30 Sep 2011

APK/APKP - Astrapak Limited - Unaudited results for the six months ended 31 30 Sep 2011APK APKPAPKAPK/APKP - Astrapak Limited - Unaudited results for the six months ended 31August 2011Astrapak Limited(Incorporated in the Republic of South Africa)(Registration number 1995/009169/06)Share code: APKISIN: ZAE000096962Share code: APKPISIN: ZAE000087201("Astrapak" or "the Group")UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2011CommentaryOverviewThe consumer economy remains under pressure and demand has softened in anumber of markets served by Astrapak ("the Group"). Faced with thesechallenges customers have continued to exert pressure on pricing andcompetition among converters has been fierce.The Group was also negatively impacted by industry wide strikes during July2011. This was followed by industrial action at a number of the Group`s majorcustomers during July and August that resulted in limited or no deliveries tothese customers. The industrial action impacted 80% of the Group`s operationsand lasted approximately 10 working days, resulting in lower than anticipatedrevenues and profits during this period.On a more positive note, the end of the reporting period saw the arrival of anumber of the capital items that form part of the Flexible investmentproject. At the date of reporting, commissioning of these items was wellunder way at numerous businesses and testing and trialling is at an advancedstage. The remaining capital items are expected to be received andcommissioned by the end of November 2011. We remain confident that theseinvestments will improve the prospects for the Flexible Division and theGroup as a whole into the future.In addition, a number of growth projects, which were previously delayed dueto both internal and external factors, have now commenced and a positiveimpact should be expected during the second half of the financial year.Financial resultsFor the period ended 31 August 2011, reported turnover, at R1,30 billion(2010: R1,35 billion), decreased by 3,6% against the comparative period. Thedecrease in turnover was mainly as a result of a 5,5% decline in volumes,which can largely be attributed to the industrial action during the month ofJuly 2011.The financial results continue to reflect the increased cost of operations,primarily related to energy, labour and distributioncosts. Astrapak has placed increased emphasis on managing and removing costsas input price increases are difficult to pass on in this competitive market.The resulting gross profit decreased by 4,1% to R254,7 million (2010: R265,5million). Costs associated with selling, administration and distributionoverheads totalled R185,5 million (2010: R199,6 million) representing adecrease of 7,1% over the comparative period. This reduction is largely aresult of a concerted effort by management to reduce costs in light of topline pressures, but also reflects some lower costs associated with lostrevenues during the industrial action.The Group benefitted from further improvements to net interest paid, whichreduced by 11,2% to R13,4 million (2010: R15,1 million).This was achieved despite subdued operational performance, increased capitalinvestment and difficult working capital conditions.Taxation amounted to R18,6 million (2010: R17,6 million) and includes thepayment of Secondary Taxation on Companies ("STC") of R2,3 million. Theeffective tax rate was 32,0% (2010: 31,6%) or approximately 28% aftercorrecting for STC.HEPS from continuing operations increased by 3,4% to 24,4 cents (2010: 23,6cents), while fully diluted HEPS from continuing operations increased by 3,9%to 24,0 cents (2010: 23,1 cents).Capital expenditure incurred was R110,5 million (2010: R129,7 million) andincluded investments in the Flexible Division as well as a number of growthprojects. The benefits of both will be seen towards the end of the current

financial year once the items of plant have been delivered and commissioned.Gearing, measured by net interest-bearing debt to equity, decreased from40,2% in the prior year to 39,1%, while net debt increased to R406,0 million(2010: R383,5 million). Management will continue to focus on cash generationand prudent capital allocation as well as improved treasury and workingcapital management.Working capital management has been complicated by polymer supply issues andcustomers continuing to extend payment terms. The investment in net workingcapital increased by 7,6% to R351,3 million from R326,4 million at the end ofFebruary 2011. This represents a 49,3 day net working capital cycle comparedto 41,5 days at the end of February 2011. The target for the Group remains 37days despite the more difficult trading conditions and various strategieshave been implemented to reduce actual working capital days to moreacceptable levels.Changes to the Board of DirectorsNo changes to the Board occurred during the reported period.Subsequent eventsThere have been no material subsequent events and no material change in theGroup`s contingent liabilities since the 31st ofAugust 2011.ProspectsThe Group expects that the challenging market conditions will remain over thenext six months. As such, management will continue to drive the strategicobjectives with an immediate focus on extracting value from the investmentsin the Flexible Division and improving returns on the Group`s asset base.AcknowledgementsThe Board would like to express its appreciation to all its stakeholders fortheir commitment, efforts and support during the past financial year.For and on behalf of the BoardMarco BaglioneM Diedloff(Chief Executive Officer) (Chief Financial Officer)Denver30 September 2011Condensed consolidated statement of comprehensive incomeAuditedUnaudited Unaudited financialsix months six months yearended ended ended% 31 August 31 August 28 February(R`000) Notes change 2011 2010 2011CONTINUINGOPERATIONSRevenue 8 (3,6) 1 300 437 1 349 220 2 705 377Cost of sales (1 045 756) (1 083 769) (2 129 876)Gross profit (4,1) 254 681 265 451 575 501Distribution (99 831) (102 021) (205 687)and sellingcostsAdministrative (85 683) (97 555) (177 990)and otherexpensesOther items of 2 298 4 891 (1 527)income andexpenditureProfit from 9 1,0 71 465 70 766 190 297operationsInvestment 3 837 4 551 24 531incomeFinance costs (17 216) (19 610) (56 306)Profit before 4,3 58 086 55 707 158 522taxationTaxation (18 603) (17 583) (49 080)Profit for the 3,6 39 483 38 124 109 442period fromcontinuingoperationsDISCONTINUEDOPERATIONS

