megan barber

megan barber designs

logo designs publications annual reports advertising

This document is intended to offer a succinct and pertinent introduction – an extended business card but abridged CV -

to myself as a skilled and experienced graphic designer and businesswoman.

I am happy to offer any additional detail you may need and am proud to show my portfolio of work.

My clients include:

The South African Breweries World of Beer

The South African Breweries (Alrode Brewing)

Kgalagadi Brewing Company of Botswana

Richmont International

The Da Vinci Institute for Technology Management

The Country Club Johannesburg

The Parkview Golf Club, Johannesburg

The Association of Responsible Alcohol (ARA);

Arcus Gibb Consulting Engineers

APS PlanAfrika Town Planning

The National Occupational Safety Association

The Gauteng Economic Development Agency

African Defence Systems (ADS)

(I am happy to provide contact references).

My work for these organisations has includeddesigns for:

Corporate identities

Corporate literature (annual reports, marketing literature, posters, magazines etc)

Advertising

Below the line material (such as promotional clothing, sales material etc)

All this has necessitated my direct involvement in:

Consulting with clients to determine time frames, budgets and other objectives;

Analysing clients’ needs, undertaking researchand planning presentation of material;

Preparing concepts and illustrations of other visualrepresentation of final material;

Submitting designs to clients for approval

Preparing notes and instruction for finishing artiststo assemble and prepare final artwork for printing,display or electronic use;

Reviewing final layouts and suggest changes andimprovements through proofing stages;

Directing photography and reproduction of illustrations and other graphics.

Commissioning and briefing copywriters and liaisingwith printers and mailing houses.

For almost the past decade, I have managed a successful design studio under my own name – MeganBarber Designs cc – in Johannesburg, South Africa, and provided designs for a number of blue chip SouthAfrican corporations.

During this time, the studio’s profitability has grown consistently.

I am the sole owner of the studio and work alone, outsourcing allied requirements such as copywriting andprinting, where necessary.

logo designs

To do this work, I am proficient in the electronic design programmes of Quark Express, Photoshop and Freehand.

Proficiency in the designing art has evolved from a three-year apprenticeship with what was, at the time, a leadingJohannesburg studio, Graphicor, and thereafter at three other South African studios.

I opened Megan Barber Designs in 1999.

Success at my own business has demanded design qualities covering:

Thoroughness and meticulousness

Ability to work quickly and under pressure

Ability to meet deadlines,

Ability to offer a wide range of styles rather than just one, personal approach;

Ability to adhere to the creative brief and other client guidelines

Excellent knowledge of design and typography.

At a personal level, I am:

Friendly, hardworking, a perfectionist, accommodating, co-operative and committed.

My personal interests include all facets of art and design, birds and other wildlife, and personal psychology.

I was born and grew up in Johannesburg, South Africa and completed my schooling there before traveling in theUnited Kingdom and Europe for three years.

Since my return, I have lived in Johannessburg, where I own my own home.

I have also traveled on numerous occasions to Australia, where I have a married sister, a niece and nephew.

I am aged 42, single and in good health.

publications

annual reports

advertising

megan barber designs

C U L L I N A N

INDUSTRIAL

Stylish living in space and tranquilityCOUNTRY ESTATE

Issue 1. February 2008

Inside: TT100 Awards 2007

GETTING GOOD IDEASOFF THE GROUND

You’re holding a new magazine intended for

readers with a commitment to developing

technology, innovation, people and systems

thinking in South Africa.

It’s a venture between the Mail & Guardian

and the Da Vinci Institute for Technology

Management, South Africa’s foremost

private higher education institute.

Edge will offer readers an insight to the

latest trends, developments and thinking in

the management of technology, innovation,

people and systems, in a bid to foster the

empowerment of organisations and the

extension of individual potential.

It will also offer readers valuable, usable

information developed by the enterprises

recognised as South Africa’s Technology

Top 100.

