Slide 1: York Timbers Results Presentation for the year ended 30 June 2024
YORK TIMBERS RESULTS PRESENTATION for the year ended 30 June 2024
Slide 2: Notes
Notes
Slide 3: 6-month period contribution to EBITDA
6-MONTH PERIOD CONTRIBUTION TO EBITDA 6-months ended 6-months ended 12-months ended 31 December 2023 30 June 2024 30 June 2024 Processing 5 934 36 620 42 554 Forests and Fleet (9 180) 54 949 45 769 Wholesale 9 567 (3 699) 5 868 Agriculture 4 815 (4 263) 552 Non-reporting segment (2 836) (1 302) (4 1
Slide 4: Contribution to EBITDA
CONTRIBUTION TO EBITDA EBITDA contribution FY2024 Sabie -25% Jessievale -4% Plywood 79% Mothballed mills -15% Forests 33% Fleet 16% Wholesale 6% Stadsrivier 1% Corporate and other 9% 100% EBITDA contribution 100% 80% 60% 40% 20% 0% -20% -40% Sabie Jessievale Plywood Mothballed Forests Fleet Wholesal
Slide 5: Changes implemented
CHANGES IMPLEMENTED • Processing improvements (5S principles, FMEA, management changes) • Clearfell of poor performing species advanced – Pinus taeda • Harvesting while maintaining the strategy of growing trees to maturity • Procure and implement mechanised harvesting operations in Escarpment • Rest
Slide 6: Notes
Notes
Slide 7: Trading in a difficult business environment – are we through the worst?
7 M³ 160 000 120 000 80 000 40 000 0 Linear (Industry Stock Volume) Jun-24 Sep-24 May-24 Aug-24 Apr-24 Jul-24 Mar-24 Jun-24 Feb-24 May-24 Jan-24 Apr-24 Dec-23 Mar-24 Nov-23 Feb-24 TRADING IN A DIFFICULT BUSINESS ENVIRONMENT – ARE WE THROUGH THE WORST? Oct-23 Jan-24 Sep-23 Dec-23 Aug-23 Nov-23 Linear
Slide 8: Notes
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Slide 9: Notes
Notes
Slide 10: Performance: Sabie sawmill
PERFORMANCE Sabie sawmill 4 000 300 000 Key performance indicators • Intake up 15% 3 500 250 000 • Fixed cost per cube absorption lowest in three years 3 000 200 000 • Cost of production significantly more than ASP R/m³ 2 500 150 000 m³ • Significant losses for the year • Net contribution (Sabie and
Slide 11: Performance: Jessievale sawmill
PERFORMANCE Jessievale sawmill 4 000 205 000 Key performance indicators • Intake performance impacted by loadshedding 3 500 200 000 • Fixed cost growth capped at 3% 3 000 • No growth in ASP 195 000 • Increasing margin pressure R/m³ 2 500 m³ • Management changes implemented 190 000 towards end of yea
Slide 12: Profit history over the last four years
PROFIT HISTORY OVER THE LAST FOUR YEARS R/m³ actual 4 year Lumber history – indexed FY 2021 FY 2022 FY 2023 FY 2024 CAGR ASP 1.00 1.11 1.07 1.08 3% Raw material costs 1.00 1.04 1.18 1.25 8% Variable costs 1.00 1.16 0.93 1.01 0% Salaries and wages 1.00 1.10 1.14 1.14 4% Plant and machinery costs 1.00
Slide 13: Notes
Notes
Slide 14: Performance: Plywood
PERFORMANCE Plywood 8 000 200 000 Key performance indicators • 2% intake growth and 4% production 180 000 7 000 growth 160 000 • End of life component replacement 6 000 140 000 on peeler completed in May/June 120 000 5 000 • ASP impact – R34 million decrease in R/m³ 100 000 EBITDA m³ 4 000 80 000 •
Slide 15: Profit history over the last four years – plywood
PROFIT HISTORY OVER THE LAST FOUR YEARS 4 year Plywood history – indexed FY 2021 FY 2022 FY 2023 FY 2024 CAGR ASP 1.00 1.41 1.47 1.42 21% Cost of production 1.00 1.22 1.38 1.48 17% Profit per production m³ 1.00 2.15 1.81 1.20 35% Margin 26% 46% 34% 21% 15% Production volumes 102 307 72 511 82 201 85
Slide 16: Certification of our plywood
CERTIFICATION OF OUR PLYWOOD • The building regulations have changed so as to require plywood used in structural applications to be certified • Local market – SANS 929 • Plywood is imported that does not comply with these specifications • Each York plywood panel is tested for blisters and certified
Slide 17: Notes
Notes
Slide 18: Analysis of forestry results
ANALYSIS OF FORESTRY RESULTS Forestry drivers 2020 2021 2022 2023 2024 CAGR Thinning volumes (m³) 78 311 96 473 119 643 160 120 198 181 26% Thinning costs (R) 13 093 395 14 568 099 17 955 884 25 823 330 35 528 270 Thinnings R/m³ 167 151 150 161 179 2% Clearfell (m³) 406 226 608 255 410 955 426 258 4
Slide 19: Impact of external purchases on EBITDA
IMPACT OF EXTERNAL PURCHASES ON EBITDA External purchases External purchases FY 2021 FY 2022 FY 2023 FY 2024 • External purchases constituted External purchases 351 627 253 394 251 617 307 121 49% of intake Log intake at processing sites 812 735 547 553 587 390 631 714 • The EBITDA impact, net of ha
