Zeder Investments Limited · JSE:ZED
Zeder Investments — FY2021 Earnings Presentation
27 slides from Zeder Investments's earnings presentation, Apr 14, 2021
Slide 1: Full Year Results for the Year Ended 28 February 2021
FULL YEAR RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2021 PRESENTED BY: JOHANN LE ROUX DATE: 14 APRIL 2021 1
Slide 2: Agenda
AGENDA • Noteworthy transactions • Financial results • Portfolio review • Prospects and strategy • Questions – email to cosec@zeder.co.za 2
Slide 3: Noteworthy Transactions: Disposals
NOTEWORTHY TRANSACTIONS • Disposals Disposal of Pioneer Settlement of all Disposal of Foods obligations Quantum Foods • All of the shares held in • R1.55bn of the cash • All of the shares held in Pioneer Foods were proceeds were utilised Quantum Foods were disposed to PepsiCo to settle all debt and
Slide 4: Noteworthy Transactions: Special dividends and buyback
NOTEWORTHY TRANSACTIONS • Special dividends and buyback of Zeder shares Payment of Special Payment of further Buyback of Zeder Dividend Special Dividend shares • A special dividend of • A further special • 172m Zeder shares R2.30 per share was dividend of 20c per have been purchased declared and pai
Slide 5: Financial Results
FINANCIAL RESULTS • Results summary • Covid-19 • Sum-of-the-parts 5
Slide 6: Financial Results Summary FY2021
FINANCIAL RESULTS SUMMARY FY2021 • Change in status to that of an Investment Entity (effective 1 March 2020) ─ Prospective treatment (prior year numbers not restated) ─ Cease to consolidate its subsidiaries, investments now measured at fair value through the income statement ─ Balance sheet will clo
Slide 7: Financial Results: Covid-19 FY2021
FINANCIAL RESULTS COVID-19 FY2021 • Impact on South Africa and business ─ GDP retraction and significant job losses ─ Economy struggling and business confidence at a record low ─ SA Inc downgraded with a negative outlook ─ Low interest rate environment • Impact on Zeder and its investment portfolio
Slide 8: Financial Results: Sum-of-the-Parts FY2021
FINANCIAL RESULTS SUM-OF-THE-PARTS FY2021 The SOTP value per share decreased, due to the payment of the special dividend, but upwards valuations of most investee companies as a result of improved earnings performance. Note: It should be noted that these valuations are not an indication of the values
Slide 9: Portfolio Review
PORTFOLIO REVIEW INVESTMENTS LIMITED
Slide 10: Zaad: specialist agricultural seed and agrochemicals company
Zaad is a specialist agricultural seed and agrochemicals company that develops and supplies a broad basket of proprietary seeds and chemicals to emerging markets. 10
Slide 11: Portfolio Review: Zaad Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS Zaad reported an increase of 2% in RHEPS for the year ended 31 January 2021 to recurring headline earnings of R181m. Jan 19 Jan 20 Jan 21 Summarised Income Statement 12 months 12 months 12 months Historical R'm R'm R'm Revenue 1 635 2 113 2 914 EBITDA* 253 346 379
Slide 12: Valuation of Zeder's interest in Zaad
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in Zaad has remained flat at R2.010bn. GENERAL COMMENTS VALUATION CONSIDERATIONS • Good performance from May Seed (Turkey) and FarmAg • Valuation based on comparable EV/EBITDA multiples, adjusted for company specific factors • Covi
Slide 13: The Logistics Group: asset light logistics business
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. 13
Slide 14: Portfolio Review: TLG Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS TLG reported an increase of 12% in RHEPS for the year ended 31 December 2020 to recurring headline earnings of R142m. Dec 18 Dec 19 Dec 20 Summarised Income Statement 12 months 12 months 12 months Historical R'm R'm R'm Revenue 794 949 1 108 EBITDA* 226 321 372 EBI
Slide 15: Valuation of Zeder's interest in TLG
