(Incorporated in the Republic of South Africa)
Registration Number: 1968/008070/06
Share Code: NPK
ISIN: ZAE 000071676
Results of the 45th Annual General Meeting and Business Update for the First Quarter
Nampak is pleased to announce that all the resolutions set out in the
Notice of the Annual General Meeting dated 14 December 2012 were passed
by the requisite number of shareholders at the 45th Annual General
Meeting held on Friday 8 February 2013. Special resolution number 4 for
the adoption of a new memorandum of incorporation will be submitted for
registration at the Companies and Intellectual Property Registration
Office in due course.
The first quarter of the 2013 financial year saw mixed consumer demand
for packaged products.
Hot weather in most parts of South Africa during the festive season
resulted in good demand for beverage packaging with beverage cans
continuing to show further growth over the same period last year.
Demand for other fast moving consumer goods was subdued and packaging
volumes were affected accordingly. Selling prices remained under pressure
in a very competitive environment.
Although there was moderate demand for toilet tissue and disposable
diapers, fierce price competition continued to depress trading margins.
In the rest of Africa, the Angolan beverage can plant continued to
perform well despite cooler weather affecting demand in the early part of
the quarter. Other operations in the rest of Africa and the plastic milk
bottle business in the United Kingdom performed to expectations.
Despite the challenging economic conditions in South Africa where Nampak
generate some 70% of its revenue Nampak remain confident of a further
improvement in performance in 2013.
The strategy has been to add a third furnace, provided it could secure
additional volumes from major clients. Nampak Glass has now signed long-
term supply contracts with key customers to guarantee these additional
glass volumes. As a result, the Board has approved capital expenditure
of approximately R1 billion for the installation of a third glass
furnace; commissioning of this furnace is expected by end 2013.
Nampak has also agreed long-term supply contracts with its large beverage
can customers. As a result, Nampak shall be purchasing a new high speed
aluminium line and converting existing lines from tinplate to aluminium.
The capital cost is approximately R600 million. The new can line is
expected to be commissioned in Springs in May 2013; the conversion of the
first of the existing lines will be completed by October 2013 and the
balance in 2014.
The two capital expenditure projects amount to just under R1.6 billion.
They will strengthen Nampak?s position in both the beverage can and glass
sectors in South Africa and show Nampak?s commitment to growing the
economy in South Africa. Funding of both projects will be from Nampak?s
own resources given Nampak?s low level of gearing and strong balance
8 February 2013
UBS South Africa (Pty) Ltd
Date: 08/02/2013 01:40:00 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department . The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.