York Timber Holdings Limited · JSE:YRK
York Timber — FY2022 Earnings Presentation
49 slides from York Timber's earnings presentation, 2022
Slide 1: Results Presentation for the Year Ended 30 June 2022
RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2022
Slide 2: Financial Overview
FINANCIAL OVERVIEW Core Revenue EBITDA earnings per share 5% R104 million 38% to R1 839 million to R218 million to 25 cents (2021: R1 929 million*) (2021: R322 million*) (2021: 40 cents loss*) Self Cash flow insurance Total debt from fund operations balance 26% 17% 52% to R381 million to
Slide 3: Operational Highlights
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Slide 4: Excessive rainfall impacted harvesting, log transport and production
Excessive rainfall impacted harvesting, log transport and production of lumber and plywood
Slide 5: Excessive rainfall impacted harvesting, log transport and production
Excessive rainfall impacted harvesting, log transport and production of lumber and plywood
Slide 6: Excessive rainfall impacted harvesting, log transport and production
Excessive rainfall impacted harvesting, log transport and production of lumber and plywood
Slide 7: Excessive rainfall impacted harvesting, log transport and production
Excessive rainfall impacted harvesting, log transport and production of lumber and plywood
Slide 8: Excessive rainfall impacted harvesting, log transport and production
Excessive rainfall impacted harvesting, log transport and production of lumber and plywood
Slide 9: Responses: Preparation for wet weather
Responses Preparation for wet weather Wet deck
Slide 10: Responses: Preparation for wet weather
Responses Preparation for wet weather Wet deck
Slide 11: Responses: Preparation for wet weather
Responses Preparation for wet weather Depot
Slide 12: Responses: Preparation for wet weather
Responses Preparation for wet weather Dezzi forwarder
Slide 13: Highest hectares established and lowest unplanted areas since 2007 fires
Highest hectares established and lowest unplanted areas since 2007 fires
Slide 14: Highest hectares established and lowest unplanted areas since 2007 fires
Highest hectares established and lowest unplanted areas since 2007 fires
Slide 15: Highest hectares established and lowest unplanted areas since 2007 fires
Highest hectares established and lowest unplanted areas since 2007 fires
Slide 16: NUMSA strike at the Escarpment operations
NUMSA strike at the Escarpment operations from 25 April 2022 through June 2022 was typified by intimidation, arson, blocking access and assault
Slide 17: NUMSA strike at the Escarpment operations
NUMSA strike at the Escarpment operations from 25 April 2022 to June 2022 was typified by intimidation, arson, blocking access and assault
Slide 18: NUMSA strike at the Escarpment operations
NUMSA strike at the Escarpment operations from 25 April 2022 to June 2022 was typified by intimidation, arson, blocking access and assault
Slide 19: NUMSA strike at the Escarpment operations
NUMSA strike at the Escarpment operations from 25 April 2022 to June 2022 was typified by intimidation, arson, blocking access and assault
Slide 20: Aftermath of strike
Aftermath of strike • Recognition agreement with NUMSA has been terminated • Employees found guilty of misconduct during the strike have been dismissed Responses • Employees recruited from the local communities where they reside • Employee workplace forums to be established so that the Company is th
Slide 21: Jessievale Solar Farm
Jessievale Solar Farm
Slide 22: Jessievale Solar Farm
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Slide 23: Spindleless peeler
Spindleless peeler
Slide 24: Spindleless peeler
Spindleless peeler
Slide 25: Chip bin
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Slide 26: Plywood export
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Slide 27: Plywood export
Plywood export
Slide 28: Export lumber
Export lumber
Slide 29: Financial Results
INANCIAE ZSULITS
Slide 30: Eight-Year Historical Financial Results
EIGHT-YEAR HISTORICAL FINANCIAL RESULTS CAGR % Audited % Audited Audited Audited Audited Audited Audited Audited 2015-2022 2022 Change 2021* 2020 2019 2018 2017 2016 2015 Group Revenue R'000 3% 1 838 810 (5%) 1 928 589 1 438 825 1 600 522 1 812 350 1 832 805 1 771 049 1 543 149 Gross Profit R'000 3%
Slide 31: Eight-Year Historical Financial Results (continued)
EIGHT-YEAR HISTORICAL FINANCIAL RESULTS | CONTINUED CAGR % Audited % Audited Audited Audited Audited Audited Audited Audited 2015-2022 2022 Change 2021* 2020 2019 2018 2017 2016 2015 Earnings R'000 (16%) 29 128 (79%) 137 069 (217 637) (36 268) 138 280 367 286 238 212 101 468 Weighted average number
Slide 32: Financial Overview (continued)
FINANCIAL OVERVIEW | CONTINUED GROUP REVENUE GROSS PROFIT EBITDA R million R million R million 2 500 600 400 2 000 500 300 400 1 500 300 200 1 000 200 100 500 100 0 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 CASH GENERA
Slide 33: Statement of profit or loss and other comprehensive income
