Interim results presentation

29 February 2012 1 March 2012

Agenda

The past six months

Operational overview Financial overview Prospects Questions and answers

Highlights
Revenue HEPS (continuing operations) Interim dividend
Retain 2x dividend cover

24.8%

(17.3) %

18.45 cps

No discontinued operations Improved gearing

Trading conditions
Challenges for the period
Grain Management Animal Protein General margin pressure in Foods segment
Lower silo volumes + Price and input cost pressure in Foods = HEPS decline

Positive influences for the period

Retail, Equipment and Australia Balance sheet strengthening

Working capital
Financial Services Procurement process (strategic sourcing) Cost control

Operational overview
Chris Venter

Agri services segment

Revenue (Rm)
Retail & Equipment 2,013 1,732 1,620 Grain Management 2,014 95

Profit before tax (Rm)

Retail & Equipment 114 Grain Management 132 106

69

59

62

35
308 283 287 252 2011 2008 2009 2010 2011

2008

2009

2010

Retail and Equipment: High maize price contributed to enhanced earnings Improved retail conditions in Australia Grain Management: Significant volume reduction in silos

Agri services segment

Retail & Equipment
High maize price and good rainfall brought recovery from second half Strong maize price boosted revenue Strong volume growth Margins maintained

Farmers positive on agricultural sector

Agri services: Tractor sales

6,000 National AFGRI area AFGRI Africa 5,000 4,382 4,000 3,117 3,000 2,254 2,715 2,417 3,709 AFGRI sales 5,143

3,577 2,907

2,000
863 309 2006 2007 1,024 791 302 426 687 237 2009

1,130
821 513 220
354

1,000

615 191 2003

814 240 2004

609 182 2005

0 2008 2010 2011

Sales value of AFGRI tractors sold in South Africa: 2011 (interim) 2010 (interim) R250 million R174 million Current market share of 31% (27% - 2010)

* Value of tractors sold only includes new tractors sold

Agri services segment

Africa
John Deere dealership established in Zimbabwe and Zambia Tractor sales:
Zimbabwe 25 (Aug Dec 2011) One center in Zimbabwe Cash sales Zambia 134

In process of negotiating an additional two John Deere agencies in Africa Supporting 24 farmers in Congo Brazzaville

Agri services segment

Grain Management
Lower silo volumes

Exports continued during the six months

Successful move of Procurement arm of Trading into Grain Management Expanded Collateral Management footprint

Plantings (AFGRI area of operation):

9% increase - maize 4% decrease - soya beans 24% decrease - sunflower
Grain White maize Yellow maize Total maize Sunflower Soya beans TOTAL HA Current year (ha) Prior year (ha) 226 056 223 807 408 851 358 220 634 907 582 027 28 099 36 927 221 107 230 037 896 424 861 185

10

White and yellow maize plantings

White maize: area planted (ha)
1,900,000

1,700,000
1,500,000 1,300,000 1,737,000 1,489,000 1,719,700 1,418,300 1,590,200 2012 2012 1,100,000 900,000 700,000 500,000 2008 2009 2010 2011

Yellow maize: area planted (ha)

1,080,000 1,040,000

1,000,000
960,000 938,500 954,000 920,000 880,000 840,000 2008 2009 2010 2011

11

1,040,000

1,062,000

1,022,700

12

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

500,000

Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07
December Drought conditions & low plantings

Dec-07
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10

AFGRI closing silo stocks (000)

Sep-10
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
Source: AFGRI

AFGRI closing silo stocks (000) Dec 10 Dec 11

3,000,000
2,748,000 2,605,000

2,500,000
2,259,000 1,928,000 1,967,000 1,668,000

2,000,000 Tons

1,838,000
1,691,000

1,500,000

1,463,000 1,308,000 1,207,000

1,460,000
1,231,000 1,090,000 915,000

1,000,000

932,000 705,000 686,000 573,000

500,000

Mar-11 Jul-11 Oct-10 Jan-11 Feb-11 Jun-11 Sep-11 Oct-11 Jul-10 Sep-10 Dec-10 May-11 Nov-10 Aug-10 Aug-11 Nov-11 Dec-11 Jun-10 Apr-11

