Delta : Presentation To Analysts — 11 May 2023

PRESENTATION TO ANALYSTS

F23 FINALS

Sustaining Our Growth

11 May 2023 @ Mandel Training Centre

TRADING ENVIRONMENT

1. Overview
2. • Heightened global inflation and currencies volatility.
   • Continued supply chain disruptions arising from Covid-19 impacts and the Russia/Ukraine conflict.
   • Geopolitics affecting commodity supply and pricing.
3. Zimbabwe
4. • Increased dollarisation driven by high ZW$ interest rates and tight ZW$ liquidity and stable US$ pricing.
   • Near convergence of exchange rates in Quarter 2 into Quarter 3. Renewed exchange rate volatility in Quarter 4.
   • Strong consumer demand driven by:
   • • Government infrastructure projects and a boom in housing development.
     • Mining activities which are benefitting from high demand and firm mineral prices.
     • Marketing of commercial crops; e.g. tobacco and higher output of wheat.
     • Higher ratio of salaries and wages in foreign currency across sectors.

TRADING ENVIRONMENT

Cont…

1. Key Challenges in Zimbabwe
2. • Constrained ZW$ liquidity in Quarter 2 and Quarter 3 and high ZW$ interest rates adversely affecting formal sectors.
   • Distortions in exchange rates affecting pricing in formal channels.
   • Increased electricity and water supply challenges.
   • Traffic congestion in urban centres affecting product delivery.
3. South Africa
4. • Pressure on disposable incomes arising from elevated inflation and fuel price increases.
   • Escalation in electricity supply outages.
   • Rand volatility.
5. Zambia
6. • Improving macro-economic factors, although Kwacha exchange rate depreciation has picked up.
   • Disposable incomes remain depressed.
   • Shortages and high prices of maize.

VOLUME PERFORMANCE SUMMARY FOR 12 MONTHS TO MARCH 2023

Category	March 2023	% Change on Prior Year
1. BEVERAGES (HLS 000)	F23	F22
Lager Beer
1.1 Clear Beer	2 175	17
Sorghum Beer
1.2	Sorghum Beer - Zimbabwe	4 072	9
1.3	Sorghum Beer - Zambia	875	28
1.4	Sorghum Beer - South Africa	1 468	12
Soft Drinks
1.5	Sparkling Beverages	1 590	10
1.6	Alternative Beverages	83	-12
Total Delta Beverages	10 263	12
Wines and Spirits
1.7	African Distillers	159	18
Total excluding Associates	10 422	13
Associates
1.8	Schweppes Zimbabwe Limited	799	0
Total Beverages incl Associates	11 221	12

MARKET SHARE READINGS - ZIMBABWE

MARKET SHARE - THIRD PARTY READS

	March 2023	March 2022
Sparkling Beverages	61%	59%
Lagers Beer	96%	95%
Chibuku	92%	86%

• Pressure on pricing arising from depreciating and multiple exchange rates.
• Low RRP compliance.