Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — H1 2015 Earnings Presentation
40 slides from Calgro M3's earnings presentation, October 2014
Slide 1: Group Results For The Six Month Period Ending 31 August 2014
Group Results For The Six Month Period Ending 31 August 2014
Slide 2: Agenda
Agenda Business Financial Significant Group one Model Review Achievements Prospects four two three
Slide 3: Business Model
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Slide 4: Business Model
Business Model ey) SS — Poo q) f 15 ra = P= — _ a Land ownership Town planning and enables control of the architecture is done CALGRO M3 aac. choice of partners. We control the ‘timeli TURNKEY APPROACH a tna Installation of roads, Residential units on stormwater, water, serviced stands are sewer and
Slide 5: Integrated Housing Segments & Product Definition
Housing Segments & Product Definition Mid-to-High Income Segment R581 000 up to Income earners R20 000+ R3 000 000+ Affordable Housing Segment Up to R 580 000 Income earners R15 500+ GAP, FLISP& Rental Housing Up to R 450 000 – Segment subject to change Income earners up to R15 000 Integrated Up to
Slide 6: Business Model
Business Model The Company’s business model for the year 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
Slide 7: Strategic Priorities
Strategic Priorities Strategic priorities: Ensure we remain focused on being the residential developer of choice in select markets; Ensure that superior building quality is maintained; Improve the groups BBBEE rating; Create employment opportunities; Continue building solid stakeholder rel
Slide 8: National Footprint
National Footprint Gauteng Fleurhof – 10,199 units South Hills – 5,161 units Windoek, Namibia Jabulani CBD – 3,881 units Otjomuise– 2,523 units Witpoortjie – 2,023 units Summerset – 466 units La Vie Nouvelle – 401 units Western Cape Scottsdene – 2,885 units Freestate Belhar – 3,614 units Brandwag –
Slide 9: Typical Integrated Development
Typical Integrated Development Fleurhof Integrated Development, Johannesburg, Gauteng 9
Slide 10: Typical Integrated Development
Typical Integrated Development Best Social Housing Project of the Year - Govan Mbeki Awards; Best Project of the Year - SAHF Fleurhof Integrated Development, Johannesburg, Gauteng 10
Slide 11: Typical Integrated Development
Typical Integrated Development Fleurhof Integrated Development, Johannesburg, Gauteng 11
Slide 12: Typical Integrated Development
Typical Integrated Development Jabulani CBD Development Fleurhof Development 12
Slide 13: Typical Integrated Development
Typical Integrated Development Jabulani CBD Integrated Development, Johannesburg, Gauteng 13
Slide 14: Typical Social Housing Development
Typical Social Housing Development Brandwag Social Housing Project, Bloemfontein 14
Slide 15: Typical Social Housing Development
Typical Social Housing Development Existing – to be refurbished New Existing – refurbished Brandwag Social Housing Project, Bloemfontein 15
Slide 16: Typical Integrated Development
Typical Integrated Development Attenuation pond Pocket 12 CRU units RDP units Madulammoho, etc RDP units RDP units RDP units Pocket 2 – FLISP Housing RDP units CRU units Scottsdene Integrated Development, Cape Town 16
Slide 17: Typical Affordable Housing (Bonded Market) Development
Typical Affordable Housing (Bonded Market) Development Summerset Development, Midrand, Gauteng 17
Slide 18: Retirement & Lifestyle Estate Development
Retirement & Lifestyle Estate Development La Vie Nouvelle Retirement & Lifestyle Estate, Broadacres, Gauteng 18
Slide 19: Financial Review
Financial Review For The Twelve Months Ended 28 February 2014 Financial Review Two
Slide 20: Salient Indicators
Salient Indicators Financial Key Ratios Market Capital Capital • Group • Net Profit • Market Revenue ↓ Margin ↑ to Capitalisation 5.19% to 17.24% ↑ 21.36% to R412 Million • Basic and R953 Million • Profits From Diluted EPS ↑ JV’s ↑ 8.34% 39.20% to • PE Ratio ↑ to R30 Million 55.90 cents 4.88% to 9.0
Slide 21: Key Graphs
Key Graphs Revenue Analysis 21
Slide 22: Key Graphs Continued
Key Graphs Continued Interest Cover 3.15 3.14 5.63 i) 1 2 3 4 5 6 Net Debt Equity 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 ——_ Building legacies * Changing lives CALGRO M3 HOLDINGS
