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HIGHLIGHTS

30 June 30 June2012 2011US$ US$ % Increase

FinancialRevenue 48,643,254 42,494,426 14%

Operating prot 4,373,269 3,652,115 20%Prot for the period attributable to owners of the parent 3,135,190 2,262,059 39%Net cashows from operating activities 1,078,946 186,440 479%Net assets 43,999,902 38,683,344 14%Net asset value per share (US cents) 12.34 10.93 13%

UNAUDITED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2012The Directors of Dairibord Holdings Limited are pleased to announce the Groups unaudited nancial results for the six-months ended 30 June 2012.

GROUP STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2012

30 June 31 December2012 2011US$ US$

Assets

Non-current assetsProperty, plant and equipment 34,997,830 36,335,816Investment in an associate - 247,909Intangible assets 840,014 833,970Other non-current nancial assets 1,001,868 994,374

36,839,712 38,412,069Current assetsInventories 14,308,131 11,854,387

Trade and other receivables 10,405,052 11,392,711Cash and cash equivalents 632,296 2,254,549

25,345,479 25,501,647Assets classied as held for sale 336,457 611,038

25,681,936 26,112,685

Total assets 62,521,648 64,524,754

Equity and liabilities

EquityCapital reserves 24,375,767 25,133,085Retained earnings 19,086,766 17,519,389Equity attributable to owners of the parent 43,462,533 42,652,474Non controlling interest 537,369 921,911

Total Equity 43,999,902 43,574,385

Non-current liabilitiesInterest - bearing borrowings 2,388,240 1,391,854Deferred tax liability 3,929,895 4,265,852

6,318,135 5,657,706Current liabilities -

Trade and other payables 8,124,635 9,816,214Interest - bearing borrowings 3,600,930 4,337,245Income tax payable 478,046 1,125,801

12,203,611 15,279,260Liabilities directly associated with assets classied as held for sale - 13,403

12,203,611 15,292,663Total liabilities 18,521,746 20,950,369

Total equity and liabilities 62,521,648 64,524,754

ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOMEFOR THE SIX MONTHS ENDED 30 JUNE 2012

30 June 30 June2012 2011US$ US$

Revenue 48,643,254 42,494,426Operating prot 4,373,269 3,652,115Net nance costs (160,354) (209,366)Share of loss of associate - (125,471)Prot before tax 4,212,915 3,317,278Income tax expense (1,068,655) (1,002,068)Prot for the period 3,144,260 2,315,210Other comprehensive income:Other comprehensive income for the period, net of tax (1,186,722) -Total comprehensive income for the period 1,957,538 2,315,210

Prot attributable to :Owners of the parent 3,135,190 2,262,059Non - controlling interest 9,070 53,151

3,144,260 2,315,210

Total comprehensive income attributable to :Owners of the parent 2,323,472 2,262,059Non - controlling interests (365,934) 53,151

1,957,538 2,315,210

Earnings per share (cents)Basic 0.88 0.65Diluted 0.88 0.64

Shares in issue 356,620,858 353,867,858Weighted average shares 356,333,822 350,517,858Weighted average shares adjusted for the effect of dilution 357,284,113 353,897,453

ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED 30 JUNE 2012

Capital Retained Non - controlling Totalreserves earnings interests equity

US$ US$ US$ US$

As at 1 January 2011 24,232,672 10,586,528 1,182,918 36,002,118Prot for the year - 6,932,861 141,255 7,074,116Other comprehensive income (175,315) (80,994) (256,309)Dividend - - (86,589) (86,589)Purchase of interest from minorities 117,784 - (234,679) (116,895)Issue of share capital 749,105 - - 749,105Share-based payment transactions 208,839 - - 208,839

As at 31 December 2011 25,133,085 17,519,389 921,911 43,574,385Prot for the period - 3,135,189 9,070 3,144,259Other comprehensive income (811,718) - (375,004) (1,186,722)Dividend - (1,567,812) (18,608) (1,586,420)Issue of share capital 54,400 - - 54,400

As at 30 June 2012 24,375,767 19,086,766 537,369 43,999,902

SUPPLEMENTARY INFORMATIONFOR THE SIX MONTHS ENDED 30 JUNE 2012

30 June 30 June2012 2011US$ US$

Depreciation charge 1,674,721 1,469,560

Capital expenditure 1,538,655 2,045,980

Capital commitments 7,192,064 4,054,688- Authorised and contracted for 2,095,074 1,803,786- Authorised but not contracted for 5,096,990 2,250,902

Directors: S. P. Bango, Dr L. L Tsumba (Chairman), S. Chindove, *T. Mabika, H. Makuwa, C. Mahembe,*A. S. Mandiwanza (Group Chief Executive),F Mungoni, *M. Ndoro, J. Sachikonye * Executive

