Caxton And Ctp Publishers And Printers Limited · JSE:CAT
Caxton And Ctp Publishers And Printers — FY2022 Earnings Presentation
33 slides from Caxton And Ctp Publishers And Printers's earnings presentation, November 2022
Slide 1: Caxton & CTP FY22 Results Roadshow
Caxton & CTP FY22 Results Roadshow [November 2022]
Slide 2: Caxton Executive Directors
Caxton Executive Directors Terry D Moolman | Founder & CEO Terry and his partners bought control of Caxton and CTP Publishers and Printers Limited in 1977, with a market capitalization of R260 000, and has been the Chief Executive Officer ever since. Tim JW Holden| MD & FD BCom, CA(SA) Tim joined th
Slide 3: Overview of Caxton
Overview of Caxton Who are we Terry Moolman and partners acquired control in 1977, and Caxton & CTP Publishers and Printers is now a major participant in the South African print media industry and also has an ever growing packaging industry presence. It is recognised as one of the largest regional a
Slide 4: Caxton Group
Caxton Group CAXTON AND CTP PUBLISHERS AND PRINTERS LIMITED MPACT, MAJOR INVESTMENTS AND CASH AND CASH EQUIVALENTS OPERATIONS ASSOCIATES Printing, Publishing and Distribution Packaging and Stationary 33,7% 9,3% Newspaper Book and Commercial Packaging Stationary publishing magazine printing printing
Slide 5: Key business milestones
Key business milestones Clear execution of business strategy to maximise returns from traditional publishing and printing business and expand the packaging business through acquisitions Acquisition of HP labels (R24m) Acquisition of Cape Printing Acquisition of Nampak and Boland Printers (R78m) to (
Slide 6: Key business milestones
Key business milestones Clear execution of business strategy to maximise returns from traditional traditional publishing and printing business and expand the packaging business through acquisitions Acquisition of Boxes for Further investments in Further investments in Acquisition of AMCOR for Africa
Slide 7: A year in review
A year in review For the year ended 30 June 2022 7
Slide 8: A year in review
A year in review Challenging operating Strong segmental growth Strong performance Investment in future growth environment despite headwinds and earnings • Shortages and significant cost Local newspaper business • Strong recovery after Covid-19 • R206m gross investment in plant increases in global co
Slide 9: 2022 Salient features
2022 Salient features Operating costs increased Operating Profit before Group revenue of R5.9bn by R431.5m to R5.1bn depreciation and Maximise value of traditional publishing and amortisation up by R264.1m printing business 14.5% 9.1% to R828.0m Expand the packaging Reflecting volume increases and V
Slide 10: Ten year review
Ten year review 30 June 2013 30 June 2014 30 June 2015 30 June 2016 30 June 2017 30 June 2018 30 June 2019 30 June 2020 30 June 2021 30 June 2022 Revenue (Rm) 5 157 5 390 6 261 6 405 6 407 6 334 6 321 5 572 5 220 5 979 Profit/(Loss) before taxation (Rm) 686 545 597 590 610 541 452 (47) 739 686 Opera
Slide 11: Financial review
Financial review For the year ended 30 June 2022 11
Slide 12: High level financial overview
High level financial overview Revenue (R’m) EBITDA (R’m) 20% 16% 7,000 900 828 6,334 6,321 14% 5,97915% 15% 800 759 14% 6,000 5,572 5,220 700 12% 654 563 12% 10% 5,000 10% 11% 600 10% 5% 4,000 500 -1% 350 8% R’m R’m 3,000 0% 0% 400 6% 6% -5% 300 2,000 -6% 4% 200 1,000 -10% 2% -12% 100 0 -15% 0 0% 20
Slide 13: High level overview
High level overview Cash on hand at year end (R’m) Working Capital (R’m) 3,300 2 500 2,800 1 989 2,300 2 000 1 743 1 698 1 664 1,800 1 544 1 500 1,300 R’m R’m 800 1 000 300 -200 500 2018 2019 2020 2021 2022 -700 - -1,200 2018 2019 2020 2021 2022 Accounts Receivable Stock Accounts Payable R1,664.7, a
Slide 14: High level overview: Capex and ESG
High level overview Capex (R’m) ESG 250 Target 30% reduction of emissions by 2030 200 6 64 181 84 150 Innovating towards biodegradable packaging 60 R'm 142 100 98 91 In the process of addressing emissions measurement requirements 50 to enable it to apply for air emission licenses under National - En
Slide 15: Group Returns
Group Returns Group returns Net Asset Value (R’m) 1000 000 4500 900 000 3,517 24,7% 3,487 4000 3,346 21,8% 3,090 800 000 3500 2,888 700 000 18,6% 3000 600 000 19,5% 1,990 2500 1,905 ZAR R’m 1,743 500 000 1,698 1,665 1,560 1,544 2000 400 000 11,3% 1500 300 000 714 1000 629 200 000 7,7% 7,2% 6,9% 4,4%
Slide 16: Segmental Review
Segmental Review For the year ended 30 June 2022 16
