Press Corporation Ltd - Nedbank-ecobank African Investment Conference Rsa 2012

7/28/2019 Press Corporation Ltd - Nedbank-ecobank African Investment Conference Rsa 2012

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PRESS CORPORATION LIMITED(PCL)BACKGROUND, 5-YEAR ANALYSIS,

RECENT DEVELOPMENTS


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B

A

C

K

GR

O

U

N

D

Incorporated under Companies Act, 1984.

Listed on MSE and LSE thru GDRs in 1998.

A well diversified Group of investments comprising of five segments:

Financial Services National Bank of Malawi.

Telecommunications MTL & TNM.

Energy- Puma Energy , Ethanol and Presscane

Food & Beverages Maldeco Fisheries & Carlsberg Group

Consumer PTC and Macsteel All other reportable segment

Tobacco processing Limbe Leaf

Real Estates Press Properties Limited

Corporate office

Slide below shows our involvement in each unit


3/42

B

U

S

I

N

ES

S

M

I

X

NBM 52%

Ethanol 66%

PUMA Energy 50%

Macsteel 50%

Carlsberg Group

40%

Press Properties

100%

TNM 32%MTL 63%

Presscane 50%

Limbe Leaf 42%

PTC 100%

Maldeco Aqua

100%

Maldeco Fisheries

100%

% SHAREHOLDINGS IN EACH UNIT


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G

O

V

E

R

N

A

N

CE

I

S

S

U

E

S

Board comprises professionals of diverse profiles

Consists of 6 NonExecutives and 2 Executives

The Chairman is nonexecutive & the Board meets quarterly

Responsible for policy, strategic guidance and direction

Board Committees - 1) Audit & 2) Appointments and Remuneration

The Group has adopted strict policies in:

Personal equity trading avoid inside trading.

Corporate anti fraud (subscribes to Tip Offs Anonymous)

Non discriminatory HIV / AIDS policy

The Group embraces the following Corporate Governance codes:

Code of ethics

Business Code of Conduct Business Action Against Corruption

Malawi Code II

King III

The Group also abides by all local & foreign regulations

MSE, LSE, Companies Act, 1984 , Taxation etc

Below is the representation of the Shareholders structure;


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P

C

L

S

H

AR

E

H

O

L

D

E

R

S

Press Trust

45%

Old Mutual

12%

Deutsche Bank -

America

21%

Others-Public

22%

PCL SHAREHOLDERS


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B

U

S

I

N

E

S

S

A

N

A

L

Y

S

I

S

Group reflects an upward trend in all its key performance indicators.

With the foundation in place, this trend is likely to accelerate.

However, emerging macroeconomic conditions need to be monitored veryclosely.

-

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

Total assets Total equity Owners'

equity

Turnover Gross profit

Trend Analysis

FY2007 FY2008 FY2009 FY2010 FY2011


7/42

B

U

S

I

N

E

S

S

G

R

O

W

T

H

An overall growth of about 25% is recorded.

Equity & total assets grew by average of 25% and 21% respectively.

Whilst revenue grew by 28%, gross profit averaged 26%.

FY2007 FY2008 FY2009 FY2010 FY2011 AVRG

9%

54%11% 11% 12%

19%

19%

31% 17%

14%

11% 18%

30%36%

12%

30%

18%25%

18%50%

9%

25%13%

23% Turnover

Gross profit

Total assets

Total equity

GROWTH ANALYSYS 2007 -2011


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P

R

O

F

I

T

A

BI

L

I

T

Y

Generally, good upswing in Gross profit.

Decline in PBT & PAT in 2011 due to one off write offs in NBM and increase

borrowing costs

Good divesture decisions between 2003 and 2006 start paying off

-

5 000

10 000

15 000

20 000

25 000

30 000

FY2007 FY2008 FY2009 FY2010 FY2011

PROFITABILITY TRENDS ANALYSIS

Gross profit Profit before tax Profit for the year Owners' profit


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P

E

R

F

O

R

M

A

NC

E

R

E

V

I

E

W

ROE at 15.5% was well above average inflation of 7.2%.

