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Investor Presentation 19 December 2006

Organisational Structure
Board of Directors
Agriculture Director Tanganda Estates Corporate Commercial Director Finance Director Group Human Resources Manager Beverage Division General Manager

Coffee Estates New Year's Gift Chinyika Petrunella

Tea Estates Ratelshoek, Avontuur Jersey, Helvetia Zona

Packaging Plant Mutare

Marketing and Distribution Mutare, Harare Gweru Bulawayo

Tingamira EPZ Avontuur Helvetia Outgrowers

Operating Environment
Macro-economics Exchange rate rigidity for prolonged period Inflation of over 1000% and rising Interest rates Estates Weather uncertainty Labour Beverage Weak demand Shortage of packaging material Complementary products Financial Working capital management

Highlights (Historical)

Beverage Division volumes down 29% but revenue up 1 276% Tea production up 2% at 8 500 tonnes (2005: 8373 tonnes) Turnover up 1029% to $2 541 million Export revenue up 727% to $992 million Operating Profit up 1261% to $1 388 million Earnings per share up 1099% at $8.63 (2005: $0.72)

Where the profit came from


Annual inflation 1070% Average inflation 997%
Operating Costs up

Agriculture
Beverage Corporate

996%
900% 1352% 727% 1375% Total : 1029% Total : 1002%

Turnover up
Exports Local

Turnover in 2003 & 2006


2003

2006

Beverage 18% Agriculture 82% Agriculture 36% Beverage 64%

Operating Profit in 2003 and 2006


2003

2006

Beverage 30%
Agriculture 70%

Agriculture 43% Beverage 57%

Working Capital Management


$ Million Stocks Finished product 2006 2005 Change Inc.%

Domestic
Export Stores

$ 222
$ 190 $ 690 $1 115

$
$ $

32
33 42

$
$ $

200
157 656

883%
474% 1718% 1077%

$ 107

$ 1 007

Debtors
Domestic Export Other $ 379 $ 127 $ 239 $ $ $ 21 25 16 $ 358 $ 102 $ 223 1700% 400% 1400%

$ 745

63

$ 682

1082%

Creditors

$ 500

49

($ 451) $1 240

920%

Total increase in working capital

Operations Agricultural Division


Volume strategy Quality strategy Mechanical Harvesters Costs

Operations Beverage Division


Margin maintenance
New Products Tinga Mira water

Cash collection
Costs

Operating Costs

Fertilizer Power Fuel Plucking Labour Maintenance Packaging Material

4500 4000 3500 3000 2500

International Average Tea Yield Per Hectare

2005 2000 1500 1000 500 0

Ke ny a

Sr iL an ka

ad es h Ba ng l

ba bw

Ta ng an

Zi m

In do

ne si a

da

al aw

In di

Regional Production
350 300 250 200 150 100 50 0

Tanganda Zimbabwe Kenya Malawi Tanzania

2002

2004

2006

World Tea Supply and consumption (000 tonnes)


3600 3500 3400 3300 3200 3100 3000 2900 2800 2700 2001 2002 2003 2004 2005 Production Consumption

World Price of Tea Ex-Auction 1986 2005


IN US $ CTS. PER KG

300

250

200

150

100

50

0
86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05

Black Tea Prices


160 140 120 100 80 60 40 20 0
No v-0 No v-0 Oc t-0 6 4 5

Tanganda Mombasa

Tanganda Prices
300 250 200 150 100 50 0
No vNo vOc t-0 6 04 05

Tanganda Mombasa

Outlook
Short-term

Late start to the rainy season Concentration on increasing yields(farming) and quality (practices) Some expansion Further development of out-growers New products in Beverage Division Devaluation?

Outlook
Medium-term 350 ha of immature tea coming to maturity over next 5 years 300ha available for further development Out-growers Macadamias- 150 ha in the ground, 2 tonnes/ha @ US$1.30/kg Coffee reduction New products in Beverage Add value to our core product - tea

Thank you for coming!

Snack Time There are many members of management present, so please feel free to ask them about the year.