Financial report to shareholders for the half year ended 31 March 2013

CHAIRMAN'S REPORT Overview of the Group's operations and performance Group turnover for the half year declined by 13% to $48 million compared to $55.4 million achieved in the same period in prior year. Revenue declined by 25% and 28% for Poultry and Specialised Divisions respectively due to the impact of inadequate working capital. Growing demand for hardware and agro-inputs in the Retail Division saw Retail register an 8% revenue growth during the period. Of the total turnover, Poultry Division contributed 42% (2012 H1 50%), Specialised 11% (2012 H1 13%) and Retail 47% (2012 H1 37%). The Group posted an operating profit from continuing operations before depreciation and financing costs (EBITDA) of $553 297 against $272 360 in prior year. Financing costs for the period increased to $1.7 million from $1.5 million in the comparable period resulting in a loss before tax of $1.8 million against $1.3 million posted in prior year. Discounting the non-recurring profit of US$2.9 million from disposal of non-core assets realized in prior year, the Group registered some recovery. However, low capacity utilization and heavy financing costs still weighed down on the business restricting turnaround. Operational improvements were noted at Victoria Foods and Poultry following the completion of PTA projects. As at 31 March 2013, the Group's short term borrowings stood at $13.84 million (2012 H1 - $14.1 million). POULTRY DIVISION AGRIFOODS Volumes increased by 2% to 37 909 tonnes. Sales continued to be firm due to increased viability of small to medium scale poultry projects following the imposition of duties on imported chickens as well as a growth in demand for beef feeds in the Southern Region due to the impact of drought in the first three months of the half year. The period was characterized by steep escalations in the prices of maize and soya meal, as well as availability thereof which restricted volume growth during the period.

hectares with maize, maize seed, soya-beans and sugar beans and are expecting above average yields for crops. The Estate continued to face and deal with land acquisition threats. Directors are hopeful that this issue will be resolved sustainably through concerned authorities as the entity is already broadly owned by indigenous Zimbabweans through CFI's listed status and Government is indirectly one of the major shareholders through its stake in the ZIMRE Group. The farm is also a significant contributor to food security and poultry breeding, both of which are of a strategic nature to the country. CREST BREEDERS INTERNATIONAL The half year was characterized by feed cost escalations and labor issues following implementation of short time towards the end of the first quarter. These issues resulted in productivity fluctuations, with stabilization only returning when normalcy had returned to the farms. The entity had 1057 hectares of its land compulsorily acquired. Representations to reverse the acquisition are being made and the Board believes that the issue will be resolved in the interest of promoting poultry production and food security in the country. SUNCREST CHICKENS Suncrest had a difficult first half trading owing to low throughput and intermittent plant availability due to the aged nature of the production facility. The Board and management remain committed to resolving the production bottlenecks at Suncrest in order to restore viability. VETCO Pursuant to the Group's business streamlining strategies and the need to fully leverage group synergies, this SBU was merged into Farm & City effective 1 April 2013. The business traded profitably for the period under review. SPECIALISED DIVISION VICTORIA FOODS The business reported a positive performance in the six months period although the potential was restrained due to inadequate working capital. The equity transaction the Group is finalizing will enhance Victoria Foods' business and restore its competitiveness. KOBENHAVN LOGISTICS The unit was disbanded at the end of the half year period, with the remaining trucks in Kobenhavn being returned to the SBUs who had contributed the units at its formation. This measure was in recognition of the consideration around business re-engineering initiatives being pursued by the Group and the fact that only the Poultry Division will require the significant capacity Kobenhavn was conferring to the Group's operations going forward. MAITLANDS ZIMBABWE There was little progress on the joint venture projects due to the continued unavailability of long-term funds for development projects.

