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AUDITED This presentation contains forward-looking statements, that is, GROUP RESULTS
statements related to future, not past, events. Like other businesses, AICO is subject to risks and uncertainties that could cause its actual results to differ materially from its projections or that could cause other forward-looking statements to prove incorrect. Reported results should not be considered as an indication of future performance.

for the year ended 31 MARCH 2013

28 June 2013

CORPORATE PROFILE
Seed Co is Africa's Cottco is the largest Olivine is a dominant,
Zimbabwe-based manufacturer & marketer of fast moving consumer goods (FMCG) largest proprietary seed cotton processor and breeding, production, marketer in subprocessing and Saharan Africa distribution group, operating in 15 countries

Please refer to our Group corporate websites for generic corporate information:-

www.aicoafrica.com
www.thecottoncompany.com www.seedcogroup.co.zw www.olivine.co.zw

AGENDA
OVERVIEW OPERATIONS REVIEW AND OUTLOOK

FINANCIAL REVIEW
DISCUSSION

OVERVIEW

The year under review has not been good Salient Features for the Group Group Revenue Zimbabwean operations performed below expectation Regional economies are stable but flags are coming up in Zambia where economic Group Operating Profit policy changes are adversely affecting business The Malawian economy is moving in the right direction The Eastern African economies are EBITDA promising with the stability that came after the successful holding of elections in Kenya The West African market is risky but full of potential
500

USD million

120.7

162.9

0 FY2009

FY2010

FY2011

225.9

FY2012

293.3

50

USD million

26.9

33.2

38.5

24.2

12.8

FY2009

FY2010

FY2011

FY2012

FY2013

50

USD million

43.8

47.6

33.4

32.7

22.4

FY2009

FY2010

FY2011

FY2012

263.9 FY2013 FY2013

OPERATIONS REVIEW

FMCG
Olivines performance is improving but still loss making.

Salient Features
Sales volume 12,027 tonnes 2% up on LY Sales Revenue USD24.4 million 27% higher than LY
30 25

Working Capital and liquidity constraints continue to hinder sustainable good performance
Improved soya bean supplies and toll crushing arrangements has resulted in improved margins The Olivine Board together with its shareholders continue to explore avenues of improving the Companys liquidity situation.

Revenue
24.4 18.5 19.2

USD million

20 15

14.9
10 5 0 2.6

FY2009

FY2010

FY2011

FY2012

FY2013

COTTON
Cottco recorded an intake of 150 000 tonnes supported by a high inputs scheme The price impasse experienced resulted in a delayed and compressed buying season resulting in side marketing.

Salient Features
Revenue
200.0 150.0 170.9 138.0 100.0 119.0 78.8 77.8

USD million

50.0
FY2009

FY2010

FY2011

FY2012

FY2013

Revenue

This scenario adversely affected our inputs recoveries

The high inputs underrecovery resulted in a huge debtors impairment.

USD138.0 million 20% down on LY

Profit before tax

USD7.6 million loss 225% below LY

COTTON (Continued)
Current season inputs scheme participants were thoroughly screened.

We have learnt our lessons from the 2012 season

Core debt still the biggest problem facing this business

SEED
Salient Features Lower volume uptake by the Sales Volumes Government and NGOs reduced sales figures in Zimbabwe. 67241 55063 47898 Slower debt payment by 42344 Government affected the business liquidity resulting in higher borrowings. Revenue The Malawi factory is under 117.8 Construction. 97.8 77.0 53.9 Research has delivered some exciting new varieties. Newly acquired breeding Profit before tax technology will lead to faster USD12.4 million product development cycle
80000 60000 40000 20000

Tonnes

59406

FY2009

FY2010

FY2011

FY2012

FY2013

150.0

USD million

100.0

110.6

50.0

FY2009

FY2010

FY2011

FY2012

FY2013

47% lower than LY

PEOPLE
The Group has retained its key staff. Staff development and training at all levels continue to be the Groups priority.

