strategy and performance overview - distell

Analyst presentation – February 2016

1

Strategy and Performance OverviewAnalyst PresentationFebruary 2016 Richard Rushton – Managing Director


2

Key Performance Highlights


3

SALIENT FEATURES AND KEY PERFORMANCE METRICS YTD DECEMBER 2015“We continue to drive strong top line growth, whilst navigating economic headwinds.”

Strong top line revenue growth achieved despite: Challenging and volatile global macro-economic

conditions

Slow-down in domestic economic growth

Changing competitive landscape in local market

Our solid performance is attributed to: Relentless focus on executing our key strategic initiatives

Improved service levels aided by good stock availability

Favourable weather conditions in South Africa

RSA trade buy-in ahead of earlier price increase

Foreign currency windfalls due to weaker Rand

397.7m Litres sold 7.7%

R12.2bn Revenue reported 11.2%

R1.9bn EBITDA 14.8%

R1.7bn Operating profit 16.5%

R1.2bn Headline earnings 17.8%

21% Growth in total assets

10.5% Return on shareholder equity


4

VOLUMES AND REVENUE CONTRIBUTION PER REGION (YTD DEC 2015)“Top line revenue growth was achieved across all 3 Business Units.”

South Africa

Africa (incl BLNS)

International

Strong double digit growth Benefits realised from key

initiatives

Robust growth in most countries

Angolan slow-down affected overall performance

Improvement in margins

Headwinds in key markets Short term value accelerating Favourable mix and currency

movements

South AfrYTD 6 MTH Growth

Jul - Dec 2015% Contribution

Vol 13.3% 79.4%Rev 14.6% 74.6%

Africa (IncYTD 6 MTH Growth

Jul - Dec 2015 % ContributionVol -7.4% 15.7%Rev 2.4% 13.7%

InternatioYTD 6 MTH Growth

Jul - Dec 2015 % ContributionVol -16.5% 4.8%Rev 1.2% 11.1%


5

Macro Overview


6

GLOBAL ECONOMIC OUTLOOK BY REGION“The global outlook reflects volatile and diverging growth paths.”

Volatility levels globally are elevated with emerging markets (EM) most affected Africa region remains dynamic - higher growth prospects Short term SA outlook is poor – medium term recovery likely to lag rest of Africa Certain key Distell markets most affected

3.5%

1.5%

5.0%4.6%

2.2%

3.4%

2.1%

4.3% 4.0%

0.7%

3.9%

2.1%

5.1% 4.9%

2.4%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

World Advanced Economies Emerging Market andDeveloping Economies

Sub-Saharan Africa South Africa

Regional Economic Growth Performance(% Real GDP Growth)

2011-15 2016 2017-20

Source: IMF, Jan’16


7

SOUTH AFRICA CONSUMPTION TRENDS“Distell delivered a stellar performance in SA notwithstanding economic headwinds.”

Distell’s double digit growth performance is well above food and beverage retail sales in SA Our diverse portfolio offers consumers accessible price points for various consumption

occasions

-10%

-5%

0%

5%

10%

-20

-10

0

10

20

2009 Q1 2010 Q2 2011 Q3 2012 Q4 2014 Q1 2015 Q2

South Africa: Consumer Confidence & Retail Sales

CCI (lhs)Total Retail Sales (y-o-y %)Food & Beverages Retail Sales (y-o-y %)

3.5%

2.8%

0.4%0.8%

1.6%

2.2%

0.3%0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

2005-10 2011-15 2016 2017

SA Real Consumption Trends% Real Growth Household Expenditure

Total Non-durable

Sources: BER, StatsSA


8

SOUTH AFRICA: DISTELL VALUE SHARE OF SA LIQUOR“Distell SA’s good performance also supported by market share gains.”

