Brimstone Investment Corporation Limited Class N · JSE:BRN
Brimstone Investment Corporation Limited Class N — FY2024 Earnings Presentation
36 slides from Brimstone Investment Corporation Limited Class N's earnings presentation, December 2024
Slide 1: Financial Results for the Year Ended 31 Dec 2024
FINANCIAL RESULTS FOR THE YEAR ENDED 31 DEC 2024
Slide 2: Overview
¢ BRIMSTONE INVESTMENT CORPORATION LIMITED OVERVIEW
Slide 3: Philosophy
Philosophy Empowerment Positive Social Profitability Impact Founded in 1995 Listed on JSE in 1998
Slide 4: Business & economic environment for the year
Business & economic environment for the year Persistent high unemployment SA consumer under pressure Volatile Rand High interest rate environment Port, rail and road infrastructure under pressure Global geo-political tension and conflict High crime levels Water and sanitation infrastructure under pr
Slide 5: Our investment ethos
Our investment ethos Invest in diversified businesses with multi-currency income streams Long-term view Active participation ESG conscious Currently concentrated in the food sector No alcohol, tobacco, gambling, micro-lending, etc.
Slide 6: Group at 31 December 2024
Group at 31 December 2024 Food Financial Services and Property RE AFRICA Restricted BEE structures Healthcare Other
Slide 7: Group & Associated Brands
Sea Harvest Le. FUND SS DESERT DIAMOND G (PTY) LTD WA pon MuLtiCHoice INVESTMENT CORPORATION LIMITED Profitability. Eny ial Impact. Group & Associated Brands %|FPG oe pet) + ICE CREAM + FPG THE HEART OF DAIRY GOODNESS Le SELECTA Armenber of he SERED Group — Selecta Sea Products
Slide 8: Some products from the group
eg BRIMSTONE INVESTMENT CORPORATION LIMITED Profitability. Empowerment. Positive Social Impact.
Slide 9: Contribution to Intrinsic Gross Asset Value
Contribution to Intrinsic Gross Asset Value Healthcare R’000 Other 1% Cash 2% Restricted BEE2% 2% CORE 4 194 649 Financial OCEANA 2 208 899 Services & Property 13% SEA HARVEST 1 332 317 FPG 490 416 INVESTMENTS 31 Dec 2024 PROPERTY FUND Food AON RE AFRICA 87 903 79% OBSIDIAN HEALTH 75 114 NON-CORE 18
Slide 10: Salient features for year to Dec 2024
Salient features for year to 31 Dec 2024 ▪ Headline earnings per share up 51% to 108 cents (2023: 71.6 cents) ▪ Dividend declared of 40 cents per share (2023: 40 cents) ▪ Repaid funders R516.8 million ▪ Repurchase of 4.5 million shares for R21.7m ▪ Subsequent to year-end, repurchased 861 325 shares
Slide 11: Underlying Investment Performance
UNDERLYING INVESTMENT PERFORMANCE
Slide 12: Oceana: Shareholding 25.1%
Shareholding – 25.1% ▪ Accounts for 49% of Brimstone’s intrinsic gross asset value ▪ Shareholding of 32.7m shares, market value R2.2bn (Dec 2023: R2.3bn) ▪ Recorded R299.6m (2023: R366.4m) in equity accounted earnings to Sept 2024 ▪ Received cash dividends of R162m (2023: R142.4m) during the year ▪
Slide 13: Sea Harvest: Shareholding 44.5%
Shareholding – 44.5% ▪ Accounts for 30% of Brimstone’s intrinsic gross asset value ▪ Sea Harvest concluded the Terrasan acquisition - issued 60 million fresh Sea Harvest shares to Terrasan at R10 per share as part of the purchase consideration ▪ Sea Harvest is no longer a subsidiary of Brimstone - t
Slide 14: FPG Property Fund: Shareholding 10.0%
