Cashbuild Limited · JSE:CSB
Cashbuild — H1 2021 Earnings Presentation
38 slides from Cashbuild's earnings presentation, 2021
Slide 1: Interim Results and Dividend Declaration
2021 I N T E R I M R E S U LT S AND DIVIDEND D E C L A R AT I O N for the six months ended 27 December 2020
Slide 2: Contents
Contents Financial review 5 Product categories 18 Store development 27 and summary Financial results 37
Slide 3: Results Presentation Disclaimer
RESULTS PRESENTATION For the six months ended December 2020 NOTES DISCLAIMER This presentation differs from the presentation available on the website as a result of industry sensitive information contained therein. The financial information pertaining to Cashbuild Limited’s (Cashbuild’s) results are
Slide 4: Nature of Business and Financial Highlights - Statutory
NATURE OF BUSINESS • Mass retailer of building materials, home improvement and related products • Offers a focused range of quality products at competitive prices • Selling predominantly for cash • 317 stores and expanding (258 Cashbuild, 58 P&L Hardware and 1 Cashbuild DIY) 3 NOTES FINANCIAL HIGHLI
Slide 5: Financial review
Financial review 01 5
Slide 6: Income Statement and Revenue Breakdown
INCOME STATEMENT STATUTORY PERIOD-ON-PERIOD Audited Audited Audited 27 Dec 2020 29 Dec 2019 % Jun 2020 R’m (26 Weeks) (26 Weeks) change (52 Weeks) Revenue 6 695 5 510 21 10 091 Gross profit 1 765 1 369 29 2 525 Gross profit % 26.4 24.8 25.0 Operating expenses 1 189 1 069 11 2 005 Operating expenses
Slide 7: Customer Transactions and Average Basket Size
CUSTOMER TRANSACTIONS RSA Hard Lockdown 2020 ‘000 Essential Trade allowed 2020 All stores Growth: Q1: 19% Q2: 10% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Existing stores Growth: Q1: 16% Q2: 7% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun * 2019 & 2020 has been smoothed for comparative 4 w
Slide 8: Gross Profit and EBIT Margin; Segmental Disclosure
GROSS PROFIT AND EBIT MARGIN 27% 10% 26% 26.4% 9% 8.6% 25% 25.4% 25.7% 25.2% 25.2% 25.1% 25.2% 25.2% 8% 24.8% 24% 7.0% 7% 23% 6.0% 6% 22% 5.4% 5% 5.1% 21% 4% 20% 19% 3% 18% 2% FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 1HY 2HY HY EBIT margin 10 NOTES SEGMENTAL DISCLOSURE Cashbuild Namibia, Cashbuild P&
Slide 9: Existing Business Results and Operating Expenses
EXISTING BUSINESS RESULTS % R’m Dec 2020 Dec 2019 change Revenue 6 509 5 471 19 Gross profit 1 717 1 357 27 Gross profit % 26.4 24.8 Operating expenses 1 150 1 052 9 Operating expenses % 17.7 19.2 Operating profit 567 305 86 Operating profit % 8.7 5.6 “Existing business” refers to stores that have c
Slide 10: EPS and DPS; Summarised Statement of Financial Position
EARNINGS PER SHARE (EPS) AND DIVIDEND PER SHARE (DPS) PERIOD-ON-PERIOD 1800 1 595 1600 1400 113% 1 189 1200 1 083 1000 956 Cents 800 748 724 66% 600 540 496 435 435 400 200 0 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021 EPS DPS • Interim dividend based on 1H2021 performance • Dividend cover policy mainta