Slide 20: Notes
Notes
Slide 21: Increases in net standing volume due to delayed harvesting
21 Jun-24 May-24 Apr-24 Mar-24 Feb-24 Jan-24 Dec-23 Nov-23 Oct-23 Sep-23 Aug-23 Jul-23 Jun-23 May-23 INCREASES IN NET STANDING VOLUME DUE TO DELAYED HARVESTING Net standing volume growth Apr-23 Mar-23 Feb-23 Jan-23 Dec-22 Nov-22 Oct-22 Sep-22 Aug-22 Jul-22 Jun-22 May-22 Apr-22 Mar-22 Feb-22 Jan-22 D
Slide 22: Notes
Notes
Slide 23: Clearfell volume forecast: Escarpment
CLEARFELL VOLUME FORECAST Escarpment clearfell volumes 600 000 Escarpment harvesting profile • Clearfell volumes in the Escarpment will be low over the short-term period 500 000 • Shortfall will be sourced from third 400 000 parties 300 000 200 000 100 000 0 2024 2025 2026 2027 2028 2029 2030 2031 2
Slide 24: Own source logs for plywood production
OWN SOURCE LOGS FOR PLYWOOD PRODUCTION Available logs for plywood 350 000 Escarpment harvesting profile for plywood logs 300 000 • Minimal log availability for 2025 • Increase in plywood log availability 250 000 from 2026 in Escarpment 200 000 • Excludes volume available from the Highveld 150 000 •
Slide 25: Clearfell volume forecast: Highveld
CLEARFELL VOLUME FORECAST Highveld clearfell profile 600 000 Highveld harvesting profile • Harvesting volumes in the Highveld are in rotation 500 000 • Excess volumes are sold externally, and veneer logs are transported to 400 000 Sabie 300 000 200 000 100 000 0 2024 2025 2026 2027 2028 2029 2030 20
Slide 26: Biological asset valuation (BAV)
BIOLOGICAL ASSET VALUATION “BAV” Fair value adjustment R250.7 million gain (June 2023: loss of R385.8 million) (R’000) Reasons Change in product mix and age 294 806 Growth in trees resulting in richer mix and time to rotation shortening Price increases in year 1 and 2 of the DCF 3% lower than inflat
Slide 27: Notes
Notes
Slide 28: Forecast of yield and establishment
FORECAST OF YIELD AND ESTABLISHMENT Hectares in production 200 • First 38 hectares of Soft citrus harvested after year-end 150 100 • 98 hectares already established 50 • Soft citrus will be in full production yield from 2031 0 2024 2025 2026 2027 2028 Avocado Macadamia Soft Citrus Predicted yield –
Slide 29: Restructuring
RESTRUCTURING Notes
Slide 30: Restructuring actions
• The finger joint plant at Roodekop is loss making and operations have been terminated (July 2024) • Operations at the Stadsrivier Hout pallet sawmill will cease after the consultation process has been completed (September 2024) • Corporate and support functions (completed) • Mbulwa (completed) 30
Slide 31: Profile
ROFILE Notes
Slide 32: Debt increased from prior year to fund capex
DEBT INCREASED FROM PRIOR YEAR TO FUND CAPEX Interest bearing debt (excluding Absa IMX facility) 1 000 000 900 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 0 FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 Year Total interest bearing debt (excluding Absa IMX fa
Slide 33: Analysis of debt
ANALYSIS Balance Description R’000 Originated Repayment terms Instalment sale agreements 109 935 • Mobile equipment, solar • 10.75% - 12.25%, ranging from 36 to 60 months of which four months to 54 generation farm and months are left vehicle fleet Loan raising fee (14 525) • Advisory fees: R8.2 mill
Slide 34: Notes
Notes
Slide 35: Expectations
EXPECTATIONS • Harvesting of Pinus taeda to continue for FY 2025 • Leverage investments made in mechanised harvesting and fleet • Increase plywood production after capital expenditure on peeler and clipper • Certification obtained to export plywood to Australia and New-Zealand • Finalise S189A proce
Slide 36: Financial Results
FINANCIAL RESULTS |
Slide 37: Revenue, gross profit, EBITDA and key metrics 2017–2024
REVENUE GROSS PROFIT EBITDA R million (Before fair value changes on biological assets) (Before fair value adjustments on biological assets) R million R million 2 000 600 400 500 1 500 300 400 1 000 300 200 200 500 100 100 0 0 0 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 20
Slide 38: Statement of comprehensive income
• Cost of sales includes fair value gain on biological assets of R255 million R’000 30 June 2024 30 June 2023 (2023: loss of R384 million) Revenue 1 745 219 1 666 294 • Gross profit margin (excluding fair Cost of sales (1 138 803) (1 702 360) value adjustment on biological asset Gross profit/(loss)
Slide 39: Assets
