Zeder Investments Limited · JSE:ZED
Zeder Investments — FY2020 Earnings Presentation
20 slides from Zeder Investments's earnings presentation, April 2020
Slide 1: Full Year Results
Full Year Results For the year ended 29 February 2020 Presented by: Norman Celliers Chief Executive Officer
Slide 2: Contents
Contents • Corporate overview • Noteworthy transactions • Financial results • Historical review • Portfolio review • Prospects and outlook • Questions
Slide 3: Corporate overview
An investment holding company Corporate overview We play an active role in investee companies through strategic interests with a controlling influence. Business definition Business definition Strategic Focus • An actively managed investment holding Industry: • Agribusiness company listed on the Joha
Slide 4: Category 1 disposal
Category 1 disposal Noteworthy transactions The disposal of Zeder’s interest in Pioneer Foods was successfully implemented on 23 March 2020. • PepsiCo acquired the entire issued share capital of Pioneer Foods • The main terms of the transaction were contained in detailed SENS announcements, circular
Slide 5: Application of the proceeds
Application of the proceeds Noteworthy transactions Zeder has used a portion of the proceeds to settle all its debt and related obligations and declared a special dividend of R3.93bn. Application of proceeds Gross proceeds from the disposal of investment in Pioneer Foods R 6,408 m Settlement of debt
Slide 6: Disposal and unbundling
Disposal and unbundling Noteworthy transactions Capespan executed and implemented significant transactions and restructuring since the prior comparative period and the corresponding impact should be noted. • Successfully disposed of the investment in China during 2018 • Fair value gains reported in
Slide 7: Additional commitments
Additional committments Noteworthy transactions Zeder has committed an additional R200m-300m to Zaad during the period in order to fund its underlying transactions, as announced on SENS. • Diversified specialist in the formulation, manufacture and supply of agrochemicals • Number one supplier of agr
Slide 8: Executive summary
Executive summary Financial results 29 February 2020 • Investor sentiment and capital allocation towards country and sector continued to deteriorate during the period under review • The PepsiCo offer for Pioneer Foods provided SOTP value underpin during the period • Intrinsic value indicators: ─ Sum
Slide 9: Sum-of-the-Parts
Sum-of-the-Parts Financial results Zeder’s SOTP value increased to R5.95 as at 7 April 2020. 29 February 2020 • The PepsiCo offer for Pioneer Foods provided SOTP value underpin during the period • Pioneer Foods investment converted into cash on 23 March 2020 - all debt was immediately settled • Unen
Slide 10: Earnings
Earnings Financial results Recurring Headline Earnings per share increased by 18.4%. 29 February 2020
Slide 11: Intrinsic value
Intrinsic value Historical review Valuations remain in a downward cycle but positively impacted by effect of the PepsiCo offer to acquire Pioneer Foods. R’bn R/share 16.00 12.00 14.00 10.00 12.00 8.00 10.00 10.2 9.65 8.00 5.97 6.00 5.64 5.26 6.00 4.09 4.23 4.24 4.00 5.16 4.00 1.92 2.00 2.00 1.46 1.1
Slide 12: Strategic interests across value chain
Strategic interests across value chain Portfolio review The remaining portfolio offers strategic exposure to meaningful and leading companies across value chain with strong management teams focused on driving growth in the long-term. Indicative value Company Salient features Zeder Share Zeder Value
Slide 13: Pioneer Foods results
Portfolio review Pioneer Foods reported a 5.6% decrease in adjusted RHEPS for the year ended 30 September 2019. Historical overview Summarised Income Statement Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Historical R'm R'm R'm R'm R'm R'm Revenue 17,699 18,748 20,600 19,575 20,152 22,273 EBITDA 2,006
Slide 14: Capespan results
Portfolio review Capespan reported a recurring loss of R36m for their year ended 31 December 2019. Historical overview Summarised Income Statement Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Historical R'm R'm R'm R'm R'm R'm Revenue 7,392 7,688 8,311 6,619 5,557 3,951 EBITDA 227 299 250 241 172 72 EB
Slide 15: TLG results
Portfolio review TLG reported a recurring headline profit of R128m for its year ended 31 December 2019. Historical overview Summarised Income Statement Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Historical R'm R'm R'm R'm R'm Revenue 523 511 609 794 949 EBITDA 172 122 172 226 321 EBITDA margin 32.9% 23.9% 2
Slide 16: Kaap Agri results
Portfolio review Kaap Agri reported an increase of 5.9% in RHEPS for their year ended 30 September 2019. Historical overview Summarised Income Statement Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Historical R'm R'm R'm R'm R'm R'm Revenue 4,875 5,341 5,653 6,416 6,549 8,452 EBITDA 263 311 370 447 478
Slide 17: Zaad results
Portfolio review Zaad reported a recurring headline per share increase of 7.9% for their year ended 31 January 2020. Historical overview Summarised Income Statement Feb 15 Feb 16 Jan 17 Jan 18 Jan 19 Jan 20 Historical R'm R'm R'm R'm R'm R'm Revenue 947 1,217 1,344 1,409 1,635 2,113 EBITDA 142 223 2
Slide 18: Agrivision results
Portfolio review Agrivision reported a recurring headline profit of US$866k for their year ended 31 December 2019. Historical overview Summarised Income Statement Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Historical $'000 $'000 $'000 $'000 $'000 $'000 Revenue 32,532 31,711 39,718 34,994 30,571 33,93
Slide 19: Quantum Foods results
Portfolio review Quantum Foods reported a decrease of 44% in HEPS and declared dividends of 25c per share during their year ended 30 September 2019. Historical overview Summarised Income Statement Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Historical R'm R'm R'm R'm R'm R'm Revenue 3,561 3,468 3,913
Slide 20: Prospects and outlook
Prospects and outlook • PepsiCo transaction enabled Zeder to: – settle all debt – distribute R3.93bn through special dividend – retain R1bn in unencumbered cash reserves • Covid-19 crisis will inevitably have an impact: – Most investee companies and divisions classified as “essential services/indust