Continued market share gains bears testimony to our improved outlet reach and RTM capability in SA

Gains realised in all core categories supported by core brand innovation

Latest source: Nielsen, SALBA, SAWIS, Internal BW Sales & Competitor Financial StatementsLatest source: Nielsen, SALBA, SAWIS, Internal BW Sales & Competitor Financial Statements

12.1%

25.8%

37.0%

12.4%

25.3%

40.5%

13.1%

26.9%

41.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

DISTELL RTD'S DISTELL SPIRITS DISTELL WINE

Distell: % Value share by SA liquor category

MAT JUNE 2014 MAT JUNE 2015 MAT DEC 2015

18.5%

19.1%

20.0%

18%

18%

19%

19%

20%

20%

21%

MAT JUNE 2014 MAT JUNE 2015 MAT DEC 2015

Distell: % Value share of Total SA liquor


9

SUB-SAHARAN AFRICA: GROWTH PERFORMANCE 2005-2020“Our Africa business has been impacted by volatility in oil dependent economies.”

Southern and East Africa - generally less impacted by oil price declines; growth prospects remain favourable

Rebasing of economic growth in West Africa (notably Angola) - negatively impacted on our performance

Our local expansion programme for Africa and tailored portfolio offering aims to address many of these challenges

19%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Nigeria Angola Ghana Zambia Kenya Mozambique

SSA: Economic Growth Performance

2005-08 2010-15 2016 2017-20

Market rebasing

Source: IMF, 2016


10

SUB-SAHARAN AFRICA: GROWTH PERFORMANCE vs LEADING COMPETITORS“Notwithstanding economic headwinds, Distell outperformed alcohol competitors in Africa.”

9

3

11

0 5 10 15

Leading beerplayer

Leading spiritsplayer

Distell

Africa: Revenue Growth% (Incl SA & BLNS) YTD Dec15

(Organic Constant Currency, Non-Duty Paid)

Source: Latest reported financial results for Africa region incl. SA, YTD Dec 2015

Distell has outpaced leading competitors’ revenue growth in Africa (incl. SA) due to: Strong and diverse brand

portfolio (product/category mix) Continued improvements in RTM Growth in core market


11

DISTELL’S PERFORMANCE: KEY GLOBAL ALCOHOL CATEGORIES“Strong Ciders, Whisky and Cognac performances.”

Latest source: SAWIS, IWSR, Distell,

-0.2

-3.1

Distell Sales Global ScotchWhisky Sales

Scotch Whisky (Bottled & Bulk)

2015: % Global Volume Growth

Distell’s Scotch Whisky portfolio held its own against recent

category declines

9.08.5

Distell Sales Global CognacSales

Cognac (Bottled)


Distell’s growth in Cognac is on par with category global sales

growth

Cider

8.7

4.1

Distell Cider Global Cider

Distell’s cider growth in 2015 exceeded global category

growth



12

DISTELL’S PERFORMANCE: KEY GLOBAL ALCOHOL CATEGORIES“Mixed performance in key export wines and cream liqueur categories.”

Latest source: SAWIS, IWSR, Distell,

SA Packaged Wine Exports

23.6

23.3

Distell

Distell % Volume Share

2014 2015

Distell’s share of packaged SA wine exports has declined

marginally, impacted by the product recall in the UK/Europe

-10.0

-0.9

Amarula Global CreamLiqueur


Cream Liqueur

Amarula’s performance negatively impacted by

economic volatility in Brazil


13

Recap our Strategy


14

DISTELL’S STRATEGIC JOURNEY – “Our 1, Plus 1, Plus 1 Ambition!”“Our journey towards 2020, and a bold new Distell, started in 2014…”

LEADSELECTED

EMERGING MARKETS

OWN THE LAST MILE

SCALE UPEXCELLENCE

CARE AND CONTRIBUTESHAPE THE

FUTURE

CRAFT DISTINCTIVE & COMPELLING

BRANDS

Strategic Aspiration:Double revenue & profit by 2020!

Key initiatives: Grow and win in RSA

Expand into Africa and at least one major international market

Leverage core brand portfolio

Build scale positions in core markets and segments


15

Lead in selected markets


16

SOUTH AFRICAN PERFORMANCE HIGHLIGHTS“Strong growth achieved in South Africa despite tough market conditions.”

