York Timber Holdings Limited · JSE:YRK
York Timber — FY2021 Earnings Presentation
31 slides from York Timber's earnings presentation, Jun 30, 2021
Slide 1: Results Presentation for the Year Ended 30 June 2021
RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2021
Slide 2: Financial overview
Financial overview 2 Revenue EBITDA Core earnings per share 29% R314 million 223% to R1 851 million to R326 million to 41 cents (2020: R1 439 million) (2020: R12 million) (2020: 33 cents loss) Total debt Self insurance fund balance Cash flow from operations 12% 83% to R515 million to R98 m
Slide 3: Eight-year historical financial results
Eight-year historical financial results 3 CAGR % 2014- Audited % Audited Audited Audited Audited Audited Audited Audited 2021 2021 change 2020 2019 2018 2017 2016 2015 2014 Group revenue R'000 5% 1 850 670 29% 1 438 825 1 600 522 1 812 350 1 832 805 1 771 049 1 543 149 1 323 976 Gross profit R'000 4
Slide 4: Eight-year historical financial results | continued
Eight-year historical financial results | continued 4 CAGR % 2014- Audited % Audited Audited Audited Audited Audited Audited Audited 2021 2021 change 2020 2019 2018 2017 2016 2015 2014 Basic earnings/(loss) R'000 15% 139 644 164% (217 637) (36 268) 138 280 367 286 238 212 101 468 50 994 Weighted ave
Slide 5: Financial overview | continued
Financial overview | continued 5 GROUP REVENUE GROSS PROFIT EBITDA R million R million R million 2 000 600 400 500 1 500 300 400 1 000 300 200 200 500 100 100 0 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 CASH GENERATED
Slide 6: Statement of profit or loss and other comprehensive income
Financial overview | continued 6 Statement of profit or loss and other comprehensive income 2021 % 2020 for the year ended 30 June 2021 R’000 change R’000 Increase in volume and average selling price Revenue 1 850 670 29% 1 438 825 Cost of Sales (1 337 549) (13%) (1 180 758) Gross Profit 513 121 99%
Slide 7: Statement of financial position
Financial overview | continued 7 Statement of financial position 2021 % 2020 as at 30 June 2021 R’000 change R’000 Biological assets down 1% due to increase ASSETS in discount rate of 0,43%. Non-current assets 3 911 527 6% 3 690 563 Biological assets 2 502 597 5% 2 391 304 Investment property 34 180
Slide 8: Statement of financial position (equity and liabilities)
Financial overview | continued 8 Statement of financial position 2021 % 2020 as at 30 June 2021 R’000 change R’000 EQUITY AND LIABILITIES Equity 3 024 328 5% 2 880 872 Share capital 1 484 157 0% 1 480 232 Reserves 2 193 (47%) 4 148 Retained income 1 537 978 10% 1 396 492 Liabilities Non-current liab
Slide 9: Statement of cash flows
Financial overview | continued 9 Statement of cash flows 2021 % 2020 as at 30 June 2021 R’000 change R’000 Cash generated from operation 429 022 346% 96 191 The acquisition of the Twycross and Skillfull Interest and tax paid (66 828) (47%) (45 479) 1016 CC businesses required an investment of Net ca
Slide 10: Biological Asset Valuation “BAV”
Biological Asset Valuation “BAV” 10 Fair value adjustment R13 million (2020: loss of R159 million) R’000 Reasons TUP remained in line / Replanting of burnt compartments and frost damage Change in product mix and age 36 761 compartments Revenue and Price 136 894 Increase in price Operating costs (5
Slide 11: Cash flow profile of trees (per ha)
Cash flow profile of trees (per ha) 11 • The following graph shows the indicative “real” cumulative cash flow profile per hectare of a tree from date of planting CUMULATIVE CASH FLOW PROFILE R300 000 R250 000 R200 000 R150 000 R100 000 R50 000 R0 -R50 000 -R100 000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Slide 12: Goodwill impairment assessment
Goodwill impairment assessment 12 Fair value less cost to sell model 30 June 2021 30 June 2020 Description (R’000) (R’000) Impairment required? No No Carrying amount of segment assets Property, plant and equipment 130 867 128 937 Biological assets 2 875 903 2 906 890 Goodwill balance 357 630 357 630
Slide 13: Volume regulation – Escarpment plantations
Volume regulation – Ecarpment plantations 13 • The following graph shows the expected yield regulation of volumes from York’s Escarpment plantations ESCARPMENT VOLUMES 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2
