Commentary on resultsProfileCountry Bird Holdings Limited (CBH) is a focused African poultry group comprising:– integrated poultry and stock feed operations in South Africa trading as Supreme Poultry and Nutri Feeds;– poultry breeding, broiler and stock feed operations in the southern African region trading as Ross Africa and

Master Farmer; and– South African retail and distribution operations trading as Long Iron Meats, Supreme Distributors and Ama

Chick Chick.

CBH currently operates in Botswana, the DRC, Malawi, Mozambique, Namibia, South Africa, Zambia and Zimbabwe.

Financial reviewGroup revenue for the year increased to R3,2 billion (2012: R3,1 billion) and operating profit of R132,6 million was 11% lower than the R149,5 million achieved for the prior year; this sustained level of profitability was primarily as a result of excellent performances by the other African poultry and feed businesses, and the South African feed operation despite losses being incurred in the South African poultry division.

Operating profit of R64,6 million in the other African businesses is an increase of 125% over last year’s figure of R28,8 million and represents 49% of the group’s operating profit for the year.

Expeditious procurement and hedging of raw materials, as well as tight operational controls resulted in the South African feed operation reporting an operating profit of R98,1 million, 62% higher than the previous year’s comparative of R60,6 million.

With finance costs only reducing marginally by 1% to R60,2 million PBIT of R73,3 million was 18% lower than last year’s figure of R88,7 million. The attributable tax rate of 21%, being positively affected by the lower tax rates applicable in the other African operations resulted in a 5% reduction in profit after tax to R58,1 million (2012: R61,1 million).

Operational reviewGroup The group recorded a credible set of results, despite the considerable problems facing the poultry industry in South Africa. The performance from the operations outside of South Africa has been the best since the formation of the group. The rewards for early recognition and subsequent investment in selected countries in the SADC region are becoming apparent and these operations together with other selected regional opportunities will continue to be a key component of the group’s strategy going forward. As a result of difficult trading conditions in South Africa and substantial increases in raw material prices, the working capital requirements and consequent interest charges were high. Despite this the group was able to show an overall positive increase in cash and cash equivalents for the year of R38,7 million (2012: decrease of R35,1 million).

COUNTRY BIRD HOLDINGS LIMITED

Country Bird Holdings Limited (Incorporated in the Republic of South Africa) Registration number: 2005/008505/06 ISIN: ZAE000094835 JSE Share code: CBH (“CBH” or “the group”)Directors of CBH Limited: BH Kent (Chairman)#, R Gibbison#, GP Heath, IWM Isdale#, KW James, MP Stander, CD Stein# #Independent non-executive Registered of� ce: 8 Melville Road, Illovo, Johannesburg, 2196 (PO Box 412523, Craighall, 2024) Attorneys: Fluxmans Inc, 11 Biermann Avenue, Rosebank, Johannesburg, 2196 (Private Bag X41, Saxonwold, 2132)Investment Bank and Sponsor: Investec Bank Limited, (Registration number 1969/004763/06)2nd Floor, 100 Grayston Drive, Sandton, 2196 (PO Box 785700, Sandton, 2146) Company secretary: MJC Antunes, 48 President Steyn Street, Westdene, Bloemfontein, 9301(PO Box 6851, Bloemfontein, 9300)Auditors: PricewaterhouseCoopers Inc. 61 Second Avenue, Westdene, Bloemfontein, 9301 (PO Box 818, Bloemfontein, 9300) Transfer secretaries: Computershare Investor Services (Proprietary) Limited, (Registration number 2004/003647/07) Ground Floor, 70 Marshall Street Johannesburg, 2001 (PO Box 61051 Marshalltown, 2107)

Group operating pro� t

down 11% Other Africa operating pro� t

up 125% contributing 49% of group operating pro� t

HEPS

up 2%EPS

down 17%Positive cash generation

R38,7 million

AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2013

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Audited condensed consolidated statement of comprehensive income30 June

