zimplow fy 2012 results presentation.pdf

7/28/2019 Zimplow FY 2012 Results Presentation.pdf

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AGENDAStrategic and operational overview

Zondi Kumwenda

Chief Executive Office

Financial Overview

Francis RwakondaFinance Director

Future outlook

Zondi Kumwenda

2Analyst Briefing 7 March 2013


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IMPLOWHOLDINGS

Strategic and operational

overview

Zondi Kumwenda

Chief Executive Office

Analyst Briefing 7 March 2013 3


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OURMISSION,VISIONandVALUES



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OURBRANDPROFILE



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GROUPLEGALSTRUCTURE



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ZIMPLOWSTRATEGICSTRUCTURE


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Manufactureranddistributor

of

agricultural

implements

PRODUCTS

y Ploughs,cultivators,

planters,harrows,hoesandparts


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Manufacturer and distributor offasteners

PRODUCTS

AluminiumBlind

Riverts

Screws

MildSteelBoltsandNuts

MildSteelHexSets

MildSteelStudding

HighTensileBoltsandNuts

WasherProducts

Nails

and

Nail

Products


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y Distributorof

farming

equipment.y Tractors,

y Generatorsets,

y Combineharvesters,

y Monosem planters,

y Piccin implements,

y Falconimplements.


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y Earthmovingandminingequipmenty Trucks

y Compactors

y Draglines

y Forklifts

y WheelDozers

y

Wheel

Loadersy Scrappers


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y Cardealershipandservicing.

y Mazdavehicles,

y Peugeotvehicles

y Toyotavehicles,

y Mitsubishivehicles

y Forland vehicles


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Distributoroffarming

equipment.y CaseProducts

y CaseCombines

y Baldan

OPERATIONS


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OPERATIONSMEALIEBRAND


Production 3 185 217 Vs 2 380 054 in 2011

OPERATIONS


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OPERATIONSMEALIEBRANDCONTINUED

Volumeswereaffectedbythefollowing

yApoor2011/2012agriculturalseasoncharacterisedbypoorharvestandcottonpricewarsthatsawlocalsalesunitsdropping.

yLateanderraticrainsfor2012/13seasonsaffectedthenormalseasonalofftake,resultinginlowerlocalvolumes.

y

Low

disposable

income

and

the

tight

liquidity

in

the

market

alsocontinuedtoaffectlocalrevenues.

yAsaresultoftheabove,theMealie BrandDivison reliedheavilyonexportswhichtraditionallyhavethinmarginsbecauseofcompetitionfromtheEast.


OPERATIONS


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OPERATIONSCTBOLTS


5% down

OPERATIONS


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OPERATIONSCTBOLTScontinued

Volumeswereaffectedbythefollowing

yLowdisposableincome

yIndigenisationhasaffectedtheminingindustry


OPERATIONS


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OPERATIONSTASSBURG


OPERATIONS


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OPERATIONSAFRITRAC


PHL OPERATIONS


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PHLOPERATIONS

BARZEM FARMEC


Service turnover(hours) was 22 823hours against a budget of 14649hours

Parts turnover was $4 328 000against a budget of $2 288 000

Service turnover(hours) was 11749 hours against a budget of 8800 hours


Implements sales were $1 441 000against a budget of $1 395 000

PHL OPERATIONS


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PHLOPERATIONS

NORTHMEC PUZEYANDPAYNE


Service turnover(hours) was 895hours against a budget of 1 023hours

Parts turnover was $102 000 againsta budget of $110 000

Implements sales were $105 000

Service turnover(hours) was 26 273

hours against a budget of 21 515hours


Forecourt sales(Litres) were 1 705

275

FINANCIAL OVERVIEW


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FINANCIALOVERVIEW

FrancisRwakonda

FinanceDirector


ALIENT FEATURESGroup


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ALIENTFEATURESGroup

Dec12 35.6

Dec11 15.5

0

10

20

3040

USDmillion

Grouprevenue


ALIENT FEATURESCompany


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ALIENTFEATURES Company

Dec12 12.8

Dec11 14.7

11

12

13

14

15

USDmillion

Companyrevenue

31Dec 1.4

31Dec 11 3.3

0

1

2

3

4

USDMillion

Companyoperatingprofit



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INTERESTCOSTGroupinterestcostswere$1016879(lastyear$78493)


STATEMENT OF COMPREHENSIVE INCOME


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STATEMENTOFCOMPREHENSIVEINCOMEGROUP COMPANY

31Dec

2012 31

Dec

2011 31

Dec

2012 31

Dec

2011

Revenue 35610823 15503306 12807190 14654404

Operatingprofit 1779007 3464529 1379830 3345083

Restructuringexpenses (1941388) (1045644)

Fairvaluelossoninvestment

property

(90000)

Netfinance(costs)/income (736833) 170744 (192248) 161748

(Loss)/Profitbeforetax (989214) 3635273 (141938) 3506831

Incometax

expense (15

962) (904

991) (277

499) (864

006)

(Loss)/Profitaftertax (1005176) 2730282 (135561) 2642825

Non

controlling

interest (192

422) 52

954

Attributable(Loss)/profit (812754) 2677328 (135561) 2642825Analyst Briefing 7 March 2013 26

