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HALF YEAR RESULTSHALF YEAR RESULTS

JANUARYJANUARY -- JUNE 2010JUNE 201027 SEPTEMBER, 2010 J.A. JereManaging Director

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TurnallTurnall Holdings Limited,Holdings Limited, formerly theformerly theBuilding and Construction division of Building and Construction division of

TH Zimbabwe Limited,TH Zimbabwe Limited, operates through two divisionsoperates through two divisions

TurnallTurnall Building ProductsBuilding Products -- 19431943

TurnallTurnall Piping ProductsPiping Products -- 19721972

Sole shareholder of four dormant companiesSole shareholder of four dormant companiesnamelynamely Acacia Holdings Limited Acacia Holdings Limited

HasttHastt

Corporation LimitedCorporation Limited

HasttHastt Discs (Private) LimitedDiscs (Private) Limited

Tractor and Equipment (Tractor and Equipment ( PvtPvt ) Ltd) Ltd

HISTORYHISTORY

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Turnall Holdings serves its Zimbabwe & Export

Customer needs as the leading brand andmanufacturer of quality shelterand pipe products.

We will continue to grow and sustain our

profitability to satisfy Stakeholders and ourselvesby demonstrating our real commitment to ourvalues, environment and the community.

OUR VISIONOUR VISIONOUR VISION

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H.H. NkalaNkala --Non Executive ChairmanNon Executive ChairmanJ.P.J.P. MutizwaMutizwa --Non Executive Deputy ChairmanNon Executive Deputy ChairmanJJ JereJere --ExecutiveExecutiveR.SR.S DubeDube --ExecutiveExecutiveJ.J. MushayavanhuMushayavanhu --Non ExecutiveNon ExecutiveR.R. LikukumaLikukuma --Non ExecutiveNon ExecutiveC.EC.E DhlembeuDhlembeu --Non ExecutiveNon ExecutiveL.L. ManyengaManyenga --Non ExecutiveNon ExecutiveP.C.CP.C.C MoyoMoyo --Non ExecutiveNon ExecutiveC. M.C. M. GadzikwaGadzikwa --Non ExecutiveNon Executive

DIRECTORATEDIRECTORATE

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EXECUTIVE MANAGEMENTEXECUTIVE MANAGEMENT

J ohn A. J ohn A. J ere J ere -- Managing DirectorManaging DirectorRobert S.Robert S. DubeDube -- Finance DirectorFinance Director

ElizabethElizabeth MamukwaMamukwa -- HR DirectorHR DirectorEdwin KondoEdwin Kondo -- Marketing DirectorMarketing Director

FrancisFrancis ChigwedereChigwedere -- Technical Director Technical Director

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BUILDING PRODUCTSBUILDING PRODUCTSLeaders in Quality Domestic and IndustrialLeaders in Quality Domestic and IndustrialRoofingRoofing

Building ProductsBuilding ProductsEnduriteEndurite

Trafford Tile,Trafford Tile, PantilePantile

Flat Sheet SlatesFlat Sheet Slates

ReededReeded Roof TilesRoof TilesFascia, Barge Boards,Fascia, Barge Boards, TapboardTapboard

Curved HutsCurved Huts

Accessories , Rainwater Goods Accessories , Rainwater Goods

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77

PANTILEPANTILE

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EnduriteEndurite RoofingRoofingLow CostMarket

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99

Trafford TileTrafford TileLow / MediumIncome Market

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1010

TurnallwareTurnallwareOffice/Home

Market

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1111

PIPING PRODUCTSPIPING PRODUCTSPipesPipes

PressurePressure

(66%)(66%)

Sewer Sewer (34%)(34%)

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1212

RAW MATERIALSRAW MATERIALS

Cement (70%)Cement (70%)Circle CementCircle Cement (Harare)(Harare)

P.P.C.P.P.C. ((BulawayoBulawayo ))

SinoSino --CementCement ((GweruGweru ))