Net profit margin outperformed average yield of TB at 8.2%.

4.2% 5.3% 4.6% 5.5% 3.9% 4.7%

15.2% 16.3% 14.8% 18.2% 12.9% 15.5%

11.8% 13.0% 11.9% 13.0% 9.1% 11.8%

FY2007 FY2008 FY2009 FY2010 FY2011 Average

INVESTMENT RETURN ANALYSIS

Net Profit margin

Return on equity

Return on assets


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P

C

L

A

T

M

A

R

K

E

T

highest earnings and lowest div yields amongst MSE listed companies.

This implies huge retention rate for reinvestments and future growth.

2nd lowest P/E (x) implies cheapest in MK terms per expected earning unit.

Both P/BV & P/E (x) point in the same direction of a cheap stock in Mkt.

AT MK 188.00 PCL shares are still undervalued vis a vis its NAV, P/BV, &

expected Sustainable future growth.

Counter Price % Yield (Div) % Yield (E) P/E (x) P/BV (x) Market cap (mln) No of shares

1 PCL 188.00 2.52 27.54 3.63 0.7 22,247.33 120,255,820

2 NBM 56.00 8.04 13.61 7.35 1.67 26,147.88 466,926,438

3 TNM 1.75 3.78 7.31 13.67 2.26 249,486.33 10,040,450,000

4 NICO 15.00 2.67 18.87 5.3 1.13 13,038.00 1,043,041,096

5 ILLOVO 150.00 4.20 6 16.66 6.23 107,016.66 713,444,3916 STANDARD 120.00 11.82 14.45 6.92 1.98 24,533.42 213,334,084

7 MPICO 2.40 6.40 88.7 1.13 0.36 2,872.56 1,149,023,730

8 SUNBIRD 7.00 4.57 18.97 5.27 0.36 1,831.08 261,582,580

9 FMB 6.50 4.57 12.32 8.12 1.9 16,353.75 2,336,250,000

10 NBS 12.50 6.12 15.76 6.34 1.64 10,696.36 727,643,339

11 NITL 17.50 5.43 6.73 14.85 0.89 2,362.50 135,000,000

12 REAL 1.20 - 8.66 11.55 1.67 300.00 250,000,00013 OML 550.00 2.03 12.36 8.09 1.9 2,532,994.73 4,871,143,719

MALAWI STOCK EXCHANEG COUNTERS


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2011 Financial highlights

Key ratios

Revenue up by 13%

Profit before tax down by 16%

Earnings per share down by 35%

Return on assets down to 6% from 8% in 2010

Return on Equity 20% down from 26% Net Asset value up by 12 %


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Overview of Group results

(20 000)

-

20 000

40 000

60 000

80 000

100 000

120 000

Turnover Gross

Profit

O/HEADS Finance

Charges

Other

income

Associate

s

PAT

Actual 110 357 41 619 33 009 (2 449) 4 657 873 7 710

Prior year 98 589 35 635 27 103 904 3 993 247 9 429

% increase 12% 17% 22% -371% 17% 254% -18%


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Overviewcontinued..

Results affected by MK1.7b Fair value loss on newly constructed

National Bank of Malawi Business Centre and

Office Complex Challenging macro-economic environment

characterized by severe foreign currency

shortages and the attendant fuel supplyshortages

Increase borrowing costs following a 10%

devaluation of the Kwacha


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Segmental performance

(5 000 000)

-

5 000 000

10 000 000

15 000 000

20 000 000

25 000 000

30 000 000

35 000 000

40 000 000

Financial

services

Telecom

munications

The Foods &

Beveragesegment

Energy

Segment

Consumer

GoodsSegment

Investment in

Associates

The all other

Segment

Turnover 11 715 206 19 363 444 20 918 160 38 405 386 18 945 990 - 1 009 307

G Profit 10 759 397 12 837 658 8 968 440 5 501 396 2 902 344 - 649 272

O/Heads 8 691 732 12 015 014 5 854 083 3 068 453 2 305 895 - 1 073 542

PAT 3 557 686 188 669 1 482 230 1 934 569 457 354 873 499 (784 364)

% of Group PAT 46% 2% 19% 25% 6% 11% -10%


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Segmental performance continued..

