York Timber Holdings Limited · JSE:YRK
York Timber — Investor Presentation (2018)
23 slides from York Timber's investor presentation, 2018
Slide 1: Investor Presentation 2018
ESTOR PRESENTATION 2018 a\ YORK TIMBERS
Slide 2: Who We Are
WHO WE ARE 2 YORK TIMBER HOLDINGS LIMITED (YORK, YORK TIMBERS OR THE COMPANY) IS AN INTEGRATED FORESTRY COMPANY LISTED ON THE JSE IN THE FORESTRY AND EMPOWERMENT PAPER SECTOR WITH SHARE CODE YRK. 29% DEVELOPMENT AGENCIES 29% YORK WAS INCORPORATED IN 1916 AND WAS FIRST LISTED IN 1946. SHAREHOLDING PR
Slide 3: 2018 Review
2018 REVIEW 3 CONTINUAL GROWTH EBITDA per share has grown at a CAGR of 6% over the past eight years IMPROVED QUALITY OF BIOLOGICAL ASSET The continual improvement is reflected in a 6% CAGR since 2011 CASH FLOWS FROM OPERATIONS York continues to deliver positive cash flows from operations, with a 6%
Slide 4: Value Distribution
VALUE DISTRIBUTION 4 R1 818 million R1 228 million Revenue to suppliers (2017: R1 833 million 1%) (2017: R1 308 million 6%) - R1 263 million R76 million Cost of sales to financiers (2017: R1 335 million 5%) (2017: R77 million 1%) - R361 million R396 million Other operating expense to employe
Slide 5: Our Results
OUR RESULTS 5 1% REVENUE 1% to R1 818 million (2017: R1 833 million) 12% EBITDA 12% to R276 million 59% (2017: R246 million) Core earnings per share 59% 2% Total asset value to 27 cents (2017: 17 cents) 2% to R5 167 million (2017: R5 082 million) OTHER HIGHLIGHTS Number of people emp
Slide 6: Change in Strategy
CHANGE IN STRATEGY 6 VISION To deliver shareholder value STRATEGY Focus on cash generation through cost efficiencies and supply chain optimisation DELIVERABLES • Capex normalised ca R70 million • Consolidation of operations • Duplication of costs - Highveld operations • Secure raw material – Externa
Slide 7: Financial Overview
FINANCIAL OVERVIEW 7 BUILDING A SUSTAINABLE COMPANY REQUIRES CONSISTENT PERFORMANCE AND CASH GENERATION OVER TIME GROUP REVENUE GROSS PROFIT EBITDA R’million R’million R’million 2 000 600 300 500 270 1 500 400 240 1 000 300 210 200 180 500 100 150 0 0 120 2018 2018 2018 2013 2015 2011 2011 2012 2014
Slide 8: Eight Year Financial Review
EIGHT YEAR FINANCIAL REVIEW 8 CAGR % % 2011-2018 2018 change 2017 2016 2015 2014 2013 2012 2011 Group revenue R’000 9,6 1 817 609 (1) 1 832 805 1 771 049 1 543 149 1 323 976 1 131 994 1 112 843 959 143 Gross profit R’000 4,0 554 151 11 497 502 500 566 404 415 377 945 410 298 421 519 420 912 Gross pr
Slide 9: Eight Year Financial Review
EIGHT YEAR FINANCIAL REVIEW 9 CAGR % % 2011-2018 2018 change 2017 2016 2015 2014 2013 2012 2011 Basic earnings R’000 20,3% 139 734 (62) 367 286 238 212 101 468 50 994 106 864 137 818 38 317 Weighted average number of shares number (0,6%) 316 874 - 317 209 325 286 331 032 331 241 331 241 331 241 331
Slide 10: Balance Sheet
BALANCE SHEET 10 Statement of financial position 2018 % 2017 as at 30 June 2018 R’000 change R’000 The net increase in biological assets is the result of an increase in growth and price, and a Assets decrease from operating costs and discount rate. Non-current assets 4 036 314 3 3 932 641 Purchased
Slide 11: Balance Sheet
BALANCE SHEET 11 Statement of financial position 2018 % 2017 as at 30 June 2018 R’000 change R’000 Equity and liabilities Equity 3 132 435 5 2 992 565 Share capital 1 480 232 - 1 480 232 Reserves (353) (28) (489) Retained income 1 652 556 9 1 512 822 Liabilities Reduction in loans and borrowings due
