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The Cotton Company of

Zimbabwe

PresentationResults for the year ended

31 March 2005

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The Cotton CompanyPROGRAMME OUTLINE

1.Overview of full year performance

2.Financial Highlights (Historical Cost)

3.Detailed Financial Review Turnover

Cost of Sales

Operating Expenses

Finance costs

Balance Sheet

Cashflow

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The Cotton CompanyPROGRAMME OUTLINE (CONT)

5.Outlook

6. Questions

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The Cotton CompanyOVERVIEW OF THE FULL YEAR

(CONT)

Operations (Cont)

Scottco and Quton Seed Co performed to

expectation

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The Cotton CompanyOVERVIEW OF THE FULL YEAR

(CONT)

Industry Regulation

Gvt response still being awaited

Monetary authorities also keen to see order

restored within the cotton sub-sector

Prospects look bright

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The Cotton CompanyOVERVIEW OF THE FULL YEAR (CONT)

Inputs Credit Scheme

Further streamlined

$44bn disbursed Vs $52bn in prior year

Recovery in money terms 97%

High financing cost a challenge

National inputs scheme the answer

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The Cotton CompanyOVERVIEW OF THE FULL YEAR (CONT)

Investments

Stake in SeedCo now 40% up from 34.75%

SeedCos contributed $73bn to PBT

Prospects look bright

Outlook To be covered after financials have been presented

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The Cotton CompanyDETAILED FINANCIAL REVIEW

Turnover ^ 317 %

Consolidation of SeedCo

Increased Sales Volumes ( Lint & Ginned seed ) Improvement in lint prices

COS 503 %

SeedCo consolidated

Increase in producer price of 350%

Seed cotton volume higher

Sales volumes higher

Inflationary pressure on other operating costs

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The Cotton CompanyDETAILED FINANCIAL REVIEW

GP @ 37 % down from 55 % last year

Increase in producer price of 350%

Fairly static exchange rate

Pricing issues in SeedCo

Inflationary pressure on other operatingcosts

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The Cotton CompanyDETAILED FINANCIAL REVIEW

(CONT)

Operating Expenses 493 %

SeedCo consolidated

Seed cotton purchases volume

Higher sales volumes Inflationary pressures

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The Cotton CompanyDETAILED FINANCIAL REVIEW (CONT)

Net F inance Costs ($206 bn)

Increased seed cotton purchases ($351bn)

Delays in accessing and disbursement of offshorelines

Productive sector finance accessed only 10% ofseed cotton purchases value.

High interest rates Increase in producer price (350%)

Inflationary pressures on other w/capitalrequirements.

Slow offtakedomestic market

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The Cotton CompanyDETAILED FINANCIAL REVIEW (CONT)

Balance Sheet

SeedCo has been consolidated

Increase in inventory levels attributable to increasein producer price and increased stockholding

Increase in receivables and creditors mainlyattributable to exchange rate reviews ( Cottco

export Drs US$15 mn) Increase in short term borrowings attributable to

increase in the volume of seed cotton purchases +high cost of borrowing ( Cottco offshore

borrowings US$32mn @ 7.5% p.a)

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The Cotton CompanyDETAILED FINANCIAL REVIEW

(CONT)

Cashflow

Significant increase in SedCo F/Assets

Increase in funding requirementsbigger

crop + financing cost

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The Cotton Company

OUTLOOK

Industry has successfully lobbied for a cotton

support price ( To October 2006) Meaningful funding @ 5 % has already been

accessed

Recent exchange rate review/ review of other

export incentives Planting seed sales to-date are encouraging

Current projectionsfirmer international lintprices

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Questions