Volume Revenue Revenue % DistellSouth Africa 13.3% 14.6% 74.6%

Volume growth in all core categories

Strong double-digit revenue growth ahead of the market

Revenue growth translated into improved gross income

Ciders- solid growth – core Hunter’s brand Double digit wine growth - 4th Street volumes

more than doubled! Whisky and gin grew volumes, while brandy

sustained its slow turnaround Strategic initiatives on track with benefits and

efficiencies realised Favorable weather and much improved supply

position over key festive period Trade buy-in due to earlier price increases, pulling

some volumes forward


17

AFRICA (INCL BLNS) PERFORMANCE HIGHLIGHTS“Mixed results impacted by challenging macro-economic conditions.”

Good performance in many priority markets despite market conditions

BLNS maintaining good growth

Nigeria, Central and SE Africa delivered very strong results Exceptional performance in Mozambique Good results in Zambia - excise reduction on locally produced beer

from 1 January 2016 could impact imports Angola’s performance reflecting strong headwinds in market

We continue to selectively invest in Angola Kenya – slow start but expected recovery during 2nd half

Increased support to KWAL coupled with RTM improvements

Volume Revenue Revenue % DistellAfrica (Incl BLNS) ‐7.4% 2.4% 13.7%

Revenue % AfricaBLNS 6.1% 11.8% 59.1%Angola ‐54.8% ‐50.5% 10.3%Mozambique 47.2% 50.5% 7.4%Zambia 13.8% 25.5% 6.8%Nigeria 55.8% 91.7% 3.5%Kenya ‐21.7% 5.8% 3.3%


18

INTERNATIONAL PERFORMANCE HIGHLIGHTS“Strong December offsetting earlier headwinds in international markets.”

Volume Revenue Revenue % DistellInternational ‐16.5% 1.2% 11.1%

Revenue % InternationalEurope ‐12.1% 3.4% 49.6%Asia pacific ‐26.3% 4.4% 24.5%North America ‐4.7% 14.6% 15.9%Travel Retail ‐28.6% ‐13.7% 5.9%Latin America ‐38.2% ‐22.4% 4.1%

Strong December with positive news flow expected

Favourable product mix and currency movements

Wine recall impacted on earlier months of the year

Moderate growth in Europe, Asia Pacific and North America UK integration under way – strong BSD EBITDA performance Slowdown in China Positive share gains and momentum in Taiwan USA: Partnership with Terlato wines will aid expansion of our footprint

Latin America and Travel retail performance reflecting difficult conditions in which they trade

New leaders in key regions settling in


19

INTERNATIONAL PERFORMANCE HIGHLIGHTS continued…“Stand out performances by several brands in key international markets.”

NordicsDrostdy-Hof:Value growth +18.2%

BSDPerforming well:Value growth +6.5%

GermanyNederburg:Value growth +9.1%

TaiwanScottish Leader:Value growth +18.4%

CanadaTwo Oceans: Value growth +1.3%

EuropeAmarula:Value growth +27.2%


20

Craft distinctive and compelling brand portfolios


21

POWER AND LUXURY BRANDS“We are building strong and differentiated ‘Power’ and ‘Luxury’ brand portfolios.”

“Globally, consumers are more open to trading up, or down; depending on the occasion and their circumstances and needs

Distell has structured its brand portfolio to address these overarching trends”

Our new ‘luxury’ mind- set and journey has recently commenced….

* Balance of contribution relates to non-branded business

6 MONTH VALUE

GROWTH

12 MONTH VALUE

GROWTHContribution to

Distell

Power Brands 12.0% 12.2% 87.1%

Luxury Brands 13.7% 15.4% 10.7%


22

Ciders & RTD’s Brandy & Other Spirits

Wines

Value:+13.4%* Value +15.4%* Value +8.2%*

Strong growth in SA Growing African

footprint Sustain and leverage

regional/global scale

SA brandy volume stabilised, with value growth

Build momentum behind SA whisky and Scottish Leader

Pricing architecture defined

Achieved momentum through innovation

PB Contribution: 44% PB Contribution: 27% PB Contribution: 23%

Liqueurs

Value +2.5%*

Growth in core international markets

Core brand renovation underway

PB Contribution: 6%

*12 and 6 months Value growth to December 2015

6 month

12 month Value:+14.8%* Value +14.5%* Value +7.8%* Value +1.8%*

POWER BRAND PERFORMANCE: CATEGORY“Power Brands are building momentum and scale.”