Key: Jun 10 Jun 11 Dec 10 Dec11

Low closing stock levels resulted in R48 million shortfall in income

Source: AFGRI

13

14

R/ton 1,300.00 1,700.00 2,100.00 2,500.00 3,300.00 3,700.00

2,900.00

500.00 Export parity

900.00

Import and export price parity

SAFEX, Jul 12

Import parity

PRICES OF YELLOW MAIZE DELIVERED (RANDFONTEIN)

SAFEX

Source: SAFEX

2-Jan-08 1-Feb-08 2-Mar-08 1-Apr-08 1-May-08 31-May-08 30-Jun-08 30-Jul-08 29-Aug-08 28-Sep-08 28-Oct-08 27-Nov-08 27-Dec-08 26-Jan-09 25-Feb-09 27-Mar-09 26-Apr-09 26-May-09 25-Jun-09 25-Jul-09 24-Aug-09 23-Sep-09 23-Oct-09 22-Nov-09 22-Dec-09 21-Jan-10 20-Feb-10 22-Mar-10 21-Apr-10 21-May-10 20-Jun-10 20-Jul-10 19-Aug-10 18-Sep-10 18-Oct-10 17-Nov-10 17-Dec-10 16-Jan-11 15-Feb-11 17-Mar-11 16-Apr-11 16-May-11 15-Jun-11 15-Jul-11 14-Aug-11 13-Sep-11 13-Oct-11 12-Nov-11 12-Dec-11 11-Jan-12 10-Feb-12

15

000 tons
50 100 150 200 250 300 350 400 450 0 May-10

Jun-10
Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11

Maize exports (total)

Mar-11
Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

Source: SA Grain Information Service

16

R / ton

1300

1500

1700

1900

2100

2300

2500

2700

2900

3100

1100

900 02/11/2007 02/01/2008 02/03/2008 02/05/2008 02/07/2008 02/09/2008 02/11/2008 Year 02/01/2009 02/03/2009 02/05/2009 02/07/2009 WMAZ 02/09/2009 02/11/2009 02/01/2010 YMAZ 02/03/2010 02/05/2010 1 844 Yellow maize White maize 2011 1 201 Average for the year 1 263 1 425 1 537 1 830 1885 1895 2010 2009 2008 2012 (Jan) 2738 2764

Yellow and white maize price

02/07/2010
02/09/2010 02/11/2010 02/01/2011 02/03/2011 02/05/2011

02/07/2011
02/09/2011 02/11/2011 02/01/2012

Source: JSE and SAGIS

Financial services segment

Revenue (Rm)
Financial Services 485

Profit before tax (Rm)

Financial Services 32 35

339
214 201

27

2008

2009

2010

2011

2008

2009

2010

2011

GroCapital Restructure in 2009 demonstrates positive trend Strategic direction well entrenched with proven results AFGRI Capital Position for fee income rather than interest income

17

Financial services segment

GroCapital
Product diversification Focus on commodities in Africa reaping rewards Sale of corporate debtors book Enhancing structured finance and procurement business and mitigating risk with a logistics partner
Corporate debtors book (Rm)
1,400 1,200 1,000 817 800 600 1,315 1,208

400
200 2009 2010 2011

Source: AFGRI data

18

Financial services segment

AFGRI Capital
Successful implementation of sale of debtors book
Improve financial position and gearing Increase access to funding Opportunity to utilise capacity and infrastructure

Change from interest income to fee income model

6,000 5,000 4,000 3,000 2,000 1,000 0

Farm debtors under management (Rm)

5,389 4,864 3,965 2,886 Farm debtors under management (Land Bank and Wesbank)

2009

2010

2011

2012

Source: AFGRI data

19

Financial services segment

AFGRI Capital
AFGRI retains strong working relationship with clients Farmers experienced no negative effect or change in service level Marketing opportunity exists now that available capital funding is in place

How is AFGRI experiencing the relationship with the Land Bank? Is AFGRI still of the opinion that this transaction was the correct one?