Group results driven by the financial services

segment followed by the energy, and food and

beverage segments

Overall performance dampened by foreign

currency shortages and the attendant erratic

fuel supply


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G

R

OU

P

RE

V

E

N

U

E

Financial Services,

11 280 , 17%

Telecommunication

, 18 279 , 27%Energy , 19 287 ,

29%

Foods & Beverage

, 8 410 , 12%

Consumer Goods ,

9 403 , 14% All other segments

, 498 , 1%

SEGMENTAL REVENUE


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G

R

O

UP

E

AR

N

I

N

G

S

Financial Services,

3 558 , 58%

Telecommunicatio

n , 192 , 3%

Energy , 1 519 ,

25%

Foods & Beverage

, 554 , 9%

Consumer

Goods , 233 ,

4%

All other segments

, 73 , 1%

SEGMENTAL EARNINGS - 2011


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G

R

OU

P

AS

S

E

T

S

Financial Services80 394

57%

Consumer Goods

2 436

1%

Telecommunication36 451

26%

Energy8 141

6%

Foods & Beverage

8 734

6%

All other segments

5 308

4%

GROUP ASSETS - Dec 2011


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The slides below provide insights on the

individual business units


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NATIONAL BANK OF MALAWI

PressCorp

52%

Old

MutualMw

25%

Public22% Staff2%

Shareholding structure National Bank has the biggest customer

Base with a 45% market share

The core services are:-

Personal & Business Banking

Corporate & Institutional Banking

Leasing & Asset Finance

Customer & Transactional

Treasury

International Trade Finance

Asset / Fund Management

Equity Trading Brokerage

Transfer Secretariat & Custody

Operations

Net

interest

60%

Forex

7%

Fees/commn

28%

Leases

5%

Income spread - Dec 2011

NBM PERFORMANCE TREND ANALYSIS


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A declining trend in the last two years due to Economic turmoil that engulfed the country.

With recovery in sight, the trend reversal is likely from 2012.

FY

F

Y

F

Y

9 765

11 945

13 577

15 696

3154

3 802

3 429

3 558

5598

6 777

6 841

8 160

9278

11 249

11 280

13 721

NBM PERFORMANCE TREND ANALYSIS

Equity Profit after tax Net interest income Net income

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

30% 34% 34% 30% 26%

33%32% 32%

25%23%

5%8% 5%

4%4%

Returns Analysis

ROA

ROE

NPM


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Assets

Deposits

Advances

-

20 000

40 000

60 000

80 000

100 000

NBM SBM FMB NBS

Business activities as at 31 Dec 2011

NBM SBM FMB NBS

8 160.00 4 980.00 4 269.00 4 128.00

13 721.0010 521.00

6 706.00 6 756.00

3 558.00 3 546.00 2 015.00 1 686.00

Profitability amongst peers - Dec 2011

Net interest income Net income Profit after tax


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Cost to income ratio amongst peers

NBMSBM

FMBNBS

51%53%

54%67%

56% 58%

54% 61%

61% 43%55% 60%

FY2011

FY2010

FY2009


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Telecom Networks Limited- Mobile lines

