Cashbuild Limited · JSE:CSB
Cashbuild — H1 2022 Earnings Presentation
36 slides from Cashbuild's earnings presentation, 2022
Slide 1: Interim Results and Dividend Declaration
2022 INTERIM RESULTS AND DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 26 DECEMBER 2021
Slide 2: Contents
1 CONTENTS 6 19 Financial review Product categories 28 Store development and summary 36 Financial results
Slide 3: Disclaimer
INTERIM RESULTS AND DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 26 DECEMBER 2021 NOTES Disclaimer This presentation differs from the presentation available on the website as a result of industry sensitive information contained therein. The financial information pertaining to Cashbuild Limited’s (C
Slide 4: Nature of Business and Looted Stores Timeline
Nature of Business • Mass retailer of building materials, home improvement and related products • Offers a focused range of quality products at competitive prices • Selling predominantly for cash • 317 stores (263 Cashbuild and 54 P&L Hardware) 3 NOTES Looted Stores Timeline July 11th to 18th July S
Slide 5: Financial Highlights - Statutory
Financial Highlights - Statutory Revenue Operating profit Headline earnings Net asset value per share R5.9bn R492m R256m R91.75 12% 14% 27% 5% 8 400 Rbn Rm 700 110 Rand Rm 7 100 600 90 6 300 500 80 5 70 400 60 4 200 300 50 3 40 2 200 100 30 20 1 100 10 0 0 0 0 HY18 HY19 HY20 HY21 HY22 HY18 HY19 HY20
Slide 6: Financial Review
FINANCIAL REVIEW Cashbuild
Slide 7: Income Statement and Revenue Breakdown
Income Statement Statutory period-on-period 2-year Reviewed Audited Audited compound Dec 2021 Dec 2020 Dec 2019 % variance R’m (26 Weeks) (26 Weeks) % variance (26 Weeks) Dec 2019 Revenue 5 889 6 695 (12) 5 510 3 Gross profit 1 564 1 765 (11) 1 369 7 Gross profit % 26.6 26.4 24.8 Operating expenses
Slide 8: Customer Transactions and Average Basket Size
Customer Transactions RSA Hard Lockdown 2020 ‘000 Essential Trade allowed 2020 All stores Growth: Q1: (25%) Q2: (18%) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Existing stores Growth: Q1: (26%) Q2: (20%) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY2022 FY2021 FY2020 9 NOTES Average Baske
Slide 9: Gross Profit and EBIT Margin; Segmental Disclosure
Gross Profit and EBIT Margin 28% 10% 27% 27.4% 9% 26.6% 26% 26.4% 8.4% 8.6% 8% 25% 25.2% 25.2% 25.1% 25.2% 25.2% 24.8% 7% 24% 23% 6% 6.0% 22% 5.4% 5% 5.1% 21% 4% 20% 3% 19% 18% 2% FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 1HY 2HY HY EBIT margin - On a comparable basis, excluding the looted stores, gro
Slide 10: Income Statement Excluding Looting; Operating Expenses
Income Statement Comparable trading results excluding looting effects Looted Looted Reviewed stores^ Comparative Comparative stores^ Audited R’m Dec 2021 Dec 2021 Dec 2021 % variance Dec 2020 Dec 2020 Dec 2020 Revenue 5 889 225 5 663 (5) 5 942 752 6 695 Gross profit 1 564 70 1 494 (5) 1 571 193 1 76
Slide 11: EPS and DPS; Statement of Financial Position