Profit for the 10 (100,0) - 211 360period fromdiscontinuedoperationsTotal 3,0 39 483 38 335 109 802comprehensiveincome for theperiodAttributableto:Ordinary 1,0 29 134 28 854 88 340shareholdersof the parent- Profit for 29 134 28 643 87 980the periodfromcontinuingoperations- Profit for - 211 360the periodfromdiscontinuedoperationsPreferenceshareholdersof the parent 5 444 6 096 11 527Non- 4 905 3 385 9 935controllinginterestTotal 3,0 39 483 38 335 109 802comprehensiveincome for theperiodEarnings per 11 0,4 24,2 24,1 73,7ordinary share(cents)- continuing 1,3 24,2 23,9 73,4operations- (100,0) - 0,2 0,3discontinuedoperationsFully diluted 11 0,8 23,8 23,6 71,9earnings perordinary share(cents)- continuing 1,7 23,8 23,4 71,6operations- (100,0) - 0,2 0,3discontinuedoperationsPreference 5 444 6 096 11 527dividend paidand accruedPreference 362,90 406,40 768,50dividend perpreferenceshare (cents)Reconciliation of headline earningsAuditedUnaudited Unaudited financialsix months six months yearended ended ended% 31 August 31 August 28 February(R`000) Notes change 2011 2010 2011Profit for the 1,0 29 134 28 854 88 340periodcontributableto ordinary

shareholders- continuing 29 134 28 643 87 980operations- discontinued - 211 360operationsHeadlineearningsadjustments- IAS 39: Losson exercise ofoptions 20 - 190- IAS 27: - - (27)Profit ondisposal ofsubsidiary- IAS 16:Loss/(profit)on disposal ofproperty,plant andequipment 420 (411) (98)- Total tax (116) 47 28effect ofadjustments- Total non- (52) 14 61controllinginterest shareof adjustmentsHeadlineearningsattributableto ordinaryshareholders 3,2 29 406 28 504 88 494- continuing 3,9 29 406 28 293 88 134operations- discontinued (100,0) - 211 360operationsHeadline 11 2,5 24,4 23,8 73,8earnings perordinary share(cents)- continuing 3,4 24,4 23,6 73,5operations- discontinued (100,0) - 0,2 0,3operationsFully dilutedheadlineearnings perordinary share(cents) 11 3,0 24,0 23,3 72,0- continuing 3,9 24,0 23,1 71,7operations- discontinued (100,0) - 0,2 0,3operationsCondensed consolidated statement of financial positionAuditedUnaudited Unaudited financialsix months six months yearended ended ended% 31 August 31 August 28 February(R`000) Notes change 2011 2010 2011AssetsNon-current 4,5 1 301 316 1 244 887 1 262 666assetsProperty, 2 1 089 905 1 033 159 1 053 330plant andequipmentDeferred 16 696 18 907 17 144

