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Investor Presentation 2009 - INVESTOR PRESENTATION

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Investor Presentation 2009 - INVESTOR PRESENTATION Powered By Docstoc
					                                       Investing for growth




INVESTOR PRESENTATION
Group results and interim dividend declaration 
for the six months ended March 2009



                                                       1
                AGENDA

CORPORATE STRATEGY

BUSINESS PERFORMANCE OVERVIEW

SALIENT FEATURES

FINANCIAL ANALYSIS

SEGMENTAL PERFORMANCE

OUTLOOK

                                Adding value to life   2
                 CORPORATE STRATEGY
Driving profitable top line growth
                     Organic growth




   Domestic                               International
  Acquisitions                              Expansion
                 Continuous Improvement

                     Re-investment

                     Transformation
                                                          Adding value to life   3
   BUSINESS PERFORMANCE OVERVIEW
Strategy Implementation

Growing and defending our core business
   Core business remains healthy
   Tiger market shares remain robust
   Refining our portfolio
   Adapting to adverse market conditions
    •   Challenging economic environment
    •   Significant raw material and other cost pressures
    •   Changes in consumer buying patterns negatively impact volumes in certain 
        categories




                                                                            Adding value to life   4
   BUSINESS PERFORMANCE OVERVIEW
Strategy Implementation


Domestic Acquisitions/Disposals
   Disposal of Sea Harvest on track

   Unsuccessful attempt to acquire AVI Limited

   Continuing to search for local acquisitions




                                                 Adding value to life   5
    BUSINESS PERFORMANCE OVERVIEW
Strategy implementation 

International Expansion
   Bedding down recent acquisitions in East & Central Africa
    •   Haco Industries (Kenya)
    •   Chococam (Cameroon)

   Actively seeking further acquisitions

   Driving TBI exports




                                                               Adding value to life   6
   BUSINESS PERFORMANCE OVERVIEW
Strategy implementation 

 Enablers

     Continuous improvement


    Investing in Capex and our People

   Further 10% BEE deal to be announced during F2009




                                                 Adding value to life   7
BUSINESS PERFORMANCE OVERVIEW
Great Brands     Great People




                                Adding value to life   8
                  SALIENT FEATURES
Continuing operations remain healthy

