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Interim Results 2009

Interim Results 2009. Six months ended 31 August 2009. AGENDA. Highlights. Financial Summary. Prospects. HIGHLIGHTS. Disposed of underperforming assets: Flexible Operations - R 153.5m gross proceeds (R 118.5m net) - Vendor loan of R 35m

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Interim Results 2009

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  1. Interim Results 2009 Six months ended 31 August 2009

  2. AGENDA Highlights Financial Summary Prospects

  3. HIGHLIGHTS

  4. Disposed of underperforming assets: Flexible Operations - R 153.5m gross proceeds (R 118.5m net) - Vendor loan of R 35m Sale of Mauritian JV and Properties still in process – further R 30m Acquired within core chosen competencies: Nampak Flexpak Assets Consol Plastics Assets Improved margins – greater manufacturing efficiencies: Operating profit increased by 24% WCM now embarked upon by all companies in the group; SYSPRO base implementation to be concluded by end February 2010; Plans underway to address scrap levels and automation HIGHLIGHTS

  5. Least cost philosophy: Increase in cost base limited to 1.2% increase year-on-year Not satisfied with cost extraction to date 5 Point cost reduction plan implemented within operations Further reduced working capital levels: Net working capital reduced by 10% or R 19m from 28 Feb 09 Net working capital days reduced to 29 days (35 days target) Reduced levels of gearing: Gearing at 34% Improved cash position – R 155m positive as at 31 August Significantly lower finance cost – down 36% on comparative period Capacity created to expand and invest – numerous projects Highlights (continued)

  6. FINANCIAL SUMMARY

  7. FINANCIAL SUMMARY

  8. FINANCIAL SUMMARY

  9. KEY INFLUENCING FACTOR Market conditions: Non-durable real household consumption expenditure Source: Econometrix

  10. ABRIDGED INCOME STATEMENT R 000's Aug 09 Aug 08 % Change Continuing operations Revenue 1,255,368 1,302,575 -4% EBITDA 181,422 159,328 14% Profit from operations 121,058 97,359 24% Net interest paid 27,764 43,320 -36% Profit before tax 93,294 54,039 73% Taxation 29,174 37,195 -22% Profit after tax from continuing operations 64,120 16,844 281% Discontinued operations Profit /(Loss) on discontinued operations (14,246) 4,653 Profit for the period 49,874 21,497 132%

  11. No of shares in issue (‘000) 135,131 135,131 Weighted Average no of shares 118,018 117,855 Weighted Average no of shares (fully diluted) 120,030 121,980 Aug 09 Aug 08 % Change (cents) EPS - Continuing 44.2 4.8 821% EPS - Discontinued -12.1 3.9 -410% EPS – Total 32.1 8.7 269% (cents) HEPS - Continuing 47.1 5.1 824% HEPS - Discontinued -4.0 3.9 -203% HEPS – Total 43.1 9.0 379% ABRIDGED INCOME STATEMENT

  12. DIVISIONAL PERFORMANCE Operating margin: 2009 vs 2008 9.6% vs 7.5% 4.8% vs 16.7% 6.5% vs -18.4% 6.5% vs 5.7% 12.8% vs 10.5%

  13. ABRIDGED BALANCE SHEET R 000’s Aug 09 Feb 09 % Change Non-current assets 1,126,466 1,033,186 Current assets 810,298 728,328 Assets classified held for sale 42,016 317,529 Total assets 1,978,780 2,079,043 -5% Shareholders funds 742,795 697,520 7% Preference share capital 142,590 142,590 Minorities’ interest 33,341 29,372 Non-current liabilities 439,203 499,812 Current liabilities 613,810 556,668 Liabilities relating assets 7,041 153,081 classified as held for sale Total equity and liabilities 1,978,780 2,079,043 -5%

  14. BALANCE SHEETNET INTEREST BEARING DEBT R 000's Aug 09 Feb 09 % Change Cash resources 155,447 110,110 Long term interest-bearing debt (303,023) (341,052) Short term interest-bearing debt (152,808) (210,983) Net interest-bearing debt (300,384) (441,925) -32% Net debt : equity ratio 34% 53%

  15. BALANCE SHEETNET DEBT MOVEMENT

  16. GEARING HISTORY

  17. BALANCE SHEETNET WORKING CAPITAL R 000's Aug 09 Feb 09 % Change Inventories 248,483 229,956 8% Debtors (Trade & other) 406,368 388,262 5% Creditors (Trade & other) 454,769 399,068 14% Net working capital 200,082 219,950 -10%

  18. NET WORKING CAPITAL DAYS Target 35 days

  19. ABRIDGED CASH FLOW R 000’s Aug 09 Aug 08 Cash generated by operations 184,290 175,765 Decrease/(increase) working capital (3,443) 30,946 Non-cash transactions (1,703) (20) Net financing costs and tax (49,806) (66,670) Debenture interest & dividend Distributions (8,884) (25,797) Cash inflow operating activities 120,454 114,224 Capital expenditure (96,358) (107,067) Acquisition of minorities’ interests (1,520) (21,470) Proceeds on disposals 118,457 1,636 Cash outflow investing activities 20,579 (126,901) Cash inflow from financing activities (90,579) 74,193 Net increase/(decrease) cash and cash equivalents 50,454 61,516

  20. Prospects

  21. Review of current operations / group strategy Implement turnaround plan in under-performing operations Increase market share and volumes Improve margins Obsessed with a least cost philosophy Further reduce working capital Improved capital allocation Enhanced Financial Disciplines International alignment Astrapak Plan of Action

  22. INPUT COSTS Raw materials: • New polymer capacity still on hold due to current economic climate • R/$ exchange rate – import price parity • Supply and demand will continue to determine price Other inputs: • Electricity and distribution costs • Labour costs

  23. RAW MATERIAL INPUT COSTS FORECAST Source: Econometrix, Sasol, Astrapak

  24. RESULTS: KEY INFLUENCING FACTORS Market conditions: Non-durable real household consumption expenditure Source: Econometrix

  25. Negative factors State of economy worldwide still of concern Consumer spending to remain under pressure for most of the 2010 financial year Electricity and labour costs Positive factors: Continued stability in polymer prices Improved demand/supply balance in world polymer market Signs of economic recovery – expected to be delayed Significant project growth opportunities Preferred supplier to blue chip customers Number of projects coming on stream Remain focused on core competencies Professionalised business – world class systems, operations and people Capacity created to expand and invest Extract value from recent asset investments International Alignment Competitive advantages Continued product substitution and successful product innovation FY 2010 onwards

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