Slide 14: Debt facilities 2021
Debt facilities 2021 14 Balance Description R’000 Originated Repayment terms Land Bank term loan 274 385 • Original 2007 purchase loan for GFP • Re-financed June 2019 – equal monthly assets were repaid through capital raise instalments over 7 years at prime less • R600 million re-financed with Land
Slide 15: Debt facilities 2021 | continued
Debt facilities 2021 | continued 15 Land Bank principal debt outstanding (R’000) June 2021 June 2022 June 2023 June 2024 June 2025 June 2026 Plywood expansion loan 79 495 - - - - - Plywood press loan 16 482 9 662 2 842 - - - Term loan 274 385 226 377 175 155 120 528 62 217 - Total 370 361 236 039 17
Slide 16: Major capex spending
Major capex spending 16 for the period ended 30 June 2021 Amount Project (R’000) Source Mercedes Benz trucks 5 384 Financed Plywood outbound truck 4 355 Financed Sabie – Sennebogen 5 642 Financed Stadsrivier – establishment of 40ha of soft citrus 12 079 Operational CF Bear 1 refurbishment 2 906 Oper
Slide 17: Spindleless peeler project update
Spindleless peeler project update 17 Project objective Advantages of this technology: • This technology is suitable for smaller diameter logs – resulting in lower raw material cost • The final core diameter is smaller (30mm vs 70mm) • The crosscut saws can cut over length logs to the exact length re
Slide 18: Spindleless peeler project update
Spindleless peeler project update 18
Slide 19: Spindleless peeler project update
Spindleless peeler project update 19
Slide 20: Spindleless peeler project update
Spindleless peeler project update 20
Slide 21: Stadsrivier Vallei
Stadsrivier Vallei 21 • Diversification into high value Mandarin crops • Stadsrivier Plantation identified as suitable site – soil, climate • De-stumping began in March 2021 for the first 20 ha of Tango Variety • Additional 20 ha Nadorcott variety obtained and added to development • Farm Pine Valley
Slide 22: Stadsrivier Vallei Boerderij
Stadsrivier Vallei Boerderij 22 • Water rights obtained increased potential hectares to be developed • Twycross: ca 542 000m³ and Tropicado: ca238 000m³ • Total ca 780 000m³ @ 3 250m³ / ha • Potential 240ha citrus to be planted • 3 250m³ calculated on long-term rainfall, evapotranspiration, temperat
Slide 23: Citrus development: Before
Citrus development: Before 23
Slide 24: Citrus development: Post planting
Citrus development: Post planting 24
Slide 25: Future planting plan
Future planting plan Total Citrus : ee Total Macadamias a a\ YORK TIMBERS
Slide 26: Business combination
Business combination 26 for the period ended 30 June 2021 Project R’000 Property, plant and equipment (including bearer plants) 83 182 Biological assets: Unharvested fruit 3 892 Deferred tax (8 163) Inventories 2 312 Trade and other payables (189) Total net identifiable assets 81 034 Goodwill * 1 18
Slide 27: Outlook
Outlook 27 York’s plantations are its key strategic asset. While significant log volumes are still required from external sources until our own plantations enter a normal rotation cycle, this key asset will be carefully managed to deliver the optimal mix of cash flows and returns to shareholders. Th
Slide 28: In memoriam
28 In memoriam The COVID-19 virus does not discriminate, and at York, we have felt the pain and loss in our community. The Company mourns those we have lost during this pandemic: • Bongiwe Happiness Khumalo General labourer 10 August 1983 – 15 January 2021 • Mangava Joyce Usenga Packer 5 December 19
Slide 29: York’s core values
York’s core values 29 DOWN 1. York employees are excited about teamwork and being part of the York team, value client relationships and communication with all stakeholders. Collaboration between business units is vital. ACROSS 2. York seeks employees that are enthusiastic, creative, dynamic, inspiri
Slide 30: Disclaimer
Disclaimer 30 This presentation contains forward-looking statements about York’s operations and financial conditions. The Company has prepared this presentation based on information available to it at the time of writing, including information derived from public sources. No representation or warran
Slide 31: Thank you
THANK YOU a\ YORK TIMBERS