Zeder Investments Limited · JSE:ZED
Zeder Investments — H1 FY2025 Earnings Presentation
20 slides from Zeder Investments's earnings presentation, Oct 11, 2024
Slide 1: Interim Results 31 August 2024
INTERIM RESULTS 31 AUGUST 2024 PRESENTED BY: JOHANN LE ROUX DATE: 11 OCTOBER 2024 1
Slide 2: Agenda
AGENDA • Noteworthy events • Interim financial results • Portfolio review • Strategy • Questions – email to cosec@zeder.co.za 2
Slide 3: Noteworthy Events
NOTEWORTHY EVENTS • Pome Investments – disposal of individual pome assets Disposal of Disposal of Disposal of Disposal of TWK farm Applethwaite farm Misty Cliffs farm Novo packhouse • Sales agreement • Sales agreement • Sales agreement • Sales agreement signed signed signed signed • Main CP relating
Slide 4: Cashflow Movements
CASHFLOW MOVEMENTS • Special dividends, pome loan repayment and further loans to Zaad Special dividends Special dividends Pome loan repaid Bridge loans • Disposal of Capespan • No further TLG • Pome Investments • Bridge loans advanced during January 2024 restricted funds as from working capital loan
Slide 5: Interim Financial Results
INTERIM FINANCIAL RESULTS • Business and operating environment • Sum-of-the-parts 5
Slide 6: Business and Operating Environment
INTERIM FINANCIAL RESULTS BUSINESS AND OPERATING ENVIRONMENT ❑ Index recovered by 10 points during Q3 2024 to 48 points ❑ Improvement attributed to renewed optimism around the Government of National Unity ❑ Reading however remains below the neutral 50-point mark ❑ This year has been very difficult f
Slide 7: Sum-of-the-Parts H1FY25
INTERIM FINANCIAL RESULTS SUM-OF-THE-PARTS H1FY25 The SOTP value per share has decreased by 33c from 29 February 2024, driven by the 30c per share special dividends paid and the adjustments to the valuations of our unlisted investments. Zeder has no debt and a cash balance which will be bolstered by
Slide 8: Portfolio Review
PORTFOLIO REVIEW INVESTMENTS LIMITED
Slide 9: Zaad is a 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. 9
Slide 10: Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS Zaad reported a decrease of 26.9% in recurring earnings to R160m, mainly as a result of the performance of Farm-AG, May Seed and various associate investments. The decrease in EBITDA not aligned to earnings as a result of increased interest rates and therefore high
Slide 11: Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS On a continued business operations basis, the recurring earnings decreased by 18.1% to R186m from the comparative prior period of R227m, largely due to the non- performance from smaller associate investments. GENERAL COMMENTS • These smaller associate investments a
Slide 12: Business and Operating Environment
PORTFOLIO REVIEW BUSINESS AND OPERATING ENVIRONMENT GENERAL COMMENTS • Despite a below average sunflower year as a result of the El • Early indications are that a La Niña weather pattern is Niño weather pattern, Agricol had a promising winter crop expected for the upcoming summer crop season. season
Slide 13: Business and Operating Environment
PORTFOLIO REVIEW BUSINESS AND OPERATING ENVIRONMENT Unexpected sharp decrease in chemical raw materials over short period of time. Significant decline in raw material prices resulted in higher cost inventory being sold at lower margins in order to remain competitive and retain market share. Chemical
Slide 14: Business and Operating Environment
PORTFOLIO REVIEW BUSINESS AND OPERATING ENVIRONMENT These challenges are not unique to Farm-Ag and a similar impact can be seen across the industry. Improvements can however be seen in the market with gross margins returning to more normalised levels. Chinese supply prices are expected to increase o
Slide 15: Business and Operating Environment
PORTFOLIO REVIEW BUSINESS AND OPERATING ENVIRONMENT GENERAL COMMENTS • The African subsidiaries' results were in line with expectations. • The Turkish economy has experienced high inflation and The operating environment in Zimbabwe initially seems to have political uncertainty. May Seed performed we
Slide 16: Business and Operating Environment
PORTFOLIO REVIEW BUSINESS AND OPERATING ENVIRONMENT Developing (African) currencies are under pressure and makes the fight to curb inflation difficult and leads to higher interest rates over longer periods. Even though revenue mostly linked to foreign currencies, immediate access to forex remains a
Slide 17: Strategy
STRATEGY INVESTMENTS LIMITED
Slide 18: Strategy
STRATEGY • Zeder’s objective remains to maximise shareholder wealth • How did we do so far during the 2025 financial year? ─ Dividends to shareholders ─ Special dividends totalling 30c per share paid during the 2025 financial year (R462m) ─ Further special dividends anticipated during the year as a
Slide 19: Strategy
STRATEGY Zeder’s strategy has enabled a return of over R8bn to shareholders in terms of special dividends and the KAL Group unbundling. The discount has narrowed from R2.96bn to the current ~R300m. We will continue with this strategy and the disposal of individual pome assets will enable further spe
Slide 20: Thank you
Awaiting image… Thank you PHYSICAL ADDRESS POSTAL ADDRESS 1ST 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