MTL

44%

PCL11%

Livingstone

Holdings

13%

Old

Mutual

10%

Public &minotiries

22%

TNM Shareholders

PCL has an additional 22% ownership of

TNM through MTL which essentially makes

PCL the majority shareholder with 33%

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

Market share 29% 33% 33% 37% 42%

Prepaid subscribers 323,900 617,662 816,920 1,129,870 1,533,000

Post paid suncribers 10,078 9,949 11,158 10,130 6,000

ARPU Mk 1,445 1,032 1,017 841 761

ARPU US$ 10.30 7.37 6.90 7.20 4.65

TNM has seen a consistent

growth in its market share for

the past 3 years. TNM has

both corporate and individual

customers offering the both

Post paid and prepaid

packages with the following

services:

Voice

Local

International

Broadband and Data

Internet

SMS , MMSValue added services

Call conference

Caller tunes

Call waiting

Call holding


25/42

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

65%

34%23% 19% 17%

46%

33%

19%16% 17%

25%

23%

15%11% 11%

58%

58%

63%

59% 61%

Key Ratios

Gross profit Margin

Net profit Margin %

Return on Equity %

Return on Capital

Revenue Mk' million Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

Postpaid Revenue 764 797 779 742 656

Prepaid revenue 4,213 5,157 6,449 7,996 10,305

International Roaming 119 109 178 132 163

Interconnect revenue 675 639 797 989 1,132

Telekom Networks Limited

-

2 000

4 000

6 000

8 000

10 000

12 000

Yr

2007

Yr

2008

Yr

2009

Yr

2010

Yr

2011

Revenue 5 771 6 702 8 205 10 873 12 814

EBITDA 2 171 2 184 2 920 3 647 4 698

Profit After Tax 1 453 1 530 1 215 1 175 1 358

MK'million

Financial highlights

M l i T l i ti Ltd Fi d li


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PCL owns through THL 63% of MTL

Major customers

Internet service providers,

Telecommunication companies Banks

Corporate

MTLs products and services

1. BusinessPLUS

BusinessNET BusinessCONNECT

CarrierNET

BusinessMAIL

WebHOST

2. HomeLINK MiNET

LibertyNET

Malawi Telecommunications Ltd- Fixed lines

ARPU in dollars Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

ARPU Post-paid US$ 23 15 12 11 9

ARPU Pre-paid US$ 39 41 44 54 64

ARPU overall US$ 27 20 17 16 14

-

1 000

2 000

3 0004 000

5 000

6 000

7 000

8 000

9 000

10 000

Yr

2007

Yr

2008

Yr

2009

Yr

2010

Yr

2011

ARPU Pre-paid MK 3 192 2 114 1 711 1 622 1 425

ARPU Postpaid MK 5 371 5 715 6 414 8 150 10 549ARPU overall MK 3 663 2 787 2 412 2 413 2 317

A

RPU'MK

Average Revenue Per User


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Page27

LEGEND

Regional capital

Main backbone node

Minor Backbone NodeOptical fibre backbone

Planned optical fibre links

Microwave backbone route

Microwave repeater

Salima

Zomba

Balaka

Mangochi

Dedza

Mzimba

BLANTYREMwanza

MZUZU

LILONGWE

Kasungu

Karonga

Dwangwa

Songwe

Future route to

Zambia

Route to Mozambiquevia Milange

Route to

Mozambique

via Zobue

Route to Tanzania

In 2009 MTL launched the

first ever Optical fibre

backbone in Malawi of

approximately 1500km

across Malawi


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(2 000)

3 000

8 000

13 000

18 000

23 000

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

Total Assets 22 012 20 077 20 394 22 583 22 855

Total Equity 11 340 11 051 10 838 11 694 10 835

Revenue 5 854 5 642 5 362 6 367 6 725

EBIT 741 (1 266) (702) (205) (1 205)

Profit After Tax 826 (279) (212) (3) (1 129)

