Agbara, Nigeria2015/2020 site master plan

July, 2011

Project Objective

• To develop a site master plan for Agbara aligned to category growth plans.

• To provide the corresponding make investment roadmap (2011 – 2020) supporting the master plan (Including West Africa sourcing)

• Develop site logistic plan and roadmap (2011-2020)

• Demand volume projection from 2011 through 2020 as signed off

by the brand building organisation

• Capacity investment plan which aligns with Nigeria Capacity

Utilization Consolidation Model

• Category alignment with choice of technology and factory layout

• Growth rate for raw and packaging materials

• Current Factory/Site layout

Inputs

• Demand volume projection +5% sensitivity

• Investment roadmap and cost estimate

• Effect of capacity investment on available factory space

• Nigeria capacity to source other West African countries

• Proposed factory expansion

• Additional utility requirement

• Material movement analysis from 2011 through 2020

• MHE implications and investment

• Proposed site evolution layout

Key considerations

Agbara site layout (AS IS)

Tea factory Savoury factory2000sqm warehouse

Soaps factory Fabclean factory

Green field

Existing warehouse

Total site area = 22 Acre% built up area = 65%

Volume projection (2010 – 2020)

PRODUCTS   Act 2010

Frcst 2011

Frcst 2012

Frcst 2013

Frcst 2014

Frcst 2015

Frcst 2016

Frcst 2017

Frcst 2018

Frcst 2019

Frcst 2020

TBB Vol (T) 2,977 3,074 3,757 4,349 5,072 5,997 6,596 7,256 7,982 8,780 9,658 %   3% 22% 16% 17% 18% 10% 10% 10% 10% 10%

SAVOURY Vol (T) 21,493 24,524 30,959 34,715 39,923 43,915 48,306 53,137 58,451 64,296 70,725 %   14% 26% 12% 15% 10% 10% 10% 10% 10% 10%

SKIN CLEANSING

Vol (T) 5,448 6,845 9,354 9,002 9,903 11,388 12,527 13,780 15,158 16,674 18,341 %   26% 37% -4% 10% 15% 10% 10% 10% 10% 10%

FAB CLEAN POWDERS

Vol (T) 29,912 36,003 44,883 49,620 54,334 59,496 65,446 71,990 79,189 87,108 95,819 %   20% 13% 13% 10% 10% 10% 10% 10% 10% 10%

Total 59,830 70,446 88,953 97,686 109,232 120,796 132,875 146,163 160,780 176,858 194,543

The table below shows demand volume projection for Agbara site (2010 - 2020)

PRODUCTS   Act 2010

Frcst 2011

Frcst 2012

Frcst 2013

Frcst 2014

Frcst 2015

Frcst 2016

Frcst 2017

Frcst 2018

Frcst 2019

Frcst 2020

TBB Vol (T) 2,977 3,074 3,757 4,546 5,546 6,822 7,845 9,022 10,375 11,931 13,721 %   3% 22% 21% 22% 23% 15% 15% 15% 15% 15%

SAVOURY Vol (T) 21,493 24,524 30,959 36,222 43,466 49,986 57,484 66,107 76,023 87,427 100,541 %   14% 26% 17% 20% 15% 15% 15% 15% 15% 15%

SKIN CLEANSING

Vol (T) 5,448 6,845 9,354 9,448 10,865 13,038 14,993 17,242 19,829 22,803 26,223 %   26% 37% 1% 15% 20% 15% 15% 15% 15% 15%

FAB CLEAN POWDERS

Vol (T) 29,912 36,003 44,883 52,962 60,906 70,042 80,548 92,631 106,525 122,504 140,880 %   20% 13% 18% 15% 15% 15% 15% 15% 15% 15%

TOTAL 59,830 70,446 88,953 103,178 120,783 139,888 160,870 185,002 212,752 244,665 281,365

The table below shows demand volume projection for Agbara site (+ 5% sensitivity)

Fabric Cleaning

Assumptions• Hassia machines is the category preferred technology for big packs• Bosch machines for big pack sizes will be dedicated to 1Kg• Boatopacks machines is the category preferred technology for 30g• Boatopacks will gradually replace the 2-lane bosch machines for 30g (Business case 2012)• Process design capacity (base powder) is 15 tons/ hr ≈ 84,000 tons /annum (at 75% efficiency) assume

20% Post dose to give 100,000 tons.• Decision on cheetah / fibrite pending business evaluation.• Case packing solution for Big packs( 250g, 500g and 1kg) is by Cermex (Alternative system is being

sourced along side with the category)• Manual packing is assumed for 30g string sachets (Appropriate automation system is being scoped)• High speed case packer ( ≈ 300 packs/min) for big packs is required at the EOL to optimize packing hall

space utilization

Summary (Nigeria Vol.)1. AS IS• Line 1 consists of 11 Bosch machines for 30g• Line 2 consists of 4 Bosch machines and 1 Hassia for 250g , 500g and 1kg used interchangeably.• Line 3 consists of 3 Boatopacks machines and 1 Uniclan machine• Finished powder storage consist of 260 tote bins with 130 ton capacity2. 2015• Current factory space can accommodate capacity until 2015 • Mezzanine floor expansion (towards the warehouse) to provide for 200 additional tote bin space• Alternatively, Provide Base powder Silo (100T)• 1 additional Boatopack on line 3 to improve capacity on 30g (2012)• 1 additional Hassia on line 2 to improve capacity on 250g (2013)• 1 Boatopack machine to replace 1 bosch machine on line 1 for 30g (2014)3. 2020• Current factory space can accommodate capacity until 2020 ( Note that high speed EOL is required for automatic case

packing for 250g, 500g and 1kg)• 1 additional Hassia machines to improve capacity on 250g & 500g (2016)• 1 additional Hassia machines to improve capacity on 250g & 500g (2019)• 1 Boatopack machine to replace 1 bosch machine on 30g (2016)• 1 Boatopack machine to replace 1 bosch machine on 30g (2017)• 2 Boatopack machines to replace 2 bosch machine on 30g (2019)