ImportsImports

Erratic supply of Erratic supply of fibrefibre

Regional PricingRegional Pricing

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1313

RAW MATERIALSRAW MATERIALSCementCement (70%)(70%)

ChrysotileChrysotile FibreFibre (10%)(10%)ImportationImportation

BrazilBrazilRussiaRussia

High world demandHigh world demand

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1414

MANUFACTURINGMANUFACTURING

Factories:Factories: HarareHarare -- 2 sheeting lines2 sheeting lines BulawayoBulawayo -- 1 sheeting line1 sheeting line

-- 1 pipe plant1 pipe plantPersonnel:Personnel:

Permanent (500)Permanent (500)

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1515

TOTAL QUALITYTOTAL QUALITYQuality Products (SABS / SAZ)Quality Products (SABS / SAZ)

SAZ 113:1987 (Pipes) 195:1976 (Sewers)SAZ 113:1987 (Pipes) 195:1976 (Sewers)

SABS 1223:2000 (Pipes) 819:1985 (Sewers)SABS 1223:2000 (Pipes) 819:1985 (Sewers)

SABS 685:1998 (Sheets) 803:1995 (Boards)SABS 685:1998 (Sheets) 803:1995 (Boards)

IS0 9000:2000IS0 9000:2000 -- QualityQuality

ISO 14001ISO 14001 -- EnvironmentalEnvironmentalISO 18000ISO 18000 -- Health and SafetyHealth and Safety

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1616

MARKETSMARKETS

Local (94% of Sales)Local (94% of Sales)Building ProductsBuilding Products

B2BB2B B2CB2C

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1717

MARKETSMARKETS

Pipe ProjectsPipe Projects

PressurePressure Sewer PipesSewer Pipes

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1818

Export (6% of Sales)Export (6% of Sales)South AfricaSouth AfricaNamibiaNamibia

Botswana (10%)Botswana (10%)MozambiqueMozambique (90%)(90%)Malawi / AngolaMalawi / AngolaU.S.A.U.S.A.

MARKETS

O O OC O GOVERVIEW OF LOCAL OPERATING

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1919

OVERVIEW OF LOCAL OPERATINGOVERVIEW OF LOCAL OPERATINGENVIRONMENTENVIRONMENT

FAIRLY STABLE POLITICAL AND ECONOMIC ENVIRONMENTFAIRLY STABLE POLITICAL AND ECONOMIC ENVIRONMENTWHEN COMPARED TO 2008 & PRIOR YEARS.WHEN COMPARED TO 2008 & PRIOR YEARS.

INTRODUCTION OF A MULTI CURRENCY REGIME & PRICE STABILITYINTRODUCTION OF A MULTI CURRENCY REGIME & PRICE STABILITY

NECESSARY CONDITIONS ARE CREATED FOR ECONOMIC RECOVERYNECESSARY CONDITIONS ARE CREATED FOR ECONOMIC RECOVERY

ECONOMY TO GROW 7.7%, 5.4% AND NOW 8.1%ECONOMY TO GROW 7.7%, 5.4% AND NOW 8.1%

HOWEVER NO MAJOR SIGNS OF FDIHOWEVER NO MAJOR SIGNS OF FDI

MARKET STILL EXPERIENCING TIGHT LIQUIDITY ASMARKET STILL EXPERIENCING TIGHT LIQUIDITY ASREFLECTED IN THE HIGH BORROWING RATESREFLECTED IN THE HIGH BORROWING RATES

FOCUS IS ON SURVIVALFOCUS IS ON SURVIVAL ISSUESISSUES FOOD, FEES ETC.FOOD, FEES ETC.

