innscor presentation

7/27/2019 Innscor Presentation

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WHAT WE

ARE

FMCG I C

R

N R E C

O


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WHERE WE HAVE

COME FROM

1987: First Fast Food outlet openedExpansion of Fast Food outlets and brands

1993: Ac uisition of Astra Crocodile Ranchin Shearwater Adventures and

opening of distribution

1995: First plant bakery opened in Harare

1998: Listed Innscor Africa Limited on ZSE (INN.ZI)

Opened Fast Food outlets in Zambia, Ghana, Kenya and Senegal

1999: Acquired SPAR northern region business

2002: Shareholding acquired in Colcom Holdings Limited (COLC.ZI)

pened irst par outlets in Zambia2004: Shareholding acquired in National Foods Holdings Limited (NTFD.ZI)

2007: Innscor granted management contract for National Foods


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H E ARE

FMCG I C

R

N R E C

O


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RMCG I C R D S

F F

M M S

R S

N F

C

B

D

G A

SPAR DC

B R

SPAR

P SM

I B

I S

F P

I T

N F

P S

T S H

S

C D

C D

B D

F F

F F K

G S

D

D M

B R A

SPAR

R


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RLI EKPROING

PROINNDARMANUFARE

RAMARIALS

PRIMARMANUFARE

MILLING MANUFARING FLO

HEAT FLOUR MILLING BREAD

PIES

CONFEC

ROLLS

BISCUITS

BACON

MAI EMAI E MILLING

GRITS

SNACKS

PORK

SAUSAGES

HAM

FRESH PORK

SO AS STOCKFEEDS BEEF

FRESH CUTS

BOLO

MINCE


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DISRIBION HLELE FLO

I P G F

I

R

I

R S C O

B I B

C H B P

N

SPAR

F F

P S

D C

O R

I B

O B TM

B M

S

K

C

E

T B

I T

U

J J


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REIL FLO F F C

SPAR R P C S N C S

T S H S

P D P S S

S

C D

R F F C

SPAR R C S P S


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IMB E FMCG BINEN F

M C M P I M C

O C M P I M

C M C M P I M

C

S C M P I M

C


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IMB E FMCG BINE

C

T C

S

C


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F B C

C

I

C


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ZIMBABWE FMCG BUSINESSES

C C

M B C I P I

FA FODS

B I C I A F S

N

M B ISRIBION GRO AFRIC J J

C

K

T B

U

C

N B


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F AMBIA

H

SPA

I D

R B

N B


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KEN A GHNA SNEGAL C O F F C

NIGERIA F S F F F C


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UGANDA F F F C

MALA I F F F C


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GROWTH

FMCG CIN IMB Eo Further backward integration in the Manufacturing Flow to improve

, . . ,

o Increased utilisation of current available processing capacity

o Additional manufacturing lines whose products can be distributed

and retailed through our chain

o Expansion of retail space, SPAR and fast foods

o Continued backward integration into protein production


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GROWTH

FMCG CHAIN REGION

o Ex ansion of our retail foot rint in Zambia throu h SPAR Fast Food

Outlets and additional retail outlets

o Growth in the distribution of products: SPAR DC and wholesale outlets

o Backward integration in Zambia into primary and secondary manufacture

and protein production

o Duplication of Zimbabwes FMCG chain in Zambia


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GROWTH

FMCG CHAIN REGION (contd)

o xpan ng on ex s ng as oo coun ers n enya an ana an

adding supermarket retail outlets

o

once our retail footprint is fully established


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GROWTH

ACCESS CONSUME SPENDING

R

DISRIBION

REIL

MANUFARING


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H E ARE FMCG I C

R

N R E C

O


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CRODILE Acquired Two Farms in 1993.

- Productivity of 3,000 skins p.a.

- Avera e Skin size of 25cm.

We now have 3 Farms, with a

capacity of 20,000 skins p.a. each.

- Average Skin size of 36cm.

We are considering reducing production to 42,000 skins p.a. but to increase

average s n s ze o cm.


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Niloticus Annual Cull Off takes 1994 - 2011

50

60

)

30

40

ffta

ke

(000's

10

20

nnualCullO

0

A

1994

A

1995

A

1996

A

1997

A

1998

A

1999

A

2000

A

2001

A

2002

A

2003

A

2004

A

2005

A

2006

A

2007

A

2008

A

2009

F

2010

F

2011

F

Thousands

4 4.5 12 15 21.6 21.6 19 32 35.1 35.6 30.8 35.6 49.3 51.3 49.9 39.9 52 42


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Niloticus Average Skin Sizes 1994 - 2011

42

m

)

37

Sk

in

Size

(

27Average

221994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

25 27 27 27 29 30.1 32 31.2 30.5 31.3 31.9 30.04 30.62 31.1 34.1 36 40 42

A A A A A A A A A A A A A A A F F F


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T

C S P A S

N

H B

M TCIM F H L S

M H G P K P

L B


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G

M

E P

A F

T


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H E ARE FMCG I C

N E C

O


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R RR E PRT LINE B T

T

S A


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INNSR AFRIC LIMITD .

The majority of our senior management andpartners have in excess of 10 years experience

in the Group.