Summary (+ Ghana vol.)2015• Current packing space can accommodate capacity until 2015• 1 additional Boatopack on line 3 to improve capacity on 30g (2011)• 1 additional Hassia on line 2 to improve capacity on 250g (2012)• 2 Boatopacks to replace 2 Bosch on line 1 (2013)• Mezzanine floor expansion (towards the warehouse) to provide for 200 additional tote bin space (2013)• Alternatively, Provide Finished powder Silo to improve finished powder storage capacity (2013)• 2 Boatopacks to replace 2 Bosch on line 1 (2014)• 1 additional Hassia on line 2 to improve capacity on 250g (2015)

2020 Current factory space can accommodate capacity until 2016 Building expansion towards the green field required to support Nigeria and Ghana volume post 2016 Upgrade of the powder processing tower would be required (from 15T/hr to ≈ 20T/hr) to improve

process capacity by 2016 where process capacity Utilization is expected to be about 78% Any further increase in Ghana volume sourced from Nigeria would required Process capacity investment

post 2020

Summary (+ 5% Sensitivity)2015• Current packing space can accommodate capacity until 2015• Mezzanine floor expansion (towards the warehouse) to provide for 200 additional tote bin space• Alternatively, Provide Base powder Silo to improve finished powder storage capacity (Based on category advise)• 1 additional Boatopack on line 3 to improve capacity on 30g (2011)• 2 Boatopacks to replace 2 Bosch on line 1 (2013)• 2 Boatopacks to replace 2 Bosch on line 1 (2014)• 2 Boatopacks to replace 2 Bosch on line 1 (2015)• 1 additional Hassia on line 2 to improve capacity on 250g (2012)• 1 additional Hassia on line 2 to improve capacity on 250g (2014)

2020 Current factory space can accommodate capacity until 2016 Building expansion towards the green field required to support Nigeria and Ghana volume post 2016 to be commissioned

by 2016 2 Boatopacks to replace 2 Bosch on line 1 (2016) 3 Boatopacks to replace 3 Bosch on line 1 (2017) 2 additional Hassia machines (2017) 2 Additional Boatopacks (2019) 2 Additional Boatopacks (2020) Any further increase in Ghana volume sourced from Nigeria would required Process capacity investment Upgrade of the powder processing tower would be required (from 15T/hr to ≈ 20T/hr) to improve process capacity by

2015 where process capacity Utilization is expected to be about 82%

Volume projection(+ Ghana Vol.) Volume projection (+5% sensitivity)

2011 2 Boatopacks 2 Boatopacks

2012 1 Hassia 1 Hassia

2013 2 Boatopacks 2 Boatopacks

2014 2 Boatopacks 2 Boatopacks/ 1 Hassia

2015 1 Hassia 2 Boatopacks

2016 2 Boatopacks 2 Boatopacks/ 2 Hassia

2017 2 Hassia 3 Boatopacks

2018 3 Boatopacks 2 Hassia

2019 2 Boatopacks / 1 Hassia 2 Boatopacks

2020 - 2 Boatopacks

Investment Roadmap comparison

Investment Roadmap(Nigeria + Ghana Vol.)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Equipment Boatopack 900 900 900 900 1350 900 Hassia 350 350 700 350 cheetah 1000 900 900 coding machine 150 150 150 150 150 150 150Case sealers 75 75 75 75 75 75lift 350 350 EOL 1600 250 300 Services Air compressor 160 160 Ambience cooling 700 300 Power 500 Water Building 400 1000 250 200LAB 150 150 150 150 Process innovation 500 500 500 TOTAL (‘000 EUR) 900 3325 2500 2285 1650 2775 1325 2900 2435 425

Investment Roadmap(+ 5% Sensitivity)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Equipment Boatopack 900 900 900 900 1350 900 900Hassia 350 350 700 700cheetah 1000 900 900coding machine 150 150 150 150 150 150 150Case sealers 75 75 75 75 75 75lift 350 350EOL 1600 250 300Services Air compressor 160 160Ambience cooling 700 300Power 500 Water Building 400 1000 250 200LAB 150 150 150 150Process innovation 500 500 500 TOTAL (‘000 EUR) 3675 2500 2635 2200 3475 2175 2250 2085 1325

Fabclean factory layout (AS IS)

Line 1: 11 Bosch machine (30g)

Line 2: 4 Bosch machines (250g, 500g & 1kg)

Process area with design capacity of 15 tons/ hour

Hassia machine (250g & 500g)

Line 3: 3 Boatopack machines & 1 ilapack machine

Palletizing area

Fabclean factory layout AS IS + EOL

Case erector, case packers and sealers for big packs Overhead conveyor system

to centralize all palletizing process at the warehouse

Proposed central palletizing area

Fabclean factory layout (2015)

