AGENDA

1. WELCOME AND INTRODUCTION PEARSON GOWERO

2. TRADING REVIEW PEARSON GOWERO

3. FINANCIALS MATTS VALELA

4. DISCUSSION/QUESTIONS ALL

5. REFRESHMENTS ALL

VOLUME BEVERAGE CATEGORY

• Declined by 7% LAGER BEER

• SBs declined by 11%SOFT DRINKS

• Declined by 3% SORGHUM BEER

1. Calendar 2016 most challenging year since dollarisation.

- limited payment platforms.

- cash withdrawal limits.

- bond note introduction had limited impact on cash shortages.

- delays in foreign payments.

2. Numerous fiscal and monetary policy interventions which made the operating environment

increasingly uncertain.

3. Aggressive Zimra collection measures and numerous police roadblocks.

4. Heavy rains – damages to road infrastructure, reduced access to markets and consumption

occasions.

5. Generally stretched consumers and traders; increased credit risk.

TRADING ENVIRONMENT-MOSTLY HEADENDS

VOLUME PERFORMANCE SUMMARY

Category Actual Volume

000hl

% Change on

Prior Year

1. BEVERAGES (HLS 000)

1.1 Clear Beer

1.2 Sorghum Beer

1.3 Sparkling Beverages

1.4 Alternative Beverages

1 214

3 488

1 237

160

(7)

(3)

(11)

(16)

Total Excluding Associates 6 099 (6)

2. Malt Tonnage 27 560 (21)

VOLUME BY PROVINCE

Lager Beer Sorghum Beer Soft Drinks

F17 F16 F17 F16 F17 F16

Bulawayo11 11 10 6 13 12

Harare45 46 33 32 47 46

Manicaland11 11 12 13 3 3

Mashonaland Central1 1 2 3 2 2

Mashonaland East2 3 1 1 1 3

Mashonaland West9 9 16 16 10 9

Masvingo Province7 7 11 13 7 8

Matabeleland North2 2 1 2 2 2

Matabeleland South1 1 2 2 2 2

Midlands Province11 9 12 12 12 11

Grand Total100 100 100 100 100 100

QUARTERLY VOLUME & REVENUE PERFORMANCE

$136 $151 $155

$121

$152 $163 $174

$143

$-

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q1 Q2 Q3 Q4

Gro

ss S

ale

s $

mil

lion

Volu

me

Hl

'000

Volumes F17 Gross sales F16 Gross sales

Significant revenue loss in second half

LAGER BEER VOLUME & REVENUE PERFORMANCELAGER BEER FULL YEAR VOLUME PERFORMANCE F13 TO F17

2 060

1 697

1 4141 307

1 214

$352

$316

$278

$235 $215

$0

$50

$100

$150

$200

$250

$300

$350

$400

0

500

1 000

1 500

2 000

2 500

F13 F14 F15 F16 F17

Gro

ss s

ale

s $m

illi

on

Vo

lum

e H

l '0

00

Volume Gross Sales

LAGER BEER VOLUME & REVENUE PERFORMANCELAGER BEER VOLUME & GROSS SALES BY QUARTER

290318 331

275$52

$57 $59

$48

$0

$10

$20

$30

$40

$50

$60

$70

0

50

100

150

200

250

300

350

Q1 Q2 Q3 Q4

Gro

ss s

ale

s $m

illi

on

Vo

lum

e H

l '0

00

Volume Gross Sales

TRADING REVIEW- LAGER BEER MIX

HLs ‘000

-

200

400

600

800

1,000

1,200

1,400

F16 F17

14% 15%

59% 59%

27%26%

Premium

• Slower decline in volume – stabilised mix.

• Market share remained steady.

• Mainstream contribution anchored by 750ml pack.