 Continuing Operations

    HEPS          8%
    EPS          24%


 Group

    HEPS          17%
    EPS            9%


    Interim dividend maintained at 245 cents per share

                                                         Adding value to life   9
FINANCIAL ANALYSIS




Michael Fleming
      CFO




                     Adding value to life   10
            Income Statement to 31 March 2009
Rm                                                       2009                2008       %Change
Continuing operations
Turnover                                                  11,154                 8,985                24% 
Operating income before abnormal items                        1,602                1,239               29% 
Abnormal items                                                   (51)                 (111)          (54%)
Income from operating activities                              1,551                1,128               38% 
Income from investments                                            13                          8       66% 
Net financing costs                                           (164)                     (35)        (362%)
Income from Associates                                             58                       36         61% 
Profit before taxation                                        1,458                1,136               28% 
Income tax expense                                            (470)                  (341)             38% 
Net profit after taxation                                        988                     795           24% 
Discontinued Operations                                            43                     325        (87%)
Net profit for the period                                    1,031                 1,120              (8%)
Attributable to:
Ordinary shareholders                                           990                1,091              (9%)
Minority interest                                                 41                      29           41% 
Headline Earnings (Rm) ‐ total Group                            984                 1,195            (18%)
HEPS (cents) ‐ continuing operations                        607.1                562.7                  8% 
HEPS Share divisor (Ms)                                     156.9                157.9 
Effective tax rate before abnormal items                   32.6%                     28.3%
                                                                                                              Adding value to life   11
                              Turnover 
Turnover growth by operating segment
Rm                                     2009                    2008          % Change
Domestic Food                          8,480                    6,917            23%
Grains                                 4,682                    3,587            31%
‐ Milling and baking                   3,158                    2,682            18%
‐ Other grains                         1,523                      905            68%
Groceries                              1,419                    1,135            25%
Snacks & Treats                          877                      815             8%
Beverages                                623                      576             8%
Value Added Meat Products                741                      659            12%
Out of Home                              139                      145            (5%)
Consumer Healthcare                    1,031                       935           10%
Personal                                 345                       292           18%
Baby care                                286                       257           11%
Homecare                                 400                       386            4%
EXPORTS                                     674                  619              9%
FISHING                                     736                  581             27%
OTHER                                       (63)                 (67)            (6%)
TOTAL ORGANIC                        10,858                     8,985            21%
ACQUISITIONS                                296                          ‐
                                                                                 N/A
TOTAL CONTINUING OPERATIONS           11,154                     8,985           24%
DISCONTINUED OPERATIONS                    466                  1,970           (76%)
Adcock Ingram (Healthcare)                       ‐              1,542          (100%)
Sea Harvest                                466                      428           9%
TOTAL                                11,620                  10,955               6%
                                                                                        Adding value to life   12
            Income Statement to 31 March 2009
Rm                                                       2009                2008       %Change
Continuing operations
Turnover                                                  11,154                 8,985                24% 
Operating income before abnormal items                        1,602                1,239               29% 
Abnormal items                                                   (51)                 (111)          (54%)
Income from operating activities                              1,551                1,128               38% 
Income from investments                                            13                          8       66% 
Net financing costs                                           (164)                     (35)        (362%)
Income from Associates                                             58                       36         61% 
Profit before taxation                                        1,458                1,136               28% 
Income tax expense                                            (470)                  (341)             38% 
Net profit after taxation                                        988                     795           24% 
Discontinued Operations                                            43                     325        (87%)
Net profit for the period                                    1,031                 1,120              (8%)
Attributable to:
Ordinary shareholders                                           990                1,091              (9%)
Minority interest                                                 41                      29           41% 
Headline Earnings (Rm) ‐ total Group                            984                 1,195            (18%)
HEPS (cents) ‐ continuing operations                        607.1                562.7                  8% 
HEPS Share divisor (Ms)                                     156.9                157.9 
Effective tax rate before abnormal items                   32.6%                     28.3%
                                                                                                              Adding value to life   13
        Operating income before abnormal items
Robust market shares and recovery of margins
                                        Operating                    %         % Operating
                                           Income                  Change             Margins
Rm                                2009            2008                           2009      2008
Continuing Operations             1,602                1,239          29%    14.4%     13.8%
Domestic Food                     1,131                  868          30%    13.3%     12.5%
Grains                              601                  445          35%    12.8%     12.4%
‐ Milling and baking                440                  306          44%    13.9%     11.4%
‐ Other grains                      161                  139          16%    10.6%     15.4%
Groceries                           250                  192          31%    17.6%     16.9%
Snacks & Treats                     142                  129          10%    16.2%     15.8%
Beverages                            66                   23         195%    10.7%      3.9%
Value Added Meat Products            56                   61          (9%)    7.5%      9.3%
Out of Home                          16                   18         (12%)   11.5%     12.5%
Consumer Healthcare                 260                   253          3%    25.2%     27.0%
Personal care                       105                    93         13%    30.3%     31.7%
Baby care                            79                    75          6%    27.7%     29.0%
Home care                            76                    85        (11%)   19.1%     22.1%
EXPORTS & INTERNATIONAL              156                    91        70%    16.1%     14.8%
FISHING (OCEANA)                      79                    46        73%    10.7%      7.9%
OTHER                                  (24)                 (19)     (30%)
                                                                                                  Adding value to life   14
                        Abnormal Items
               for six months to 31 March 2009
Continuing operations analysis

Rm                                                               2009 2008
Loss on sale of property, plant & equipment, and impairment 
charges on intangibles                                                (10)   (108)
Loss on sale of investments                                             (4)         ‐
Costs relating to the unsuccessful attempt to acquire AVI Ltd        (33)         ‐
Recognition/(utilisation) of pension fund surpluses                      6        
                                                                                  (3)
Other                                                                               ‐
                                                                      (10)           
Total                                                                 (51)   (111)