1 Additional Boatopack (2012)

Process area with design capacity of 15 tons/ hour

1 additional Hassia machine (2013)

1 Boatopack to replace 1 Bosch (2014)

Existing machineProposed Machine

Plant annual capacity =100,000 tons

Fabclean factory layout (2020)

Process area with design capacity of 15 tons/ hour

1 additional Hassia machine (2016)

1 Boatopack to replace 1 Bosch (2016)

1 Boatopack to replace 1 Bosch (2014)

1 Boatopack to replace 1 Bosch (2017)

2 Boatopack to replace 2 Bosch (2019)

1 Additional Boatopack (2012)

1 additional Hassia machine (2019)

Plant annual capacity =100,000 tons

Demand volume projection (2011 -2020)

Process CU = 80%

(T)

Demand volume projection (+5% sensitivity)

Process CU = 80%

(T)

Process Capacity Utilization

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Capacity (t)

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

Demand 41,764

52,322

58,039

63,877

70,332

77,773

86,038

95,227

105,453

116,842

CU (%) 42% 52% 58% 64% 70% 78% 86% 95% 105% 117%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Capacity(t)

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

100,000

Demand 41,764

52,322

61,741

71,002

81,652

93,900

107,985

124,182

142,810

164,231

CU (%) 42% 52% 62% 71% 82% 94% 108% 124% 143% 164%

Process capacity utilization (+5% sensitivity)

FABCLEAN 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Current machines

Annual capacity(Tons)

30g

13,201 Demand 16850 21110 23417 25772 28377 31379 34713 38421 42546 47141 14,106 Capacity 29923 29923 37116 44131 44131 51146 51146 61969 69184 69184 2,617 CU (%) 56 71 63 58 64 61 68 62 61 68

Boatopack 4,673

75gBosch 1-2

1,474 Demand 267 335 371 409 450 498 551 609 675 748Capacity 1474 1474 1474 1474 1474 1474 1474 1474 1474 1474CU (%) 18 23 25 28 31 34 37 41 46 51

250g Bosch 14 & 15 + Hassia

2,704 Demand 9336 11696 12974 14279 15722 17385 19232 21287 23572 26118 4,395 Capacity 15008 20822 20822 20822 26636 26636 35154 35154 35154 35154 7,909 CU (%) 62 56 62 69 59 65 55 61 67 74 8,518

500gBosch 13

4,563 Demand 3668 4595 5097 5609 6176 6830 7555 8362 9260 10261 8,213 Capacity 4563 8669 8669 8669 10950 10950 18250 18250 18250 18250

CU (%) 80 53 59 65 56 62 41 46 51 56

1kgBosch 16 + (15)

16,959 Demand 11643 14587 16180 17808 19608 21682 23986 26548 29399 32574 16,959 Capacity 16959 25438 25438 25438 30001 30001 44602 44602 44602 44602

CU (%) 69 57 64 70 65 72 54 60 66 73TOTAL 41764 52322 58039 63877 70332 77773 86038 95227 105453 116842

% growth 20% 13% 13% 10% 10% 10% 10% 10% 10% 10%

Capacity Utilization (+ Ghana volume)

Capacity Utilization (+ 5% Sensitivity)

FABCLEAN 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Current machines

Annual capacity(Tons)

30g

13,201 Demand 16850 21110 24910 28647 32944 37885 43568 50103 57619 66261 14,106 Capacity 29923 29923 37116 44131 51146 58161 68684 68684 78029 87374 2,617 CU(%) 56 71 67 65 64 65 63 73 74 76

Boatopack 4,673

75gBosch 1-2

1,474 Demand 267 335 395 454 522 601 691 795 914 1051Capacity 1474 1474 1474 1474 1474 1474 1474 1474 1474 1474CU(%) 18 23 27 31 35 41 47 54 62 71

250g Bosch 14 & 15 + Hassia

2,704 Demand 9336 11696 13801 15871 18252 20990 24138 27759 31923 36711 4,395 Capacity 15008 20822 20822 26636 26636 35154 35154 43672 43672 52190 7,909 CU(%) 62 56 66 60 69 60 69 64 73 70 8,518

500gBosch 13

4,563 Demand 3668 4595 5422 6235 7170 8246 9483 10905 12541 14422 8,213 Capacity 4563 8669 8669 10950 10950 18250 18250 25550 25550 25550

CU(%) 80 53 63 57 65 45 52 43 49 56

1kgBosch 16 + (15)

16,959 Demand 11643 14587 17212 19794 22763 26178 30105 34620 39813 45785 16,959 Capacity 16959 25438 25438 30001 30001 44602 44602 59203 59203 59203

CU(%) 69 57 68 66 76 59 67 58 67 77TOTAL 41764 52322 61741 71002 81652 93900 107985 124182 142810 164231

% growth 20% 13% 18% 15% 15% 15% 15% 15% 15% 15%

Skin cleansing

Summary Current factory space can accommodate Process and Packing capacity until 2020

A new 2T/hr soap line would commissioned in 2012 & 2019

Additional dryer is required in 2015

Additional reactor is required in 2019

Additional Bleacher is required in 2017

+5% sensitivity Current factory space can accommodate capacity until 2020 Effect of additional volume did not affect process investment roadmap A new soap line would commissioned in 2012 & 2018