Slide 23: Key Graphs Continued
Key Graphs Continued Calgro Daily Closing vs All Share Index 60000 900 800 50000 700 40000 600 + 500 30000 Wy + 400 20000 + 300 fi + 200 10000 WAR el y i) T T T T T T te) 16-Nov-07 16-Nov-08 16-Nov-09 16-Nov-10 16-Nov-11 16-Nov-12 16-Nov-13 ——<AllShare Close —=Calgro M3 Close © —— 90 Day Moving Avg
Slide 24: Financial Summary
Financial Summary August 2014 August 2013 All Figures In R’000 Unless Stated 2014 vs. 2013 (Unaudited) (Unaudited) Revenue ↓ 5.19% 412 076 434 638 Gross Profit ↑ 33.37% 82 684 61 996 Net Profit ↑ 39.21% 71 050 51 040 Headline Earnings – Rand ↑ 26.92% 50.97 40.16 Fully diluted Headline earnings – Ran
Slide 25: Statement of Financial Position - Extract
Statement of Financial Position - Extract August 2014 Feb 2014 (Unaudited) (Audited) Non Current assets 241 119 202 720 Intangible assets 41 022 32 986 Investments in JV’s 172 684 142 740 Current assets 951 133 894 817 Inventories 452 052 385 826 Construction Contracts 174 275 179 487 Trade and othe
Slide 26: Statement of Financial Position - Extract
Statement of Financial Position - Extract August 2014 August 2013 (Unaudited) (Unaudited) Equity 504 103 433 053 Non-current Liabilities 44 773 37 128 Deferred tax 44 773 37 128 Current Liabilities 643 376 627 356 Borrowings 478 743 470 929 Trade and other payables 164 482 156 057 Total Equity and L
Slide 27: Statement of Cash Flow
Statement of Cash Flow August 2014 August 2013 (Unaudited) (Unaudited) Cash Generated From Operations 51 815 33 886 Working capital changes 96 683 (187 126) Cash (utilised in) / generated from operations 148 498 (153 241) Finance costs – (net) (22 424) (11 449) Tax paid (4 452) (2 811) Net cash (uti
Slide 28: Joint Venture Recon
Joint Venture Recon Project February 2014 August 2014 Net Movement JV Debtors 199 496 239 101 891 158 (97 605 081) Investment in JV’s 142 740 474 172 683 648 29 943 174 Construction 32 730 431 -* (32 730 431) Contracts Total 374 967 144 274 574 806 100 392 338 * As of August 2014, all construction c
Slide 29: Change in Borrowings
Change in Borrowings Increases: Bond Exchange 24 000 000 JIBAR Linked Prime (Linked To Clidet RMB Limited 5 791 620 Transaction) Decreases: Bond Exchange (22 500 000) Prime Linked Bond Exchange AMRT (521 628) (Accounting Entry) Total Net Debt Raised 7 813 248 On the 22nd of September 2014, the group
Slide 30: Company Structure
Company Structure Calgro M3 Holdings Limited 2005/027663/06 Calgro M3 Calgro M3 Land (Pty) Calgro M3 Project DevelopmentsLtd Ltd Management (Pty) Ltd 1996/017246/06 2005/027072/07 2007/030313/07 Business Venture Hightrade-Invest 60 Investments No 1221 (Pty) Ltd CM3 Randpark Ridge (Pty) Ltd Ext 120 (
Slide 31: Significant Achievements
Significant Achievements three
Slide 32: 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 33: Significant Achievements
Significant Achievements Awards – 2013 Fleurhof project: Govan Mbeki Award for Social Housing Project of the Year 2013 Fleurhof project: SAHF Award for Best Housing Project of the Year 2013 Awards – 2014 Fleurhof project: Govan Mbeki Award for Informal Settlement Project of the Year 2014 Fleurhof pr
Slide 34: Group Prospects
Group q Prospects NE = =] L Sr" CALGRO M3
Slide 35: Group Project Pipeline
Group Project Pipeline Total no of GAP, FLISP RDP/BNG Social Affordable Mid-to- Project units in & Rental Housing Housing Housing high Project Housing Fleurhof – JHB 10199 2904 2103 3058 2134 0 Jabulani CBD – Soweto 3881 0 1260 2621 0 0 Scottsdene – Cape Town 2885 549 1141 724 471 0 Brandwag – Bloem
Slide 36: Group Project Pipeline
Group Project Pipeline 23% 2% 26% RDP/BNG Housing Social Housing GAP, FLISP & Rental Housing 26% 23% Affordable Housing Mid-to-High Income Housing 6% 12% RDP/BNG Housing 34% 21% Social Housing GAP, FLISP & Rental Housing 26% Affordable Housing Mid-to-high Income Housing 36
Slide 37: 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; Labor unrest; and Contract costing. 37
Slide 38: Thank You For Attending Our Presentation
Thank You For Attending Our Presentation. Questions? 38
Slide 39: 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 39
Slide 40: 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