taxationGoodwill and 149 700 149 700 149 700trademarksLoans and 3 45 015 43 121 42 492investmentsCurrent assets 6,3 856 272 805 638 885 654Inventories 4 294 720 262 027 290 003Trade and 511 113 479 882 511 007otherreceivablesCash and cash 5 50 439 63 729 84 644equivalentsAssets 6 - - -classified asheld for saleTotal assets 5,2 2 157 588 2 050 525 2 148 320Equity andliabilitiesTotal equity 8,7 1 082 780 996 075 1 080 544Equity 894 651 826 420 898 083attributableto ordinaryshareholdersof the parentPreference 142 590 142 590 142 590share capitaland sharepremiumNon- 45 539 27 065 39 871controllinginterestNon-current (2,2) 444 705 454 822 417 195liabilitiesLong-term 285 423 307 331 257 892interestbearingdebtLong-term 3 261 5 598 1 671financialliabilitiesDeferred 156 021 141 893 157 632taxationCurrent 5,1 630 103 599 628 650 581liabilitiesTrade and 454 532 454 618 474 578other payablesShareholdersfor preferencedividends 4 509 5 096 8 994Short-term 171 062 139 914 167 009interestbearingdebtLiabilities 6 - - -relating toassets heldfor saleTotal equity 5,2 2 157 588 2 050 525 2 148 320andliabilitiesCondensed consolidated statement of changes in equityUnaudited Unaudited Auditedsix six financialmonths months yearended ended ended31 August 31 August 28 February(R`000) Notes 2011 2010 2011Opening balance 1 080 544 991 335 991 335Comprising of:Ordinary share capital 199 502 199 502 199 502

and premiumRetained income 834 278 778 704 778 704Capital reserve 7 16 707 9 832 9 832Non-controlling put (1 671) (20 044) (20 044)optionsTreasury shares (150 733) (152 197) (152 197)Equity attributable to 898 083 815 797 815 797ordinary shareholdersof the parentPreference share 142 590 142 590 142 590capital and premiumNon-controlling 39 871 32 948 32 948interestMovements:Total comprehensive 39 267 38 335 109 802incomeOrdinary dividends (31 863) (35 676) (36 644)paidPreference dividends (5 444) (6 096) (11 527)paidContributions made by 763 189 11 236non-controllinginterestAcquisition of non- - (10 370) (10 370)controlling interestExercise of put - 10 000 10 000options by noncontrollinginterestshareholdersAdjustment of fairvalue of put options (1 590) 4 446 8 373Reduction in treasury 1 603 - 1 655shares due to exerciseof optionsIncentive scheme - - (191)movementsShare-based expense (716) 3 912 6 875for the periodClosing balance 1 082 564 996 075 1 080 544Comprising of:Ordinary share capital 199 502 199 502 199 502and premiumRetained income 831 332 770 969 834 278Capital reserve 7 16 875 13 744 16 707Non-controlling put (3 261) (5 598) (1 671)optionsTreasury shares (150 013) (152 197) (150 733)Equity attributable to 894 435 826 420 898 083ordinary shareholdersof the parentPreference share 142 590 142 590 142 590capital and premiumNon-controlling 45 539 27 065 39 871interestTotal equity 1 082 564 996 075 1 080 544Condensed consolidated statement of cash flowsAuditedUnaudited Unaudited financialsix months six months yearended ended ended% 31 August 31 August 28 February(R`000) Notes change 2011 2010 2011Cash generated (2,5) 138 316 141 816 337 655from operationsIncrease in (17 614) (10 699) (51 938)working capitalNon-cash 420 411 98transactions

Net financing (40 400) (45 316) (73 982)costs andtaxation paidNet cash inflow (6,4) 80 722 86 212 211 833from activitiesbeforedistributions toshareholdersDividend (41 792) (41 957) (44 055)distribution toall shareholdersNet cash inflowfrom operatingactivities (12,0) 38 930 44 254 167 778Capital (110 496) (129 724) (223 146)expenditureNet movement of (1 760) (17 213) (2 546)investments,subsidiaries andnon-controllinginterestsProceeds on the - 4 037 -disposal ofassets held forsaleProceeds on the 6 647 2 892 3 559disposal ofproperty, plantand equipmentNet cash outflow (105 609) (140 008) (222 133)from investingactivitiesNet cash 32 474 19 060 (1 423)inflow/(outflow)from financingactivitiesNet decrease in (34 205) (76 693) (55 778)cash and cashequivalentsNet cash and cash 84 644 140 422 140 422equivalents atthe beginning ofthe periodNet cash and cash 5 (20,9) 50 439 63 729 84 644equivalents atthe end of theperiodCondensed consolidated segmental analysisTotalcontinuing(R`000) Rigids Flexibles operationsRevenue for segment 2011 771 574 632 456 1 404 0302010 754 013 702 370 1 456 383Transactions with other 2011 (62 121) (41 472) (103 593)operating segments of theGroup2010 (54 269) (52 894) (107 163)Revenue for external 2011 709 453 590 984 1 300 437customers2010 699 744 649 476 1 349 220Profit from operations 2011 67 239 4 226 71 465(segment result)2010 63 383 7 383 70 766Total assets 2011 1 179 463 978 125 2 157 5882010 959 635 1 090 890 2 050 525Total liabilities 2011 520 649 554 159 1 074 8082010 349 176 705 274 1 054 450Capex 2011 70 430 40 066 110 496

