Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — H1 2013 Earnings Presentation
30 slides from Calgro M3's earnings presentation, October 2012
Slide 1: Un-audited Group Results for half year ended 31 August 2012
Slide 2: Agenda
Agenda 1 2 3 4 Calgro Financial Project Pipeline Business Review Update
Slide 3: Calgro Business
Jukskei View Calgro Business 01
Slide 4: Business Model
Business Model Identify project Due diligence – Top-structure market research, construction viability studies, etc Acquire land, Transfers to end- development users, etc funding, etc Infrastructure (bulk Township & link, internal) Establishment Marketing & Sales
Slide 5: Overview – Products and Market Definition
Overview – Products and Market Definition 5% exposure, R501 000 up to (20% maximum) R1 800 000+ Full- and sectional title Up to R 500 000 Integrated developments 95% exposure, Up to R300 000 (80% minimum) Subsidy of the day
Slide 6: Calgro M3's Business Model
Calgro M3’s Business Model The company’s business model remained unchanged: o Principle of landowner developer retained with LAA (Land Availability) where available on our terms; o Maxim shareholding will be retained in projects while taking associated risks into account; o Marketing responsibility
Slide 7: Geographic Footprint – National
Geographic Footprint – National Brandwag Social Housing Development – Fleurhof Integrated 1,051 units Development – 9,602 units Vista Park Ext 3 Jabulani CBD Integrated Development – 4,199 Development – units 3,600+ units Jabulani Hostel Leo Mews Res 3 Development 500 units Development – 90 units Ho
Slide 8: Unit Typology – Integrated/Mixed-Use Development
Unit Typology – Integrated/Mixed-Use Development RDP units: Fully subsidized (give-away) RDP units: Fully subsidized (give-away) – CRU units: Subsidized rental – City – freestanding & semi-detached multi-storey walk-up’s owned Social housing units: Subsidized rental – GAP units: Open market / bonded
Slide 9: Integrated Development – Fleurhof
Integrated Development – Fleurhof Crèche under Infrastructure construction completed Infrastructure Open-market in progress GAP (multi- storey) Freestanding affordable housing Freestanding affordable RDP housing housing (multi-storey) Open-market Social rental (multi- Housing- storey) subsidized ren
Slide 10: Financial Review of 6 months ended August 12
Jabulani CBD Financial Review of 6 months ended August 02 2012
Slide 11: Financial Summary Overview
Financial Summary Overview F2012 vs. F2012 – August F2011 – August F2012 – February F2011 Un-Audited Un-Audited Audited Revenue + 92 % 400 669 208 987 514 913 Operating profit + 153 % 42 519 17 189 79 514 Gross Profit 1.54% 17.04 % 16.78 % 15.44 % Headline Earnings - Rand + 86 % 40 196 21 650 65 380
Slide 12: Income Statement
Income Statement F2012 – August F2011 – August Un-Audited Un-Audited Revenue 400 669 208 987 from continuing operations Operating profit & margin % Incl. fair value adjustments – No Fair 42 519 17 189 value adjustments in current year 10.72% 8.13% Profit before interest & taxation 54 953 26 579 Fina
Slide 13: Cash Flow
Cash Flow F2012 - August F2011 - August Un-Audited Un-Audited Operating Cash 44 108 19 068 Working capital changes 346 (414) Cash generated / (utilised) from operations 44 454 18 654 Finance (costs)/income – (net) (7 790) (7 741) Tax paid (10 257) (2 274) Net cash generated / (utilised) from operati
Slide 14: Cash Flow
Cash Flow F2012 - August F2011 – August Un-Audited Un-Audited Operating Cash 44 108 19 068 Working capital changes 346 (414) Trade and other payables 8 528 32 526 Trade and other receivables (14 985) (5 049) Contracts in progress 18 974 (28 624) Inventories (12 171) 733 Total Change 346 (414) Workin
Slide 15: Key Financial Ratios
Key Financial Ratios F2012 – F2012 - Aug Feb Targets Un-Audited Audited Group Equity 276 251 236 054 Interest bearing debt 269 944 226 818 Cash and cash equivalents 152 996 103 691 Net interest bearing debt 116 948 123 127 Net gearing – net debt to equity ratio % 42.33 % 52.16 % Interest Cover 6.01