Earnings Per Share (EPS) and Dividend Per Share (DPS) Period-on-period 1800 1 595 1600 1400 1 295 1200 1 083 (19%) 1000 956 Cents 800 748 724 587 600 496 435 435 (19%) 400 200 0 HY 2018 HY 2019 HY 2020 HY 2021 HY 2022 EPS DPS • Interim dividend based on 1H2022 performance • Dividend cover policy rem
Slide 12: Inventory Analysis and Cash Flow
Inventory Analysis P&L Stock holding – all stores (% variance) Cashbuild Group Hardware Stores stocked since December 2020 (8 Cashbuild stores) 3 - 3 Existing stores 9 (2) 7 Total 12 (2) 10 • Purchase inflation at 9.6% • Stocks at expected levels at period end • R143 million stock replaced due to lo
Slide 13: Product Categories
2 PRODUCT CATEGORIES CASHBUILD INTERIM RESULTS FOR THE SIX MONTHS ENDED 27 DECEMBER 2021 19
Slide 14: Group Sales and Brick Sales Per Week
Group Sales TOTAL Per Week BRICK SALES R’millionR’MILLION RSA Hard KZN and Gauteng Lockdown July 2021 unrests 2020 Essential RSA Hard Lockdown Trade allowed 2020 2020 Essential Trade allowed 2020 Q1Q1 Q2 Q2 Q3 Q3 W1 W3 W5 W7 W9 W11 W13 W15 W17 W19 W21 W23 W25 W27 W29 W31 W33 W35 W37 W39 W41 W43 W45
Slide 15: Cement Unit Sales and Total Timber Sales
Cement Unit Sales Per Supplier Dec 2020 Jun 2021 Dec 2021 5% 5% 5% 4% 11% 12% 4% 12% 5% 5% 5% 5% 3% 5% 9% 29% 27% 29% 20% 19% 20% 23% 22% 16% AFRISAM PPC LAFARGE NPC SEPHAKU MAMBA CEMZA OTHER 22 NOTES Total Timber Sales R’million RSA Hard Lockdown 2020 Essential Trade allowed 2020 Q1 Q2 Q3 W1 W3 W5
Slide 16: Total Brick Sales and Roof Covering Sales
Total Brick Sales R’million RSA Hard Lockdown 2020 Essential Trade allowed 2020 Q1 Q2 Q3 W1 W3 W5 W7 W9 W11 W13 W15 W17 W19 W21 W23 W25 W27 W29 W31 W33 W35 W37 W39 W41 W43 W45 W47 W49 W51 2020 2021 2022 24 NOTES Total Roof Covering Sales R’million RSA Hard Lockdown 2020 Essential Trade allowed 2020
Slide 17: Total Opening Sales and Decorative Sales
Total Opening Sales R’million RSA Hard Lockdown 2020 Essential Trade allowed 2020 Q1 Q2 Q3 W1 W3 W5 W7 W9 W11 W13 W15 W17 W19 W21 W23 W25 W27 W29 W31 W33 W35 W37 W39 W41 W43 W45 W47 W49 W51 2020 2021 2022 26 NOTES Total Decorative Sales R’million RSA Hard Lockdown 2020 Essential Trade allowed 2020 Q
Slide 18: Store Development and Summary
NOTES 3 STORE DEVELOPMENT AND SUMMARY 28
Slide 19: Store Development and New Stores HY2022
Store Development Total Cashbuild Stores Total P&L Hardware Stores 264 263 60 59 61 55 252 256 257 9 2 9 8 3 11 14 2 1 249 255 261 57 58 241 247 54 54 46 June 2018 June 2019 June 2020 June 2021 Dec 2021 June 2018 June 2019 June 2020 June 2021 Dec 2021 Existing Cashbuild stores New Cashbuild stores E
Slide 20: Stores by Location and Sales by Province
Stores by Location Number of stores Dec 2021 (Dec 2020) Location Town- Town Rural Metro (% of total) ship 86 (84) 2021 Stores 33% 31% 27% 9% 97 (98) 29 (28) 2021 Sales 37% 29% 22% 12% 2020 Stores 34% 31% 26% 9% 105 (107) 2020 Sales 36% 28% 26% 10% 31 NOTES Sales by Province (26.5%) (14.3%) (6.1%) 0.