23

SA cider volume growth accelerated off a much higher base….

…year on year growth has increased due to pricing and packaging architecture and innovation

0

100

200

300

400

500

FY0 FY3 FY6 FY9 FY12 FY15

Cider volume indexed (FY0=100)

0

50

100

150

200

250

Jul Aug Sep Oct Nov Dec

FY 2015 FY 2016

9.1%

POWER BRANDS : CIDERS AND RTD’S“Ciders drive RTD performance, and brand momentum is achieved from innovation.”

Cider Volume indexed (FY0=100)

Cider Volume growth YOY

* Sources: Internal BW sales volumes. YTD Dec 2015


24

0

5

10

15

20

25

30

35

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

FY 2014 FY 2015 FY 2016

145%

Driven by a single minded proposition

158%

POWER BRANDS: WINE“In SA 4th Street continues its growth success story in mainstream markets.”

* Sources: Internal BW sales volumes

4th Street volume growth YOY


25

7.7%

20.5%

4.1%7.3%

19.2%

6.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Brandy Gin Whisky6 month growth % 12 month growth %

POWER BRANDS: BRANDY AND OTHER SPIRITS“Brandy & other spirits have shown strong value growth, and encouragingly, the brandy portfolio grew volumes.”

* Sources: Internal BW value

Power brands: Brandy & other spirits (Value) growth YOY

3.4%

1.5%

0.0%

1.0%

2.0%

3.0%

4.0%

Brandy

6 month growth % 12 month growth %

Power brands: BRANDY (Volume) growth YOY


26

Greater focus on top performing brands

Simpler and single minded brand propositions developed

Focus on affordability and relevance

Crafting a winning Africa portfolio

Focussed global wine growth strategy to be implemented

KEY INITIATIVES: POWER BRANDS“‘We are providing step change programmes for Power Brands.”


27

Premium WineWhisky, Cognac & Brandy

Value: +26%*Burn Stewart: +12%*

Value: +0%*

• Sustain momentum through selected market expansion

• Build ‘luxury’ adoption model

• Seed and incubate in South Africa

• Wine growth strategy defined

• Challenges encountered due to voluntary trade recall

• Nederburg and Drostdy-Hof performing well in continental Europe

Luxury Contribution: 58% Luxury Contribution: 42%

* Branded business only

LUXURY BRANDS“‘Luxury’ brands are focused on premiumisation and building our international footprint with an emphasis on value growth.”


28

Clear differentiation between brands within categories

Simpler and single minded brand propositions Brand building – consumer and outlet focus

Delivering stronger core creative ideas “LUXURY” marketing capability building In-market execution capability build for

South Africa Roll-out to Africa and International

TO

Designed to build on and enhance the ‘Curiosity’ platform. It brings a positive tension between the complexity of the old & the vitality of the new”

KEY INITIATIVES: LUXURY BRANDS“‘We are building a strong marketing capability in luxury.”

“The Nederburg example…”


29

WORLDWIDE DISTILLER OF THE YEAR FOR 2015: AWARD


30

Own the last mile


31

Effective Trade Terms

Clear Pack and Channel pricing & adherence

Wider Reach & influence

Focused Portfolio

Cold Space Penetration

Constant Activity & Execution

Revenue Management

Capability fully integrated into regional BAU processes

and decision support

Sales Force Effectiveness

Sales Excellence office created & second phase of

roll-out initiated

STRATEGIC INITIATIVES – OWN THE LAST MILE“Synergy between Revenue Management & Sales Excellence capabilities in Southern Africa.”

+20%Additional

outlet growth

targeted

+30%Cold spaceimplementation

+15%Price

adherence


32

International AfricaIncreasing RTM capability & influence through

key partnerships…Shareholding in KWAL provides Distell with the ability to influence KWAL’s strategy and on-the-ground execution.