2010 92 454 37 270 129 724Depreciation 2011 44 961 21 894 66 8552010 46 402 22 013 68 415Condensed consolidated segmental analysis (continued)DiscontinuedTotal(R`000) operations GroupRevenue for segment 2011 - 1 404 0302010 21 338 1 477 721Transactions with other 2011 - (103 593)operating segments of theGroup2010 (3 921) (111 084)Revenue for external 2011 - 1 300 437customers2010 17 417 1 366 637Profit from operations 2011 - 71 465(segment result)2010 211 70 977Total assets 2011 - 2 157 5882010 - 2 050 525Total liabilities 2011 - 1 074 8082010 - 1 054 450Capex 2011 - 110 4962010 - 129 724Depreciation 2011 - 66 8552010 - 68 415Supplementary informationUnaudited Unaudited Auditedsix six financialmonths months yearended ended ended31 August 31 August 28 February2011 2010 2011Number of ordinary shares in 135 131 135 131 135 131issue (`000)Weighted average number of 120 333 119 809 119 928ordinary shares in issue(`000)Fully diluted weighted 122 520 122 312 122 909average number of ordinaryshares in issue (`000)Number of preference shares 1 500 1 500 1 500in issue (`000)Net asset value per share 862 809 868(cents)Net tangible asset value per 737 684 743share (cents)Closing share price (cents) 837 810 890Closing price to net assetvalue per ordinary share 1,0 1,0 1,0Closing price to net tangible 1,1 1,2 1,2asset value per ordinaryshareMarket capitalisation (R 1 131,1 1 094,6 1 202,7million)Net interest-bearing debt as 39 40 33a percentage of equity (%)Net debt 406 046 383 516 340 257Long-term interest-bearing 285 423 307 331 257 892debtShort-term interest-bearing 171 062 139 914 167 009debtCash resources (50 439) (63 729) (84 644)Interest cover 5,2 4,7 6,0Net working capital days 49,3 37,9 41,5Contingent liabilities 6 564 4 646 8 077Number of employees 4 484 4 052 4 450

- continuing operations 4 484 3 988 4 450- discontinued operations - 64 -Earnings before interest, 138 320 138 664 331 118taxation, depreciation andamortisation ("EBITDA") -continuing operationsEarnings before interest, 138 320 139 180 331 783taxation, depreciation andamortisation ("EBITDA") -total groupEarnings before interest, - (516) 665taxation, depreciation andamortisation ("EBITDA") -discontinued operationsAbbreviated notes for the six months ended 31 August 20111. Basis of preparation and accounting policiesThese condensed consolidated results for the six months ended 31 August 2011are prepared in accordance with recognition and measurement requirements ofInternational Financial Reporting Standards ("IFRS"), the AC 500 standards asissued by the Accounting Practices Board and the information as required byIAS 34: Interim Financial Reporting and the Companies Act, Act No.71 of 2008of South Africa. These results have been prepared under the supervision ofthe Chief Financial Officer, M Diedloff.The principal accounting policies and methods of computation adopted areconsistent with those applied for the year ended 28 February 2011.Unaudited Unaudited Unauditedsix six financialmonths months yearended ended ended31 August 31 August 28 February(R`000) 2011 2010 20112. Property, plant andequipmentOpening net carrying amount 1 053 330 974 331 974 331Additions 110 496 129 724 223 144Disposals (7 067) (2 481) (3 461)Depreciation (66 855) (68 415) (140 684)Closing net carrying amount 1 089 905 1 033 159 1 053 330Capital expenditure for the 125 254 129 724 223 144periodCapital commitments- contracted not spent 46 525 40 129 92 060- authorised not contracted 6 132 8 790 22 921The Group`s propertyportfolio has a carryingvalue of R141 million and acurrent market value of R270million. These properties areof strategic value to theGroup due to their locations.3. Loans and investmentsInvestment in Really Useful - 2 934 -Investments (Pty) LtdVendor loan to Afripack 45 003 40 175 42 480Consumer Flexibles (Pty) Ltdin terms of Flexiblesdisposal transactionUnlisted investments 12 12 12Loans and investments at end 45 015 43 121 42 492of the period4. InventoriesInventories amounting toR1404 011 (Feb 2011: R1 604652) are carried at netrealisable value.5. Cash and cash equivalentsCash and cash equivalents 120 279 126 146 102 898Bank overdrafts (69 840) (62 417) (18 254)

