambique Zimbabwe 7 8

19 Nampak in Africa Rm Revenue Nigeria Kenya Zambia Malawi Tan nzania Mozam mbique 9% of Group (excl Zimbabwe) 9

20 Products Manufactured in Africa Country Metals Glass Paper Tissue Plastics Kenya * * Malawi * * Mocambique * Namibia * Presented by: Name Surname Date: Monday, September 22, 2008 Nigeria * * South Africa * * * * * Swaziland * Tanzania * * Zambia * * * Zimbabwe * * * * 20

21 Nampak in Africa - Where are We? Operations +/- R.9 bn Exports +/- R.65 bn 86 factories Ethiopia Nigeria 2 Presented by: Name Surname Date: Monday, September 22, 2008 Angola under construction Tanzania Kenya Malawi Namibia Zambia 2 Botswana South Africa 60 Swaziland Mocambique Zimbabwe 7 2

22 Nampak in Africa Country Local Imports ex Total Manufacture Nampak SA Business (R' mill ) (R' mill ) (R' mill ) Angola R 0 R 428 R 428 Botswana R 20 R 2 R 23 DRC R 0 R 2 R 2 Kenya R 275 R 72 R 347 Malawi R 27 R 0 R 37 Mozambique R 35 R 0 R 35 Namibia R 0 R 466 R 466 Nigeria R 440 R 3 R 47 South Africa Swaziland R 20 R 76 R 96 Tanzania R 82 R 53 R 35 Zambia R 274 R 2 R 295 Zimbabwe R 539 R 35 R 674 Other (Africa) R 40 R 40 TOTAL R,92 R,646 R 3,557 Note: 00 % of company revenue 22

23 Rest of Africa - Agenda Where is Nampak in Africa Where are the opportunities in Africa Nampak strategy in Africa Summary of current strategic t initiativesiti 23

24 Rest of Africa Economies : 2009 GDP Country US$ % per cap (Billion) Growth (PPP) Angola % 5,43 Botswana % 3,24 DRC % 323 Kenya %,568 Malawi Presented by: Name Surname Date: Monday, 59% 5.9% September 22, Mozambique % 950 Namibia 0.5.7% 6,327 Relatively Nigeria small economies 23.9 and packaging 6.9% markets 2,9 Good South opportunities Africa in specific 329.5packaging 2.6% substrates 9,72 Growth Tanzania prospects good %,26 Zambia %,56 Zimbabwe % 75 Source: IMF World Economic Outlook 24

25 Rest of Africa Economies : 2009 Country US$ (Billion) GDP % Growth per cap (PPP) Angola % 5,43 Botswana % 3,24 DRC % 323 Kenya %,568 Malawi aa % 59% 550 Presented by: Name Surname Date: Monday, September 22, 2008 Mozambique % 950 Namibia 0.5.7% 6,327 Nigeria % 2,9 South Africa % 9,72 Swaziland 3..% 4,900 Tanzania %,26 Zambia %,56 Zimbabwe % 75 Source: IMF World Economic Outlook 25

26 Economic Zones in Africa Presented by: Name Surname Date: Monday, September 22,

27 Key Trade Zones in Africa SADC COMESA ECOWAS Presented by: Name Surname Date: Monday, September 22, 2008 Suspended Members SADC Members Only SACU Members Current Members Former Member of the COMESA SADC 5 Member States SADC Free Trade Area 2 states Excludes: Angola, Congo, Seychelles COMESA - 9 member states Perferential Trade Area 6 states Free Trade Area ECOWAS 5 States Loose arrangement 27

28 Rest of Africa - Agenda Where is Nampak in Africa. Where are the opportunities in Africa Nampak strategy in Africa Summary of current strategic t initiativesiti 28

29 Rest of Africa Growth Strategy Build a market base through h 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 29

30 Nampak in Africa Regional Hubs Nigeria 2 Presented by: Name Surname Date: Monday, September 22, 2008 Kenya South Africa 60 30

31 Rest of Africa Multi-National Opportunities BAT SAB Miller Heineken Coca Cola Pepsi Unilever Nestle Cadbury Diageo Illovo Sugar Lafarge Colgate Palmolive PZ Cussons Sara Lee Reckitt Benckiser 3

32 Rest of Africa - Agenda Where is Nampak in Africa Where are the opportunities in Africa Nampak strategy in Africa Summary of current strategic t initiativesiti 32

33 Rest of Africa Current Strategic Initiatives Angola Beverage can line Nigeria $50 m, commissioning i i March 20 Beer Labels New label press commissioning October 200 Expand capacity and range in metals ointment, paint, food Zambia New paper bag line to supply Illovo - commissioning February 20 Label line for SAB Zimbabwe Supply of cement sacks ex SA Kenya / East Africa Expand metal supply Additional paper bag and sack capacity 33

34 Angolan Expansion One of the fastest growing economies in the world Only market in the world where the beverage can market size exceeds a fully utilised can line, without any local can manufacturer Estimated beverage can market in excess of a billion cans Currently supplying 50% from RSA Once operational in Angola, Bevcan RSA should be ideally positioned to gain remainder of market Local shareholding of 30% - Angolan Government Plant commissioning - March 20