                                                                                    Adding value to life   15
                     Segmental Analysis of HEPS
Rm                                            2009                2008           %Change
Net Profit for the Period
             ‐ FMCG                             958                 780        23% 
             ‐ Healthcare Interests                  ‐              278 
             ‐ Sea Harvest                        32                  33       (2%)
                                                990              1,091         (9%)
Headline Earnings Adjustments
             ‐ FMCG                               (6)               108        N/A
             ‐ Healthcare Interests                  ‐                   ‐ 
             ‐ Sea Harvest                        (1)                 (4)     (87%)
                                                  (6)               104         N/A
Headline Earnings
             ‐ FMCG                             952                 888         7% 
             ‐ Healthcare Interests                  ‐              278 
             ‐ Sea Harvest                        32                  29        10% 
                                                984              1,195        (18%)
Headline Earnings Per Share (Cents)
             ‐ FMCG                          607.1               562.7          8% 
             ‐ Healthcare Interests                  ‐           175.8 
             ‐ Sea Harvest                     20.1                18.1         12% 
                                             627.3               756.6        (17%)
                                                                                       Adding value to life   16
              Normalised HEPS Reconciliation
Continuing Operations

Rm                                       2009      2008          % 
                                                           Increase
Headline earnings                         952       888         7%
Abnormal item:
• Costs related to the unsuccessful 
attempt to acquire AVI Ltd                 33          ‐


Normalised headline earnings              985       888        11%

Weighted average shares (000’s)        156 863   157 882
Normalised HEPS                          627,9     562,5       12%



                                                                      Adding value to life   17
                              Key Financial Ratios
31 March 2009
Continuing Operations                                                  2009       2008

Operating Margin %                                                  14.4%       13.8%

Net interest cover (times)                                                 9.9       35.2

Net debt / equity %                                                   33%            5%

Working Capital per R1 of sales (cents)                                  19.9       15.3




                                                                                            Adding value to life   18
                     Group Balance Sheet
                                     2009             2008  
as at 31 March                        Rm                Rm
Assets:
Fixed assets and intangibles        3,697        3,679
Investments                         1,711          757
Current assets                      6,281        6,011
Cash                                  139          415
Assets held for sale                  899        1,879
                                   12,727       12,741
Equity and liabilities:
Shareholders equity                 6,383        6,450
Long‐term borrowings                  524          219
Short‐term borrowings               1,719          550
Non current liabilities               471          443
Current liabilities                 3,397        3,850
Liabilities held for sale             233        1,229
                                   12,727       12,741

                                                               Adding value to life   19
                         Cash Movement to 31 March 
                                                              Continuing       
                                                              Operations          Group          Group
Rm                                                                 2009            2009           2008
Cash operating profit                                                         1,767                    1,842                    2,026
Working Capital                                                                 (541)                      (513)                      (553)
Cash generated from operations                                                1,226                    1,329                    1,473
Net Financing costs / Dividends received                                        (151)                      (140)                         (63)
Taxation paid                                                                   (574)                      (600)                      (490)
Dividend received from discontinued operation ‐ Sea Harvest                         22                              ‐                              ‐
Cash available from operations                                                   524                        590                        920
Dividends and capital distributions                                             (869)                      (877)                      (724)
Net cash (outflow)/inflow from operating activities                             (346)                      (288)                        195
Net cash outflow from investing activities                                      (308)                      (343)                      (422)
Net cash inflow from financing activities                                           80                          79                          51
Net decrease in cash and cash equivalents                                       (574)                      (552)                      (175)
Cash and cash equivalents at beginning of the period                            (957)                      (725)                        722
Cash and cash equivalents at end of the period                              (1,531)                   (1,277)                        546

                                                                                                                                                       Adding value to life   20
         Capital Expenditure & Commitments
as at 31 March                                                  2009       2008

Capital expenditure (Rm)                                       252        307
     ‐ replacement                                             129        128
     ‐ expansion                                               123        179

Capital commitments (Rm)                                       497        692
     ‐ contracted                                              139        331
     ‐ approved                                                358        361




                                                                                  Adding value to life   21
                      Financials
Summary


  Solid operating results/margins achieved in most businesses
  Robust market shares 

  Tiger continues to invest in core brands

  Strong balance sheet and cashflow from operations 

  Defensive portfolio in tough times




                                                         Adding value to life   22
                     GRAINS
Operational Performance




                 Thabi Segoale
               Managing Executive




                                    Adding value to life   23
                                    Grains
Profitability recovers despite softer volumes

