Cashbuild Limited · JSE:CSB
Cashbuild — FY2022 Earnings Presentation
38 slides from Cashbuild's earnings presentation, Jun 26, 2022
Slide 1: Final Results Presentation for the year ended 26 June 2022
2022 FINAL RESULTS PRESENTATION FOR THE YEAR ENDED 26 JUNE 2022
Slide 2: Contents
Contents Final Results Presentation 1. Financial review 6 2. Product categories 19 3. Store development and summary 28 Financial results 36
Slide 3: Disclaimer
FINAL RESULTS PRESENTATION FOR THE YEAR ENDED 26 JUNE 2022 Notes Disclaimer This presentation differs from the presentation available on the website as a result of industry sensitive information contained therein. The financial information pertaining to Cashbuild Limited’s (Cashbuild’s) results are
Slide 4: Nature of Business; Looted Stores Update
Nature of Business • Mass retailer of building materials, home improvement and related products • Offers a focused range of quality products at competitive prices • Selling predominantly for cash • 318 stores (264 Cashbuild and 54 P&L Hardware) 3 Notes Looted Stores Update Trading Closed - permanent
Slide 5: Financial Summary - Statutory
Financial Summary - Statutory Revenue Operating profit Headline earnings Net asset value per share R11.1bn R876m R436m R93.50 12% 16% 33% 8% 14 1200 700 120 Rbn Rm Rand Rm 110 12 1000 600 100 90 10 500 800 80 (11%) 8 (17%) 400 70 600 (40%) 60 6 300 50 400 40 4 200 30 (12%) (15%) 200 (27%) 20 2 100 1
Slide 6: Financial Review
1 FINANCIAL REVIEW 6 CASHBUILD RESULTS FOR THE YEAR ENDED 26 JUNE 2022
Slide 7: Income Statement and Highlights
Income Statement Statutory year-on-year Audited Audited 26 Jun 2022 27 Jun 2021 R’m (52 Weeks) (52 Weeks) % variance Revenue 11 145 12 616 (12) Gross profit 2 928 3 390 (14) Gross profit % 26.3 26.9 Operating expenses (2 052) (2 351) (13) Operating expenses % 18.4 18.6 Operating profit 876 1 039 (16
Slide 8: Revenue Breakdown; Average Basket Size
Revenue Breakdown % change Cashbuild stores P&L Hardware stores R’m FY 2022 FY 2021 Total ^ Total New Existing* Total New Existing* Quarter 1 2 887 3 317 (13) (11) 2 (13) (27) 1 (28) Quarter 2 3 002 3 378 (11) (10) 2 (12) (22) 1 (23) 1st Half 5 889 6 695 (12) (11) 2 (13) (24) 1 (25) Quarter 3 2 673
Slide 9: Customer Transactions; Gross Profit and EBIT Margin
Customer Transactions RSA Hard Lockdown 2020 ‘000 Essential Trade allowed 2020 All stores Growth: Q1: (25%) Q2: (18%) Q3: (17%) Q4: (16%) 2 400 2 200 2 000 1 800 1 600 1 400 1 200 1 000 800 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Existing stores Growth: Q1: (26%) Q2: (20%) Q3: (19%) Q4: (17%
Slide 10: Segmental Disclosure
Segmental Disclosure Cashbuild P&L Hardware Cashbuild Namibia, Lesotho Cashbuild Botswana, Total Group South Africa South Africa and eSwatini Malawi and Zambia 26 Jun 27 Jun 26 Jun 27 Jun 26 Jun 27 Jun 26 Jun 27 Jun 26 Jun 27 Jun R’m % % % % % 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 Revenu
Slide 11: Operating Expenses; EPS and DPS
Operating Expenses 3-year Existing compound stores# % of % of % % variance % variance R’m revenue total Jun 2022 Jun 2021 variance Jun 2019 Jun 2022 Total 18.4 2 052 2 351 (13) 2 (15) Main Contributors: People 9.0 48.8 1 004 1 174 (15) 3 (16) Advertising 1.3 7.3 150 124 21 2 17 Delivery 1.3 7.1 146
Slide 12: Statement of Financial Position; Cash Flow
Statutory Statement of Financial Position Audited Audited % R’m 26 Jun 2022 27 Jun 2021 variance Assets Property, plant and equipment 1 266 1 166 9 Right-of-Use asset 1 177 1 298 (9) Intangible assets 425 423 - Inventories 1 520 1 546 (2) Trade and other receivables 136 129 5 Cash resources 1 939 2
Slide 13: Product Categories
PRODUCT 4 = ™ TEXTU TEY _emierruc ACRYLIC PUA lid 5 eterw —— ft ‘Weal for ete Walls ___ CREAM
Slide 14: Group Sales Per Week; Cement Sales