Investment Roadmap

Investment roadmap with cost estimate

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Equipment

New line 1700 1700

coding machine 45 45 45 45 45 45 45 45 45Case sealers 75 75 75

Services

Air compressor 150 150 150 Pump Power 52 250

Process Dryer 1000

Reactor 1300 Bleacher 1200

Total (EUR ,000) 52 1895 45 1370 195 1245 120 1495 1745 120

Investment Roadmap (+ 5% sensitivity)

Investment roadmap and cost estimate

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Equipment

New line 1700 1700

coding machine 45 45 45 45 45 45 45 45 45Case sealers 75 75 75

Services

Air compressor 150 150 150 Pump Power 52 250

Process Dryer 1000

Reactor 1300 Bleacher 1200

Total (EUR ,000) 52 1895 45 1370 195 1245 120 3195 45 120

Skin cleansing factory layout (AS IS)

Line 1 (Decommissioned)

Line 2: (Lux diva, 75g/200g diana B – 75g)

Line 3: Lux diva, Life bouy 75g/200g &Diana B

Skin cleansing factory layout (2015)

New line to replace the decommissioned line (2012)

Line 2: (Lux diva, 75g/200g diana B – 75g)

Line 3: Lux diva, Life bouy 75g/200g & Diana B

Skin cleansing factory layout (2020)

New machine to replace line 1 (2012)

Line 3: Lux diva, Life bouy 75g/200g & Diana B

Line 4: Additional line (2019)

Line 2: (Lux diva, 75g/200g diana B – 75g)

Process Capacity Utilization(Drying)

CU% = 80%

Process Capacity Utilization(Oil Bleaching)

CU = 80%

Process Capacity Utilization(Soap making)

Process Capacity Utilization

Additional dryer is required in 2015

Additional reactor is required in 2019

Additional Bleacher is required in 2017

Equipment 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Drying

Demand(T) 6,571

8,980

8,642

9,507

10,932

12,026

13,229

14,552

16,007

17,607

Capacity(T) 16,848

16,848

16,848

16,848

16,848

16,848

16,848

16,848

16,848

16,848

CU(%) 39% 53% 51% 56% 65% 71% 79% 86% 95% 105%Soap Making Demand(T)

8,214

11,225

10,802

11,884

13,666

15,032

16,536

18,190

20,009

22,009

Capacity(T) 31,824

31,824

31,824

31,824

31,824

31,824

31,824

31,824

31,824

31,824

CU(%) 26% 35% 34% 37% 43% 47% 52% 57% 63% 69%Oil Bleaching /

Filtration Demand(T)

4,928

6,735

6,481

7,130

8,199

9,019

9,922

10,914

12,005

13,206

Capacity(T) 15,912

15,912

15,912

15,912

15,912

15,912

15,912

15,912

15,912

15,912

CU(%) 31% 42% 41% 45% 52% 57% 62% 69% 75% 83%

Total Demand 6,845

9,354

9,002

9,903

11,388

12,527

13,780

15,158

16,674

18,341

Packing Capacity Utilization

SOAPS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Current machines

Annual capacity (Tons)

Diva/LifebouyACMA - Line 3 2978 Demand 3,099 4236 4076 4484 5157 5673 6240 6864 7550 8305ACMA - Line 4 2123 Capacity 3690 9435 9570 9704 10109 10513 10513 10513 15244 15244

CU (%) 84% 45% 43% 46% 51% 54% 59% 65% 50% 54%Diana B ACMA - Line 2 3419 ACMA - Line 3 3176 Demand 3745 5118 4926 5,419 6,231 6,854 7,540 8,294 9,124 10,036 ACMA - Line 4 6369 Capacity 5711 11558 11723 11888 12383 12879 12879 12879 17610 17610 CU(%) 66% 44% 42% 46% 50% 53% 59% 64% 52% 57%

TOTAL

6,845

9,354

9,002

9,903

11,388

12,527

13,780

15,158

16,674

18,341

% growth 26% 37% -4% 10% 15% 10% 10% 10% 10% 10%

A new 2T/hr soap line would commissioned in 2012 & 2019

Packing Capacity Utilization (+5% sensitivity)

SOAPS

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Current machines

Annual capacity (Tons)

Diva/Lifebouy

ACMA - Line 3 2978 Demand 3,254 4,448 4,280 4,709 5,415 5,956 6,552 7,207 7,928 8,721

ACMA - Line 4 2123 Capacity 3690 9435 9570 9704 10109 10513 10513 15244 15244 15244

CU% 88% 47% 45% 49% 54% 57% 62% 47% 52% 57%

Diana B ACMA - Line 2 3419

ACMA - Line 3 3176 Demand 3933 5374 5172 5690 6543 7197 7917 8709 9580 10538

ACMA - Line 4 6369 Capacity 5711 11558 11723 11888 12383 12879 12879 12879 17610 17610

69% 46% 44% 48% 53% 56% 61% 68% 54% 60%

TOTAL

6,845

9,354 9,002

9,903

11,388

12,527

13,780

15,158

16,674

18,341

% growth 26% 37% -4% 10% 15% 10% 10% 10% 10% 10%

A new 2T/hr soap line would commissioned in 2012 & 2018

TBB

Assumptions

• Line orientation will be reversed in opposite direction to ease inflow/outflow of RM, PM & FG (2012)

• There will be a total of 60 mai sa machines (17 to be added over 2011) for the box line by 2012