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ABRIDGED GROUP STATEMENT OF CASH FLOWSFOR THE SIX MONTHS ENDED 30 JUNE 2012

30 June 30 June2012 2011US$ US$

OPERATING ACTIVITIES:Prot before tax 4,212,915 3,317,278Non-cash items 1,850,258 1,778,799Working capital adjustments (2,965,041) (3,998,507)Finance cost (248,565) (268,497)Income tax paid (1,770,621) (701,764)Net cashows from operating activities 1,078,946 127,309

Investing activities:Acquisition of property, plant and equipment (1,486,476) (2,045,980)Acquisition of intangibles (52,179) -Proceeds from sale of property, plant and equipment 42,985 117,197Proceeds from sale of investment 100,000 -

Additional investment in subsidiary - (116,895)Finance income 88,210 59,131Net cash ows used in investing activities (1,307,460) (1,986,547)

Financing activities:Net proceeds from borrowings 580,065 418,447Proceeds from exercise of share options 54,400 569,500Dividend paid (1,579,158) (86,589)Net cashows from nancing activities (944,693) 901,358

Net decrease in cash and cash equivalents (1,173,207) (957,880)Effects of exchange rate changes (449,480) -Cash and cash equivalents at beginning of the period 2,256,023 1,677,906Cash and cash equivalents at end of of the period 633,336 720,026

NOTES TO THE FINANCIAL STATEMENTS

Basis of preparationThe nancial statements are based on the statutory records that are maintained under the historical cost convention, except for propertythat has been measured at fair value.

Signifcant accounting policiesThe accounting policies adopted are consistent with those of the previous nancial year.

CHAIRMANS STATEMENT

The board is pleased to announce the nancial results for the six months ended 30 June 2012.

Operating environmentIn spite of the relatively stable economic and political environment in Zimbabwe, performance in the period under review was affected by thefollowing:-

Cost and supply of utilities especially water Liquidity in the market impacting on consumer demand and cashows Competition from imports

Increasing costs of key raw materials

Business in Malawi continues to be affected by foreign currency shortages and restrictive retention policies. In May 2012, the Malawi Kwacha(Mk) was devalued by 49% to 250MK: 1US$, exerting pressure on costs. Year on year ination which was at 9.8% at the end of December2011 closed the month of June at 20.1%, eroding the purchasing power of consumers. The new policies pronounced are expected torestore donor condence, economic stability and business viability.

PerformanceGroup revenue for the period was $48.643 million, a 14% increase compared to the same period last year. Revenue growth by productportfolio was 24% for foods, 16% for beverages and 4% for milks.

Sales volume at 32.245 million litres, were 9% above the same period last year. Foods volumes grew by 14%, beverages 14% and 3% formilks. Growth in foods and beverages was driven by increased capacity from signicant investments in the yoghurt, Nutriplus and Cascadeequipment, all commissioned in 2011.

Raw milk intake rose by 5% to 12.889 million litres, with Zimbabwe increasing by 9% and Malawi recording a 7% decrease. The Groups MilkSupply Development Unit continues to work with dairy farmers on strategies to grow raw milk production.

While revenue increased by 14%, the operating prot rose by 20% to $4.373 million. Prot for the period improved by 36% on 2011 protsto $3.144 million.

The exchange losses arising from the devaluation did not have a material impact on the results of the Group. The net impact was a reductionof the balance sheet by $1.187 million which is shown on the statement of comprehensive income.

InvestmentsThe Groups investment in M E Charhons was sold for $1 million to Cairns Foods Limited which exercised its rights in terms of the sharehold-ers agreement. The proceeds from the sale are being recognised on receipt in line with the sale and purchase agreement. No prot on thedisposal of the investment has been recorded in the results.

The Group is still in the process of disposing of Mulanje Peak Foods in Malawi.

OutlookThe 2012 mid-term scal policy review indicates stagnating economic growth and limited purchasing power for consumers. Focus will there-fore be on intensifying marketing efforts, tight cost management, strategic procurement and prudent working capital management.

The board is condent that the group is nancially sound with a strong balance sheet, positive operating cash ows and above inationearnings growth.

DirectorateMr Timothy Chiganze retired from the Board on 28 June 2012 having served the company for 14 years, 7 of which were as Chairman. On

behalf of the board I would like to thank him for his devoted and dedicated service to the company and wish him well for the future.

DividendXXXX

AppreciationI express my gratitude to all the stakeholders of the company for their invaluable and continued support to keep the company growing underthe current operating environment. In particular I would like to extend my appreciation to the board of directors, management and staff fortheir outstanding efforts.

