Professional Documents
Culture Documents
AGENDA
Strategic and operational overview Zondi Kumwenda Chief Executive Office Financial Overview Francis Rwakonda Finance Director Future outlook Zondi Kumwenda
ZIMPLOWHOLDINGS
Strategic and operational overview Zondi Kumwenda Chief Executive Office
OURMISSION,VISIONandVALUES
OURBRANDPROFILE
GROUPLEGALSTRUCTURE
ZIMPLOWSTRATEGICSTRUCTURE
Manufacturer and distributor of fasteners PRODUCTS AluminiumBlindRiverts Screws MildSteelBoltsandNuts MildSteelHexSets MildSteelStudding HighTensileBoltsandNuts WasherProducts NailsandNailProducts
y Distributoroffarming equipment.
y y y y y y
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y Earthmovingand miningequipment
y y y y y y y
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y Cardealershipand servicing.
y y y y y
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Distributoroffarming equipment.
CaseProducts y CaseCombines y Baldan
y
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OPERATIONS
MEALIEBRAND
OPERATIONS
MEALIEBRANDCONTINUED
Volumeswereaffectedbythefollowing yApoor2011/2012agriculturalseasoncharacterisedbypoor harvestandcottonpricewarsthatsawlocalsalesunitsdropping. yLateanderraticrainsfor2012/13seasonsaffectedthenormal seasonalofftake,resultinginlowerlocalvolumes. yLowdisposableincomeandthetightliquidityinthemarketalso continuedtoaffectlocalrevenues. yAsaresultoftheabove,theMealie BrandDivison reliedheavily onexportswhichtraditionallyhavethinmarginsbecauseof competitionfromtheEast.
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OPERATIONS
CTBOLTS
5% down
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OPERATIONS
CTBOLTScontinued Volumeswereaffectedbythefollowing yLowdisposableincome yIndigenisationhasaffectedtheminingindustry
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OPERATIONS
TASSBURG
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OPERATIONS
AFRITRAC
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TPHLOPERATIONS
BARZEM FARMEC
Service turnover(hours) was 22 823 hours against a budget of 14 649hours Parts turnover was $4 328 000 against a budget of $2 288 000
Service turnover(hours) was 11 749 hours against a budget of 8 800 hours Parts turnover was $2 086 000 against a budget of $1 905 000 Implements sales were $1 441 000 against a budget of $1 395 000
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TPHLOPERATIONS
NORTHMEC PUZEYANDPAYNE
Service turnover(hours) was 895 hours against a budget of 1 023 hours Parts turnover was $102 000 against a budget of $110 000 Implements sales were $105 000
Analyst Briefing 7 March 2013
Service turnover(hours) was 26 273 hours against a budget of 21 515 hours Parts turnover was $1 627 000 against a budget of $1 226 000 Forecourt sales(Litres) were 1 705 275
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FINANCIALOVERVIEW
FrancisRwakonda FinanceDirector
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SALIENTFEATURESGroup
Grouprevenue
40 30 20 10 0 Dec12 35.6 Dec11 15.5
USDmillion
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SALIENTFEATURESCompany
Companyrevenue
15 14 13 12 11 Dec12 Dec11
USDmillion
12.8 14.7
Companyoperatingprofit
USDMillion
4 3 2 1 0 1.4 3.3
31Dec 31Dec 11
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INTERESTCOST
Groupinterestcostswere$1016879(lastyear$78493)
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STATEMENTOFCOMPREHENSIVEINCOME
GROUP 31Dec2012 31Dec2011 Revenue Operatingprofit Restructuringexpenses 35610823 1779007 (1941388) 15503306 3464529 170744 3635273 (904991) 2730282 52954 COMPANY 31Dec2012 12807190 1379830 (1045644) (192248) (141938) (277499) (135561) (135561) 31Dec2011 14654404 3345083 161748 3506831 (864006) 2642825 264282526
Fairvaluelossoninvestment (90000) property Netfinance(costs)/income (Loss)/Profitbeforetax Incometaxexpense (Loss)/Profitaftertax Noncontrollinginterest (736833) (989214) (15962) (1005176) (192422)
STATEMENTOFFINANCIALPOSITION
ASSETS
