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• Illovo Group – Strategic Intent

  • Leading sugar and downstream products operation / increasing global player / world class
  • Low cost producer
  • Optimise return on every stick of cane by adding value to its core commodity products – fibre, sugar and molasses / focus on core business and develops material niche operations
  • Market leader
  • Increase profits in real terms / maximise return on capital
  • Moral, performance focussed
  • Welcomed in communities in which it operates
  • Cognisant of the rural locations of the group’s operations and the impact that it has on job creation and poverty alleviation in such areas

• Ownership of Operations

  • 100% of operations in South Africa
    o 3 sugar cane estates
    o 4 sugar factories
    o 2 refineries
    o 3 downstream operations
    o Corporate centre of the group
  • 60% of Ubombo Sugar Limited in Swaziland
    o Sugar cane estates
    o 1 sugar factory
    o 1 refinery
  • 76% of Illovo Sugar (Malawi) Limited
    o Sugar cane estates
    o 2 sugar factories
    o 2 refineries
    o Interests in ethyl alcohol production
  • 90% of Zambia Sugar in Zambia
    o Sugar cane estates
    o 1 sugar factory
    o 1 refinery
    o Domestic sugar fortified with Vitamin A
  • 55% of Kilombero Sugar Company in Tanzania
    o Sugar cane estates
    o 2 sugar factories
    o 1 refinery
  • 72% of Maragra Açúcar Sarl in Mozambique
    o Sugar cane estates
    o 1 sugar factory

• Major Group Strengths

  • Core focus on the production of low-cost, high-quality sugar and downstream products
  • African sugar producer with African expertise in sugar cane agriculture, sugar manufacturing and the production of high-value downstream products
  • Wide geographic and climatic spread of core interests with good access to secure water supplies for irrigation
  • Sugar markets:
    to 76% of sugar production by volume is sold into domestic or premium-priced export markets;
    o 6% of production is sold into regional markets where premiums to the world price are earned;
    o Balance sold on the world free market.
  • Good people

• Production statistics 2009

  • Sugar cane (‘000 tons): 

    Country	2009	2008
    South Africa	464	448
    Malawi	2 122	1 910
    Zambia	722	1 088
    Swaziland	741	769
    Tanzania	555	614
    Mozambique	450	460
    Total	5 054	5 289

  • Sugar (‘000 tons)

    Country	2009	2008
    South Africa*	922	868
    Malawi*	304	266
    Zambia*	194	234
    Swaziland*	210	222
    Tanzania*	118	127
    Mozambique	76	75
    Total	1 824	1 792

    * - Sugar cane supplied by the group’s own agricultural operations and private growers

     

  • Downstream production (see Marketing products/Downstream products)
    
    o Furfural
    o Furfuryl alcohol
    o Agriguard
    o BioMass Sugar
    o 2,3 Pentanedione
    o Ethyl alcohol
    o Lactulose

• Financial statistics (March year-end)

  Year ended 31 March			%
  		2009		2008	Change
  Results (Rm)
  Revenue		8 601.7		6 794.1	27
  Operating profit		1 386.2		1 064.5	30
  Net financing costs		183.7		170.4	8
  Headline earnings		741.8		599.6	24
  Share performance (cents per share)
  Headline earnings		211.6		171.6	23
  Dividend (interim - paid; final - declared)		106.0		85.5	24
  Year-end market price		2 849		2 964
  Balance sheet and cash flow (Rm)
  Total assets		8 264.4		6 262.8
  Ordinary shareholders' funds		2 773.8		2 373.3
  Net borrowings		2 411.1		1 168.3
  Cash generated from operations		1 569.7		1 101.2
  Financial ratios
  Operating margin (%)		16.1		15.7
  Effective tax rate (%)		19.9		15.7
  Debt : equity ratio		70.0		39.9
  Interest cover (times)		7.5		6.2
  Return on net assets (%)		22.0		24.1
  Net asset value per share (cents)		981.7		837.2
  Dividend cover (times)		2.0		2.0
  Price : headline earnings ratio		13.5		17.3