Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — H1 2025 Earnings Presentation
36 slides from Calgro M3's earnings presentation, October 2024
Slide 1: Interim Financial Results
Interim Financial Results For the period ended 31 August 2024
Slide 2: Agenda
AGENDA Period under review Underlying business performance Financial review The future Appendix 2
Slide 3: Period Under Review
Acacia Grove PERIOD UNDER REVIEW 1
Slide 4: Core Message
CORE MESSAGE Financial health Resilient business is robust, with focused capable of adapting to Organic and capital allocation, the market conditions acquisitive project ability to invest in without compromising growth forms the basis infrastructure, and on quality and of sustainability with an exce
Slide 5: Consistent Implementation of #sustainableactions
CONSISTENT IMPLEMENTATION OF ………….. Ensure liquidity Growth market share and sales through product Increase open market enhancement and sales and complete increase the footprint opportunities in of the Memorial Optimal capital Residential Property allocation Parks business Development business Endea
Slide 6: Key Performance Metrics
KEY PERFORMANCE METRICS 869 Further reduction of HEPS increased to Loan to value at Infrastructure investment No interim dividend Memorial Parks cash units handed over in the administrative expenses 101.40 cps 30.40% R138 million Maiden dividend of generation > 100% current year by 2.00% (Aug 2023:
Slide 7: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE - AS AT YEAREND(“ESG”) Level 1 B-BBBE Empowerment Contributor Annual Interim Financial Financial Results Results for the for the period period ended ended 31 August 31 August 2023 2024 7
Slide 8: Underlying Business Performance
32 On Pine UNDERLYING BUSINESS PERFORMANCE 2 Annual Financial Results for the period ended 31 August 2023
Slide 9: Integrated Residential Developments
INTEGRATED RESIDENTIAL DEVELOPMENTS The markets served are broad, ranging from fully subsidised to bonded homes, which allows us to adapt and reposition construction activities amongst market segments in response to economic shifts. Belhar Lofts Grand Views 32 On Pine Annual Interim Financial Financ
Slide 10: Integrated Residential Developments – Market Presents Opportunities
INTEGRATED RESIDENTIAL DEVELOPMENTS – MARKET PRESENTS OPPORTUNITIES Fleurhof | Gauteng Interim AnnualFinancial FinancialResults Resultsfor for the the period period ended ended 31 31 August August 2024 2023 10
Slide 11: Residential Property Development
RESIDENTIAL PROPERTY DEVELOPMENT Market demand remains strong in our market segment Sales have slowed down and consumer under pressure – watching carefully Focus on open market sales directly to the consumer with average sales price point more palatable to target market Focus on bulk and link infras
Slide 12: Residential Property Development - Sustainability
RESIDENTIAL PROPERTY DEVELOPMENT - SUSTAINABILITY Units to commence next Units under construction 1 539 Units handed over 869 six months 1 592 Fully serviced opportunities 2 609 Investment in infrastructure R138 mill Units being serviced 2 416 Opportunities ready for development 5 021 Nett Opportuni
Slide 13: Bankenveld District City – Sustainable Diversification
BANKENVELD DISTRICT CITY – SUSTAINABLE DIVERSIFICATION • Land ownership has transferred • 20 000 housing units • Awaiting final engineering design before commencing with bulk and link infrastructure installations • In collaboration with Eris Property Group for the bulk infrastructure installation •
Slide 14: Pipeline - Where to From Here?
PIPELINE - WHERE TO FROM HERE? Sell Trade Out Umhlanga Hills Witpoortjie Long-term Remaining Jabulani Precent Kwa-Nobuhle La Vie Nouvelle Potential Acquisitions Belhar - CT Potentially some Mid to High – 32-on- Vredehoek - CT Mid to High land Pine Need property in CT Fleurhof - JHB to support risk S
Slide 15: Memorial Parks
MEMORIAL PARKS Calgro M3 Memorial Parks are an alternative to traditional cemeteries, adds value to existing developments, introduces an alternative burial option that is dignified, secure and which delivers a service to customers that is superior to other products in the market. Nasrec Fourways Dur
Slide 16: Memorial Parks
MEMORIAL PARKS Market demand remains high Consumer strain addressed through varying product offerings, including lay-bys Gross profit margin of 57.1% (HY23: 43,22%) due to cost management (target 50%) Increased sale volumes have reached critical levels and contributed to the 48.19% net margin being
Slide 17: Memorial Parks
MEMORIAL PARKS Cash banked Aug ‘24 R52.1 mil Cash banked Aug ‘23 R34.7 mil Active lay-by sales Aug ‘24 R40.7 mil Active lay-by sales Aug ‘23 R21.1 mil Revenue pipeline – February 2024 Revenue pipeline Projects Grave quantity (R) Nasrec Memorial Park 28 033 855 548 405 Fourways Memorial Park 6 112 32
Slide 18: Financial Review
Olive Grove FINANCIAL REVIEW 3 Annual Financial Results for the period ended 31 August 2023
Slide 19: Statement of Cashflows