MK'million

Trend analysis

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Yr

2007

Yr

2008

Yr

2009

yr

2010

yr

2011

Gross profit Margin 58% 41% 41% 39% 28%

Net profit Margin % 14% -5% -4% 0% -17%

Return on Equity % 10% -7% -4% -1% -13%

ROIC 7.6% -5.1% -2.9% -0.9% -9.3%

Percentagegrowth

Key Ratios

MTLs Revenue

MTLs revenue picked up

from 2010 and 2011 with

the biggest growth inLibertyPHONE

Yr 2007 Yr 2008 Yr 2009 yr 2010 yr 2011

Post paid revenue 47.6% 38% 40% 38% 36%

Prepaid revenue22.1% 24% 26% 26% 28%

Internet revenue 0.0% 1% 2% 4% 10%

IP Data Revenue 8.6% 9% 9% 11% 10%

CPE and CDMA Revenue 2.0% 3% 2% 3% 3%

Interconnection revenue 19.6% 25% 21% 19% 13%

Eth l B i


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Ethanol Business

PCL

66%Illovo

Dwangwa

8%

Indetrust

26%

Ethanol Company

Press

corporation

Limited

50.1%

Cane Products

Limited

49.9%

Presscane Limited

The Ethanol companies are situated in Dwangwa and Nchalo

Ethanol salesYr 2007

'000 ltrs

Yr 2008

'000 ltrs

Yr 2009

'000 ltrs

Yr 2010

'000 ltrs

Yr 2011

'000 ltrs

Fuel Ethanol 5,919 5,740 6,632 7,332 13,197

Portable Alcohol 3,229 4,583 4,664 5,087 7,251Rectified Alcohol 4,901 9,694 5,089 3,850 1,185

Total sales 14,049 20,017 16,385 16,269 21,633

Total export 37% 49.6% 48% 29% 21%

Plant Capacity per yr 27,800 27,800 27,800 31,800 31,800

Plant capacity under utilized due to limited supply of raw material

d l i


30/42

Increase in earnings in 2011

was a result of an increase in

petrol/ethanol blending ratio

from 10% to 20%.

Major local customers

Puma Malawi

Carlsberg- MDL

Total Oil Malawi

AGA Trading

Petroda

EngenEnergem

Dulux paint

Major export customers

Chevron

Varibo LDA Mozambique

Farsha General Suppliers

Uganda

Tatti and Sons Tanzania

.