Slide 21: Competitor Landscape and Market Summary
Competitor Landscape Corporate Competitors Independent Competitors – R50 billion market – R30 billion market 33 NOTES Market Summary • Trading conditions for remainder of 2022 financial year expected to see sales remain under pressure • Unemployment and business closures expected to remain high • In
Slide 22: Thank You for Your Attendance and Participation
THANK YOU FOR YOUR ATTENDANCE AND PARTICIPATION WWW.CASHBUILD.CO.ZA +27 11 248 1500 Werner de Jager Etienne Prowse Shane Thoresson Chief Executive Finance Director Operations Director For any further Investor Relations questions please contact: Keyter Rech Investor Solutions Marlize Keyter mkeyter@k
Slide 23: Financial Results
4 FINANCIAL RESULTS CASHBUILD AUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 36 37 27
Slide 24: Financial Highlights
Financial highlights for the six months ended 27 December 2021 revenue Revenue (Rm) Operating profit (Rm) 7 000 600 576 6 500 6 695 500 492 6 000 400 5 889 5 500 5 563 5 510 5 393 300 322 5 000 299 285 4 500 200 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Headline earnings (Rm) Total dividend
Slide 25: Commentary
Commentary Nature of business Cashbuild is southern Africa’s largest retailer of quality building materials and associated products, selling direct to a cash-paying customer base through our chain of stores (317 at the end of this reporting period, which includes 54 P&L Hardware stores). Cashbuild c
Slide 26: Commentary continued
Commentary continued December December December December December December 2021 2021 2021 2020 2020 2020 Excluding Excluding Statutory Looted looted Variance looted Looted Statutory results stores stores % stores stores results Revenue 5 888 708 225 354 5 663 354 (5) 5 942 241 752 261 6 694 502 Cost
Slide 27: Summary Consolidated Interim Income Statement
Summary consolidated interim income statement – Reviewed Six months Six months ended ended Year ended 26 December 27 December 27 June 2021 2020 % 2021 R’000 (26 weeks) (26 weeks) change (52 weeks) Revenue 5 888 708 6 694 502 (12) 12 615 629 Cost of sales (4 324 404) (4 929 613) (12) (9 226 014) Gros
Slide 28: Summary Consolidated Statement of Comprehensive Income
Summary consolidated interim statement of comprehensive income – Reviewed Six months Six months ended ended Year ended 26 December 27 December 27 June 2021 2020 2021 R’000 (26 weeks) (26 weeks) (52 weeks) Profit for the period 296 367 364 244 670 087 Other comprehensive income: Total movement in for
Slide 29: Additional Information
Additional information Six months Six months ended ended Year ended 26 December 27 December 27 June R’000 2021 2020 2021 Net asset value per share (cents) 9 175 9 640 10 212 Net asset value per share (excluding treasury shares) 10 128 10 615 11 258 Ordinary shares (’000s): – In issue 24 990 24 990 2
Slide 30: Summary Consolidated Statement of Financial Position
Summary consolidated interim statement of financial position – Reviewed 26 December 27 December 27 June R’000 2021 2020 2021 ASSETS Non-current assets 3 061 706 2 997 140 3 090 832 Property, plant and equipment 2 449 511 2 397 165 2 464 385 Investment property 39 960 57 924 43 007 Intangible assets
Slide 31: Summary Consolidated Statement of Cash Flows
Summary consolidated interim statement of cash flows – Reviewed Six months Six months ended ended Year ended 26 December 27 December 27 June R’000 2021 2020 2021 Cash flows from operating activities Cash generated from operations 289 910 1 195 401 1 507 716 Interest paid (82 763) (77 769) (162 502)
Slide 32: Statement of Changes in Equity and Segmental Analysis
Summary consolidated interim statement of changes in equity – Reviewed R’000 Balance at 28 June 2020 Total comprehensive income for the period Dividends paid Shares purchased by Cashbuild SA for Forfeitable Share Plan Recognition of share-based payments Balance at 27 December 2020 Total comprehensiv
Slide 33: Attributable to Owners of the Company
Attributable to owners of the company Share-based Non- Share Share payments Retained controlling capital premium reserve FCTR earnings interests Total equity 227 (274 414) 95 262 24 372 2 271 169 38 399 2 155 015 – – – (6 720) 361 932 (1 864) 353 348 – – – – (62 367) (1 980) (64 347) – (13 591) – –
Slide 34: Notes to the Summary Consolidated Interim Financial Information
Notes to the summary consolidated interim financial information 1. Basis of preparation. The summary consolidated interim financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), the presentation and disclosure requirements of IAS 34 – Interim Financ
Slide 35: Earnings per Share and Headline Earnings Reconciliation
5. Earnings per share. Earnings per share is calculated by dividing the earnings attributable to owners of the company for the period by the weighted-average number of 22 638 936 ordinary shares in issue at period-end (2020: 22 695 705 shares; June 2021: 22 641 722). 6. Headline earnings per ordinar
Slide 36: Corporate Information
Corporate information Directors Directors: AGW Knock (British) (Chairman)*, WF de Jager (Chief Executive), M Bosman (Ms)*, M Bosman (Mr)*, Dr DSS Lushaba*, AJ Mokgwatsane*, AE Prowse, GM Tapon Njamo*, SA Thoresson, WP van Aswegen (*Non-executive) Company Secretary T Nengovhela Registered Office 101