1. GROWING OUT OF AFRICA

2. Presentation outline Distell’s roots Who and where are we today
Owning our African footprint
Core strength and key competitive advantages
Our aspirations
Own The Last Mile
Legislative challenges
Aligning our global footprint

3. Distell’s roots & Distell today

4. When was Distell established?
Distell was created in 2000 by the merger of Stellenbosch Farmers' Winery (SFW) and Distillers Corporation

5. Distell Limited: Shareholding Structure
CONFIDENTIAL
Second largest luxury goods company in the world
The Rupert Family
Control
Richemont
Control
Remgro Limited
15.6%
Capevin Holdings Limited
50%
Control
50%
Remgro-Capvin Investments Limited
53%
*19% public shareholders and 2% non-public shareholders

6. Who and where is Distell?
Distell Group Limited is Africa’s leading producer and marketer of spirits, fine wines, ciders and ready-to-drinks.
Distell is currently the 2nd largest Cider Producer in the world.
Over 5,300 employees
11 wineries
6 distilleries
3 single-malt distilleries
19 SA sales offices
8 international sales offices
United States of America
Scotland
United Kingdom
France
Ghana
Nigeria
Angola
Namibia
South Africa
Swaziland
Mauritius
Kenya
Tanzania
Zimbabwe
Botswana
Taiwan
China
Brazil
Singapore

7. Owning our African footprint
CONFIDENTIAL
Progress thus far
Lesotho
Swaziland
South Africa
Botswana
Namibia
Zimbabwe
Mozambique
Malawi
Zambia
Angola
Democratic Republic of Congo
Tanzania
Burundi
Rwanda
Kenya
Uganda
Somalia
Ethiopia
Eritrea
Djibouti
Central African Republic
North
Sudan
Chad
Egypt
Libya
Tunisia
Algeria
Morocco
Western Sahara
Mali
Niger
Mauritania
Burkina
Faso
Nigeria
Cameroon
Gabon
Equatorial Guinea
Congo
Benin
Togo
Ghana
Liberia
Sierra Leone
Guinea
Guinea-Bissau
The Gambia
Senegal
South
Building own capability
Local production facility with owned RTM established in Ghana
Ground acquired to establish local production in Nigeria
Constructing local production in Angola
Minority stake in Tanzania Distillers Limited along with Tanzania Breweries (SABMiller)
Acquired 26% of Kenya Wine Agencies Limited during recent privatisation process
Joint ownership with Delta Breweries (SABMiller) in majority stake in African Distillers Limited in Zimbabwe
26% stake in Grays Mauritius
Ivory Coast

8. Distell’s strategic themes5.

9. Distell’s Core Strengths & Key Competitive Advantages
CONFIDENTIAL
Differentiated brand and product portfolio straddling all key occasions
Portfolio ideally suited to intermediate premiumisation
Brands with rich provenance and authenticity
South Africa's Winelands
Historic French cognac region
Wind-swept Scottish Isles
Strong balance sheet position
Impressive agricultural asset base with potential to unlock value
Organisational culture that thrives on innovation
A diverse pool of talented professionals

10. Our Aspirations DOUBLE REVENUE AND EBITDA BY 2020
Grow and win in South Africa
Expand into Africa and establish scale position in one major international market
Leverage core brand portfolio
We will continue to grow share and deliver superior returns to our shareholders that exceed our peers.
We will establish and embed end-to-end production, marketing and sales capabilities in key markets.
We will build and optimise a scale platform and use this to support new brand offerings and innovations.
LEAD SELECTED EMERGING MARKETS
CRAFT DISTINCTIVE & COMPELLING BRANDS
CARE AND CONTRIBUTE
OWN THE LAST MILE
SHAPE THE FUTURE
SCALE UP EXCELLENCE

11. Our Strategy

12. Strategic Aspiration:
DISTELL’S STRATEGIC JOURNEY – “Our 1, Plus 1, Plus 1 Ambition!” “Our journey towards 2020, and a bold new Distell, started in 2014…”
LEAD SELECTED EMERGING MARKETS
OWN THE LAST MILE
SCALE UP EXCELLENCE
CARE AND CONTRIBUTE
SHAPE THE FUTURE
CRAFT DISTINCTIVE & COMPELLING BRANDS
Key initiatives:
Grow and win in RSA
Expand into Africa and at least one major international market
Leverage core brand portfolio
Build scale positions in core markets and segments
Strategic Aspiration:
Double revenue & profit by 2020!