Net cash and cash equivalents 50 439 63 729 84 644at the end of the year6. Assets held for sale andliabilities relating toassets held for saleThe sale of InternationalTube Technology (Pty) Limitedand International EdgeboardTechnology (Pty) Limited wasconcluded in the prior yearon the 23 July 2010.Assets held for sale/soldconsists of the following:Opening balance as at 1 March - 11 381 11 381Assets of ITT disposal group - (11 381) (11 381)disposed (effective date oftransaction 23 July 2010)Assets held for sale at the - - -end of the periodLiabilities relating toassets held for sale/soldconsists of the following:Opening balance as at 1 March - 8 076 8 076Liabilities relating to - (8 076) (8 076)disposal group classified toheld for saleLiabilities relating to - - -assets held for sale at theend of the period7. Capital reserveThe capital reserve relatesto employee share optionsvalued using the BlackScholes method and the cashfinanced stock plan.8. RevenueRevenue for the Group 1 404 030 1 456 383 2 955 483Transactions with other (103 593) (107 163) (250 106)entities within the GroupRevenue for external 1 300 437 1 349 220 2 705 377customersVolume (in `000 tons) 44 513 47 105 99 3669. Profit from operationsProfit from operations arearrived at after taking thefollowing into account:Net loss/(profit) on disposal 420 (411) (98)of property, plant andequipmentDepreciation 66 855 68 415 140 684Net loss on exercise of share 20 - 190options10. Loss for the period fromdiscontinued operationsThe Group disposed ofInternational Tube Technology(Pty) Limited andInternational EdgeboardTechnology (Pty) Limited inthe prior year.The results of discontinuedoperations is thereforerepresented by the tradingresultsof these entities for theperiod being reported upon,the loss realised upon thedisposal of the disposal

group and any lossesrecognised on theremeasurement of assets heldfor sale.Revenue - 17 417 17 417Expenses - (17 206) (17 057)Profit before taxation from - 211 360discontinuing operationsTaxation - - -Profit for the period from - 211 360discontinued operationsThe net cash flows incurredby discontinued operationsfor the period arerepresented below:Operating cash outflows - (3 842) (3 842)Investing cash inflows - 397 397Financing cash inflows - 1 082 1 082Net decrease in cash and cash - (2 363) (2 363)equivalents from discontinuedoperations11. Earnings per ordinary share and headline earnings per ordinary share -basic and fully dilutedEarnings per ordinary share is calculated by dividing the profit attributableto ordinary shareholders of the parent by the weighted average number ofshares in issue over the period that the attributable profit was generated.Headline earnings per ordinary share is calculated by dividing the headlineearnings attributable to ordinary shareholders of the parent by the weightedaverage number of shares in issue over the period that the headline earningswas generated.Fully diluted earnings and headline earnings per ordinary share is determinedby adjusting the weighted average number of shares in issue over the periodto assume conversion of all dilutive ordinary shares, being shares issued interms of the share incentive trust and the cash financed stock plan.12. Subsequent eventsNo fact or circumstance material to the appreciation of this report hasoccurred between 31 August 2011 and the date of this report.Board of Directors: P Langeni* (Chair), M Baglione (Chief Executive Officer),M Diedloff (Chief Financial Officer), P C Botha*, D C Noko*, K P Shongwe*, GZ Steffens**Non-executiveCompany Secretary: X VabazaRegistered Office: 5 Kruger Street, Denver, 2011. PO Box 75769, Gardenview,2047, South Africa. Tel +27 11 615 8011 Fax +27 11 615 9790Sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)Registrar: Computershare Investor Services (Pty) Ltd. Ground Floor, 70Marshall Street, Johannesburg, 2001. PO Box 61051, Marshalltown, 2107Operating entitiesFlexibles Division: Alex White, Barrier Film Converters, City Packaging, EastRand Plastics, Knilam Packaging, Packaging Consultants, Peninsula Packaging,Plusnet/Geotex, Saflite, Tristar Plastics, UltrapakRigids Division: Cinqpet, Consupaq, Hilfort, JJ Precision Plastics, MarcomPlastics, PAK 2000, Plastech, Plastform, Plastop, Plastop (KwaZulu-Natal),Thermopac, Weener - Plastopwww.astrapak.co.zaDate: 30/09/2011 13:51:03 Produced by the JSE SENS Department.The SENS service is an information dissemination service administered by theJSE Limited (`JSE`). The JSE does not, whether expressly, tacitly orimplicitly, represent, warrant or in any way guarantee the truth, accuracy orcompleteness of the information published on SENS. The JSE, their officers,employees and agents accept no liability for (or in respect of) any direct,indirect, incidental or consequential loss or damage of any kind or nature,howsoever arising, from the use of SENS or the use of, or reliance on,information disseminated through SENS.