Calgro M3 Holdings Limited · JSE:CGR
Calgro M3 — FY2022 Earnings Presentation
41 slides from Calgro M3's earnings presentation, May 2022
Slide 1: Results Presentation for the year ended 28 February 2022
RESULTS PRESENTATION For the year ended 28 February 2022 www.calgrom3.com
Slide 2: Agenda
Agenda Year under review Fleurhof Underlying business performance Financial review The future Appendix 2
Slide 3: Year under review
YEAR UNDER REVIEW 1
Slide 4: Overview of the year – What we said and what we have done
Overview of the year – What we said and what we have done Increased liquidity to R591 million of which Focus on liquidity R191 million is in cash Cash generation of R807 million from 2019 to Continue focusing on cash generation date vs R377 million in preceding 10 years Consistent and predictable ca
Slide 5: Strategic achievements in the year
Strategic achievements in the year Group pipeline ESG • Enhanced reporting • Retained Level 1 B-BBEE accreditation • ISO 14001:2015 and ISO 45001:2018 certification retained • UN Global Compact advanced level status retained • 44% of the workforce are woman • Development and training will remain a m
Slide 6: Financial overview of the year
Financial overview of the year 6
Slide 7: Underlying business performance
UNDERLYING BUSINESS PERFORMANCE 2
Slide 8: Contributions to Group
Contributions to Group Revenue and profit after tax * contribution to Group 96% 4% Memorial Parks is a key expansion area for the Group with the medium-term objective to grow cash receipts from Memorial Parks to support all Group overheads and interest obligations. – currently 72% of administrative
Slide 9: Integrated Residential Developments
Integrated Residential Developments Construction momentum continues 9
Slide 10: Integrated Residential Developments
Integrated Residential Developments Improved design layouts and densifications increased opportunities in Fleurhof, South Hills and Witpoortjie >5 000 10
Slide 11: Integrated Residential Developments
Integrated Residential Developments 11
Slide 12: Integrated Residential Developments
Integrated Residential Developments Units completed 2 685 Under construction 4 583 Total pipeline 24 563 Total segment revenue (2022) 7% 32% 37% 5% 17% 2% Fleurhof Jabulani Witpoortjie South Hills Belhar Smaller projects Cash generating Units planned for Active projects 11 projects 9 Government < 15
Slide 13: Integrated Residential Developments – Fleurhof
Integrated Residential Developments ▪ Revenue increased by 51,7% Fleurhof- CSR initiative ▪ Gross margin in target range – 20.7% ▪ Focus was on current pipeline ▪ Meticulous capital allocation between projects ▪ Revenue diversification between projects and provinces ▪ Enhance product and lifestyle o
Slide 14: Integrated Residential Developments – Jabulani
Integrated Residential Developments Jabulani ▪ Core projects benefit from better design and town planning as well as product enhancements catering for more discerning clients ▪ Plan to spend approximately R120 million on self- funded infrastructure investment during the new financial year ▪ Net debt
Slide 15: Memorial Parks
. — Memorial Parks CALGRO M3 Group Durbanville
Slide 16: Memorial Parks
Memorial Parks ▪ Revenue increased by 23.1% Fourways - Gauteng ▪ Total cash received increased by 20.7% to R64.7 million (2021: R53.6 million) ▪ Operational in Gauteng, Western Cape and Free State ▪ This year focus was to revisit business model and make sure we are on the right track ▪ Current marke
Slide 17: Memorial Parks – future focus
Memorial Parks – future focus 17
Slide 18: Financial review
FINANCIAL REVIEW 3
Slide 19: Financial summary
Financial summary Ensure strong cash and diligent capital Continued profitability allocation in order to reduce debt Strong balance sheet to support resilience and growth
Slide 20: Segmental revenue contribution
Segmental revenue contribution Revenue Audited Audited % change (R’000) February 2022 February 2021 Residential Property Development 1 269 325 836 695 52 Memorial Parks 52 268 42 451 23 Total 1 321 593 879 147 50 Belhar – Western Cape 20
Slide 21: Financial performance
. . S""— Financial performance CALGRO M3 Group - ‘ February February Financial metric 2022 2021 Movement Revenue (R million) 1 321.6 879.1 +50.3% Gross profit (R million) 281.8 108.0 +161.0% Gross profit % 21.3% 12.3% +9% Administrative expenses (R million) (89.7) (87.1) +3.0% Shi f profit/(l f join
Slide 22: Statement of Cashflows
Statement of Cashflows R’000 Audited Feb Audited Feb 2022 2021 Cash generated from operating activities Cash generated from operations 228 222 114 768 Finance income received 1 983 7 577 Finance cost paid (82 301) (107 474) Tax paid (18 022) (17 878) Net cash generated from/(utilised in) operating a
