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NPK - Nampak Limited - Weak Demand And Corrugated Business Drag Nampak Down Press Release - Nampak 2009 Final Results NAMPAK LIMITED Registration number 1968/008070/06 Incorporated in the Republic of South Africa ISIN: ZAE000071676 Share code: NPK ("Nampak" or "the Company") PRESS RELEASE - NAMPAK 2009 FINAL RESULTS WEAK DEMAND AND CORRUGATED BUSINESS DRAG NAMPAK DOWN Nampak today released its results for the year ended 30 September 2009. Revenue grew 6% to just under R20 billion mainly through the recovery of raw material price increases and improved trading from African operations. The recessionary conditions saw volumes falling by 6%. Trading income before abnormal items fell by 27% due to a substantial loss in the Corrugated business, lower volumes across the group, the liquidation of a large dairy customer in the UK, and losses at our Leeds carton operation and in a number of smaller businesses in South Africa. Headline earnings per share were 53% lower due to a loss on the fair value of financial instruments compared to a gain in the previous year as well as an increase in finance costs following the completion of several large capital projects. Total capital expenditure of R1.1 billion was spent largely on completing the Rosslyn paper mill and on the Angola beverage can factory. CEO Andrew Marshall said, "Despite the challenging economic conditions, trading income in Nampak`s core businesses was similar to last year: - Metals and Glass was slightly down; - Rigid Plastics was marginally up; - Tissue had a good year; - Cartons and Labels, Flexibles and Sacks were in line with the previous year; - Africa overall was in line with last year with good performances from Nigeria and Zambia in particular; - Europe was profitable but was well down on last year. The good performance from Nampak Healthcare and some of our cartons operations was offset by losses at Leeds as well as the Plastics reduction in profits due to the third-largest dairy in the UK, and one of our largest customers, going into liquidation. The strategic review completed after I joined the group in March concluded that 80% of our operations are profitable and have sustainable competitive advantages. We aim to grow these businesses. The remaining 20% are either loss- making or earning low returns and will be fixed, sold or closed. Capital expenditure in recent years has been very high, so we plan to reduce this to a level below our depreciation. In addition, we shall focus on the reduction of debt and costs across the group". "The state of the economies in which we operate is still a cause for concern and there has been no noticeable improvement in volumes since year end. The strength of the rand will continue to hamper an improvement in trading conditions in the South African businesses. Volatility of input costs may negatively impact trading income in the early part of the year. The expected turnarounds in the South African Corrugated and UK Leeds cartons business as well as the exiting of some of our underperforming businesses should enable the group to improve profitability for the year ahead" he concluded. Contact: Nampak Investor Relations Graham Hayward Tel: 011 719 6320 Cell: 082 800 7863 graham.hayward@za.nampak.com Sandton 23 November 2009 Sponsor: UBS (South Africa) (Pty) Limited Date: 23/11/2009 14:27:01 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.