Small group head office and independent

.


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INNSR AFRIC LIMITD-

management and partners.

We have an established base in the FMCG chain.

Through our operating companies we havesubstantial commercial and industrial property

o ngs.


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INNSR AFRIC LIMITD.

We will continue to take advanta e of the s ner iesand our varying skills in the expansion of the Group.

We are the largest Niloticus skin producer in theworld.


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INNSR AFRIC LIMITD In Zimbabwe, we are the lar est in:

- Pork production

- Fast Food retailing

-

- Milling

- Manufacture of fridges and freezers

- e a ng o omes c e ec r c app ances.

We will grow and duplicate these businesses in

Zimbabwe and the region.


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F M I


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WHERE WE HAVE

o Rigorous price controls

o Draconian exchange controls

o Low utilisation of factory capacities

o Companies focused heavily on pricing for devaluation

o Main focus was to ensure whatever profit was made was

quickly banked onto the balance sheet


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WHERE WE HAVE

con

o e a o ensure a e or no oca currency mone ary asse s were

held

,

basis

local currency

o We uickl invested an rofits and borrowin s into stock, forei n

currency prepayments or local hedge equity assets such as Old Mutual

o Availability of foreign currency was negligible; however our export

businesses could service our importing businesses

WHERE ARE WE NOW


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WHERE ARE WE NOW

AND WHERE ARE WE

GOING TO

o Utilisation of a multi-currency system

o Freeing up of exchange controls

o Lifting of price controls

o Increased competition and price reductions

o Significant increase in retail volumes

WHERE ARE WE NOW


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WHERE ARE WE NOW

AND WHERE ARE WE

GOING TO (contd)

o eop e wan ng va ue or e r o ar

o Abilit to start brin in businesses to account

o The re-introduction of credit facilities

o Staff costs have become real

o y cos s now rea

o Tax now a real cost and a ma or issue for com anies to deal

with

OUR MAIN FOCUS IN


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OUR MAIN FOCUS IN

THE NEW

ENVIRONMENT

o nsure our us nesses opera e o a pre- e ne ra ng

model

o Focus on achieving turnover goals, but more importantly

increasing Gross Profit dollars

o Ensure correct costs to turnover ratios

o nsure a eac us ness opera es o a correc wor ngcapital model

o We want to ensure the full utilisation of our shareholders

equity

OUR MAIN FOCUS IN


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OUR MAIN FOCUS IN

THE NEW

ENVIRONMENT (contd)

o e canno a or o ave ea asse s on our a ance

sheet

o Big focus on return on shareholders equity

correct rent is being levied and extracted out of the business

o ac us ness o prov e a spec e cas re urn o our head office

OUR MAIN FOCUS IN


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OUR MAIN FOCUS IN

THE NEW

ENVIRONMENT (contd)

o The cash return will be used to ensure dividends are paid toshareholders (on a pre-determined dividend yield) and

prov e cap a or grow oppor un es

o Continue to grow retail space

o Continue to add businesses that enhance our FMCG chain

throughout this chain


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Innscor Africa Limited Quarterly Average Share Price (US Cents)

70

80

50

60

s

30

40

U

S

C

en

20

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


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Innscor Africa Limited Quarterly Average Market Capitalisation (USD)

350

400

250

300

n

s)

150

200

SD(

Milli

100

-

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


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%CONT RIB UT ION T O ZIMBABWE T U R N O V E R F OR NINE MONTHS E N D E D

31 M A R C H 2009OtherExports S ilo

Distribution a nd WholesaleS ilo

11%

Millin a nd RetailS ilo

57%

Manufacturing S ilo25%


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%CONTRIBUTIONT O REGIONAL TURNOVER F OR Tourism S ilo

1%Distribution a ndWholesale S ilo

19%

RetailS ilo80%


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% C ONT R IB UT IONT O Z I M B A B W E O P E R A T ING P R O F I T Corporate S ervic e s

S ilo

7%

11 %

Distributiona n d W h o l e s a l e S ilo

16 %

Milling a n d Manufacturing S ilo

3%

63 %


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% C O NT R IB UT IO NT O R E G IO NA L O P E R A T I N G P R O F I T F O R NINE MONTHS E N D E D 31MA R C H2009

Touris m S iloR e ta ilS ilo

Dis tri ution an Who les ale S i lo

75 %


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% C ONT R IB UT ION T O G R O U P S HA R E HOL DE R S FUNDS A S A T 31 MA R C H 2009

C orpora te S ervice s S ilo13 %

Retai lS ilo

9%

OtherExports

S ilo29 %Miling a nd

Manufacturing S ilo41 %

Distribution a n d W h o l e s a l e S ilo

8%


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COMPOSITIONOF GROUP A S S E T S AS AT 31MARCH2009

C as h resources6% L a n d a ndbuildings

8

Debtors

12%

Movablef ixedassets28%

S toc k

14%

Investments

17%Biologicalassets

15%


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C om po s ition of Group equity an d liabilities as at31 March 2009P rovis ions Taxation

C reditors

19%

1% 0%

Interestbearingdebt4%

Deferredtaxation3%

S hareholders funds73%


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THANK OU

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