Shareholding – 10.0% ▪ Cape-based black owned and managed unlisted property fund with a property portfolio independently valued in excess of R10bn ▪ 58 investment properties in SA and UK, including 38 retail convenience shopping centres in SA and 15 properties in UK ▪ This investment was revalued up
Slide 15: FPG Investments: Shareholding 1.4%
Shareholding – 1.4% ▪ FPG Investments is the holding company of FPG Property Fund, owning 86.4% of the Fund ▪ FPG Investments has interests in a chain of franchised fast-food retail outlets and an ice cream manufacturing business ▪ Brimstone acquired 1.6m shares (1.4%) in FPG Investments for R50m in
Slide 16: Obsidian Health: Shareholding 70%
Shareholding – 70% ▪ A leading supplier of innovative healthcare solutions to private and public sector ▪ Strong revenue growth of 29% and EBITDA growth of 63% mainly driven by the new agency Biosciences Diagnostics in the Life Sciences division ▪ Profitability positively impacted by margin improvem
Slide 17: RE Africa
RE AFRICA Effective shareholding - 18% ▪ Equity accounted earnings of R21.3m (2023: R22.5m) ▪ Intrinsic gross asset value R87m (Dec 2023: R78m) ▪ Received a dividend of R24.3m (2023: R15.4m) during the year Amounts stated in respect of associates held through partially owned subsidiaries are before
Slide 18: Phuthuma Nathi: Shareholding 1.3%
Shareholding – 1.3% ▪ Closing share price R81.01 (Dec 2023: R93.00) ▪ Disposed of 1 000 000 Phuthuma Nathi shares for R100m ▪ Remaining shares revalued downwards by R10.7m to R72.5m at year end ▪ Received a dividend of R18.2m (2023: R38.6m) during the year ▪ Latest closing price R94.00 (03 Mar 25)
Slide 19: SAED: Shareholding 25%
Shareholding - 25% ▪ Provides equity growth capital to high potential small and medium-sized enterprises including ASG Holdings (Pty) Ltd and Decision Inc. (Pty) Ltd ▪ SAED contributed R0.2m in equity accounted earnings (2023: R8.7m) ▪ Brimstone accrued a dividend of R3.5m (2023: R1.6m) during the y
Slide 20: Financial Results
¢ BRIMSTONE INVESTMENT CORPORATION LIMITED FINANCIAL RESULTS
Slide 21: Group Income Statement
Group Income Statement Key line items Dec Dec R’000 2024 2023 Change SHG Sales and fee income 2 195 642 6 460 762 (66%) OBH: R72m (29%) Dividends received 31 620 68 201 (54%) Operating profit 63 054 455 096 (86%) SHG Fair value gains /(losses) 159 036 (37 220) (527%) 2023: SHG R93m gain Other invest
Slide 22: Sea Harvest Line Items Included in Group Income Statement
Sea Harvest Line Items Included in Group Income Statement1 Dec Dec % R’000 2024 2023 Change Sales and fee income 1 868 268 6 204 776 Dividends received - - Operating profit 85 297 459 600 Fair value gains - 16 909 2023: R93m Gain Other investment (losses)/gains (16 239) 95 548 on Purchased Loans Sha
Slide 23: Analysis and Reconciliation of Dividends Received
Analysis and Reconciliation of Dividends Received Dec Dec R’000 2024 2023 Sea Harvest 63 824 60 632 Obsidian 3 500 - Oceana 162 034 142 393 AON Re (net of minority share) 14 580 9 244 Milpark (net of minority share) - 7 040 Phuthuma Nathi 18 240 38 610 Equites 3 367 21 411 Other 14 503 10 784 Total
Slide 24: Analysis of Fair Value Movements
Analysis of Fair Value Movements Dec Dec R’000 2024 2023 FPG Properties 77 792 50 277 Financial liability (Lion “Cell”) 59 934 - STADIO Holdings 29 624 13 505 Equites 2 661 (40 340) Phuthuma Nathi (3 736) (76 025) ₋ Realised gain 7 000 - - Unrealised loss (10 736) (76 025) MTN Zakhele Futhi (15 794)