Slide 23: Statement of Cashflows (continued)
Statement of Cashflows (continued) R’000 Audited Feb Audited Feb 2022 2021 Cash flows repaid in financing activities Proceeds from borrowings - 396 000 Repayment of borrowings (107 400) (403 000) Shares bought back - (14 175) Repayment of capital portion of leases (2 378) (2 044) Settlement of share
Slide 24: Covenants
Covenants 28 Feb 2022 28 Feb 2021 28 Feb 2020 Net debt to equity ratio 0.71 * 0.99 1.04 Debt service cover ratio 2.15 1.40 1.93 (*) This is ahead of previous targets but as new infrastructure phases will now commence, this might increase slightly again during the new financial year but will not incr
Slide 25: Statement of Financial Position – Assets
Statement of Financial Position – Assets Assets Audited Feb Audited Feb R’000 2022 2021 Non-current assets Investment property 19 947 19 947 Property, plant and equipment 19 682 22 501 Intangible assets 159 651 159 651 Investments 13 927 13 027 Investments & investment in joint ventures and associat
Slide 26: Borrowing maturities
Borrowing maturities Detail Rand (R’000) Maturity Rand Opening balance 1 March 2021 (gross) 958 000 profile (R’000) Maturity Rand New debt - profile (R’000) FY 2025 211 750 Debt repaid (107 000) FY 2023 194 800 FY 2026 107 500 Closing balance – 28 February 2022 850 600 FY 2024 282 800 FY 2027 53 750
Slide 27: Statement of Financial Position – Equity and Liabilities
Statement of Financial Position – Equity and Liabilities Equity and Liabilities Audited February Audited February R’000 2022 2021 Total Equity 963 686 828 057 Non-current liabilities 213 834 208 617 Current liabilities Borrowings 839 068 944 162 Current income tax liabilities 655 93 Trade and other
Slide 28: The Future
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Slide 29: ESG enhancement
ESG enhancement ESG enhancement includes summary tables that track our progress across 87 data points 29
Slide 30: #sustainableactions
. . [= #sustainableactions CALGRO M3 Group — Continued implementation of: an Optimal capital allocation > v Increase open market sales and complete opportunities ) in Residential Property Development business v Grow market share and sales through product enhancement and increase footprint of Memoria
Slide 31: Nelson Mandela quotation
“What counts in life is not the mere fact that we have lived. It is what difference we Nelson Mandela have made to the lives of others that will determine the significance of the life we lead” 31
Slide 32: Thank you
Thank you Available at www.calgrom3.com: Investor relations Wikus Lategan (CEO) Email: wikus@calgrom3.com Sayuri Naicker (FD) Email: sayurin@calgrom3.com Waldi Joubert (MD – Memorial Parks) Email: waldi@calgrom3.com Vanessa Rech (KRIS) Email: vrech@kris.co.za Tel: +27 11 300 7500 or 083 307 5600 32
Slide 33: 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
Slide 34: Q&A
Q&A 5
Slide 35: Appendix
APPENDIX 6
Slide 36: Business model
. == Business model CALGRO M3 Group Value is created through a turnkey approach to capitals 4 = ® Professional services E Value is created through operating in 2 — Identify project and due diligence strategic locations and providing superior ® a products and customer service ® — Secure land = Q . .
Slide 37: Board composition
-)+ <—S—"""— Board composition CALGRO M3 Group Board composition @ @ @ ®@) @) Non-Executive Director @) Executive Directors & SS : Independent @(_aamm_) 8) @) St " Non-Executive Directors B J) J} ® | ) Lead Independent Director Race African r Indian White
Slide 38: Board composition
-)+ <—S—"""— Board composition CALGRO M3 Group Gender Male yO es) Tenure Average: 6 years ZT AZZ» 1 t t 0 to 2 years 3 to 9 years 10+ years @ © ®
Slide 39: Understanding the balance sheet - recap
Understanding the balance sheet - recap 1. Operating Cycle- current vs Non-current Audited Feb Audited Feb 2022 2021 Non-current assets 291 507 308 775 Current assets 2 147 749 2 159 028 Total assets 2 439 256 2 467 804 Total equity 963 985 828 057 Non-current liabilities 213 835 208 617 Current lia
Slide 40: Understanding Residential Property Development accounting - recap
Understanding Residential Property Development accounting - recap Over time-type units Point in time-type units Bulk deals, freestanding houses (Res 1), Sectional title units (Res 3), bulk deals/clients Fully subsidized (RDP) etc Cashflow: Cashflow: Received at the end once unit is 100% complete Rec
Slide 41: Understanding Memorial Parks accounting - recap
Understanding Memorial Parks accounting - recap Revenue Indicative Revenue Indicative • Burial - Recognised amount amount immediately (example) (example) • Reservation - Amortised over 8 Total sales price 24 500.00 Burial service (open & close) 3 000.00 years • Amortised over 18 Less VAT 3 195.65 Ma