Rmb Holdings Limited · JSE:RMH
Rmb — Shareholder Meeting (November 2018)
13 slides from Rmb's shareholder meeting presentation, Nov 21, 2018
Slide 1: 2018 AGM
2018 AGM 21 November 2018
Slide 2: RMH's Trading Discount to NAV
RMH’S TRADING DISCOUNT TO NAV PREMIUM / DISCOUNT TO INTRINSIC VALUE SINCE RMI UNBUNDLING 20.0% Average: 12.9% 15.0% 10.0% Average: 5.1% 5.0% 0.0% Average: -0.3% -5.0% -10.0% Oct-18 Nov-11 Nov-12 Nov-13 Jul-11 Nov-14 Jul-12 Nov-15 Jul-13 Nov-16 Nov-17 Sep-11 Jul-14 Nov-18 Sep-12 Jul-15 Jul-16 May-11
Slide 3: Long-term Price / INAV Evolution of HoldCos
LONG-TERM PRICE / INAV EVOLUTION OF HOLDCOS Global investment holding companies are under pressure, SA holding companies trending to internationals 1.4x Movement Average Movement Average Current (last 3 years) (last 3 years) since 2010 since 2010 Local investment holding companies 1 RMI 0.93x (5.8%)
Slide 4: Low Structural Friction Costs
LOW STRUCTURAL FRICTION COSTS BREAKDOWN OF NET DIVIDEND RETAINED1 (2011 – 2018) 13% 24% Admin expenses (eg. staff costs, professional fees) 10% FirstRand funding cost RMH Property funding cost Hedging (RMI shares acquired as asset) 53% ADDITIONAL FIRSTRAND SHARES PURCHASED IN MARCH 2011 HAS RESULTED
Slide 5: Relationship with FirstRand
RELATIONSHIP WITH FIRSTRAND FIRSTRAND HAS OUTPERFORMED COMPARABLE PEERS (10-YR) 1,200 CAGR 25% 1,000 23% 800 18% Rebased to 100 600 17% 14% 400 13% 200 12% 0 Nov-08 Aug-09 Nov-09 Aug-10 Nov-10 Aug-11 Nov-11 Aug-12 Nov-12 Aug-13 Nov-13 Aug-14 Nov-14 Aug-15 Nov-15 Aug-16 Nov-16 Aug-17 Nov-17 Aug-18 Fe
Slide 6: Long-term Perspective
LONG-TERM PERSPECTIVE THE RELEVANCE AND VALUE OF THE RMH STRUCTURE REMAINS 1 A critical anchor for FirstRand • RMH and FirstRand acknowledge that a mutually beneficial relationship exists between the groups • As founding shareholder, RMH provides FirstRand with the vital stability and cultural tone
Slide 7: RMH Property's Strategy
RMH PROPERTY’S STRATEGY
Slide 8: RMH Property: Foundations in Place for Growth
RMH PROPERTY | FOUNDATIONS IN PLACE FOR GROWTH RMH PROPERTY (RMHP) HAS DEPLOYED c.R2.2bn IN EQUITY CAPITAL TO DATE CORE PARNERSHIP SATELLITE PARTNERSHIPS Fund 1 Fund 2 Fund 3 9.0% stake 20.0% stake 50.0% stake 27.5% stake 43.9%1 stake ATTERBURY BUCHAREST 50%1 stake 18.2%1 stake RMHP GROSS INTRINSIC
Slide 9: RMH Property's Strategy
RMH PROPERTY’S STRATEGY • The RMH Property investment strategy primarily focuses on development focused businesses with returns driven by capital growth (measured by intrinsic value) • This contrasts with most JSE-listed property companies that have portfolios primarily skewed towards more mature yi
Slide 10: Where to Next for RMH Property
WHERE TO NEXT FOR RMH PROPERTY COMPLETION OF CURRENT EQUITY CAPITAL COMMITMENTS Investment in Romania alongside Atterbury Europe • In Q3 2017, the RMH Board approved a JV opportunity with Atterbury Europe in Bucharest • The project encompasses a broad precinct of development in Bucharest focused on
Slide 11: Timeline Relating to Atterbury Europe
TIMELINE RELATING TO ATTERBURY EUROPE Feb-18: Atterbury Europe Holding B.V. is incorporated, holding 100% of the shares in Atterbury June-14: Brightbridge is Europe B.V. July-16: RMHP acquires incorporated and acquires 27.5% stake in Atterbury stakes in AttAfrica Ltd, New Property Holdings and 10% F
Slide 12: Atterbury Europe Ownership Structure
ATTERBURY EUROPE** | OWNERSHIP STRUCTURE 27.5% Management 72.5% related entities 90%(a) 73%(a) Brightbridge Equity instrument* Athol Street Holdings Limited Investments 10% Debt instrument* Property Holdings Limited 10% 10% 80% Onroerend Goed Houster 43.9% Europa Cooperatief U.A. 56.1% Holding B.V.
Slide 13: Disclaimer
DISCLAIMER The information contained in this document has been prepared by the RMH Board for illustrative purposes only No information, including any financial information, set out in this document should be construed as a trading update, profit forecast or estimate or an expectation regarding futur