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                      ANGLOVAAL INDUSTRIES LIMITED
                               (“AVI” or “the Group”)
          (Reg. No. 1944/017201/06) Share Code: AVI ISIN: ZAE000030102
               Audited Results for the 12 months ended 30 June 2002
AVI is a South African based company focusing on the consumer products and
services industry. Its key competencies are the marketing, processing, manufacturing
and distribution of food, cosmetics and packaging. AVI is made up of three segments:
(i) Branded Consumer Goods, comprising National Brands Food and Cosmetics and
I&J. (ii) Packaging, comprising Consol Glass and Plastics and (iii) Logistics,
comprising Vector Logistics. The company is listed in the Food Producers &
Processors sector of the JSE Securities Exchange South Africa and has an
approximate market capitalisation of R4.6 billion.

Highlights:
Turnover from continuing operations                up     18%    to      R5,8 billion
Operating profit from continuing operations        up     44%    to      R716 million
Diluted headline earnings per share                up     56%    to      156.1 cents
Return on equity                                   at     19%

Dividend per share declared                        up      39%    to     53.0 cents


      Implementation of growth strategy positively impacting AVI.

      Strong operating contributions from all three business segments – with Branded
       Consumer Goods trading particularly well.

Branded Consumer Goods - Operating profit: R398 million (2001: R248 million):

      I&J delivered excellent results, as the domestic market performed well and higher
       US$ pricing and favourable exchange rates had a positive impact on exports and
       foreign operations.

      Hake demand continued to benefit from shifts to healthier eating and the decline
       in Northern Hemisphere fishing stocks.

      I&J acquired an Argentinean seafood company Alpesca, which, achieved a small
       operating profit in line with expectations. The production facilities have been
       successfully refurbished, and a new shrimper vessel acquired.
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      National Brand biscuit category growth spurred by strong innovation through new
       product launches and line extensions.

      As forecast, National Brands snacks category continued to incur operating losses.
       The revised operating model has been implemented and is starting to produce
       tangible improvements.

      Continued growth from National Brands cosmetics driven by innovation.


Packaging - Operating profit: R 289 million (2001: R225 million):

      Consol operating profit benefited from 6% volume growth and efficiency gains.

      Productivity records broken and furnace utilisation at an all time high.

      Consol XPRS doubled growth targets and Speciality Glass substantially improved
       sales and profit.

      R250 million investment in two new furnaces at Wadeville and Pretoria,
       scheduled to be commissioned in early 2003.

Logistics - Operating profit: R 35 million (2001: R32 million):

      I&J’s customer division incorporated as a stand-alone business unit, Vector
       Logistics, a specialist third party logistics provider.

      Vector revenues increased by 22%, with volumes increasing by 7% .

      One off SAP implementation costs of R8 million impacted on operating profit.

Angus Band, Group Managing Director, commented:
“The fact AVI continued to generate strong growth during this volatile period, is a
tribute to thecommittment of its people and the resilience of its leading brands. These
strengths, together with our growth strategy gives us confidence that AVI will continue
to produce real earnings growth in the new financial year.

Sandton                                                      3 September 2002


AVI
Angus Band, Group Managing Director                          Tel: + 27 (0) 11 779 2703
                                                                      3

Robert Katzen, Group Financial Director   Tel: + 27 (0) 11 779 2704
College Hill
Tom Allison                               Tel: + 27 (0) 11 447 3030
                                                                              4



                    ANGLOVAAL INDUSTRIES LIMITED
                            (“AVI” or “the Group”)
         (Reg. No. 1944/017201/06) Share Code AVI ISIN: ZAE000030102
              Audited Results for the 12 months ended 30 June 2002


GROUP OVERVIEW


The financial year under review has been very successful with headline earnings
per share growing by 56% and the implementation of a strategy to drive AVI’s
growth post the successful turnaround strategy that was initiated at the time of
the Group’s restructuring in 1999. Although it is still early in this new growth
phase, the Group experienced positive results with solid growth from innovation,
exports and the Alpesca acquisition combining to lift volumes and turnover from
continuing operations by 5% and 18% respectively.