Slide 16: Company Structure
Company Structure Calgro M3 Holdings Limited 2005/027663/06 Calgro M3 Calgro M3 Land (Pty) Calgro M3 Project Developments (Pty) Ltd Management (Pty) Ltd Ltd 2005/027072/07 2007/030313/07 1996/017246/07 Hightrade-Invest 60 (Pty) Tres Jolie Ext 24 (Pty) Ltd Ltd CM3 Randpark Ridge Ext 2007/019498/07 MS
Slide 17: Change in Borrowings
Change in Borrowings Increases: Yield X Nedbank 56 000 000 J Bar linked RMB 636 588 Prime linked 56 363 588 Decreases: Nedbank (12 221 371) NHFC (485 687) (12 707 058) Net change 43 656 530 Total debt settled 43 656 530
Slide 18: Pipeline and Project Update
Fleurhof Pipeline and Project Update 03
Slide 19: Project Progress Update
Project Progress Update • Mid to High Segment of the Market: • Again little to no contribution to revenue; • Commence infrastructure on Broadacres (La Vie Nouvelle); • Marketing capacity increased for Broadacres; and • Balance of projects still “land banked” • Affordable Housing Segment: • Jukskei V
Slide 20: Project Progress Update
Project Progress Update • Jabulani CBD: • First 115 transfers to open market registered; • Dilluculo units transferred; • R16 mil of construction creditors to be moved to a loan, as per agreement with IHS; • 1211 units under construction and completed; • Availability of electricity a concern, Feasib
Slide 21: Project Progress Update
Project Progress Update • Scottsdene: • Installation of infrastructure on schedule; • Construction of top structures for BNG / RDP and CRU units commenced; • Bulk sale to Social Housing Institute finalised; and • Marketing of open market units commenced. • Elsies Rivier: • Construction completed; an
Slide 22: Group Prospects
Scottsdene Group Prospects 04
Slide 23: Pipeline: Integrated & Low Income Residential
Pipeline: Integrated & Low Income Residential No of units Total no of under GAP, FLISP & Total estimated Project units in RDP/BNG Social Affordable construction / Rental project revenue project Housing Housing Housing completed Housing Fleurhof (Jhb) 9602 1400 2822 1459 3405 1916 R 2 680 000 000 Jab
Slide 24: Pipeline: Integrated & Low Income Residential
Pipeline: Integrated & Low Income Residential No of units Typology mix Total no of under GAP, FLISP & Total estimated Project units in RDP/BNG Social Affordable construction / Rental project revenue project Housing Housing Housing completed Housing Scottsdene - Cape 2919 0 550 1340 784 245 R 855 000
Slide 25: Pipeline: Mid to High Income Residential
Pipeline: Mid to High Income Residential No of Project name Township Status of project Type of project Revenue units Town planning Broadacres Ext 36, Retirement and La Vie Nouvelle completed. Marketing to 394 R499,000,000 Fourways Lifestyle Estate commence Witkoppen Ext 142, Town planning 32-On-Pine
Slide 26: Pipeline by Market Segment
Pipeline by Market Segment 3% RDP/BNG Housing 20% 21% Social Housing 26% GAP, FLISP & Rental Housing 33% Affordable Housing Mid to High Existing Projects – % Exposure In Different Market Segments
Slide 27: Challenges/Risk And The Way Forward
Challenges/Risk And The Way Forward Remaining Risks Uncontrollable growth – This risk will remain coming back, as the group growth to full force Reputational damage due to sub standard work – This risk is still very much managed, with our hands on approach and site management structure, but things c
Slide 28: Questions & Answers
el CALGRO M3 Questions & Answers
Slide 29: For more information please contact
For more information please contact: Ben Pierre Malherbe Chief Executive Officer Telephone: +27 11 300 7500 Email: benpierre@calgrom3.com Wikus Lategan Chief Financial Officer Telephone: +27 11 300 7500 Email: wikus@calgrom3.com www.calgrom3.com
Slide 30: Disclaimer
Disclaimer Calgro 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 wor