Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — FY2013 Earnings Presentation
30 slides from Calgro M3's earnings presentation, Feb 28, 2013
Slide 1: Group Results for Financial Year Ended 28 February 2013
Group Results for Financial Year Ended 28 February 2013 Building legacies » Changing lives CALGRO M3 H O L DIN G S$
Slide 2: Agenda
Agenda 1 2 3 4 Calgro M3 Financial Significant Group Business Review Achievements Prospects Model
Slide 3: Calgro M3 Business Model
Calgro M3 Business Model Sao" CALGRO M3 H O Lt DING S$
Slide 4: Business Model
Business Model Identify land/project Hand-over to clients, after sale Due diligence – service market study, viability Construction of Acquire land, top-structures Turnkey Developer development finance Township Bond & transfer establishment – to end-users town planning, engineer, EIA, etc Infrastruct
Slide 5: Business Model
Business Model The company’s business model will remain mainly unchanged: Integrated or low income development projects: Minimum of 80% exposure; Mid-to-High income developments/market segment: Maximum of 20% exposure; Principle of landowner developer to be retained with Land Availability Agreements
Slide 6: Business Model
Business Model The company’s business model remained unchanged: Principle of landowner developer retained with LAA (Land Availability) where available on our terms; Maxim shareholding will be retained in projects while taking associated risks into account; Marketing responsibility to be divided into
Slide 7: National Footprint
National Footprint Gauteng North West Fleurhof – 9,558 units Boitekong – 3,451 units South Hills – 5,161 units Jabulani CBD – 3,881 units Witpoortjie – 2,023 units Western Cape Freestate Scottsdene – 2,885 units Brandwag – 1,051 units Belhar – 3,614 units Vista Park – 2,400 units Maitland – 136 unit
Slide 8: Calgro M3 Project: Fleurhof
Calgro M3 Project: Fleurhof Crèche GAP RDP Rental Social FLISP GAP Affordable RDP Affordable
Slide 9: Calgro M3 Project: Jabulani CBD
Calgro M3 Project: Jabulani CBD Social Rental Bonded/GAP
Slide 10: Typical Units – Integrated Development
Typical Units – Integrated Development CRU units: Subsidized rental – RDP units: Fully subsidized (give- RDP units: Fully subsidized (give- Government/City owned away) – freestanding & semi- away) – multi-storey walk-up’s detached GAP /FLISP units: Bonded market – sectional title ownership Affordabl
Slide 11: Financial Review of the 12 months ended February 2013
Financial Review of the 12 02 months ended February 2013
Slide 12: Financial Summary
Financial Summary F2013 vs. F2013 – February F2012 – February F2012 Audited Audited Revenue + 55 % 798 394 514 913 Operating profit + 107 % 89 373 43 219 Gross Profit 3.09 % 18.53 % 15.44 % Headline Earnings – Rand + 40 % 91 304 65 380 Fully diluted Headline earnings – Rand + 40 % 91 304 65 380 EPS
Slide 13: Statement of Financial Performance
Statement of Financial Performance F2013 – February F2012 – February Audited Audited Revenue 798 394 514 913 from continuing operations Operating profit & margin % 89 374 43 219 Incl. fair value adjustments – No Fair value adjustments in 11.19% 8.39% current year Profit before interest & taxation 11
Slide 14: Statement of Financial Position - Extract
Statement of Financial Position - Extract F2013 – February F2012 – February Audited Audited Non Current assets 153 254 116 100 Intangible assets 32 808 32 921 Investments in JV’s 74 350 44 944 Loans to JV’s 22 200 15 725 Current assets 655 866 479 783 Inventories 264 578 249 305 Construction Contrac
Slide 15: Statement of Financial Position - Extract
Statement of Financial Position - Extract F2013 – February F2012 – February Audited Audited Equity 327 358 236 054 Non-current Liabilities 27 079 19 560 Deferred tax 26 863 19 315 Current Liabilities 454 693 340 269 Borrowings 299 900 225 111 Trade and other payables 153 156 113 541 Total Assets 809
