investor presentation year end 06 f

8/13/2019 Investor Presentation Year End 06 f

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Investor Presentation19 December 2006


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Organisational Structure

Coffee Estates

New Year's Gift

Chinyika

Petrunella

Tingamira EPZ

Avontuur

Helvetia

Outgrowers

Tea Estates

Ratelshoek, Avontuur

Jersey, Helvetia

Zona

Agriculture

Director

Tanganda Estates

Corporate

Commercial Director

Finance Director

Group Human Resources Manager

Packaging Plant

Mutare

Marketing and Distribution

Mutare, Harare

Gweru

Bulawayo

Beverage Division

General Manager

Board of Directors


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Operating Environment

Macro-economics Exchange rate rigidity for prolonged period Inflation of over 1000% and rising Interest rates

Estates Weather uncertainty Labour

Beverage

Weak demand Shortage of packaging material Complementary products

Financial Working capital management


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Highlights (Historical)

Beverage Division volumes down 29% butrevenue up 1 276%

Tea production up 2% at 8 500 tonnes(2005: 8373 tonnes)

Turnover up 1029% to $2 541 million

Export revenue up 727% to $992 million

Operating Profit up 1261% to $1 388 million Earnings per share up 1099% at $8.63

(2005: $0.72)


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Where the profit came from

Operating Costs upAgriculture 996%

Beverage 900%

Corporate 1352% Total : 1002%Turnover up

Exports 727%

Local 1375% Total : 1029%

Annual inflation 1070%Average inflation 997%


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Turnover in 2003 & 2006

2003

Agriculture

82%

Beverage

18%

2006

Beverage64%

Agriculture36%


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2003

Operating Profit in 2003 and

2006

Beverage30%

Agriculture

70%

2006

Beverage57%

Agriculture43%


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Working Capital Management$ Million 2006 2005 Change Inc.%

Stocks

Finished product

Domestic $ 222 $ 32 $ 200 883%

Export $ 190 $ 33 $ 157 474%

Stores $ 690 $ 42 $ 656 1718%

$1 115 $ 107 $ 1 007 1077%

Debtors

Domestic $ 379 $ 21 $ 358 1700%

Export $ 127 $ 25 $ 102 400%

Other $ 239 $ 16 $ 223 1400%

$ 745 $ 63 $ 682 1082%

Creditors $ 500 $ 49 ($ 451) 920%

Total increase in working capital $1 240


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Operations Agricultural Division

Volume strategy

Quality strategy

Mechanical Harvesters

Costs


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Operations Beverage Division

Margin maintenance

New Products

Tinga Mira waterCash collection

Costs


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Operating Costs

Fertilizer

Power

Fuel Plucking Labour

Maintenance

Packaging Material


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International Average Tea

Yield Per Hectare

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Zimbab

we

Tangan

da

Malawi

K

enya

India

SriL

anka

Bangla

desh

Indone

sia

2005


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Regional Production

0

50

100

150

200

250

300

350

2002 2004 2006

Tanganda

Zimbabwe

Kenya

Malawi

Tanzania


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World Tea Supply and

consumption (000 tonnes)

2700

2800

2900

3000

3100

3200

33003400

3500

3600

2001 2002 2003 2004 2005

Production

Consumption


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World Price of Tea Ex-Auction

1986 2005

0

50

100

150

200

250

300

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

IN US $ CTS. PER KG


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Black Tea Prices

0

20

40

60

80100

120

140

160

Nov-04

Nov-05

Oct-0

6

Tanganda

Mombasa


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Tanganda Prices

0

50

100

150

200

250

300

Nov-04

Nov-05

Oct-0

6

TangandaMombasa


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Outlook

Short-term

Late start to the rainy season Concentration on increasing yields(farming)

and quality (practices)

Some expansion

Further development of out-growers New products in Beverage Division

Devaluation?


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OutlookMedium-term

350 ha of immature tea coming to maturity overnext 5 years

300ha available for further development Out-growers

Macadamias- 150 ha in the ground, 2 tonnes/ha@ US$1.30/kg

Coffee reduction New products in Beverage

Add value to our core product - tea


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Thank you for coming!

Snack Time

There are many members ofmanagement present, so please

feel free to ask them aboutthe year.

investor presentation year end 06 f

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