Edge will be pubished quarterly.

cont

ent

Introducing Edge 2Good ideas must benefit 4economy, says Dr Phil Mjwara

SA Experiment will 6transform service delivery

Technology Top 100 8Technology Top 100 winners 11Altech Netstar’s vehicle 12tracking ideas

DebTech ready to share 16its know-how

ATE flies high in 18new thinking

Accsys makes sure 22people really are ‘most important assets’

PFK Electronics takes its 24security innovations abroad

Altech moves into broadband 28Innovative protection 30for hot water geysers

Young entrepreneur 34captures eye-care market

New platinum moulding 38technology aids jewellery industry

New bone graft material 40ready for surgeons

Technology combats stress 42How to read employees’ 44minds

edge february 2008 | 1

visit www.davinci.ac.za

The Da Vinci Institute for Technology Management (Pty) Ltd - Registered with the Department of Education as a private higher education institutionunder the Higher Education Act, 1997. Registration Certificate No. 2004/HE07/003

An MSc in the Management ofTechnology and Innovation,

takes today’s business managerinto the beyond.

It’s essential to every manager, ofwhatever qualification or position

in the company; crucial tostudents seeking increased

business competence;the very essence of achieving

competitive supremacy globally.

perfect for everyonewith bright ideas

business decisions in the complex

world of technology goes way

beyond financial justification to

the realms of the triple bottom

line, short-term obsolescences and

much else.

South Africa’s uniqueness, history

and innovative mindset among all its

people have earned it recognition as

a leader in technology management.

Navigating an operation through the

complexities of the modern business

environment demands an ability

to move away from Newton’s world

of “either/or” to the notion of

“both/and”.

As technology increasingly permeates

virtually every move by globally

successful organisations, managers’

exposure to the essence of the

technology management grows ever

more critical.

Our sincere hope is that Edge will

prove valuable to minds that seek to

grasp the ubiquitous impact of

technology, innovation, people and

systems, to foster understanding of

the issues facing those who develop

technology and those who use it.

Professor Roy Marcus

CEO of Da Vinci Holdings

2 | edge february 2008 edge february 2008 | 3

SCENE SETTER

Edge is intended to expose you to the

ideas, mindsets and approaches of

some of the world’s smartest thinkers

in their management of technology,

innovation and people.

Welcome to this, the inaugural issue.

Edge will carry news, interviews and

case studies, in the hope that readers

will learn something from them, be it

profound or just a neat new way of

doing things, and be able to apply

it to their advantage in their personal

lives or businesses.

Its focus is sharply on Technology,

Innovation and People. The magazine

comes to you jointly from:

• The Da Vinci Institute, an

international centre of excellence in

the field of technology management

and innovation, where we pride

ourselves on a development model

founded on international best

practices; and

• The Mail & Guardian.

At Da Vinci we believe we

understand the business world; we

have pioneered new thinking around

the human-technology interface and,

through our collaborators and our

industrial, research and academic

associates, we bring a spectrum of

best-of-breed offerings to operations

striving to be globally competitive.

Our cutting-edge thinking in all

aspects of technology management

and our high-level think tanks

are catalysts for action both by

governments and by leading

industrialists.

Several convictions are integral to

our ethos.

As technology becomes more

pervasive, no manager in any

operation irrespective of training or

position - can contribute adequately

to business performance without

appreciating the fundamentals of

managing technology. Making

Success for people and businesses in today’s world demandscutting-edge international thinking on managing organisations.

Learn what thesmart thinkersare thinking

As you’ll read alongside, Edge exists to expose the ideas and approaches of

smart thinkers in their management of technology, innovation and people.

Publication of this, the first issue, coincides with the announcement of the

Technology Top 100 companies, under the auspices of the Department of

Science and Technology.

What’s known as the TT100 is South Africa’s foremost business excellence

awards programme, acknowledging with fanfare the success that today’s

businesses enjoy through their development and use of technology.

More importantly, the awards honour these organisations for the value their

use of technology brings to the South African economy.

Whether they’re small, medium or large businesses, or technology

organisations such as science councils and universities, the TT100 are the

enterprises that optimise technology to maximise profits, gain market share,

create niche markets and add value for their stakeholders.

Edge is proud to reveal, from page seven, details of their achievements.

Revealed: South Africa’s top technology companies

A MAIL & GUARDIAN

PUBLICATION, PUBLISHED

BY M&G MEDIA LIMITED,

GROSVENOR CORNER,

195 JAN SMUTS AVENUE,

ROSEBANK,

JOHANNESBURG, 2196.