OPERATING ENVIRONMENTOPERATING ENVIRONMENT

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2020

OPERATING ENVIRONMENTOPERATING ENVIRONMENT

IMPACT OF SLUGGISH GROWTH FELT AT THE LEVEL OFIMPACT OF SLUGGISH GROWTH FELT AT THE LEVEL OF MORTGAGES,MORTGAGES,

CAPCITY UTILIZATION LEVELSCAPCITY UTILIZATION LEVELS

GENERAL SPENDING POWERGENERAL SPENDING POWER

NO SIGN OF DONOR MONEY FOR THE LARGE INFRANO SIGN OF DONOR MONEY FOR THE LARGE INFRA --

STRUCTURAL PROJECTS DURING FIRST HALF 2010STRUCTURAL PROJECTS DURING FIRST HALF 2010

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OPERATING ENVIRONMENTOPERATING ENVIRONMENT

ON THE POSITIVE SIDE AND UNDERPINNINGON THE POSITIVE SIDE AND UNDERPINNING THE VOLUME SALES ACHIEVED THIS FAR THE VOLUME SALES ACHIEVED THIS FARWEREWERE PROCEEDS FROM TOBACCO 120M KG SOLD THISPROCEEDS FROM TOBACCO 120M KG SOLD THIS

FARFAR

COTTON AND MAIZE WHICH HAVE SHOWNCOTTON AND MAIZE WHICH HAVE SHOWNGROWTHGROWTH

USD SALARIES WHICH ARE DRIVING PRIVATEUSD SALARIES WHICH ARE DRIVING PRIVATEHOME CONSTRUCTIONHOME CONSTRUCTION

LOCAL AUTHORITIES UPGRADE OF SEWER ANDLOCAL AUTHORITIES UPGRADE OF SEWER ANDWATER RETICULATIONWATER RETICULATION

2121

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SALES VOLUMES (T)SALES VOLUMES (T)

EXPORT LOCAL TOTAL

JAN-JUNE 10 1 853 26 824 28 677

JAN-JUNE 09 2 059 8 735

JAN- JUNE 08 4 496 18 597 23 093

2222

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SALES VOLUME COMMENTARYSALES VOLUME COMMENTARY TOTAL VOLUMES AT 28 677 T ARE 167% AHEAD OF TOTAL VOLUMES AT 28 677 T ARE 167% AHEAD OFSAME PERIOD LAST YEAR.SAME PERIOD LAST YEAR.

90% OF THESE CAME FROM LOCAL BUILDING90% OF THESE CAME FROM LOCAL BUILDINGPRODUCTS ( ENDURITE/CORRUGATED SHEETS)PRODUCTS ( ENDURITE/CORRUGATED SHEETS)

PIPES DID NOT FEATURE STRONGLY DURING FIRSTPIPES DID NOT FEATURE STRONGLY DURING FIRSTHALF (MTSHABEZI PIPE LINE)HALF (MTSHABEZI PIPE LINE)

2323

O O S

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2424

EXPORT VOLUMESEXPORT VOLUMES

ASBESTOS BAN OF JULY 2008 IN SOUTH ASBESTOS BAN OF JULY 2008 IN SOUTH AFRICA AND THE DOMINO EFFECT IN OTHER AFRICA AND THE DOMINO EFFECT IN OTHERREGIONAL MARKETSREGIONAL MARKETS --NEGATIVE IMPACTNEGATIVE IMPACT

DIVERTED VOLUMES INTO MOZAMBIQUE ANDDIVERTED VOLUMES INTO MOZAMBIQUE ANDBOTSWANABOTSWANA

LIMITED DISTRIBUTION CAPACITY (IN GROWTHLIMITED DISTRIBUTION CAPACITY (IN GROWTHPHASE)PHASE)

STRAIGHT SHEETING PRODUCT LINE IS LOWSTRAIGHT SHEETING PRODUCT LINE IS LOWMARGINMARGIN MET STIFF COMPETITION FROM OTHER SUPPLIERSMET STIFF COMPETITION FROM OTHER SUPPLIERS

( EFFECTS OF THE GLOBAL DOWNTURN)( EFFECTS OF THE GLOBAL DOWNTURN)

COMPETITION FROM ALTERNATIVESCOMPETITION FROM ALTERNATIVES

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FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS

2525

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2626

FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTSHistorical costHistorical cost

Turnover = $13.6 million Turnover = $13.6 millionExports = $ 0.5 million [ 4% of T/O].Exports = $ 0.5 million [ 4% of T/O].

