Remgro Limited · JSE:REM
Remgro — Remgro Ltd Ord — H1 2025 Earnings Presentation
58 slides from Remgro's earnings presentation, Mar 25, 2025
Slide 1: Interim Results Presentation
Interim Results Presentation For the six months ended 31 December 2024 1
Slide 2: Contents
Contents 01 Performance overview and operating context 04 Update on key portfolio companies 02 Delivering on our strategic priorities 05 Key areas of focus 03 Summarised results for the interim period 06 Q&A
Slide 3: Performance overview and operating context
Performance overview and operating context
Slide 4: Uncertain operating context globally and locally
Performance overview and operating context Uncertain operating context globally and locally Positive gains on controllables Global and local operating environment remains fluid Focus on the controllables delivers pleasing results Significant geopolitical uncertainty • Completely de-geared with capac
Slide 5: Strong earnings recovery driven by focused strategic efforts
Performance overview and operating context Strong earnings recovery driven by focused strategic efforts Ordinary dividend 96c INAVPS R276.89 HE R3 728m HEPS 672c 20.0% 10.3% 38.7% 38.6% (2023: 80c) (June 2024: R251.01) (Restated 2023: (Restated 2023: R2 687m) 485c) Closing share price R155.10 INAV d
Slide 6: Delivering on our strategic priorities
Delivering on our strategic priorities
Slide 7: Tracking well to deliver on our stated strategic priorities
Delivering on our strategic priorities Tracking well to deliver on our stated strategic priorities Sustaining momentum and resilience through the portfolio 01 Embedding transformative corporate actions • Progress on optimisation to unlock value across Mediclinic, RCL Foods, Rainbow and Heineken Beve
Slide 8: Summarised results for the interim period
Summarised results for the interim period
Slide 9: Sustainable recovery in headline earnings
Summarised results for the interim period Sustainable recovery in headline earnings 5 000 ↑20.8% ↑38.7% 4 500 ↑45.5% 152 ↑>100% 195 ↑40.1% 205 4 000 3 805 ↑>100% 224 (331) 3 728 ↑>100% 237 ↓>100% (147) (34) (77) 3 500 274 ↓>100% 343 3 030 3 000 2 687 R million 2 500 2 000 1 500 1 000 500 - HE - 1H24
Slide 10: INAV: Overview of changes
Summarised results for the interim period INAV: Overview of changes for the six months ended 31 December 2024 R276.89 ↑10.3% ↑44.1% ↑3.8% ↑11.9% 160 000 R251.01 ↑43.3% ↑73.4% 3 171 2 541 1 529 414 580 153 903 ↑10.5% 9 426 139 291 140 000 (1 900) (1 149) 120 000 ↓25.1% ↓10.9% 100 000 R million 80 000
Slide 11: Valuation approaches – unlisted investments
Summarised results for the interim period Valuation approaches – unlisted investments Principal valuation methodology Discounts applied Lack of Change in value Post-discount marketability % of (from historic and/or control Forecast risk Investee Company Remgro NAV(1) Equity interest 30 June 2024) EV
Slide 12: Valuations
Summarised results for the interim period Valuations Significant unlisted investments 50 000 47 268 45 000 42 285 40 756 40 000 ↓13.8% ↑3.8% 35 000 30 000 R million 25 000 20 000 14 300 14 497 14 889 15 000 12 451 10 000 ↑1.4% ↑2.7% 7 071 7 164 6 007 6 103 6 182 5 972 5 774 4 911 5 000 ↓43.2% ↑1.3%
Slide 13: Results overview per platform: Healthcare
Summarised results for the interim period Results overview per platform Healthcare Earnings Dividend Intrinsic value Headline earnings Dividends received(1) yield %(2) yield %(2) Remgro 31 Dec 30 June % 31 Dec 31 Dec % 31 Dec 31 Dec % 31 Dec 31 Dec R million Interest 2024 2024 change 2024 2023 chang
Slide 14: Results overview per platform: Consumer products
Summarised results for the interim period Results overview per platform Consumer products Earnings Dividend Intrinsic value Headline earnings Dividends received yield %(1) yield %(1) Remgro 31 Dec 30 June % 31 Dec 31 Dec % 31 Dec 31 Dec % 31 Dec 31 Dec R million Interest 2024 2024 change 2024 2023 c
Slide 15: Results overview per platform: Financial services