OUTLOOK
The Group continues to focus on cost containment and right sizing initiatives. We expect a resurgent performance in Seed Co Need to strike a balance on key operating and strategic variables in Cottco
Intake volumes, buying prices, lint prices and input scheme

recoveries

Olivine, performance dependant on funding At Group level, the key issue is to get the balance sheet in shape
Get funding into the SBUs Negotiations with potential partners in progress

FINANCIAL REVIEW

BASIS OF PREPARATION
Accounting policies Consistent with those used in prior year Group financial statements Presentation Financial statements are presented in US$, which is the Groups functional currency Compliance with IAS/IFRS Compliant Audit opinion Clean, with emphasis of matter in respect of going concern issues in Olivine

SALIENT FEATURES
Sales volume: 18% up
Group Revenue
500

USD million

Revenue: 10% down

225.9
120.7 162.9 293.3 263.9

0 FY2009 FY2010 FY2011 FY2012 FY2013

Gross profit: 5% up

Group Operating Profit

50

Operating profit: 37% down

PAT: 114% down

USD million

26.9

33.2

38.5 24.2

12.8
0 FY2009 FY2010 FY2011 FY2012 FY2013

Attributable earnings: 209% down

Borrowings: 9% lower
Good improvement in gross margins But interest bill is still a major concern
.diluting earnings and earnings per share

Group EBITDA
50

USD million

43.8 33.4 22.4 0 FY2009 FY2010 FY2011

47.6
32.7

FY2012

FY2013

Downgrading of profits in Cotton and Seed a major issue

SALES VOLUME
Group Sales Volume
Sales Volumes (000 tonnes)
250.0 200.0 FMCG 12,027 6%

FY2013 Sales Volume

Seed 59,406 28% Cotton 141,838 66%

213.7 193.6 189.9

2 %

150.0

180.5
5 % 18 %

136.7
100.0

42 %

50.0
-

FY2009

FY2010

FY2011

FY2012

FY2013

Key Issues

High intake volumes in Cotton 45% higher to 150,000 tonnes, Sales 42% higher to 141,838 tonnes Lower sales volumes in Seed - 12% down especially in Zimbabwe 35% down on LY Higher factory throughput in FMCG Though still constrained by working capital challenges

FMCG 11,798 7%

FY2012 Sales Volume

Spinning 1,659 1%

Seed 67,241 37%

Cotton 99,753 55%

REVENUE
Group Sales Revenue
Sales Revenue (USD million)
350

300
250 200 150 100 50 0

FMCG 24.4 9%

FY2013 Revenue

293.3 263.9 225.9

30 % 10 %
Seed 110.6 40% Cotton 138 51%

162.9
120.7
35 %
FY2009 FY2010

39 %

FY2011

FY2012

FY2013

Key Issues Sales volumes, were 18% higher than LY in Cotton

but Lint prices were 45% lower

FMCG 19.2 6%

FY2012 Revenue

Spinning 4.5 1%

Lower revenue in Seed

lower sales volumes in Zimbabwe

Seed 117.7 38%

Cotton 170.9 55%

FMCG sales volumes were 2% higher than LY

INCOME STATEMENT SUMMARY

Mar-13 Mar-12 % Change

Sales volumes
Revenue Operating profit Profit before tax Profit after tax EBITDA Attributable earnings EPS (US cents)

213.3
263.9 24.2 (0.5) (2.1) 32.7 (6.7) (1.26)

180.5
293.3 38.5 18.1 15.4 47.6 6.2 1.16

18
(10) (37) (103) (114) (31) (109) (109)

Firm prices during the year But lint prices 45% lower Working capital induced supply chain constraints Higher margins than LY Includes
Total impairment charges

of USD19.2m Interest charges of USD25.4 m

Loss for the year caused by:

low sales volumes in Seed lower lint prices in Cotton interest costs, impairment charges supply chain inefficiencies

Corporate overheads 29% higher to USD73.4 m (incl. impairments)

11% higher (excl.

impairments)

MARGINS
Group Cotton Gross margins (%) FY2013 FY2012 36 31 30 21 46 45 13 1 Seed FMCG
FMCG 3.1 3%

Gross profit by SBU 2013

Seed 50.9 54%

Cotton 40.8 43%

Key issues Cotton: cost reduction initiatives bearing fruit Seed: cost management and stable prices FMCG: higher efficiencies/better product mix
Group Cotton Gross profit FY2013 FY2012 Y-o-y growth (%) 94.4 89.9 5% 40.8 36.1 13% 50.9 53.0 3.1 0.3 Seed FMCG

Gross profit by SBU 2012

Cotton 36.1 41% FMCG 0.3 0%

Seed 53 59%

(4%) 1033%

Gross profit affected by lower volumes and revenue in Seed

sales

OVERHEADS
Group overheads were USD73.4 m (last year: USD56.7 m)
Group Overheads
80.0 70.0 USD millions 60.0 50.0 40.0 30.0 48.6 45.0 57.5 56.7 73.4