Performance Highlights                      Key performance drivers 
    EBIT +35%                                    Management of costs
    Margins recovering vs FY08                   Improved conversion efficiencies
                                                 Declining raw material costs
Key challenge
     Volumes marginally lower (vs. inflated H1 08 base)




                                                                                Adding value to life   24
                                                                  Maize Milling
Momentum sustained on favourable trading environment
                                        Volumes ‐ (% change NCM)                                         Safex cash prices
              2200                                                                                                                                          30
                                                                                                                                                            25
              2000                                                                                                                                          20
                                                                                                                                                            15




                                                                                                                                                                  % Change
              1800                                                                                                                                          10
      R/ton




                                                                                                                                                            5
              1600                                                                                                                                          0
                                                                                                                                                            ‐5
              1400                                                                                                                                          ‐10
                                                                                                                                                            ‐15
              1200                                                                                                                                          ‐20
                     Oct‐06


                              Dec‐06

                                       Feb‐07

                                                Apr‐07

                                                         Jun‐07


                                                                  Aug‐07

                                                                           Oct‐07

                                                                                    Dec‐07

                                                                                             Feb‐08

                                                                                                      Apr‐08


                                                                                                               Jun‐08

                                                                                                                        Aug‐08

                                                                                                                                 Oct‐08

                                                                                                                                          Dec‐08


                                                                                                                                                   Feb‐09
   Strength in demand supports firm price realisations 
   Stable raw material costs improves margins
   Favourable trading environment sustains profitability
   Outlook remains positive

                                                                                                                                                                             Adding value to life   25
                     Wheat Milling & Baking
Increased investment stabilizes delivery platform
  Market shares stable
  Investment in facilities         all‐time high conversion efficiencies
  Brand investment strengthens Albany’s brand equity
  KZN bakery expansion capex approved by Board




                                                                           Adding value to life   26
                                                      Tastic Rice
High inflation impacts negatively on rice volumes
                                                     BOT (USD/ton)          CIF(R/ton)

               1,100                                                                                          9,000
               1,000                                                                                          8,000
                900                                                                                           7,000
                800                                                                                           6,000
     USD/ton




                                                                                                                      R/ton
                700                                                                                           5,000
                600                                                                                           4,000
                500                                                                                           3,000
                400                                                                                           2,000
                300                                                                                           1,000
                                                        Jul‐08



                                                                 Sep‐08



                                                                          Nov‐08
                       Jan‐08



                                Mar‐08



                                            May‐08




                                                                                   Jan‐09



                                                                                            Mar‐09



                                                                                                     May‐09
                                         Total rice market volumes drop 20% ‐ loss of  
                                         share to alternative carbohydrates
                                         International prices soften in USD terms
                                         High inflation maintained in Rand terms due to 
                                         weaker exchange rate
                                                                                                                              Adding value to life   27
                              Tastic Rice
Tastic rice business well positioned for market recovery

 Trading environment remains challenging
 Tastic gains share in a declining market
 Rice category recovery dependent on:
   •   Developments on international trade
   •   Rand exchange rate




                                                           Adding value to life   28
                           Breakfast Cereals
Tiger Breakfast portfolio consolidated for growth 

  Jungle facility delivering world class processing efficiencies
   •   Jungle Oats Instant launched
   •   Jungle B>fast gaining traction

  Consolidated breakfast portfolio
  Innovation broadens participation across all LSM groupings
  Platform set to grow market share 




                                                                   Adding value to life   29
                           Grains
Key focus areas to sustain margin recovery

  Drive for profitable volume recovery of core business

  Sustained superior manufacturing efficiencies  

  Sound raw material procurement strategies

  Continued investment in:
   •   Facilities
   •   Brands




                                                          Adding value to life   30
               CONSUMER BRANDS
Operational Performance   




                 Neil Brimacombe
                  Executive Director




                                       Adding value to life   31
                          Groceries
Maintains positive leverage
Volume growth remains robust

Net Sales              +25%
EBIT                   +31%
Operating Margin       +0.7 pp
Performance Drivers              Performance Inhibitors
    Pasta                             Ist Quarter Stock Shortages
    Canned meat                       Tomato sauce capacity
    Expense Management                Late crops
    PVM Management