Group Sales Per Week KZN and Gauteng July 2021 unrests R’million RSA Hard Lockdown 2020 Essential Trade allowed 2020 Q1 Q2 Q3 Q4 W1 W3 W5 W7 W9 W11 W13 W15 W17 W19 W21 W23 W25 W27 W29 W31 W33 W35 W37 W39 W41 W43 W45 W47 W49 W51 2020 2021 2022 2023 20 Notes Cement Sales Pockets Q1 Q2 Q3 Q4 W1 W3 W5 W
Slide 15: Cement Unit Sales; Total Timber Sales
Cement Unit Sales Per Supplier Jun 2021 Dec 2021 Jun 2022 5% 5% 5% 5% 12% 4% 12% 4% 12% 5% 5% 5% 5% 9% 8% 27% 29% 28% 19% 20% 21% 22% 16% 17% AFRISAM PPC LAFARGE NPC SEPHAKU MAMBA CEMZA OTHER 22 Notes Total Timber Sales R’million Q1 Q2 Q3 Q4 24 22 20 18 16 14 12 10 W1 W3 W5 W7 W9 W11 W13 W15 W17 W19
Slide 16: Total Brick Sales; Total Roof Covering Sales
Total Brick Sales R’million Q1 Q2 Q3 Q4 19 17 15 13 11 9 W1 W3 W5 W7 W9 W11 W13 W15 W17 W19 W21 W23 W25 W27 W29 W31 W33 W35 W37 W39 W41 W43 W45 W47 W49 W51 2021 2022 2023 24 Notes Total Roof Covering Sales R’million Q1 Q2 Q3 Q4 29 25 21 17 13 W1 W3 W5 W7 W9 W11 W13 W15 W17 W19 W21 W23 W25 W27 W29 W3
Slide 17: Total Opening Sales; Total Decorative Sales
Total Opening Sales R’million Q1 Q2 Q3 Q4 25 23 21 19 17 15 13 11 W1 W3 W5 W7 W9 W11 W13 W15 W17 W19 W21 W23 W25 W27 W29 W31 W33 W35 W37 W39 W41 W43 W45 W47 W49 W51 2021 2022 2023 26 Notes Total Decorative Sales R’million Q1 Q2 Q3 Q4 55 45 35 25 15 W1 W3 W5 W7 W9 W11 W13 W15 W17 W19 W21 W23 W25 W27
Slide 18: Store Development and Summary
3 STORE DEVELOPMENT AND SUMMARY 28
Slide 19: Store Development; New Stores FY2022
Store Development Total Cashbuild Stores Total P&L Hardware Stores 264 264 60 59 61 252 256 257 55 9 4 9 8 3 11 14 2 1 249 255 260 57 58 241 247 54 54 46 June 2018 June 2019 June 2020 June 2021 June 2022 June 2018 June 2019 June 2020 June 2021 June 2022 Existing Cashbuild stores New Cashbuild stores
Slide 20: Stores by Location; Sales by Province
Stores by Location Number of stores Jun 2022 (Jun 2021) Location Town- Town Rural Metro (% of total) ship 86 (85) 2022 Stores 33% 31% 27% 9% 98 (97) 29 (30) 2022 Sales 37% 29% 23% 11% 2021 Stores 34% 30% 27% 9% 105 (107) 2021 Sales 35% 29% 26% 10% 31 Notes Sales by Province 3000 (21.2%) 2500 (12.9%)
Slide 21: Competitor Landscape; Summary
Competitor Landscape Corporate Competitors Independent Competitors – R50 billion market est. – R30 billion market est. 33 Notes Summary • Strong operating margin of 7.9%, not sustainable • Trading conditions expected to remain under pressure as macroeconomic conditions deteriorate • Inflation to rem
Slide 22: Thank You for Your Attendance and Participation
THANK YOU FOR YOUR ATTENDANCE AND PARTICIPATION WWW.CASHBUILD.CO.ZA +27 11 248 1500 Werner de Jager Etienne Prowse Shane Thoresson Chief Executive Finance Director Operations Director For any further Investor Relations questions please contact: Keyter Rech Investor Solutions Marlize Keyter mkeyter@k
Slide 23: Financial Results
FINANCIAL RESULTS CASHBUILD RESULTS FOR THE YEAR ENDED 26 JUNE 2022 36 23 37 CASHBUILD AUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 27
Slide 24: Financial highlights
Financial highlights revenue REVENUE (Rm) OPERATING PROFIT (Rm) 13 000 1 100 12 616 1 039 950 11 000 11 145 876 800 10 821 10 207 10 091 9 000 650 500 559 543 520 7 000 350 5 000 200 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 HEADLINE EARNINGS (Rm) NAV PER SHARE (cents) 700 11 000 10 000 650
Slide 25: Summary consolidated income statement – audited
Summary consolidated income statement – audited Year ended Year ended 26 June 2022 27 June 2021 % R’000 (52 weeks) (52 weeks) change Revenue 11 145 107 12 615 629 (12) Cost of sales (8 216 677) (9 226 014) (11) Gross profit 2 928 430 3 389 615 (14) Selling and marketing expenses (1 912 972) (1 995 8
Slide 26: Summary consolidated statement of comprehensive income
