Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — FY2012 Earnings Presentation
45 slides from Calgro M3's earnings presentation, May 2012
Slide 1: Calgro M3 results presentation, May 2012
www.calgrom3.com May - 12
Slide 2: Disclaimer
Disclaimer “Calgro M3 has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information contained in this presentation, including all information that may be defined as 'forward-looking statements'. Forward-looking statements may be identified by
Slide 3: Calgro M3 – Background
Calgro M3 – Background Calgro M3 is an established property development company with a 17 year track record (established in 1995), specialising in delivering truly integrated development projects that adhere to Government’s BNG principles; Calgro M3 has a proven track record in the RDP, Rental and S
Slide 4: Calgro M3 – Background: development and finance partners
Calgro M3 – Background Development partners include: City of Johannesburg, Department of Housing Gauteng Provincial Government, Department of Housing City of Cape Town, Department of Housing Western Cape Provincial Government, Department of Housing I H S (International Housing Solutions) Finance par
Slide 5: A brief look at where we were, and where we are going
“A brief look at where we were, and where we are going… “
Slide 6: Calgro M3 – 2008 to mid-2011
Calgro M3 – 2008 to mid-2011 The Calgro M3 strategy for the last 3 years was based on survival and as a result: o Succession planning was neglected; o Overheads were scaled down by reducing staff and office space; o Calgro M3 Marketing Division was scaled down considerably; o As a result of construc
Slide 7: Calgro M3 – 2008 to mid-2011 (continued)
Calgro M3 – 2008 to mid-2011 (continued) The downside: The cost/price of survival included: o Major concerns raised by the Financial Institutions and Funding Partners with regards to capacity; o Succession planning was neglected and not in place by end-2011; o Company was left short-staffed; o Reduc
Slide 8: Calgro M3 – (mid-2011 and ahead)
Calgro M3 – (mid-2011 and ahead) Since mid-2011, the Calgro M3 strategy was adjusted to cater for growth. The strategy for the next 3 years will be to: o “get out of survival mode and start doing business again”; o become the residential developer of choice for Government, Financial Institutions and
Slide 9: Calgro M3 – Business Model
Calgro M3 — Business Model CALGRO M3 p a ee ee
Slide 10: Business Model
Business Model Identify project Top-structure Due diligence – market research, construction viability studies, etc Acquire land, Transfers to end- users, etc Turnkey Developer development funding, etc Infrastructure (bulk & Township link, internal) Establishment Marketing & Sales
Slide 11: Overview – Products and Market Definition
Overview – Products and Market Definition 5% exposure, R501 000 up to (20% maximum) R1 800 000+ Full- and sectional title Up to R 500 000 Integrated developments 95% exposure, Up to R300 000 (80% minimum) Subsidy of the day
Slide 12: Calgro M3’s Business Model
Calgro M3’s Business Model The company’s business model will remain mainly unchanged: o Principle of landowner developer to be retained with LAA (Land Availability Agreement) where available on our terms; o Shareholding retained in projects maximized while taking into account associated risks; o Mar
Slide 13: Calgro M3 – Financial Review
Calgro M3 — Financial Review CALGRO M3
Slide 14: Financial Highlights
Financial Highlights 82.7 % Revenue Earnings per Share 286 % 282 % Headline Earnings per Share 3.02 % Gross Profit Percentage 21 % Administrative expenses, contained compared to revenue growth
