Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — H1 2024 Earnings Presentation
39 slides from Calgro M3's earnings presentation, October 2023
Slide 1: Interim Financial Results for the period ended 31 August 2023
INTERIM FINANCIAL RESULTS for the period ended 31 August 2023 www.calgrom3.com
Slide 2: Agenda
AGENDA 1 2 3 4 5 6 PERIOD UNDERLYING FINANCIAL SHAREHOLDING THE FUTURE APPENDIX UNDER REVIEW BUSINESS REVIEW PERFORMANCE 5 Interim AnnualFinancial FinancialResults Results for for the the period period ended ended 31 31 August August 2023 2023 2
Slide 3: Period Under Review
01 PERIOD UNDER REVIEW 3
Slide 4: Core Message
CORE MESSAGE Adaptable pipeline opportunities adjusting Growth Financial health to the various in both the is robust, with focused consumer income Developments and capital allocation and groups, whilst ensuring Memorial Parks the ability to invest in diversification of segments infrastructure projec
Slide 5: Financial Overview of the Period
FINANCIAL OVERVIEW OF THE PERIOD Financial highlights: 949 Both segments 18.6% 2 118 Net debt: equity Residential units increased profit after share buybacks at an residential units under stable at handed over with tax by >20% average price of R2.63 construction 0.61 Revenue increased by EPS and HEP
Slide 6: Environmental, Social and Governance (ESG)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) Total staff complement analysis Corporate social responsibility (“CSR”) Initiatives African Coloured Indian White FH soccer field spring day Male Total 53.6% 10.7% 3.6% 32.1% Winter blanket drive 54% Female 57.8% 14.1% 7.0% 21.1% 46% Total workforce 56.3%
Slide 7: Underlying Business Performance
02 UNDERLYING BUSINESS PERFORMANCE 7
Slide 8: Contributions to Group
CONTRIBUTIONS TO GROUP Revenue contribution to Group 97% 3% Interim AnnualFinancial FinancialResults Results for for the the period period ended ended 31 31 August August 2023 2023 8
Slide 9: Integrated Residential Developments
INTEGRATED RESIDENTIAL DEVELOPMENTS The markets served are broad, ranging from fully subsidised to bonded homes, which allows us to adapt and reposition construction activities amongst market segments in response to economic shifts. Jabulani Junction Grand Views Acacia Grove Interim AnnualFinancial
Slide 10: Integrated Residential Developments: Fleurhof, Gauteng
INTEGRATED RESIDENTIAL DEVELOPMENTS Fleurhof | Gauteng Interim AnnualFinancial FinancialResults Results for for the the period period ended ended 31 31 August August 2023 2023 10
Slide 11: Residential Property Development
RESIDENTIAL PROPERTY DEVELOPMENT Revenue increased by 13,9% • Well-equipped with sufficient liquidity to ensure market demand and growth • Gross margin on target – 21.6% • Spend R250 million - On track to complete infrastructure for 3 398 opportunities by mid next year • Cost to complete R150 millio
Slide 12: Residential Property Development
RESIDENTIAL PROPERTY DEVELOPMENT Serviced opportunities 1 937 Under construction 2 118 Total remaining pipeline 20 239 Active projects 8 Units handed over 949 Units being serviced 3 398 Total segment revenue (August 2023) Revenue pipeline Opportunities Total 16% under opportunities to Revenue pipeli
Slide 13: Residential Property Development - Product Offering
RESIDENTIAL PROPERTY DEVELOPMENT- PRODUCT OFFERING Interim AnnualFinancial FinancialResults Results for for the the period period ended ended 31 31 August August 2023 2023 13
Slide 14: Memorial Parks
MEMORIAL PARKS Calgro M3 Memorial Parks is an alternative to traditional cemeteries, adds value to existing developments, introduces an alternative burial option that is dignified, secure and which delivers a service to customers that is superior to other products in the market. Nasrec Fourways Durb
Slide 15: Memorial Parks
MEMORIAL PARKS Cash receipts increased by 33.8% • Gross sales, made up of cash and completed lay-bys, rose by 52.1% to R34.7 million (Full year Feb 2023: R 47.9 mil) • New Lay-by sales accounted for R11.2 million* • Active lay-by book is R21.1 million and completed transactions amounts to R2.6 milli
Slide 16: Financial Review
03 FINANCIAL REVIEW 16
Slide 17: Key Financial Metrics
KEY FINANCIAL METRICS Revenue (R’000) Earnings per share (cents) 800 000 80,00 78,88 688 904 700 000 60,00 57,04 607 079 600 000 520 781 39,56 500 000 40,00 395 829 395 829 400 000 20,00 300 000 -1,46 0,00 200 000 Aug 19 Aug 20 Aug 21 Aug 22 Aug 23 100 000 -20,00 0 -30,46 Aug 19 Aug 20 Aug 21 Aug 22
Slide 18: Statement of Cashflows
STATEMENT OF CASHFLOWS Unaudited Audited Unaudited (R’000) Aug 2023 Feb 2023 Aug 2022 Cash generated from operating activities Cash generated from/ (utilised in) operations 117 872 86 639 (60 560) Finance income received 27 571 8 003 4 367 Finance cost paid (55 557) (90 375) (43 225) Tax paid (74) (
Slide 19: Statement of Cashflows (cont)
STATEMENT OF CASHFLOWS (CONT) Unaudited Audited Unaudited (R’000) Aug 2023 Feb 2023 Aug 2022 Cash flows (repaid in) / advanced financing activities Proceeds from borrowings 155 000 230 000 50 000 Capital repayment of borrowings (122 400) (194 800) (77 400) Share repurchases (59 713) - - Repayment of
