Results For the Year ended 31 December 2011 Analyst Briefing 23 February 2012
  Presentation Outline <ul><li>Strategic & Operational Overview </li></ul><ul><li>Zondi Kumwenda </li></ul><ul><li>Chief E...
  STRATEGIC & OPERATIONAL OVERVIEW <ul><li>“ Mealie Brand from Generation to Generation” </li></ul>Analyst Briefing 23 Feb...
MISSION AND VISION <ul><li>MISSION </li></ul><ul><li>“ To avail quality affordable and reliable steel products on time eve...
ZIMPLOW VALUES <ul><li>Integrity -  Being absolutely truthful and accepting responsibility for our actions </li></ul><ul><...
GENERAL BACKGROUND <ul><li>The group comprises of 3 divisions: Mealie Brand, CT Bolts and Tassburg and a new South African...
Solid Group Performance Analyst Briefing 23 February 2012 26% 24% 17% - 15.5M 3.6M 2.7M 1 cent 12.3M 2.9M 2.3M 1 cent REVE...
MEALIE-BRAND OPERATIONS Analyst Briefing 23 February 2012 Local implements(units) Export implements(units) Total Implement...
<ul><li>Drought in East Africa, delayed seasonal take –off and cheap competing products from the far east were major facto...
CT BOLTS OPERATIONS Analyst Briefing 23 February 2012 2010 2011 22% 97 465 118 674 2010 2011 -6% 29 098 27 488 2010 2011 3...
TASSBURG OPERATIONS Analyst Briefing 23 February 2012 2010 2011 17% 1 087 1 271 2010 2011 59% 59 002 93 903 2010 2011 3% 1...
MAJOR COST MOVERS <ul><li>Employment costs driven mainly by a 20% increase </li></ul><ul><li>Steel prices increased by an ...
FINANCIAL OVERVIEW <ul><ul><ul><ul><ul><li>F. RWAKONDA, GROUP FINANCE DIRECTOR </li></ul></ul></ul></ul></ul>Analyst Brief...
Summarized Group income statement <ul><li>Revenue    15 503 306  12 298 300  26% </li></ul><ul><li>Domestic   11 235 468  ...
Group Income Statement <ul><li>. </li></ul>Analyst Briefing 23 February 2012 26% 24% 17% - 15.5M 3.6M 2.7M 1 cent 12.3M 2....
Revenue Contribution Analyst Briefing 23 February 2012
Profitability contribution Analyst Briefing 23 February 2012
Strong Market Leadership Analyst Briefing 23 February 2012
Group Statement of Financial Position Analyst Briefing 23 February 2012 31 Dec 2011 31 Dec 2010 Assets Property, Plant & E...
Group Statement of Cash flows Analyst Briefing 23 February 2012 31 Dec 2011 31 Dec 2010 Operating income before    Working...
<ul><li>Business environment </li></ul><ul><li>More cost pressures that will be brought about by huge wage demands  </li><...
ZIMPLOW LIMITED <ul><ul><ul><ul><ul><li>THANK YOU </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>AND GOD BLESS </li...
