On a Date with Innscor Africa (INN)

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I am the kingmaker of great businesses through my ecosystem which incubate. You can liken my approach to Berkshire Hathaway Welcome to On a Date with a listed company on the Zimbabwe Stock Exchange (ZSE). THREAD: On a Date with Innscor Africa Limited (INN) .

#1. History, 1951, a sign manufacturing business is started in Rhodesia, Bulawayo. The proprietors are seeing a gap in the market Neon Fluorescent Co (NFC) relocates to Salisbury to capture a bigger market as a number of calls for their service is from there

1966, NFC gravitate towards a more lucrative market of refrigerator and chest freezer manufacturing using Atlantic and later Capri brand for its products 1968, There is a growing demand for television, TV Sales & Hire (TVSH) is born led by the Fowler family.

Buying electronic appliances is expensive for ordinary people TVSH comes out with a solution, hire purchase. The Fowler family grows the business becoming agents for foreign owned brands in consumer goods. 1987, Koudounaris and Fowler family open Chicken Inn

The entry into the quick service restaurant business is a success, opens up new opportunities 1993, Astra Crocodile Ranching & Shearwater Adventures is bought from Astra Corporation Distribution Group of Africa (DGA) is started as an agency for global brands

1995, Acquisition and commissioning of a mechanised bread plant in Harare 1998, Capri Corporation is bought facilitating the reverse listing of INN on ZSE 2003, 26% of National Foods is acquired through a share swop with Takepart Investments and Old Mutual.

2004, 21% of Colcom Holdings a pork products producer in Zimbabwe is bought. It becomes 100% owned business of INN 14 years later 2009, shareholding in a poultry producer Irvine's is bought. 2010, Padenga Holdings (PH) is unbundled twitter.com/MartinMataga/status/1429369143174778886?s=20&t=RhavCFlNglwpMiM2yVQ97w

2015, The successful quick service restaurant (QSR) business is split from INN to become Simbisa. From the initial Chicken Inn store it grew with the opening of outlets which included franchise rights to, Steers Nando's Galisto's twitter.com/MartinMataga/status/1514848602203607040?s=20&t=4rd0m3cTOiYcr2EpKZBPLg

INN proposes to purchase a majority stake in Profeeds, a stock feed manufacturer through its subsidiary Irvine's. However the Competition and Tariff Commission (CTC) opposes the deal as monopolistic. 29% shareholding in Profeeds is eventually bought from 59%

2016, Shareholding in Transerv an auto retail business is bought. It started as a wholesale spares delivery business supplying workshops and service centers 14 years earlier. Transerv, TVSH and DGA businesses are separated from INN to form Axia Corporation

A minority stake in Probrands, a fast moving consumer goods (FMCG) manufacturer is purchased from the Philip brothers. Disposal of the Spar Corporate retail stores which had been started 17 years earlier in Harare with disposal in Zambia a year later.

2019, Probrands is restructured into specific units creating a separate business Probottlers focused on manufacturing syrups. INN acquires a 50.64% stake in Probottlers. Associated Meat Packers (AMP) is born out of Colcom Holdings restructuring efforts.

A new investor takes up stake in Skitap or Innscor Appliance Manufacturing the business holding Capri leaving INN with only 25.05%. The remaining stake is bought 3 years later by Annunaki Investments an investment vehicle owned by SSCG Africa Holdings.

INN disposes its interest in Freddy Hirsch a manufacturer of natural sausage casings, spices and seasonings. 2021, A financial services provider MyCash started by Meikles Limited 5 years earlier sells 30% of its stake to INN. 2022, Buffalo Brewing Co is born

#2. Operations, INN is a focused light manufacturing and integrated value chain investment group with a vision for efficient systems. It is leaned towards agro-processing to produce staples for the mass market through a woven network of related businesses

INN is divided into 3 main divisions and head office services division. • Mill-Bake • Protein • Light Manufacturing Mill-Bake 3 businesses make up the Mill-Bake division which are, • National Foods (37.45%) • Baker's Inn (100%) • Profeeds (49%)

Protein 3 businesses are in the Protein division which are, • Irvine's Zimbabwe (49%) • Colcom Holdings (100%) • Associated Meat Packers (50.1%) Light Manufacturing 6 businesses in this division are, • PRObottlers (50.64%) • PRObrands (39.2%)

• PROdairy (50.1%) • NatPak (58.33%) • Zando (60%) • Buffalo Brewing Co (50.2%) Head Office Division INN is invested into other related associate businesses which are, • Paperhole Investments (PHI) • Afrigrain Trading • Providence Human Capital

#3. Competitors, Mega Market Mutare based producer of consumer goods Top Chef, Ekono, Ideal. CFI Holdings The business supporting Victoria Foods, Farm & City. Surrey Group A business known for its beef and chicken production in Marondera. Sable Chicken

Koala Park Delta Beverages Dairiboad Proton Varun Beverages Dendairy Lobels Bread Arenel Brighton Piggery Nampak Cairns Foods Kusona Trading Associated Foods Zimbabwe Davipel Willowton Group Surface Wilmar Capital Foods EcoCash FSG Windmill Nestle

#4. Share price, 752,52 ZWL per share as at Feb 1, 2023. 713,67 ZWL per share on the 3rd of January 2023 28th on ranking in terms of year to date performance on the ZSE 11th most traded stock over the past 3 months to 1/02/2023 575,926,450 issued shares

#5. Shareholding, 18.70% is controlled by an investment vehicle owned by the founder of INN, Zinona Koudounaris. 17.54% is owned by HM Barbour an investment vehicle controlled by another co-founder of INN, Michael Fowler The two investors started INN

INN consolidated a portfolio of businesses into a single focused enterprise The businesses that became units of INN had started almost 50 years before its establishment The enterprise became an incubator which had critical mass to acquire related businesses

#6. Management, Julian Schonken - Group CEO, Sept 2016 He has held a number of financial and managerial positions during his 23 years with the group Prior to the appointment he led the light manufacturing unit which will be the strategic focus of the group.

#7. Pitch, Gaining competitive advantage over rivals by investing US70 million across its business units in the past period Reducing future foreign currency needs of the group by empowering local farmers to grow its raw materials Superb competent management

Incubation of resilient businesses which thrive after the incubation period such as Axis Corporation and Padenga. An investor can benefit by owning INN as there is the prospect to be part of a another strong business upon unbundling such as Simbisa.

#8. Brands,

Each week will be on a Date with a company listed on the ZSE. The purpose of this thread is to have a minimum appreciation of listed firms. Disclaimer: Do not misconstrue this thread as investment advise DATE companies before you buy its share