35 Angolan Expansion Presented by: Name Surname Date: Monday, September 22,

36 Angolan Expansion Presented by: Name Surname Date: Monday, September 22,

37 Rest of Africa Current Strategic Initiatives Angola Beverage can line Nigeria $50 m, commissioning i i March 20 Beer Labels New label press commissioning October 200 Expand capacity and range in metals ointment, paint, food Zambia New paper bag line to supply Illovo - commissioning February 20 Label line for SAB Zimbabwe Supply of cement sacks ex SA Kenya / East Africa Expand metal supply Additional paper bag and sack capacity 37

38 New Business in Nigeria 38

39 Rest of Africa Current Strategic Initiatives Angola Beverage can line Nigeria $50 m, commissioning i i March 20 Beer Labels New label press commissioning October 200 Expand capacity and range in metals ointment, paint, food Zambia New paper bag line to supply Illovo - commissioning February 20 Label line for SAB Zimbabwe Supply of cement sacks ex SA Kenya / East Africa Expand metal supply Additional paper bag and sack capacity 39

40 Beer Labels in Zambia 40

41 Rest of Africa Current Strategic Initiatives Angola Beverage can line Nigeria $50 m, commissioning i i March 20 Beer Labels New label press commissioning October 200 Expand capacity and range in metals ointment, paint, food Zambia New paper bag line to supply Illovo - commissioning February 20 Label line for SAB Zimbabwe Supply of cement sacks ex SA Kenya / East Africa Expand metal supply Additional paper bag and sack capacity 4

42 Rest of Africa Current Strategic Initiatives Angola Beverage can line Nigeria $50 m, commissioning i i March 20 Beer Labels New label press commissioning October 200 Expand capacity and range in metals ointment, paint, food Zambia New paper bag line to supply Illovo - commissioning February 20 Label line for SAB Zimbabwe Supply of cement sacks ex SA Kenya / East Africa Expand metal supply Additional paper bag and sack capacity 42

43 Click Nampak to add Group title Strategy Sub Title Presented by: Name Surname Date: Monday, September 22, 2008 Presented by: Name Surname Date: Monday, September 22, 2008

44 GROUP COMPETITIVE ADVANTAGES 44

45 Substantial Market shares Packaging 00% 85% 50% 40% 30% 20% Beverage cans Aluminium aerosol cans Tinplate aerosol cans Food cans Paper sacks HDPE milk and juice bottles Folding cartons Presented by: Name Surname Date: Monday, September 22, 2008 Flexible plastics PET bottles Corrugated boxes 2 Glass bottles 2 Non-packaging g Toilet tissue Diapers 3 45

46 Established Base in 2 African Countries Ethiopia Kenya Nigeria 2 Angola under construction Tanzania Malawi Namibia Zambia 2 Botswana Swaziland Mocambique 2 Zimbabwe 7 46

47 Market Competitive Advantages Long-term contracts and cost escalation formulae R & D facility Comprehensive range of metal, plastic, paper and glass packaging Strong brands in toilet paper, tissue, diaper and feminine products Recycled product capabilities and high recovery rates 47

48 Manufacturing Competitive Advantages Technology agreements Technical competence Generally good kit Geographic spread of manufacturing facilities In-plant facilities High barriers to entry in many sectors 48

49 High Barriers to Entry Rm Approximate Cost Bevcan Glass Tissue Gravure Litho line furnace mill printer printer 49

50 Cash Generated from Operations Rm

51 X Financial Strength Net Debt/EBITDA Astrapak Nampak Mondi Crown O-I SCA Ball Rexam Amcor Smurfit Sappi Source: RBS, Astrapak 5

52 Other Competitive Advantages BEE rating Ethical, moral group SRI index Procurement Strong systems 52

53 GROUP COMPETITIVE DISADVANTAGES 53

54 Competitive Disadvantages Power of customers in some areas Power of suppliers in some areas Wage rates Group charges/it costs 54

55 Nampak Group Strategy Core Divisions with Competitive Advantages Retain South Africa Africa Europe 55

56 Nampak Group Strategy Divisions with Competitive Disadvantages South Africa Fix/Sell/Close Africa Europe Disposals in last year Disaki * L&CP * Foam Flexpak Redibox Carmoc Containers * Subject to regulatory approval 56

57 Nampak Group Strategy Key Opportunities Africa Angola Beverage plant (phases & 2) Other Nampak products once beverage plant commissioned Nigeriai Metals Cartons & Labels Zambia a Sacks Labels Kenya Tea sacks Maize bags Metals 57

58 Nampak Group Strategy Key Opportunities South Africa Divfood Tissue Closures Liquid Glass Monobloc aerosol 2 piece cans Diapers 2 ply tissues Supershorty DBJ Long life milk Wide mouth jars Additional capacity Europe Plastics Arla in plant NIreland Lightweighted bottles 58

59 Nampak Group Strategy - Conclusion. Focus and invest in core divisions where we have a sustainable competitive advantage. 2. Continue disposal of divisions with competitive disadvantage. 3. Take advantage of numerous opportunities in core operations in Africa, South Africa and Europe. 4. Stratplan aims to deliver a smaller group that will be more focused, more profitable, improved margins & RONA and with significantly reduced debt. 59

60 Click Thank to you add title Sub Title Presented by: Name Surname Date: Monday, September 22, 2008 Presented by: Name Surname Date: Monday, September 22, 2008