Summarised results for the interim period Results overview per platform Financial services Earnings Dividend Intrinsic value Headline earnings Dividends received yield %(1) yield %(1) Remgro 31 Dec 30 June % 31 Dec 31 Dec % 31 Dec 31 Dec % 31 Dec 31 Dec R million Interest 2024 2024 change 2024 2023
Slide 16: Results overview per platform: Infrastructure
Summarised results for the interim period Results overview per platform Infrastructure Earnings Dividend Intrinsic value Headline earnings Dividends received yield %(1) yield %(1) Remgro 31 Dec 30 June % 31 Dec 31 Dec % 31 Dec 31 Dec % 31 Dec 31 Dec R million Interest 2024 2024 change 2024 2023 chan
Slide 17: Results overview per platform: Industrial
Summarised results for the interim period Results overview per platform Industrial Earnings Dividend Intrinsic value Headline earnings Dividends received yield %(1) yield %(1) Remgro 31 Dec 30 June % 31 Dec 31 Dec % 31 Dec 31 Dec % 31 Dec 31 Dec R million Interest 2024 2024 change 2024 2023 change 2
Slide 18: Cash and debt at the centre
Summarised results for the interim period Cash and debt at the centre % of 31 Dec 30 Jun R million total 2024 2024 Local cash 51.2 3 837 3 309 Offshore cash 48.8 3 653 3 513 $182.9 million (@ R18.87/$) (30 June 2024: $182.1 million @ R18.19/$) 46.1 3 451 3 312 £3.4 million (@ R23.56/£) (30 June 2024
Slide 19: Cash flow at the centre
Summarised results for the interim period Cash flow at the centre 6 000 126 5 000 350 (97) 2 552 (1) (321) 4 000 (425) R million 3 000 (1 021) 2 004 2 000 1 000 668 (2 500) - Dividends Investment sold Interest, income, Foreign exchange Finance Investments made Corporate costs Dividends paid Preferen
Slide 20: Dividends received evolution
Summarised results for the interim period Dividends received evolution 2 500 2 004 2 000 30.5% 1 715 10.5% 1 535 686 1 500 591 R million 711 1 000 1 318 500 1 124 824 - 31 Dec 2022 31 Dec 2023 31 Dec 2024 Period ended Listed Unlisted 20
Slide 21: Interim dividend
Summarised results for the interim period Interim dividend 300 25% 10% 264 Dates of importance Last day to trade to participate in the 250 240 dividend 14 Apr 2025 20% Shares trade ex dividend 15 Apr 2025 200 Record date 17 Apr 2025 15% 184 Payment date 22 Apr 2025 15% cents 150 160 10% 100 20% 96 5
Slide 22: Update on key portfolio companies
Update on key portfolio companies
Slide 23: Mediclinic Group
Mediclinic Group Jurgens Myburgh (CFO)
Slide 24: Mediclinic Group: Financial results
Mediclinic Group Mediclinic Group: Financial results Resilience, optimisation and growth 6 months to 6 months to Progress on key priorities USD million 30 Sep 2024 30 Sep 2023 % change • Expanding revenue generation - Good volume growth across all divisions Revenue 2 337 2 199 6 - Strong growth in t
Slide 25: Mediclinic: Divisional results
Mediclinic Group Mediclinic: Divisional results Improved performance through delivery on key priorities 6 months 6 months 6 months 6 months 6 months 6 months to to % to to % to to % 30 Sep 30 Sep 30 Sep 30 Sep 30 Sep 30 Sep CHF million 2024 2023 change R million 2024 2023 change AED million 2024 202
Slide 26: Heineken Beverages
Heineken Beverages Lucas Verwey (FD)
Slide 27: Strategic rationale
Heineken Beverages Strategic rationale Creating a Regional Beverage Champion for Southern Africa Accelerating our growth by combining Leveraging our unique multi-category portfolio three successful businesses to transform the market Provides entry point into profitable and growing African markets He
Slide 28: The journey thus far
Heineken Beverages The journey thus far Final stage of integration Focused cash management to reduce take-on debt, Strong growth from NBL (one system, one structure, site progressing towards future reinstatement of regular dividend and HBI consolidation and efficiency) payment Successful launch of R
Slide 29: Results overview
Heineken Beverages Results overview Six months December FY24 vs December FY23 6 months to 6 months to Progress on key priorities R million 31 Dec 2024 31 Dec 2023 % change • Portfolio composition towards a better mix and improved margins Revenue 30 719 27 626 11 • Beyond beer portfolio: Ciders and S
