Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — FY2015 Earnings Presentation
45 slides from Calgro M3's earnings presentation, Feb 28, 2015
Slide 1: Group Results For The Financial Year Ended 28 February 2015
Group Results For The Financial Year Ended 28 February 2015
Slide 2: Agenda
Agenda Business Financial Significant Group Model Review Achievements Prospects two one four three
Slide 3: Business Model
4 Business Model NS oO Cc [e) CALGRO M3 NG
Slide 4: Housing Segments & Product Definition
Housing Segments & Product Definition Mid to High Income Housing Segment targets R620 001 up to R3 000 000+ Income earners R20 000+ Affordable Housing Segment targets Up to R620 000 income earners R15 001+ GAP & FLISP Housing Segment targets Up to R450 000 - subject to change income earners up to R1
Slide 5: Business Model
Business Model The Company’s business model remained unchanged: Minimum of 80% exposure to integrated or low income development projects; Maximum of 20% exposure to Mid-to-high income segment; Principle of landowner developer to be retained with Land Availability Agreements where available on
Slide 6: Business Model
Business Model Secure land Land ownership enables control of the development process & choice of partners. Township establishment , In-house town planning and Identify project architecture. & Due diligence Control development timelines. Determine target market, environmental studies, funding require
Slide 7: Strategic Priorities
Strategic Priorities Strategic priorities: • Ensure we remain focused on being the developer of choice in select markets; • Improve the Group’s BBBEE rating; • Develop mutually beneficial relationships with all stakeholders; • Reduce and contain the environmental impact of our operations; and • SIMS
Slide 8: Strategy
Strategy The short/medium-term strategy is to cater for growth. • The short-term focus will be on the implementation of secured projects rather than securing new projects. • Marketing capacity increased to keep pace with the Groups ability to deliver serviced stands; • Internal construction capacity
Slide 9: Strategy
Strategy The Long-term Calgro M3 strategy is to remain committed to: • Establish Calgro M3 as the preferred partner to private and public sector with regards to integrated developments; • Assist Government in the improvement of service delivery and the eradicating the housing backlog; • Establish Ca
Slide 10: National Footprint
National Footprint Namibia Otjomuise 2523 units ) Windhoek Scottsdene 2.885 units Maitland 136 units Kwa Nobuhle Fleurhof 16 000 units 10.221 units Jabulani CBD 3870 units La Vie Nouvelle 292 units Brandwag 1.051 units Jabulani Hostels 663 units Building legacies » Changing lives CALGRO M3 HOLDINGS
Slide 11: Typical Calgro M3 Integrated Development
Typical Calgro M3 Integrated Development Fleurhof Integrated Development, Johannesburg, Gauteng 11
Slide 12: Typical Calgro M3 Integrated Development
Typical Calgro M3 Integrated Development Fleurhof Integrated Development, Johannesburg, Gauteng 12
Slide 13: Typical Calgro M3 Integrated Development
Typical Calgro M3 Integrated Development Fleurhof Integrated Development, Johannesburg, Gauteng 13
Slide 14: Typical Calgro M3 Integrated Development
Typical Calgro M3 Integrated Development Fleurhof Integrated Development, Johannesburg, Gauteng 14
Slide 15: Typical Calgro M3 Integrated Development
Typical Calgro M3 Integrated Development Fleurhof Integrated Development, Johannesburg, Gauteng 15
Slide 16: Typical Calgro M3 Integrated Development
Typical Calgro M3 Integrated Development Jabulani CBD Development Fleurhof Development 16
Slide 17: Typical Calgro M3 Integrated Development
Typical Calgro M3 Integrated Development Summerset CBD Development Scottsdene Development 17
Slide 18: Typical Calgro M3 Integrated Development
Typical Calgro M3 Integrated Development Scottsdene Integrated Development, Cape Town, Western Cape 18
Slide 19: Typical Calgro M3 Affordable Housing Development
Typical Calgro M3 Affordable Housing Development Summerset Development, Midrand, Gauteng 19
Slide 20: Retirement & Lifestyle Estate Development
Retirement & Lifestyle Estate Development La Vie Nouvelle Retirement & Lifestyle Estate, Broadacres, Gauteng 20
Slide 21: Typical Integrated Development
Typical Integrated Development La Vie Nouvelle Retirement & Lifestyle Estate, Broadacres, Gauteng 21
Slide 22: Financial Review
Financial Review For The Twelve Months Ended 28 February 2014 Financial Review Two
Slide 23: Salient Indicators
Salient Indicators Highlights Key Ratios Cash flow and Debt • Group • GP Profit • Cash ↑ to Revenue ↑ Margin ↑ to 130 Million 18.8% to 18.76% after capital R932 Million • Basic and investment of • Revenue Diluted EPS ↑ R 174 million including JV’s 37.87% to R 1,661 billion 114.65 cents • Net Debt ↑
Slide 24: Cash Flow Cycle