Admin. Expenses = $2.1 million [ 15.3% of T/O].Admin. Expenses = $2.1 million [ 15.3% of T/O].Selling & Distribution Expenses = $0.72 million [5.3%]Selling & Distribution Expenses = $0.72 million [5.3%]Profit from operations = $1.5 million [ 11 % return].Profit from operations = $1.5 million [ 11 % return].Attributable profit = $ 0.98 million.Attributable profit = $ 0.98 million.

Earnings per share = 0.20 centsEarnings per share = 0.20 cents

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2727

FINANCIAL POSITIONFINANCIAL POSITIONHistorical figuresHistorical figures

Capital employed = $32.2 million.Capital employed = $32.2 million.$ 1.4 million invested in Property, Plant and$ 1.4 million invested in Property, Plant andEquipment.Equipment.Stock days = 57 days.Stock days = 57 days.Debtors days = 43 daysDebtors days = 43 days

CashCash = $866 226= $866 226ShortShort --term borrowings = $940 282term borrowings = $940 282

INCOME STATEMENT HISTORICALNCOME STATEMENT HISTORICAL

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Sixmonths Six months Audited year

ended ended ended30.06.2010 30.06.2009 31.12.2009

Continuing operations US$ US$ US$

Revenue - local 13,103,464 3,368,526 15,481,191Turnover -export 474,150 555,827 1,012,090

13,577,614 3,924,353 16,493,281

Cost of sales (9,314,812) (1,932,566) (10,402,926)

Gross profit 4,262,802 1,991,787 6,090,355Other income 18,735 13,715 15,662Selling and distribution expenses (718,056) (239,090) (860,613)

Admins trative expenses (1,882,152) (711,334) (2,425,249)Management fees (203,664) (50,035) (247,399)

Profit from continuing operations 1,477,665 1,005,043 2,572,756

Finance income 9,016 1,010 4,030Finance costs (103,309) (114,164) (189,256)

Profit before taxation 1,383,372 891,889 2,387,530Taxation (398,846) (585,680) (851,874)Current (255,517) (430,423) (1,245,805)Deferred (143,329) (155,257) 393,931

Profit for the year from continuing operationsattr ibutable to equi ty holders 984,526 306,209 1,535,656Other comprehensive income for the year, after tax:Revaluation of property, plant and equipment - - 6,582,675Net change in fair value of available-for-sale financialassetsOther comprehensive income for t he period, net of tax - - 6,582,675Total comprehensive income for the year 984,526 306,209 8,118,331

Number of shares in issue (000s) 483,945 483,945 483,945Basic earnings per share (cents) 0.2034 0.0633 0.3173

CONSOLIDATED STATEMENT of FINANCIAL POSITIONCONSOLIDATED STATEMENT of FINANCIAL POSITIONSi h d d Six months ended A di d d d

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Six months ended30.06.2010

US$

Six months ended30.06.2009

US$Audited year ended

31.12.2009US$

ASSETSNon- current assets 25,722,275 18,733,332 25,159,958Property, plant and equipment 25,722,275 18,733,332 25,159,958Current assetsInventories 3,971,278 2,890,321 3,392,815Short term investments 20,982 25,583 24,708Trade and other receivables 4,149,495 1,846,669 2,912,978Prepayments 1,550,458 131,241 306,997

Cash and cash equivalents 1,856,496 406,645 996,746Total current assets 11,548,709 5,300,459 7,634,244