• Additional capacity investment will be targeted at high speed lines: Tecnomeccanica (320 bags/min with lid closer) recommended by the category

Summary1. AS IS• 4 tea lines consists of 38 Mai sa filling machine for Box• 4 Marden Edwards over wrapper• 2 Shrink wrappers • 4 Maisa machines for sachet• Hopper feeding, palletizing, box erecting and closing are done manually

2. 2015• Current factory space can accommodate capacity until 2015 • 5 additional mai sa machine by 2012 • 5 Technomeccanica with box erector and lid closer by 2014 • 5 Technomeccanica with box erector and lid closer by 2014

3. 2020• Savoury expansion would take over the present tea space by 2016• A new tea factory (≈2000sqm) to be built in the green field by 2016

Volume projection Volume projection (+5% sensitivity)

2011 12 Maisa(box) / 2 Maisa (sachet) 12 Maisa(box) / 2 Maisa (sachet)

2012 5 Maisa(box) / 2 Maisa (sachet) 12 Maisa(box) / 2 Maisa (sachet)

2013 - -

2014 5 Tecnomeccanica T2 5 Tecnomeccanica T2

2015 5 Tecnomeccanica T2 / 2 Maisa (sachet) 5 Tecnomeccanica T2 / 2 Maisa (sachet)

2016 - 5 Tecnomeccanica T2

2017 5 Tecnomeccanica T2 5 Tecnomeccanica T2 / 2 Maisa (sachet)

2018 5 Tecnomeccanica T2 10 Tecnomeccanica T2 / 2 Maisa (sachet)

2019 5 Tecnomeccanica T2 / 2 Maisa (sachet) 10 Tecnomeccanica T2 / 2 Maisa (sachet)

2020 5 Tecnomeccanica T2 5 Tecnomeccanica T2 / 2 Maisa (sachet)

Investment Roadmap comparison

Investment Roadmap

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Equipment

Filling machine(Box)

900

400 Tecnomeccanica T2 with automated EOL

2,556

2,556

2,556

2,556

2,556

2,556

Filling machine(Sachet)

200

200

500

500

coding machine

75

75

75

75

75

75

75

75

75

EOL 1,700

1,700

1,500

Services Air compressor

Ambience cooling

200

150

150 Power Water

Building 1,500

1,000

150

150

LAB

Hopper feeding

700

Total (EUR ,000) 1,100

2,375

3,275

4,531

4,631

75

2,931

2,781

3,131

2,781

Investment Roadmap (+5% Sensitivity)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Equipment

Filling machine(Box)

900

400 Tecnomeccanica T2 with automated EOL

2,556

2,556

2,556

2,556

5,112

5,112

2,556

Filling machine(Sachet)

200

200

500

500

500

500

500

coding machine

75

75

75

75

75

75

75

75

75

EOL 1,700

1,700

1,500

Services Air compressor

Ambience cooling

200

150

150 Power Water

Building 1,500

1,000

150

150

LAB

Hopper feeding

700

Total (EUR ,000) 1,100

2,375

3,275

4,531

4,631

75

2,931

2,781

3,131

2,781

TBB factory layout (AS IS)

4 tea lines (Box) of 38 maissa filling machines

2 maissa machines for sachet

TBB factory layout (2015)

6 tea lines (Box) of 60 maissa filling machines

6 maissa machines for sachet

10 Tecnomeccanica

Proposed TBB Factory Layout (2016)

Maisa machines for sachet

Tecnomeccanica T2 machines

Proposed tea packing hall

Palle

tizin

g a

rea

Maisa machines will be gradually replaced by highspeed Tecnomeccanica T2 machines

Capacity Utilization(2011-2020)

TBB 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Current machinesAnnual

capacity (Tons)

LIPTON RELAUNCH -2008

Maissa (1-43) + 6 new maisa + 6

new maisa

3819 Demand 2890 3556 4116 4800 5675 6242 6867 7554 8309 9140

679 Capacity 5177 5177 5745 7039 8333 8333 9627 10921 12215 13509

679 Capacity Utilization 56 69 72 68 68 75 71 69 68 68

1294

LIPTON TEA IN SACHET (2 IN 1)

Access (1-4) + 2 new maisa

101 Demand 184 201 233 272 322 354 389 428 471 518

172 Capacity 273 445 445 445 445 617 617 617 617 789

Capacity Utilization 68 45 52 61 72 57 63 69 76 66

TOTAL 3074 3757 4349 5072 5997 6596 7256 7982 8780 9658

% growth 3% 22% 16% 17% 18% 10% 10% 10% 10% 10%

TBB

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Current machines

Annual capacity (Tons)

LIPTON RELAUNCH -2008

Maissa (1-43) + 6 new maisa + 6 new maisa

3819 Demand 2890 3532 4088 4987 6135 7055 8113 9330 10729 12339679 Capacity 5177 5177 5745 6895 8045 9195 10345 12645 14945 16095679 Capacity utilization 56 68 71 72 76 77 78 74 72 77

1150

LIPTON TEA IN SACHET (2 IN 1)

Access (1-4) + 2 new maisa

101 Demand 184 225 261 318 392 450 518 596 685 788172 Capacity 273 445 445 445 617 617 789 961 1133 1305

Capacity Utilization 68 51 59 72 63 73 66 62 60 60TOTAL 3074 3757 4566 5326 6297 6926 7619 8381 9219 10141

% growth 3% 22% 22% 22% 23% 15% 15% 15% 15% 15%

Capacity Utilization (+5% Sensitivity)

Savoury

Assumptions

• Theegarten is the category preferred technology for both 4g and 8g.