Restated^ R’000 30 June 2024 30 June 2023 ASSETS NON-CURRENT ASSETS 3 411 704 3 197 356 Biological assets 2 413 641 2 216 402 • Fair value gain of R250.7 million Investment property 13 884 13 884 on plantation biological asset (2023: Property, plant and equipment 897 778 878 819 fair value loss of R
Slide 40: Equity and liabilities
R’000 30 June 2024 30 June 2023 EQUITY AND LIABILITIES EQUITY 2 820 001 2 682 931 Share capital 1 735 670 1 735 670 Reserves 19 334 18 336 Retained income 1 064 997 928 925 LIABILITIES NON-CURRENT LIABILITIES 1 174 346 1 045 370 Deferred tax 785 991 741 122 • Borrowings (current and non-current) Lea
Slide 41: Cash flow and EBITDA reconciliation
Reconciliation of EBITDA R’000 30 June 2024 30 June 2023 (excluding fair value adjustment on biological assets) to cash from Net cash flows from / (used in) operations 28 369 128 102 operations Net movement in interest paid and received and tax paid (37 424) (40 218) Net cash flows (used in) / from
Slide 42: Segment EBITDA contribution
6-months ended 6-months ended 12-months ended 31 December 2023 30 June 2024 30 June 2024 Processing 5 934 36 620 42 554 Forests and Fleet (9 180) 54 949 45 769 Group EBITDA 8 300 82 305 90 605 Segment EBITDA contribution 100 000 80 000 60 000 40 000 20 000 0 -20 000 Processing Forests and Fleet Whol
Slide 43: Capital expenditure for the period was R159 million
CAPITAL EXPENDITURE FOR THE PERIOD WAS R159 MILLION Funded by Cash Debt R62.9 million R95.7 million Plywood peeler upgrade 23 367 John Deere harvesting system 19 090 Hitachi excavator 3 364 Ponsse Ergo harvester 11 456 Hewsaw chipper heads 1 477 Sennebogen log handler 9 318 Citrus farm development 4
Slide 44: Sabie Mill Intake
Sabie Mill Intake 4 000 300 000 3 500 250 000 3 000 200 000 R/m³ 2 500 150 000 m³ 2 000 100 000 1 500 50 000 1 000 0 2022 2023 2024 Intake volume Fixed costs per cube 44 Notes
Slide 45: Plywood Intake
Plywood Intake 700 600 500 400 300 200 100 0 01/24 02/24 03/24 04/24 05/24 06/24 07/24 08/24 09/24 Intake m³ per day Production m³ per day 45 Notes
Slide 46: John Deere harvesting system
• John Deere Harvesting system – R19 million • Savings using own mechanised harvesting systems compared to contractor rates • Daily production significantly higher than previous contractor systems 46 Notes
Slide 47: R350 million facility from FMO
R350 million facility from FMO Movement in debt Refinanced Funding for 393 677 Land Bank – settlement of refinanced loan (146 017) Land Bank R146 million Pine Valley acquisition R66 million Working capital and other capex Absa – settlement of refinanced loan (75 011) Absa Capital R75 million R30
Slide 48: R226.9M utilised mainly to fund external log purchases and liquidity
R226.9M UTILISED MAINLY TO FUND EXTERNAL LOG PURCHASES AND LIQUIDITY R250 million R17.1 million R215.7 million R232.8 million utilised to date Capex Liquidity and external log purchases R17.2 million remaining Total external log purchases for the year: R283 million CAGR % 2017-2024 2024 Change 2
Slide 49: Group revenue and profit history
CAGR % % 2017-2024 2024 Change 2023 2022 2021 2020 2019 2018 2017 Group revenue R'000 (1%) 1 745 219 5% 1 666 294 1 838 810 1 928 589 1 438 825 1 600 522 1 812 350 1 832 805 Gross profit¹ R'000 (5%) 351 782 1% 348 033 499 591 589 312 258 067 460 355 552 631 497 502 Gross profit margin % (4%) 20.2 (3
Slide 50: Basic earnings and per share metrics
CAGR % % 2017-2024 2024 Change 2023 2022 2021 2020 2019 2018 2017 Basic earnings R'000 (13%) 136 072 143% (312 864) 182 757 137 069 (217 637) (36 268) 138 280 367 286 Weighted average number of shares Number 6% 463 753 15% 404 077 343 963 317 080 318 873 317 439 316 874 317 209 Earnings per share Ce
Slide 51: York values crossword
DOWN 1. York employees are excited about teamwork and being part of the York team, value client relationships and communication with all stakeholders. Collaboration between business units is vital. ACROSS 2. York seeks employees that are enthusiastic, creative, dynamic, inspiring, energetic, adaptiv
Slide 52: Disclaimer
This presentation contains forward-looking statements about York’s operations and financial conditions. The Company has prepared this presentation based on information available to it at the time of writing, including information derived from public sources. No representation or warranty, express or
Slide 53: Notes
Notes purple.f@g
Slide 54: www.york.co.za
a\ YORK TIMBERS www.york.co.za