Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — FY2024 Earnings Presentation
39 slides from Calgro M3's earnings presentation, May 2024
Slide 1: Annual Financial Results
Annual Financial Results For the year ended 29 February 2024
Slide 2: Agenda
AGENDA Year under review Underlying business performance Financial review Dividends The future Appendix 2
Slide 3: Year Under Review
Acacia Grove YEAR UNDER REVIEW 1
Slide 4: Core Message
CORE MESSAGE Financial health Group pipeline remains Focus on delivering high is robust, with focused adaptable to current – quality products with capital allocation and market conditions strong margins the ability to invest in infrastructure #sustainableactions Annual AnnualFinancial FinancialResul
Slide 5: Key Performance Metrics
KEY PERFORMANCE METRICS Memorial Parks HEPS increased to 1 794 Reduction of Infrastructure investment Maiden dividend cash generation units handed over in the administrative expenses 189.87 cps Loan to value at declared 9.49350 cps approx. 70% of by 4.18% (2023: 153.18 cps) 31.97% R314.58 million cu
Slide 6: Environmental, Social and Governance (ESG)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) Level 1 B-BBBE Empowerment Contributor Annual AnnualFinancial FinancialResults Resultsfor forthe theyear ended period 29 31 ended February August2024 2023 6
Slide 7: Underlying Business Performance
32 On Pine UNDERLYING BUSINESS PERFORMANCE 2 Annual Financial Results for the period ended 31 August 2023
Slide 8: 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 AnnualFinancial Financia
Slide 9: Integrated Residential Developments – Market Presents Opportunities
INTEGRATED RESIDENTIAL DEVELOPMENTS – MARKET PRESENTS OPPORTUNITIES Fleurhof | Gauteng Annual AnnualFinancial FinancialResults Resultsfor forthe theyear ended period 29 31 ended February August2024 2023 9
Slide 10: Residential Property Development
RESIDENTIAL PROPERTY DEVELOPMENT Market demand remains high Various efficiency enhancements applied to increase the pipeline with 1 378 opportunities Resulted in reduction in effective bulk & link infrastructure & land costs New unit designs are under construction which results in less construction
Slide 11: Residential Property Development - Sustainability
RESIDENTIAL PROPERTY DEVELOPMENT - SUSTAINABILITY Units handed over 1 794 Units under construction 1 748 Units to commence in FY 25 1 100 Fully serviced opportunities 2 825 Investment in infrastructure R315 mill Units being serviced 2 970 Opportunities added from land Opportunities added from acquis
Slide 12: Bankenveld District City
BANKENVELD DISTRICT CITY Sustainable diversification • Able to deliver between 20 000 to 30 000 housing units alongside significant commercial, retail, and industrial spaces • Approximately 34% of the land is dedicated to infrastructure, including roads, stormwater management, and extensive recreati
Slide 13: Residential Property Development - Where to From Here
RESIDENTIAL PROPERTY DEVELOPMENT- WHERE TO FROM HERE • Area of strategic focus is how to best roll out the current pipeline • Assuming a R1.3 billion annual revenue the current pipeline will take 26 years to roll out (i.e. R34.4 billion/ R1.3 billion), this time frame is however not practical • Furt
Slide 14: Residential Property Development - Where to From Here (Continued)
RESIDENTIAL PROPERTY DEVELOPMENT- WHERE TO FROM HERE (CONTINUED) • Size of the pipeline vs how hard we work the pipeline Does the size of the pipeline make a significant Are there difference? major capital Does the requirement quality of our s needed to product roll out the matter? pipeline? Conside
Slide 15: Memorial Parks
MEMORIAL PARKS Calgro M3 Memorial Parks is 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 Durb
Slide 16: Memorial Parks
MEMORIAL PARKS Market demand remains high Consumer strain addressed through varying product offerings, including lay-bys Increased pipeline by R130 million through implemented efficiencies (excl impact of acquisition of Platinum City (Rustenburg) Memorial Park Gross profit margin increased to 45.74%
Slide 17: Memorial Parks
MEMORIAL PARKS Cash banked FY 24 R68.2 mil Cash banked FY 23 R47.9 mil Lay-by sales cash received FY24 R15.6 mil Lay-by sales cash received FY23 R4 mil Active lay-by sales FY 24 R36.4 mil Active lay-by sales FY 23 R12.4 mil Revenue pipeline Revenue pipeline Projects Grave quantity (R) Nasrec Memoria
Slide 18: Financial Review
Olive Grove FINANCIAL REVIEW 3 Annual Financial Results for the period ended 31 August 2023
Slide 19: Key Financial Metrics
KEY FINANCIAL METRICS Revenue (R’000) Profit after tax (R’000) 1 800 000 250 000 1 600 000 1 525 317 5.64% 15.77% 196 801 200 000 186 288 1 400 000 1 321 593 1 284 758 1 200 000 984 130 150 000 1 000 000 132 171 879 147 800 000 100 000 600 000 400 000 50 000 200 000 18 479 5 343 0 - 2020 2021 2022 2