• Ilapack machines replaces rovema bagging machines stating from 2010

• Provision has been made to accommodate Ghana volume once decision is made

• Project Wazobia will upgrade process capacity from 24,800T to 58,000T

Summary Current factory space can accommodate capacity until 2015

Re-organisation of the maturation space would ease packing space till 2015

Volume expansion beyond 2015 would be sited in the current tea factory

Process capacity will be sufficient till 2015 (58,000 T)

Post 2015, savoury process capacity would be upgraded(Additional Mixers)

(+5% sensitivity)

Current factory space can accommodate capacity until 2014

Re-organisation of the maturation space would ease packing space till 2014

Process capacity will be sufficient till 2014 (58,000 T)

Post 2014, savoury process capacity would be upgraded(Additional Mixers)

Summary1. AS IS • Line 1 consists of 14 Sapal machines for 4g cubes with rovemma• Line 2 consists of 7 RC machines and 4 Sapal machines for 4g cubes with 2 ilapack bagging machines• Line 3 consists of 7 RC machines and 6 Corrazza machines for 8g cubes with rovemma• Line 4 consists of 6 RC machines for 8g cubes with rovemma

2. 2015• Process capacity will be sufficient till 2015• Line 1: 3 Theegaten machines to replace 14 Sapal machines (2012)• Line 3: 5 IDP machines to replace 5 Corrazza machines (2012)• Line 3: 5 additional RC machines (2012)• Innovation: 3 Machines for Project lion - 6g (2012)• Line 4: 2 additional Theegaten machines for 8g (2014)• Line 1: 1 Additional Theegaten (2015)• Ilapack bagging machines @ 4000/6000 cubes/min to replace Rovemma

3. 2016-2020• Additional capacity investment would be sited in the current tea factory

Investment Roadmap comparison

Table showing difference in investment roadmap

Volume projection Volume projection (+5% sensitivity)

2011 4 RC, 1 THEE 4 RC, 1 THEE

2012 1 RC, 5 IDP, 2 THEE 1 RC, 5 IDP, 2 THEE

2013 - -

2014 - 3 THEE

2015 3 THEE 2 THEE

2016 - -

2017 3 THEE -

2018 - 6 THEE

2019 2 THEE -

2020 2 THEE -

Investment Roadmap

Investment roadmap with cost estimate 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Equipment

RC 3520 2400

THEE 3200 6400 9600 9600 3200

Ilapack bagging machine 1000

Stickpack/Meshpack 1250 550 550 550 550 550Services

Air compressor 700 180

Ambience cooling 300 250 300

Building 2650

Process

mixer 600

Total (EUR ,000) 12320 9350 850 180 9600 800 9600 850 1150 3200

Investment Roadmap (+ 5% sensitivity)

Investment roadmap and cost estimate 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Equipment

RC 3520 2400

THEE 3200 6400 9600 6400 19200

Ilapack bagging machine 1000

Stickpack/Meshpack 1250 550 550 550 550 550

Services

Air compressor 700 180

Ambience cooling 300 250 300

Building 2650 100 500 Process

Mixer 600

TOTAL 12320 9450 850 10280 6400 800 0 20050 1150 0

Savoury factory layout (AS IS)

Line1: 14 sapal machines (4g)

Line 2: 7 RC machines + 4 Sapals (4g)

Line 4: 6 RC machines (8g)

Line 3: 7 RCs + 6 Corrazzas (8g)

Savoury factory layout (2015)

Line 1: 3 theegaten machines to replace 14 Sapals (2012)

Line 3: 5 additional RCs (2012)

3 Machines for Project lion for 6g (2012)

Line 4: 2 additional theegateens for 8g (2014)

Ilapack bagging machines @ 4000/6000 cubes/min to replace Rovemma

1 Additional theegaten (2015)

3 IDPs to replace 5 Corrazzas (2012)

Savoury factory layout (2020)

Additional capacity beyond 2015 would be sited in the current tea space

Demand volume growth + Sensitivity

Process CU = 80%

Packing Capacity Utilization

SAVOURY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Current machines

Annual capacity (Tons)

4G

Sapal (1-5) 1824 Demand 10,452 13195 14796 17015 18717 20588 22647 24912 27403 30144Sapal (6-10) 2070 Capacity 19,210 23819 24295 24944 29775 30136 35270 35689 45753 46015Sapal (11-15) 2363 CU% 54% 55% 61% 68% 63% 68% 64% 70% 60% 66%RC (1-12) 10752 THEE 4026

8GRC (1-13) 15288 Demand 14,072 17,764 19,919 22,908 25,198 27,718 30,490 33,539 36,893 40,581Corazza (1-5) 1565 Capacity 23897 29768 30592 31577 41104 41612 51551 52173 52768 63195RC 1761 CU% 59% 60% 65% 73% 61% 67% 59% 64% 70% 64%

6G IDP (1-5) 4717

TOTAL

24,524

30,959 34,715

39,923

43,915

48,306

53,137

58,451

64,296

70,725

% growth 14% 26% 12% 15% 10% 10% 10% 10% 10% 10%

Packing Capacity Utilization (+5% sensitivity)