Dr L L TsumbaChairman7 August 2012

www.dairibord.com

7/30/2019 Dairiboard Financial Results

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HIGHLIGHTS30 June 30 June

2012 2011US$ US$ % Increase

FinancialRevenue 48,643,254 42,494,426 14%

Operating prot 4,373,269 3,652,115 20%Prot for the period attributable to owners of the parent 3,135,190 2,262,059 39%Net cashows from operating activities 1,078,946 186,440 479%Net assets 43,999,902 38,683,344 14%Net asset value per share (US cents) 12.34 10.93 13%

Unaudited Financial StatementsFor the Six Months Ended 30 June 2012

The Directors of Dairibord Holdings Limited are pleased to announce theGroups unaudited nancial results for the six-months ended 30 June 2012.

GROUP STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2012

30 June 31 December

2012 2011US$ US$

Assets

Non-current assetsProperty, plant and equipment 34,997,830 36,335,816Investment in an associate - 247,909Intangible assets 840,014 833,970Other non-current nancial assets 1,001,868 994,374

36,839,712 38,412,069Current assetsInventories 14,308,131 11,854,387

Trade and other receivables 10,405,052 11,392,711Cash and cash equivalents 632,296 2,254,549

25,345,479 25,501,647Assets classied as held for sale 336,457 611,038

25,681,936 26,112,685

Total assets 62,521,648 64,524,754

Equity and liabilities

Equity

Capital reserves 24,375,767 25,133,085Retained earnings 19,086,766 17,519,389Equity attributable to owners of the parent 43,462,533 42,652,474Non controlling interest 537,369 921,911Total Equity 43,999,902 43,574,385

Non-current liabilities

Interest - bearing borrowings 2,388,240 1,391,854Deferred tax liability 3,929,895 4,265,852

6,318,135 5,657,706Current liabilities -

Trade and other payables 8,124,635 9,816,214Interest - bearing borrowings 3,600,930 4,337,245Income tax payable 478,046 1,125,801

12,203,611 15,279,260Liabilities directly associated with assets classied as held for sale - 13,403

12,203,611 15,292,663Total liabilities 18,521,746 20,950,369

Total equity and liabilities 62,521,648 64,524,754

ABRIDGED GROUP STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2012 30 June 30 June2012 2011US$ US$

Revenue 48,643,254 42,494,426

Operating prot 4,373,269 3,652,115

Net nance costs (160,354) (209,366)Share of loss of associate - (125,471)Prot before tax 4,212,915 3,317,278

Income tax expense (1,068,655) (1,002,068)Prot for the period 3,144,260 2,315,210

Other comprehensive income:

Other comprehensive income for the period, net of tax (1,186,722) -Total comprehensive income for the period 1,957,538 2,315,210

Prot attributable to :

Owners of the parent 3,135,190 2,262,059Non - controlling interest 9,070 53,151

3,144,260 2,315,210

Total comprehensive income attributable to :Owners of the parent 2,323,472 2,262,059Non - controlling interests (365,934) 53,151

1,957,538 2,315,210

Earnings per share (cents)Basic 0.88 0.65Diluted 0.88 0.64

Shares in issue 356,620,858 353,867,858Weighted average shares 356,333,822 350,517,858Weighted average shares adjusted for the effect of dilution 357,284,113 353,897,453

ABRIDGED GROUP STATEMENT OF CASH FLOWSFOR THE SIX MONTHS ENDED 30 JUNE 2012

30 June 30 June2012 2011US$ US$

OPERATING ACTIVITIES:Prot before tax 4,212,915 3,317,278Non-cash items 1,850,258 1,778,799Working capital adjustments (2,965,041) (3,998,507)Finance cost (248,565) (268,497)Income tax paid (1,770,621) (701,764)Net cashows from operating activities 1,078,946 127,309

Investing activities:

Acquisition of property, plant and equipment (1,486,476) (2,045,980)Acquisition of intangibles (52,179) -Proceeds from sale of property, plant and equipment 42,985 117,197Proceeds from sale of investment 100,000 -

Additional investment in subsidiary - (116,895)Finance income 88,210 59,131Net cash ows used in investing activities (1,307,460) (1,986,547)

Financing activities:Net proceeds from borrowings 580,065 418,447Proceeds from exercise of share options 54,400 569,500Dividend paid (1,579,158) (86,589)Net cashows from nancing activities (944,693) 901,358

Net decrease in cash and cash equivalents (1,173,207) (957,880)Effects of exchange rate changes (449,480) -Cash and cash equivalents at beginning of the period 2,256,023 1,677,906Cash and cash equivalents at end of of the period 633,336 720,026

ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE SIX MONTHS ENDED 30 JUNE 2012

