Zeder Investments Limited · JSE:ZED
Zeder Investments — Shareholder Meeting (June 2014)
26 slides from Zeder Investments's shareholder meeting presentation, Jun 20, 2014
Slide 1: Annual General Meeting
Annual General Meetingg Presented by: Norman Celliers Chief executive officer 20 June 2014
Slide 2: Slide 2
Slide 3: Full Year Results Executive Summary
FULL YEAR RESULTS E Executive ti summary Feb 13 Feb 14 4 Jun 14 Sum of the parts (see‐through) R4,164m R5,155m R5,992m Sum of the parts per share (see‐through) 23% R4.26 R5.26 R6.11 Recurring headline earnings R251,1m R292,1m Recurring headline earnings per share (cents) 16% 25.7 29.8 Headline earni
Slide 4: Business Definition
BUSINESS DEFINITION Over the past 18‐24 18 24 months we have reconfirmed our business definition… • Long term value investor with a primary focus on Agribusiness, specifically the food and beverage sectors • Listed on the JSE – ZED ‐ hybrid private equity vehicle • Key characteristics of investment
Slide 5: Industry Focus
INDUSTRY FOCUS … and our investment focus – the AGRIBUSINESS industry with a specific focus on the food and beverage sub‐sectors. Upstream Midstream Downstream Services and support Primary Secondary Marketing I Inputs P Processing i Di ib i Distribution R il Retail production production and sales Se
Slide 6: Expanded Strategy
EXPANDED STRATEGY We have expanded our strategy accordingly. accordingly Historically y Going G g forward Industry: • Agribusiness • Agribusiness Sub‐sector: • Food and Beverages • Food and Beverages • Bio Fuels • Non‐food (i.e. Rubber, timber) Geography: • South Africa (Direct) • South Africa (Dire
Slide 7: Portfolio Rationalisation
PORTFOLIO RATIONALISATION Zeder s portfolio has been rationalised to 5 core investments valued Zeder’s at approximately R6b. 7 000.00 SOTP Oth fi Other financial i l iinstruments t t (see‐through) R5,990 Nett Cash 6 000.00 Chayton Outspan Senwes 5 000.00 Pioneer Tuinroete Agri + R1 billion CHA BKB 4
Slide 8: Capital Reallocation
CAPITAL REALLOCATION During FY2014 investments totaling R879m were made while R570m was realised through disinvestments from non‐core exposures. R’m 400 357 199 200 125 125 107 25 Overberg Suidwes CVH NWK 0 Capespan Chayton ZAAD AVL Other Kaap Agri -78 -97 -200 -171 -224 -400 Investments during FY20
Slide 9: Increased Influence
INCREASED INFLUENCE We focused and increased our influence over core portfolio companies. 100.0% 92.0 80.0 76.6 72.1 60.0 50.1% 48.5 39.9 40.0 25.1% 20.0 2.6 00 0.0 Agricol Chayton Capespan AVL Kaap Agri CVH Core portfolio Non‐core portfolio – available for sale
Slide 10: Larger Investments
LARGER INVESTMENTS Each of our core investments now reflect investment values of at least R500m providing an improved balance to portfolio. R’m 3,000 2,674 2,000 1,023 1,000 679 632 553 500 229 192 144 Liabilities 0 AVL Capespan Zaad Kaap Agri Chayton Other CVH Cash -212 -1 000 -1,000 Core portfolio
Slide 11: Core Investments: Pioneer FY results
CORE INVESTMENTS Despite difficult conditions conditions, Pioneer delivered good results for the year ended 30 September 2013… Source: Pioneer Foods FY results presentation
Slide 12: Core Investments: Pioneer realignment
CORE INVESTMENTS … and Pioneer has undergone a significant internal realignment and repositioning… Source: Pioneer Foods Interim Results presentation
Slide 13: Core Investments: Pioneer interim results
CORE INVESTMENTS … and Pioneer released positive interim results for 6 months (H1) ended 31 March 2014. Source: Pioneer Foods Interim Results presentation
Slide 14: Core Investments: Capespan results
CORE INVESTMENTS Capespan delivered solid results for year ended 31 December 2013 with RHEPS increasing by 42,2%.
Slide 15: Core Investments: Capespan divisions
CORE INVESTMENTS Over 70 years years, the Capespan Group has developed two large and complimentary divisions which are increasingly less interdependent. FRUIT LOGISTICS Cartons exported (millions) Profit before tax (R’m) 46.0 43.6 89.7 Non-SA Non-SA 20.0 18.7 SA SA 20.1 24.9 26.0 2012 2013 2012 2013
Slide 16: Core Investments: Capespan Golden Wing Mau
CORE INVESTMENTS Through its investment in Golden Wing MauMau, Capespan has established a credible entry into the growing Chinese market. • Capespan has 25% interest in Golden Wing Mau • Company started trading in Shenzhen in 1997 • Delivered Sustained Annual Growth‐average 35% P.A • Procures from 4
Slide 17: Core Investments: Kaap Agri
CORE INVESTMENTS Kaap Agri celebrated its 101st year and has become a well established, focused business with growth ambitions.
Slide 18: Core Investments: Kaap Agri results
CORE INVESTMENTS The group continues to deliver strong and consistent results. results
Slide 19: Core Investments: Kaap Agri activities
CORE INVESTMENTS Business activities are focused around diversified crops and areas areas.
Slide 20: Core Investments: Zaad
CORE INVESTMENTS ZAAD Agricol and KKSB are category leaders spanning a broad product range with complimentary geographical footprints and brands. Strong footprint + Broad product range + Trusted brands • Vegetable seeds • Forage seeds • Pasture seeds • Agronomy seeds • Horticulture seeds • Lucerne s
Slide 21: Core Investments: Zaad growth
CORE INVESTMENTS ZAAD Zeder believes that Zaad is one of the most exciting companies in its portfolio with a scalable platform for sustainable growth. R millions Recurring Earnings 60 • Very good investment to date – Capital invested to date ~ R342m 50 – Market value of investment ~ R679m 40 • HEPS
Slide 22: Core Investments: Chayton
CORE INVESTMENTS Chayton is the holding company for large scale grain farming and related investments in Africa.
Slide 23: Core Investments: Chayton irrigated hectares
CORE INVESTMENTS 4,200 4 200 irrigated hectares have been completed within 24 months and additional capacity is currently being added to the farms… Irrigated hectares • Operations under 5,969 control and efficiency 6,000 5969 5,369 i improvements being b i 4,769 implemented 4,169 4200 • Harvested y
Slide 24: Core Investments: Mpongwe Milling
CORE INVESTMENTS … while a leading mill was acquired and has been integrated within the group. • Recently acquired Mpongwe Milling in Zambia’s Copperbelt • Maize and wheat milling operations • 50,000 tons of maize and 24,000 tons of wheat milled annually • Synergies with the farm operations • Offers
Slide 25: Significant Influence
SIGNIFICANT INFLUENCE Zeder s portfolio investments represent a significant group with Zeder’s exciting prospects. Zeder Revenue RHE (%) (R’m) (R m) (R’m) (R m) 14% 20,551 826 (30%) 40% 5,530 129 72% 7,182 128 92% 465 54 76% 138 ‐10 33,866 1,126
Slide 26: Thank You
THANK YOU