29% higher last year

Includes impairments of USD16.4 m (LY: USD5.5 m) 28% of revenue (LY: 19%) 80% up on last year 24% of revenue (LY: 11%) Affected by impairment charges 16% higher than last year 31% of revenue (LY: 25%) Costs running ahead of production and sales 7% higher than last year 17% of revenue (LY20%) still need further growth in revenue

20.0
10.0 FY2009 FY2010 FY2011 FY2012 FY2013

Cotton

Group Overheads - % of Revenue

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Seed
40% 28% 19% 25%

23%

FMCG
FY2009 FY2010 FY2011 FY2012 FY2013

IMPAIRMENT
Cotton Seed PPE Inventories Trade and other receivables Input scheme receivables Total Last Year 1.7 0.5 12.0 14.2 1.8 0.7 3.1 3.8 2.4 FMCG 1.1 0.1 1.2 0.6 Total 0.7 2.8 3.6 12.1 19.2 4.8

Impairment provisions charged to income statement amounted to USD19.2 m

USD16.4 charged directly to operating expenses/overheads

INTEREST COST
Group interest costs were USD25.4 m (last year: USD24.4 m)
Group Interest Costs
30.0 25.0 USD million 20.0 15.0 10.0 5.0 FY2009 FY2010 FY2011 FY2012 FY2013

4% higher than last year

25.4

24.4 17.2 10.8

10% of revenue (LY: 8%)

USD16.8 m (LY: USD18.5 m) 9% down on last year 12% of revenue (LY: 11%) High borrowings USD7.4 m (LY: USD4.3 m) 72% higher than last year 7% of revenue (LY: 4%) High inventory & trade receivables USD1.9 m (LY: USD2.3 m) 17% down on last year 8% of revenue (LY12%) Lower borrowing/equity injection

9.0

Cotton

Group Interest Costs

14% 12% 10% 8% 6% 4% 2% 0% 11% 7% 5% 3% 0% 1% 3% 12% 7% 11% 10% 8%

Seed
12%
10% 8% 7%

12% 11%
8% 4%

FMCG
Seed FMCG

xx

FY2009 FY2010 FY2011 FY2012 FY2013 Group Cotton

PROFITS AND EPS

Profit Trends
45.0 40.0 30.0 USD millions 20.0 15.0 5.0 10.0 26.9 25.0 33.2 38.5 24.2 35.0

Operating profit down 37%

Lower lint prices Lower seed sales volumes Weighed down by impairments

16.8 4.9 20.0 18.1 (0.5)

15.3 2.4 17.5 14.8 (2.1)

7.8 (4.3) 8.9 6.2 (6.7)

12.8

PBT down 103% Lower profits in Seed and Cotton PAT down 114% Low PBT

(5.0) (10.0) Operating profit FY2009

Profit before Profit after tax tax FY2011 FY2012

Attributable earnings

FY2010

FY2013

AE & EPS down 109%

US1.26 cents loss versus US1.16 LY Lower earnings Impairments

PBT
Cotton Seed FMCG Spinning Other

FY2013 USD m (7.6) 12.4 (2.8) (2.5)

% FY2012 Cont USD m

(1520%) 2480% (560%) (500%)

% Cont
34% 130% (32%) (17%) (15%)

% Change
(225%) (47%) 52% n/a 4%

6.1 23.5 (5.8) (3.1) (2.6)

EBITDA
60.0 50.0 40.0 USD millions 33.4 30.0 20.0 10.0 Group 43.8 47.6 32.7

EBITDA Cotton
16.8 (2.7) 17.7 23.7 11.4 29.3 29.8 23.2

% FY2013 FY2012 Change 11.4 23.2 1.2 23.7 29.8 (1.8) (52%) (22%) 167%

Seed
0.1 3.6 (2.2) (1.8) 1.2

22.4

18.2 18.3

FMCG

Cotton FY2011

Seed FY2012

FMCG FY2013

(10.0)
FY2009 FY2010

EBITDA Margin
40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15%

33% 28%
21%

24% 24% 14%

30% 25% 19% 15% 16% 14%

0% FY2009

-3% FY2010

FY2011 -12%

FY2012 -10% FMCG

Group

Cotton

Seed

EBITDA softened to USD32.7 m dropped 31% over LY affected by high impairment charges and lower profits in Cotton/Seed Significant improvement in FMCG required Funding, raw material availability and supply chain efficiencies still an issue