Capital Retained Non - controlling Totalreserves earnings interests equity

US$ US$ US$ US$

As at 1 January 2011 24,232,672 10,586,528 1,182,918 36,002,118

Prot for the year - 6,932,861 141,255 7,074,116Other comprehensive income (175,315) (80,994) (256,309)Dividend - - (86,589) (86,589)Purchase of interest from minorities 117,784 - (234,679) (116,895)Issue of share capital 749,105 - - 749,105Share-based payment transactions 208,839 - - 208,839

As at 31 December 2011 25,133,085 17,519,389 921,911 43,574,385

Prot for the period - 3,135,189 9,070 3,144,259Other comprehensive income (811,718) - (375,004) (1,186,722)Dividend - (1,567,812) (18,608) (1,586,420)Issue of share capital 54,400 - - 54,400

As at 30 June 2012 24,375,767 19,086,766 537,369 43,999,902

SUPPLEMENTARY INFORMATIONFOR THE SIX MONTHS ENDED 30 JUNE 2012

30 June 30 June2012 2011

US$ US$

Depreciation charge 1,674,721 1,469,560

Capital expenditure 1,538,655 2,045,980

Capital commitments 7,192,064 4,054,688

- Authorised and contracted for 2,095,074 1,803,786- Authorised but not contracted for 5,096,990 2,250,902

NOTES TO THE FINANCIAL STATEMENTS

Basis of preparation

The nancial statements are based on the statutory records that are maintained under the historical cost convention, except for propertythat has been measured at fair value.

Signifcant accounting policies

The accounting policies adopted are consistent with those of the previous nancial year.

CHAIRMANS STATEMENT

The board is pleased to announce the nancial results for the six months ended 30 June 2012.

Operating environment

In spite of the relatively stable economic and political environment in Zimbabwe, performance in the period under review was affected by thefollowing:-

Cost and supply of utilities especially water Liquidity in the market impacting on consumer demand and cashows Competition from imports Increasing costs of key raw materials

Business in Malawi continues to be affected by foreign currency shortages and restrictive retention policies. In May 2012, the Malawi Kwacha

(Mk) was devalued by 49% to 250MK: 1US$, exerting pressure on costs. Year on year ination which was at 9.8% at the end of December2011 closed the month of June at 20.1%, eroding the purchasing power of consumers. The new policies pronounced are expected torestore donor condence, economic stability and business viability.

Performance

Group revenue for the period was $48.643 million, a 14% increase compared to the same period last year. Revenue growth by productportfolio was 24% for foods, 16% for beverages and 4% for milks.

Sales volume at 32.245 million litres, were 9% above the same period last year. Foods volumes grew by 14%, beverages 14% and 3% formilks. Growth in foods and beverages was driven by increased capacity from signicant investments in the yoghurt, Nutriplus and Cascadeequipment, all commissioned in 2011.

Raw milk intake rose by 5% to 12.889 million litres, with Zimbabwe increasing by 9% and Malawi recording a 7% decrease. The Groups MilkSupply Development Unit continues to work with dairy farmers on strategies to grow raw milk production.

While revenue increased by 14%, the operating prot rose by 20% to $4.373 million. Prot for the period improved by 36% on 2011 protsto $3.144 million.

The exchange losses arising from the devaluation did not have a material impact on the results of the Group. The net impact was a reductionof the balance sheet by $1.187 million which is shown on the statement of comprehensive income.

Investments

The Groups investment in M E Charhons was sold for $1 million to Cairns Foods Limited which exercised its rights in terms of the sharehold-ers agreement. The proceeds from the sale are being recognised on receipt in line with the sale and purchase agreement. No prot on thedisposal of the investment has been recorded in the results.

The Group is still in the process of disposing of Mulanje Peak Foods in Malawi.

Outlook

The 2012 mid-term scal policy review indicates stagnating economic growth and limited purchasing power for consumers. Focus will there-fore be on intensifying marketing efforts, tight cost management, strategic procurement and prudent working capital management.

The board is condent that the group is nancially sound with a strong balance sheet, positive operating cash ows and above inationearnings growth.

Directorate

Mr Timothy Chiganze retired from the Board on 28 June 2012 having served the company for 14 years, 7 of which were as Chairman. Onbehalf of the board I would like to thank him for his devoted and dedicated service to the company and wish him well for the future.

Dividend

XXXX

Appreciation

I express my gratitude to all the stakeholders of the company for their invaluable and continued support to keep the company growing underthe current operating environment. In particular I would like to extend my appreciation to the board of directors, management and staff fortheir outstanding efforts.

Dr L L Tsumba

Chairman7 August 2012

Directors: S. P. Bango, Dr L. L Tsumba (Chairman), S. Chindove, *T. Mabika, H. Makuwa, C. Mahembe,*A. S. Mandiwanza (Group Chief Executive), F Mungoni, *M. Ndoro, J. Sachikonye * Executive

VP12450