Annual General Meeting Presented by: Jannie Mouton Chairman 21 June 2013
General matters • To accept the presentation of the audited annual financial statements for the year ended 28 February 2013
Ordinary resolutions • To re-elect the following directors: – Resolution 1: Jannie Mouton – Resolution 2: – Resolution 2: Michiel le Roux Michiel le Roux – Resolution 3: Norman Celliers – Resolution 4: Antonie Jacobs 3
Ordinary resolutions • To re-appoint the following members to the audit and risk committee: – Resolution 5: – Resolution 5: Michiel le Roux Michiel le Roux – Resolution 6: George Eksteen – Resolution 7: Lambert Retief 4
Ordinary resolutions • Resolution 8: To re-appoint PwC as the auditor 5
Ordinary resolutions • Resolution 9: General authority to issue ordinary shares for cash 6
Special resolutions • Special resolution 1: Inter-company financing • Special resolution 2: • Special resolution 2: Financial assistance for the acquisition of shares in a related or inter-related company 7
Special resolutions • Special resolution 3: Share buy-back by Zeder and its subsidiaries • Special resolution 4: • Special resolution 4: Conversion of authorised and issued share capital to shares of no par value 8
Special resolutions • Special resolution 5: Increase of the authorised ordinary share capital of the company • Special resolution 6: Consequential amendments to the memorandum of incorporation of the company 9
Investor Presentation Presented by: Norman Celliers Chief executive officer 21 June 2013
Thank you. Thank you.
INTRODUCTION Our business • Long term value investor with a primary focus on Agribusiness, specifically the food and beverage sectors • Listed on the JSE – ZED - hybrid private equity vehicle • Key characteristics of investment considerations: – Growth sectors or subsectors – Management with proven track record – High barriers to entry – Unique and defendable products (brands) – Simple (easy to understand) – Scalable business models – Focused execution
INTRODUCTION Expanded strategy Historically Going forward Industry: • Agribusiness • Agribusiness • Food and Beverages • Food and Beverages Sub-sector: • Bio Fuels • Non-food (i.e. Rubber, timber) Geography: Geography: • South Africa (Direct) South Africa (Direct) • South Africa (Direct) South Africa (Direct) • Rest of World (via portfolio) • Sub-Sahara Africa (Direct) • Rest of World (via portfolio) • Arbitrage • Arbitrage Criteria: • Undervalued • Undervalued • Growth sectors • Consolidation • Passive • Passive Influence: • Active Invest in and build the businesses of tomorrow
PERFORMANCE REVIEW Summary results FY2013 2012 2013 Sum of the parts R3,084m R3,903m 26.7% Sum of the parts per share R3.15 R3.99 Recurring headline earnings R273,0m R251,1m 7.9% Recurring headline earnings per share (cents) 27.9 25.7 Headline earnings R299,9m R196,3 34.5% Headline earnings per share 30.7 20.1 Attributable earnings R334,6 R511,7 52.9% Attributable earnings per share 34.2 52.3 Dividend R39m R39m Dividend per share 4.0 4.0
PERFORMANCE REVIEW Growth in portfolio Grown from R350m tot R3,9 billion in 6,5 years • Initially acquired many small portions of undervalued shares (low P/E’s) • 4,500.00 Other financial instruments 4,000.00 Nett Cash Chayton 3,500.00 Outspan Senwes 3,000.00 3,000.00 Pioneer Pioneer Tuinroete Agri 2,500.00 BKB OVK 2,000.00 NWK Suidwes Beleggings 1,500.00 Capespan Overberg Agri 1,000.00 KLK Agricol 500.00 MGK KWV Holdings - 2006 2007 2008 2009 2010 2011 2012 2013 * End of calendar year 2012
PERFORMANCE REVIEW Investments and disposals Investments made during FY13: R538m Investments made since YE: R349m R’m R887m 500 349 277 206 250 37 17 0 0 -154 -250 Capespan Chayton ZAAD Kaap Agri AVB Other CVH -500 -750 -799 -1,000 Disposals made during FY13: R953m CVH*: R700m profit / IRR = 19.4% over 6.5 years * Includes entire shareholding and assumption that remaining 5% is sold at same price