<ul><ul><ul><ul><ul><li>QUESTIONS? </li></ul></ul></ul></ul></ul>Analyst Briefing 23 February 2012
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Zimplow FY2011 Analyst briefing presentation

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Zimplow FY2011 Analyst briefing presentation

  1. 1. Results For the Year ended 31 December 2011 Analyst Briefing 23 February 2012
  2. 2. Presentation Outline <ul><li>Strategic & Operational Overview </li></ul><ul><li>Zondi Kumwenda </li></ul><ul><li>Chief Executive Officer </li></ul><ul><li>Financial Performance Overview </li></ul><ul><li>Francis Rwakonda </li></ul><ul><li>Finance Director </li></ul><ul><li>Strategic Issues & Outlook </li></ul><ul><li>Zondi Kumwenda </li></ul><ul><li>Chief Executive Officer </li></ul>Analyst Briefing 23 February 2012
  3. 3. STRATEGIC & OPERATIONAL OVERVIEW <ul><li>“ Mealie Brand from Generation to Generation” </li></ul>Analyst Briefing 23 February 2012 Z.Kumwenda, Chief Executive Officer
  4. 4. MISSION AND VISION <ul><li>MISSION </li></ul><ul><li>“ To avail quality affordable and reliable steel products on time every time to the mining, farming, construction and manufacturing sectors” </li></ul><ul><li>Vision: </li></ul><ul><li>“ To be a market leader in the Design, Sourcing and Distribution of at least one of our products in 18 countries south of the Sahara by 2020 ” </li></ul>Analyst Briefing 23 February 2012
  5. 5. ZIMPLOW VALUES <ul><li>Integrity - Being absolutely truthful and accepting responsibility for our actions </li></ul><ul><li>Quality – Excellence in everything we do. </li></ul><ul><li>Teamwork – Leverage on each other’s strength </li></ul><ul><li>Dependability - Our stakeholders, must be able to count on us. </li></ul><ul><li>Fun - Enjoy every moment. </li></ul>Analyst Briefing 23 February 2012
  6. 6. GENERAL BACKGROUND <ul><li>The group comprises of 3 divisions: Mealie Brand, CT Bolts and Tassburg and a new South African subsidiary-Afritrac </li></ul><ul><li>Mealie Brand is the largest of the 3 divisions and is involved in the supply of animal drawn implements and hoes. The factory is based in Bulawayo. </li></ul><ul><li>CT Bolts is a distributor of mild steel bolts and nuts, nails and a wide range of other fasteners. The division also manufactures specialised fasteners at its Bulawayo factory. </li></ul><ul><li>Tassburg is a supplier of Wood screws, Veranda Bolts and High tensile bolts. The factory is based in Harare. </li></ul><ul><li>African Traction and Associated Technologies is engaged in import and sale of animal drawn implements and tools </li></ul><ul><li>The group employs 503 employees. </li></ul>Analyst Briefing 23 February 2012
  7. 7. Solid Group Performance Analyst Briefing 23 February 2012 26% 24% 17% - 15.5M 3.6M 2.7M 1 cent 12.3M 2.9M 2.3M 1 cent REVENUE EBT NET INCOME EPS
  8. 8. MEALIE-BRAND OPERATIONS Analyst Briefing 23 February 2012 Local implements(units) Export implements(units) Total Implements(units) Spares(units) Production(kgs ) 2010 2011 46% 29 102 42 389 2010 2011 8% 29 433 31 724 2010 2011 -11% 642 236 570 464 2010 2011 27% 58 535 2010 2011 -1% 3 262 520 74 113 3 224 281
  9. 9. <ul><li>Drought in East Africa, delayed seasonal take –off and cheap competing products from the far east were major factors affecting exports </li></ul><ul><li>The late rains in the region affected both export and domestic revenues. </li></ul><ul><li>Liquidity challenges which intensified towards the end of 2011affected domestic revenue. </li></ul><ul><li>Local cost increases especially labour and electricity weighed down margins. </li></ul>MEALIE-BRAND OPERATIONS CONTINUED Analyst Briefing 23 February 2012
  10. 10. CT BOLTS OPERATIONS Analyst Briefing 23 February 2012 2010 2011 22% 97 465 118 674 2010 2011 -6% 29 098 27 488 2010 2011 34% 3 592 629 4 815 025 2010 2011 32% 13 577 960 17 915 457 2010 2011 87% 1 782 391 3 338 082 2010 2011 -14% 116 311 Mild Steel Bolts(kgs ) Nails(Kgs) Mild Steel(Units ) HT Bolts(Units) Screws(Units) Production(kgs) 2010 2011 -12% 1 517 394 Miscellaneous 1 743 668 128 012
