Zeder Investments Limited · JSE:ZED
Zeder Investments — FY2023 Earnings Presentation
21 slides from Zeder Investments's earnings presentation, Apr 19, 2023
Slide 1: Full Year Results for the Year Ended 28 February 2023
FULL YEAR RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2023 PRESENTED BY: JOHANN LE ROUX DATE: 19 APRIL 2023 1
Slide 2: Agenda
AGENDA • Noteworthy transactions • Strategy • Financial results • Portfolio review • Questions – email to cosec@zeder.co.za 2
Slide 3: Noteworthy Transactions: Disposal of Agrivision Africa
NOTEWORTHY TRANSACTIONS • Disposal of investment in Agrivision Africa Disposal of Zeder’s history with Transaction terms Agrivision Africa Agrivision Africa • Zeder sold its 100% • No warranties or • Been a difficult interest in Zeder Africa, indemnities relating to investment for Zeder which owns t
Slide 4: Noteworthy Transactions: Disposal of The Logistics Group
NOTEWORTHY TRANSACTIONS • Disposal of investment in The Logistics Group Disposal of TLG Initial funds Earn-out payments Group received • Zeder sold its 98.22% • The initial amount • First earn-out of R178m interest in TLG Group received by Zeder was received • Disposal at premium R1.35bn • Enables a
Slide 5: Noteworthy Transactions: Unbundling of Kaap Agri
NOTEWORTHY TRANSACTIONS • Unbundling of Kaap Agri shareholding Unbundling of Kaap Rational for Zeder’s history with Agri unbundling Kaap Agri • Zeder unbundled Kaap • Unbundling was in the • Zeder has been a Agri shareholding best interest of Zeder shareholder since 2006 • Unbundling was subject sha
Slide 6: Noteworthy Transactions: Special Dividends
NOTEWORTHY TRANSACTIONS • Special dividends – total dividends of R5.81bn to shareholders Feb 2020 special Feb 2021 special Feb 2022 special Aug 2022 special dividend dividend dividend dividend • A special dividend of • A special dividend of • A special dividend of • A special dividend of R2.30 per s
Slide 7: Noteworthy Transactions: Impact on Shareholders
NOTEWORTHY TRANSACTIONS IMPACT ON SHAREHOLDERS The recent corporate actions and resultant special dividends had a positive impact on Zeder’s value creation for shareholders over the past 4 years, during the main Covid period. 28 Feb 2019 Corporate actions 28 Feb 2023 Interest Unbundling Dividend Int
Slide 8: Strategy
STRATEGY INVESTMENTS LIMITED
Slide 9: Strategy
STRATEGY • Zeder’s objective remains to maximise shareholder wealth • How did we do during 2022/2023? ─ Grow the investee portfolio companies ─ Recurring headline earnings growth at our portfolio companies for their respective financial year ends (Zaad as at 30 June 2022 and Capespan as at 31 Decemb
Slide 10: Financial Results
FINANCIAL RESULTS • Business and operating environment • Results Summary • Sum-of-the-parts 10
Slide 11: Financial Results: Business and Operating Environment
FINANCIAL RESULTS BUSINESS AND OPERATING ENVIRONMENT ❑ Index lowest since Q2 2020 when Covid- 19 lockdown restrictions were implemented ❑ Agribusinesses are generally downbeat about business conditions ❑ Increased pressure on farmers as a result of higher input costs (margins) ❑ Persistent loadshedd
Slide 12: Financial Results: Summary FY2023
FINANCIAL RESULTS SUMMARY FY2023 • Intrinsic value of portfolio impacted by corporate actions and special dividends ─ Total Sum-of-the-parts value decreased from R4.66 to R2.60 per share (decrease of R2.06 per share) ─ Decrease as a result of corporate actions ─ Special dividends of R1.03 per share
Slide 13: Financial Results: Sum-of-the-Parts FY2023
FINANCIAL RESULTS SUM-OF-THE-PARTS FY2023 Decrease in the SOTP value per share to 28 February 2023, as a result of aforementioned corporate actions and special dividends. Zeder bridge loan of R330m to Zaad converted into equity during April 2022. TLG, Kaap Agri and Agrivision Africa no longer part o
Slide 14: Portfolio Review
PORTFOLIO REVIEW INVESTMENTS LIMITED
Slide 15: Zaad is a specialist agricultural seed and agrochemicals company
Zaad is a specialist agricultural seed and agrochemicals company that develops and supplies a broad basket of proprietary seeds and chemicals to emerging markets. 15
Slide 16: Portfolio Review: Zaad Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS On a last twelve month (LTM) basis, Zaad reported a decrease of 6% in recurring earnings to R225m, largely as a result of increased interest rates and therefore increased finance charges at our African operations. Jan 21 Jun 21 Jun 22 LTM 31 Dec 22 Summarised Incom
Slide 17: Portfolio Review: Zaad Valuation
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in Zaad has remained unchanged at R2.384bn from the Zeder interim results, based on the LTM results. GENERAL COMMENTS VALUATION CONSIDERATIONS • Good results from Agricol, FarmAg (chemicals) and May • Valuation based on comparable
Slide 18: Capespan is an internationally diversified fruit group
Capespan is an internationally diversified group with a primary exposure to fruit farming, marketing, distribution and related services. 18
Slide 19: Portfolio Review: Capespan Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS Despite challenging conditions in the global fresh fruit industry, Capespan reported an increase of 65% in recurring earnings for the year ended 31 December 2022 to recurring headline earnings of R89m. Dec 19 Dec 20 Dec 21 Dec 22 Summarised Income Statement 12 mont
Slide 20: Portfolio Review: Capespan Valuation
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in Capespan has remained unchanged at R1.046bn from the Zeder interim results, despite the increase in recurring earnings for the financial year. GENERAL COMMENTS VALUATION CONSIDERATIONS • Global fresh fruit industry continues to
Slide 21: Thank you
Awaiting image… Thank you WE ARE BASED IN STELLENBOSCH, WESTERN CAPE, SOUTH AFRICA. PHYSICAL ADDRESS POSTAL ADDRESS 2ND FLOOR, OU KOLLEGE PO BOX 7403 35 KERK STREET STELLENBOSCH STELLENBOSCH 7599 7600 TEL: 021 831 9559 FOR FURTHER INFORMATION, PLEASE CONTACT US AT INFO@ZEDER.CO.ZA