Zeder Investments Limited · JSE:ZED
Zeder Investments — FY2015 Earnings Presentation
25 slides from Zeder Investments's earnings presentation, Apr 15, 2015
Slide 1: Full year results FY2015
Full year results FY2015 Presented by: Norman Celliers Chief executive officer April 2015
Slide 2: Slide 2
Slide 3: Agenda
Agenda • Business overview • Full year results • Portfolio review
Slide 4: Business Overview
Business Overview Our corporate strategy and business definition remains unchanged… • Long term value investor with a primary focus on Agribusiness, specifically the food and beverage sectors • Listed on the JSE – ZED - hybrid private equity vehicle • Key characteristics of investment considerations
Slide 5: Business Overview: focus on agribusiness value chain
Business Overview … and we remain focused on the broad AGRIBUSINESS industry with a specific focus on the food and beverage sub-sectors… Upstream Midstream Downstream Services and support Primary Secondary Marketing Inputs Processing Distribution Retail production production and sales Services and s
Slide 6: Business Overview: expanded active strategy
Business Overview … with an expanded active strategy aimed at investing and growing large businesses. Historically Today Industry: • Agribusiness • Agribusiness Sub-sector: • Food and Beverages • Food and Beverages • Bio Fuels • Non-food (i.e. Rubber, timber) Geography: • South Africa (Direct) • Sou
Slide 7: Agenda
Agenda • Business overview • Full year results • Portfolio review
Slide 8: Full Year Results: Executive Summary
Full Year Results Executive Summary 28 Feb 28 Feb Y-o-Y 31 Mar 2014 2015 Change 2015 Sum of the parts value R5,2b R13,3b +157,5% R14,1b Recurring headline earnings R300m R414m +38,5% Shares in issue 980m 1 444m +47,3% 1 444m Sum of the parts value per share R5.26 R9.18 +74,5% R9.75
Slide 9: Underlying portfolio value reached R14,1b
Full Year Results The value of the underlying portfolio reached R14,1b on 31 March 2015. 28-Feb-14 31-Mar-15 Company % interest Rm % interest Rm Pioneer 1.1% 164 27.3% 10 360 Capespan 72.1% 777 71.1% 1 463 Zaad 92.0% 679 92.0% 885 Kaap Agri 37.9% 528 37.9% 629 Agrivision 76.7% 560 76.5% 563 Quantum
Slide 10: Acquisition of additional 13% in Pioneer
Full Year Results Zeder successfully acquired an additional 13% in Pioneer through a transaction valued at R3,35b… Existing Zeder Other existing AVB shareholders shareholders Other existing 67,9% 32,1% Zeder AVL 48,5% 51,5% Zeder Agri Voedsel 100% 30,9% (26,5%) Agri Voedsel Pioneer Foods 30,9% (26,5
Slide 11: Increase in SOTP value
Full Year Results … this, combined with the strong performance of Pioneer, was the main contributor of the R8,9b increase in SOTP value… R’m As reported for 28 Feb 2014 As adjusted for 31 March 2015
Slide 12: Pioneer share of portfolio value
Full Year Results … resulting in Pioneer now representing 71.1% of the portfolio value.
Slide 13: Agenda
Agenda • Business overview • Full year results • Portfolio review
Slide 14: Pioneer delivered strong results
Portfolio review Pioneer delivered strong results for the year ended 30 September 2014 and remains a strategic investment. For detailed information visit www.pioneerfoods.co.za
Slide 15: Execution focused around clear vision and strategy
Portfolio review Execution is focused around a clear vision and strategy that should deliver sustainable results.
Slide 16: Capespan reported increase in RHE
Portfolio review After an upward restatement of its 2013 figures, Capespan reported an increase in RHE of 14.3%. 2013 2014 (%) Revenue (R’m) 7 149 7 392 3.4 Operating profit (R’m) 191 169 (11.4) Recurring headline earnings (R’m) 139 159 14.3
Slide 17: Capespan on track to deliver growth targets
Portfolio review Despite tough challenges for fruit division, the group remains on track to deliver on growth targets. EBIT (R’m) -10% +22% 2013 2014 2013 2014 • Rationalising exporting operations • Cape Town remains constrained but options emerging • Positive farming performance • Successfully expa
Slide 18: Zaad doubled revenues
Portfolio review Zaad doubled revenues while also investing significantly in new opportunities, both locally and internationally. 2014 2015 (%) Revenue (R’m) 465 947 104 Operating profit (R’m) 74 121 63 Recurring headline earnings (R’m) 54 77 42 Note: on a per share basis RHEPS increased by 9%
Slide 19: Zaad growth underway
Portfolio review With a strong product portfolio, proprietary IP and established market presence, growth is underway. Invest, expand and grow in South Africa, Africa, Europe and Middle East
Slide 20: Kaap Agri continued strong results
Portfolio review Kaap Agri continued to deliver strong results supported by non-agri growth. 2013 2014 (%) Revenue (R’m) 4 009 4 875 21.6 Operating profit (R’m) 202 243 20.2 Recurring headline earnings (R’m) 129 158 22.6
Slide 21: Kaap Agri opportunities to continue growing
Portfolio review With a strong footprint and historical base, opportunities exist to continue growing. Continue to invest and expand in Core-Agri offering while simultaneously investing in higher growth adjacencies
Slide 22: Agrivision Africa increased revenues
Portfolio review Agrivision Africa has increased revenues but remains in the loss-making J-curve phase. 2013 2014 (%) Revenue (R’m) 138 353 156 Operating (loss)/profit (R’m) (2.4) 5.1 n/a Recurring headline loss (R’m) (10.9) (11.7) (7.3)
Slide 23: Agrivision farm expansions and downstream investments
Portfolio review Farm expansions has continued while major investments were made down stream in Zambia. Farming & Development Milling & Processing Brands & Distribution • 4,500 ha (irrigated) • 50,000 tons (Maize) • Formal retail • 1,800 ha (dry-land) • 24,000 tons (Wheat) • Distribution depots
Slide 24: Quantum delivered improved results
Portfolio review Following a period of extreme challenges in the industry, Quantum delivered improved results. 2013 2014 (%) Revenue (R’bn) 3.5 3.6 3.1 Operating loss (R’m) (252) (21) n/a Recurring headline (loss)/earnings (R’m) (80) 26 n/a Note: Recent trading update estimates 1st half profit at
Slide 25: Quantum Foods aims to lead in feed and animal protein
Portfolio review Quantum Foods aims to be the leading feed and animal protein business in Africa.