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ASTRAPAK FINANCIAL RESULTS SIX MONTHS ENDED 31 AUGUST 2011 Oct 2011

ASTRAPAK FINANCIAL RESULTS SIX MONTHS ENDED 31 AUGUST 2011 Oct 2011. Financial Summary. Main features of reported results: V olume decline of 5.5% due to industrial action and weakened demand – mainly Flexibles; Continued downward pressure on margins due to trading environment;

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ASTRAPAK FINANCIAL RESULTS SIX MONTHS ENDED 31 AUGUST 2011 Oct 2011

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  1. ASTRAPAK FINANCIAL RESULTS SIX MONTHS ENDED 31 AUGUST 2011 Oct 2011

  2. Financial Summary Main features of reported results: • Volume decline of 5.5% due to industrial action and weakened demand – mainly Flexibles; • Continued downward pressure on margins due to trading environment; • Growing cost base mainly due to energy and labour; • Industrial action July / Aug negatively impacted volumes and profitability; • Treasury management resulting in lower net interest cost; • Gearing below 40%.

  3. FINANCIAL PERFORMANCESUMMARY * Aug 2010 includes estimated R 35m loss due to industrial action and R 10m retrenchment costs

  4. FINANCIAL PERFORMANCESUMMARY

  5. Gearing & Net working capital Gearing, Net Debt & Equity Net working capital & days

  6. FINANCIAL PERFORMANCESUMMARY

  7. SEGMENTAL REVIEW

  8. SEGMENTAL PERFORMANCE RIGIDS Factors impacting results: Challenges: Demand pressures; Customer procurement strategies; PET operations underperform. Positives: Market share; Projects commenced; Preferred supplier status; Sound technology base.

  9. SEGMENTAL PERFORMANCE FLEXIBLES Factors impacting results: Challenges: Historical re-investment rate; Culture change; Industrial relations. Positives: Leadership changes; Special investment of R 106m in process of commissioning; Science in manufacturing.

  10. OUTLOOKTrading environment Challenges Polymer pricing ($) • Demand • Selling Prices • Competitor activity • Polymer prices & supply • Cost increases : energy & labour

  11. OUTLOOK MANAGEMENT FOCUS FOR 2012: • Execute on 10 point plan; • Flexible special investment; • Delivery on projects – Rigids; • Improved working capital; • Restoration of gross margins through: - Increasing selling prices - Rationalising cost base – structural and other cost savings - Procurement opportunities - Operational excellence • Improve return on equity.

  12. THANK YOU

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