TEL: 011 250 7300

EDITOR:

Neville Barber

ASSISTANT EDITOR:

Sue Purbrick

ADVERTISING:

Hana Schneeberg

011 250 7416

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DESIGN AND LAYOUT:

Megan Barber Designs

The plan proposes that innovation be

seen as a national competence and

recommends several instruments to

make it so.

One of these is a Technology

Innovation Agency (TIA).

“It’s a funding and enabling agency,”

Mjwara explains, “to ensure that

outputs of our public research

institutions find their way into the

real economy.”

The TIA, he adds, will create

government-funded competence

centres through which universities

and research institutes can work with

the private sector to conduct research

towards a specific solution that

benefits the parties involved.

“Take information security as an

example,” he says.

“Universities are doing a lot of work

on information security. We know

there are many private sector

companies doing the same. But they

are not talking to each other. “We

believe we can define centres where

all parties can work together and

identify the challenges the country

faces, and can create information

security products for the internet,

computer networks and software in

general.

“Publicly funded research institutions

could then be sure they have a

research agenda linked to private

sector needs.”

He also cites the addition of value to

titanium.

“South Africa has an abundance of

raw material for titanium and we

know that there are a number of

South African and international

aerospace companies seeking titanium

products.

“Three science councils, the Nuclear

Energy Corporation of SA, the CSIR

and Mintek, are working together

and trying to form partnerships with

private sector companies on what can

be done to ensure we have capacity to

process titanium and manufacture

aircraft components from it.”

Through the TIA and competence

centres, the Department is trying to

make funds available to identify, with

the private sector, initiatives more

widely related to the industrial policy

developed by the department of Trade

and Industry.

“The ‘economic cluster’ is doing

detailed work now to develop an

implementation plan,” Mjwara says.

The department hopes the private

sector will look at the detail of the

industrial policy to pinpoint areas

needing attention and work with the

Department of Trade and Industry to

take advantage of the instruments the

Department of Science and

Technology is putting in place.

The country, of course, also has a

National System of Innovation,

recognised as a major policy system

that has won the country

commendations for its vision.

“But it is not yet where we want it to

be,” says Dr Mjwara. “We have

elements of a national system but the

public side of innovation is only

slowly beginning to get organised.

Universities and science councils are

not yet optimising the system.

“We also need other government

departments to make technological

innovation part of their activities.

“We know that there is a lot of

innovation capacity in the private

sector but we need to link it to our

public research institutions. The

private sector and the public research

institutions need to start defining

joint research agendas.”

Another important challenge for the

system, he adds, is its lack of enough

researchers, technologists and

engineers. “But we are slowly putting

mechanisms in place to address this.”


INTERVIEW

4 | edge february 2008

It’s time for South Africa’s good ideas

to bring benefits to the economy.

Innovation makes sense only if it has

an impact on the economy, says Dr

Phil Mjwara, Director General of the

Department of Science and

Technology.

“The Department’s 10-year plan,

recently published, makes it clear that

we need to define outputs that make a

difference to the economy, whether

that means improving competitiveness

in the private sector or improving

quality of life generally,” he says.

The plan sets out outputs proposed by

the department, and for the first time

moves away from science and

technology exclusively to other

innovation-related outputs, like the

number of high-tech companies or

“knowledge workers” the system

yields, and the contribution science

and technology make to the

“technology balance of payment”.

“Our system must relate to these and

contribute to them. These are the

indicators of our contribution to the

economy,” he said.

‘Innovation must impacton the economy’-

Dr Phil Mjwara

“The Department of Science

& Technology is extremely

happy to be a partner of the

TT100.

“As many people may be aware,

we have begun the process of

introducing tax incentives for

Research and Development

(R&D).

“Companies who invest in

R&D can claim a tax rebate of

150% on the money invested.

“We have had all the necessary

negotiations with SARS, and

the arrangement is ready for

implementation this year.”

Dr Phil Mjwara.Dr Phil Mjwara, Director General of the Department

of Science & Technology.

The innovative South African

Experiment was launched by Deputy

President Phumzile Mlambo-Ngcuka

to a select group of South African

executives, government officials and

media last year.

Apart from addressing South Africa’s

current economic growth challenges,

the experiment will go a long way

towards:

• shrinking the gap between the

private and public sectors;

• stimulating a ‘can do’ mindset

among South Africans; and

• creating capacity at historically

disadvantaged tertiary educational

institutions.