20

Foods segment
Revenue (Rm)
Oil, Milling & Protein 1,581 1,287 1,390 55 33 260 296 264 379 13 12 19 11 2011 Animal Protein 1,780 68

Profit before tax (Rm)

Oil, Milling & Protein Animal Protein 83

2008

2009

2010

2011

2008

2009

2010

Yellow maize milling integration Margin pressure on Foods segment as a result of high raw material prices

21

Foods segment
Animal Protein
External market factors
Increased raw material price - therefore increased margin
AFGRI Board

pressure
Year - year increase of 33% NSV increased by 18% Imports continued at 39%
Nick Wentzel Independent Non-Executive Director AFGRI Poultry

Internal efficiency factors

Hubbard breed Impact of volume on unit costs

Changes in Animal Protein

New appointments Nick Wentzel and Izaak Breitenbach Focus on increased volume to reduce unit costs Appointed as YUMs 3rd supplier
Izaak Breitenbach MD

22

23

R / kg 10 12 13 15 16

14

11

Jan-07 Mar-07

May-07
Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11

Broiler pricing
Total sales realised of frozen broilers

Mar-11
May-11 Jul-11 Sep-11 Nov-11

Source: South African Poultry Association

Foods segment
Oil, Milling and Protein
One month inclusion of yellow maize milling business revenue

Higher raw material price

Margins remain under pressure Nedan expansion project progressing well

Impact of new crushing plants around South Africa?

24

Financial overview
Jan van der Schyff

Consolidation of BEE structure

Income statement impact
Increase in interest paid Increase in taxation Increase in profit attributable to ordinary shareholders : R 39 million : R 7 million : R 9 million

Balance sheet impact

Decrease in total equity Decrease in net assets : R 838 million : R 838 million

26

Consolidated income statement

Description R million Total revenue Cost of Sales Gross Profit Net operating expenses Operating profit Finance cost / associate profit Profit before taxation - continuing Taxation Profit for continuing operations 6 months to 31 Dec 2011 4 579 (3 477) 1 102 (721) 381 (193) 188 (54) 134 6 months to 31 Dec 2010 3 669 (2 578) 1 091 (657) 434 (205) 229 (70) 159

Change
24.8% (34,9)% 1,0% (9,7)% (12,2)% (5,9)% (17.9)% 22.9% (15.7)%

Discontinued operations
Profit for the period Diluted weighted average number of shares in issue (m) Diluted EPS (cents)

134 356.7 37.1

(12)
147 356.5 40.9

(100)%
(8.8)% (9.3)%

Diluted HEPS (cents)

34.5

41.2

(16.3)%

27

Segmental overview
Revenue - 31 December 2010 Revenue - 31 December 2011

44%

50%

Agri Services Financial Services Foods

47%

49%

Agri Services Financial Services Foods

6%
4%

Operating profit - 31 December 2010

Operating profit - 31 Decmber 2011

31% 42%

Agri Services Financial Services Foods

22% Agri Services Financial Services Foods

51% 27%

27%

28

Segmental overview
PBIT - 2010 PBIT - 2011

31% 42%

Agri Services Financial Services Foods

21%
Agri Services Financial Services 52% 27% Foods

27%

PBT 2010

PBT 2011

18% 34% 55% 11% Agri Services Financial Services Foods Agri Services Financial Services Foods 68%

14%

29

Agri Services Retail & Equipment

Business Results
Description R million Total revenue PBIT PBT 6 months to 31 Dec 2011 2 014 85 62 6 months 31 Dec 2010 1 620 54 35 Change 24.3%

2500 2000 2,014 62 1,620 1500 1000

65

60
55 50 45 40

57.4% 77.1%

Profit before interest margin

4.2%

3.3%

27.3%

500
0 2011 2010
PBT (R'm)