LAGER BEER

SORGHUM BEER VOLUME & REVENUE PERFORMANCE

3,080

3,442 3,716

3,587 3,488

$118

$146$176

$193

$179

$0

$50

$100

$150

$200

$250

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

F13 F14 F15 F16 F17

Gro

ss s

ale

s $m

illi

on

Vo

lum

e H

l '0

00

Volume Gross Sales

LAGER BEER VOLUME & REVENUE PERFORMANCESORGHUM BEER VOLUME & GROSS SALES BY QUARTER

936

967

842

743

$46$51

$45

$38

$0

$10

$20

$30

$40

$50

$60

0

200

400

600

800

1 000

1 200

Q1 Q2 Q3 Q4

Gro

ss s

ale

s $m

illi

on

Vo

lum

e H

l '0

00

Volume Gross Sales

TRADING REVIEW- SORGHUM BEER MIX

HLs ‘000

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

F16 F17

44% 40%

56% 60%

Chibuku Chibuku Super

SORGHUM BEER

• Chibuku Super growth constrained by capacity limitations and

water shortages up to December 2016.

• Masvingo and Kwekwe breweries commissioned in last quarter.

• Scud resilient as a value pack.

• Market access affected by damages to road infrastructure.

• Cash shortages restricted consumption particularly in rural

areas.

SPARKLING BEVERAGES VOLUME & REVENUE PERFORMANCE

1,615 1,589

1,472 1,385

1,237

$231 $225$204

$183

$154

$0

$50

$100

$150

$200

$250

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

F13 F14 F15 F16 F17

Gro

ss s

ale

s $

mil

lio

n

Vo

lum

e H

l '0

00

Voulme Gross Sales

LAGER BEER VOLUME & REVENUE PERFORMANCESOFT DRINKS VOLUME & GROSS SALES BY QUARTER

293

362441

301

$37

$43

$51

$35

$0

$10

$20

$30

$40

$50

$60

0

50

100

150

200

250

300

350

400

450

500

Q1 Q2 Q3 Q4

Gro

ss s

ale

s $m

illi

on

Vo

lum

e H

l '0

00

Volume Gross Sales

TRADING REVIEW- SPARKLING BEVERAGES MIX

HLs ‘000

100

400

700

1 000

1 300

1 600

F16 F17

58% 60%

42%40%

Convenience pack

RGB

SPARKLING BEVERAGES

• Increased imports – traders exploiting COMESA

protocol (Zambia and Mozambique).

• Growth in value packs.

• Overall franchise brands at over 90% market

share shored up by parallel imports.

BEVERAGE VOLUME CONTRIBUTION

F16 F17

Lagers

20%

SBs

21%

Sorghum

56%

Maheu

3% Lagers

20%

SBs

20%

Sorghum

57%

Maheu

3%

VOLUME CONTRIBUTION BEER CATEGORY

F16 F17

Lagers27%

Sorghum73%

Lagers

26%

Sorghum

74%

AFDIS

• Stable volume and revenue performance.

• Factory throughput constrained by delayed foreign payments.

SCHWEPPES ZIMBABWE LIMITED

• Steady volume performance in core beverages.

• Financial performance weighed down by agri-processing units; Best

Fruit Processors and Beit Bridge Juicing Company.

NAMPAK ZIMBABWE

* Expected to publish half year results in May 2017.

• Challenges with foreign payments.

ASSOCIATES

OTHER DEVELOPMENTS

2. The Coca-Cola Company issued a notice of intention to terminate the Bottler Agreements with Delta and its associate SZL. TCCC and AB InBev intention to restructure interests. Negotiations are underway with TCCC and AB InBev. There is no position yet on Zimbabwe.

1. Change in major shareholder following combination of AB InBev and SABMiller as of 10 October, 2016. Trigger for Bottling franchise issues.

AGENDA

1. FINANCIAL HIGHLIGHTS

2. FINANCIAL STATEMENTS

% CHANGE VS PR. YR

VOLUME REVENUE

Volumes (000hls)

• Lager Beer (7%) (8%)

• Sorghum beer (3%) (6%)

• Soft Drinks (11%) (15%)

Total (6%) (10%)

VOLUME & REVENUE PERFORMANCE ENDING 31

MARCH 2017

FINANCIAL HIGHLIGHTS

REVENUE

Declined by 10% to $483 million (Turnover - $563m)

OPERATING MARGIN %

Down from 20% to 19,07%

EBIT

Down by 15% to $82 million

FINANCIAL HIGHLIGHTS

EBITDA

Down by 13% to $112,8 million

ATTRIBUTABLE INCOME

Declined by 13% to $69,9 million

DIVIDEND PER SHARE

DIVIDEND PER SHARE

Up 16% on prior year

Interim dividends paid per share- US 3,00cents

Final dividend proposed per share- US 2,45 cents

Cont….