13. INTERNATIONAL PERFORMANCE HIGHLIGHTS continued… “Stand out performances by several brands in key international markets.”
BSD
Performing well:
Value growth +6.5%
Nordics
Drostdy-Hof:
Value growth +18.2%
Canada
Two Oceans:
Value growth +1.3%
Taiwan
Scottish Leader:
Value growth +18.4%
Europe
Amarula:
Value growth +27.2%
Germany
Nederburg:
Value growth +9.1%
Reps 110
Outlets

14. Craft distinctive and compelling brand portfolios

16. Proven Track Record In Building Strong Brands
Hunters is #2 Cider brand in the world
Savanna is #6 Cider brand in the world
Amarula is #2 largest cream liqueur in the world
Distiller of the Year 2015
2nd largest cider company in the world.
Hunters #2 Cider Brand in the world
Savanna is #4 Cider brand in the world
Amarula is #2 largest cream Liqueur
Distiller of the year
Baines – world’s best grain whiskey
Source: Euromonitor

17. Own The Last Mile

18. +15% +30% +20% STRATEGIC INITIATIVES – OWN THE LAST MILE
“Synergy between Revenue Management & Sales Excellence capabilities in Southern Africa.”
Revenue Management
Capability fully integrated into regional BAU processes and decision support
Focused Portfolio
Effective Trade Terms
+15%
Price adherence
Clear Pack and Channel pricing & adherence
+20%
Additional outlet growth targeted
Sales Force Effectiveness
Sales Excellence office created & second phase of roll-out initiated
Wider Reach & influence
+30%
Cold space implementation
Cold Space Penetration
Constant Activity & Execution

19. International Offices
Brazil (São Paulo)
China (Zhongshan)
France (Cognac)
Scotland (Glasgow)
Singapore (Central Singapore)
Taiwan
United Kingdom (London)
United States of America (New York)

20. Increasing RTM capability & influence through key partnerships…
STRATEGIC INITIATIVES – OWN THE LAST MILE
“‘…While select African & International partnerships will change our ability to influence the last mile..”
International
Africa
Increasing RTM capability & influence through key partnerships…
Shareholding in KWAL provides Distell with the ability to influence KWAL’s strategy and on-the-ground execution.
Reps 110
Outlets

21. LEGISLATIVE CHALLENGES
South African Revenue Services Export Incentive Scheme
VAT Act:
VAT is always applicable at 14%
VAT can be zero rated
Maximum period allowed before VAT becomes applicable – 90 days
Extensions can be made on application
After 365 days VAT cannot be reclaimed from SARS
All spirit sales are subject to Duty At Source

22. LEGISLATIVE CHALLENGES continued…..
Maximum payment terms allowed by SARB
Off-setting invoices with expenses not permitted
Writing-off bad debt without prior consent
Stock transfers not permitted without consent
Declaring all export proceeds on receipt of funds and matched to export

23. Organisational Design
STRATEGIC INITIATIVES – SHAPING THE FUTURE
“Organizational capabilities to support create & meet demand teams”
Competencies
Systems
Global financial/ERP integration
People & Talent management system solution implemented
Improved operational & decision support ICT systems
End-to-End global Supply Chain MIS
Centralised procurement
Sales excellence success from Southern Africa being rolled out in key African and International focus markets
Revenue management practices replicated globally
Luxury brand marketing and RTM capability being developed
Organisational Design
Embed and manage organization change effectively

24. ALIGNING OUR GLOBAL FOOTPRINT
Establishing a global credit policy
Re-designing group documentation
Aligning Global Collection Policy
The integration of 5 independent ERP systems
Investigation of new “order to cash” software
Setting the stage for the development of a Centre of Excellence

25. “In any given moment, we have two options: to step forward into growth, …or to step back into safety.” Abraham Maslow

26. Any questions?