2013Audited

R’000%

change

30 June 2012

AuditedR’000

Revenue 3 236 576 5 3 094 519

Operating profit 132 597 (11) 149 469 Finance income 921 95 472 Finance costs (60 204) (1) (61 075)

Profit before income tax 73 314 (18) 88 866 Income tax expense (15 179) (45) (27 803)

Profit for the year 58 135 (5) 61 063 Other comprehensive income:Currency translation differences 24 602 144 10 064

Total comprehensive income for the year 82 737 16 71 127

Profit attributable to:Owners of the parent 51 396 (14) 60 010 Non-controlling interest 6 739 540 1 053

58 135 (5) 61 063

Total comprehensive income attributable to:Owners of the parent 75 998 8 70 074 Non-controlling interest 6 739 540 1 053

82 737 16 71 127

Earnings per share (cents):– basic 25,63 (17) 30,79 – diluted 25,63 (17) 30,79

Additional information to condensed consolidated financial statementsOrdinary shares– issued net of treasury shares 202 443 918 198 372 313 – weighted average number of ordinary shares 200 524 282 194 931 980 – diluted number of ordinary shares 200 524 282 194 931 980

Headline earnings per ordinary share (cents):– basic 25,51 2 24,93 – diluted 25,51 2 24,93

Dividend/capital distribution per share – interim (cents) – (100) 5,98Capital distribution per share – final (cents) – (100) 2,33Net asset value per share 314,67 11 282,75Tangible asset value per share 261,43 14 229,83Gearing ratio (net of cash and cash equivalents) 1,80 4 1,72

Audited condensed consolidated statement of financial positionAs at

30 June 2013

AuditedR’000

% change

As at30 June

2012Audited

R’000

ASSETS

Non-current assets 623 940 12 559 295

Property, plant and equipment 499 542 12 445 235

Intangible assets 106 757 3 103 160

Financial assets and other investments 931 43 653

Deferred income tax assets 16 710 63 10 247

Current assets 1 331 595 22 1 092 350

Inventories 367 986 31 280 373

Biological assets 214 585 25 171 330

Trade and other receivables 553 045 15 481 015

Derivative financial instruments 3 355 (58) 7 999

Current income tax receivable 1 023 118 469

Cash and cash equivalents 191 601 27 151 164

Total assets 1 955 535 18 1 651 645

EQUITY

Total equity 630 994 14 551 178

Ordinary shares 2 024 2 1 984

Share premium 761 103 2 745 508

Other reserves 36 880 20 30 834

Retained earnings 622 955 9 571 559

Common control deficit (832 110) 0 (832 110)

Equity attributable to the owners of the parent 590 852 14 517 775

Non-controlling interest 40 142 20 33 403

LIABILITIES

Non-current liabilities 283 280 (17) 340 566

Borrowings 179 499 (25) 240 091

Employee share scheme liability 1 752 (21) 2 223

Deferred income tax liabilities 102 029 4 98 252

Current liabilities 1 041 261 37 759 901

Trade and other payables 744 360 43 520 038

Current income tax liabilities 4 403 93 2 284

Borrowings 292 448 24 235 070

Provision for other liabilities and charges 50 (98) 2 509

Total liabilities 1 324 541 20 1 100 467

Total equity and liabilities 1 955 535 18 1 651 645

Audited condensed consolidated statement of cash flows30 June

2013Audited

R’000

30 June 2012

AuditedR’000

Cash flows from operating activitiesNet cash generated from operating activities 127 492 9 082

Cash receipts from customers 3 164 542 3 012 083 Cash paid to suppliers and employees (2 959 035) (2 928 646)

Cash generated from operations 205 507 83 437 Interest paid (60 204) (61 075)Income tax paid (17 811) (13 280)Cash flows from investing activitiesNet cash used in investing activities (76 844) (27 712)

Purchases of property, plant and equipment (82 154) (47 684)Proceeds from sale of property, plant and equipment 4 667 2 960 Acquisition of subsidiaries, net of cash acquired – 5 047 Realisation of financial assets and investments – 11 493Purchases of financial assets and investments (278) –Interest received 921 472