The experiment will draw on lessons

learned from the “Belgian

Experiment” in 1968, which stimulat-

ed Belgium’s GDP growth by 3%.

It included interventions such as six-

month “job swaps” between senior

public sector officials and private sec-

tor executives. They were placed in

unfamiliar environments and trusted

to develop appropriate strategies to

address various challenges.

“The experiment, while founded on

the Belgian model, is designed to

address the unique challenges facing

this country,” says Marcus. “It aims

to enhance GDP growth by focusing

on outputs identified in the ASGISA

initiative.”

The programme will also engage

key academics from historically

disadvantaged universities.

“The role of these universities has

been underestimated,” says Marcus.

“They need to be elevated to become

dominant centres of excellence that

attract people from urban areas and

create powerful regional economies.”

The experiment will involve Dr Yuri

Boshyk, the leading international

authority on “business driven action

learning” and architect of the

“Global Learning Forum”.

Phase one will be directed at service.

“There is an inextricable link between

a nation’s competitive advantage

and its ability to embrace service

quality,” says Marcus.

“Service quality is paramount to the

success of our economy, but we’re

simply not delivering. A recent

Accenture report “Leadership in

Customer Service” released last June,

ranked South African government

service as the lowest in the world.

The launch of the experiment

followed a high-level “think tank”

last October, led by a group of

senior doctorate students from

Da Vinci, and attended by private

sector executives and senior

government officials.


INTERVIEWNEWS

The National Advisory Council on

Innovation (NACI), close to 10 years

old, has revealed a lot about what

works and what doesn’t, and has

offered advice on innovation in a

broader sense.

Mjwara says the department is

evaluating and assessing whether its

mechanisms are right for it.

“Should we perhaps let the NACI

report to a different structure in

government, because it could advise

equally effectively on issues about

schooling systems, trade or business

enterprise and similar disciplines

outside science and technology?

The term of the current NACI has

been extended to the end of next year,

and the department intends to distil

the recommendations of the

Organisation for Economic

Co-operation and Development’s

review, one of which was that the

NACI could report through different

structures.

“Unfortunately, these things cannot

be done in one swoop. We have to

make a case to cabinet. That is what

we will do this year.”

6 | edge february 2008

SA Experiment promises to transform

service delivery

‘Innovation must impact onthe economy’From page 5

Five ‘grand challenges’ constitute the Department of Science & Technology’s

major objectives for 2008.

• Finding an appropriate energy mix for South Africa.

• Improved understanding of climate changes and its impacts.

• Use of space technology to improve climate crop management and

environmental health.

• Use of biodiversity to balance conservation with commercial gain.

• Human and social dynamics: how society needs to adapt to

globalisation and the new world order.The South African Experiment,

a strategic intervention expected to

have major positive implications for

the country, is soon to involve the

country’s public and private sectors

in an initiative to boost sustainable

economic growth.

“South Africa’s aim of delivering

memorable customer service to the

world in 2010 calls for an urgent,

robust plan to transform the

country’s service culture,” says

Professor Roy Marcus, chairman of

The Da Vinci Institute for

Technology Management, which is

sponsoring the experiment.

“The experiment is the ideal

platform to engage the private and

public sectors in this objective.”

Sechaba Brewery Holdings Limited (Registration number co 5271)Corner Kubu Road and Nelson Mandela Drive, Broadhurst Industrial Estate, Gaborone, Botswana.

PO Box 631 Gaborone, Botswana.Telephone: 395 3619 • Telefax: 390 1447 • Email:[email protected] ANNUAL REPORT 2003

SECHABA BREWERY HOLDINGS LIMITED

taking new routes to improvement

De

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an

Ba

rbe

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ign

s

31 MARCH 2003 31 MARCH 2002

Enterprise value (Pm) 954 1,033

Enterprise value per share (P) 7.17 7.77

Share price (P) 7.8 8.45

Market capitalization (Pm) 1,038 1,124

Price earnings ratio 8.3 10.5

BSE average P/E ratio 9.3 13.1

Dividend yield 14.9 11.6

BSE average dividend yield (%) 7.91 5.0

*Figures provided by the Botswana Stock Exchange

1


profile of sechaba

contents

Financial highlights 1

Mission, values & strategy 3

Chairman's statement 5

Operating review:

