Zeder Investments Limited · JSE:ZED
Zeder Investments — FY2019 Earnings Presentation
24 slides from Zeder Investments's earnings presentation, Feb 28, 2019
Slide 1: Full Year Results
Full Year Results For the year ended 28 February 2019 Presented by: Norman Celliers Chief Executive Officer
Slide 2: Agenda
Agenda • Corporate overview • Financial results • Portfolio review • Conclusion • Questions 1
Slide 3: An investment holding company – Corporate overview
An investment holding company Corporate overview We play an active role in investee companies through strategic interests with a controlling influence. Business definition Business definition Strategic Focus • An actively managed investment holding Industry: • Agribusiness company listed on the Joha
Slide 4: Executive summary
Executive summary Financial results FY2019 • Investor sentiment and capital allocation towards country and sector deteriorated significantly during the period under review ─ JSE Food Producer’s Index declined by 34.7% • Intrinsic value of portfolio negatively impacted with downward valuation adjustm
Slide 5: Sum-of-the-Parts
Sum-of-the-Parts Financial results Zeder’s SOTP value per share decreased from R7.85 to R5.64 as of 28 February 2019. FY2019 Observations: • JSE-Food Producer’s Index declined 34.7% during the period under review • Pioneer Foods’s share price (JSE-listed) declined from R131.50 to R80.50 and had a –R
Slide 6: Earnings
Earnings Financial results Recurring Headline Earnings per share increased by 0.4% while headline earnings increased by 81.9%. FY2019 Observations: • Recurring Headline Earnings: ─ Apart from Capespan’s Farming and Fruit Division, most investee companies improved on prior year numbers ─ Capital inje
Slide 7: Strategic interests across value chain
Strategic interests across value chain Portfolio review Portfolio offers strategic exposure to meaningful and leading companies across value chain with strong management teams focused on driving growth in the long-term. Company Salient features Zeder Share Zeder Value Value of 100% • SS Africa’s 2nd
Slide 8: Business overview – Pioneer Foods
Business overview Portfolio review Pioneer is South Africa’s 2nd largest food producer with leading market share positions across a number of core categories and extensive geographical footprint and penetration. 7
Slide 9: Pioneer Foods financial results
Financial results Portfolio review Pioneer Foods reported a 25.1% increase in adjusted RHEPS for the period ended 30 September 2018. Summarised Income Statement Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Historical R'm R'm R'm R'm R'm R'm Revenue 16,236 17,699 18,748 20,600 19,575 20,152 EBITDA 1,499
Slide 10: Business overview – Capespan
Business overview Portfolio review Capespan is an internationally diversified group with a primary exposure to fruit farming, marketing, distribution, port logistics and related services. 9
Slide 11: Noteworthy transaction
Noteworthy transaction Portfolio review Capespan executed and implemented significant transactions and restructuring during the period under review. • Successfully disposed of the investment in China • Fair value gains reported in headline earnings • Transaction completed and proceeds received • Net
Slide 12: Capespan financial results
Financial results Portfolio review Strong performance from Logistics Division off-set by losses incurred in the Farming and Fruit division resulting in a recurring loss at consolidated level. Summarised Income Statement Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Historical R'm R'm R'm R'm R'm R'm Rev
Slide 13: Logistics financial results
Financial results Portfolio review The diversification and expansion of logistical customers and capabilities has delivered pleasing results and reduced volatility. Summarised Income Statement Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Historical R'm R'm R'm R'm R'm Revenue 508 523 511 609 794 EBITDA 152 17
Slide 14: Business overview – Kaap Agri
Business overview Portfolio review Kaap Agri is a leading Agri-related retail, trade, supply and services company. 13
Slide 15: Kaap Agri financial review
Financial review Portfolio review Kaap Agri reported an increase of 0.7% in RHEPS for the year ended 30 September 2018 amidst the drought experienced in the Western Cape. Summarised Income Statement Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Historical R'm R'm R'm R'm R'm R'm Revenue 4,008 4,875 5,34
Slide 16: Business overview – Zaad
Business overview Portfolio review Zaad is a specialist agricultural seed company that develops and supplies a broad basket of proprietary seeds to more than 96 international markets. 15
Slide 17: Zaad financial review
Financial review Portfolio review Zaad reported commendable operating results but RHEPS declined by 5.5% for the year ended 31 January 2019 due to share dilution resulting from rights issues. Summarised Income Statement Feb 14 Feb 15 Feb 16 Jan 17 Jan 18 Jan 19 Historical R'm R'm R'm R'm R'm R'm Rev
Slide 18: Business overview – Agrivision Africa
Business overview Portfolio review Agrivision Africa is a vertically integrated, grain-related food supplier that farms, mills and distributes products in the northern region of Zambia and southern parts of the DRC. Farming & Development Milling & Processing Brands & Distribution • 4,200 ha (irrigat
Slide 19: Agrivision financial performance
Financial performance Portfolio review Disappointing recurring losses reported but conservative approach supports Sum-of-the-Parts values in ZAR. Summarised Income Statement Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Historical $'000 $'000 $'000 $'000 $'000 $'000 Revenue 14,304 32,532 31,711 39,718 3
Slide 20: Business overview – Quantum Foods
Business overview Portfolio review Quantum is South Africa’s #1 commercial egg supplier and operates a regionally dominant and nationally recognised premium animal feeds business. Farming 19
Slide 21: Quantum Foods financial performance
Financial performance Portfolio review Quantum Foods reported an increase of 234% in RHEPS and declared dividends of 90c per share during the year ended 30 September 2018. Summarised Income Statement Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Historical R'm R'm R'm R'm R'm R'm Revenue 3,483 3,561 3,4
Slide 22: Business overview – CAN Agri
Business overview Portfolio review CAN Agri is a green-field, startup vertical farming business that owns proprietary technology that delivers improved yields at lower costs sustainably. First full-scale unit completed in January 2019 – within budget First harvest completed in February 2019 – wi
Slide 23: Conclusion
Conclusion With a strong existing platform and focused addition of new opportunities, the prospects remain positive in the long term. Despite the short-term challenges, we remain committed to deliver attractive shareholder returns over the next 5 years. 22
Slide 24: Questions
Questions will now be answered as registered on the webinar’s call or data log 23