During the year the collapse of the Rand and steep price escalations in respect
of various commodities caused consumer price inflation to increase beyond the
Reserve Bank’s target and food inflation to soar. The defensive interest rate
increases imposed by the Reserve Bank, instability within the Southern African
region resulting from the currency collapse, the problems in Zimbabwe and
global turbulence following the tragedy of 11 September 2001 placed extreme
pressure on the consumer. Within this environment, domestic trading conditions
showed surprising strength with satisfactory levels of demand holding into the
new year. Export demand remained strong with total foreign turnover at 21% of
Group turnover compared to 15% in 2001.
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Financial overview


The year was characterised by strong operating contributions from all of the
business segments resulting in turnover from continuing operations growing to
R5,8 billion. The branded consumer goods segment had a particularly good year,
posting turnover growth of 19%, largely driven by higher exports, which benefited
from both the currency depreciation and improved international seafood prices.


Operating profit from continuing operations improved by 44% to R 716 million
with the operating margin at a healthy 12.4% compared to 10.1% in the prior
year. The decline in the Rand generally impacted positively on the Group as the
Rand proceeds on exports and foreign operations more than offset the impact on
imports. There were a number of one-off items associated with the acquisition of
the Argentinean based seafood company Alpesca S.A. as well as currency gains
resulting from the devaluation of the Argentinean Peso following its de-linking
from the US$ during the year. The net effect of these on operating profit is not
material.


The sale of the loss making ingredients business effective 1 July 2001 lifted the
increase in total operating profit to 46%.


Net income from investments (after interest paid) increased by 13% to
R 85 million, primarily as a result of foreign currency translation gains of R 25
million (2001: R14 million) in respect of the “integrated foreign operations” of I&J.
Other foreign currency gains totalling R 66 million relating to the translation of the
balance sheets of foreign entities have been taken directly to non-distributable
reserves.
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Headline earnings increased by 38% to R503 million. Headline earnings per
share was boosted by the impact of the significant share buy back completed in
April 2001, which resulted in a 12% reduction in the weighted average number of
shares in issue. As a result, diluted headline earnings per share increased by
56% to 156.1cents


Net cash after borrowings was R 729 million at the year end (2001: R586 million).
This is after the settlement of Alpesca S.A. liabilities existing on acquisition of R
191 million and significant capital expenditure as the Group continued to reinvest
in its fixed asset base. Group capital expenditure of R 332 million was in excess
of the depreciation charge of R 268 million. The major capital expenditure
projects during the year were the new vessels acquired by I&J and investment in
the manufacturing facilities in Alpesca. The percentage of working capital to

sales remains within acceptable levels at 12.3%.


The strong improvement in Group profitability has resulted in our return on equity
increasing to 19%.
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            SEGMENTAL PERFORMANCE



                                      Turnover from continuing             Operating profit from
                                            operations                     continuing operations

                                              2002         2001 Change           2002      2001 Change
                                               Rm           Rm      %             Rm        Rm      %


Branded Consumer Goods                        3,875        3,258     19%          398        248       60%

Packaging                                     1,576        1,378     14%          289        225       28%

Logistics                                       328         269      22%           35            32    9%


Corporate                                          -           -                   (6)           (9)   33%

Total                                         5,779        4,905     18%          716        496       44%




            BRANDED CONSUMER GOODS


            This segment had an excellent year with turnover growth of 19% and a 60%
            increase in operating profit to R 398 million. This represents an operating margin
            of 10.3% compared to 7.6% in the prior year.


            NBL food


            Turnover increased by 6% to R 2,1 billion with operating profit growing by 7% to
            R 111 million. Excluding snacks, which continued to experience very difficult
            trading conditions, the growth in turnover was 12% and the improvement in
            operating profit 12%. Raw material input prices rose sharply following the sudden
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decline of the Rand and placed margins under some pressure, particularly in
respect of tea, coffee and snacks.


Improved biscuit volumes and a growth of 37% in sales into Africa were the
major contributors to the turnover growth. The biscuit category benefited from a
9% growth in volumes as its innovation drive continued with the launch of a
number of new products and line extensions including BN and Provita Multigrain.
The strategy of repositioning the Baumann brand to combat cheap imports also
proved successful. Management’s continued focus on operating efficiencies
contributed to a strong improvement in operating profit in the category.


The impact of the Rand’s depreciation was particularly strong in our tea category,
where most of the raw materials are imported. Notwithstanding significant price
increases in the second half driven by these raw material price increases, the
category delivered volume growth of 2%, leading to a 13% increase in turnover
which, with a strong manufacturing performance, contributed to an increase in
operating profit.


