Zeder Investments Limited · JSE:ZED
Zeder Investments — Shareholder Meeting (June 2015)
21 slides from Zeder Investments's shareholder meeting presentation, Jun 19, 2015
Slide 1: Annual General Meeting
Annual General Meeting Presented by: Norman Celliers Chief executive officer 19 June 2015
Slide 2: Slide 2
Slide 3: 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 4: Business Overview
Business Overview … with an expanded active strategy aimed at investing in and growing large businesses. Before 2012 Since 2012 Industry: • Agribusiness • Agribusiness Sub-sector: • Food and Beverages • Food and Beverages Geography: • South Africa (Direct) • South Africa (Direct) • Rest of World (vi
Slide 5: Full Year Results
Full Year Results Zeder’s strong growth in SOTP has continued with a 91% increase on a per-share-basis over the past 16 months. R 12.00 Sum-of-the-parts R 10.00 (R/share) R 8.00 R 6.00 R 10.04 R 4.00 R 5.26 R 2.00 R 4.35 R 3.48 R 2.74 R 2.11 R 0.00 2010 2011 2012 2013 2014 * 2015 ** * Restated ** As
Slide 6: Full Year Results
Full Year Results Zeder’s share in RHE from portfolio companies increased by 23% during FY2015 as investee companies delivered strong results. Recurring headline earnings from portfolio companies (cents per share) 50 45 40 35 30 25 46.1 20 37.4 32.4 33.1 34.0 15 10 5 0 2011 2012 2013 2014 2015
Slide 7: Full Year Results
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 AVB 48,5% 51,5% Zeder Agri Voedsel 100% 30,9% (26,5%) Agri Voedsel Pioneer Foods 30,9% (26,
Slide 8: Full Year Results
Full Year Results … and this, combined with the strong performance of Pioneer, contributed to an increase of R9,3b in SOTP value since 28 Feb 2014. R’m • 6 Core investments • Strong strategic influence • Portfolio value of R14,5b • Pioneer ~ 75% of SOTP As reported for 28 Feb 2014 As adjusted for 3
Slide 9: Portfolio review
Portfolio review Pioneer continues to deliver strong results and reported an increase of 37% in Adjusted FY Headline Earnings… Adjusted Headline Earnings Per Share (Rand) 8.00 7.00 6.78 6.00 5.00 4.56 4.07 4.06 4.00 3.00 2.00 1.00 0.00 2011 2012 2013 2014 Note: Pioneer’s financial year-end is 30 Sep
Slide 10: Portfolio review
Portfolio review … and 39% for the interim results - the trend in operational margin improvement has to be commended. Thank you to Phil Roux (CEO), Leon Cronje, Felix Lombard, Tertius Carstens and entire senior team
Slide 11: Portfolio review
Portfolio review Capespan is growing as an organisation with significant strategic alignment underway. 2009 2010 2011 2012 2013* 2014 Revenue (R’m) 2 637 2 681 2 759 5 232 7 149 7 392 Recurring headline earnings (R’m) 64 73 64 99 139 159 Recurring headline earnings (c/share) 21 24 21 31 44 49 Zeder
Slide 12: Portfolio review
Portfolio review Capespan has two strong divisions, each with different but complimentary strategies and opportunities. FRUIT LOGISTICS • Improving performance • Realigning port assets • Expanding footprint/markets • Refurbishing Durban/Cape Town • Adding capability in RSA • Growing Mozambique / KM4
Slide 13: Portfolio review
Portfolio review Zaad increased revenues while also investing significantly in new opportunities, both locally and internationally. 2010 2011 2012 2013 2014 2015 Revenue (R’m) 218 241 249 294 465 947 Recurring headline earnings (R’m) 20 26 28 36 54 77 Recurring headline earnings (c/share) 227 292 31
Slide 14: Portfolio review
Portfolio review With a strong product portfolio, proprietary IP and established market presence, growth is underway.
Slide 15: Portfolio review
Portfolio review Kaap Agri continued to deliver strong results supported by non-agri growth. 2009 2010 2011 2012 2013 2014 Revenue (R’m) 2 274 2 450 2 624 4 233 5 530 6 528 Recurring headline earnings (R’m) 98 78 78 103 129 158 Recurring headline earnings (c/share) 132 105 106 148 183 224 Continue t
Slide 16: Portfolio review
Portfolio review With a strong footprint and historical base, opportunities exist to continue growing.
Slide 17: Portfolio review
Portfolio review Agrivision Africa remains in J-curve but has increased revenues and continues with growth 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) n/a Successfully completed strategic equity participation of $3
Slide 18: Portfolio review
Portfolio review Farm expansions have 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 19: Portfolio review
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 Recurring headline (loss)/earnings (R’m) (80) 26 n/a Very strong interim results released – R62m headline earnings Note: Quantum Foods’ financial
Slide 20: Portfolio review
Portfolio review Quantum Foods aims to be the leading feed and animal protein business in Africa.
Slide 21: Conclusion
Conclusion We remain optimistic about the prospects of the group. • Strong existing portfolio and management teams • Internal focus offers additional opportunities • Platform growth and adjacency expansion attractive • Strategic investment and diversification when appropriate Thank you