Zeder Investments Limited · JSE:ZED
Zeder Investments — Shareholder Meeting (June 2013)
31 slides from Zeder Investments's shareholder meeting presentation, Jun 21, 2013
Slide 1: Annual General Meeting
Annual General Meeting Presented by: Jannie Mouton Chairman 21 June 2013
Slide 2: General matters
General matters • To accept the presentation of the audited annual financial statements for the year ended 28 February 2013
Slide 3: Ordinary resolutions
Ordinary resolutions • To re-elect the following directors: – Resolution 1: Jannie Mouton – Resolution 2: Michiel le Roux – Resolution 3: Norman Celliers – Resolution 4: Antonie Jacobs 3
Slide 4: Ordinary resolutions
Ordinary resolutions • To re-appoint the following members to the audit and risk committee: – Resolution 5: Michiel le Roux – Resolution 6: George Eksteen – Resolution 7: Lambert Retief 4
Slide 5: Ordinary resolutions
Ordinary resolutions • Resolution 8: To re-appoint PwC as the auditor 5
Slide 6: Ordinary resolutions
Ordinary resolutions • Resolution 9: General authority to issue ordinary shares for cash 6
Slide 7: Special resolutions
Special resolutions • Special resolution 1: Inter-company financing • Special resolution 2: Financial assistance for the acquisition of shares in a related or inter-related company 7
Slide 8: Special resolutions
Special resolutions • Special resolution 3: Share buy-back by Zeder and its subsidiaries • Special resolution 4: Conversion of authorised and issued share capital to shares of no par value 8
Slide 9: Special resolutions
Special resolutions • Special resolution 5: Increase of the authorised ordinary share capital of the company • Special resolution 6: Consequential amendments to the memorandum of incorporation of the company 9
Slide 10: Investor Presentation
Investor Presentation Presented by: Norman Celliers Chief executive officer 21 June 2013
Slide 11: Thank you.
Thank you.
Slide 12: Our business
INTRODUCTION Our business • 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: – Growth sectors or subsectors – Management with proven
Slide 13: Expanded strategy
INTRODUCTION Expanded strategy Historically Going forward Industry: • Agribusiness • Agribusiness Sub-sector: • Food and Beverages • Food and Beverages • Bio Fuels • Non-food (i.e. Rubber, timber) Geography: • South Africa (Direct) • South Africa (Direct) • Rest of World (via portfolio) • Sub-Sahara
Slide 14: Summary results FY2013
PERFORMANCE REVIEW Summary results FY2013 2012 2013 Sum of the parts R3,084m R3,903m 26.7% Sum of the parts per share R3.15 R3.99 Recurring headline earnings R273,0m R251,1m 7.9% Recurring headline earnings per share (cents) 27.9 25.7 Headline earnings R299,9m R196,3 34.5% Headline earnings per shar
Slide 15: Growth in portfolio
PERFORMANCE REVIEW Growth in portfolio • Grown from R350m tot R3,9 billion in 6,5 years • Initially acquired many small portions of undervalued shares (low P/E’s) 4,500.00 Other financial instruments 4,000.00 Nett Cash Chayton 3,500.00 Outspan Senwes 3,000.00 Pioneer Tuinroete Agri 2,500.00 BKB OVK
Slide 16: Investments and disposals
PERFORMANCE REVIEW Investments and disposals Investments made during FY13: R538m R’m Investments made since YE: R349m 500 R887m 349 277 250 206 37 17 0 -154 -250 Capespan Chayton ZAAD Kaap Agri AVB Other CVH -500 -750 -799 -1,000 Disposals made during FY13: R953m CVH*: R700m profit / IRR = 19.4% ove
Slide 17: Portfolio weighting
PERFORMANCE REVIEW Portfolio weighting R’m 1,475 1,500 1,000 633 500 369 349 343 288 277 224 107 90 54 Net Liabilities 0 Capespan* Cash* Kaap Agri Overberg Suidwes Chayton Agricol Other NWK AVB CVH -301 -500 * Adjusted for transactions since yearend as published
Slide 18: Portfolio interests
PERFORMANCE REVIEW Portfolio interests
Slide 19: Corporate and consumer brand exposure
PERFORMANCE REVIEW Corporate and consumer brand exposure • Strong assets • Leading brands • Good management • Growth potential
Slide 20: Historical overview
PERFORMANCE REVIEW Historical overview Recurring headline earnings SOTP & Share price (Cents per share) TSR = 16.2% (Cents per share) 35 450 399 400 30 340 350 315 25 285 300 274 257 20 260 250 211 262 225 216 15 200 192 187 200 146 150 10 100 5 50 - - 2006 2007 2008 2009 2010 2011 2012 2013 Dividen
Slide 21: Agribusiness focus
MACRO ENVIRONMENT Agribusiness focus Upstream Midstream Downstream Services and support Food Primary Beverages Secondary Marketing Inputs Processing Distribution Retail production production and sales Bio Fuels Timber, Textiles, Leather, Rubber, Etc Services and support
Slide 22: Growth themes
MACRO ENVIRONMENT Growth themes
Slide 23: African population growth
MACRO ENVIRONMENT African population growth 2000 2050 23
Slide 24: African demand
MACRO ENVIRONMENT African demand Source: FOA, World Bank, United Nations
Slide 25: Agri-productivity
MACRO ENVIRONMENT Agri-productivity • Inputs • Mechanisation • Irrigation • Finance • Technology • Management 25
Slide 26: Portfolio review R1,475m
PORTFOLIO REVIEW R1,475m Salient features: • Earnings under pressure – high commodity cycle • Influence ~ 30% • Significant capacity for recovery and growth • Turnover = R18,6b • Phil Roux started on 1 April 2013 (supported by strong team) • Adjusted HE = R767m • Sideways for 12 months before resumi
Slide 27: Portfolio review R633m
PORTFOLIO REVIEW R633m Salient features: • Underlying performance encouraging • Influence = 71.2% • Presents both challenges and opportunities • Turnover = R5.2b • Increased interest from 37.3% to 71.2% since YE • Adjusted HE = R87m • Johan Dique and team implementing new strategy • Leading fruit ex
Slide 28: Portfolio review R343m
PORTFOLIO REVIEW R343m Salient features: • Underlying performance strong • Influence = 57% • Zeder made voluntary offer to minorities • Turnover = R3.2b • Zeder increased interest to >35% since YE • Adjusted HE = R103m • Sean Walsh and team driving strategy • Agri retail and related trade company DP
Slide 29: ZAAD Holdings R368m
PORTFOLIO REVIEW ZAAD Holdings R368m Salient features: • ZAAD created as holding company for seed investments • Increased interest in Agricol from 25% to 92% • Influence = 92% • Acquired 49% of Klein Karoo Saad Bemarking • Turnover = R610m • Antonie Jacobs and team driving clear growth strategy - KK
Slide 30: Portfolio review R276m: Irrigated hectares
PORTFOLIO REVIEW R276m Salient features: • Acquired 73.4% during 2012 / Partnership with Norfund • Holding company for grain • Start-up company in rapid development phase related production operations in Sub Saharan Africa • Initial results within expectations • Currently invested in two • Current f
Slide 31: Conclusion: Appreciation
CONCLUSION Appreciation • Management teams/directors at portfolio companies • Zeder directors and team • PSG Group • Shareholders • Stakeholders / Professional partners