The coffee category experienced a mixed trading year with strong growth in
premium brewed coffee following its innovative launch in soft packs and an
improved performance from Frisco as a result of its re-launch. This was offset by
a sharp decline in volumes in affordable brewed coffee due to the pressure on
lower income consumers. The deterioration in the Rand and operating
inefficiencies eroded margins in the second half of the year, although these had
been corrected by the year end.


In our half-year review, we reported that the snacks category continued to incur
operating losses and that no improvement was forecast for the full year. Turnover
for the year ended in line with our forecast, down 15% following a decline in total
market volume in the second half and our decision to exit the baler bag business.
The depreciation of the Rand and its effect on oil, maize and packaging costs,
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caused a significant increase in the cost of sales which could not be recovered
through price increases and contributed to an operating loss of R 49 million
(2001: R 40 million). The management attention and changes implemented
during the year are starting to take effect and we are seeing the early signs of a
real improvement in performance.


Ciro Alliances, the foodservice division, enjoyed an excellent year with turnover
growth of 18% and a 108% improvement in operating profit arising from the focus
on more profitable product lines and a lower cost structure.


NBL cosmetics


The cosmetics division continued its strong growth trend with turnover and
operating profit increasing by 17% to R 345 million and R37 million respectively
despite a significant increase in the cost of imported raw materials. Toiletries, in
particular, performed well with continued market share growth in male deodorant
and female body sprays. Good results were also achieved in expanding the
export market, which now represents 5% of turnover.


The Coty licence for sub-Saharan Africa, which was acquired two years ago,
contributed to a larger sales base and provided additional benefits through its
affiliation to an international market leader in the world of cosmetics. The
financial benefits of this arrangement will increase next year as Coty maximises
its potential in the fragrance and toiletries categories with the introduction of a
new range of products.


I&J


I&J delivered excellent financial results, primarily due to the combination of
higher US$ pricing and favourable movements in exchange rates which together
had a positive impact on exports. The Rand/Dollar exchange rate averaged
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R10.1 for the year compared to R7.6 for 2001. The domestic market also
performed well in spite of price increases above CPI. These factors, together with
the successful introduction of innovative new products and the impact of the
Alpesca acquisition, combined to lift turnover by 45% to R 1,5 billion. Excluding
the impact of the Alpesca acquisition, the growth was 30%. Foreign sales now
represent 65% of I&J’s turnover.


The reduction of the losses incurred in the international fishing operations last
year, a substantial increase in the profitability of the abalone farm and operating
efficiencies, together with the impact of the higher turnover, combined to lift
operating profit by 121% to R 250 million. This represented an operating margin
of 16.8% compared to11.0% in 2001.


The economic difficulties of the past year in the USA, Europe and the East had
no impact on the demand for hake as the trends towards healthier eating
continued. The decline in Northern Hemisphere fish stocks and health concerns
regarding farmed fish supported demand. However, the economic conditions
impacted negatively on the higher priced items in our range such as scallops.


In the South African domestic market, the retail sector was resilient despite
significant price increases. This was particularly evident in coated products
where the Light & Crispy flagship brand performed particularly well, contributing
to an increase in market share to 43.9% (2001: 39.7%). I&J’s total frozen fish
market share increased marginally to 62.3%. Market shares in retail beef and
chicken products improved with chicken, in particular, showing excellent growth.
I&J continued to build its brand through increased marketing support and product
innovation launching eight new products during the year.


Domestic foodservice volumes declined as a result of both supply issues and
softening demand following substantially increased prices. As a consequence,
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domestic consumers, particularly in fast foods, moved to alternative white protein
products.


The implementation of the acquisition of Alpesca S.A., was a key focus during
2002. This acquisition was motivated by growing demand for I&J products, the
continued drive for healthier eating, an increasing global customer base and the
reduction of our South African fishing quotas. The potential exists to add
significant value to Alpesca’s present catch through the upgrading of its
operations, to yield both better margins and product mix for our existing market
channels. During the year Alpesca’s management was strengthened and various
measures to restructure and refinance the company resulted in a secure, solvent
operating unit. The company’s four hake vessels were refurbished and the
processing plants comprehensively upgraded. One new replacement shrimp
vessel was acquired at a cost of R34 million.