Cash flows from financing activities

Net cash used in financing activities (11 938) (16 518)

Proceeds from the issuance of ordinary shares – 8 100 Share issue and listing expenses (6) –Proceeds from borrowings 107 776 318 496 Repayments of borrowings (114 991) (309 840)Capital repayments to shareholders (4 717) (33 274)

Net increase/(decrease) in cash and cash equivalents 38 710 (35 148)Cash and cash equivalents at beginning of year (15 591) 16 299 Exchange gains on cash and bank overdrafts (2 274) 3 258

Cash and cash equivalents at end of year 20 845 (15 591)

Audited condensed consolidated statement of changes in equity

Share capital R’000

Share premium

R’000

Other reserves

R’000

Retained earnings

R’000

Common control deficit R’000

Total attribu-table toowners

of the parent R’000

Non-con-

trollinginterest

R’000

Total equityR’000

Balance at 1 July 2011 1 888 772 167 8 029 497 715 (832 110) 447 689 24 903 472 592

Total comprehensive income – – 10 064 60 010 – 70 074 1 053 71 127

Transactions with owners

Proceeds from shares issued 96 6 616 8 019 – – 14 731 – 14 731

Shares to be issued related to business combination – – 18 556 – – 18 556 – 18 556

Employee share scheme transferred to retained earnings – – (13 834) 13 834 – – – –

Capital distribution to shareholders – (33 275) – – – (33 275) – (33 275)

Non-controlling interest arising on business combination – – – – – – 7 447 7 447

Total transactions with owners 96 (26 659) 12 741 13 834 – 12 7 447 7 459

Balance at 30 June 2012 1 984 745 508 30 834 571 559 (832 110) 517 775 33 403 551 178

Balance at 1 July 2012 1 984 745 508 30 834 571 559 (832 110) 517 775 33 403 551 178

Total comprehensive income – – 24 602 51 396 – 75 998 6 739 82 737

Transactions with owners

Proceeds from shares issued 40 20 312 – – – 20 352 – 20 352

Shares to be issued related to business combination – – (18 556) – – (18 556) – (18 556)

Capital distribution to shareholders – (4 717) – – – (4 717) – (4 717)

Total transactions with owners 40 15 595 (18 556) – – (2 921) – (2 921)

Balance at 30 June 2013 2 024 761 103 36 880 622 955 (832 110) 590 852 40 142 630 994

Audited condensed segment reportREVENUE OPERATING PROFIT ASSETS

30 June2013

AuditedR’000

30 June2012

AuditedR’000

30 June2013

AuditedR’000

30 June2012

AuditedR’000

30 June2013

AuditedR’000

30 June2012

AuditedR’000

Poultry 1 783 588 2 039 310 9 208 77 608 1 283 738 1 135 183 – South Africa 2 007 573 2 408 513 (24 666) 56 562 884 884 885 369 Intersegment revenue (506 098) (554 224) – – – –– Other Africa 287 138 205 772 33 874 21 046 398 854 249 814 Intersegment revenue (5 026) (20 751) – – – –Animal Nutrition 860 709 848 621 133 582 68 267 497 854 455 834 – South Africa 1 579 294 1 551 178 98 116 60 561 409 503 374 045 Intersegment revenue (1 118 254) (1 021 924) – – – –– Other Africa 507 945 394 440 35 466 7 706 88 351 81 789 Intersegment revenue (108 276) (75 073) – – – –Retail and Distribution 592 279 206 588 (10 193) 3 594 173 943 60 628 – South Africa 593 385 206 725 (5 500) 3 594 150 805 60 628 Intersegment revenue (4 804) (137) – – – –– Other Africa 6 678 – (4 693) – 23 138 –Intersegment revenue (2 981) – – – – –

3 236 576 3 094 519 132 597 149 469 1 955 535 1 651 645 Revenues of approximately R366,4 million (2012: R241,5 million) are derived from a single external customer. These revenues are attributable to the South African Poultry segment.