PERFORMANCE REVIEW Portfolio weighting R’m 1,475 1,500 1,000 633 500 369 349 343 288 277 224 107 90 54 Net Liabilities 0 Capespan* Cash* Kaap Agri Overberg Chayton Suidwes Agricol NWK Other AVB CVH -301 -500 * Adjusted for transactions since yearend as published
PERFORMANCE REVIEW Portfolio interests
PERFORMANCE REVIEW Corporate and consumer brand exposure • Strong assets • Leading brands • Leading brands • Good management • Growth potential
PERFORMANCE REVIEW Historical overview SOTP & Share price TSR = 16.2% Recurring headline earnings (Cents per share) (Cents per share) 35 450 399 400 30 340 350 315 25 285 300 274 274 257 257 260 20 250 262 211 225 216 200 15 192 187 200 200 150 146 10 100 5 50 - - 2013 2006 2007 2008 2009 2010 2011 2012 Dividends per share (cents) Recurring headline earnings per share (cents) Share price (cents) SOTP value per share (cents)
MACRO ENVIRONMENT Agribusiness focus Upstream Midstream Downstream Services and support Food Beverages Primary Secondary Marketing Inputs Processing Distribution Retail production production and sales Bio Fuels Timber, Textiles, Leather, Rubber, Etc Services and support
MACRO ENVIRONMENT Growth themes
MACRO ENVIRONMENT African population growth 2000 2050 23
MACRO ENVIRONMENT African demand Source: FOA, World Bank, United Nations
MACRO ENVIRONMENT Agri-productivity • Inputs • Mechanisation • Irrigation • Finance • Technology • Management 25
PORTFOLIO REVIEW R1,475m Salient features: • Earnings under pressure – high commodity cycle • Influence ~ 30% • Significant capacity for recovery and growth • Turnover = R18,6b • Phil Roux started on 1 April 2013 (supported by strong team) • Adjusted HE = R767m • Sideways for 12 months before resuming steady growth • SA’s 2 nd largest food company DPS / HEPS DPS / HEPS Share price Share price • Listed on the JSE • Listed on the JSE (cents) (cents) 600 8000 • Four key divisions: 7000 - Sasko 500 6000 - Bokomo 400 - Ceres 5000 - Agri 300 4000 • Challenging environment 3000 200 2000 • Efficiency improvements 100 1000 • Increasingly looking into Africa 0 0 08 09 10 11 12 Recurring Adjusted HEPS Dividends Share price
PORTFOLIO REVIEW R633m Salient features: • Underlying performance encouraging • Influence = 71.2% • Presents both challenges and opportunities • Turnover = R5.2b • Increased interest from 37.3% to 71.2% since YE • Adjusted HE = R87m • Johan Dique and team implementing new strategy • Leading fruit exporting and marketing company marketing company Share price Share price DPS / HEPS (cents) (cents) • Three key divisions: 35 300 - Fruit marketing 30 - Fruit procurement 250 - Logistics 25 200 • Initial encouraging exposure to 20 China 150 15 • Solid contributions from 100 10 Mozambique 50 5 0 0 08 09 10 11 12* Recurring HEPS Dividends Share price
PORTFOLIO REVIEW R343m Salient features: • Underlying performance strong • Influence = 57% • Zeder made voluntary offer to minorities • Turnover = R3.2b • Zeder increased interest to >35% since YE • Adjusted HE = R103m • Sean Walsh and team driving strategy • Agri retail and related trade company company DPS / HEPS Share price • Three key divisions: (cents) (cents) - Trade 160 10 - Grains 9 140 - Finance 8 120 7 • Growing in South Africa and 100 6 commencing African expansion 80 5 4 60 3 40 2 20 1 0 0 08 09 10 11 12 Adjusted HEPS Dividends paid Share price
PORTFOLIO REVIEW ZAAD Holdings R368m Salient features: • ZAAD created as holding company for seed investments • Influence = 92% • Increased interest in Agricol from 25% to 92% • Acquired 49% of Klein Karoo Saad Bemarking • Turnover = R610m - KKSB = R320m • Antonie Jacobs and team driving clear growth strategy - Agricol = R290m • Combined HE Combined HE = R48m = R48m - KKSB = R17m Share price DPS / HEPS (cents) (cents) - Agricol = R31m 1,200 12,000 1,000 10,000 • Producer, marketer and distributor of a wide variety of 800 8,000 agricultural seeds 600 6,000 • Underlying performance strong 400 4,000 • Already doing business in Africa 200 2,000 and evaluating additional opportunities - - 08 09 10 11 12 13* HEPS Dividends Share price
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