Kgalagadi Breweries (Pty) Ltd 9

Botswana Breweries (Pty) Ltd 13

Corporate governance 15

Corporate Social Investment 17

Directors' report 18

Auditors’ report 21

Income statement 22

Balance sheet 23

Statement of changes in equity 24

Cash flow statement 25

Accounting policies 26

Notes to the financial statements 28

Appendix A: Consolidated Financial Statements

Income statements 32

Balance sheets 33

Statements of changes in equity 34

Group cash flow statements 35

Accounting policies 36

Notes to the Groupfinancial statements 40

Group cash value added statement 50

Shareholders' information 51

31 MARCH 2003 31 MARCH 2002

Sales (Pm) 774.6 731.1

Operating profit (Pm) 255.6 227.5

Effective tax rate (%) 16.8 12.5

Earnings per share (thebe) 90.5 87.5

Headline earnings per share (thebe) 96.3 84.9

Normal dividends per share (thebe) 91.0 81.0

Special dividend per share (thebe) 29.0 0

Sechaba Brewery Holdings Limited is aninvestment holding company with interests in two operating companies: BotswanaBreweries (Pty) Ltd and Kgalagadi Breweries(Pty) Ltd. It holds 60% of the shares of these two companies. A subsidiary ofSABMiller plc, holds the balance.

SABMiller also has management control of both operating entities in a partnership,dating back to 1977, that successfully combines the management, technical andbrand-building expertise of the world's second largest brewer with a number oflocal and international investors.

Employing 1 040 people, the two companiesare represented throughout the country.They have four traditional beer breweries, a clear beer brewery, a carbonated softdrinks production plant and six sales anddistribution depots.

The mission, values and strategies of thebroader SABMiller Group, tailored to theneeds of the Botswana market, are firmlyentrenched in each company.


financial highlights (consolidated)

stock exchange performance*

• Turnover grew by 5.9% over prior year.

• Operating profit up by 12.4% from P227.5m to P255.6m.

• Comparable earnings per share increased by 3.4% to 90.5 thebe.

• Headline earnings on a comparable basis up 13.3%.

• Total dividend for the year amounts to 120 thebe per share.

• Final dividend proposed is 63 thebe per share.


3

VALUES

• We adopt a results-driven approach to doing business.

• We are committed to continuous improvement.

• Our people are our greatest asset.

• We are proud of our country and committed to its success.

• We respect the communities and societies in

which we operate.

STRATEGY

Our primary focus is to create long-term shareholder

wealth by:

• maximising the profitable volume growth of our core

traditional beer, clear beer and carbonated soft drink

beverage market segments;

• using our well-developed and sophisticated technical

and distribution infrastructure to compete profitably

in other complementary beverage categories;

• focusing on our core competence of operational

excellence, to implement the continual improvement

programmes that have been applied successfully by

SABMiller's beer and soft drinks operations, so that we

improve productivity, efficiency, cost control and

operating margins;

• investing in our broad range of powerful brands by

using the entire marketing mix to retain our relevance

to consumers and our market place dominance;

• developing our people's capabilities through training

and development, so that they can thrive in an open,

transparent and empowering work environment;

• playing an active role in the broader community as a

responsible, caring corporate citizen.


mission, values & strategy

Sechaba

Kgalagadi Breweries

Botswana Breweries

MISSION

To be Botswana's

leading beverage

company by any

measure, and,

in so doing, create

sustainable and

substantial wealth

for all our

stakeholders,

including the

societies in which

we operate.

initiativesinitiatives

Many initiatives instigated both

internally and externally in line

with the on-going commitment

to seek improvements through

change, achieved a welcome

measure of success in protecting

volumes and improving efficiencies.

Sechaba Brewery Holdings Limited performed

commendably during a year in which extremely

volatile economic conditions presented numerous

challenges for both its operating companies.

chairman’s statement

Despite a downward trend in the ConsumerPrice Index over the past five years,Botswana's inflation has been severelyaffected by the introduction of Value AddedTax in July 2002. Pressure on consumerspending was further compounded byvolatile international oil prices, rising foodprices and exchange rate weaknesses.

After exceptional growth

in the first three months

of the year, Kgalagadi

Breweries’ sales volumes

of clear beer for the year

ended virtually flat, whilst

carbonated soft drinks

increased by 3% for the

year. The 7% decline in

Botswana Breweries’

Chibuku sales resulted

in overall volumes

decreasing by 3.4%.