FINANCIAL OVERVIEW | CONTINUED Statement of profit or loss and other comprehensive income 2022 % 2021 for the year ended 30 June 2022 R’000 change R’000 Decrease in volume due to wet weather and strike in Revenue 1 838 810 -5% 1 928 589 Escarpment and increase in average selling price. Cost of Sales
Slide 34: Statement of financial position: assets
FINANCIAL OVERVIEW | CONTINUED 2021 Statement of financial position 2022 % R’000 as at 30 June 2022 R’000 change Restated ASSETS Non-current assets 3 901 744 0% 3 902 305 Biological assets down 3% due to increase in discount Biological assets 2 478 866 (1%) 2 502 597 rate of 1,66%. Investment proper
Slide 35: Statement of financial position: equity and liabilities
FINANCIAL OVERVIEW | CONTINUED Statement of financial position 2022 % 2021 as at 30 June 2022 R’000 change R’000 EQUITY AND LIABILITIES Equity 3 055 383 1% 3 017 688 Share capital 1 491 674 1% 1 484 157 Reserves 3 243 48% 2 193 Retained income 1 560 466 2% 1 531 338 Liabilities Non-current liabiliti
Slide 36: Statement of cash flows
FINANCIAL OVERVIEW | CONTINUED 2021 Statement of cash flows 2022 % R’000 as at 30 June 2021 R’000 change Restated Acquisition of spindleless peeler which will unlock Cash generated from operation 202 227 (52%) 425 446 cost saving synergies by allowing the processing of smaller Interest and tax paid
Slide 37: Biological Asset Valuation (BAV)
BIOLOGICAL ASSET VALUATION “BAV” Fair value adjustment on Pine and Eucalyptus trees R72 million (June 2021: profit of R13 million) R’000 Reasons Cash flow profile change from the prior year’s yield forecast as a result of the change in the product mix and the age Change in product mix and age 70 3
Slide 38: Goodwill Impairment Assessment
GOODWILL IMPAIRMENT ASSESSMENT Fair value less cost to sell model 30 June 30 June 2022 2021 Description R’000 R’000 Impairment required? No No Carrying amount of segment assets Property, plant and equipment 132 099 130 867 Biological assets 2 803 238 2 875 903 Goodwill balance 357 630 357 630 Deferr
Slide 39: Methodology for the BAV and Goodwill
METHODOLOGY FOR THE “BAV” AND GOODWILL Differences between Biological asset valuation and the goodwill assessment calculation DESCRIPTION BIOLOGICAL ASSET VALUATION GOODWILL VALUATION Type of valuation Exit valuation Continuing business Includes replanting No Yes Fixed costs Reduces as hectares decr
Slide 40: Comparison of the BAV and Goodwill Cash Flows
COMPARISON OF THE “BAV” AND GOODWILL CASH FLOWS Difference in BAV and goodwill models (real) The differences in cash flow profiles are illustrated, without the impact of discounting or inflation assumptions 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 BAV after tax
Slide 41: Biological Assets
BIOLOGICAL ASSETS
Slide 42: Return on Biological Assets
RETURN ON BIOLOGICAL ASSETS INTEREST BEARING DEBT PROFILE 1 000 000 • The approach to harvesting has been reviewed 900 000 • Due to York’s debt profile, higher volumes have been harvested from York’s plantation • Harvesting of trees at suboptimal ages has a significant impact on future growth and re
Slide 43: Benefits of Harvesting Age Increase
BENEFITS OF HARVESTING AGE INCREASE Identified Value at Value at Value at compartments SI MAI CAI Area 17.5 years 20.5 years 22.5 years Mauchsberg 24 13.5 16.5 14 2 072 322 2 708 271 3 084 235 Mauchsberg 24 13.5 16.5 2 303 406 396 515 451 559 Mauchsberg 24 13.5 16.5 19 2 686 290 3 510 653 3 998 004
Slide 44: Benefits of Harvesting Age Increase
BENEFITS OF HARVESTING AGE INCREASE Harvest volume to hectares at 18 years at 23 years vs vs 10 ha 8 ha External purchases will make up for difference in growth 44
Slide 45: Debt Facilities – 2022
DEBT FACILITIES – 2022 Balance Description R’000 Originated Repayment terms Land Bank term loan* 226 701 • Original 2007 purchase loan for GFP assets were • Re-financed June 2019 – equal monthly repaid through capital raise instalments over 4 years at prime less 0.5% • R600 million re-financed with
Slide 46: Major Capex Spending
MAJOR CAPEX SPENDING For the period ended 30 June 2022 Amount Project R’000 Source Hyster H5.0 DSL Forklift 883 Financed Isuzu D-max 250 4 391 Financed Mercedes-Benz Arocs Truck 6 086 Financed Isuzu fire truck 3 636 Financed Hyster H3.5ft DSL Forklift 709 Financed Dezzi wheel logger and grab 5 054 F
Slide 47: Outlook
OUTLOOK • York’s plantations are its key strategic asset. While significant log volumes are still required from external sources until our plantations return to a normal rotation cycle, this key asset will be carefully managed in order to deliver the optimal mix of cash flows and returns to sharehol
Slide 48: Disclaimer
DISCLAIMER This presentation contains forward-looking statements about York’s operations and financial conditions. The Company has prepared this presentation based on information available to it at the time of writing, including information derived from public sources. No representation or warranty,
Slide 49: Thank You
\ r YORK TIMBERS www.york.co.za THANK YOU