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
Agenda Overview of Nampak Nampak Strategy in Africa Nampak Group Strategy 2
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
Revenue Geographical Segmentation South Africa Rest of Africa Europe R9.6bn 4
Revenue Material Segmentation Metals & Glass Paper Plastics R9.6bn 5
Metals and Glass Packaging Presented by: Name Surname Date: Monday, September 22, 2008 6
Paper and Flexibles Packaging Presented by: Name Surname Date: Monday, September 22, 2008 7
Plastic Packaging Presented by: Name Surname Date: Monday, September 22, 2008 8
Tissue Products Presented by: Name Surname Date: Monday, September 22, 2008 9
Nampak Facts Rm 2009 Revenue 9 586 Trading income 28 EBITDA 833 Cash generated from operations 2 220 Total assets 4 092 Market capitalisation 9 September 200 750 Permanent employees 3 390 Empowerdex rating Level 4 0
Operations in Africa Ethiopia Kenya Nigeria 2 Angola under construction Tanzania Malawi Namibia Zambia 2 Botswana South Africa 60 Swaziland Mocambique 2 Zimbabwe 7
Operations in Europe Ireland UK 4 Netherlands Germany 2 Luxembourg Presented by: Name Surname Date: Monday, September 22, 2008 France Italy 2 2
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
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
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
Diffi lt t t Difficult to compete : Proximity to Europe 2: Culture and language 3: Logistics
Focus on sub-saharan Africa only
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
Nampak in Africa - 200 Rm 750 600 450 300 50 0 Revenue Nigeria Kenya Zambia Malawi Tan nzania Mozam mbique 9% of Group (excl Zimbabwe) 9
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
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
Nampak in Africa - 200 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
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
Rest of Africa Economies : 2009 GDP Country US$ % per cap (Billion) Growth (PPP) Angola 85.5 7.0% 5,43 Botswana 2.9 6.3% 3,24 DRC 2.6 5.4% 323 Kenya 34.2 4.%,568 Malawi Presented by: Name Surname Date: 48 4.8 Monday, 59% 5.9% September 22, 2008 550 Mozambique 0.2 6.4% 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 24.4 6.%,26 Zambia 6.0 5.8%,56 Zimbabwe 5. 2.2% 75 Source: IMF World Economic Outlook 24
Rest of Africa Economies : 2009 Country US$ (Billion) GDP % Growth per cap (PPP) Angola 85.5 7.0% 5,43 Botswana 2.9 6.3% 3,24 DRC 2.6 5.4% 323 Kenya 34.2 4.%,568 Malawi aa 4.8 5.9% 59% 550 Presented by: Name Surname Date: Monday, September 22, 2008 Mozambique 0.2 6.4% 950 Namibia 0.5.7% 6,327 Nigeria 23.9 6.9% 2,9 South Africa 329.5 2.6% 9,72 Swaziland 3..% 4,900 Tanzania 24.4 6.%,26 Zambia 6.0 5.8%,56 Zimbabwe 5. 2.2% 75 Source: IMF World Economic Outlook 25
Economic Zones in Africa Presented by: Name Surname Date: Monday, September 22, 2008 26
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
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
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
Nampak in Africa Regional Hubs Nigeria 2 Presented by: Name Surname Date: Monday, September 22, 2008 Kenya South Africa 60 30
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
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
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
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
Angolan Expansion Presented by: Name Surname Date: Monday, September 22, 2008 35
Angolan Expansion Presented by: Name Surname Date: Monday, September 22, 2008 36
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
New Business in Nigeria 38
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
Beer Labels in Zambia 40
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
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
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
GROUP COMPETITIVE ADVANTAGES 44
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
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
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
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
High Barriers to Entry Rm 000 900 800 700 600 500 400 300 200 00 0 Approximate Cost Bevcan Glass Tissue Gravure Litho line furnace mill printer printer 49
Cash Generated from Operations Rm 2 500 2 000 500 000 500 0 2005 2006 2007 2008 2009 200 50
X 7 6 5 4 3 2 0 Financial Strength Net Debt/EBITDA Astrapak Nampak Mondi Crown O-I SCA Ball Rexam Amcor Smurfit Sappi Source: RBS, Astrapak 5
Other Competitive Advantages BEE rating Ethical, moral group SRI index Procurement Strong systems 52
GROUP COMPETITIVE DISADVANTAGES 53
Competitive Disadvantages Power of customers in some areas Power of suppliers in some areas Wage rates Group charges/it costs 54
Nampak Group Strategy Core Divisions with Competitive Advantages Retain South Africa Africa Europe 55
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
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
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
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
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