Slide 12: Core Earnings per Share Analysis
CORE EARNINGS PER SHARE ANALYSIS 12 CAGR % Audited Audited Audited Audited Audited Audited Audited Audited 2011-2018 2018 2017 2016 2015 2014 2013 2012 2011 Core earnings per share Cents 17,9 27 17 31 21 16 26 13 8 EBITDA per share Cents 5,7 87 78 74 60 47 57 59 59 Finance costs per share Cents (5,8
Slide 13: The Top Ten Risks
THE TOP TEN RISKS 13 The residual risks facing York are reflected on this heat map: The top ten risks York faces, together with the probability of these events occurring and the impact thereof High 4 1 Critical (high, medium and low), are listed Board and here. The mitigating strategies, Executive t
Slide 14: Top 10 Risks to Value Creation
TOP 10 RISKS TO VALUE CREATION High Medium Low 14 CAPITALS RANK KEY RISKS AND DESCRIPTION MITIGATING CONTROLS ACTIONS PROB IMPACT MEASURING THE IMPACT AFFECTED UNION RIVALRY AND INDUSTRIAL • Continuous and direct communication with • Active responsible social citizen 1 RELATIONS STRATEGY employees a
Slide 15: Top 10 Risks to Value Creation
TOP 10 RISKS TO VALUE CREATION High Medium Low 15 CAPITALS RANK KEY RISKS AND DESCRIPTION MITIGATING CONTROLS ACTIONS PROB IMPACT MEASURING THE IMPACT AFFECTED YORK SHARE PRICE • Revise business strategy • Focus on cash generation and 4 • York share price disconnect with thevalue • Investor communic
Slide 16: Top 10 Risks to Value Creation
TOP 10 RISKS TO VALUE CREATION High Medium Low 16 CAPITALS RANK KEY RISKS AND DESCRIPTION MITIGATING CONTROLS ACTIONS PROB IMPACT MEASURING THE IMPACT AFFECTED TOTAL COST OF EMPLOYMENT • Increased levels of mechanisation • Total cost of employment 7 • Rapidly rising total cost of employment • Implem
Slide 17: Top 10 Risks to Value Creation
TOP 10 RISKS TO VALUE CREATION High Medium Low 17 CAPITALS RANK KEY RISKS AND DESCRIPTION MITIGATING CONTROLS ACTIONS PROB IMPACT MEASURING THE IMPACT AFFECTED FIRE • Self-insurance fund for forest fires in place • Value of biological asset 10 • Plantation fire – loss of trees younger than • Impleme
Slide 18: SAFCOL Marketing Policy
SAFCOL MARKETING POLICY 18 LOG PRICES IN RELATION TO INDUSTRY - R/m³ Yearly change Q2 2014 % Change Q2 2015 % Change Q2 2016 % Change Q2 2017 % Change Q2 2018 % CAGR Industry average - R/m 3 507,14 8,2% 548,71 6,8% 586,14 6,8% 625,86 5,5% 660,43 6,8% KZN average- R/m 3 433,14 3,5% 448,29 19,9% 537,2
Slide 19: Green Resources AS Merger
19 Asia & India Shipping advantage Green Resources AS has plantations in Mozambique, Uganda and Tanzania. York would acquire all the shares in GRAS (debt free) for a defined purchase consideration. GRAS shareholders would convert their shareholding for shares in York at a marginal discount to York’s
Slide 20: Wood Is Unique
WOOD IS UNIQUE 20 Wood is unique and highly beneficial for the production of wood-based products and components for construction purposes. Some of the properties would be almost impossible to replicate in any other building materials. Some of these properties include: Thermal: Wood does not change i
Slide 21: Precision Forestry
PRECISION FORESTRY 21 Phenotype Genotype [OUTSIDE] [INSIDE] P = G + E + (G interaction E) Genome diversity atlas Landscape genomics
Slide 22: Disclaimer
DISCLAIMER 22 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 warran
Slide 23: Thank You
THANK YOU a\ YORK TIMBERS