Zeder Investments Limited · JSE:ZED
Zeder Investments — H1 2021 Earnings Presentation
19 slides from Zeder Investments's earnings presentation, Oct 7, 2020
Slide 1: Interim Results
Interim Results 6-month period ended 31 August 2020 Presented by: Johann le Roux
Slide 2: Contents
Contents • Noteworthy transactions • Interim financial results • Portfolio review • Prospects and strategy • Questions
Slide 3: Noteworthy transactions
Noteworthy transactions As previously reported, significant transactions have been implemented during the interim reporting period. Disposal of Pioneer Settlement of all Payment of Special Disposal of Buyback of Zeder Foods obligations Dividend Quantum Foods shares • All of the shares held in • R1.5
Slide 4: Executive summary
Executive summary Interim financial results Zeder’s SOTP value decreased, mainly as a result of the sale of Pioneer Foods, and 31 August 2020 the resultant special dividend paid to shareholders. • Change in accounting policy to that of an Investment Entity (effective 1 March 2020) ─ Prospective trea
Slide 5: Sum-of-the-Parts
Sum-of-the-Parts Interim financial results Agri-input cycle results in majority of unlisted investment valuations being in line with prior period reported numbers. 31 August 2020 Fewer shares in issue, as a result of share repurchases. 4
Slide 6: Covid-19 impact and update
Covid-19 impact and update Portfolio review Proactive measures taken and implemented by portfolio management teams during Covid-19. • Investee companies are mostly positioned in the “essential” industries • Operations have largely remained “open” – but under constrained demand and capacity condition
Slide 7: Business overview: Zaad
Business overview Portfolio review Zaad is a specialist agricultural seed company that develops and supplies a broad basket of proprietary seeds to international markets. 6
Slide 8: Portfolio review: Zaad
Portfolio review Zaad reported recurring headline earnings of R23m for the 6-month period ended 31 July 2020, compared to the comparative prior period loss of R9m. Historical overview Jan 19 Jan 20 Jul 19 Jul 20 Summarised Income Statement 12 months 12 months 6 months 6 months Historical R'm R'm R'm
Slide 9: Transactions
Transactions Portfolio review The status of previously reported transactions. • Parties created joint venture in South Africa dedicated to field seeds • Vilmorin & Cie 4th largest seed company in the world • Seed Co is a leading African seed company, of which Vilmorin & Cie is the reference sharehol
Slide 10: Business overview: The Logistics Group
Business overview Portfolio review The Logistics Group is an asset light business, operating strategic logistical and terminal assets in South Africa, whilst expanding its service offering and capabilities to a broader market base in Southern Africa. 9
Slide 11: Portfolio review: The Logistics Group
Portfolio review TLG reported a decrease of 35.3% in RHEPS for the 6-month period ended 30 June 2020. . Historical overview Dec 18 Dec 19 Jun 19 Jun-20 Summarised Income Statement 12 months 12 months 6 months 6 months Historical R'm R'm R'm R'm Revenue 794 949 429 423 EBITDA 226 321 141 138 EBIT 165
Slide 12: Business overview: Capespan
Business overview Portfolio review Capespan is a vertically integrated fruit producer with global marketing, sales and distribution capabilities. 11
Slide 13: Portfolio review: Capespan
Portfolio review Capespan reported a reduced loss for the 6-month period ended 30 June 2020. Historical overview Dec 18 Dec 19 Jun 19 Jun-20 Summarised Income Statement 12 months 12 months 6 months 6 months Historical R'm R'm R'm R'm Revenue 4 763 3 951 1 986 1 730 EBITDA (54) 72 (62) (17) EBIT (124
Slide 14: Business overview: Kaap Agri
Business overview Portfolio review Kaap Agri is a leading Agri-related retail, trade, supply and services company. 13
Slide 15: Portfolio review: Kaap Agri
Portfolio review Kaap Agri reported an increase of 7.5% in RHEPS for the 6-month period ended 31 March 2020. Historical overview Sep 18 Sep 19 Mar 19 Mar-20 Summarised Income Statement 12 months 12 months 6 months 6 months Historical R'm R'm R'm R'm Revenue 6 549 8 452 4 390 4 900 EBITDA 478 550 303
Slide 16: Portfolio review: Agrivision
Portfolio review Improved performance by Agrivision for the 6-month period ended 30 June 2020. Historical overview Dec 18 Dec 19 Jun 19 Jun-20 Summarised Income Statement 12 months 12 months 6 months 6 months Historical $'000 $'000 $'000 $'000 Revenue 30 571 33 932 11 159 11 991 EBITDA 3 373 1 338 (
Slide 17: Prospects
Prospects Zeder portfolio companies are well positioned to benefit from favourable conditions. • Agricultural conditions favourable: – Western Cape winter rains (dam levels optimal) – Winter snow and cold units (positive for fruit farmers) – Winter wheat crops promising as result of timing of winter
Slide 18: Strategy
Strategy • Investment holding company discounts: – Zeder trades at a discount – Initiatives undertaken (management fee internalised, sale of Pioneer/Quantum) – Theme is prevalent in listed markets and will remain – We understand the market concerns • Strategy: – Overall strategy remains – create val
Slide 19: Questions
Questions will now be answered as registered on the webinar’s call or data log 18