Zeder Investments Limited · JSE:ZED
Zeder Investments — H1 2023 Earnings Presentation
22 slides from Zeder Investments's earnings presentation, Oct 12, 2022
Slide 1: Interim Results 31 August 2022
INTERIM RESULTS 31 AUGUST 2022 PRESENTED BY: JOHANN LE ROUX DATE: 12 OCTOBER 2022 1
Slide 2: Agenda
AGENDA • Noteworthy transactions • Strategy • Interim financial results • Portfolio review • Prospects • 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% • Purchase price held in • Been a difficult interest in Zeder Africa, escrow until closing investment for Zeder which own
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 shareholding
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 further special R2.30 per share
Slide 7: Strategy
STRATEGY INVESTMENTS LIMITED
Slide 8: Strategy
STRATEGY • Zeder’s objective remains to maximise shareholder wealth ─ Grow the investee portfolio companies ─ Dividends to shareholders ─ Evaluate disposals when appropriate (timing and price) • The TLG disposal and Kaap Agri unbundling had a positive impact on Zeder’s wealth creation for shareholde
Slide 9: Strategy: Value creation for shareholders
STRATEGY The recent corporate actions and resultant special dividends had a positive impact on Zeder’s value creation for shareholders over the past 3.5 years, during the main Covid and now recovery period. 28 Feb 2019 Transactions/special dividend Post further dividend Interest Unbundling Dividend
Slide 10: Interim Financial Results
INTERIM FINANCIAL RESULTS • Covid and Russia-Ukraine conflict • Results Summary • Sum-of-the-parts 10
Slide 11: Covid & Russia-Ukraine Conflict
INTERIM FINANCIAL RESULTS COVID & RUSSIA-UKRAINE CONFLICT • Covid recovery period - Impact on Zeder and its investment portfolio ─ Pro-active measures taken and implemented by portfolio management ─ Supply chain constraints leading to increased shipping costs and margin erosion ─ Inefficiencies at S
Slide 12: Results Summary
INTERIM FINANCIAL RESULTS RESULTS SUMMARY • Intrinsic value of portfolio impacted by corporate actions and special dividends ─ Total Sum-of-the-Parts value decreased from R4.66 to R2.69 per share ─ Decrease as a result of corporate actions (special dividend and KAL unbundling = R1.96 per share) – Ze
Slide 13: Sum-of-the-Parts
INTERIM FINANCIAL RESULTS SUM-OF-THE-PARTS Decrease in the SOTP value per share since year end to 31 August 2022, Kaap Agri and the TLG Group no longer part of Zeder and resultant special dividend paid from TLG proceeds. Increase in cash on the balance sheet on 3 October 2022, subsequent to the TLG
Slide 14: Portfolio Review
PORTFOLIO REVIEW INVESTMENTS LIMITED
Slide 15: Zaad: 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: Zaad Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS Zaad reported an increase of 32% in RHEPS for the year ended 30 June 2022 to recurring headline earnings of R240m. Debt reduced as a result of the Zeder bridge loan converted to equity during April 2022. Jan 20 Jan 21 Jun 21 Jun 22 Summarised Income Statement 12 mo
Slide 17: Zaad valuation increased to R2.384bn
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in Zaad has increased to R2.384bn, as a result of the R330m Zeder loan conversion to equity and the improved financial performance during the Covid recovery period. GENERAL COMMENTS VALUATION CONSIDERATIONS • Good performances from
Slide 18: Capespan: 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: Capespan Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS Capespan reported a loss of R63m for the six-months period ended 30 June 2022, compared to the prior period loss of R56m. Loss at interim as expected, as the interim period primarily represents the annual input cost cycle. Dec 20 Dec 21 Jun 21 Jun 22 Summarised Inc
Slide 20: Capespan valuation decreased to R1.046bn
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in Capespan has decreased to R1.046bn, largely as a result of the difficult trading environment and continued supply chain challenges experienced as a result of the lagging impact of Covid. GENERAL COMMENTS VALUATION CONSIDERATIONS
Slide 21: Prospects
PROSPECTS • Grow and support our existing portfolio ─ Agricultural conditions mostly favourable – there is margin pressure ─ Covid recovery and Russia-Ukraine conflict implications will impact the portfolio ─ Global supply chain challenges and resultant inflation pressure will remain • Approaches re
Slide 22: 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