RETAIL DIVISION FARM & CITY Turnover grew by 8% relative to the prior year, spurred by increased demand for agro-inputs and improved suppliers' support to the business. Farm & City invested in improving the image of its branches. Farm & City continued with upgrading its point of sale system as well as technologically linking its branch network so as to improve availability of accurate, real time information. The business performed well despite experiencing a decline in its rental income following Afrofoods's liquidation. Good progress has been made in identifying new tenants for the vacated shops. RECAPITALISATION UPDATE AND OUTLOOK Further to the announcements made at the Group's AGM in March 2013, the Victoria Foods equity transaction is on course. The transaction has now been referred to shareholders for approval as will contemporaneously appear in the press together with publication of these results. The investment will be concluded once shareholders and regulatory approvals have been obtained. This investment should further strengthen the recovery registered at Victoria Foods in the first half of the year and reposition the business for significant growth and sustainable recovery. The Group's discussions regarding a joint venture at Suncrest Chickens are at an advanced stage and this should see the resolution of the bottleneck and inefficiencies imposed by the aged abattoir on the poultry operations. The Group is pursuing opportunities for other strategic tieups with investors along the poultry value addition chain so as to resolve bottlenecks militating against sustainable attainment of operational efficiencies. Whilst these initiatives have taken time, the Board is positive about the developments on hand and the apparent favourable impact they will have on the Group's future. The Board remains committed to undertaking a capital raising transaction at Holding Company level, combining an appropriate mix of equity and appropriately priced medium to long-term debt once the SBU transactions have been completed. The Group's investment in Windmill (Private) Limited remains on the market. ACKNOWLEDGEMENTS On behalf of the Board and Shareholders, l would like to extend my sincere appreciation to our valued customers, suppliers, financiers, other stakeholders and management and staff for their support and commitment in seeing through the Group's restructuring initiatives. S.J. Chihambakwe GROUP CHAIRMAN DIVIDEND DECLARATION In view of the loss incurred by the Group and the need to raise equity capital, the Board considers it inappropriate to declare a dividend for the half-year ended 31 March 2013. P . Hare COMPANY SECRETARY BY ORDER OF THE BOARD 24 May 2013

AGRIMIX Agrimix maintained volumes in the period and continued to trade profitably. HUBBARD ZIMBABWE Hubbard registered a significant performance improvement relative to the previous period following the investment in chillers and hatchers funded by PTA Bank and other technical and operational interventions pursued by management. The SBU still requires additional working capital and to renew its hatchery equipment to further uplift efficiencies. Utilities, in particular power outages, remain a concern at the entity as this increases the cost of production of day old chicks. GLENARA ESTATES The environment controlled poultry houses (ECH) commissioned towards end of last year are yielding positive results, resulting in firm margins and enhanced efficiencies. The investment has enhanced Glenara's poultry facilities' overall capacity. Glenara Estates cropped 700

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Notes

UNAUDITED SIX MONTHS 31.03.13 US$

UNAUDITED SIX MONTHS 31.03.12 US$

AUDITED YEAR TO 30.09.12 US$

Continuing operations Sales Change in fair value of biological assets Revenue Operating profit (loss) before depreciation and financing costs Depreciation expense Impairment of property, plant and equipment Finance costs Loss before tax Income tax credit Loss for the period from continuing operations Discontinued operations Profit for the period from discontinued operations Loss for the period Other comprehensive (loss) income Fair value loss on available-for-sale investments Gains on property revaluation Total other comprehensive (loss) income Total comprehensive (loss) income Loss attributable to: Equity holders of the parent Non-controlling interests 47,987,367 59,824 48,047,191 553,297 (1,230,015) (19,709) (1,694,217) (2,390,644) 626,567 (1,764,077) 55,152,131 264,883 55,417,014 272,360 (926,733) (1,453,334) (2,107,707) 856,376 (1,251,331) 92,349,191 32,175 92,381,366 (1,239,456) (1,818,683) (401,845) (3,407,955) (6,867,939) 2,875,506 (3,992,433)

2.7.1

(1,764,077)

7,918 (1,243,413)

611,912 (3,380,521)

(2,473,666)

(1,029,437)

2,835,067

(1,764,077) (1,764,077)

(1,209,426) (33,987) (1,243,413)

(3,346,534) (33,987) (3,380,521)