Slide 20: Segmental Revenue Contribution
SEGMENTAL REVENUE CONTRIBUTION Revenue Unaudited Unaudited Audited Residential Property Development Segment - (R’000) Aug 2023 Aug 2022 Feb 2023 Revenue Disaggregation Residential Property Development 668 959 587 247 1 489 773 9% 3% Infrastructure Fully & partially Memorial Parks 19 945 19 832 35 54
Slide 21: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited February (R’000) Aug 2023 Aug 2022 2023 Revenue 688 904 607 079 1 525 317 Gross profit 152 795 134 168 357 694 Gross profit % 22.2% 22.1% 23.5% Administrative expenses (49 875) (41 071) (102 425) Share of profit/(loss) of joint ventures – net of
Slide 22: Statement of Financial Position | Assets
STATEMENT OF FINANCIAL POSITION | ASSETS Unaudited Audited Unaudited (R’000) Aug 2023 Feb 2023 Aug 2022 Assets Residential Property Development Segment - Cash and cash equivalents 191 880 172 614 58 852 Construction Contracts Disaggregation Trade and other 166 356 164 011 169 195 10% 3% receivables
Slide 23: Statement of Financial Position | Equity and Liabilities
STATEMENT OF FINANCIAL POSITION | EQUITY AND LIABILITIES Unaudited Audited Unaudited (R’000) Aug 2023 Feb 2023 Aug 2022 Stated Capital 42 368 102 081 102 081 Share based payment reserve 4 869 10 455 8 434 Retained income 1 136 289 1 040 813 923 898 Non-controlling interest 731 689 607 Total equity 1
Slide 24: Borrowing Maturities
BORROWING MATURITIES Rand Rand Rand Outstanding Capital (R’m) Maturity profile (R’m) Maturity profile (R’m) Balance 28 Feb 2023 876.4 FY 2024 160.4 FY 2027 93.8 New debt 155.0 FY 2025 211.8 FY 2028 140.0 Debt repaid (122.4) FY 2026 157.5 FY 2029 155.0 Closing balance 31 Aug 2023 909 Average cost of
Slide 25: Covenants
COVENANTS 31 Aug 28 Feb 2023 2023 Net debt to equity ratio 0.61 0.62 Debt service cover ratio 2.27 1.61 Net Debt to Equity Target Date Target By 28 February 2024 0.75: 1 Regulated covenant levels: Maximum allowed net debt: equity ratio for the Group is 1.5 : 1 Minimum allowed DSCR ratio for the Grou
Slide 26: Shareholding
04 SHAREHOLDING 26
Slide 27: Shareholding
SHAREHOLDING • Bought back 18,63% (22.6 million shares) of issued As of August 2023 ordinary shares, net of treasury shares. • Average price of R2.63 Executive mgmnt • All shares bought back were cancelled 15% Institutions 15% • Issued share capital reduced from 121.4m shares to 98.8m shares Private
Slide 28: The Future
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Slide 29: Building Legacies. Changing Lives
BUILDING LEGACIES. CHANGING LIVES “Do not judge me by my success, judge me by how many times I fell down and got back up again.” Nelson Mandela Interim AnnualFinancial FinancialResults Results for for the the period period ended ended 31 31 August August 2023 2023 29
Slide 30: Outlook
OUTLOOK 1 FOCUSSED GROWTH 2 3 MEMORIAL 4 TAILORED 5 MARKET 6 PROFITABLE DIVERSIFICATION AND PARKS PRODUCTS INSIGHT OUTLOOK SUSTAINABILITY CONFIDENCE Developments segment Frankenwald sets stage ▪ Remain optimistic Ensuring affordability, and Our in-depth Targeting a gross profit revenue pipeline of f
Slide 31: Outlook
OUTLOOK 7 FINANCIAL 8 DIGITAL 9 SHARE 10 DIVIDEND STRENGTH INNOVATION BUYBACKS POLICY EXPLORATION Robust balance sheet We see significant Continue to consider Evaluating the and liquidity position opportunities for growth share buybacks when the implementation of a complemented by and efficiency thr
Slide 32: Core Message
CORE MESSAGE Adaptable pipeline opportunities adjusting Traction maintained Financial health to the various in both the is robust, with focused consumer income Developments and capital allocation and groups, whilst ensuring Memorial Parks the ability to invest in diversification of segments infrastr
Slide 33: Thank You
THANK YOU Unaudited condensed consolidated interim results are available at www.calgrom3.com Investor relations Wikus Lategan (CEO) Email: wikus@calgrom3.com Sayuri Naicker (FD) Email: sayurin@calgrom3.com Waldi Joubert (MD – Memorial Parks) Email: waldi@calgrom3.com Vanessa Rech (KRIS) Email: vrech
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
Slide 35: Q&A
06 Q&A 35
Slide 36: Appendix
07 APPENDIX 36
Slide 37: Business Model
BUSINESS MODEL RESIDENTIAL PROPERTY DEVELOPMENT MEMORIAL PARKS Value is created through a turnkey approach to capitals Value is created through operating in strategic locations and Professional services providing superior products and customer service • Identify project and due diligence • Landscapi
Slide 38: Board Composition
BOARD COMPOSITION Interim AnnualFinancial FinancialResults Results for for the the period period ended ended 31 31 August August 2023 2023 38
Slide 39: Memorial Parks | Product Development
MEMORIAL PARKS | PRODUCT DEVELOPMENT Lay-by product Grave quantities • Introduced in July 2022 28 691 • Allows customers up to 24 months to pay for reservation of a grave, at 0% interest • Resulted in an additional R11.2 million in sales 7 184 (not yet reflected in revenue) • Of this amount, R2.6 mi