Notes to the condensed consolidated financial statements1. Basis of preparation

The audited condensed consolidated financial information announcement for the year ended 30 June 2013 was prepared in accordance with International Financial Reporting Standards (IFRS), International Standard 34, the Listing Requirements of the JSE Limited and the South African Companies Act of 2008. The condensed consolidated financial statements were supervised by MJC Antunes (CA (SA)). The accounting policies are consistent with those of the previous financial year and comply with IFRS. These financial statements do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements as at and for the year ended 30 June 2013. These results have been audited by PricewaterhouseCoopers Inc, Chartered Accountants (SA), Registered Auditors. Their unqualified audit opinion is available for inspection at the company’s registered office.

These audited condensed consolidated financial statements were approved by the board of directors on 26 August 2013.

30 June 2013

AuditedR’000

30 June 2012

AuditedR’000

2. Operating profitThe following amounts have been accounted for in the operating profit:Gain on bargain purchase of Silver Blade Abattoir Proprietary Limited

– 11 171

Fair value gains/(losses) on financial assets at fair value through profit or loss

(4 644) 9 075

3. Reconciliation to headline earningsProfit attributable to owners of the parent 51 396 60 010 Adjusted for:(Profit)/loss on disposal of property, plant and equipment (243) (239)Gain on bargain purchase of Silver Blade Abattoir Proprietary Limited – (11 171)

Adjusted headline earnings 51 153 48 600

4. Capital expenditure and depreciationCapital expenditure 82 154 47 684 Depreciation 48 440 42 698 Amortisation of intangible assets 553 553

5. Capital and other commitmentsInventories contracted for 135 729 108 975

6. Cash and cash equivalentsBank balances, deposits and cash 191 603 151 164 Short-term borrowings (170 758) (166 755)

20 845 (15 591)

7. Reclassification of comparative figuresIn the prior period condensed consolidated financial information announcement, intersegment revenue in the segment report was only shown for the poultry segment, the animal nutrition segment and the beef segment. In order to more fairly present the intersegment revenue between both the primary and geographical segments, the intersegment revenue is disclosed separately for each of Poultry South Africa, Poultry Other Africa, Animal Nutrition South Africa, Animal Nutrition Other Africa and Retail and Distribution South Africa. This has resulted in the restatement of the prior year figures.

Furthermore, the Beef segment has now been renamed Retail and Distribution. This segment will now include all the retail and distribution operations of the group.

30 June 2012

AuditedR’000

Condensed segment report as previously disclosedPoultry 2 039 310

– South Africa 1 861 270 – Other Africa 189 760 Intersegment revenue (11 720)

Animal Nutrition 848 621

– South Africa 1 378 566 – Other Africa 394 440 Intersegment revenue (924 385)

Beef 206 588

– South Africa 206 725 Intersegment revenue (137)

Disclosure as per condensed segment report for the year ended 30 June 2012:Poultry 2 039 310

– South Africa 2 408 513 Intersegment revenue (554 224)– Other Africa 205 772 Intersegment revenue (20 751)

Animal Nutrition 848 621

– South Africa 1 551 178 Intersegment revenue (1 021 924)– Other Africa 394 440 Intersegment revenue (75 073)

Retail and distribution 206 588

– South Africa 206 725 Intersegment revenue (137)