Identify land / projects Construction of top structures Cost R50m+ (depending on phase size] Time: 3 to 18 months Transfer to end user (sectional Title] Cost: not material Time: 1 month Due diligence Cost: RO to R2m Time: 1 to 6 months Transfer to end user (full title) Cost: Not material Time: 1 mon
Slide 25: Capital Expenditure
Capital Expenditure Capital investments in Nasrec Memorial Park new projects: i R50.05 million Capital invested in current projects to ; 4 Summerset ensure sustainable ‘ ae ry R49.79 million growth or fast-tracking: en : South nfllls Belhar . 4 Witpoortjie R18.2 million R26.36 million oN ODS R29.98
Slide 26: Financial Summary
Financial Summary February 2015 February 2014 All Figures In R’000 Unless Stated 2015 vs. 2014 (Audited) (Audited) Revenue ↑ 18.76% 932 205 784 943 Gross Profit ↑54.77% 174 871 112 989 Net Profit ↑37.86% 145 716 105 695 Headline Earnings – Cents ↑31.90% 109.69 83.16 Fully diluted Headline earnings –
Slide 27: Statement of Financial Position - Extract
Statement of Financial Position - Extract February 2015 February 2014 (Audited) (Audited) Non Current assets 291 861 202 720 Intangible assets 40 971 32 986 Investments in JV’s 229 568 142 740 Current assets 1 038 604 894 817 Inventories 498 089 385 826 Construction Contracts 198 211 179 487 Trade a
Slide 28: Statement of Financial Position - Extract
Statement of Financial Position - Extract February 2015 February 2014 (Audited) (Audited) Equity 578 682 433 053 Non-current Liabilities 37 952 37 128 Deferred tax 37 952 37 128 Current Liabilities 713 831 627 356 Borrowings 492 132 470 929 Trade and other payables 221 638 156 057 Total Equity and L
Slide 29: Statement of Cash Flow
Statement of Cash Flow February 2015 February 2014 (Audited) (Audited) Cash Generated From Operations 148 294 (252 755) Finance costs – (net) (48 737) (34 014) Tax paid (20 381) (5 183) Net cash (utilised in) / generated from operating activities 79 177 (291 953) PPE and Intangible assets – (net) (6
Slide 30: Change in Borrowings
Change in Borrowings Increases: Bond Exchange 113 000 000 JIBAR Linked Decreases: Bond Exchange (92 500 000) JIBAR Linked RMB (5 725 514) Bond Exchange AMRT (702 503) (Accounting Entry) Total Net Debt Raised 14 071 983 Please Note CGR 18 was raised on the 5th of May to the value of R30 Million which
Slide 31: Key Graphs
= ail Key Graphs wi Gross Profit Percentage —~. ra ———__ 2010 2011 2012 2013 2014 2015 Interest Cover a —_—— ——~Sw™_ a NN — ZZ ST 2010 2011 2012 2013 2014 2015 Building legacies » Changing lives CALGRO M3 HOLDINGS
Slide 32: Key Graphs (continued)
Key Graphs (continued) Net Debt Equity Ratio 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2015 2014 2013 2012 32
Slide 33: Company Structure
Calgro M3 Holdings Limited 2005/027663/06 Calgro M3 Developments Ltd Calgro M3 Land (Pty) Ltd 1996/017246/06 2005/027072/07 ] (M3 Randpark Hightrade-Invest Business Veture Ridge Ext 120 (Pty) Lta 60 (Pty) Ltd Investment No (Pty) Ltd 2004/01469/07 2005/027489/07 ‘1221 (Pty) Ltd 2005/018284/07 2007/02
Slide 34: Significant Achievements
Significant Achievements three
Slide 35: Significant Achievements
Significant Achievements The installation of infrastructure for the Commenced construction on the first phase of Witpoortjie project continued during the the Otjomuise project in Windhoek, Namibia. period under review. The Fleurhof project was awarded the Best Infrastructure for the third phase of t
Slide 36: Significant Achievements - Awards
Significant Achievements - Awards
Slide 37: Group Prospects
Group " Prospects SS — =] L Sr" CALGRO M3 HOLDINGS
Slide 38: Project Pipeline
Project Pipeline bsidised GAP, BNG FLISP & maining (Free Rental revenue standing Housing to project & semi- (Multi- Affordable detached storey) Housing Fleurhof - Extension 2 10221 3186 - 1431 3480 2124 - 2236 Jabulani CBD - Soweto (Parcels A, B, C & D) - Only balane 2460 - - 300 2160 - - 402 Jabula
Slide 39: Project Pipeline Exposure
Project Pipeline Exposure Mid-to-high Affordable Housing GAP, FLISP & Rental Housing Social Housing RDP/BNG Housing
Slide 40: Memorial Parks
Memorial Parks
Slide 41: Calgro M3 Private Memorial Parks
Calgro M3 Private Memorial Parks Nasrec Private Memorial Park, Johannesburg, Gauteng 41
Slide 42: Calgro M3 Private Memorial Parks
Calgro M3 Private Memorial Parks Nasrec Private Memorial Park, Johannesburg, Gauteng 42
Slide 43: Challenges and Risks
Challenges and Risks Critical Risks: Retention of staff; Cash flow / liquidity; Uncontrollable growth; Capacity; Bee non-compliance; Reputational damage due to sub standard work; 43
Slide 44: For more information, please contact:
For more information, please contact: Ben Pierre Malherbe E-mail: benpierre@calgrom3.com Wikus Lategan E-mail: wikus@calgrom3.com Derek Steyn E-mail: derek@calgrom3.com Tel: +27 11 300 7500 www.calgrom3.com 44
Slide 45: 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