Slide 17: Publishing, printing and distribution
Publishing, printing and distribution Divisions Contribution to Group revenue Newspaper Commercial Book and magazine publishing printing printing Publishing, printing and 46% distribution Segment performance 54% Packaging and stationary 30 June 2022 30 June 2021 %▲ Revenue 3 207 2 924 10% EBITDA 470
Slide 18: Publishing, printing and distribution: Newspaper publishing
Publishing, printing and distribution Newspaper publishing Volume increases advertising inserts from national retailers 13% National, and 9% local advertising recovery Cost pressures imported paper and cost of distribution Local newsprint sourcing advantage 120 weekly titles going to 3 million house
Slide 19: Publishing, printing and distribution: Commercial printing
Publishing, printing and distribution Commercial printing Improvement in profitability driven by demand for retail catalogues Market share gains in commercial retail pamphlet sector Revenue mainly driven by food and liquor sectors R30.9m costs expensed arising from Durban floods 19
Slide 20: Publishing, printing and distribution: Book and magazine printing
Publishing, printing and distribution Book and magazine printing Solids results delivered by the operation in the Western Cape Market remains competitive Rising input costs recovered, maintained margins Contracts signed to print Media24 weekly magazines and The Foschini Group publications Raw materi
Slide 21: Packaging and stationary
Packaging and stationary Packaging and Stationary Contribution to Group revenue Packaging Stationary Publishing, printing and 46% distribution Segment performance 54% Packaging and stationary 30 June 2022 30 June 2021 %▲ Revenue 2 772 2 296 21% EBITDA 423 275 53% Profit from Operations 321 176 83% •
Slide 22: Packaging and stationary
Packaging and stationary Packaging Stationary Good results driven by organic growth, and new product Successful margin extraction lines in • flexible packaging business Reduction of offtake by larger customers offset by an • folding carton operations (QSR, Bag in box) increase in small customer offt
Slide 23: Strategy
Strategy 23
Slide 24: Strategy
Strategy Well positioned to expand packaging business and maximise returns from traditional publishing and printing business Become a key player in South Africa’s Maximise value from publishing, Capital allocation and value creation packaging market printing and distribution business Invest and grow
Slide 25: Growth focus on packaging sector
Growth focus on packaging sector Successful delivery of the expansion of Caxton’s packaging business through acquisition, investment and product development in growth markets 2020 2021 2022 Revenue 39.6% 44.0% 46.4% 56.0% 53.6% 60.4% (excludes dividends received from Mpact) Packaging and stationary
Slide 26: Execution of Caxton's strategy for FY2023
Execution of Caxton’s strategy for FY2023 Invest and grow in the packaging segment through acquisitions and disposal of other assets Acquisition of AMCOR for around R90 million Disposal of 50.01% stake in Private Property for R150 million • Assets were acquired for a good price • Disposal of low gro
Slide 27: Investment in Mpact
Investment in Mpact Caxton’s investment in Mpact Rationale Aligned with the strategy to grow in packaging and board sector Paper and plastics packaging manufacturer business in Southern Africa It is also a recycler of recovered paper and plastic Mpact is recognised as having good upstream assets and
Slide 28: Investment in Mpact
Investment in Mpact Impact of Mpact on Caxton HEPS – FY22 (cents) 250.0 • Caxton’s current HEPS for FY22 is 157 cents per share 38,70% 217.8 26,90% 199.2 • It includes dividends received from Mpact of R24.9 million 200.0 157.0 • Mpact accounted as investment as Caxton has no control over it 150.0 Ce
Slide 29: Outlook
Outlook 29
Slide 30: Operational outlook
Operational outlook Operating environment Current demand remain strong ESG market growth opportunities Increased momentum in movement from Rising inflationary environment Customer demand remain strong plastic packaging to paper and board • Demand remains strong especially in alternatives • Rising in
Slide 31: Environmental concerns creating growth in paper and board packaging
Environmental concerns are creating significant growth opportunities in paper and board packaging which CTP is capitalising on 31
Slide 32: Questions
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Slide 33: End
End 33
Caxton and CTP Publishers and Printers — FY2022 Earnings Presentation on 6ix