ANALYST PRESENTATION 29 JANUARY 2015 2014 Group Financial Performance REVENUE OPERATING PROFIT SHARE OF ASSOCIATES PROFIT BEFORE TAX (Excluding fair value adjustment) 19% 4% -56% -5% 10% $ 48.2 Million [2013: $ 40.6 M] $ 7.3 Million [2013: $ 7.1 M] $ 0.7 Million [2013: $ 1.6 M] $ 8.0 Million [2013: $ 8.4 M] 1.71 Cents [2013: 1.55 Cents] HEADLINE EARNINGS  Turnover up 19% to $ 48.2 million.  Operating profit up 4% to $ 7.3 million.  Share of associates down $ 0.9 million to $ 0.7 million resulting in 5% decline in Profit Before Tax to $ 8.0 million (excluding fair value adjustments).  Quality of earnings as measured by Headline Earnings up 10% to 1.71 cents.  Final dividend of 0.4 cents per share declared representing a cover of 3.4 times. 2014 Group Financial Position NAV 4% CURRENT RATIO 1.4 [2013: 1.2] HUNYANI INVESTMENT IMPAIRMENT NONCONTROLLING INTERESTS $ 0.8 Million $ 2.0 Million [2013: $ 4.9 M]  Group Net Asset Value up 4% .  Cash flows swung from negative in 2013 to positive in 2014.  Current ratio improved from 1.2 to 1.4.  Hunyani Investment marked to market – impaired by $ 0.8 million.  Decrease in Non-Controlling Interests from $ 4.9 million to $ 2 million Chemco and Propak Minority buyout.  Trade debtors comparable to last year. Total receivables up due to product prepayments at year-end. FY, 2014 Highlights  Audited 2014 Group Operating Profit up 4% to $ 7.3 million.  Weak contribution from associates affects group PBT.  Margin pressures affect performance of Hessian business.  Reduction in valuation of investment properties due to prevailing market conditions.  Larger tobacco crop positively impacts Auctioning business.  Tobacco grower scheme delivers 3.6 mkg - 50% up on last year.  Good volume growth in logistics business.  Premier Forklifts contributes strongly in first year.  Trading operations on right trajectory despite higher than expected start-up costs.  Sound growth in Real Estate operations.  Hunyani Investment successfully incorporated into Nampak Zimbabwe.  Chemco delisted in May 2014.  Final dividend of 0.4 cents per share declared. Logistics Operations Bak Logistics 1. Good volume growth recorded in General Cargo and Distribution divisions. Future growth hinges on national trade volumes. 2. Steps to expand the revenue streams in logistics continue- e.g. Rail Transport. 3. Partnership initiatives with international logistics operators progressing well – regional focus. 4. Discussions to acquire a complementary logistics business at an advanced stage. Premier Forklifts 1. Strong revenue and profit contribution in first full year. 2. Efforts underway to grow revenues and expand customer base. Avis 1. Business remained marginally profitable despite a difficult tourism environment. 2. Efforts to build new revenue streams continue. 3. Vehicle replenishment programme will continue to be aligned to market realities. Tobacco Operations Tobacco Sales Floor 1. Sound revenue and profit performance in 2014. 2. Market leader position increased by 10% to 50% of auction volumes. 3. 22% of revenue from handling contracts and growing. Propak Hessian 1. Revenue up 24% on the back of a successful campaign to secure new customers. 2. Lower profitability in 2014 due to deliberate steps taken to align operating margins to the market. 3. New competitive product sources secured - will improve profitability going forward. TSL Classic 1. Target production of 3.6 mkg achieved. 5.5 mkg processed for export. 2. Debtor recoveries satisfactory. 3. Efforts to secure more appropriately structured funding continue. Real Estate Operations TSL Properties 1. Good performance driven by strong demand for warehousing space. 2. Third party rentals up 8% to 33% and growing. 3. Phased refurbishment programme continues - to retain property values. 4. Efforts continue to ensure optimal deployment of space – e.g. racking. 5. The 9 000 sqm of additional warehouses are now completed and fully let. Trading operations Chemco 1. Delisting concluded in May 2014. Agricura 1. Satisfactory profit performance with revenue 10% up on 2013. 2. Improved profit margins due to more efficient product sourcing - expected to continue into 2015. TSL Trading 1. Subdued volumes and higher than expected start up costs negatively impacted performance. 2. Realignment of organizational cost structure already yielding results in 2015. 3. Good growth prospects based on Growers Schemes and supplying corporate agriculture. Associated Companies 1. Reorganization of Nampak Zimbabwe investment (Hunyani, MegaPak and CMB) concluded on 1 October 2014. 2. 2014 profit contributions from associates well below 2013 levels. 3. Nampak Zimbabwe – significant value growth expected in the medium term from this diverse packaging business. Looking into the future We will continue to focus on creating sustainable value through the established clusters i.e. Logistics, Agriculture, Real Estate and Trading. Logistics Acquisition of a complementary logistics business. Seeking to establish a firm presence in the region through formalised partnerships with International Logistics Operators. Deepening the Distribution service offering – e.g. cold chain distribution. Introducing new services such as rail. • • • • Agriculture Beyond tobacco – well planned entry into other agricultural commodities. Focus on activities that incorporate value addition and exports. Securing appropriately structured funding (tenure and pricing) for the Group. • • • Real Estate Optimal use of existing space – e.g. racking. Increasing third party tenancy. Feasibility work for an Industrial Park at our Vostermans Property. • • • Trading • Increased growth prospects based on Growers Schemes and supplying corporate agriculture www.tsl.co.zw