STATEMENT OF FINANCIAL POSITION


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ASSETS GROUP COMPANY

31Dec2012 31Dec2011 31Dec2012 31Dec2011

Property,plantandequipment 18997554 2863605 4593130 2857481

Othernoncurrentassets 2678544 10401920 700318

Current

assets 31

487

321 13

692

191 12

058

500 12

541

545TOTALASSETS 53163419 16745397 27092550 16099344

EQUITYANDLIABILITIES

Sharecapitalandreserves 24316977 13725199 24775610 13759761

NonControllinginterest 9522812 512633

Totalequity 33839789 14237832 24775610 13759761

Longterminterestbearing

liabilities

143025

Deferredtax 3389214 621484 1122931 621484

Currentliabilities 15791391 1886081 1194009 1718099

Totalliabilities 19323630 2507565 2316940 2339583

TOTALEQUITYANDLIABILITIES 53163419 16745397 27092550 16099344



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STATEMENTOFFINACIALPOSITION



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GROUPPERFORMANCESTATISTICS


FY 2 0 1 2 FY 2 0 1 1

I n t e r e s t c o v e r (t im e s ) (2 4 ) 4 4

Eq u i t y /T o t a l a s s e t s o .6 3 0 .8 5

Cu r r e n t r a t i o 2 :1 7 :1

Qu i c k r a t i o 0 .9 5 :1 4 :1

Re t u r n o n t o t a l a s s e t s (2% ) 2 2%

Re t u r n o n c a p i t a l em p l o y e d (3% ) 2 6%

N e t a s s e t s v a l u e p e r s h a r e 6 c e n t s 4 .2 c e n t s

STATEMENT OF CASHFLOWS


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STATEMENTOFCASHFLOWSGROUP COMPANY

31Dec12 31Dec11 31Dec2012 31Dec2011

Cash

(outflow)/inflow)

fromoperations (1

155

998) 2

589

147 (522

713) 2

271

341

Taxpaid (683335) (910078) (463420) (871236)

Netfinancecostspaid (736833) 170744 (192248) 161748

Netcash(out)inflowfromoperatingactivities (2576166) 1849813 (1178381) 1561853

Acquisitionofproperty,plantandequipment (351074) (510762) (137555) (508796)

Acquisitionofsubsidiary (9289198) 355919 (9737967)

Otherinvestingactivities 51003 38207 400 38207

Cashusedininvestingactivities (9589269) (116636) (9875122) (470589)

Proceedsfromissueofequityinstruments 11209254

Other

financing

activities 275

511

11

209

254

Dividendspaid (907950) (686851) (907950) (686851)

Netcashin/(out)flow fromfinancingactivities 10576815 (686851) 9954983 (686851)

(Decrease)/Increaseincashandcashequivalents (1588620) 1046326 (1098520) 404413

Cashand

cash

equivalents

at

the

beginning

of

the

year3

947

912 3

033

588 3

438

001 3

033

588

Cashandcashequivalentattheendoftheyear 2293182 3947912 2339481 3438001Analyst Briefing 7 March 2013 30

L ki h d


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Lookingahead

ZONDIKUMWENDA

CHIEFEXECUTIVEOFFICER



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Considerableopportunitiesintractorsandtractordrawnfarmingequipmentsegment,

particularlyin

the

domestic

market

Inlight

of

the

robust

growth

demonstrated

by

theminingsectorandthestrongoutlook,there

is

significant

potential

for

Zimplow to

consolidateitspositionwithinthissector.



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Overall,therefore,

this

investment

will

potentiallycomplementZimplows strategyto

bethe

dominant

player

in

the

provision

of

value

drivenengineeringsolutionsforallitsstakeholdersinSubSaharanAfrica



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l


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FUTUREPROSPECTSy The

country,

however,

has

been

experiencing

erratic

rainfallpatternsandattimesfullblowndrought.

y

Zimbabwe'ssovereign

risk

has

also

been

viewed

as

high

byinternationalinvestorsthuslimitingaccesstointernationalcapitalinflows.

y Thesefactors

present

significant

risk

for

the

group

goingforward.

y

The

group

will,

however,

be

better

placed

to

absorb

suchrisksshouldtheyariseowingtoabetterdiversifiedrevenuestream.


L


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SPECIFICSTEPS

1. Significantreduction

in

the

level

of

borrowings

andassociatedcostsbyquarter3.

2. Aimto

reduce

operating

costs

in

some

units

andimproveefficiences throughtheworkshops

and

factories.3. Improverevenuesinthetractordivision

throughassetbasedfinance.

4. CompletetheCTBolts/Tassburg marriagebyQuarter2.


L


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FUTUREPROSPECTS

HalfYear

Outlook

yExpectdiscontinuedoperationscostsinthefirst

half.yExpect asmalloperatingprofitorbreakevenin

thefirst

half

and

a

profitable

second

half,

with

morethan ofrestructuringcostsalreadyabsorbedin2012.


QUESTIONS???


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QUESTIONS???


zimplow fy 2012 results presentation.pdf

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