USD millions

BALANCE SHEET SUMMARY

Asset category Non-current assets Assets held for sale Other current assets Total Assets Equity Non current Liabilities Liabilities held for sale Other Current Liabilities Total Equity & Liabilities Mar-13 105.8 1.5 181.0 288.3 113.2 26.3 0.5 148.3 288.3 % Mar-12 change 105.6 0%

5.3 (71%) 201.6 (10%) 312.5 124.8 28.0 (8%) (9%) (6%)

Deferred tax assets grew 5% to USD10.1 m Deferred tax liabilities fell 9% to USD24.2 m Total borrowings fell by 9% to USD125.9 million

2.9 (83%) 156.8 312.5 (5%) (8%)

USD million

Total Assets
350.0 300.0 312.5 212.9 224.7 251.7 250.0 200.0 150.0 100.0 50.0 FY2009 FY2010 FY2011 FY2012 FY2013

Equity down 9% over last year

Affected by low earnings Reduction in capital reserves re: disposal

288.3

TOTAL ASSETS
Asset category PPE Inventory Input Schemes Trade receivables Other Total Assets Mar-13 103.3 72.4 10.6 83.3 18.7 288.3 Mar-12 % change 105.0 81.6 29.2 70.2 26.5 312.5 (2%) (11%) (64%) 19% (29%) (8%)
Total Assets by SBU - 2012
FMCG 25 7% Spinning 1 0% Other 1.6 1% FMCG 27 9%

Total Assets by SBU 2013

Other 0.2 0% Cotton 113.7 38%

Seed 157.8 53%

Total assets declined by 8% Spent USD10.9 m in capex Last year: USD17.8 m High inventories and trade receivables Slow debtors payments in Seed SBU Also, high input scheme impairment

Seed 157.4 45%

Cotton 161.5 47%

BORROWINGS
Borrowings
160.0 140.0 120.0 USD million 11.7 55.0 8.8 48.5 59.7 11.8 51.6 FMCG 7.1 6%

Total Borrowings FY2013

100.0
80.0 60.0 40.0 20.0

14.5 30.4 47.4

Seed 46.8 37%

Cotton 72.0 57%

66.3

62.5

35.0 FY2009

FY2010 FY2011 FY2012 Long term FY2013

Short term

Overdrafts

Total Borrowings FY2012

Total borrowings were USD125.9 m

FMCG 7.9 6%

9% lower than LY 91% is cheaper offshore loans High working capital requirements Does not include USD4.9 m of shareholder loans to FMCG

Seed 46.0 34%

Cotton 80.0 60%

PERFORMANCE STATISTICS
FY2013 FY2012 FY2011
Interest cover (times) Equity/total assets Current ratio Quick ratio Return on total assets Return on equity Return on capital employed 0.96 0.39 1.23 0.61 8% (9%) 17% 1.61 0.40 1.30 0.52 13% 7% 26%
200.0

2.10 0.46 1.45 0.53 14% 11% 24%

160.0
140.0

Borrowings vs EBITDA
3.9
137.7 125.9

4.5
4.0 3.5 2.5 2.0 1.5 USD million USD million 3.0

120.0 USD million 100.0 2.6

92.0

2.9

80.0
60.0 40.0 20.0 1.2
40.5 33.4 57.3 22.4

2.1
47.6

43.8

32.7

1.0 0.5

Borrowings EBITDA Borrowings/EBITDA (times)

Gearing going up Interest cover weakening Equity/total assets ratio going down Working capital a concern low quick ratio: high inventory levels Financial returns are volatile Possible undervaluation of counter

Market Cap vs Net Assets

7.8 8.9 160.0 6.2 120.0 116.5 124.8 USD million 154.9 150.0 100.0 50.0 FY2009 FY2010 FY2011 FY2012 Market cap Net assets 10.0 8.0 6.0 4.0 2.0 (2.0) (4.0) (6.0) (8.0) AE

180.0

114.6

(4.3)

60.0

FY2013

29.4

(6.7)

113.3

KEY ISSUES Focus areas

Reduction of debt levels and annual interest bill Cotton Improvement in input scheme recoveries

Seed

Downward management of inventory levels Collection of outstanding trade receivables

Raw material supply FMCG Margin improvement Funding and supply chain efficiencies

Group

Harness supply chain based synergies Fund raising and correction of capital structure Reduction of Groupwide debt and gearing levels

THANK YOU

AUDITED GROUP RESULTS

for the year ended 31 MARCH 2013

DISCUSSION

28 June 2013