35

35 30

Description R million

6 months to 31 Dec 2011

6 months 31 Dec 2010

Change

Revenue (R'm)

Analysis of PBT
Normalised Sale of assets Total 44 18 62 35 0 35 25.7% 77.1%

30

Agri Services Retail & Equipment

Description R million Revenue Retail (Continuing**) Revenue Mechanisation Revenue Primary Inputs Revenue Other services Revenue Australia Total revenue PBT Retail PBT Mechanisation PBT Primary Inputs PBT Other services PBT Australia Total profit before taxation* Net Profit Retail Net Profit Mechanisation 6 months to 31 Dec 2011 523 627 123 518 223 2 014 16 23 1 24 (2) 62 3.1% 3.7% % Contribution 26% 31% 6% 26% 11% 100% 26% 37% 2% 39% (4)% 100% 6 months to 31 Dec 2010 391 457 164 416 192 1 620 10 15 3 12 (5) 35 2.6% 3.3% % Contribution 24% 28% 10% 26% 12% 100% 29% 43% 9% 34% (15)% 100%

Net Profit Primary Inputs

Net Profit Other services Net Profit Australia Net profit margin

0.8%
4.6% (0.9)% 3.1%

1.8%
2.9% (2.6)% 2.2%

31

* Other operating income (including capital profits), other services and Africa

Agri Services Grain Management

Business Results
Description R million Total revenue PBIT PBT 6 months to 31 Dec 2011 252 124 106 6 months to 31 Dec 2010 287 142 132 Change (12.2)% (12.7)% (19.7)%

290 280 106 270 260 252

287 132

140

120
100 80 60 40 20 0 2011
Revenue (R'm)

Total tonnage received (million) Opening stock (million) Average storage period (months)

2.3 1.3 3.3

2.6 1.9 3.8

(11.5)% (31.6)% (13.2)%

250 240
230 2010
PBT (R'm)

Notes
Low opening stock Impact of volumes and storage period on HEPS (R48 million) Offset by: - Handling out - Trading - Grain sales

32

Financial Services
Business Results
Description R million Total revenue PBIT PBT 6 months to 31 Dec 2011 201 109 35 6 months to 31 Dec 2010 214 125 32 Change (6.1)% (12.8)% 9.4%

215 35 210 205 201 200

214

Loan book margin

2.7%

2.6%

3.8%

32

195
190 2011
Revenue (R'm)

35.5 35 34.5 34 33.5 33 32.5 32 31.5 31 30.5

2010
PBT (R'm)

Notes
Sale of debtors book Cash collateral deposit releases Fee income improved Good capital profits Reduction in OPEX

33

Net interest calculation

Description R million Finance cost: continuing Interest related to debtors finance Other interest paid: continuing Other interest paid: discontinued 6 months to 31 Dec 2011 (201) 110 (91) 6 months to 31 Dec 2010 (205) 105 (100) (2)

Other interest paid

Dividend income* Interest received: Guarantee deposit* Interest received: Other** Net interest

(91)
3 3 12 (73)

(102)
3 13 12 (74)

Interest effect of consolidation

Interest: Other guarantee deposits** Net interest and dividends

39
3 (31)

40
4 (30)

34

* - Included in other operating income

** - Included in other operating expenses

Impact of debtors book sale

31 Dec 2010 Description R million Debt Actuals Before 4 036

31 Dec 2011 Actuals After 3 209

Equity
Debt: Equity ratio

1 598
2.53 30 Jun 2011

1 739
1.85 30 Jun 2011 30 Jun 2011 30 Jun 2011

Farmer lending included

Description R million Debt Equity Debt: Equity ratio Actual 4 539 1 575 2.88

Farmer lending excluded

Pro-forma After 2 662 1 575 1.69

Corporate lending excluded

Pro-forma After 2 062 1 575 1.31

BEE structure completed

Pro-forma After 1 362 2 275 0.60

Before = Before sale of farming lending book After = After sale of farming lending book