Total comprehensive (loss) income attributable to: Equity holders of the parent Non-controlling interests

(2,473,666) (2,473,666) (1.67) 40.44 105,500,875 105,500,875

(1,049,331) 19,894 (1,029,437) (1.15) 37.49 105,500,875 105,455,875

2,815,173 19,894 2,835,067 (3.17) 42.79 105,500,875 105,500,875

Basic loss per share (US cents) Net asset value per share (US cents) Shares in issue Weighted shares in issue

Unique Brands: CFI/09/13

(709,589) (709,589)

(5,221) 219,197 213,976

(35,211) 6,250,799 6,215,588

Financial report to shareholders for the half year ended 31 March 2013
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Notes UNAUDITED 31.03.2013 US$ UNAUDITED 31.03.2012 US$ AUDITED 30.09.2012 US$ CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT RETAINED CAPITAL

NONCONTROLLING

RESERVES US$ Balance at 30 September 2011 Loss for the period Other comprehensive income for the period Disposal of interest in subsidiary Balance at 30 September 2012 Loss for the period Other comprehensive loss for the period Balance at 31 March 2013 NOTES TO THE FINANCIAL STATEMENTS 1.0 49,361,814 6,161,707 55,523,521 (709,589) 54,813,932

LOSSES US$ (7,037,728) (3,346,534) (10,384,262) (1,764,077) (12,148,339)

TOTAL US$ 42,324,086 (3,346,534) 6,161,707 45,139,259 (1,764,077) (709,589) 42,665,593

INTERESTS US$ 153,891 (33,987) 53,881 (173,785) -

TOTAL EQUITY US$ 42,477,977 (3,380,521) 6,215,588 (173,785) 45,139,259 (1,764,077) (709,589) 42,665,593

Non-current assets Property, plant and equipment Investments Total non-current assets Current assets Inventories and biological assets Trade and other receivables Investments Cash and bank balances Non-current assets classified as held for sale Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Equity attributable to owners of the parent Non-controlling interests Total equity Non-current liabilities Long term borrowings Deferred tax liabilities Total non-current liabilities Current liabilities Trade and other payables Short term borrowings Bank overdraft Current tax liabilities Liabilities associated with non-current assets classified as held for sale Total current liabilities TOTAL EQUITY AND LIABILITIES 2.7.3

60,026,644 3,286,442 63,313,086

51,810,103 4,066,442 55,876,545

61,564,485 4,036,443 65,600,928

2.8

2.4 2.5

2.7.3

15,376,261 6,152,757 257,219 594,864 22,381,101 22,381,101 85,694,187

20,239,220 9,877,361 220,201 4,281,293 34,618,075 288,215 34,906,290 90,782,835

17,289,674 7,069,743 259,614 1,783,674 26,402,705 26,402,705 92,003,633

General information The principal activities of the Company, its subsidiaries and joint venture (the Group) is the holding of investments, the letting of properties, the production and sale of fresh produce, the wholesaling and retailing of consumer goods, the manufacture of stock feeds, the provision of animal health requisites, the operation of maize and wheat mills, poultry breeding, production, processing and selling, and the development and management of real estate. Currency of reporting These financial statements are presented in United States Dollars (US$) being the currency of the primary economic environment in which the Group operates.

2.7

42,665,593 42,665,593

39,376,153 173,785 39,549,938

45,139,259 45,139,259

1.1

Basis of preparation The financial statements have been presented on the historical cost basis except for property, plant and equipment and investments that are measured at revalued amounts or fair values. Statement of Compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). UAUDITED 6 months to 31.03.13 US$ 1,230,015 261,640 334,591 2,593,078 257,219 1,100,000 UAUDITED 6 months to 31.03.12 US$ 926,733 2,468,117 3,006,467 5,502,665 220,201 4,100,000 AUDITED YEAR TO 30.09.12 US$ 1,818,683 5,003,551 5,301,697 3,608,317 259,614 1,100,000