EARNINGS PER SHARE

Decreased by 12% to US5,70 cents

STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD

MARCH 2017

US$000’s

MARCH 2016

US$000’s

REVENUE 482 968 538 198

Operating income 82 044 96 072

Net finance expense 4 539 5 895

Share of associates profit 1 834 3 944

PROFIT BEFORE TAX 88 417 105 911

Taxation ( 18 532) (25 822)

PROFIT FOR THE YEAR- CONTINUING

OPERATIONS69 885 80 089

Profit for the year from discontinued operations - -

TOTAL COMPREHENSIVE INCOME FOR THE

YEAR69 885 80 089

EARNINGS PER SHARE

MARCH

2017

MARCH

2016

%

Change

Normal EPS (from Continuing

operations) – Cents5,70 6,49 (12)

Fully Diluted EPS (from

Continuing operations) Cents5,69 6,48 (12)

Dividend per share - Cents 5,45 4,70 16

MARCH

2016

US$’ 000

25 575

22 525

39 108

87 208

8 864

96 072

SEGMENT OPERATING INCOME

MARCH

2017

US$’ 000

MARCH

2016

US$’ 000

LAGER BEER 22 866 25 575

SPARKLING BEVERAGES 14 295 22 525

SORGHUM BEER 34 986 39 108

TOTAL REPORTABLE SEGMENTS 72 147 87 208

ALL OTHER SEGMENTS 9 897 8 864

TOTAL OPERATING INCOME 82 044 96 072

ASSETS2017

US$000’s

2016

US$000’s

Non-current assets

Property, plant and equipment 354 947 345 332

Investments, loans and trademarks 56 124 54 776

TOTAL NON-CURRENT ASSETS 411 071 400 108

CURRENT ASSETS

Inventories 77 753 86 431

Trade and other receivables 41 931 43 683

Cash and cash equivalents 173 334 166 016

TOTAL CURRENT ASSETS 293 018 296 130

TOTAL ASSETS 704 089 696 238

STATEMENT OF FINANCIAL POSITION MARCH

STATEMENT OF FINANCIAL POSITION MARCH

EQUITY AND LIABILITIES2017

US$000’s

2016

US$000’s

Share Capital 12 301 12 310

Share Premium 32 044 33 074

Reserves 7 389 5 985

Retained Earnings 452 128 436 530

Shareholder’s equity 503 862 487 899

Long- term borrowings - 65 000

Deferred taxation 50 022 48 833

50 0222 113 833

CURRENT LIABILITIES

Short term borrowings 60 000 -

Interest free liabilities 90 205 94 506

TOTAL CURRENT LIABILITIES 150 205 94 506

TOTAL EQUITY AND LIABILITES 704 089 696 238

cont…

CASH FLOW

2017

US$000’s

2016

US$000’s

Cash flow from operating

activities108 344 137 463

Net cash invested (40 460) (49 426)

Net funding 113 334 101 016

SHARE CAPITAL MOVEMENTS

Shares in Issue as at 31 March 2016 1 244 313 975

Share Options Exercised1 198 225

Cancelled shares (2 108 076)

Shares in Issue as at 31 March 2017 1 243 404 124

Shares held in treasury 21 218 614

FOCUS AREAS FOR F18

1. Resolving the bottling franchise matter.

2. Driving top-line given the projected improved agricultural and

mining output.

3. Managing value chain costs against unsustainable pricing of cereals.

4. Intensifying market facing activities.

5. Maintain sound industrial relations in an environment of focused

cost control.

6. No major capex projects - prioritising replacements.

CHEERS