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

5 500

Revenue Profit before

tax

Total Assets Equity

Yr 2007 1 357 219 2 547 779

Yr 2008 2 101 886 3 277 1 699

Yr 2009 2 041 680 3 488 1 839

Yr 2010 2 528 932 4 202 2 427

Yr 2011 4 157 1 726 5 170 3 300

64% growth

85%

M

kmillion

Trend Analysis

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

16% 39% 20% 25% 26%

68%61% 62% 64% 69%

26%

71% 38% 44% 60%

13%41% 31% 28% 42%

Key ratios

Return on capital %

Return on Equity %

Gross profit Margin %

Net profit margin %


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PUMA

Registered a growth a profit in

2011 despite the acute fuel

scarcity

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

39% 31% 42% 37% 19%

17% 16% 21% 22% 14%

46% 42% 61% 49% 26%

4% 3%4% 4%

2%

10% 8% 9% 9% 8%

Ratio Analysis

Gross profit

Margin %

Net profit

Margin %

Return on

capital %

Return on

Assets %

Return on

Equity %

PUMA

ENERGY

50%

PCL

50%

Shareholding structure

-

5 000

10 000

15 000

20 000

25 000

30 000

35 000

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

Revenue 18 839 26 939 25 978 31 604 34 240

Profit befire tax 983 1 094 1 328 1 986 1 172

Total Assets 5 644 7 023 6 422 9 211 8 358

Total Equity 1 892 2 271 2 270 3 727 4 256

Trend Analysis


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Puma

Energy

46%

Total

29%

Engen

8%

Petroda17%

Market share

33%

56%

9%

1% 1%

2011 sales split

Petrol

Diesel

Aviation

Paraffin

Lubricants

Puma Energy has 156 retail outlets country wide

Regained its market share from 30% to 46% due to revamping of

some service stations

Sole supplier of aviation fuel in Malawi

Supplier of major customers in Malawi in the mining, construction

and engineering sectors


33/42

The Foods company

Maldeco Fisheries- Trawl Fishing

2007 2008 2009 2010 2011

3735

3523 30492686

2210

Productionintones

Fish production-Fisheries division

Maldeco Aquaculture

2007 2008 2009 2010 2011

225

13741589

2084

1427

Tones

Feedmill production in tones

Located in the southern part

of Lake Malawi

Has 5 fishing vessels

The biggest supplier of fish in

Malawi Declining production due to

changing weather patterns and

reducing fish population in the

lake

Has a total capacity of 9,984

tones,

Big growth potential currently

production under 30%

Produces the whole range ofanimal feed

Sole producer of fish feed in

Malawi


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2007 2008 2009 2010 2011

159

338

624531 501

Tones

Aqua Fish Production

Aqua fish farming has got the hatchery

with 44 Breeding ponds 1200 squaremeter that produce fingerlings

53 cages on lake Malawi of 1200 cubic

meters, capacity 40 tons/yr per cage

21 Growing out ponds of 1200 square

meters

An Integrated Aquaculture Agriculture

project to have a full farm with fish andlivestock is in progress.

200 1 hectare ponds currently under

constructed

This will increase production by 2000

tons per year at significantly lower

production costs

0%

10%

20%

30%

40%

50%

60%

70%

Gross profit

Margin

Net profit

Margin

Return on

Assets

Return on

Equity

Return on

capital

Maldeco Fisheries- Ratio analysis

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

(800)

(600)

(400)

(200)

-

200

400

600

800

Yr

2007

Yr

2008

Yr

2009

Yr

2010

Yr

2011

Revenue 50 121 304 253 259

Operating profit/(loss) (96) (88) (33) (76) (325)

Profit(loss) After Tax (124) (4) (116) (130) (408)

Shareholders equity 212 208 118 389 13

M

k'million

Aquacuture Trend Analysis


35/42

Carlsberg Malawi

Has a 3 plants situated in all the

three regions in Malawi.

Enjoys 97% market share for clearbeer and 91% for non alcoholic

beverages.

102

131127

133140

31 35 3034 35

7195

95 96103

1.4 1.6 1.9 2.7 1.9

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

Sales flow in million litres

Total sales

Beer

Minerals&Squash

Spirits &

wines

-

10 000

20 000

30 000

40 000

50 000

Yr

2007

Yr

2008

Yr

2009

Yr

2010

Yr

2011

Revenue 9 087 13 545 14 527 17 677 19 897

Profit before tax 505 1 158 1 488 2 599 2 805

Profit After Tax 343 1 071 1 026 1 788 1 857

Total Assets 9 105 13 129 14 084 17 106 18 796

Total Equity 4 389 6 599 7 525 9 296 9 296

Mk'million

Trend analysis

PCL

40%

Carlsber

g

Internati

onal

60%


Carlsberg Malawi conti


36/42

Carlsberg Malawi conti

Actual production and sales are at 63% of capacity with the biggest lagfrom Minerals water and squashes

Expansion of the brewery capacity in in progress

-

50

100

150

200

250

Total Minerals,

Quench, Squash

Beer Spirits & wines

140

103

35

1.9

223

180

40

4

Production capacity

2011 Sales

Minerals

58%Squash

13%

Quench

3%

Beer

25%Spirits

1%

2011 Product contribution

Macsteel


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Macsteel

300568 580 604 68131

248 105 166217

80

390186 255

3111 550

2 116

2 052

2 4252 076

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

Trends Analysis

Revenue

EBIT

Profit After Tax

Total Equity

0%

10%

20%

30%

40%

50%

Gross

profit

margin

Net profit

margin%

Return on

assets %

Return on

equity %

Return on

capital

Ratio AnalysisYr 2007

Yr 2008

Yr 2009

Yr 2010

Yr 2011

50%50%

Shareholding

Press

Corporation

Ltd

MacsteelService

Cencres SA

(PTY) Ltd

-

2 000

4 000

6 000

8 000

Yr

2006

Yr

2007

Yr

2008

Yr

2009

Yr

2010

Yr

2011

Sales volume in Tonnage

Supplies steel and roofing

materials.