2,695,277 5,129,124 7,824,401

1,694,505 5,986,416 7,680,921

2,695,277 6,061,066 8,756,343

1.2

20,953,032 12,670,165 1,173,497 407,499 35,204,193 35,204,193 85,694,187

29,097,038 14,073,481 428 366,622 43,537,569 14,407 43,551,976 90,782,835

24,306,295 13,107,951 532,226 161,559 38,108,031 38,108,031 92,003,633

2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7

Supplimentary information Depreciation on property, plant and equipment Capital expenditure for the period Profit on disposal of property and equipment (included in profit (loss) from operations Biological assets Listed investments Contigent liabilities at reporting date in respect of guarantees given to trade creditors Discontinued Operations In prior year, the Group discontinued operations at Honeydew Farm and also disposed of its interest in Dore & Pitt (see note 2.8). We provide below an analysis of the discontinuance: Profit for the period from discontinued operations Revenue Other gains Expenses Finance cost Profit before tax Tax (charge) credit Profit for the period from discontinued operations

CONSOLIDATED STATEMENT OF CASH FLOWS UNAUDITED 31.03.2013 US$ CASH FLOWS FROM OPERATING ACTIVITIES CASH INFLOWS (OUTFLOWS) BEFORE WORKING CAPITAL CHANGES Cash (utilisation) generated from working capital changes CASH GENERATED FROM (UTILISED BY) OPERATIONS Net interest paid Income taxes paid NET CASH UTILISED IN OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of listed investments Dividend received from investments Purchase of property, plant and equipment Proceeds from disposal of property, plant and equipment NET CASH (UTILISED IN) GENERATED FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Long term loans raised Net short term loans paid (raised) NET CASH (UTILISED IN) GENERATED FROM FINANCING ACTIVITIES NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS AT END OF PERIOD UNAUDITED 31.03.2012 US$ AUDITED 30.09.2012 US$

2.7.1

830,460 (463,047) 367,413 (1,694,217) (19,014) (1,345,818)

(2,672,828) 3,133,153 460,325 (1,453,334) (31,835) (1,024,844)

(5,928,403) 3,845,674 (2,082,729) (3,407,955) (263,406) (5,754,090) 2.7.2

125,503 125,503 (8,900) (93,685) 22,918 (15,000) 7,918

650,925 762,240 1,413,165 (801,542) 611,623 289 611,912

2.7.3 2.7.4 2.8

Non current assets held for sale (properties) Liabilities associated with assets held for sale

288,215 14,412

(437,786) (437,786) (1,830,081) 1,251,448 (578,633)

1,255,599 854,645 2,110,244 3,002,641 1,278,224 4,280,865

2,256,371 (105,199) 2,151,172 (26,776) 1,278,224 1,251,448

Disposal of interest in subsidiary In prior year, the Group disposed of its entire 70% interest in Dore & Pitt (Private) Limited to management and staff of the Company through a management buy out. The total consideration received from the dispoal was $365 048. A loss on disposal of US$40 450 was incurred on the disposal and is included in the statement of comprehensive income. Capital commitments Contracted Authorised but not yet contracted The capital expenditure will be financed from the Company's own resources and existing borrowing facilities.

2.9

3,299,645 3,299,645

1,565,004 1,185,212 2,750,216

253,221 3,448,665 3,701,886

Directors: S. J. Chihambakwe (Chairman), Mrs. G. Muradzikwa (Deputy Chairman), S P Kuipa (Group CEO)*, Mrs. A. R. Chinamo (Financial Director)*, Mrs. P . S Bwerinofa, F Lutz, B.D Mothobi, A. J. Nduna, G G Nhemachena, T Nyika. * Executive Directors

Unique Brands: CFI/09/13

(261,640) 215,163 (46,477)

(2,468,117) 4,385,358 1,917,241

354,405 1,934 (5,003,553) 8,223,356 3,576,142

Cash flows from discontinued operations (included in Group cash flow statement) Net cash outflows from operating activities Net cash inflows from investing activities Net cash inflows from financing activities Net cash outflows

(289,729) 289,565 (164)

(1,593,672) 1,587,500 (6,172)