Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — H1 2014 Earnings Presentation
34 slides from Calgro M3's earnings presentation, October 2013
Slide 1: Group Results for Financial Half-Year Ended 31 August 2013
Group Results for Financial Half- Year Ended 31 August 2013 Building legacies » Changing lives CALGRO M3 He O°. by “De ON Gr -$
Slide 2: Agenda
Agenda Business Financial Significant Group model Review achievements Prospects two three one four
Slide 3: One
CALGRO M3 # Oo tL DUN GS
Slide 4: Business Model
Business Model Identify land/project Hand-over to clients, after sale Due diligence – service market study, viability Construction of Acquire land, top-structures Turnkey Developer development finance Township Bond & transfer establishment – to end-users town planning, engineer, EIA, etc. Infrastruc
Slide 5: Product Definition
Product Definition R551 000 up to Mid-to-High Income Segment R3 000 000+ Up to R 550 000 Affordable Housing Segment Up to R 300 000 – subject to change GAP & FLISP Housing Segment Up to R 300 000 Social Housing Segment Subsidy as per CRU (Community Residential National CRU Policy Units) Segment BNG
Slide 6: Business Model
Business Model The company’s business model will remain mainly unchanged: Integrated or low income development projects: Minimum of 80% exposure; Mid-to-High income developments/market segment: Maximum of 20% exposure; Principle of landowner developer to be retained with Land Availability Agreements
Slide 7: Business Model
Business Model The company’s business model remained unchanged: Principle of landowner developer retained with LAA (Land Availability) where available on our terms; Maximum shareholding will be retained in projects while taking associated risks into account; Marketing responsibility to be divided in
Slide 8: National Footprint
National Footprint Possible new projects Pretoria – 1,900 units North West Jhb North – 6,000 units Boitekong – 3,451 units Gauteng Fleurhof – 9,558 units South Hills – 5,161 units Jabulani CBD – 3,881 units Witpoortjie – 2,023 units Freestate Brandwag – 1,051 units Western Cape Vista Park – 2,400 un
Slide 9: Calgro M3 Project: Fleurhof Integrated Project
Calgro M3 Project: Fleurhof Integrated Project The Fleurhof project won two prestigious awards in 2013: Govan Mbeki Awards – Best Social Housing Project of the Year; SAHF International Housing Conference Award – Best Project of the Year.
Slide 10: Calgro M3 Project: Jabulani CBD Integrated Project
Calgro M3 Project: Jabulani CBD Integrated Project
Slide 11: Calgro M3 Project: Scottsdene Integrated Project
Calgro M3 Project: Scottsdene Integrated Project Attenuation pond Pocket 12 CRU units RDP units Madulammoho, etc RDP units RDP units RDP units RDP units Pocket 2 – FLISP Housing CRU units
Slide 12: Calgro M3 Project: Brandwag Social Housing Project
Calgro M3 Project: Brandwag Social Housing Project
Slide 13: Typical Units – Integrated Development
Typical Units – Integrated Development CRU units: Subsidized rental – RDP units: Fully subsidized (give- RDP units: Fully subsidized (give- Government/City owned away) – freestanding & semi- away) – multi-storey walk-up’s detached GAP /FLISP units: Bonded market – sectional title ownership Affordabl
Slide 14: Financial Review for the six months ended August 2013
Financial Review for the six months ended 31 August 2013 Financial Review Two
Slide 15: Financial Summary
Financial Summary F2014 vs. F2014 – August F2013 – August F2013 Unaudited Unaudited Revenue + 8.48 % 434 638 400 669 Operating profit - 20.74% 33 700 42 520 Gross Profit - 2.78 % 14.26 % 17.04% Headline Earnings – Rand + 26.98 % 51 040 40 196 Fully diluted Headline earnings – Rand + 26.98 % 51 040 4
Slide 16: Statement of Financial Performance
Statement of Financial Performance F2014 – August F2013 – August Unaudited Unaudited Revenue 434 638 400 669 from continuing operations Operating profit 33 700 42 520 Operating margin % 7.75% 10.61% Profit before interest, taxation & JV Profits 33 700 42 520 Share of profits from JV’s (net of tax) 2
Slide 17: Statement of Financial Position - Extract
Statement of Financial Position - Extract F2014 – August F2013 – February Unaudited Audited Non Current assets 202 123 153 254 Intangible assets 32 967 32 808 Investments in JV’s 103 521 74 350 Loans to JV’s 41 748 22 200 Current assets 800 993 655 866 Inventories 284 823 264 580 Construction Contra