  11. 11. TASSBURG OPERATIONS Analyst Briefing 23 February 2012 2010 2011 17% 1 087 1 271 2010 2011 59% 59 002 93 903 2010 2011 3% 12 805 13 163 Rivets(kgs ) Screws(kgs) Verandah (kgs)
  12. 12. MAJOR COST MOVERS <ul><li>Employment costs driven mainly by a 20% increase </li></ul><ul><li>Steel prices increased by an average of 33%. Heavy snow storm in the US and Europe caused shortages of scrap, hence affecting the global prices </li></ul><ul><li>We expect the steel prices to settle as and when the coal or iron ore prices correct themselves. </li></ul><ul><li>Fuel prices up 17% from January 2011 and so are haulage costs. </li></ul>Analyst Briefing 23 February 2012
  13. 13. FINANCIAL OVERVIEW <ul><ul><ul><ul><ul><li>F. RWAKONDA, GROUP FINANCE DIRECTOR </li></ul></ul></ul></ul></ul>Analyst Briefing 23 February 2012 “ But seek first the kingdom of God and His righteousness and all these things will be added to you.” Matthew 6 v 33
  14. 14. Summarized Group income statement <ul><li>Revenue 15 503 306 12 298 300 26% </li></ul><ul><li>Domestic 11 235 468 8 635 365 30% </li></ul><ul><li>Export 4 267 838 3 662 935 16% </li></ul><ul><li>PBIT 3 464 529 2 776 062 24% </li></ul><ul><li>Net Interest income 170 744 146 191 16% </li></ul><ul><li>PBT 3 635 273 2 922 253 24% </li></ul><ul><li>Taxation (904 991) (580 252) 55% </li></ul><ul><li>Attributable Income 2 730 282 2 342 001 16% </li></ul>Analyst Briefing 23 February 2012 31 Dec 2011 31 Dec 2010 Variance
  15. 15. Group Income Statement <ul><li>. </li></ul>Analyst Briefing 23 February 2012 26% 24% 17% - 15.5M 3.6M 2.7M 1 cent 12.3M 2.9M 2.3M 1 cent REVENUE EBT NET INCOME EPS
  16. 16. Revenue Contribution Analyst Briefing 23 February 2012
  17. 17. Profitability contribution Analyst Briefing 23 February 2012
  18. 18. Strong Market Leadership Analyst Briefing 23 February 2012
  19. 19. Group Statement of Financial Position Analyst Briefing 23 February 2012 31 Dec 2011 31 Dec 2010 Assets Property, Plant & Equipment 3 053 206 2 845 090 Current Assets 13 692 191 10 648 562 Total Assets Equity and liabilities Total Equity 14 237 832 11 342 051 Liabilities 2 507 565 2 151 601 Total equity and liabilities 16 745 397 13 493 652 16 745 397 13 493 652
  20. 20. Group Statement of Cash flows Analyst Briefing 23 February 2012 31 Dec 2011 31 Dec 2010 Operating income before Working Capital Changes 3 685 540 3 006 698 Working Capital Movement (1 096 393) (468 951) Net Cash flow From Operating Activities 1 849 819 2 220 579 Financing and Investing Activities 803 487 226 942 Net Cash Flows 3 947 912 3 033 588 The group has an investment with Renaissance Merchant Bank amounting to USD 420 027.
  21. 21. <ul><li>Business environment </li></ul><ul><li>More cost pressures that will be brought about by huge wage demands </li></ul><ul><li>Electricity tariff increases by ZESA of 51% and increase in all utilities will be fully felt in 2012 </li></ul><ul><li>Rainfall patterns in the region continue to be erratic </li></ul><ul><li>The Company is still pursuing its growth strategies aimed at improving local and regional competitiveness . </li></ul>LOOKING AHEAD Analyst Briefing 23 February 2012
  22. 22. ZIMPLOW LIMITED <ul><ul><ul><ul><ul><li>THANK YOU </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>AND GOD BLESS </li></ul></ul></ul></ul></ul><ul><li>Zimplow Limited </li></ul><ul><li>39 Steelworks Rd </li></ul><ul><li>Steeldale </li></ul><ul><li>Bulawayo </li></ul><ul><li>Zimbabwe </li></ul><ul><li>www.zimplow.co.zw </li></ul>Analyst Briefing 23 February 2012
  23. 23. <ul><ul><ul><ul><ul><li>QUESTIONS? </li></ul></ul></ul></ul></ul>Analyst Briefing 23 February 2012

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