Crookes Brothers Limited · JSE:CKS
Crookes Brothers — Shareholder Meeting (2020)
22 slides from Crookes Brothers's shareholder meeting presentation, 2020
Slide 1: Crookes Brothers Shareholder Feedback 2020
CROOKES BROTHERS SHAREHOLDER FEEDBACK 2020
Slide 2: Agenda
AGENDA HIGHLIGHTS 2019/20 OPERATING ENVIRONMENT OPERATIONAL PERFORMANCE FINANCIAL PERFORMANCE STRATEGY STRATEGIC PERFORMANCE OUTLOOK INVESTMENT CASE 2 CROOKES BROTHERS LIMITED Shareholder Feedback 2020
Slide 3: Highlights 2019/20
HIGHLIGHTS 2019/20 3 CROOKES BROTHERS LIMITED Shareholder Feedback 2020
Slide 4: Highlights 2019/20
HIGHLIGHTS 2019/20 Limited direct impact of Appointment Buyer has withdrawn from COVID-19 lockdown on operations – of new CEO the sale of Renishaw hills due to agriculture is an important and COO risks associated with COVID-19 essential service Good progress made with balance QBV banana project in s
Slide 5: Operating Environment
OPERATING ENVIRONMENT 5 CROOKES BROTHERS LIMITED Shareholder Feedback 2020
Slide 6: Operating Environment
OPERATING ENVIRONMENT As primary producer and essential COVID-19 slowed our Weather patterns in all service, continued operating albeit supply chains, but we regions trend closer towards under strict sanitary and COVID-19 continued to perform their long-term means regulatory conditions Southern Afri
Slide 7: Operational Performance
OPERATIONAL PERFORMANCE 7 CROOKES BROTHERS LIMITED Shareholder Feedback 2020
Slide 8: Operational Performance
OPERATIONAL PERFORMANCE 2020 2019 % change Sugar cane (tons) 679 744 703 409 -3% Bananas (tons) 19 714 23 560 -16% Deciduous fruit (tons)¹ 31 374 28 897 9% Macadamia nuts (tons)² 326 450 -28% Sugar cane Yields on budget in 4 of 6 regions – eSwatini and Malelane below budget Tonnages and quali
Slide 9: Financial Performance
FINANCIAL PERFORMANCE 9 CROOKES BROTHERS LIMITED Shareholder Feedback 2020
Slide 10: Financial Performance
FINANCIAL PERFORMANCE REVENUE GROSS PROFIT% OPERATING PROFIT EBITDA before biological assets before biological assets R704m 30.4% R69m R139m [2019:R666m] [2019:26.7%] [2019:R30m] [2019:R90m] 6% 4% 128% 54% EBITDA% CHANGE IN FAIR VALUE FINANCE COSTS* HEADLINE EARNINGS before biological assets of biol
Slide 11: Strategy
STRATEGY 11 CROOKES BROTHERS LIMITED Shareholder Feedback 2020
Slide 12: Strategy
STRATEGY Move away from being a PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 collection of independent Be a top-third Offer industry Produce and Do what is right farms to an integrated farmer through leading risk- supply superior to remain business in which there is the sustainable adjusted returns quality p
Slide 13: Strategic Performance
STRATEGIC PERFORMANCE 13 CROOKES BROTHERS LIMITED Shareholder Feedback 2020
Slide 14: Strategic Performance: Be a top-third farmer
STRATEGIC PERFORMANCE PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 Be a top-third farmer through sustainable practices Operate and acquire the Match financing and Develop our farms to best farms in the best areas production cash flows their utmost potential • Sold Strathmore and Shalimar • Secured developmen
Slide 15: Strategic Performance: Industry leading risk-adjusted returns
STRATEGIC PERFORMANCE PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 Offer industry leading risk-adjusted returns to shareholders Operating profit before unallocated overheads Capital allocation net of debt (%) 7 300 10 Macadamia nuts R millions Diversify further into 32 250 Deciduous fruit high value crops Su
Slide 16: Strategic Performance: Produce and supply superior quality products
STRATEGIC PERFORMANCE PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 Produce and supply superior quality products profitably Consolidate farming units Continuous improvement of farming operations through to extract synergies skilled up workforce, precision farming and automation • Perceived as platform company
Slide 17: Strategic Performance: Do what is right
STRATEGIC PERFORMANCE PILLAR 1 PILLAR 2 PILLAR 3 PILLAR 4 Do what is right to remain profitable over the long-term Expand existing and develop new Take ESG seriously Grow our people community partnerships SA Area under crop ownership (hectare) Bananas, 0, • Performance assessed annually by • Create
Slide 18: Outlook
OUTLOOK 18 CROOKES BROTHERS LIMITED Shareholder Feedback 2020
Slide 19: Outlook
OUTLOOK There is a rejuvenated and optimistic atmosphere amongst the management team Despite COVID-19 impact on economic activity and disposable income, we look forward to an improved performance from our sugar cane, deciduous fruit and macadamia divisions in the year ahead The sale of assets design
Slide 20: Investment Case
INVESTMENT CASE 20 CROOKES BROTHERS LIMITED Shareholder Feedback 2020
Slide 21: Investment Case
INVESTMENT CASE A collection of vertically integrated A hybrid model that extracts farms transforming into a vertically A diversified portfolio synergies through centralisation whilst integrated agri-business adding across regions and crops encouraging an owner-driven culture value to primary produc
Slide 22: Crookes Brothers Shareholder Feedback
CROOKES BROTHERS SHAREHOLDER FEEDBACK 2020