Slide 15: Revenue vs Gross Profit %
Revenue vs Gross Profit % 18.00% 600 000 000 16.00% 500 000 000 14.00% 12.00% 400 000 000 10.00% 300 000 000 Revenue 8.00% Gross profit % 6.00% 200 000 000 4.00% 100 000 000 2.00% 0.00% 0 2012 2011 2010
Slide 16: Earnings
Earnings Earnings Headline Earnings R65 377 358 R70 000 000 R70 000 000 R 65 380 048 R60 000 000 R60 000 000 R50 000 000 R50 000 000 R40 000 000 R40 000 000 R30 000 000 R30 000 000 R20 000 000 R17 134 419 R 16 955 441 R 15 488 109 R10 000 000 R20 000 000 R(9 714 019) R- R10 000 000 2012 2011 2010 R(
Slide 17: Return on Assets
Return on Assets Net Asset Return on Average Shareholders’ Funds R250 000 000 35.00% R236 054006 32.14% 30.00% R200 000 000 R170 673 958 25.00% R153 718 517 R150 000 000 20.00% 15.00% R100 000 000 10.45% 9.59% 10.00% R50 000 000 5.00% R- 0.00% 2012 2011 2010 2012 2011 2010
Slide 18: Borrowings Movements
Borrowings Movements Net Increase – R 70.8 mil Increase (R’m) * Yield X J Bar Nedbank 85 Linked Decrease (R’m) Nedbank 2.4 Prime - 1 ABSA df 0.2 Prime - 1 Total 87.4 NHFC 4.5 Prime - 1 RMB 5.4 Prime - 1 * (Tequanta R 50 mil 5 Year note + Atlantic R 35 mil Barnards Attorneys 2.6 20% November 2012) Ru
Slide 19: Debt as at Year-end
Calgro M3 – Financial Review Debt as at Year-end RMB: R77,4 mil (Mid to High land – renewable annually) Nedbank: R12,2 mil (Jabulani Hostels – fully repaid after year-end) Bond Exchange: R135 mil o R22,5 mil RMB Asset Managers – 25 July 2014 o R22,5 mil RMB Asset Managers – 25 July 2015 o R5 mil Taq
Slide 20: Financial Summary
Financial Summary 2012 2011 % Basic earnings per share (c) 51.4 13.3 286% Headline earnings per share (c) 51.4 13.4 282% Net asset value per share (c) 185.7 134.4 38.3% Cash on hand (R’m) 103.7 15.0 691% Construction contracts (R’m) 87.5 40.6 116% Interest bearing borrowings (R’m) 225.1 154.3 45.9%
Slide 21: Present Projects
Present Projects CALGRO M3 fe ee Oo woe ean
Slide 22: Geographic Footprint - National
Geographic Footprint - National Clayville Ext 50 Integrated Development – 7,800 units Fleurhof Integrated Development – 9,602 units Vista Park Ext 3 Jabulani CBD Integrated Development – 4,199 Development – units 2,400+ units Jabulani Hostel Leo Mews Res 3 Development 500 units Development – 90 unit
Slide 23: Existing Projects – Integrated & Low to Medium Income Residential
Existing Projects – Integrated & Low to Medium Income Residential No of units Typology mix Total no of Type of under Total estimated Project Location units in project construction / Social , GAP Affordable project revenue project RDP completed & Rental housing Fleurhof Johannesburg Integrated 9602 1
Slide 24: Existing Projects – Mid to High Income Residential
Existing Projects – Mid to High Income Residential No of Project name Township Status of project Type of project Revenue units Broadacres Ext 36, Town planning completed. Retirement and La Vie Nouvelle 394 R499,000,000 Fourways Marketing to commence Lifestyle Estate Witkoppen Ext 142, 32-On-Pine Tow
Slide 25: Existing Projects – % Exposure In Different Market Segments
Existing Projects – % Exposure In Different Market Segments RDP/fully subsidized 23.73% 47.77% GAP, Social 3.18% 25.32% Affordable/bonded Mid to High
Slide 26: Integrated & Low to Medium Income Residential – Funding Requirements
Integrated & Low to Medium Income Residential – Funding Requirements Project Funder - financial institution Funder - government Fleurhof First National Bank City of Joburg/SHRA Jabulani CBD Standard Bank SHRA Jabulani Hostels Nedbank Gauteng Province Mabopane NHFC n/a Jukskei View Ext’s 17 & 18 Nedb