                                                               Adding value to life   32
                         Groceries
Positive volume growth



Volume Performance
  Black Cat Peanut Butter     +2%
  All Gold Tomato sauce       +2%
  Koo Baked Beans             +26%
  Koo Chakalaka               +4%
  Canned Meat                 +3%




                                     Adding value to life   33
                          Market Share
Short term mirrors long term trend


       Volume Share (%)             12mm                   6mm
                             2008      2009   2008                      2009
    Baked Beans              65.5      69.3    67.0                      73.8
    Tomato Sauce             71.6      73.9    73.9                      74.7
    Peanut Butter            45.5      44.5    45.6                      44.2
    Jam                      62.2      62.0    61.2                      62.7
    Canned Veg               64.7      65.2    64.2                      66.4
    Pasta                    37.6      38.2    31.9                      43.8
                                              Source: Nielsen February 2009




                                                                                Adding value to life   34
            ALL GOLD Facility Investment
“Guaranteeing 36 sun ripened tomatoes”


   Expanded capacity installed
   World Class Capability
   Enhanced Efficiencies


  Tomato Sauce – Volume Market Share Highs

     2003            2008          Current
    65.7%           73.9%           77.6%
                                  Source:  AC Nielsen




                                                        Adding value to life   35
         Margin Expanding Innovation
Tomato Paste




                                       Adding value to life   36
               Innovation & Renovation
ALL GOLD Packs




   Tomato &      All Gold 100 years    All Gold 100 years   All Gold 100 years 
   Onion mix         750ml Pack             OOH Pack           Squeeze Pack


                                                                            Adding value to life   37
             Innovation & Renovation
ALL GOLD 100 years execution




                                       Adding value to life   38
                         Snacks & Treats
Consumers curtail snacking!!
Performance Highlights
    Sales  +8%
                              Volume
    EBIT   +10%
Performance Inhibitors
    Decrease in Chocolate Slabs demand 
    Lower Easter volume
    Higher than inflation cost pushes on raw materials & 
    packaging




                                                            Adding value to life   39
                                                          Snacks & Treats
Value share performance
                            Sweets: Trended Value Share                                                       Boxes & Assortments: Trended Value Share
                                                                                        29.5
44.0                                                                                                                                                        29.1
                                                                     42.9               29.0
43.0
               41.9
42.0                                                                                    28.5                                        28.3
41.0
                                              40.6                                                     27.8
                                                                                        28.0
40.0
                                                                                        27.5
39.0
            12MM Feb 07                    12 MM Feb 08          12 MM Feb 09           27.0
                                                                                               12MM 2 yrs ago Jan 07           12 MM Jan 08              12 MM Jan 09

                          BEACON    Linear (BEACON)        Source: Nielsen Trade Desk                                     BEACON      Linear (BEACON)




                          Moulded Slabs: Trended Value Share                                                       Barlines: Trended Value Share

15.8                                          15.7                                      18.4                                                                18.2
                                                                                        18.2
15.6                                                                                    18.0
15.4                                                                    15.3            17.8                                        17.3
                                                                                        17.6
15.2        15.0                                                                        17.4           17.2
15.0                                                                                    17.2
                                                                                        17.0
14.8                                                                                    16.8
14.6                                                                                    16.6
                                                                                        16.4
       12MM 2 yrs ago Jan 07             12 MM Jan 08           12 MM Jan 09
                                                                                               12MM 2 yrs ago Jan 07          12 MM Jan 08               12 MM Jan 09

                           BEACON     Linear (BEACON)                                                                      BEACON      Linear (BEACON)



                                                                                                           Source: AC Nielsen Jan/Feb 2009




                                                                                                                                                                        Adding value to life   40
              Managing the Downturn
Key Management initiatives


   Stringent Cost / Expense Management

   Relevant Innovation / small pack sizes

   Focus on the “economic engine” – Candy




                                            Adding value to life   41
             Snacks & Treats
Innovation

                     2009


             Profitable brand innovation: 
                         Sugar




                                             Adding value to life    42
                                                                    42
                                        Snacks & Treats
Current Innovation


                                              2009

                                                                     120G x 24’S : Retail Innovation across 5
                                                                                   core SKU’s