The difficult and volatile Argentine socio-economic environment has certainly
challenged the management team and caused some delays in the plan to derive
full benefit. Notwithstanding these disruptions, Alpesca achieved a small
operating profit of R 2 million for the period to June 2002 which was satisfactory
given the circumstances and the state of the operations on acquisition.


The pelagic fleet recorded a significant improvement in operating profit as a
result of higher prices particularly in respect of fishmeal. Fishing conditions for
hake in Namibia, together with a number of management problems, resulted in a
poor performance from Hangana. While the Australian economy was buoyant
during the period, competitive launches of products by retailers curtailed the
growth in profitability in Au$ although the Rand profitability of the Simplot joint
venture improved by 33%.
                                                                               12



PACKAGING


The Consol team produced another year of sustained growth and improved
operating performance despite a volatile trading environment, impacted by price
increases in key raw material and energy costs. Turnover grew by 14% to
R 1,6 billion supporting a 28% improvement in operating income to R 289 million.
The operating margin was 18.3% compared with 16.3% in 2001.


Glass volume grew by 6% due to a combination of organic growth, innovation,
superior service and quality. This would have been higher but for the cyclical
decline in demand for returnable beer containers. The wine category showed
strong growth led by exports and market share gains.


Consol XPRS, the channel for the supply of smaller volume glass and speciality
containers, achieved growth of nearly double its targets. The new XPRS facility in
Stellenbosch was completed during the year and XPRS commenced operating in
Gauteng during the second half of the year.


Consol Speciality Glass operated at full capacity during the year and further
improved its sales and profit. The successful re-launch of the tableware range
retail packs was completed and these have been well received by consumers.
Substantial progress was made in the speciality wine category both organically
and in respect of import replacement. Further capacity expansion at this facility
has been approved and will come on stream early in 2003 at a cost of R30
million.


The glass division continued to improve operational performance across a broad
range of key benchmarks. Core productivity records were broken and furnace
utilisation was at an all-time high despite increases in the number of colour and
job changes.
                                                                                13



The R220 million investment in the construction of the new W3 furnace at the
Wadeville glass facility approved during the year is on schedule for
commissioning in early 2003, increasing the division’s overall glass container
capacity by 12%.


The plastic packaging division experienced another difficult year characterised by
rising raw material prices, low market prices and increased competitor activity.
Turnover decreased by 5% with operating profit significantly below expectation
and the prior year.


Essential restructuring and management changes in the plastics divisions were
implemented without compromising overall market performance and these
changes are starting to impact with the result that we expect a lift in performance
in 2003.




LOGISTICS


I&J’s customer division was incorporated as a stand-alone business on 1 July
2002. The new company, Vector Logistics, is a specialist third party logistics
provider and is positioned to take advantage of the opportunities presented within
the Southern African food supply chain industry. Vector has the same effective
shareholders as I&J.


Revenue increased by 22% arising mainly from a 7% volume increase and an
average selling price increase of 12%. The introduction of the new Multi-
Temperature Contract Distribution (MTCD) business also increased turnover.
The main contributor to both volume and value growth was poultry through
increased demand and a reduction in national stock shortages.
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The adverse impact of the weak exchange rate on certain costs and the
expensing of R 8 million in non-recurring SAP system implementation costs,
restricted the increase in operating profits to 9%. Without the system costs, the
improvement would have been 33%. The focus on improving efficiencies and an
ongoing cost reduction drive helped lift performance.


The MTCD business was launched in the second quarter. The business model is
to offer a one-stop distribution service of frozen, chilled and ambient products to
the food service industry. The operation has not yet reached full capacity
although the response of the target customer base has been very positive.


The SAP implementation commenced in May 2002 and is due to be completed
nationally by end September 2002. The system represents an investment in
excess of R30 million and replaces the remaining legacy systems in the areas of
sales, distribution and materials management. The MTCD operation and seven
branches of the traditional business were live by year end with no significant
problems




PROSPECTS


The fact that AVI has continued to generate strong growth during this volatile
period is a tribute to the commitment of its people and the resilience of its brands.
These strengths, together with our growth strategy, give us confidence that AVI
will continue to produce real earnings growth in the new financial year.


DIVIDEND


A final ordinary dividend 53 cents per share for the year ended 30 June 2002 has
today been declared payable to holders of ordinary shares. This represents a
dividend cover of 3 times calculated on headline earnings.

				
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