Slide 18: Statement of Financial Position - Extract
Statement of Financial Position - Extract F2014 – August F2013 – February Unaudited Audited Equity 378 398 327 358 Non-current Liabilities 33 959 27 079 Deferred tax 33 885 26 863 Current Liabilities 590 760 454 683 Borrowings 442 141 299 900 Trade and other payables 148 619 153 156 Total Equity and
Slide 19: Statement of Cash Flow
Statement of Cash Flow F2014 – August F2013 - August Unaudited Unaudited Operating Cash 33 886 44 109 Working capital changes (187 126) 144 Cash (utilized in) / generated from operations (153 241) 44 253 Finance costs – (net) (11 449) (7 790) Tax paid (2 810) (10 257) Net cash (utilized in) / genera
Slide 20: Cash Flow Working Capital Reconciliation
Cash Flow Working Capital Reconciliation F2014 - August F2013 – August Unaudited Unaudited Operating Cash 33 886 44 109 Working capital changes (187 126) 144 Trade and other payables (8 892) 8 327 Trade and other receivables (59 390) (14 986) Contracts in progress (108 572) 18 974 Inventories (10 27
Slide 21: Cash Flow Reconciliation
Cash Flow Reconciliation Cash balance at 31 August 2013 154 853 Investment in working capital 210 004 Fleurhof installation of services fast track 149 212 Jabulani debtor movement – due to electricity constraint 14 797 La Vie Nouvelle Investment 24 220 New projects investment 21 775 Total 364 857 Ca
Slide 22: Key Financial Ratios
Key Financial Ratio’s F2014 - August F2013 – February Unaudited Audited Group Equity 378 397 327 358 Interest bearing debt 442 492 300 616 Cash and cash equivalents 154 853 198 343 Net interest bearing debt 287 639 102 273 Net gearing – (Debt to equity ratio %) 76.02% 31.24% Income statement Interes
Slide 23: Company Structure
Company Structure Calgro M3 Holdings Limited 2005/027663/06 Calgro M3 Calgro M3 Land (Pty) Calgro M3 Project Developments Ltd Ltd Management (Pty) Ltd 1996/017246/06 2005/027072/07 2007/030313/07 Business Venture Hightrade-Invest 60 Investments No 1221 (Pty) Ltd CM3 Randpark Ridge (Pty) Ltd Ext 120
Slide 24: Change in Borrowings
Change in Borrowings Increases: Bond Exchange 222 000 000 Jibar linked Decreases: RMB Limited (Fully repaid) (78 889 542) Prime linked Bond Exchange AMRT (859 269) (Accounting entry) Net change (79 748 811) Total debt raised 142 251 189
Slide 25: Significant Achievements
Significant Achievements three
Slide 26: Significant Achievements
Significant Achievements On 17 September 2013 Calgro M3 was awarded the SAHF Award for the Fleurhof project, it being elected the Best Integrated Project Nationally; The Fleurhof project won the Social Housing Project of the Year award at the prestigious Govan Mbeki Awards ceremony in 2013; Creating
Slide 27: Group Prospects
Group Prospects four
Slide 28: Group Project Pipeline – Low Income Market Segment
Group Project Pipeline – Low Income Market Segment No of units Unit typology Total no of under GAP, FLISP & Total estimated project Project units in construction / RDP/BNG Social Housing Rental Affordable revenue project Housing Housing completed Housing Fleurhof (Jhb) 9558 2453 2822 1459 3405 1872
Slide 29: Group Project Pipeline – Mid-to-High Market Segment
Group Project Pipeline – Mid-to-High Market Segment No of Project name Township Status of project Type of project Revenue units Town planning Broadacres Ext 36, Retirement and La Vie Nouvelle completed. Marketing to 394 R499,000,000 Fourways Lifestyle Estate commence Witkoppen Ext 142, 32-On-Pine To
Slide 30: Group Prospects by Segment
Group Prospects by Segment By number of units RDP/BNG Housing 3% 18% 24% Social Housing 25% GAP, FLISP & Rental Housing 29% Affordable Housing Mid-to-High By revenue 6% 18% 19% 30% 27%
Slide 31: Challenges and Risk
Challenges and Risk Critical Risks: Retention of staff; Cash flow / liquidity; Uncontrollable growth; Capacity; BEE non-compliance; Reputational damage due to sub-standard work; Labor unrest; and Contract costing. Challenges and Risk
Slide 32: Questions?
——""__ Building legacies » Changing lives CALGRO M3 HOLDINGS
Slide 33: For more information, please contact
For more information, please contact: Ben Pierre Malherbe E-mail: benpierre@calgrom3.com Wikus Lategan E-mail: wikus@calgrom3.com Tel: +27 11 300 7500 www.calgrom3.com
Slide 34: 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