Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — H1 2023 Earnings Presentation
24 slides from Calgro M3's earnings presentation, October 2022
Slide 1: Interim Financial Results
INTERIM FINANCIAL RESULTS For the six months ended 31 August 2022 www.calgrom3.com
Slide 2: Period Under Review
PERIOD UNDER REVIEW 1
Slide 3: Financial overview of the period
Financial overview of the period Gross profit margin Headline earnings Revenue increased Earnings increased remained within increased by 33% by 5% to R607 20% to 25% target by 44% to 57.04 cps to 57.00 cps (2021: million range, increasing to (2021: 39.56 cps) 42.79 cps) (2021: R576 million) 22% (202
Slide 4: Overview of the year – What we said and what we have done
Overview of the year – What we said and what we have done Liquidity reduced to R59 million in Liquidity position expected to Focus on liquidity line with previous market improve resulting from transfer of communication open market units by 28 Feb 2023 Cash was not generated but Cash from operations
Slide 5: Strategic achievements for the period
Strategic achievements for the period ESG • Enhanced reporting • Level 1 B-BBEE accreditation • ISO 14001:2015 and ISO 45001:2018 recertification underway • UN Global Compact advanced level status • 44% of the workforce are woman maintained Group values • Improved African employment representation t
Slide 6: Underlying Business Performance
UNDERLYING BUSINESS PERFORMANCE 2
Slide 7: Contributions to Group
Contributions to Group Revenue and profit after tax * contribution to Group 97% 3% Memorial Parks is a key expansion area for the Group with the medium-term objective to grow cash receipts from Memorial Parks to support all Group overheads and interest obligations (*) excluding other segments 7
Slide 8: Integrated Residential Developments
Integrated Residential Developments • Servicing from fully subsidised homes to homes > R3 million • R47 million self-funded spend on infrastructure at Fleurhof, Belhar and Jabulani • Revenue diversification between projects and provinces, and sustainable mix of customers will ensure consistent hand
Slide 9: Integrated Residential Developments
Integrated Residential Developments • Strong project pipeline Frankenwald Development Project • Frankenwald project will add a further 20 000 opportunities Under 3 965 construction Total pipeline >24 000 Completed HY1 1 193 Units under Total remaining Projects Revenue pipeline construction opportuni
Slide 10: Memorial Parks
Memorial Parks • Memorial Parks remains a key expansion for the Group, with the medium term objectives being to grow cash receipts to support all group overheads and interest obligations. • The business experienced a slowdown in sales in the period under review to maintain an enhanced market presenc
Slide 11: Financial Review
FINANCIAL REVIEW 3
Slide 12: Statement of Cashflows
Statement of Cashflows R’000 Unaudited 31 Unaudited 31 Audited 28 August 2022 August 2021 February 2022 Cash (utilised in) / generated from operating activities Cash utilised in operations (60 560) 133 171 228 222 Finance income received 4 367 1 273 1 983 Finance cost paid (43 225) (45 008) (82 301)
Slide 13: Statement of Cashflows (continued)
Statement of Cashflows (continued) R’000 Unaudited 31 Unaudited 31 Audited 28 August 2022 August 2021 February 2022 Cash flow invested in investing activities Purchase of property, plant and equipment (569) (486) (1 182) Proceeds from the sale of property, plant and equipment 117 - - Increase in inv
Slide 14: Segmental revenue contribution
Segmental revenue contribution Revenue Unaudited interim period Unaudited interim period (R’000) 31 August 2022 31 August 2021 Residential Property Development 587 247 545 758 Memorial Parks 19 832 30 456 Total 607 079 576 214 5% Burial Maintenance services 10% 5% Third parties 16% Fleurhof 50% Belh
Slide 15: Statement of Comprehensive Income
Statement of Comprehensive Income Revenue Unaudited Unaudited Audited year ended R’000 31 August 2022 31 August 2021 28 February 2022 Revenue 607 079 576 214 1 321 593 Cost of sales (472 911) (462 817) (1 039 747) Gross profit 134 168 113 397 281 847 Other income 4 561 10 662 15 343 Administrative e
Slide 16: Statement of Financial Position – Assets
Statement of Financial Position – Assets Assets Unaudited Unaudited Audited R’000 31 August 2022 31 August 2021 28 February 2022 Non-current assets Investment property 19 947 19 947 19 947 Property, plant and equipment 18 166 22 071 19 682 Intangible assets 159 651 159 651 159 651 Investments 14 299
Slide 17: Statement of Financial Position – Equity and Liabilities
Statement of Financial Position – Equity and Liabilities Equity and Liabilities Unaudited Unaudited Audited 31 August 2022 31 August 2021 28 February 2022 Total Equity 1 035 020 877 646 963 686 Non-current liabilities 230 115 200 444 213 834 Current liabilities Borrowings 812 324 925 274 839 068 Cur
Slide 18: Borrowing maturities
Borrowing maturities Includes Proparco Repayment Detail Rand (R’000) Opening balance 1 March 2022 (gross) 850 600 New debt 50 000 Maturity Rand Maturity Rand profile (R’000) profile (R’000) Debt repaid (77 400) FY 2023 117 400 FY 2025 211 750 Closing balance – 31 August 2022 823 200 FY 2024 282 800
Slide 19: Covenants
Covenants Unaudited interim period Audited period 28 Covenant level 31 August 2022 February 2022 Net debt to equity 0.76 0.71 Maximum 1.5 Debt service cover ratio 1.45 2.15 Minimum 1.2 Internally set targets as previously communicated: Date Target By 28 February 2023 0.80:1 By 28 February 2024 0.75:
Slide 20: Looking Forward
LOOKING FORWARD 5
Slide 21: Where to from here
Where to from here • Cautious in the current economic and South African environment • Sustainable positive cash flows through consistent open market unit construction and hand overs • Product efficiencies • Triggers for future growth • Meticulous capital allocation to high yielding projects • Strong
Slide 22: Our dream
= Our dream CALGRO M3 Group A winner is a dreamer who never gives up. - Nelson Mandela 22
Slide 23: What is and what can be
. ell ] What is and what can be CALGRO M3 Group Building legacies. Changing lives 23
Slide 24: Thank You
THANK YOU 6