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Nampak Limited - Results Of The 45th Annual General Meeting And Business Update For The First Quarter

Release Date: 08/02/2013 13:40:00      Code(s): NPK     

Nampak Limited
(Incorporated in the Republic of South Africa)
Registration Number: 1968/008070/06
Share Code: NPK
ISIN: ZAE 000071676
(?Nampak?)


 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.

Nampak Glass
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.

Beverage Cans
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
sheet.

Sandton
8 February 2013
Sponsor:
UBS South Africa (Pty) Ltd

Date: 08/02/2013 01:40:00 Supplied by www.sharenet.co.za                     
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