35

Animal Protein
Business Results
Description R million Total revenue PBIT PBT 6 months to 31 Dec 2011 1 780 67 33 6 months to 31 Dec 2010 1 390 120 83 Change 28.1% (44.2)% (60.2)%

2000 1800 1600 1400 1200 1000 800 600 400 200 0

1,780 1,390

90 83 80 70 60 50 40

33

30
20 10 0 2011
Revenue (R'm)

2010
PBT (R'm)

Notes
Animal Feeds
Lower margins

Broilers
Higher feed costs Lower NSV High cost per unit

36

Oil, Milling and Protein

Business Results
Description R million Total revenue PBIT PBT 6 months to 31 Dec 2011 379 20 11 6 months to 31 Dec 2010 264 22 19 Change 43.6% (9.1)% (42.1)%

400 350 300 250 200 150 100 50 0 11

379

19 264

20 18 16 14 12 10 8 6 4 2 0

2011
Revenue (R'm)

2010
PBT (R'm)

Notes
Lower volumes Reduced margins Offset by lower OPEX

37

Balance sheet - assets

Description R million Assets Non-current assets Property, plant and equipment 2 718 1 845 248 256 2 196 1 512 37 286 23.8% 22.0% 570.3% (10.5)% 6 Months to Dec 2011 6 Months to Dec 2010 Change %

Goodwill
Other intangible assets Investments in associates Available-for-sale financial assets Financial receivables Deferred income tax assets Current assets Inventories Biological assets Trade and other receivables Trade receivables financed by banks Derivative financial instruments Current income tax assets Cash and cash equivalents and cash collateral deposits Assets of disposal groups classified as held-for-sale Total assets

48
41 164 116 4 310 1 227 47 630 1 895 44 22 445 7 7 035

36
42 161 122 5 656 934 64 509 3 290 64 2 793 17 7 869

33.3%
(2.4)% 1.9% (4.9)% (23.8)% 31.4% (26.6)% 23.8% (42.4)% (31.3)% 1 000% (43.9)% (58.8)% (10.6)%

38

Balance sheet - liabilities

Description R million Equity - Capital & reserves attributable to equity holders Treasury shares Incentive trust shares Fair value and other reserves 6 Months to Dec 2011 1 734 (86) (130) (22) 1 972 5 6 Months to Dec 2010 1 592 (90) (151) (63) 1 896 6 Change % 8.9% 4.4% 13.9% 65.1% 4.0% (16.7)%

Retained earnings
Non-controlling interest Total equity Liabilities - Non-current liabilities Borrowings Deferred income tax liabilities Provisions for other liabilities and charges Liabilities - Current liabilities Trade and other payables Derivative financial instruments Current income tax liabilities

1 739
770 572 183 15 4 526 1 393 44 7 1 187 1 895

1 598
1 016 832 184 5 255 1 164 79 15 674 3 323

8.8%
(24.2)% (31.3)% (0.5)% (13.9)% 19.7% (44.3)% (53.3)% 76.1% (43.0)%

Call loans and bank overdrafts

Bank borrowings to finance trade receivables Total liabilities Total equities and liabilities

5 296
7 035

6 271
7 869

(15.5)%
(10.6)%

39

Cash flow statement

31 Dec 2011
Rmillion

31 Dec 2010
Rmillion 279

259

Cash generated from ops

-340

Working capital utilised

-554

-27

Taxation

-12

-282

Investments made

-122

287

Finance activities -600 -400

-139 -200 200 400

-400

-200

200

400

(103)
(93) 1 528 (2) 1 330

Net movement in overdraft Movement in guarantee deposits Movement in debt to finance debtors Movement in borrowings (incl short term) Movement in net debt

(548)
(23) 572 (554) (553)

40

Group capex and activities

Description R million Agri Services Financial Services 6 Months to 31 Dec 2011 48 57 6 111