Slide 20: Statement of Cashflows
STATEMENT OF CASHFLOWS Audited Audited (R’000) Feb 2024 Feb 2023 Cash generated from operating activities Cash generated from operations 149 246 89 639 Finance income 56 906 8 003 Finance cost (111 400) (90 375) Tax paid (3 488) (5 198) Net cash generated from operating activities 91 263 2 070 Cash
Slide 21: Statement of Cashflows
STATEMENT OF CASHFLOWS Audited Audited (R’000) Feb 2024 Feb 2023 Cash flows advanced / (repaid in) financing activities Proceeds from borrowings 288 000 230 000 Capital repayment of borrowings (232 800) (194 800) Share buy backs (73 016) - Repayment of capital portion of leases (2 548) (3 073) Net c
Slide 22: Segmental Revenue Contribution
SEGMENTAL REVENUE CONTRIBUTION Revenue Audited Audited Residential Property Development Segment – (R’000) Feb 2024 Feb 2023 % change Disaggregated Revenue Residential Property Development 1 242 134 1 489 773 (16.6%) Infrastructure and land sales Memorial Parks 42 405 35 544 19.3% 49% 51% Total 1 284
Slide 23: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME Audited Audited (R’000) Feb 2024 Feb 2023 Revenue 1 284 539 1 525 317 Gross profit 350 029 357 694 Gross profit % 27.2% 23.5% Administrative expenses (98 139) (102 425) Net finance income/ (costs) 2 499 (10 557) Share of profit/(loss) of joint ventures – net of tax
Slide 24: Statement of Financial Position | Assets
STATEMENT OF FINANCIAL POSITION | ASSETS Audited Audited (R’000) Feb 2024 Feb 2023 Assets Cash and cash equivalents 122 638 172 614 Trade and other receivables 140 410 164 111 Current tax receivable 212 362 Construction contracts 1 355 384 1 162 394 Loans to joint ventures 402 422 371 472 Investment
Slide 25: Statement of Financial Position | Equity and Liabilities
STATEMENT OF FINANCIAL POSITION | EQUITY AND LIABILITIES Audited Audited (R’000) Feb 2024 Feb 2023 Stated Capital 31 610 102 081 Share based payment reserve 363 10 455 Retained income 1 251 253 1 040 813 Non-controlling interest 665 689 Total equity 1 283 892 1 154 038 Liabilities Trade and other pa
Slide 26: Borrowing Maturities
BORROWING MATURITIES Rand Rand Rand Outstanding Capital (R’m) Maturity profile (R’m) Maturity profile (R’m) Balance 28 Feb 2023 885.80 FY 2025 211.80 FY 2028 217.50 New debt 288.00 FY 2026 197.50 FY 2029 177.50 Debt repaid (232.80) FY 2027 136.75 Closing balance 29 Feb 2024 941.00 Scottsdene Annual
Slide 27: Covenants
COVENANTS 29 Feb 28 Feb 2024 2023 Net debt to equity ratio 0.63 0.62 Debt service cover ratio 1.42 1.61 Net Debt to Equity Target Date Target By 29 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 28: Dividends
Jabulani Junction Sales price from R659 900 DIVIDENDS 4 Annual Financial Results for the period ended 31 August 2023
Slide 29: Dividend Policy
DIVIDEND POLICY • Policy reflects ongoing commitment to building a sustainable business model and rewarding shareholders in the investment journey • Aimed at enhancing shareholder value and demonstrating commitment to financial discipline and sustainable cash generation • Pay dividends annually, cal
Slide 30: The Future
Nasrec Memorial Park THE FUTURE 5 Annual Financial Results for the period ended 31 August 2023
Slide 31: 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 32: 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 33: Core Message #sustainableactions
CORE MESSAGE #sustainableactions Financial health Group pipeline remains Focus on delivering high is robust, with focused adaptable to current – quality products with capital allocation and market conditions strong margins the ability to invest in infrastructure Our skilled management, strategic foc
Slide 34: Thank You
THANK YOU Available at - www.calgrom3.com Investor relations Wikus Lategan (CEO) Email: wikus@calgrom3.com Sayuri Naicker (FD) Email: sayurin@calgrom3.com Waldi Joubert (MD – Memorial Parks) Email: waldi@calgrom3.com Vanessa Rech (KRIS) Email: vrech@kris.co.za Tel: +27 11 300 7500 or 083 307 5600 An
Slide 35: 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 36: Appendix
Acacia Grove APPENDIX 6 Annual Financial Results for the period ended 31 August 2023
Slide 37: Business Model
BUSINESS MODEL RESIDENTIAL PROPERTY DEVELOPMENT MEMORIAL PARKS Scottsdene Nasrec Annual AnnualFinancial FinancialResults Resultsfor forthe theyear ended period 29 31 ended February August2024 2023 37
Slide 38: Board Composition
BOARD COMPOSITION Annual AnnualFinancial FinancialResults Resultsfor forthe theyear ended period 29 31 ended February August2024 2023 38
Slide 39: 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 • Resulted in an additional R11.2 million in sales (not yet reflected in revenue) • Of this amount, R2.6 million has bee