Zeder Investments Limited · JSE:ZED
Zeder Investments — H1 2017 Earnings Presentation
22 slides from Zeder Investments's earnings presentation, Sep 26, 2016
Slide 1: Interim Results
Interim Results 6‐month period ended 31 August 2016 Presented by: Norman Celliers Chief executive officer
Slide 2: Go for growth
go for growth aan die groei i% _ CAPESPAN 5ROUP LIMITED
Slide 3: Business overview
Business overview Our corporate strategy and objectives remain unchanged while structural improvements have been implemented. • An actively managed investment holding company listed on the Johannesburg Securities Exchange • Internalisation of Management Agreement completed, effective September 2016
Slide 4: Strategic focus
Strategic focus We invest in and grow businesses – the past 36 months’ priority has been “Project Internal Focus”. Before 2012 Since 2012 Industry: • Agribusiness • Agribusiness Sub‐sector: • Food and Beverages • Food and Beverages • Non‐food (i.e. rubber, timber)* • Related sustainability industrie
Slide 5: Sum-of-the-Parts (SOTP)
Sum‐of‐the‐Parts (SOTP) Zeder’s SOTP increased to R14.5bn since year‐end and was R8.40 per share as at 26 September 2016, following the issue of 207.7m Zeder shares pursuant to the internalisation of the management agreement. 29 Feb 16 31 Aug 16 26 Sep 16 Interest Interest Interest Company (%) Rm (%
Slide 6: Recurring headline earnings
Recurring headline earnings Subdued earnings reported across the portfolio as challenging macro conditions constrained profitability during H1FY17. Unaudited Audited 31 Aug 2015 31 Aug 2016 29 Feb 2016 6 months 6 months 12 months Rm Rm Rm Recurring headline earnings from investments 314 314 805 Mana
Slide 7: Portfolio review: Pioneer Foods
Portfolio review Pioneer reported commendable interim results with a 6% increase in adj. HEPS as revenues, volumes and margins were defended.
Slide 8: Portfolio review: Pioneer adjusted headline earnings
Portfolio review The continued growth in profitability has to be commended, particularly given the constrained environment. Adjusted headline earnings (cents per share) 900 832 800 700 678 600 500 456 479 451 406 400 352 300 219 231 200 100 H1 Full Year H1 Full Year H1 Full Year H1 Full Year H1 0 20
Slide 9: Portfolio review: operating margin improvement
Portfolio review … and operating margin improvement has also translated in market recognition.
Slide 10: Portfolio review: core brands and products
Portfolio review Investment in core brands and products have been maintained and share indicators remain positive.
Slide 11: Portfolio review: Capespan income statement
Portfolio review Capespan reported a decline in recurring HEPS for its 6‐ month period ended 30 June 2016. Summarised Income Statement Full year 6 months Dec 13 Dec 14 Dec 15 Jun 15 Jun 16 R'm % growth R'm % growth R'm R'm % growth R'm Revenue 7,149 3.4% 7,392 4.0% 7,688 3,986 4.4% 4,161 EBITDA 228
Slide 12: Portfolio review: Capespan divisions
Portfolio review Capespan operates along three divisions namely Farms, Fruit and Logistics.
Slide 13: Portfolio review: Capespan investments
Portfolio review Significant investments have been made to expand and strengthen the group. China India South Africa Germany Hong Kong Mozambique While Capespan will continue to seek new investments, its primary focus in the short term will be to ensure that existing investments are embedded and del
Slide 14: Portfolio review: Zaad income statement
Portfolio review Zaad reported a decline in recurring HEPS, but the cycle needs to be considered. Summarised Income Statement Full year 6 months Feb 14 Feb 15 Feb 16 Aug 15 Jul 16* R'm % growth R'm % growth R'm R'm % growth R'm Revenue 465 103.7% 947 29.5% 1,226 466 9.9% 512 EBITDA 96 53.1% 147 61.2
Slide 15: Portfolio review: Zaad growth
Portfolio review With a strong product portfolio, proprietary IP and established South African and international market presence, growth is underway.
Slide 16: Portfolio review: Kaap Agri interim results
Portfolio review Kaap Agri produced good interim results with an 18% increase in recurring HEPS for 6‐months ended 31 March 2016. Summarised Income Statement Full year 6 months Sep 13 Sep 14 Sep 15 Mar 15 Mar 16 R'm % growth R'm % growth R'm R'm % growth R'm Revenue 4,008 21.6% 4,875 9.6% 5,341 2,96
Slide 17: Portfolio review: Kaap Agri footprint
Portfolio review With a strong footprint and historical base, opportunities exist to continue growing.
Slide 18: Portfolio review: Agrivision Africa
Portfolio review Agrivision Africa continues to operate in a tough macro environment, but delivered a half year profit. Summarised Income Statement Full year 6 months Dec 13 Dec 14 Dec 15 Jun 15 Jun 16 US$'000 % growth US$'000 % growth US$'000 US$'000 % growth US$'000 Revenue 14,304 127.4% 32,532 (2
Slide 19: Portfolio review: Agrivision operations
Portfolio review No further expansion undertaken during the year with a focus on embedding existing investments and operations. Farming & Development Milling & Processing Brands & Distribution • 4,500 ha (irrigated) • 50,000 tons (Maize) • Formal retail • 1,800 ha (dry‐land) • 24,000 tons (Wheat) •
Slide 20: Portfolio review: Quantum Foods
Portfolio review As expected, Quantum was not able to repeat its strong profits of H1 2015, but remains better positioned through the cycles.
Slide 21: Portfolio review: Quantum Foods outlook
Portfolio review Quantum Foods will aim to navigate cyclical volatility while pushing forward in pursuing its strategic objectives. • Raw material prices at higher levels • Weak exchange rate environment • Consumer under pressure • New business model better aligned • Management to focus: - Efficienc
Slide 22: Conclusion
Conclusion We remain optimistic about the prospects of the Zeder group. • Drought and tough economic conditions likely to remain a challenge in the short term – however the sector should be resilient in the medium term • Appropriately diversified portfolio likely to mitigate volatility • Strong exis