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in TLG has increased to R1.325bn, as a result of an improved performance in RHEPS and good growth forecasts. GENERAL COMMENTS VALUATION CONSIDERATIONS • Covid-19 negative impact on FPT and Tradekor • Valuation based on comparable E
Slide 16: Capespan: diversified fruit farming and marketing group
Capespan is an internationally diversified group with a primary exposure to fruit farming, marketing, distribution and related services. 16
Slide 17: Portfolio Review: Capespan Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS Capespan reported an increase in recurring headline earnings from a loss of R36m in the prior year to recurring headline earnings of R76m for the year ended 31 December 2020. Dec 18 Dec 19 Dec 20 Summarised Income Statement 12 months 12 months 12 months Historical
Slide 18: Valuation of Zeder's interest in Capespan
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in Capespan has increased to R1.117bn, as a result of an improved performance in RHEPS and successful restructuring of the business. GENERAL COMMENTS VALUATION CONSIDERATIONS • Improved results due: • Valuation based on Capespan Gr
Slide 19: Kaap Agri: agri-related retail and services company
Kaap Agri is a leading Agri-related retail, trade, supply and services company that supplies a variety of products and services mainly to the agricultural sector, but also to the general public. 19
Slide 20: Portfolio Review: Kaap Agri Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS Kaap Agri reported an increase of 4.6% in RHEPS for the year ended 30 September 2020 to recurring headline earnings of R276m. Sep 18 Sep 19 Sep 20 Summarised Income Statement 12 months 12 months 12 months Historical R'm R'm R'm R'm Revenue 6 549 8 452 8 575 EBITDA
Slide 21: Valuation of Zeder's interest in Kaap Agri
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in Kaap Agri has increased to R1.102bn, as a result of an increase in the listed share price. GENERAL COMMENTS VALUATION CONSIDERATIONS • Positive Q1 trading update released to the market • Valuation based on listed share price • R
Slide 22: Agrivision Africa: vertically integrated grain-related food supplier
Agrivision Africa is a vertically integrated, grain-related food supplier that farms, mills and distributes products in the northern region of Zambia and southern parts of the DRC. 22
Slide 23: Portfolio Review: Agrivision Financial Results
PORTFOLIO REVIEW FINANCIAL RESULTS Agrivision reported an improved performance, but challenges remain. Dec 18 Dec 19 Dec 20 Summarised Income Statement 12 months 12 months 12 months Historical $'000 $'000 $'000 $'000 Revenue 30 571 33 932 27 004 EBITDA 3 373 4 754 5 893 EBIT (209) 1 601 3 171 Recurr
Slide 24: Valuation of Zeder's interest in Agrivision
PORTFOLIO REVIEW FINANCIAL RESULTS The valuation of Zeder’s interest in Agrivision has decreased to R146m, as a result of a deterioration in the operating environment within Zambia. GENERAL COMMENTS VALUATION CONSIDERATIONS • Improved results due: • Valuation based on Agrivision Group NAV, adjusted
Slide 25: Prospects and Strategy
PROSPECTS AND STRATEGY INVESTMENTS LIMITED
Slide 26: Prospects and Strategy
PROSPECTS AND STRATEGY • Grow and support existing portfolio ─ Agricultural conditions remain favourable ─ Covid-19 implications and impact continuously being evaluated • Strategy review ─ Cautionary released earlier today on SENS ─ Material change to the size and composition of the Zeder group (res
Slide 27: Thank you
Awaiting image… Thank you WE ARE BASED IN STELLENBOSCH, WESTERN CAPE, SOUTH AFRICA. PHYSICAL ADDRESS POSTAL ADDRESS 2ND FLOOR, OU KOLLEGE BUILDING PO BOX 7403 35 KERK STREET STELLENBOSCH STELLENBOSCH 7599 7600 TEL: 021 831 9559 FOR FURTHER INFORMATION, PLEASE CONTACT US AT INFO@ZEDER.CO.ZA