Fulfilling its commitment to

changing for the future, the company

improved its headline earnings by

13,4% and the dividends declared

for the year amounted to 120 thebe

per share, (which includes a special

dividend of 29 thebe) an increase of

39 thebe. Operating profit showed

commendable growth of 12.4% despite

the adverse conditions and our strategy

to increase wholesale pricing only by an

average of 5.6%. This performance was

driven largely by improved efficiencies,

re-structuring of the companies’

operations and the strategic positioning

of their brand portfolio.

As the economy felt VAT's ripple effect,

inflation increased from 7% to more than

12%, placing further pressure on consumer

spending through excessive retail pricing,

and elevating beer into a new price bracket

beyond the reach of many lower-income

earners in the market.

The government's announcement of a freezing

of public sector salaries placed additional

strain on consumer spending, leading

ultimately to negative sales growth in the

final quarter.

Significant expansion of the retail sector in

both Gaborone and Francistown, exposing

consumers to a wide range of high-value

imported goods widely offered on credit,

caused further shrinkage of the disposable

income available for the group's products.

Sales volumes were further affected by the

traditional peak period over Easter falling

outside the year under review.

Over several decades, sound financial

management has enabled Botswana to

enjoy high economic growth rates,

distinguishing it from many other African

countries. However, diamond production

and the consequent exports that supported

government revenue, and the accumulation

of foreign exchange reserves, reached a

plateau during the year. The country also

faced a growing humanitarian crisis as its

population became increasingly threatened

by the high incidence of HIV/AIDS.

These factors, and slow progress on economic

diversification away from diamonds, pose

a growing threat to the country's future

macro and socio-economic well-being.

Additional aggravations to the economy

were the debilitating effects of the worst


5

The success of various operational

changes was reflected in the

group’s performance, in the

acclamation of Kgalagadi Breweries

as SABMiller International's best

brewery in Africa, in its consistency

as leader in beer taste profiles,

and by the industry award won

by the Beverages Division for its

quality and sales achievements.


acclamationacclamation

7


monetary and fiscal policies. Despite thenegative external environment and structural deficiencies in the domesticeconomy, growth is expected to recover in2003 and 2004, supported by gradual global economic recovery and higherexpected levels of government expenditure.

I am happy to report,

that Sechaba Brewery

Holdings Limited is

well positioned for the

challenges of the future.

All the structures for

sustainable prosperity

are in place and

commitments to capital

investment are limited.

However, trading conditions are expected

to remain difficult and KBL and BBL will

need to act conscientiously and

astutely towards the increasing challenges

of anti-alcohol lobbying and calls for

restrictions on our products.

From a sales perspective, these companies

will enjoy the beneficial effects of an

Easter period during the year ahead. They

will be further boosted by an increase in

government spending prior to elections in

2004, which will re-energise the economy,

especially in the latter part of the year.

Negotiations between KBL and the

Commissioner of Taxes over the treatment

of taxes and penalties beyond the 1996 tax

year are still continuing and the company’s

provision for this remains in place.

Finally, I express grateful thanks to

management and the Board of Directors

for their dedication to the sustainable

growth of the business.

E.W. Komanyane

drought the country has experienced for

40 years, and an outbreak of foot and mouth

disease, initially in September and then

again in December, which impacted seriously

on the country's meat industry, the country's

second largest GDP contributor.

It was against this background, and the

challenges posed to Kgalagadi Breweries’

(KBL) and Botswana Breweries’ (BBL)

profitability, that a number of projects were

initiated, both internally and externally,

in line with these companies’ on-going

commitment to seek improvements through

change:

• Greater functionalization within the

group, creating specialist technical, sales

and distribution disciplines, enabled them

to achieve meaningful synergies, market

focus and efficiencies.

• Expansion of warehousing improved

distribution, while restructuring of the

credit department and a new credit

policy brought a measure of stability to

the market.

• Promotional efforts for beer and

carbonated soft drinks by a dedicated

special events team, improved soft

drinks sales and reduced the negative

impacts on beer sales.

• An investment in new technologybrought beneficial improvement to information management throughout the organization.