Property,plantandequipment Othernoncurrentassets Currentassets TOTALASSETS EQUITYANDLIABILITIES Sharecapitalandreserves NonControllinginterest Totalequity Longterminterestbearing liabilities Deferredtax Currentliabilities Totalliabilities TOTALEQUITYANDLIABILITIES 24316977 9522812 33839789 143025 3389214 15791391 19323630 53163419 13725199 512633 14237832 621484 1886081 2507565 16745397 24775610 24775610 1122931 1194009 2316940 27092550 13759761 13759761 621484 1718099 2339583 16099344
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GROUP
31Dec2012 18997554 2678544 31487321 53163419 31Dec2011 2863605 13692191 16745397
COMPANY
31Dec2012 4593130 10401920 12058500 27092550 31Dec2011 2857481 700318 12541545 16099344
STATEMENTOFFINACIALPOSITION
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GROUPPERFORMANCESTATISTICS
FY2012 Interest cover(times) Equity/Total assets Current ratio Quick ratio Return on total assets Return on capital employed Net assets value per share (24) o.63 2:1 0.95:1 (2%) (3%) 6 cents FY2011 44 0.85 7:1 4:1 22% 26% 4.2 cents
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STATEMENTOFCASHFLOWS
GROUP 31Dec12 Cash(outflow)/inflow)fromoperations Taxpaid Netfinancecostspaid Netcash(out)inflowfromoperatingactivities Acquisitionofproperty,plantandequipment Acquisitionofsubsidiary Otherinvestingactivities Cashusedininvestingactivities Proceedsfromissueofequityinstruments Otherfinancingactivities Dividendspaid Netcashin/(out)flow fromfinancingactivities (Decrease)/Increaseincashandcashequivalents Cashandcashequivalentsatthebeginningofthe year (1155998) (683335) (736833) (2576166) (351074) (9289198) 51003 (9589269) 11209254 275511 (907950) 10576815 (1588620) 3947912 31Dec11 2589147 (910078) 170744 1849813 (510762) 355919 38207 (116636) (686851) (686851) 1046326 3033588 3947912 (522713)
COMPANY 31Dec2012 31Dec2011 2271341 (871236) 161748 1561853 (508796) 38207 (470589)
Lookingahead
ZONDIKUMWENDA CHIEFEXECUTIVEOFFICER
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Considerableopportunitiesintractorsand
tractordrawnfarmingequipmentsegment, particularlyinthedomesticmarket
Inlightoftherobustgrowthdemonstratedby
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Zimplows exposuretothethesebusinesseswill
thereforeofferanavenueforproductand marketdiversificationwithintheagriculture andminingsectors,whichsectorsareexpected tobeatthecentreofZimbabweseconomic resurgence. TheinvestmentalsooffersZimplow the potentialtoincreaserevenueandreducecosts throughtheexploitationofregionalcross sellingopportunities,enhancedeconomiesof scale,technologyandproductsharing.
Analyst Briefing 7 March 2013 33
Overall,therefore,thisinvestmentwill
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l
FUTUREPROSPECTS y Governmentandvariousmultilateral institutionsexpecttheagriculturalandmining sectorstodrivethegrowthoftheeconomyin theshorttomediumterm. y Theminingsectorinparticular,willbenefit significantlyfromfirmingglobalcommodity prices,andexpectedinvestmentsinpowerand infrastructure. y Electionpresentsbothopportunitiesandrisks, andthekeyistofindthebalance.
Analyst Briefing 7 March 2013 35
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FUTUREPROSPECTS
y Thecountry,however,hasbeenexperiencingerratic rainfallpatternsandattimesfullblowndrought. y Zimbabwe'ssovereignriskhasalsobeenviewedashigh byinternationalinvestorsthuslimitingaccessto internationalcapitalinflows. y Thesefactorspresentsignificantriskforthegroup goingforward. y Thegroupwill,however,bebetterplacedtoabsorb suchrisksshouldtheyariseowingtoabetter diversifiedrevenuestream.
Analyst Briefing 7 March 2013 36
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SPECIFICSTEPS
1. Significantreductioninthelevelofborrowings
andassociatedcostsbyquarter3. 2. Aimtoreduceoperatingcostsinsomeunits andimproveefficiences throughtheworkshops andfactories. 3. Improverevenuesinthetractordivision throughassetbasedfinance. 4. CompletetheCTBolts/Tassburg marriageby Quarter2.
Analyst Briefing 7 March 2013 37
L
FUTUREPROSPECTS HalfYearOutlook yExpectdiscontinuedoperationscostsinthefirst half. yExpectasmalloperatingprofitorbreakevenin thefirsthalfandaprofitablesecondhalf,with morethan ofrestructuringcostsalready absorbedin2012.
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QUESTIONS???
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