SAVOURY

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Current machine

s

Annual capacity (Tons)

4G

Sapal (1-5) 1824 Demand 10,975 13,855 15,536 17,866 19,653 21,618 23,780 26,158 28,774 31,651

Sapal (6-10) 2070 Capacity 19,210 23819 24295 24944 34433 36239 36239 50904 50912 50912Sapal

(11-15) 2363 CU% 57% 58% 64% 72% 57% 60% 66% 51% 57% 62%RC

(1-12) 10752 THEE 4026

8G

RC (1-13) 15288 Demand 14,775 18,652 20,915 24,053 26,458 29,104 32,014 35,216 38,737 42,611

Corazza(1-5) 1565 Capacity 23897 29768 30592 45705 45705 48531 48531 63195 64332 64332RC 1761 CU% 62% 63% 68% 53% 58% 60% 66% 56% 60% 66%

6G IDP (1-5) 4717

TOTAL

25,750

32,507

36,451

41,91

9

46,11

1

50,72

1

55,79

4

61,37

4

67,51

1

74,26

1 % growth 14% 26% 12% 15% 10% 10% 10% 10% 10% 10%

Site Logistics Flow

July, 2011

Assumptions On Material Movement & Storage

The following assumptions were made for material movement and storage analysis:

•A mega distribution centre (Mega DC) will be built in Agbara ( 1km from the Factory).

It will be operational by 2013.

•48hours FG storage on site pre mega DC while 24 hours post mega DC.•1.5 weeks storage for R/PM (Ambient material) 2011 - 2015

1 week storage for R/PM (Ambient material) 2016-2020

•All cool and isolated materials i.e. perfumes, enzymes will be stored on site

•Standard stock norm for Cool and Isolated materials will be maintained.

•Racking of all the warehouses on site

Growth Rate Assumptions

• Raw & Pack Materials Growth Rates 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Receipts & Issuances Growth

1.24% 1.20% 1.19% 1.18% 1.17% 1.10% 1.10% 1.10% 1.10% 1.10%

Inventory Growth 1.18% 1.15% 1.14% 1.14% 1.13% 1.08% 1.08% 1.08% 1.08% 1.08%

• Finished Goods Growth RatesCategories 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Tea 12% 32% 22% 22% 22% 20% 10% 10% 10% 10% 10%

Savory 13% 20% 19% 14% 14% 13% 10% 10% 10% 10% 10%Skin Cleansing 44% 68% 34% 23% 27% 27% 10% 10% 10% 10% 10%Fabric Cleaning 33% 18% 15% 14% 10% 10% 10% 10% 10% 10% 10%

Pallets to be stored on-site (RM/PM)

RM/PM 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

NSD 1034 1189 1355 1545 1746 1331 1431 1541 1659 1784

SOAPS 240 275 314 358 405 379 409 440 474 511

SAVOURY 1838 2114 2410 2748 3105 2735 2948 3177 3424 3690

TEA 214 246 280 319 361 273 294 317 341 366

TOTAL 3325 3824 4359 4970 5616 4718 5082 5475 5898 6351

•1.5 weeks storage for R/PM (Ambient material) 2011 – 2015

• 1 week storage for R/PM (Ambient material) 2016-2020

•The reduction in storage is driven by capacity utilization

Pallets to be stored on-site (FG)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

NSD 950 1074 1214 667 734 808 444 489 537 591

SOAPS 111 152 146 80 92 101 56 61 68 74

SAVOURY 251 316 354 204 224 246 135 149 164 180

TEA 91 111 128 75 89 97 54 59 65 71

TOTAL 1403 1652 1842 1026 1139 1253 689 758 834 917

• 48 hours storage till 2013(Pre Mega DC)• 24 hours storage: 2014-2017 (Post Mega DC)• 12 hours storage: 2018-2020 (Post Mega DC)

• 1.5 weeks storage for R/PM (Ambient material) 2011 – 2015

• 1 week storage for R/PM (Ambient material) 2016-2020

• 48 hours FG transit storage till 2013(Pre Mega DC)

• 24 hours FG transit storage: 2014-2020 (Post Mega DC)

• After 2018 the racking system could be changed to a more dense storage system

• FG storage could be further reduced to 16hours transit storage.

Notes on Warehouse Utilization

2000sqm Warehouse 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Pallet Space 4190 4190 4190 4190 4190 4190 4190 4190 4190 4190

Capacity 2436 2841 3197 2571 2885 2584 2120 2299 2493 2701

Capacity Utilization 58% 68% 76% 61% 69% 62% 51% 55% 59% 64%

Warehouse Utilization (2011-2020)

• 48 hours storage till 2013(Pre Mega DC)

• 24 hours storage: 2014-2017 (Post Mega DC)

• 12 hours storage: 2018-2020 (Post Mega DC)

Total Site

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Pallet Space 8188 8188 8188 8188 8188 8188 8188 8188 8188 8188

Capacity 4728 5476 6201 5996 6755 5971 5771 6233 6732 7268

Capacity Utilization

58% 67% 76% 73% 82% 73% 70% 76% 82% 89%

Warehouse Utilization (2011-2020)