37,270,984 24,033,791 32,794,202Total assetsEQUITYCapital and reserves

Share capital 4,839,4490

0Non- distributable reserve 7,708,510 15,106,292 12,494,688Revaluation reserve 6,582,675 0 6,582,675Reserve for share option granted (27,000) 0 0Retained earnings 2,520,182 306,210 1,535,656Total capital and reserves 21,623,816 15,412,502 20,613,019LIABILITIESNon-current liabilitiesLoans and borrowings 1,156,716 0 629,545Deffered tax liability 6,866,499 5,977,514 6,723,170Total non-current liabili ties 8,023,215 5,977,514 7,352,715Current liabilitiesLoans and borrowings 940,282 0 201,141Trade and other payables 4,630,509 1,787,541 2,882,446Provisions 502,359 247,614 299,066Taxation 1,500,815 408,620 1,245,806Bank overdraft 49,988 200,000 200,010Total current liabilities 7,623,953 2,643,775 4,828,469Total liabili ties 15,647,167 8,621,289 12,181,184Total equity and liabil ities 37,270,984 24,033,791 32,794,203

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3030

DIVIDENDSDIVIDENDS

The Board, considering the current economicThe Board, considering the current economicenvironment and the need to conserve cash forenvironment and the need to conserve cash forworking capital purposes, resolved not to declareworking capital purposes, resolved not to declarean interim dividend for the half year to 30 June,an interim dividend for the half year to 30 June,2010.2010.

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OUTLOOK PERIODOUTLOOK PERIOD

3131

LOCAL DEMAND OUTLOOK 2010LOCAL DEMAND OUTLOOK 2010

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3232

LOCAL DEMAND OUTLOOK 2010LOCAL DEMAND OUTLOOK 2010

WE ARE OPTIMISTIC THE CURRENT VOLUMEWE ARE OPTIMISTIC THE CURRENT VOLUMETRENDS WILL CONTINUE TO YEAR END.TRENDS WILL CONTINUE TO YEAR END.

YTD SEPTEMBER SALES ARE AT 45 000TYTD SEPTEMBER SALES ARE AT 45 000T AGAINST FULL YEAR PLAN OF 50 000T AGAINST FULL YEAR PLAN OF 50 000T

WE CONTINUE TO BENEFIT FROM TOBACCOWE CONTINUE TO BENEFIT FROM TOBACCOPROCEEDSPROCEEDS -- 120M KGs TOBACCO & COTTON120M KGs TOBACCO & COTTON

AND MAIZE. AND MAIZE.

LOCAL AUTHORITIES PROJECTS FOR SEWERLOCAL AUTHORITIES PROJECTS FOR SEWER AND WATER HAVE KICKED OFF AND WATER HAVE KICKED OFF

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LOCAL DEMAND OUTLOOK contLOCAL DEMAND OUTLOOK cont ..

CAPACITY UTILIZATION NOW STANDS ATCAPACITY UTILIZATION NOW STANDS AT

AROUND 75% FROM A FIRST HALF LEVELAROUND 75% FROM A FIRST HALF LEVELOF 50OF 50 --60%60%PIPE ORDER BOOK FULL ON THE BACK PIPE ORDER BOOK FULL ON THE BACK OF LOCAL AUTHORITY PIPE DEMANDOF LOCAL AUTHORITY PIPE DEMANDPIPE PLANT ON CARE AND MAINTENANCEPIPE PLANT ON CARE AND MAINTENANCEFOR TWO YEARS NOW RUNNING.FOR TWO YEARS NOW RUNNING.

3333

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FIBRE SUPPLYFIBRE SUPPLYPERTINENT TO HIGHLIGHT THAT THEPERTINENT TO HIGHLIGHT THAT THE

THREAT ON THE BUSINESS DUE TO THREAT ON THE BUSINESS DUE TOFIBRE SUPPLIES HAS BEEN DEALT WITHFIBRE SUPPLIES HAS BEEN DEALT WITH