                                           Core brand innovation: 
                                             Chocolate & Snacks



                                                                                              240G x 12’S




 12 + 2 free in 100g x 12’s Wholesale
                 Packs
           5 core SKU’s only


                                                                                                  Adding value to life   43
                             Beverages
Refocus on Business model optimisation and cost reduction pays dividends


Net Sales          +8%
EBIT               +195%
Unprofitable SKU’s discontinued

 Key Brand Volume Performance
 Oros           +3%
 Energade       +2%
 Rose’s        +13%
 Hall’s               ‐12%

                                                                           Adding value to life   44
                        Beverages
Recovery: a very systematic approach

                     Two key thrusts
   BUSINESS MODEL                      EFFICIENCIES

    Stock position                      Conversion

    IT investment                         Logistics
                                            Range
                                       rationalisation



   Working Capital                       Lower Cost
                                                         Adding value to life   45
                          Beverages
Getting back on track

Further initiatives

   The growth story
       • Re‐investment in the core


   Further value chain re‐engineering:
       • Sales
       • Supply Chain




                                         Adding value to life   46
             Value Added Meat Products
Margins recovering BUT significant volume pressure!

                   Volume     ‐12% 
                   Net Sales +12%
                   EBIT        ‐9%


                       Significant levels of downtrading 
                       as consumers opt for “VALUE”
                       Increased brand investment vs PY



                                                            Adding value to life   47
             Value Added Meat Products
A focus on margin restoration


Management initiatives
   Price point management
   Overhead reduction at short interval
   Value Re‐engineering




                                          Adding value to life   48
             Value Added Meat Products
We have continued to invest

   World class slaughter and deboning facility 
   successfully commissioned

   Brand investment

   Innovation




                                                  Adding value to life   49
                         Out of Home
Reverts to “Inhome”

Ingredients – Holds up well
   Net Sales +6%
   EBIT       +16%

Ready to eat meals – Sustains losses
   Exit decision taken




                                       Adding value to life   50
                   Consumer Healthcare
“Tough times in the short term”

Key Themes
   Poor Pest Season 

   Consumer spending constrained ‐ Market Declines

   Margin Compression * Personal Care and Well‐Being
                         *  Co‐Pack Margin

   Baby Nutrition ‐ Slower growth but remains Positive with EBIT 
   expansion & market share gains



                                                                    Adding value to life   51
                          Baby Category
Nutrition props up the performance

Nutrition 
   Net Sales       +11%
   Jarred Baby food declines
   Cereals volume & market share growth

Well‐Being 
   Net Sales       +14%
   Margins impacted by co‐packing arrangements
   Core Toiletries volume & market share growth




                                                  Adding value to life   52
                    Baby Nutrition Innovation
Innovation Rate 16% of Net Sales (3 year average)




 Tastes of Africa         Innovation based on   Savoury Cream of 
                            clear consumer           Maize
                                insights




  Nutraflake – Cereals 
 with increased texture                         Juices – New 
                                                  Flavours

                                                                    Adding value to life   53
                        Home Care
Half year Pest dependency

  Net Sales   +4%           
  EBIT        ‐11%
  Poor Pest Season
  Volume on balance of portfolio is driven by 
  Fabric and Surface cleaning




                                                 Adding value to life   54
                        Personal Care
The “Lipstick effect”

   Net Sales   +18%
   EBIT        +13% 
   High inflation/cost push stifles demand
   “Value” propositions perform well in Designer 
   Group
   Co‐Pack margin / cost push compresses margins 




                                                    Adding value to life   55
                        Designer Group
Consumers pamper with good “VALUE”
Core Brands value growth
  Swankie      +44%
                                                #1 in Styling
  Kair         +22%
  Protein Feed +23%
Growth Drivers
  Wider distribution of products               #1 in Foot Care

  Constant renovation across all key brands
  Successful innovation delivery 
New Launches                                  Entry into Ethnic
                                                  Hair Care




                                                                  Adding value to life   56
                              L&AF
World markets slow down

  Net Sales    +2%          BUT…Volumes     18%     
  EBIT         +37%

Growth drivers (incremental EBIT)
  Exchange rate benefit

  Price

  Lower COGS


                                                       Adding value to life   57
                             L&AF cont…


Highlights
   Capital projects successful
   Fair agricultural season – good yields