STRATEGIC INITIATIVES – OWN THE LAST MILE“‘…While select African & International partnerships will change our ability to influence the last mile..”


33

Scale up excellence


34

Production

Portfolio optimisation

Asset optimisation

Network optimisation

Portfolio optimisation & category growth recommendations being implemented

Fully integrated (end-to-end) cider production scheduled to come on stream by February 2016-Springs

Production network pilot positioned and detailed business case being developed

SA distribution network recommendations implemented in October

STRATEGIC INITIATIVES – SCALE UP EXCELLENCE“…aims to enhance our margins”

Asset base optimisation evaluations completed and opportunity assessments underway


35

Shaping the future


36

Global financial/ERP integration

People & Talent management system solution implemented

Improved operational & decision support ICT systems

End-to-End global Supply Chain MIS

Centralised procurement

Sales excellence success from Southern Africa being rolled out in key African and International focus markets

Revenue management practices replicated globally

Luxury brand marketing and RTM capability being developed

Systems Competencies

Embed and manage organization change effectively

Organisational Design

STRATEGIC INITIATIVES – SHAPING THE FUTURE“Organizational capabilities to support create & meet demand teams”


37

Care and contribute


38

SUSTAINABILITY SCORECARD“Driving sustainability and implementing an integrated BBBEE strategy.”

Strategic goal Base year FY 15 Targets FY 16 Actual HY 16 Target FY 20

Non-Financial Metrics

Reducing

Water usage 3.82 l/l 4% 14% 15%

Electricity usage 0.125 kWh/l 8% 18% 20%

On-site energy usage (from fossil fuel) 1.18 MJ/l 8% 29% 20%

Greenhouse Gas Emissions 0.247 CO2e/l 10% 17% 25%

Increasing

Drive transformation (improve BBBEE score)

Level 4(Old Codes)

Level 4 (New Codes)

Level 8 (New Codes)

Level 4 (New Codes)

Support local economies: Local sourcing across categories & geographies Be a leader in diversity and transformation: Integrated BBBEE strategy Nurture nature: Operate in a sustainable and ethical manner

Strategic focus areas


39

Looking forward


40

OUR FUTURE PATH OF SUCCESS – “Our 1, Plus 1, Plus 1 Ambition!”“Distell is well placed despite worsening short term domestic and global headwinds.”

Domestic: Strong position in core domestic market

Diversified brand portfolio with good pipeline of initiatives

Strong brands in higher growth segments

Internationally: Despite headwinds, we continue to integrate our European

structure, to drive core brand growth and improve efficiencies

We are prioritising our spend in Africa according to the new risks

We have a strong balance sheet to allow us to realize our 2020

aspirations beyond RSA


41

“In any given moment, we have two options: to step forward into growth, …or to step back into safety.”

Abraham Maslow

Board presentation – February 2016

This presentation contains ‘forward-looking’ statements, including specifically all statements that express marketforecasts; Distell’s commentary on macro and industry related market trends; and projections related to Distell’sbusiness strategy.

All forward-looking statements contained in this presentation involve risk and uncertainty since they aredependent on assumptions of circumstances that will occur in the future. There are multiple variables whichcould cause actual results to differ from the forward-looking statements which are not within Distell’smanagement control. Such variables include, but are not limited to, political, macro and socio-economicchanges; legal and regulatory changes; litigation developments; technological changes; environmental risksand changes in consumer trends, among others. As such, Distell is not liable for any financial or other lossesincurred arising from investment decisions made on the basis of forward-looking statements contained in thispresentation.

All forward-looking statements made by Distell apply only as of the date they are made. There is no obligationon Distell in the future to provide updates on forward-looking statements contained in this presentation to reflectany changes in Distell’s projections with regard thereto or any changes in events or underlying assumptions onwhich any such statement is based.

Disclaimer

1

Financial Results – 31 December 2015

Financial Results31 December 2015Lucas Verwey – Financial Director

Analyst Presentation

2


Linking Strategy, Strategic Initiatives and Value Drivers

Lead selected emerging markets

1.Craft distinctive

& compelling brands

2.Own the last

mile

3.Scale up

excellence

4.Shape the future

5.