The success of these measures was reflectednot only in group performance but in theindustry award won by Kgalagadi Beverages,a division of KBL, for its quality and salesachievements, and in the acclamation ofKBL as SABMiller Africa and Asia's bestbrewery.

The group changed the name of The KMSTrust to The Breweries KMS Trust and re-committed it to a sharper focus onnational road safety and the continuingfight against HIV/AIDS in Botswana.

Extending its project 'Tshelang', whichmeans "life", KBL and BBL again allocatedfunds to communicate and improve the understanding of AIDS among employees,via workshops and poster campaigns, trainingof peer educators and counsellors. In addition, the company introduced a programme to supply free anti-retroviraldrugs and condoms to all employees.Finance was provided for new clinics, theappointment of a dedicated doctor and theestablishment of a Life-ThreateningDiseases Committee to direct its efforts tocombat all manner of medical risk toemployees.

KBL and BBL also

participated actively in the

proposed amendment of

the current Trade and

Liquor Act, which seeks to

introduce a separate

Liquor Act during 2003.

They submitted comments on the Liquor Bill

and supported public awareness through

road safety campaigns and seminars. They

also funded a visit by an internationally

renowned expert from Australia on alcohol

legislation.

prospects

The short-to-medium-term outlook for theBotswana economy depends largely onglobal demand for diamonds, which remainsuncertain in the light of external globalcrises.

Global economic conditions are expected tocontinue the recovery that began in 2002,but the pace of it remains uncertain, andthe levelling of diamond production bodesill for short-term economic growth.

While government efforts to diversify theeconomic base have yet to pay off and theeconomy remains susceptible to externalshocks, the government is pursuing sound



6


9

SECHABA BREWERY HOLDINGS LIMITED SECHABA BREWERY HOLDINGS LIMITED

operating review - kgalagadi breweries (pty) ltd

Operating profit improved by 13.7%, with

margins improving significantly as a

result of productivity improvements, the

restructuring in the organization and

the positioning of Hansa Pilsener as a

premium brand.

Total sales volumes were

0.8% positive, despite

negative economic

influences, with clear

beer improving its share

of the total liquor market.

Improvements to the packaging of KBL's

flagship brand, St Louis Lager, reinforced its

standing as the country's leading beer

brand. Its continued growth, and an

increasing consumer preference for

cans, contributed to gains in margins

in our brand/pack portfolios and won

additional market share for St Louis.

The development of a new marketing

campaign for television, introduced in

prospect of a terminated signal from

South Africa and threatening lack

of above-the-line exposure,

reinforced the ability of local

brands to combat sales of

imported beers. Some 62% of

KBL sales are now local products.

The Alcoholic Fruit Beverages

(AFB) portfolio was disappointing,

with Redd's declining and

Fusion making little impact

despite significant marketing

and promotional support.

Coca-Cola maintained its

position as market leader in the

Carbonated Soft Drinks (CSD)

category. Sparletta enjoyed phenomenal

growth on the back of support from Iron

Brew. Fanta grew as a category with

the launch and exceptional consumer

acceptance of Fanta Pineapple.

The performance of BIBO was disappointing,

with minimal growth on last year's

volumes and signs of consumer resistance

to the current packaging. The company

is looking at opportunities to use the

production capacity to exploit niche

markets and launch new variants.

Sales of beer in the

750ml returnable bottle

showed pleasing growth,

as did sales of CSDs in

PET packaging, but a

significant shortage of

glass during the year led

to a decline in sales of

returnable bottles.

Major advantages were derived during

the year from the rationalization of the

business into a more efficient and market

responsive organization to optimise

potential synergies between the Kgalagadi

Brewery and Coca-Cola plant.

The functionalization brought benefits in

management effectiveness, sales and

marketing specialization, staff development,

productivity enhancements, planning/

forecasting and customer service ethics.

Re-definition of management structures,

and the creation of dedicated technical,

sales and marketing, and operational

divisions to manage the total KBL operation,

achieved two critical improvements:

for the year ended 31 March 2003

Kgalagadi Breweries (Pty) Ltd, (KBL), the clear

beer and soft drink manufacturer and distributor,

performed well, despite the impact of economic

pressure and the exclusion of Easter trading.

Improved sales forecasting

and more effective routing and

scheduling of delivery trucks,

achieved productivity gains,

while warehouse space

utilization was maximized.

productivityproductivity

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