FG 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

NSD 475 537 607 667 734 808 888 977 1075 1182

TRUCKS PER DAY 22 24 28 30 33 37 40 44 49 54

SOAPS 55 76 73 80 92 101 112 123 135 149

TRUCKS PER DAY 3 3 3 4 4 5 5 6 6 7

SAVOURY 125 158 177 204 224 246 271 298 328 361

TRUCKS PER DAY 6 7 8 9 10 11 12 14 15 16

TEA 45 55 64 75 89 97 107 118 130 143

TRUCKS PER DAY 2 3 3 3 4 4 5 5 6 6

Daily Finished goods Pallets Space

Savory 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Raw Material 2 3 4 4 5 5 6 7 7 8Pack Material 4 4 5 6 7 8 9 10 11 12Finished Goods 6 7 8 9 10 11 12 14 15 16Total 12 15 17 20 22 25 27 30 33 36Tea 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Raw Material 1 1 1 2 2 2 3 3 3 4Pack Material 1 1 1 2 2 2 3 3 3 4Finished Goods 2 3 3 3 4 4 5 5 6 6Total 4 5 6 7 8 9 10 11 12 14Powder 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Raw Material 3 4 4 5 6 7 8 9 10 11Pack Material 2 2 3 4 4 5 5 6 7 7Finished Goods 22 24 28 30 33 37 40 44 49 54Total 27 31 35 39 44 49 54 59 65 72Soap 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Raw Material 1 1 1 2 2 2 3 3 3 4Pack Material 1 1 1 2 2 2 3 3 3 4Finished Goods 3 3 3 4 4 5 5 6 6 7Total 5 6 6 7 8 10 10 11 13 14

Daily Truck Movement by factory

Daily truck movement (total site)

  2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Raw Material 7 9 10 13 15 16 20 22 23 27

Pack Material 8 8 10 14 15 17 20 22 24 27

Finished Goods 33 37 42 46 51 57 62 69 76 83

Total Trucks 48 54 62 73 81 90 102 113 123 137

• There are 8 loading stations; 5 for loading FG and 3 for offloading RM&PM

• Parking space for 6 trucks

• Racks will be installed in all the warehouses by 2011, to be effective tentatively in 2012

• The MHE required and type of racks will be recommended by Scheffer Racking System.

Savory 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Raw Material 98 122 146 174 205 240 264 290 319 351Pack Material 30 37 45 53 63 73 81 89 98 107

Finished Goods 110 139 155 179 196 216 238 261 288 316Total 238 297 346 405 464 529 582 640 704 774Tea 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Raw Material 8 10 12 14 17 20 22 24 26 29Pack Material 19 24 28 34 40 46 51 56 62 68

Finished Goods 44 54 62 73 86 95 104 114 126 138Total 71 87 102 121 142 161 177 194 214 235

Powder 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Raw Material 10 12 15 18 21 24 27 30 33 36Pack Material 26 32 39 46 54 64 70 77 85 93

Finished Goods 396 447 506 556 612 673 740 814 896 985Total 432 492 559 620 687 761 837 921 1013 1114Soap 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Raw Material 12 15 18 21 25 29 32 35 39 43Pack Material 26 32 39 46 54 64 70 77 85 93

Finished Goods 44 60 58 64 73 81 89 97 107 118Total 82 107 114 131 153 173 191 210 231 254

Daily pallets movement by factory

Daily pallet movement (total site)

Average Day Pallet volume

  2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Raw Material 128 159 191 227 268 313 345 379 417 459

Pack Material 101 125 151 179 211 247 272 299 330 361

Finished Goods 594 700 781 872 967 1065 1171 1286 1417 1557

 Total 823 984 1123 1278 1446 1625 1788 1964 2164 2377

The table below shows the number of pallets expected to be moved daily on site

• A New roadway (290m) along the North side of the site for FG truck exit from site.

• A new loading/ offloading bay to accommodate 5trucks would be constructed by the 2000sqm Warehouse.

• Increase storage capacity on site by 2000 pallets

Proposed site evolution plan

Phase 1: Completion of the 2000m2 ware house (2011)• The 2000m2 warehouse will be used for NSD R/PM • NSD & Soaps FG will be loaded at the NSD loading bay

Phase 2: Completion of the 2000sqm Loading bay and the new road (2012)

• Foods FG will be stored in the 2000m2 warehouse and also serve as NSD overflow(PM)

• All FG will be moved out at the north side of the site. • HPC FG will be loaded out of the NSD loading bay

Phase 3: Mega DC in operation (2013)

• 2000m2 will be used for FG and NSD PM• 24hrs of FG transit storage

Effects of evolution

Phase 1 Site layout

2000sqm Warehouse

New forklift pathwayExisting Warehouse

Phase 2 & 3 Site LayoutNew roadwayLoading and Offloading bay

Driver’s loungeCharging Bay

2000sqm Warehouse

Existing Warehouse

2016-2020 Site layout

Proposed Tea Factory

2000sqm WarehouseSavoury Parking Hall

Loading/Offloading bay

• A New roadway (290m) along the North side of the site for FG truck exit from site.

• A new loading/ offloading bay to accommodate 5trucks would be constructed by the

2000m2 Warehouse.

• Increase storage capacity on site by 2000 pallets

• Enhancement of the current on site warehouse & logistics infrastructure to address

additional volumes for all categories, in line with the business growth ambition.

• Excellent customer service through a less complex logistics network and efficient operation

will be guaranteed.

• Increased FG truck loading will increase stock availability thereby drives down CCFOT losses

and Increased off-loading of RM, which will reduce stock run out in most of the factory.

Benefits