Slide 16: Statement of Cash Flow
Statement of Cash Flow F2013 – February F2012 - February Audited Audited Operating Cash 98 119 48 253 Working capital changes (48 633) 21 576 Cash generated / (utilised) from operations 49 486 69 829 Finance (costs)/income – (net) (20 347) (18 919) Tax paid (16 554) (11 634) Net cash generated / (ut
Slide 17: Cash Flow Working Capital Reconciliation
Cash Flow Working Capital Reconciliation F2013 - February F2012 – February Audited Audited Operating Cash 49 486 69 829 Working capital changes (6 633) 21 576 Trade and other payables 38 118 67 020 Trade and other receivables (27 003) (3 728) Contracts in progress (53 163) (44 175) Inventories (6 58
Slide 18: Key Financial Ratio's
Key Financial Ratio’s F2013 - February F2012 – February Audited Audited Group Equity 327 358 236 054 Interest bearing debt 300 616 226 818 Cash and cash equivalents 198 343 103 691 Net interest bearing debt 102 273 123 127 Net gearing – net debt to equity ratio % 31.24% 52.16 % Interest Cover 4.85 3
Slide 19: Company Structure
Company Structure Calgro M3 Holdings Limited 2005/027663/06 Calgro M3 Calgro M3 Land (Pty) Calgro M3 Project Developments (Pty) Ltd Management (Pty) Ltd Ltd 2005/027072/07 2007/030313/07 1996/017246/07 Hightrade-Invest 60 (Pty) Tres Jolie Ext 24 (Pty) Ltd Ltd CM3 Randpark Ridge CTE Consulting (Pty)
Slide 20: Change in Borrowings
Change in Borrowings Increases: Bond Exchange 126 000 000 Jibar linked RMB Limited 1 485 330 Prime linked 127 485 330 Decreases: Bond Exchange (40 000 000) Jibar linked Nedbank Limited (12 221 371) Prime + 1% NHFC (485 687) (52 707 058) Net change 74 778 272 Total debt raised 74 778 272
Slide 21: Significant Achievements
Significant Achievements 03
Slide 22: Significant Achievements
Significant Achievements Awarding of the Boikatong project in the North-West province in line with the strategic thrust to obtain a footprint in the province thereby gaining from the Mining Charter coming effective 2014; Awarding of the Vista Park project in the Freestate, increasing the group’s foo
Slide 23: Group Prospects
Group Prospects Sao" CALGRO M3 H O Lt DING S$
Slide 24: Group Prospects – Low Income
Group Prospects – Low Income No of units Total no of under GAP, FLISP & Total estimated Project units in construction / RDP/BNG Social Rental Affordable project revenue project Housing Housing Housing completed Housing Fleurhof (Jhb) 9558 2453 2822 1459 3405 1872 R 2 963 000 000 Jabulani CBD (Soweto
Slide 25: Group Prospects – Mid-to-High Income
Group Prospects – Mid-to-High Income No of Project name Township Status of project Type of project Revenue units Town planning Broadacres Ext 36, Retirement and La Vie Nouvelle completed. Marketing to 394 R499,000,000 Fourways Lifestyle Estate commence Witkoppen Ext 142, 32-On-Pine Town planning com
Slide 26: Group Prospects by Segment
Group Prospects by Segment By number of units 3% RDP/BNG Housing 18% 24% Social Housing 25% GAP, FLISP & Rental Housing 29% Affordable Housing Mid-to-High By revenue 6% 18% 19% 30% 27%
Slide 27: Challenges, Risk and the Way Forward
Challenges, Risk and the Way Forward Remaining Risks Uncontrollable growth – This risk will remain coming back, as the group growth to full force; Reputational damage due to sub standard work – This risk is managed due to our “hands-on” approach and site management structure, but things do go wrong
Slide 28: Questions?
Questions? Sao" CALGRO M3 H O Lt DING S$
Slide 29: For more information, please contact:
For more information, please contact: Ben Pierre Malherbe E-mail: benpierre@calgrom3.com Wikus Lategan E-mail: wikus@calgrom3.com Derek Steyn E-mail: derek@calgrom3.com Tel: +27 11 300 7500 www.calgrom3.com
Slide 30: Disclaimer
Disclaimer Calgro 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 wor