Slide 30: Revenue pre-excise contribution per region
Heineken Beverages Revenue pre-excise contribution per region Six months December FY24 vs December FY23 Revenue pre-excise contribution by category Key insights • All categories achieved revenue growth, ranging between mid single digits and high teens • Recovery in beer volumes driven by brand inves
Slide 31: Movement in reported headline loss
Heineken Beverages Heineken Beverages Six months December FY23 to December FY24 Movement in reported headline loss (R million) - 132 672 (59) ( 500) 1 328 (1 000) (1 500) (2 000) (2 191) (2 500) Reported headline loss FY23 Operational improvement on HE IFRS 3 amortisation after tax (1) Other: Tax, i
Slide 32: Statutory headline earnings reported to normalised
Heineken Beverages Heineken Beverages Six months December FY24 Statutory headline earnings reported to normalised (R million) 600 562 56 167 500 400 398 339 300 200 100 - (59) (100) Reported headline loss IFRS 3 amortisation (1) Headline earnings excl. Once-off costs (2) Forex (3) Normalised headlin
Slide 33: CIVH Group
CIVH Group Pieter Uys (Chairman)
Slide 34: CIVH: Overview
CIVH CIVH: Overview Increase uptake and futureproof for growth CIVH (continuing operations) Progress on key priorities 6 months to 6 months to • DFA network quality improved and continued capital expenditure 30 September 30 September to modernise and futureproof network R million 2024 2023 % change
Slide 35: CIVH: Vumatel (FTTH)
CIVH CIVH Vumatel (FTTH) Financial results Commentary Key operating metrics Vumatel • Increased uptake leading to revenue growth Growth in key metrics: 6 months to 6 months to • Good operating cost management 6 months to 30 September 2024 30 September 30 September R million 2024 2023 % change • High
Slide 36: CIVH: DFA
CIVH CIVH DFA (FTTS, Metropolitan and FTTB) Financial results Commentary Network performance DFA • Annuity revenue base increased to Link count Hours 6 months to 6 months to R228 million per month (March 2024: 65 000 40.04 45 30 September 30 September R224 million) 40 64 000 R million 2024 2023 % ch
Slide 37: CIVH: Valuation
CIVH CIVH Valuation Historic EV/EBITDA: 11.4x R million (10.1x after discounts) Valuation as at 31 December 2024 60 000 51 922 • 2.7% increase in valuation since 50 000 31 Dec 2024 June 2024 40 000 32 374 30 000 26 112 (19 548) (137) 20 000 (6 125) 14 889 • Year to date operating 10 000 0 performanc
Slide 38: Making headway with regulatory process, although uncertain outcomes remain
CIVH CIVH Making headway with regulatory process, although uncertain outcomes remain Acquisition of control of Herotel Vodacom investment in Maziv • Merger filed during May 2022 • Awaiting reasons from Competition Tribunal • Competition Commission recommended to the Competition Tribunal on • Longsto
Slide 39: RCL Foods
RCL Foods Paul Cruickshank (CEO)
Slide 40: RCL Foods: Overview
RCL Foods RCL Foods: Overview Clear strategy and focused execution delivered pleasing results despite the challenging operating backdrop 6 months to 6 months to R million 31 Dec 2024 31 Dec 2023 % change Key features Revenue 13 558 12 860 5.4 ✓ Portfolio repositioned for growth EBITDA 1 550 1 239 25
Slide 41: Market context: Improving but remains competitive
RCL Foods Market context Improving but remains competitive Food volumes have been positively impacted by inflation easing in recent months, but the consumer remains under pressure Inflation Volume Food Volume Trend – December 2024 5.5% 12MM 3MM 12MM 3MM 5.0% 5.3% Total industry basket Dec 2024 Dec 2
Slide 42: Market context: Strong brands continue to perform
RCL Foods Market context Strong brands continue to perform Despite tough, competitive trading conditions, all our major brands (bar Nola) grew or maintained market share RCL Foods volume market share 6MM 6MM 3MM Groceries Dec 2023 Dec 2024 Dec 2024 Yum Yum Peanut Butter 31.3% 32.8% 33.6% Nola Mayonn
Slide 43: Performance