Key Issues / Challenges
   Global slow down
    •   volumes 
    •   shipping rates 
   Can cost push
   Strengthening exchange rate
   Working capital


                                            Adding value to life   58
                                    Fishing
Oceana produces excellent results

  Oceana results published on 7 May 2009
  HEPS  +59%
  Growth and improved profitability driven by:
   •   Canned fish/Horse Mackerel
   •   Higher export realisations
   •   Diversified portfolio
  Good horse mackerel and pilchard catch rates
  Alternative sourcing in place for pilchards




                                                 Adding value to life   59
                                  Sea Harvest
Discontinued Operation

 Net Sales         +9%
 EBIT              +20%
 Sale of Tiger’s 73.16% interest in Sea Harvest to Brimstone 
 Consortium
  •   Consideration R541m and price escalations from 1 October 2008
  •   PWC confirmed sale terms fair to Tiger shareholders
  •   Competition Tribunal approval on 25 March 2009

 Remaining conditions precedent
  •   Brimstone shareholder approval on 28 May 2009
  •   Written confirmation of sufficient funding to pay Tiger
  •   Tiger Brands/Sea Harvest separation agreement


                                                                      Adding value to life   60
          Tiger Brands International
Operational Performance




                  Peter Matlare
                          CEO




                                       Adding value to life   61
                     Tiger Brands International
Our Priority Zones

 West Africa
 • Ghana
 • Ivory Coast                                    East Africa
 • Nigeria                                        • Kenya
                                                  • Uganda
                                                  • Tanzania
                                                  • Ethopia



      Central Africa
      •   Cameroon
      •   Gabon
      •   DRC
      •   Congo
      •   Chad




           Southern Africa
           • Angola
           • Mozambique
           • Zambia

                                                               Adding value to life   62
                  Tiger Brands International
Key indicators

                                 Driven by:

                                    In country and product focus
  Net Sales       +46%

                                    In country investment
  EBIT            +57%
                                    Shoprite investment




                                                             Adding value to life   63
                Tiger Brands International
Country specific indicators
                   Net sales    EBIT    Comments

   Exports          R148m      R23m     Excluding deciduous fruit

   Acquisitions     R295m      R28m     • Very satisfactory progress
                                        • Solid volume growth
                                PAT
   Carozzi           n/a       R57.8m   Includes:
  (Associate)                           • R16.8m capital profit on
                                          disposal of 50% CALA
                                          business (Argentina)
                                        • Benefits of stronger Chilean
                                          Peso


                                                                 Adding value to life   64
                      Tiger Brands International
 HACO (Kenya)
                               Total business performance vs PY
                                              +15%                +15%




          % Growth
                            +5%




                            VOL             Net Sales             EBIT
                                                Rm                 Rm

Note: R2.5m restructuring charge in F2009
                                                                         Adding value to life   65
             Tiger Brands International
Chococam (Cameroon)
             Total business performance vs PY
                                                +42%




                               +29%




  % Growth




              +5%




             VOL            Net Sales           EBIT
                                 Rm              Rm

                                                       Adding value to life   66
             Tiger Brands International
An Acquisition based strategy

         Strategic Issues                    Financial Issues

   Focus on East, West, Central       Funding dependent on 
   and Southern Africa                acquisition but avoiding 
   Emphasis on food and will          currency risk is a key factor
   consider HPC                       Targeted returns:
   Controlling stake is preferable     • Payback 6‐8 years
   but will consider minority if       • Acquisition IRR to exceed in 
                                         country WACC + margin
   clear pathway to majority is        • EBIT margins:
   identified                                  1‐3 years c.6 ‐ 8%
                                               4‐5 years c.8 ‐ 10%
   Local partnership and RTM 
                                               ≥ 5 years +12%
   capability critical



                                                                     Adding value to life   67
                              Outlook
Summary

  Credible performance
  Clear strategies
  • People
  • Brands
  • Capacity / capabilities

  Acquisitions
  • Bedding down existing acquisitions
  • Actively pursuing new acquisitions

  Tough outlook



                                         Adding value to life   68

				
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