SECURED ADEQUATE SUPPLIES OFSECURED ADEQUATE SUPPLIES OFIMPORTED FIBRE REPRESENTING 6IMPORTED FIBRE REPRESENTING 6

MONTHS COVER.MONTHS COVER.IMPACT THOUGH IS ON GROSS MARGINSIMPACT THOUGH IS ON GROSS MARGINSGIVEN THAT IMPORTS ARE AT USD 1200/TGIVEN THAT IMPORTS ARE AT USD 1200/TAGAINST A LOCAL COST OF USD 690/TAGAINST A LOCAL COST OF USD 690/T

3434

EXPORT VOLUME OUTLOOKEXPORT VOLUME OUTLOOK

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3535

EXPORT VOLUME OUTLOOKEXPORT VOLUME OUTLOOK

EXPORT VOLUME GROWTH WILL BE KEY BEYONDEXPORT VOLUME GROWTH WILL BE KEY BEYOND20102010

-- THETHE NON ASBESTOS PLANT IS BEING DELIVEREDNON ASBESTOS PLANT IS BEING DELIVERED AND COMMISSIONING WILL BE IN DECEMBER 2010. AND COMMISSIONING WILL BE IN DECEMBER 2010.

--TECHNOLOGY TO ALLOW TURNALL TO PENETRATETECHNOLOGY TO ALLOW TURNALL TO PENETRATETHE LUCRATIVE SA & BOTSWANA MARKET ANDTHE LUCRATIVE SA & BOTSWANA MARKET ANDOFFER A FULL RANGE OF FIBRE CEMENT PRODUCTSOFFER A FULL RANGE OF FIBRE CEMENT PRODUCTS.

-- SEE A RETURN TO 20%SEE A RETURN TO 20% --30% EXPORT VOLUME30% EXPORT VOLUMECONTRIBUTIONCONTRIBUTION

3 CHALLENGES3 CHALLENGES

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3636

3 CHALLENGES3 CHALLENGES

FORFOR DEVELOPING COUNTRIESDEVELOPING COUNTRIESFOR OUR PEOPLE:FOR OUR PEOPLE:

Affordable Affordable HousingHousingSafe shelter Safe shelter

Access to Access to Safe Drinking Water Safe Drinking Water About 30% of developing nations About 30% of developing nationspopulation do not have accesspopulation do not have access

EffectiveEffective SanitationSanitationLess than 50% of developing nations population haveLess than 50% of developing nations population haveaccessaccess

VOLUMEVOLUME OUTLOOK BEYOND 2010OUTLOOK BEYOND 2010

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3737

VOLUMEVOLUME OUTLOOK BEYOND 2010OUTLOOK BEYOND 2010

WATER AND SANITATIONWATER AND SANITATION BACKLOG INBACKLOG INZIMBABWEZIMBABWE

LAND REDISTRIBUTIONLAND REDISTRIBUTION --INFRASTRUCTUREINFRASTRUCTURE

BUILDING SOCIETY HOUSING DELIVERYBUILDING SOCIETY HOUSING DELIVERYSCHEMES ( USAID)SCHEMES ( USAID)

THESE IN THE LIGHT OF MILLENIUMTHESE IN THE LIGHT OF MILLENIUMDEVELOPMENTAL GOALS; MDGDEVELOPMENTAL GOALS; MDG s ( WSSD ,RIO,s ( WSSD ,RIO,JHB,DOHA)JHB,DOHA)

LOW COST HOUSING DEMAND PROFILELOW COST HOUSING DEMAND PROFILE

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LOW COST HOUSING DEMAND PROFILELOW COST HOUSING DEMAND PROFILE

BACKLOG

( UNITS)

5 YEAR PERIODSPREAD2011* 2010 2011 2012 2013

HIGHDENSITY

488

367

85000 95000 97673 100

000

111

367

TOTAL

DEMAND TILES (000)

8 790 1 530 1 710 1 758 1 800 2 004

TOTALDEMAND

TONNES

398741

69 400 77 565 79 748 81 648 90 928

3838Extract from The National Housing Policy Document 2009

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QUESTIONSQUESTIONS

??