On a Date with Nampak Zimbabwe

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I am a critical enabler that facilitates proper handling and transportation of products from source to final customer Welcome to On a Date with a listed company on the Zimbabwe Stock Exchange (ZSE). THREAD: On a Date with Nampak Zimbabwe Limited (NPKZ).

#1. History, 1951, In Norton +40 kilometres west of Harare a speciality business is opened to manufacture suitcases, file covers. The enterprise is known as Rhopulp a foreign controlled company which is listed on the @ZSE_ZW a year later.

Rhopulp has a subsidiary which grows timber, Selukwe Timbers. 1959, The European based metal cans producer CarnaudMetalbox opens a plant in Zimbabwe. 1979, Rhopulp acquire Amalgamated Packaging Industries of Rhodesia (API) and Rhodesia Packaging (RP)

Hunyani Pulp and Paper Industries becomes the new name of Rhopulp. 1988, The major foreign shareholders sell off their shares which are bought by the GoZ and local investors. 1993, Mega Pak a joint venture (JV) between Delta and Nampak commerce on 51/49.

1995, TSL acquires 39% of Hunyani Holdings which reduces to 16.53% after a major restructuring which dilutes ownership. 1998, Nampak the SA based packaging business increase its stake in Hunyani to 34.3%. 2002, CarnaudMetalbox Zimbabwe is bought by Nampak.

2015, Consolidation of Nampak's interests in Zimbabwe with the subsequent change of name and delisting of Hunyani The interests were in Mega Pak, CarnaudMetalbox and Hunyani Holdings which combined into a single diverse entity, Nampak Zimbabwe (NPKZ)

The envisioned entity was an integrated manufacturer of packaging solutions with the wit to fend off competitors. TSL sold off its 16.53% shareholding in Nampak Zimbabwe and invested it in its core business 50% of Softex Tissue Papers sold to ART Corporation

#2. Operations, NPKZ is an integrated manufacturer of paper, plastic and metal PACKAGING solutions for industries in Zimbabwe AND LEASING of biological assets, a timber plantation and a timber processing plant in Mashonaland East.

Hunyani Paper & Packaging The subsidiary is a manufacturer of paper packaging products. It has 2 divisions, • Hunyani Corrugated Products Producer of corrugated containers for commercial packaging • Hunyani Cartons, Labels, & Sacks Makers of cartons,

CarnaudMetalbox Manufacturer of HDPE, metal cans and pry-off metal crowns for food, beverages, paint and floor polish industries. Mega Pak Zimbabwe Producer of a diverse range of plastic products, which includes crates, drums, tanks, bottles and closures

#3. Customers, NPKZ supplies its products to a number of industrial, institutional and residential clients. These include, ° Dairiboad Holdings ° British American Tobacco ° Schweppes ° Olivine Industries ° Willowton ° Nestle ° Delta Beverages

#4. Competitors, Natpak A unit of Innscor which has invested its resources into broadening its packaging capabilities. Alpha Packaging A corrugated box and egg tray specialist which has been ramping up its capacity through Natpak resources. Jojo Tanks

CPL Packaging Supplier of high aesthetic laminated flexible packaging for FMCGs. Polyfoil A flexible packaging manufacturer based in Bulawayo. CirclePak The manufacturer of eco-friendly biodegradable cores and speciality composite containers in Zimbabwe

#5. Challenges, The business is highly dependent on foreign currency for the importation of its raw materials but does not generate sufficient to cover import Profit margins have been thinning due to high costs of production exacerbated by outdated machinery

#6. Share price, 8,00 ZWL per share as at Dec 16, 2022 11,16 ZWL per share on the 3rd of January 2022 44th on ranking in terms of year to date performance on the ZSE 30th most traded stock over the past 3 months to 23/12/2022 755,648,101 issued shares

#7. Shareholding, 51,43% of NPKZ is held by Nampak Southern Africa Holdings, a leading packaging producer in Africa but concentrated in SA. 21,46% is controlled by Delta Beverages Corporation, a non and alcoholic beverage manufacturer in Zimbabwe.

#8. Management, John P. Van Gend - Group MD A Chartered Management Accountant with extensive experience in finance, corporate & strategic leadership Managed to support the evolution of NPKZ from a fragmented business into a total packaging solution provider

#9. Pitch, A comprehensive packaging provider thereby creating a one stop shop for its clients reducing shift to competitors. Business supported by strong institutional investors and pension fund managers which helps in capital raising.

Recently gained control of its Maganga Estates which is between Marondera and Macheke. Asset to improve revenue. The planned increase in acreage under tobacco will likely improve sales of telescopic tobacco cases & cases for cut rag. Established clients.

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