Foods
Corporate Total

41

Prospects
Chris Venter

AFGRI DNA

Production

Grain Management

Industrial Processing

Grain value chain will always remain embedded in the AFGRI DNA

43

AFGRI DNA with value added services

Retail Mechani -sation LabWorld

GroCap Tobacco

Production

Grain Management

Industrial Processing

Insurance

Farmer Lending Partrite

44

Value added services

Retail
Mechani -sation LabWorld

Tobacco

Focus on service delivery and financial returns (RONA and ROE)

GroCap

Insurance Partrite

Farmer Lending

45

Investment case
Vision
To be the leading agricultural services and food company If correct calibre is not in place replace Brand equity Sustainable Food security

People

Outstanding knowledge on agricultural market place

Strategic operations being strengthened

Assets

AFGRI main asset group has an average RONA of 30% + Strengthening exercise remains focus

Strategic assets with good market share

Liquidity

Balance sheet restructured

Debt:equity ratio improved to 1.69

AFGRI will continue to strive for a balance of growth through capex spend, acquisition and other organic growth

46

Investment case
Key: Group Agri Services Financial Services Foods Daybreak abattoir extensions completed Focus on efficiencies in Poultry Establish additional bunker and collateral management sites Strong operations and board members appointed to assist in Foods strategy development Benefits across GP, parent, broiler and abattoir operations will improve Nedan expansion completed with intention of doubling capacity Increased capacity for DOC and slaughter birds Daybreak and Delmas abattoir production to increase Continue to expand Grain Management footprint across Africa

Expansion of Milling

Consolidation of ongoing operations

Benefit of Africa

Purchase of Rossgro and Pride Milling to bolster Foods division Successful restructure of balance sheet

Disposal and closure of non-core, unprofitable divisions

Benefit of new Financial Services structure fee income Focus on increased ROE and value added services

Implemented new SAP system - extraction of value continues with the benefit of the procurement initiative

2009 - 2010

2011

2012

2013

2014 onwards

47

Prospects
Price expectation

Current external environment Price expected to remain strong Margin pressure on Poultry will remain Expect good crop in AFGRI area

White maize Yellow maize Wheat Sunflower Soya beans

R1,800 R2,600 R1,800 R2,600 R2,700 R3,100 R4,100 R4,700 R3,100 R3,600

Focus areas for the period ahead Counter empty silos

Financial services will continue to grow

Poultry expansion and efficiencies Sale of corporate debtors book

Potential to take BEE funding off balance sheet

48

Thank you for your attendance and participation www.afgri.co.za

For any further Investor Relations questions please contact: Chris Venter (CEO) 011 063 2001 Vanessa Rech (Keyter Rech Investor Solutions) 011 447 8656

Appendix

Loan book: margin calculation

Description R million Total interest received Total interest received Interest on cash guarantees Total interest paid Total interest paid Other interest (paid) / received Net interest 6 Months to Dec 2011 154 151 3 (115) (110) (5) 39 6 Months to Dec 2010 161 151 10 (110) (105) (5) 51 Change (4.3)% (70.0)% 4.5% 4.7% (23.5)%

Average debtors balances

2 886

3 965

(27.2)%

Loan book margin

2.7%

2.6%

3.8%

51

Debt / cash flow calculation

Description R million Overdraft Cash Net overdraft (excl guarantee deposits) Cash guarantee deposits Net overdraft Short tem debt Debt to finance debtors 6 months ending Dec 2010 Jun 2010 (207) 475 268 422 690 (105) (3 895) (3 310) (173) Dec 2010 (674) 394 (280) 399 119 0 (3 323) (3 204) (832) Movement (467) (81) (548) (23) (571) 105 572 106 (659) 6 months ending Dec 2011 Jun 2011 (951) 258 (693) 147 (546) (10) (3 423) (3 979) (560) Dec 2011 (1 187) 391 (796) 54 (742) 0 (1 895) (2 637) (572) Movement (236) 133 (103) (93) (196) 10 1 528 1 342 (12)

Net short term debt

Long term borrowings Net debt

(3 483)

(4 036)

(553)

(4 539)

(3 209)

1 330

52