Zeder Investments Limited · JSE:ZED
Zeder Investments — Shareholder Meeting (July 2022)
21 slides from Zeder Investments's shareholder meeting presentation, Jul 20, 2022
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING PRESENTED BY: JOHANN LE ROUX DATE: 20 JULY 2022 1
Slide 2: Agenda
AGENDA • Social and ethics feedback • Post balance sheet events and value creation • Sum-of-the-parts update • Investment portfolio • Strategy and prospects • Questions 2
Slide 3: Social and Ethics Feedback
SOCIAL AND ETHICS FEEDBACK INVESTMENTS LIMITED
Slide 4: Social and Ethics Feedback
SOCIAL AND ETHICS FEEDBACK Zeder implements its monitoring and adherence to Social and Ethics obligations through conscious and deliberate participation at investee company level while aligning and monitoring at holding company level. ─ Zeder’s social and ethics (page 50) and governance (page 12) re
Slide 5: Social and Ethics Feedback (Examples)
SOCIAL AND ETHICS FEEDBACK (EXAMPLES) While it is impossible to record each “social and ethical” initiative across the group, below are examples referenced to illustrate our actions and intentions. Education Education Skills Skills Development Development Sustainability Sustainability Community Comm
Slide 6: Post Balance Sheet Events: Disposal of The Logistics Group
POST BALANCE SHEET EVENTS • Disposal of investment in The Logistics Group Disposal of TLG Funds received Earn-out payments Group • Zeder sold its 98.22% • The initial amount • Additional R218m due interest in TLG Group received by Zeder was to Zeder • This disposal was duly R1.35bn • Linked to exten
Slide 7: Post Balance Sheet Events: Unbundling of Kaap Agri shareholding
POST BALANCE SHEET EVENTS • Unbundling of Kaap Agri shareholding Unbundling of Kaap Rational for Zeder’s history with Agri unbundling Kaap Agri • Board resolved to • Unbundling was in the • Zeder has been a unbundle Kaap Agri best interest of Zeder shareholder since 2006 shareholding shareholders •
Slide 8: Post Balance Sheet Events: Special Dividends
POST BALANCE SHEET EVENTS • Special dividends Feb 2020 special Feb 2021 special Feb 2022 special Total special dividend dividend dividend dividends • A special dividend of • A special dividend of • A special dividend of • In total special R2.30 per share was 20c per share was 92.5c per share was div
Slide 9: Post Balance Sheet Events Value Creation
POST BALANCE SHEET EVENTS VALUE CREATION The recent corporate actions and resultant special dividends had a positive impact on Zeder’s value creation for shareholders over the past 3 years, during the main Covid period. 28 Feb 2019 Transactions/special dividend Post further dividend Interest Unbundl
Slide 10: Sum-of-the-Parts Update
SUM-OF-THE-PARTS UPDATE As on 13 July 2022, Kaap Agri and the TLG Group are no longer part of the Zeder Group, with the decrease in the cash balance as a result of the special dividend paid during May 2022. The Zeder bridge loan to Zaad was converted to equity. 28 Feb 2022 13 Jul 2022 Interest Share
Slide 11: Investment Portfolio
INVESTMENT PORTFOLIO • Covid and Russia-Ukraine conflict • Investment portfolio update 11
Slide 12: Investment Portfolio: Covid & Russia-Ukraine Conflict
INVESTMENT PORTFOLIO COVID & RUSSIA-UKRAINE CONFLICT • Covid - Impact on Zeder and its investment portfolio ─ Pro-active measures taken and implemented by portfolio management ─ Supply chain constraints leading to increased costs and margin erosion ─ Inefficiencies at South African and global ports
Slide 13: Zaad is a specialist agricultural seed and agrochemicals company
Zaad is a specialist agricultural seed and agrochemicals company that develops and supplies a broad basket of proprietary seeds and chemicals to emerging markets. 13
Slide 14: Investment Portfolio Update: Zaad
INVESTMENT PORTFOLIO UPDATE Zeder converted the outstanding loan of R330m to Zaad into equity via a rights issue on 30 April 2022. GENERAL COMMENTS • Good performances from Agricol, FarmAg (chemicals) and • Valuation only adjusted at interim and full year reporting May Seed. EA Seed now also contrib
Slide 15: Capespan is an internationally diversified fruit group
Capespan is an internationally diversified group with a primary exposure to fruit farming, marketing, distribution and related services. 15
Slide 16: Investment Portfolio Update: Capespan
INVESTMENT PORTFOLIO UPDATE The Capespan farming operations (citrus and pome) had good agricultural seasons and produced good volumes. GENERAL COMMENTS • Significant supply chain constraints and inefficiencies at South • Valuation only adjusted at interim and full year reporting African ports and gl
Slide 17: Agrivision Africa is a vertically integrated grain-related food supplier
Agrivision Africa is a vertically integrated, grain-related food supplier that farms, mills and distributes products in the northern region of Zambia and southern parts of the DRC. 17
Slide 18: Investment Portfolio Update: Agrivision Africa
INVESTMENT PORTFOLIO UPDATE The Mpongwe milling operation has been sold (agreements signed) and higher soft commodity prices bodes well for the Agrivision farming operations. GENERAL COMMENTS • Improved performance: • Mpongwe milling sale and good operational performance will reduce debt o Mkushi fa
Slide 19: Strategy and Prospects
STRATEGY AND PROSPECTS INVESTMENTS LIMITED
Slide 20: Strategy and Prospects
STRATEGY • Zeder’s objective remains to maximise shareholder wealth ─ Grow the investee portfolio companies ─ Dividends to shareholders ─ Evaluate disposals when appropriate (timing and price) • The TLG Group disposal, Kaap Agri unbundling and special dividends had a positive impact on Zeder’s value
Slide 21: Thank you
Thank you Awaiting image… WE ARE BASED IN STELLENBOSCH, WESTERN CAPE, SOUTH AFRICA. PHYSICAL ADDRESS POSTAL ADDRESS 2ND FLOOR, OU KOLLEGE PO BOX 7403 35 KERK STREET STELLENBOSCH STELLENBOSCH 7599 7600 TEL: 021 831 9559 FOR FURTHER INFORMATION, PLEASE CONTACT US AT INFO@ZEDER.CO.ZA