Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — Corporate Update (January 2022)
25 slides from Calgro M3's corporate update, Jan 27, 2022
Slide 1: Site Visit Presentation
Site Visit Presentation January 2022 #sustainableactions www.calgrom3.com
Slide 2: Disclaimer
Information contained in this site visit presentation refers, unless otherwise stated, to the interim results as at 31 August 2021 Disclaimer Calgro M3 has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information contained in this presentati
Slide 3: #sustainableactions
#sustainableactions #sustainableactions Continued implementation of: Optimal capital allocation Increase open market sales and complete opportunities in Residential Property Development business Grow market share and sales through product enhancement and increase footprint of Memorial Parks business
Slide 4: Improved diversification
Improved diversification Revenue Total cash receipts generated Memorial Parks from Memorial Parks 7% R39.4 million, sufficient to cover Group’s administrative expenses R36 million during the period Objective: grow cash receipts from Memorial Parks to support all Residential Group overheads and inter
Slide 5: Scale and activity
Scale and activity Fleurhof - Gauteng Witpoortjie - Gauteng South Hills - Gauteng Increased opportunities in these three developments to >3 900
Slide 6: Construction activity (Video)
Construction activity (Video) 6
Slide 7: Significant amount of construction taken place
Significant amount of construction taken place Belhar – Western Cape Bridge City - KZN 7
Slide 8: Memorial Parks
Memorial Parks Durbanville – Western Cape 8
Slide 9: Memorial Parks
Memorial Parks Operational in Gauteng, Western Cape and Free Fourways - Gauteng State Total cash receipts increased by 52,7% to R39.4 million Revenue increased by 58.2% to R30.5 million Increased GP margin to 59,5% On target GP margin Four parks producing revenue 9
Slide 10: Financial Understanding
FINANCIAL 3 UNDERSTANDING
Slide 11: Financial summary
Financial summary Revenue (R’000) & Earning/(loss) per share Cash generated from GP margin (%) (cents) operations (R’000) 133 171 39.56 576 214 395 829 19,7% HY 2020 115 662 HY 2020 HY 2021 HY 2021 7,9% -30.46 HY 2020 HY 2021 HY 2020 HY 2021 Ensure strong cash and Drive to sustain sales and diligent
Slide 12: Understanding the balance sheet
Understanding the balance sheet 1. Operating Cycle • Current vs Non-current Unaudited Audited Feb Unaudited Aug 2021 2021 Aug 2020 Non-current assets 305 990 308 775 320 981 Current assets 2 520 764 2 467 804 2 692 540 Total assets 2 520 764 2 467 804 2 692 540 Total Equity 877 646 828 057 782 081 N
Slide 13: Understanding Property Development accounting
Understanding Property Development accounting 1. Over time type units 1. Point in time type units - bulk deals, freestanding houses (Res 1), - Sectional title units (Res 3), bulk deals/clients Fully subsidized (RDP) etc Cashflow: Cashflow: Received at the end once unit is 100% complete Received over
Slide 14: Understanding Memorial Parks accounting
Understanding Memorial Parks accounting Revenue Indicative Revenue Indicative • Burial - Recognised amount amount immediately • Reservation - (example) (example) Amortised over 8 years Total sales price 24 500.00 Burial service (open & close) 3 000.00 • Amortised over 18 Less VAT 3 195.65 Maintenanc
Slide 15: Debt / Funding
Debt / Funding Types of debt: • Debt capital markets (R336 million at August 2021) • NHFC (R215 million) • Proparco (R387million) • OPIC/DFC ($20mil facility available) Witpoortjie - Gauteng 15
Slide 16: Covenants
Covenants 31 Aug 2021 28 Feb 2021 31 Aug 2020 28 Feb 2020 Net debt to equity ratio 0.84 0.99 1.04 1.04 Debt service cover ratio 4.63 1.40 3.69 1.93 Nasrec - Gauteng Date Target Maximum allowed net debt: equity ratio for By 28 February 2022 0.90:1 the Group is 1.5 : 1 By 28 February 2023 0.80:1 Minim
Slide 17: Borrowing maturities
Borrowing maturities Detail Rand (R’000) Opening balance 1 March 2021 (gross) 958 000 New debt - Maturity Rand Maturity Rand Debt repaid (20 000) profile (R’000) profile (R’000) FY 2022 48 700 FY 2025 211 750 Closing balance – 31 August 2021 938 000 FY 2023 233 500 FY 2026 107 500 FY 2024 282 800 FY
Slide 18: Looking Forward
4 LOOKING FORWARD |
Slide 19: What does Calgro M3 have to work with?
What does Calgro M3 have to work with? Housing shortage remains high Interest rate low and to remain low for a period of time 66,5% housing market in Gauteng and Western Cape Public sector budgets to increase Strong pipeline to capitalise on Range of housing from subsidised to >R1 millio
Slide 20: Take away – what lies ahead?
Take away – what lies ahead? Well positioned to capitalise on market demand Liquidity to remain conservative Higher cash balances Sale of non-core assets and rental property Utilisation of proceeds: Further settlement of debt Free-up working capital and retain higher cash balance Sha
Slide 21: Valuation
Valuation • To value Calgro we place the property portfolio on a 40% discount to the market-adjusted NAV • We increase our Target Price for Calgro is R8.06 (from R7.06). Calgro is trading at a significant discount to realisable NAV 21
Slide 22: Building legacies. Changing lives
Building legacies. Changing lives “A man is not a man until he has a house of his own” Nelson Mandela 22
Slide 23: Thank you
Thank you Available on website: Wikus Lategan (CEO) Email: wikus@calgrom3.com 2021 Unaudited condensed Waldi Joubert (FD) Email: waldi@calgrom3.com consolidated interim financial results for Sayuri Naicker (FD incumbent) Email: sayurin@calgrom3.com the six months ended 31 August 2021 Video of Ca
Slide 24: Business model – Residential Property
] Business model Residential Property Identify project and due diligence @) Secure land Township (3) establishment Top structure planning and design (5) Infrastructure (outsourced) Marketing and sales Value is created through a turnkey approach to capitals Transfer to end-user (erven for houses and
Slide 25: Business model – Memorial Parks
. ae Business model CALGRO M3 Group Memorial Land identified/ Parks acquisition Landscaping and infrastructure development Value is created (outsourced) through operating in strategic locations and providing superior products and customer service Marketing and sales e Holistic burial and remembrance