Slide 11: Inventory Analysis and Cash Flow
INVENTORY ANALYSIS P&L Stock holding – all stores (% change) Cashbuild Group Hardware Stores stocked since December 2019 2 1 2 (6 Cashbuild and 1 P&L Hardware) Existing stores 1 (26) (4) Total 3 (25) (2) • Purchase inflation at 5% • Sustained gains on excess and slow-moving stocks • P&L Hardware was
Slide 12: Notes
NOTES CASHBUILD AUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 27 DECEMBER 2020
Slide 13: Product categories
Product categories 02 CASHBUILD AUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 18
Slide 14: Group Sales per Week and Cement Sales
GROUP SALES PER WEEK RSA Hard Lockdown 2020 R’MILLION Essential Trade allowed 2020 Q1 Q2 Q3 W1 W4 W7 W10 W13 W16 W19 W22 W25 W28 W31 W34 W37 W40 W43 W46 W49 W52 2019 2020 2021 19 NOTES CEMENT SALES RSA Hard Lockdown 2020 POCKETS Essential Trade allowed 2020 Q1 Q2 Q3 W1 W4 W7 W10 W13 W16 W19 W22 W25
Slide 15: Cement Unit Sales and Total Timber Sales
CEMENT UNIT SALES PER SUPPLIER Dec 2019 Jun 2020 Dec 2020 7% 11% 9% 10% 7% 11% 7% 5% 6% 5% 4% 4% 31% 29% 32% 20% 22% 21% 17% 19% 23% AFRISAM PPC CEMZA OTHER SEPHAKU MAMBA NPC 21 NOTES TOTAL TIMBER SALES RSA Hard Lockdown 2020 R’MILLION Essential Trade allowed 2020 Q1 Q2 Q3 W1 W4 W7 W10 W13 W16 W19 W
Slide 16: Total Brick Sales and Roof Covering Sales
TOTAL BRICK SALES RSA Hard Lockdown 2020 R’MILLION Essential Trade allowed 2020 Q1 Q2 Q3 W1 W4 W7 W10 W13 W16 W19 W22 W25 W28 W31 W34 W37 W40 W43 W46 W49 W52 2019 2020 2021 23 NOTES TOTAL ROOF COVERING SALES RSA Hard Lockdown 2020 R’MILLION Essential Trade allowed 2020 Q1 Q2 Q3 W1 W4 W7 W10 W13 W16
Slide 17: Total Opening Sales and Decorative Sales
TOTAL OPENING SALES RSA Hard Lockdown 2020 R’MILLION Essential Trade allowed 2020 Q1 Q2 Q3 W1 W4 W7 W10 W13 W16 W19 W22 W25 W28 W31 W34 W37 W40 W43 W46 W49 W52 2019 2020 2021 25 NOTES TOTAL DECORATIVE SALES RSA Hard Lockdown 2020 R’MILLION Essential Trade allowed 2020 Q1 Q2 Q3 W1 W4 W7 W10 W13 W16 W
Slide 18: Notes
NOTES CASHBUILD AUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 27 DECEMBER 2020
Slide 19: Store development and summary
Store development and summary 03 27
Slide 20: Store Development and New Stores HY2021
STORE DEVELOPMENT Total Cashbuild Stores (excl DIY) Total P&L Hardware Stores 255 256 258 60 59 61 242 251 9 8 3 46 2 3 11 14 12 4 246 248 255 57 58 58 230 240 46 42 June 2017 June 2018 June 2019 June 2020 Dec 2020 June 2017 June 2018 June 2019 June 2020 Dec 2020 Existing Cashbuild stores New Cashbu
Slide 21: Stores by Location and Sales by Province
STORES BY LOCATION Number of stores Dec 2020 (Dec 2019) Location Town- Town Rural Metro 84 (86) (% of total) ship 98 (100) 28 (29) 2020 Stores 34% 31% 26% 9% 2020 Sales 36% 28% 26% 10% 107 (106) 2019 Stores 33% 31% 27% 9% 2019 Sales 34% 30% 26% 10% 30 NOTES % of Total sales SALES BY PROVINCE 2.8% 2.