Care &contribute

6.

Revenue

1

Gross Profit

2

Operating Cost

3

Strategy for global cider

and wine growth

Financial Value Drivers

Selective premium through a

“luxury” play

Sales force effectiveness

Revenue Management

ProcurementProduction

Network Optimization

Cider Production Technology

Continued SA growth

Africa focus

Enterprise Development Projects for

supply

Enabling

Strategic

Initiatives

Strategic Themes

Distribution Network

Optimisation

•South Africa•Africa•One other

Innovation

Technology

People

3


Index

Salient featuresSalient features

Delivering valueDelivering value

MarginsMargins

Earnings and profit performanceEarnings and profit performance

Investment in assetsInvestment in assets

Cash flow and fundingCash flow and funding

A

B

C

D

E

F

Revenue growthRevenue growth

G

4


Salient features of performance

Salient features12 Summary

5


Normalised ReportedSales volumes up 7.7% 7.7%

Gross revenue up 11.2% 11.2%

EBITDA 14.2% 14.8%

Operating profit 15.8% 16.5%

Headline earnings 16.8% 17.8%

Headline earnings per share 16.8% 17.7%

Growth in total assets (since June 2015) 21.0%

Main difference between normalised and reported performance is R8,9m in 2014/15 due to additional IBC payment.

Salient features: upward trend to December 2015

6


Summary – YTD December 2015

Good overall gross revenue growth on history (11.2%):o Solid peak season performance with strong growth.

o Good in-market execution, favorable stock levels and focus on consistent service delivery.

o In South Africa, we delivered an excellent performance in December:

• Volume growth accelerating in all of our core categories.

• Strong double-digit gross revenue growth translated into pleasing growth in gross income.

• Trade buy-in due to price increases in January rather than in February, pulling volumes forward which impacts the YTD comparison on history.

o In Africa, many priority markets performed well, although overall performance was impacted by the challenging macro-economic conditions that Angola is facing.

o Internationally, we enjoyed a strong December and the news flow going into next year is more positive in many of our core markets, although China experienced a slowdown.

7


Summary – YTD December 2015 (continue)

There are many risks facing the domestic and global economy, uncertain and difficult ‘macros’ in some of our markets.

Gross margin improvement on history shows good progress. Positive impact reduced to a certain degree by:

o Mix effects as consumers trade down in SA

o Excise duty increases driven by mix

Operating margin performance – up on history due to focus on expenditure control.

Net operating assets grew 24,7% (15.7% excluding FX) compared to gross revenue growth of 11,2%:

o Investment in long term bulk inventory in maturation

o Investment in primary production and innovation

8


Summary – YTD December 2015 (continue)

The Rand has also been a key factor in our export competitiveness and also in the financial performance of the business in the short term, although a ‘weak Rand’ has more structural challenges for us as a country and as a company in the longer term.

Strong cash flow and sufficient headroom to fund expansion in the medium term.

9


Delivering value

Managing the underlying drivers of shareholder value1

10


Rm Rm Trend Trend2015/16 Report Normal2014/15 9.5% 9.0% 1,160 984 117.9 116.8

9.5% 9.0% 1,160 993

ReportedNormalised 5.4% 5.5% 12,223 10,997 111.2

5.4% 5.6%

0.57 0.62 21,556 17,851 120.8

10.5% 10.7%10.5% 10.8%

21,556 17,851 120.8

1.94 1.94

11,096 9,200 120.6

Equity and liabilities

Total equity

Return on equity (ROE)

Gross revenue

Net profit after Tax (NPAT)

Total assets

NPAT%

Return on assets (ROA)

Asset turn

Gearing

Managing the underlying drivers of shareholder value

11


Revenue growth

Contribution per region and category

Exchange rates

Drivers of revenue growth

1

2

3

12


Rm Rm Rm Rm Trend2015/16 Norm2014/15 12,223 10,997 111.2

4,418 3,794 Normalised 36.1% 34.5% 7,805 7,202 108.4

Rm Rm

1,160 993 82 81 100.5Finance cost, equity income

2,713 2,325 116.7

3,176 2,720

36.1% 34.5% 464 395 117.5

Gross revenue

Cost of goods sold

Net profit after tax (NPAT)