Summary consolidated statement of comprehensive income – audited Year ended Year ended 26 June 2022 27 June 2021 R’000 (52 weeks) (52 weeks) Profit for the year 478 956 670 087 Other comprehensive income reclassifiable to profit or loss: Total movement in foreign currency translation reserve (FCTR)
Slide 27: Additional information
Additional information Year ended Year ended R’000 26 June 2022 27 June 2021 Net asset value per share (cents) 9 350 10 212 Net asset value per share (excluding treasury shares) 10 329 11 258 Ordinary shares ('000s): – In issue 24 990 24 990 – Weighted-average 22 621 22 642 – Diluted weighted-averag
Slide 28: Summary consolidated statement of financial position
Summary consolidated statement of financial position – audited Year ended Year ended R’000 26 June 2022 27 June 2021 ASSETS Non-current assets 3 018 230 3 090 832 Property, plant and equipment 2 442 951 2 464 385 Intangible assets 424 994 423 464 Investment property 39 953 43 007 Investment in assoc
Slide 29: Summary consolidated statement of cash flows
Summary consolidated statement of cash flows – audited Year ended Year ended 26 June 2022 27 June 2021 (52 weeks) (52 weeks) Cash flows from operating activities Cash generated from operations 845 540 1 507 716 Finance cost paid (161 602) (162 502) Finance income received – non-investing 132 11 Tax
Slide 30: Statement of changes in equity; segmental analysis
Summary consolidated statement of changes in equity – audited R’000 Balance at 28 June 2020 Total comprehensive income for the year Shares purchased by Cashbuild South Africa for the Forfeitable Share Plan Dividends paid Recognition of share-based payments Balance at 27 June 2021 Total comprehensive
Slide 31: Attributable to owners of the company
Attributable to owners of the company Share-based Non- Share Share payments Retained controlling Total capital premium reserve FCTR earnings interests equity 227 (274 414) 95 262 24 372 2 271 169 38 399 2 155 015 – – – (11 578) 664 682 (325) 652 779 – (13 591) – – – – (13 591) – – – – (229 915) (1 9
Slide 32: Commentary
Commentary Nature of business Cashbuild is southern Africa’s leading retailer of quality building materials and associated products, selling direct to a cash- paying customer base through our chain of stores (318 at the end of this financial year which includes 54 P&L Hardware stores). Cashbuild car
Slide 33: Civil unrest and looting
Civil unrest and looting During the year, July 2021, 36 (32 Cashbuild and 4 P&L Hardware) stores across the Group were impacted by the unrest and looting. Stores were looted and damaged which led to the scrapping of various categories of property, plant and equipment (R20.4 million) and inventory (R
Slide 34: Notes to the summary consolidated financial information
Notes to the summary consolidated financial information 1. Basis of preparation The summary consolidated annual financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), the presentation and disclosure requirements of IAS 34 – Interim Financial Report
Slide 35: Earnings per share; Headline earnings per share
4. Earnings per share Earnings per share is calculated by dividing the earnings attributable to owners of the company for the period by the weighted-average number of 22 620 597 ordinary shares in issue at period-end (June 2021: 22 641 712 shares). 5. Headline earnings per ordinary share The calcula
Slide 36: Corporate information
Corporate information Directors: AGW Knock (British) (Chairman)*, WF de Jager (Chief Executive), M Bosman (Ms)*, M Bosman (Mr)*, Dr DSS Lushaba*, AJ Mokgwatsane*, AE Prowse, GM Tapon Njamo*, SA Thoresson, WP van Aswegen. (*Non-executive) Company Secretary: Takie Nengovhela Registered Office: 2 Hande
Slide 37: Notes
Notes CASHBUILD RESULTS FOR THE YEAR ENDED 26 JUNE 2022 50
Slide 38: www.cashbuild.co.za
(Cashbuild www.cashbuild.co.za