Zeder Investments Limited · JSE:ZED
Zeder Investments — FY2024 Earnings Presentation
19 slides from Zeder Investments's earnings presentation, Apr 24, 2024
Slide 1: Full Year Results for the year ended 29 February 2024
FULL YEAR RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2024 PRESENTED BY: JOHANN LE ROUX DATE: 24 APRIL 2024 1
Slide 2: Agenda
AGENDA • Noteworthy transaction • Financial results • Portfolio review • Strategy • Questions – email to cosec@zeder.co.za 2
Slide 3: Noteworthy Transaction
NOTEWORTHY TRANSACTION • Disposal of investment in Capespan (excluding Pome Investments) Disposal of Key transaction Remaining Pome Further Special Capespan (ex Pome) terms Division Dividends • Zeder, with minorities, • Restructuring of the • Zeder and minorities • Further special dividend signed sa
Slide 4: Financial Results
FINANCIAL RESULTS • Business and operating environment • Sum-of-the-parts 4
Slide 5: Business and Operating Environment
FINANCIAL RESULTS BUSINESS AND OPERATING ENVIRONMENT ❑ Index lowest since Q2 2020 at the height of the pandemic ❑ Q1 2024 reading is below the neutral 50- point mark ❑ This year has been very difficult for agribusinesses and affected certain sectors more than others ❑ Sentiment emanates from mostly
Slide 6: Business and Operating Environment
FINANCIAL RESULTS BUSINESS AND OPERATING ENVIRONMENT Unexpected sharp decrease in chemical raw materials over short period of time. Chemical companies dependent on imported raw materials from China/India have to mitigate the risks of not having inventory against supply chain risk considerations. Sig
Slide 7: Business and Operating Environment
FINANCIAL RESULTS 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. Zaad has been approached by parties and is considering proposals in terms of operations in c
Slide 8: Business and Operating Environment
FINANCIAL RESULTS BUSINESS AND OPERATING ENVIRONMENT El Niño predictions changed throughout the summer season, making planting decisions difficult for farmers. Normally the El Niño weather pattern leads to more hectares of sunflower being planted. December rains changed the El Niño prediction and as
Slide 9: Sum-of-the-Parts FY2024
FINANCIAL RESULTS SUM-OF-THE-PARTS FY2024 SOTP value per share to 29 February 2024 decreased, mainly as a result of the disposal of Capespan (excluding Pome Investments) and resultant special dividends of 15c per share paid during the year. Further special dividend of 20c per share paid subsequent t
Slide 10: Portfolio Review
PORTFOLIO REVIEW INVESTMENTS LIMITED
Slide 11: 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. 11
Slide 12: Zaad Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS On a last twelve-month (LTM) basis, Zaad reported a decrease of 18% in recurring earnings to R180m. Decrease in recurring earnings compared to EBITDA as a result of increased interest rates and therefore higher finance charges as well as tax rate adjustments having
Slide 13: Zaad Valuation and General Comments
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in Zaad has remained fairly consistent with a marginal 2% decrease to R2.342bn from the prior year reported results, based on the LTM results. GENERAL COMMENTS • Good results from Agricol, impact of lower sunflower hectares • EA Se
Slide 14: Pome Investments holding company of pome farming assets
Pome Investments is the holding Company that owns the 3 primary agricultural pome farming assets of Capespan Agri and the Novo packhouse. 14
Slide 15: Pome Investments Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS Despite challenging conditions in the global fresh fruit industry, Pome Investments reported record earnings with an increase of 23% in recurring earnings for the year ended 31 December 2023 to recurring headline earnings of R52m. Dec 22 Dec 23 Summarised Income St
Slide 16: Pome Investments Valuation and General Comments
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in Pome Investments has increased by 9% to R585m from the prior year, despite the decrease in Zeder’s effective interest. GENERAL COMMENTS • Favourable agricultural conditions on own farms • Western Cape experienced volatile summer
Slide 17: Strategy
STRATEGY INVESTMENTS LIMITED
Slide 18: Strategy
STRATEGY • Zeder’s objective remains to maximise shareholder wealth • How did we do during 2023/2024? ─ Dividends to shareholders ─ Special dividends of R539m or 35c per share paid since 28 Feb 2023 ─ Further special dividend of R154m or 10c per share as part of year end results ─ Corporate actions
Slide 19: Thank you
Awaiting image… Thank you PHYSICAL ADDRESS POSTAL ADDRESS 2ND 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