25% market share in Malawi

PTC


38/42

PTC

-

2 000

4 000

6 000

8 00010 000

12 000

14 000

16 000

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

Trend Analysis

Revenue

Gross profit

Profit After Tax

Total Assets

Equity

Has 89 outlets countrywide

selling fast movingconsumable and other non

consumable goods.

Adversely affected by poor

macroeconomic-

environment

Yr 2007 Yr 2008 Yr 2009 Yr 2010 Yr 2011

10% 13% 9% 9% 7%

15% 18% 14% 14%11%

64% 106% 79% 63% 37%

4%4%

3% 3%2%

16% 16% 15% 15% 14% Gross profit Margin %

EBT Margin %

Return on Equity %

Return on Assets %

Return on capital %

A retail chain formally

jointly owned by PCL andMetro SA until recently

when PCL bought out

Metro SA.

Press Properties LimitedKey Ratios and statistics


39/42

Press Properties Limited

PPL , a second largest

property company in

Malawi is a wholly ownedsubsidiary of PCL

PPL portfolio comprises of

properties for rent and for

sale all over Malawi as

follows

1. Residential properties

2. Commercial properties

3. Retails Shops

4. Vacant plots for sale

(1 000)

-

1 000

2 000

3 000

4 000

5 000

6 000

Yr 2008 Yr 2009 Yr 2010 Yr 2011

Mk'million Revenue

Profit After Tax

Total Assets

Shareholders equity

-200.0%

-100.0%

0.0%

100.0%

200.0%

300.0%

Yr 2008 Yr 2009 Yr 2010 Yr 2011

Net profit Margin % -174% 175% 61% 58%

Gross profit Margin 49% 23% 29% 34%

Return on Assets % 0% 14% 12% 10%

Return on Equity % 1% 21% 21% 16%

Return in capital % 0.4% 16.7% 14.1% 11.7%

perc

entage

y

LIMBE LEAF TOBACCO COMPANY


40/42

LIMBE LEAF TOBACCO COMPANY

Continent

al Tobaco

Ltd

58%

PCL

42%


Year 2007

Year 2008

Year 2009

Year 2010

year 2011

20 513

19 586

30 823

32 080

31 262

2 929

2 958

4 703

5 630

6 328

20 572

13 648

13 941

13 385

14 128

1 095

278

1 367

1 569

3 821

Trend analysis

Revenue Gross Profit Total Assets Equity

50 000 000

60 000 000

70 000 000

80 000 000

90 000 000

Year

2006

Year

2007

Year

2008

Year

2009

Year

2010

year

2011

Year

2012

Production in KgsAlliance

one

30%

Limbe

Leaf

31%

Africa Leaf

19%

Pemium

Tama

13%

Malawi

Leaf

7%

Market share


41/42

D

IS

C

L

A

I

M

E

R

This presentation might contain forward looking statements. These

statements, which reflect Press Corporations historical assessment and

future expectations with regard to the development of the business, the

timings and the benefits, maybe influenced by a number of risks and

uncertainties that could cause actual results to differ materially from

expectations. Press Corporation Limited is under no obligation to

update or amend forward looking statements based on new

information, future events or for any other reason.


42/42

THE

END

THANK YOU

FOR

ATTENTION.

PCL MANAGEMENT

Documents

Press Corporation Ltd - Nedbank-ecobank African Investment Conference Rsa 2012