Expanding into Africa

Poultry South Africa The industry remains under severe pressure and has now officially been designated as a distressed industry. The combination of static volumes with no significant increase in selling prices were insufficient to avoid further margin erosion with the sector recording an operating loss for the year of R24,7 million compared to an operating profit of R56,6 million in the prior year. The industry continues to suffer from record levels of imports coupled with high raw material input prices and we, both as a company and an industry, continue to engage with the relative government ministries in order to find common ground for relief. In an effort to minimise the impact of these hurdles we have continued to make inroads with our market diversification policy. We have recorded growth with the existing Quick Service Restaurant business whilst making further inroads into growth prospects with sustainable new customers. Poultry Other Africa Significant volume increases were recorded in our dressed operations in Botswana, from a relatively low base, and we achieved a 20% increase in day-old chick volumes, mainly due to the Francistown hatchery coming on stream for a full year. Prices in the poultry industry in general have not kept pace with input costs resulting in margin reduction but we are well placed with a strong customer base and quality product to take advantage of an upturn when it comes. The Zambian poultry industry has remained resilient throughout the year and we were able to increase volumes in both the day-old chick and parent market. This, together with good parent flock utilisation, has enabled Zambia to achieve excellent operating profits. Overall, operating profit of R33,9 million for this segment was an improvement of 61% over last year’s figure of R21 million.Animal Nutrition South Africa Nutri Feeds recorded an operating profit for the year under review of R98,1 million against last year’s figure of R60,6 million. Efforts were concentrated on cost control and improved efficiencies. These, together with sound procurement practices enabled our milling operation to remain profitable in a difficult operating environment. Good maize and soya positions, coupled with the advantage of strategically well situated mills, resulted in favourable landed raw material positions and improved margins.Animal Nutrition Other Africa Operating profit for the year was R35,5 million compared with R7,7 million for the comparative year, an excellent result. In Botswana management focus was on rationalisation of product lines, efficiency improvement and streamlined procurement policies. These efforts, together with solid foreign exchange management, ensured significant margin improvement despite a 5% drop in volumes. In Zambia, we achieved volume growth of 12% while maintaining margin through the ability to pass on large raw material input increases. Growth was achieved by establishing exports into neighbouring countries while maintaining market share in the local economy. Focus remains centred around continual efficiency improvements, cost control and full utilisation of group resources for quality enhancement and raw material procurement.

Retail and distribution This new division was formed by combining Supreme Distributors, Long Iron Meats and Ama Chick Chick factory retail outlets. The operation will focus on optimising distribution and logistics for the group. The difficult trading conditions previously referred to resulted in the segment realising an operating loss of R10,2 million compared with an operating profit of R3,6 million in the prior year.ProspectsWe continue to liaise closely with all relevant departments in Government to seek a mutually acceptable resolution to the problems facing the industry with regard to unequal treatment and dumping in respect of imported bone in cuts. It is an industry in crisis and until such time as we get greater understanding and action from all concerned parties, the industry will remain depressed and under threat. In South Africa we will concentrate our efforts on providing efficient and sustainable milling operations while aggressively targeting poultry market segments which we can serve to best advantage and thereby minimise the effect of imports competing on an uneven playing field.In Zambia, we will commission a new state of the art hatchery during the first half of the new year, providing an additional 40% capacity. The local market is robust, in line with the economy, and we plan to increase our market share. Breeder expansion will need to accompany this first phase but will take place at a later date. The feed mill has sufficient capacity to take up local growth and we should benefit in this regard. We also believe there is potential for growth in the regional parent market as neighbouring economies produce growth which we are well placed to take advantage of. In Botswana, the economy remains strong and we are well positioned to take advantage of any natural growth as well as to become more competitive in existing markets. We will relook at entering the ruminant market in order to take advantage of excess capacities in the milling sector.With regard to the International Finance Corporation (IFC) US$ 25 million convertible instrument transaction, all necessary regulatory requirements have been met and the funds have been disbursed subsequent to year end. We look forward to growing in Africa with the IFC as our partners, and see this as a critical pillar to the success of our group strategy going forward.Forecast financial information included in the commentary on results has not been reviewed or audited by the group’s auditors, in accordance with Section 8.40(a) of the JSE Listings Requirements.Final capital distribution or dividendGiven the uncertainties surrounding the South African poultry industry with regard to the implementation and timing of an appropriate tariff structure, and the inevitable difficult trading conditions that will prevail until such time as relief is forthcoming, it is considered prudent that no final capital distribution or dividend be declared.By order of the boardMP StanderChief executive of� cer27 August 2013