INNSCOR AFRICA LIMITED

PRESENTATION TO ANALYSTS F2013 4 SEPTEMBER 2013 www.innscorafrica.com

 OPERATING ENVIRONMENT

GROUP RESULTS F2013

HIGHLIGHTS BY BUSINESS

CLOSING REMARKS BY CEO

OPERATING ENVIRONMENT

OPERATING ENVIRONMENT
Macro-economic conditions generally weak Liquidity issues towards latter part of year

Increased competition from Rand imports

Consumer habits changing Diminished local production of key raw materials

OPERATING ENVIRONMENT
Strong generation of free cash continues Significant investment in expansion and maintenance projects Continued focus on growing market share Improved utilisation of synergies within the Group

GROUP RESULTS F2013

SUMMARISED GROUP STATEMENT OF COMPREHENSIVE INCOME

OPERATING PROFIT TO REVENUE

PBT TO REVENUE

DIVIDEND PER SHARE

REVENUE BY SEGMENT

OPERATING PROFIT BY SEGMENT

PBT BY SEGMENT

SUMMARISED GROUP STATEMENT OF FINANCIAL POSITION

RETURN ON EQUITY

CAPITAL EXPENDITURE

SUMMARISED GROUP STATEMENT OF CASH FLOWS

HIGHLIGHTS BY BUSINESS

BAKERIES & FAST FOODS

BUSINESS HIGHLIGHTS BAKERIES & FAST FOODS BAKERIES Volumes increased by 12% over prior year to 128.3 million loaves

Two new additional bread lines commissioned during H2 F2013, taking capacity to 450,000 loaves per day
New bread roll line and small confectionery line also recently commissioned Two further bread lines planned for commissioning during H1 F2014

BUSINESS HIGHLIGHTS BAKERIES & FAST FOODS FAST FOODS Improved product and pricing strategies successfully introduced at Chicken Inn and Pizza Inn

New Fish Inn brand launched in April 2013

21 additional counters added to the Zimbabwean store network Refurbishment programme continued

BUSINESS HIGHLIGHTS BAKERIES & FAST FOODS FAST FOODS (contd) Additional outlets will be added in Harare, Mutare, Chegutu, Masvingo and Bulawayo during F2014

Minority shareholding in FF Northern business acquired with effect from 1 April 2013

BUSINESS HIGHLIGHTS BAKERIES & FAST FOODS FAST FOODS (contd) Customer counts within the regional operations increased by 4% to 11.7 million customers

16 additional counters opened during the year

210 regional counters operating at year end An additional 31 counters planned for F2014 Nigerian market being reassessed

DISTRIBUTION GROUP AFRICA

BUSINESS HIGHLIGHTS DISTRIBUTION GROUP AFRICA 17% volume growth recorded in Zimbabwean operations Improved gross margins and good cost control enhanced profitability Volume growth of 10% in Zambia 7% decline in volumes in Malawi but an improvement in results achieved

SPAR

BUSINESS HIGHLIGHTS SPAR Retail operations still in a loss position but significant improvements made at store level Head Office function to be amalgamated with that of SPAR DC SPAR Letombo outlet successfully re-launched during H2 F2013 Investigations underway to add additional corporate stores

BUSINESS HIGHLIGHTS SPAR Reduced profitability at SPAR DC due to restructuring cost provisions incurred Rights to operate the SPAR franchise in the Western region recently acquired 72 outlets currently operating under various SPAR brands

Pleasing results recorded at SPAR Zambia

Network consists of 6 Corporate stores and 7 franchised operations

COLCOM

BUSINESS HIGHLIGHTS COLCOM

Disappointing results recorded for the year A number of processes undertaken to re-energise the business Approximately USD4 million of one-off charges processed to the income statement

Investment in F2014 to be focused on improving factory efficiencies and product quality

BUSINESS HIGHLIGHTS COLCOM

Associated Meat Packers performed exceptionally well during the year 8 Texas low-cost protein retail outlets operational by year end Additional outlets currently being developed

Significantly improved results expected for F2014

HOUSEHOLD GOODS

BUSINESS HIGHLIGHTS HOUSEHOLD GOODS

TV SALES & HOME Volume increase of 11% recorded over prior year Higher mix of furniture sales 9 additional outlets opened across Harare, Karoi, Marondera, Chinhoyi, Hwange and Kadoma New revolving-credit scheme recently introduced Quality of debtors book remained good

BUSINESS HIGHLIGHTS HOUSEHOLD GOODS

CAPRI Volumes increased by 19% Continued focus on lowering manufacturing costs New refrigerator plant scheduled for installation towards end of 2013 Work continues to develop and secure market share with Hisense products

ASSOCIATE AND OTHER BUSINESSES

BUSINESS HIGHLIGHTS ASSOCIATES & OTHER NATIONAL FOODS Volumes increased by 21% from prior year to 489,000 metric tonnes

Results enhanced by some one-off profit streams

Significant increase in raw material stocking positions 8 factories operational during the year 7 additional depots opened

BUSINESS HIGHLIGHTS ASSOCIATES & OTHER IRVINES Strong contribution to overall Group results Recorded 11% increase in volumes of processed chicken sales, whilst day-old chicks sales grew by 16% Production efficiencies at both farm and factory levels continue to improve profitability Further investment to be made in day-old chick production

BUSINESS HIGHLIGHTS ASSOCIATES & OTHER NATPAK With effect from 1 July 2012 shareholding in NatPak increased to 66.67%

Large packaging requirement in the Group

Strong demand for core polypropylene woven packaging products New investment in plant for production of bread bags to be commissioned in H1 F2014