Expenses

Gross margin DP

Total expenses and tax

Taxation

Gross profit

Other items


13


Contribution per region

14


Contribution per category

15


Drivers of gross revenue growth: Consumers trading down

16


Currency 2015/16 2014/15Change on history

GBP - 20.80 17.86 16.4%EUR - 14.97 14.14 5.9%USD - 13.56 10.98 23.6%CAD - 10.27 9.88 3.9%

YTD December 2015 average rates

Average exchange rate weakening 12.8% on history increasing short term exchange benefits

17


Drivers of margin1

2 Drivers of gross profit

Margins

18


Rm Rm Rm Rm Trend2015/16 Norm2014/15 12,223 10,997 111.2

4,418 3,794 Normalised 36.1% 34.5% 7,805 7,202 108.4

Rm Rm

1,160 993 82 81 100.5Finance cost, equity income

2,713 2,325 116.7

3,176 2,720

36.1% 34.5% 464 395 117.5

Expenses

Total expenses and tax

Gross margin DP Taxation

Gross revenue

Gross profitCost of goods sold

Net profit after tax (NPAT) Other items


19


Drivers of margin: improvement through efficiencies

20


Drivers of gross profit: encouraging performance increase

21


Earnings and profit performance

Operating profit

Headline earnings

12

22

Financial Results – 31 December 2015Increase in operating profit; positively impacted by growth in gross revenue higher than opex growth

23


Headline earnings up on previous year

24


Investment in assets

Total assets vs. liabilities12

3

Net operating assets

Inventory

25


Rm Rm Rm Rm Trend2015/162014/15 13,342 10,973 121.6

Reported21,556 17,851 4,852 4,131 117.5

3,361 2,747 122.4

6,191 4,835 128.0

10,459 8,651

4,268 3,816 111.9

Total current assets

Total assets Fixed assets

Other Non-current assets

Current liabilities

Total liabilities

Non-current liabilities


26

Financial Results – 31 December 2015Net operating assets up 24.7% compared to gross revenue growth of 11.2%, thereby lowering net asset turn

27

Financial Results – 31 December 2015Increase in inventory higher than gross revenue growth which slows asset turn

28


Increase in inventory (excluding excise duty) due to higher investment levels and forex

29


Cash flow and funding

Cash flow and funding

Net borrowing position, borrowing capacity and headroom to fund expansion

1

2

30


Rm Rm Rm Rm Trend2015/162014/15

Reported 6,191 4,835 128.0

10,459 8,651 Rm Rm

4,268 3,816 111.921,556 17,851

11,096 9,200 Total equity

Current liabilities

Total liabilities

Non-current liabilitiesEquity and liabilities


31


Cash flow and funding: positive cash generation

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Financial Results – 31 December 2015Net borrowing position, borrowing capacity and headroom to fund expansion


This presentation contains ‘forward-looking’ statements, including specifically all statements that express marketforecasts; Distell’s commentary on macro and industry related market trends; and projections related to Distell’sbusiness strategy.All forward-looking statements contained in this presentation involve risk and uncertainty since they are dependenton assumptions of circumstances that will occur in the future. There are multiple variables which could cause actualresults to differ from the forward-looking statements which are not within Distell’s management control. Suchvariables include, but are not limited to, political, macro and socio-economic changes; legal and regulatorychanges; litigation developments; technological changes; environmental risks and changes in consumer trends,among others. As such, Distell is not liable for any financial or other losses incurred arising from investment decisionsmade on the basis of forward-looking statements contained in this presentation.As such, you are cautioned not to place undue reliance on the forward-looking statements contained herein, asthey apply only as at the date of this presentation.All forward-looking statements made by Distell apply only as of the date they are made. There is no obligation onDistell in the future to provide updates on forward-looking statements contained in this presentation to reflect anychanges in Distell’s projections with regard thereto or any changes in events or underlying assumptions on whichany such statement is based.

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