Slide 25: Share of Profits of Associates and JV's
Share of Profits of Associates and JV’s Dec Dec R’000 2024 2023 Change Oceana* 299 609 366 401 (18%) Sea Harvest** 109 274 4 846 Aon Re 21 253 22 536 (6%) Milpark - 24 854 Other 3 079 9 694 (68%) Total 433 215 428 331 1% *Included in the share of Oceana’s profits of the prior year is R103.6 million
Slide 26: Net Finance Costs
Net Finance Costs Dec Dec R’000 2024 2023 Brimstone (Newshelf 1063) 200 104 225 940 Sea Harvest 98 086 245 903 Total finance costs 298 190 471 843 Interest income (30 913) (29 866) Net finance costs 267 277 441 977
Slide 27: Group Balance Sheet
Group Balance Sheet Key line items Dec Dec R’000 2024 2023 SHG deconsolidation and Non-current assets 4 950 073 9 368 582 equity acc. Current assets 332 468 2 887 122 Total assets 5 282 541 12 255 704 Non-current liabilities ( 1 759 339) ( 5 642 336) Current liabilities (232 075) (1 508 892) SHG dec
Slide 28: Intrinsic Net Asset Value
¢ BRIMSTONE INVESTMENT CORPORATION LIMITED INTRINSIC NET ASSET VALUE
Slide 29: Intrinsic NAV - Listed investments
INTRINSIC NAV - Listed investments Gross CGT INAV Asset % held Valuation basis R’000 R’000 R’000 Oceana 25.1% Market value 2 208 899 - 2 208 899 Sea Harvest 44.5% Market value 1 332 317 - 1 332 317 Phuthuma Nathi 1.3% Market value 72 538 - 72 538 MTN Zakhele Futhi 1.4% Market value 13 448 - 13 448 3
Slide 30: Intrinsic NAV - Unlisted investments
INTRINSIC NAV - Unlisted investments Valuation Gross CGT INAV Asset % held basis R’000 R’000 R’000 FPG Property Fund 10.0% Book value 440 416 (60 609) 379 807 FPG Investments 1.4% Cost 50 000 - 50 000 Aon Re Africa 18% PE valuation 87 903 (17 263) 70 640 Obsidian 70% Book value 75 114 (8 125) 66 989
Slide 31: Intrinsic NAV – Summary - Listed/Unlisted
INTRINSIC NAV – Summary - Listed/Unlisted Gross Debt CGT INAV Asset R’000 R’000 R’000 R’000 Listed 3 627 202 - - 3 627 202 Unlisted 752 666 - (68 393) 684 273 Cash / (Net debt) 91 206 (1 721 323) - (1 630 117) Total 4 471 074 (1 721 323) (68 393) 2 681 358 Intrinsic NAV per share 1 851 (713) (28) 1
Slide 32: Intrinsic NAV – Summary – Core/Non-core
INTRINSIC NAV – Summary – Core/Non-core Gross Debt CGT INAV Asset R’000 R’000 R’000 R’000 CORE 4 194 649 - (85 997) 4 108 652 NON-CORE 185 219 - 17 604 202 823 Cash / (Net debt) 91 206 (1 721 323) - (1 630 117) Total 4 471 074 (1 721 323) (68 393) 2 681 358 Intrinsic NAV per share 1 851 (713) (28) 1
Slide 33: Intrinsic NAV - Key statistics
INTRINSIC NAV - Key statistics 31 Dec 31 Dec R’000 2024 2023 Change Intrinsic gross asset value 4 471 074 5 280 892 (15.3%) Book NAV 3 238 357 3 577 628 (9.5%) Book NAV per share (cents) 1 340.7 1 457.2 (8.0%) Intrinsic NAV 2 681 358 2 978 863 (10.0%) Intrinsic NAV per share (cents) 1 110.1 1 213.3
Slide 34: Delivering on our commitments
Delivering on our commitments In 2022 committed to paying back R600m debt over the 3 years to Dec 2025 Repaid funders R517m during the year under review Debt reduction funded by disposals: Sale of entire holding of Millpark for R117.5m Sale of entire holding of Equites for R197.4m Sale of entire hol
Slide 35: Questions
¢ BRIMSTONE INVESTMENT CORPORATION LIMITED QUESTIONS
Slide 36: Thank you
¢ BRIMSTONE INVESTMENT CORPORATION LIMITED THANK YOU