Slide 22: Competitor Landscape - Corporate and Independents
COMPETITOR LANDSCAPE – CORPORATE 49 (PY 49) 16 (PY 16) 87 (PY 91) 24 (PY 20) • Approximately 392 stores (PY 390) • Most direct competitor in terms of offering and location 13 (PY 13) 39 (PY 39) • Approximately 117 stores (PY 117) • Entry into Kenya 181 (PY 181) 3 (PY 3) • Approximately 86 stores (PY
Slide 23: Acquisition of The Building Company; Market Summary
ACQUISITION OF THE BUILDING COMPANY (TBC) CURRENT STATUS Funding All funding agreements concluded – ready for transaction closure Namibian Competition Authority Transaction approved unconditionally eSwatini Competition Authority Investigation still in progress. Transaction is ”ring-fenced” in eSwati
Slide 24: Thank you for your attendance and participation
THANK YOU FOR YOUR ATTENDANCE AND PARTICIPATION WWW.CASHBUILD.CO.ZA SWITCHBOARD: +27 11 248 1500 Werner de Jager Etienne Prowse Wimpie van Aswegen Chief Executive Finance Director Commercial and Marketing Director For any further Investor Relations questions please contact: Keyter Rech Investor Solu
Slide 25: Financial results
Financial results 04 CASHBUILD AUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 37 27
Slide 26: Financial highlights
Financial highlights for the six months ended 27 December 2020 REVENUE (Rm) HEADLINE EARNINGS (Rm) revenue 7 000 400 6 695 350 6 000 300 270 5 563 249 5 510 5 393 5 000 200 221 5 165 173 4 000 100 3 000 0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 OPERATING PROFIT (Rm) SPACE GROWTH (stores) 6
Slide 27: Summary consolidated interim income statement - Audited
Summary consolidated interim income statement – Audited Six months Six months ended ended Year ended 27 December 29 December 28 June 2020 2019 % 2020 R’000 (26 weeks) (26 weeks) change (52 weeks) Revenue 6 694 502 5 510 188 21 10 090 910 Cost of sales (4 929 613) (4 141 614) 19 (7 565 860) Gross pro
Slide 28: Summary consolidated interim statement of comprehensive income
Summary consolidated interim statement of comprehensive income – Audited Six months Six months ended ended 27 December 29 December Year ended 2020 2019 28 June R’000 (26 weeks) (26 weeks) 2020 Profit for the period 364 244 172 813 272 670 Other comprehensive income: Total movement in foreign currenc
Slide 29: Additional information
Additional information Six months Six months ended ended Year ended 27 December 29 December 28 June R’000 2020 2019 2020 Net asset value per share (cents) 9 640 8 388 8 470 Net asset value per share (excluding treasury shares) 10 615 9 225 9 315 Ordinary shares (’000s): – In issue 24 990 24 990 24 9
Slide 30: Summary consolidated interim statement of financial position
Summary consolidated interim statement of financial position – Audited 27 December 29 December 28 June R’000 2020 2019 2020 ASSETS Non-current assets 2 997 140 3 013 288 2 974 780 Property, plant and equipment 2 397 165 2 430 394 2 394 577 Investment property 57 924 54 435 57 924 Intangible assets 4
Slide 31: Summary consolidated interim statement of cash flows
Summary consolidated interim statement of cash flows – Audited Six months Six months ended ended Year ended 27 December 29 December 28 June R’000 2020 2019 2020 Cash flows from operating activities Cash generated from operations 1 195 401 1 187 845 2 108 499 Interest paid (77 769) (90 495) (191 518)
Slide 32: Statement of changes in equity and segmental analysis
Summary consolidated interim statement of changes in equity – Audited R’000 Restated balance at 1 July 2019 Total comprehensive income for the period Dividends paid Shares sold by the Cashbuild Trusts Recognition of share-based payments Balance at 29 December 2019 Total comprehensive income for the
Slide 33: Attributable to owners of the company
Attributable to owners of the company Share-based Non- Share Share payments Retained controlling capital premium reserve FCTR earnings interests Total equity 227 (274 414) 79 137 2 149 2 200 776 30 699 2 038 574 – – – 4 496 169 957 3 647 178 100 – – – – (96 437) (1 258) (97 695) – 1 266 – – – – 1 26
Slide 34: Notes to the summary consolidated interim financial information
Notes to the summary consolidated interim financial information 1. Basis of preparation. The summary consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), the presentation and disclosure requirements of IAS 34 – Interim Financ
Slide 35: Earnings per share and headline earnings
5. Earnings per share. Earnings per share is calculated by dividing the earnings attributable to owners of the company for the period by the weighted-average number of 22 695 705 ordinary shares in issue at period-end (2019: 22 723 080 shares; June 2020: 22 722 350). 6. Headline earnings per ordinar
Slide 36: Commentary
Commentary Nature of business Cashbuild is southern Africa’s largest retailer of quality building materials and associated products, selling direct to a cash-paying customer base through our chain of stores (317 at the end of this reporting period which includes 58 P&L Hardware stores and 1 DIY stor
Slide 37: Corporate information
Corporate information Directors AGW Knock (British)* (Chairman), M Bosman*, WF de Jager (Chief Executive), HH Hickey*, Dr DSS Lushaba*, AE Prowse, GM Tapon Njamo*, SA Thoresson, WP van Aswegen (*Non-executive) Company Secretary T Nengovhela Registered Office 101 Northern Parkway, Ormonde, Johannesbu
Slide 38: cashbuild.co.za
(Cashbuild cashbuild.co.za