RCL Foods Performance Delivered a pleasing underlying EBITDA result, which was 20.5% up on the prior period for the six months ended 31 December 2024 1 800 ↑25.1% ↑20.5% 72 1 550 1 600 40 174 49 16 1 388 1 400 1 239 77 1 152 (25) (6) 1 200 (70) (17) 1 000 R million 800 600 400 200 - Dec 2023 Komati
Slide 44: Business unit performance
RCL Foods Business unit performance Volatile market demand more than offset by savings initiatives across all businesses Underlying EBITDA R million & % margin • Pleasing result driven by improved margins resulting from lower raw material input ↑29.1% Groceries costs, reduced load shedding, and savi
Slide 45: Focus areas
RCL Foods Focus areas Focus exclusively on growing what matters in a future fit, branded business that aims to deliver sustainable earnings Brilliantly execute our Whilst volumes are likely to remain under pressure, delivering on our margin enhancing growth plans, specifically initiatives, net reven
Slide 46: Key areas of focus
Key areas of focus
Slide 47: Continued focus on our stated strategic priorities
Key areas of focus Continued focus on our stated strategic priorities To deliver sustainable growth and long-term value crystallisation Active • Continue on path of more active involvement where required performance • Close partnerships with management and co-shareholders to drive improved perform
Slide 48: Q&A
Q&A
Slide 49: Annexure
Annexure
Slide 50: Intrinsic net asset value
Annexure Intrinsic net asset value Material investee companies R million 31 Dec 2024 30 Jun 2024 % Change % Contribution Mediclinic 42 285 40 756 3.8% 26.7% OUTsurance Group L 31 218 21 792 43.3% 19.7% CIVH 14 889 14 497 2.7% 9.4% RCL Foods L 6 784 7 176 (5.5%) 4.3% Discovery L 8 302 5 761 44.1% 5.2
Slide 51: Valuation: Listed vs unlisted
Annexure Valuation: Listed vs unlisted Cash, debt and other corporate assets excluded December 2024 June 2024 10% 10% Listed - Portfolio investments 37% 24% 34% 27% Listed - Strategic investments 63% 66% Unlisted 51
Slide 52: Heineken Beverages including Remgro IFRS 3
Annexure Heineken Beverages including Remgro IFRS 3 Six months December FY23 Statutory headline earnings reported to normalised (R million) 500 1 234 62 175 - ( 500) (1 000) 1 070 (1 121) (1 500) (2 000) (2 191) (2 500) Reported headline loss IFRS 3 amortisation(1) Headline earnings excl. Once-off c
Slide 53: Consumer products
Annexure Consumer products Siqalo Foods performance 6 months to 6 months to R million 31 Dec 2024 31 Dec 2023 % change Revenue 1 931 1 883 2.5 Operating profit 327 300 9.0 Headline earnings 255 237 7.6 Headline earnings Intrinsic value Drivers Drivers ↑7.6% • Trading environment shown signs of ↑1.3%
Slide 54: Industrial
Annexure Industrial Unlisted portfolio performance Air Products Wispeco 6 months to 6 months to 6 months to 6 months to R million 30 Sep 2024 30 Sep 2023 % change R million 31 Dec 2024 31 Dec 2023 % change Revenue 2 981 2 727 9.3 Revenue 2 030 1 973 2.9 Operating profit 941 778 21.0 Operating profit
Slide 55: Diversified investment vehicles
Annexure Diversified investment vehicles KTH performance Headline earnings Intrinsic value R million R million Drivers Drivers • The comparative period included a • Valuation based on sum-of-the-parts positive fair value adjustment on KTH’s ↑8.3% of the investment portfolio, of which investment in M
Slide 56: Dividends received
Annexure Dividends received Six months ended Six months ended R million 31 Dec 2024 31 Dec 2023 Listed 1 318 824 FirstRand 236 240 OUTsurance Group 719 406 RCL Foods 250 Discovery 78 56 Momentum 86 Other listed 35 36 Unlisted 686 711 Air Products 275 210 Siqalo Foods 180 165 TotalEnergies 71 151 eMe
Slide 57: Headline earnings contribution
Annexure Headline earnings contribution Interim 1H25 Restated Six months Six months ended ended R million 31 Dec 2024 31 Dec 2023 % change Mediclinic Adjusted US$ earnings ↑25% due to good volume growth in all divisions; EBITDA ↑13% 883 566 56.0 RCL Foods Underlying earnings ↑29%, driven by Baking a
Slide 58: End
End