Slide 27: New Prospects – Integrated & Low to Medium Income Residential
New Prospects – Integrated & Low to Medium Income Residential Social , GAP & Affordable Project Location Type of project No of units RDP Estimated revenue Rental housing Social, GAP Wallacedene Cape Town 745 0 596 149 R 250 000 000 Housing GAP & Bonded Thornton Cape Town 128 0 128 0 R 43 010 000 Hou
Slide 28: Calgro M3 – Integrated Development Concept
Calgro M3 – Integrated Development Concept (Example of current projects)
Slide 29: Typical units – Integrated /Mixed-Use Development
Typical units – Integrated /Mixed-Use Development RDP units: Fully subsidized (give-away) – RDP units: Fully subsidized (give-away) – CRU units: Subsidized rental – City freestanding & semi-detached multi-storey walk-up’s owned Social housing units: Subsidized rental – GAP units: Open market / bonde
Slide 30: Fleurhof – 9,602 units
Fleurhof – 9,602 units (Main Reef Road - Johannesburg South-West) Crèche Infrastructure under completed construction Infrastructure Open- in progress market GAP (multi- Freestanding storey) affordable housing Freestanding affordable RDP housing housing (multi-storey) Open- Social market Housing- ren
Slide 31: Fleurhof – 9,602 units
Fleurhof – 9,602 units (Main Reef Road - Johannesburg South-West) RDP housing (multi- storey) GAP semi- detached housing Social Housing
Slide 32: Fleurhof – 9,602 units
Fleurhof – 9,602 units (Main Reef Road - Johannesburg South-West) Paved parking Perimeter fencing Waste management Landscaping RDP – Fully subsidized (“give-away’s”) units
Slide 33: Jabulani CBD – 4,199 units
Jabulani CBD – 4,199 units (Bolani Road – Soweto, Johannesburg)
Slide 34: Jabulani CBD – 4,199 units
Jabulani CBD – 4,199 units (Bolani Road – Soweto, Johannesburg)
Slide 35: Jabulani Hostels – 500 units (phase 1)
Jabulani Hostels – 500 units (phase 1) (Bolani Road – Soweto, Johannesburg) RDP Fully Subsidised units – “give aways” Existing hostels to be demolished when developed in phases CRU Units (Community Residential Units) RDP Fully Subsidised units – “give aways”
Slide 36: Jabulani Hostels – 500 units (phase 1)
Jabulani Hostels – 500 units (phase 1) (Bolani Road – Soweto, Johannesburg)
Slide 37: La Vie Nouvelle Retirement & Wellness Estate
La Vie Nouvelle (Fourways, Johannesburg) Retirement & Wellness Estate Finance partner/s:
Slide 38: La Vie Nouvelle Retirement and Wellness Estate – 394 units
La Vie Nouvelle Retirement and Wellness Estate – 394 units (Broadacres, Fourways)
Slide 39: CSI Créche’s
CSI Créche’s CALGRO M3
Slide 40: Social Investment – Créche in Pennyville Project
Social Investment – Créche in Pennyville Project
Slide 41: Social Investment – 1st Créche in Fleurhof Project
Social Investment – 1st Créche in Fleurhof Project 1st Créche in Fleurhof under construction
Slide 42: Questions?
Questions? CALGRO M3
Slide 43: Project’s Status
Project’s Status CALGRO M3 fe ee Oo woe ean
Slide 44: Project Status – Integrated & Low to Medium Income Residential
Project Status – Integrated & Low to Medium Income Residential Project Location Type of project Status Marketing & sales, infrastructure & top-structure Fleurhof Johannesburg South Integrated construction in progress Marketing & sales, infrastructure & top-structure Jabulani CBD Soweto, Johannesburg
Slide 45: Prospect Project Status – Integrated & Low to Medium Income Residential
Prospect Project Status – Integrated & Low to Medium Income Residential Project Location Type of project Status Town planning completed. Marketing could commence Wallacedene Cape Town Social, GAP Housing immediately. Social housing institution to be approached to purchase the social housing units To