STATEMENT OF CASHFLOWS Unaudited Audited Unaudited (R’000) Aug 2024 Feb 2024 Aug 2023 Cash generated from operating activities Cash generated from operations 57 212 149 246 117 872 Finance income received 34 123 56 905 27 571 Finance cost paid (61 940) (111 400) (55 557) Tax paid (7 71) (3 488) (74)
Slide 20: Statement of Cashflows (cont)
STATEMENT OF CASHFLOWS (CONT) Unaudited Audited Unaudited (R’000) Aug 2024 Feb 2024 Aug 2023 Cash flows (repaid in) / advanced financing activities Proceeds from borrowings 100 000 288 000 155 000 Repayment of borrowings - (232 800) (122 400) Share repurchases - (73 016) (59 713) Repayment of capita
Slide 21: Segmental Revenue Contribution
SEGMENTAL REVENUE CONTRIBUTION Revenue Unaudited Unaudited Audited Joint venture revenue (R’000) Aug 2024 Aug 2023 Feb 2024 R‘ million 200 Residential Property Development 475 286 668 959 1 242 134 Revenue 150 generated within Memorial Parks 31 723 19 945 42 405 100 the South Hills joint venture 175
Slide 22: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited February (R’000) Aug 2024 Aug 2023 2024 Revenue 507 009 688 904 1 284 540 Gross profit 150 507 152 795 350 029 Gross profit % 29.69% 22.20% 27.25% Administrative expenses (48 994) (49 875) (98 139) Share of profit/(loss) of joint ventures – net o
Slide 23: Statement of Financial Position | Assets
STATEMENT OF FINANCIAL POSITION | ASSETS Unaudited Audited Unaudited (R’000) Aug 2024 Feb 2024 Aug 2023 Assets Cash and cash equivalents 168 913 122 638 191 880 Trade and other receivables 98 636 140 410 166 356 Current tax receivable 355 212 15 Construction contracts 1 474 734 1 355 385 1 162 527 L
Slide 24: Statement of Financial Position | Equity and Liabilities
STATEMENT OF FINANCIAL POSITION | EQUITY AND LIABILITIES Unaudited Audited Unaudited (R’000) Aug 2024 Feb 2024 Aug 2023 Stated Capital 31 610 31 610 42 368 Share based payment reserve 2 435 363 4 869 Retained income 1 337 796 1 251 253 1 136 289 Non-controlling interest 831 666 731 Total equity 1 37
Slide 25: Borrowing Maturities
BORROWING MATURITIES Rand Rand Rand Outstanding Capital (R’m) Maturity profile (R’m) Maturity profile (R’m) Balance 28 Feb 2024 941.00 FY 2025 211.75 FY 2027 136.75 New debt 100.00 FY 2026 197.50 FY 2028 217.50 Debt repaid - FY 2029 277.50 Closing balance 31 Aug 2024 1 041.00 Average cost of debt at
Slide 26: Covenants
COVENANTS 31 Aug 28 Feb 2024 2024 Net debt to equity ratio 0.63 0.63 Debt service cover ratio 3.40 1.42 Net Debt to Equity Target Date Target By 28 February 2024 0.75: 1 Regulated covenant levels: Maximum allowed net debt: equity ratio for the Group is 1.5 : 1 Minimum allowed DSCR ratio for the Grou
Slide 27: The Future
Jabulani Junction Sales price from R639 900 THE FUTURE 4 Annual Financial Results for the period ended 31 August 2023
Slide 28: Outlook
OUTLOOK FOCUSSED 1 GROWTH 2 3 POSITIVE 4 MEMORIAL 5 PRODUCT 6 MARKET DIVERSIFICATION AND CASH PARKS OFFERING INSIGHT SUSTAINABILITY FLOW CONFIDENCE • Developments • Via both Bankenveld Forecasting positive Edging closer to the Our agility to adapt the Our in-depth segment revenue District City a
Slide 29: Outlook
OUTLOOK 7 FINANCIAL 8 DIGITAL 9 PROFITABLE 10 CAPITAL STRENGTH INNOVATION OUTLOOK ALLOCATION Robust balance sheet We see significant Unlimited opportunity Remains front and centre and liquidity position with opportunities for growth due to untapped South of all decision making. no major capital and
Slide 30: Core Message
CORE MESSAGE Financial health Resilient business is robust, with focused capable of adapting to Organic and capital allocation, the market conditions acquisitive project ability to invest in without compromising growth forms the basis infrastructure, and on quality and of sustainability with an exce
Slide 31: Thank You
THANK YOU Investor relations Ben Pierre Malherbe (CEO Designate) Email: benpierre@calgrom3.com Sayuri Naicker (FD) Email: sayurin@calgrom3.com Vanessa Rech (KRIS) Email: vrech@kris.co.za Tel: +27 11 300 7500 or 083 307 5600 www.calgrom3.com Annual Interim Financial Financial Results Results for the
Slide 32: Disclaimer
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 presentation, including all information that may be defined as 'forward-looking statements'. Forward-looking statements may be identified by
Slide 33: Appendix
Acacia Grove APPENDIX 6 Annual Financial Results for the period ended 31 August 2023
Slide 34: Business Model
BUSINESS MODEL RESIDENTIAL PROPERTY DEVELOPMENT MEMORIAL PARKS Scottsdene Nasrec Annual Interim Financial Financial Results Results for the for the period period ended ended 31 August 31 August 2023 2024 34
Slide 35: Board Composition
BOARD COMPOSITION Annual Interim Financial Financial Results Results for the for the period period ended ended 31 August 31 August 2023 2024 35
Slide 36: Memorial Parks | Product Development
MEMORIAL PARKS | PRODUCT DEVELOPMENT Lay-by product Grave quantities • Introduced in July 2022 • Allows customers up to 24 months to pay for reservation of a grave, at 0% interest • Revenue recognised once full purchase price received in cash • Offering showing immense potential while addressing fin