2nd Quarter Results

ZCCM Invs.Hldgs PLC 14 April 2003 ZCCM Investments Holdings Plc Incorporated in the Republic of Zambia Directors' Quarterly Summary incorporating Financial Results for the quarter ended 31 December 2002 DIRECTORS Mr G K Chibuye (Non-Executive) Chairman of the Board Mr D S Diangamo Acting Secretary to the Treasury Ministry of Finance and National Planning Mr S Mpishi Permanent Secretary Ministry of Mines & Minerals Development Dr A C J Sichinga Permanent Secretary Ministry of Energy & Water Development Dr A Mwenda Deputy Governor - Operations Bank of Zambia Mr E Mutale General Secretary Mineworkers' Union of Zambia Company Secretary W S Musama Management Committee General Manager M Shandavu Chairman Company Secretary W S Musama Technical Investment Manager J M D Patterson Finance and Investment Manager Z Zekko Legal Investment Manager J K Kaite Technical Investment Officer W K Katoto Financial Analyst K K Mulaisho Committee Secretary Environmental Manager J Makumba ZCCM INVESTMENTS HOLDINGS PLC and subsidiary companies DIRECTORS' QUARTERLY SUMMARY The sale of one of the subsidiaries, Smelterco, during the last quarter has had a significant impact on the Group's current consolidated financial figures. Consequently, any comparison with last year's figures needs to take this into account. ZCCM-IH Group sales of K44 525 million were achieved during the quarter ended 31 December 2002 compared to K41 461 million at December 2001. However, an increased group operational expenditure of K51 777 million was recorded during the quarter, compared to K46 405 last year. A net operating loss of K7 252 million was incurred in the quarter, as against K4 944 million loss last year. However, exchange gains amounting to K70 094 million were recorded on account of the Kwacha appreciation at the close of the quarter. During the quarter, Dividends of K5 372 million were received from an associate company, Copperbelt Energy Corporation. The profit after tax for the quarter was K66 234 million, compared to K767 million last year. Subsequent to quarter end, Zambia Privatisation Agency advised that the privatisation of Ndola Lime Company Limited will now proceed with the aim of attracting a Strategic Equity Partner with a 30% stake. This is as a result of the rejection of all the three bids received, as they were deemed commercially and technically unacceptable and did not fully address the privatisation objectives. Bids for a shareholding interest in KCM by a strategic equity partner, submitted by 28 February 2003 and evaluated by the Financial Advisors, Standard Bank London, have been reviewed by the shareholders during March 2003. Ms A O Chifungula, Acting Secretary to the Treasury, was appointed as a Permanent Alternate Director to the Secretary to the Treasury after the end of the quarter under review. By Order of the Board W S Musama Company Secretary Lusaka 14 April 2003 ZCCM INVESTMENTS HOLDINGS PLC GROUP PROFIT/( LOSS) ACCOUNT FOR THE QUARTER ENDED 31 DEC 2002 QUARTER ENDED QUARTER ENDED 31 DEC '02 31 DEC '01 notes K' million K' million Sales 1 44,525 41,461 Cost of sales 2 (51,777) (46,405) Operating profit/(loss) (7,252) (4,944) Other income 7,440 30,723 Exchange gain/(loss) 70,093 (15,029) Environmental expenses (3,562) (2,773) Interest charge (3,322) (7,901) Interest income 341 1,435 Dividend receivable 5,372 Royalty on minerals (444) (275) Profit/(loss) before taxation 68,666 1,236 Income tax (2,432) (469) Retained profit/(loss) 66,234 767 Notes: 1 & 2 Represents revenue /sales and administrative costs/cost of sales for the Company and its subsidiaries. 3 The exchange rates applied are : June 2002 :US$=K4516 December 2002 :US$=K4368 December 2001 :US$=K3800 ZCCM INVESTMENTS HOLDINGS PLC GROUP BALANCE SHEET As at 31 Dec '02 As at 31 Dec '01 K' million K' million Current assets Bank & cash 58,355 26,439 Inventories 43,646 49,174 Metal debtors 0 109,788 Other debtors 253,259 105,305 Total current assets 355,260 290,706 Current liabilities Creditors local 56,806 91,061 Overseas 38,374 18,441 Provisions 286,814 259,757 Taxation 10,977 864 Bank overdraft 0 323 Total current liabilities 392,971 370,446 Net current assets/(liabilities) (37,711) (79,740) Long term receivables 123,154 315,400 Investments 449,409 218,213 Fixed assets 31,668 308,577 Long term borrowings (1,563,587) (1,490,523) Grants/others (2,508) (93,758) Subordinated loan (865,445) (865,445) Total Net Liabilities (1,865,020) (1,687,276) Financed by: Share capital 909 893 Reserves (1,865,929) (1,688,169) Total shareholders' funds (1,865,020) (1,687,276) ZCCM INVESTMENTS HOLDINGS PLC GROUP CASH FLOW STATEMENT Quarter ended Quarter ended 30 Dec '02 30 Dec '01 K' million K' million Operating activities Cash received from customers 22,073 113,667 Cash paid to suppliers and employees (43,099) (134,162) Net cash generated from operating activities (21,026) (20,495) Interest received 305 1534 Interest paid (63) (18) Taxation paid (137) (475) 105 1,041 Net cashflow from operating activities (20,921) (19,454) Investing activities Purchase of fixed assets (3,168) (43,241) Proceeds from sale of fixed assets 58 682 Proceeds from sale of operating units 0 - (3,110) (42,559) Financing activities Long term borrowings received 27,274 23,683 Long term borrowing paid (1,960) - Grants 0 3,674 Net cashflow from investing activities 25,314 27,357 Dividend received 10,301 - 35,615 27,357 Net cash inflow/(outflow) for period 11,584 (34,656) Cash balances at start of period Cash and bank balances 46,772 63,428 Bank overdrafts 0 (1,874) 46,772 61,554 Cash balances at end of period Cash and bank balances 58,356 27,221 Bank overdrafts 0 (323) 58,356 26,898 CORPORATE LOCATIONS Registered Office UK Registrars Mukuba Pension House CAPITA IRG Plc First Floor Bourne House 5309 Dedan Kimathi Road 34 Beckenham Road P O Box 30048 Beckenham LUSAKA Kent BR3 4TU Lusaka, 10101, Zambia England Tel Numbers 260 (01) 221023 Tel No. 020 8639 2000 220351 Fax No. 020 8658 3430 220654 228833 Depository for American Shares Fax Numbers 260 (01) 221057 JP Morgan Chase & Co 220449 60 Wall Street 220727 New York, NY 10260-0060 United States of America E-mail:corporate@zccm-ih.com.zm Tel No. 001 212 648 3207 Kitwe Office Fax No. 001 212 648 5104/5 Investments House Kantanta Street P O Box 20172 Kitwe Tel Numbers 260 (02) 245008 245117 245118 245054 245160 245155 245319 245322 Numbers 260 (02) 245363 245364 245473 E-mail:corporate@zccm-ih.com.zm This information is provided by RNS The company news service from the London Stock Exchange

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