Annual General Meeting Presented by: Jannie Mouton Chairman 21 - - PowerPoint PPT Presentation

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: Michiel le Roux – Resolution 2: 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: Michiel le Roux – Resolution 5: 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.

• 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

Our business INTRODUCTION

• 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

South Africa (Direct)

Historically Geography:

South Africa (Direct)

Going forward

• Agribusiness

Industry:

• Agribusiness
• Food and Beverages

Sub-sector:

• Food and Beverages
• Bio Fuels
• Non-food (i.e. Rubber, timber)

Expanded strategy INTRODUCTION

• South Africa (Direct)
• Rest of World (via portfolio)

Geography:

• South Africa (Direct)
• Sub-Sahara Africa (Direct)
• Rest of World (via portfolio)
• Arbitrage
• Undervalued

Criteria:

• Arbitrage
• Undervalued
• Growth sectors
• Consolidation
• Passive

Influence:

• Passive
• Active

Invest in and build the businesses of tomorrow

PERFORMANCE REVIEW Summary results FY2013

2012 2013 Sum of the parts Sum of the parts per share R3,084m R3.15 R3,903m R3.99 26.7% Recurring headline earnings Recurring headline earnings per share (cents) R273,0m 27.9 R251,1m 25.7 7.9% Headline earnings Headline earnings per share R299,9m 30.7 R196,3 20.1 34.5% Attributable earnings Attributable earnings per share R334,6 34.2 R511,7 52.3 52.9% Dividend Dividend per share R39m 4.0 R39m 4.0

• Grown from R350m tot R3,9 billion in 6,5 years
• Initially acquired many small portions of undervalued shares (low P/E’s)

PERFORMANCE REVIEW Growth in portfolio

3,000.00 3,500.00 4,000.00 4,500.00 Other financial instruments Nett Cash Chayton Outspan Senwes Pioneer

* End of calendar year 2012

• 500.00

1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 2006 2007 2008 2009 2010 2011 2012 2013 Pioneer Tuinroete Agri BKB OVK NWK Suidwes Beleggings Capespan Overberg Agri KLK Agricol MGK KWV Holdings

250 500

349 277 206 37 17

PERFORMANCE REVIEW Investments and disposals

R’m

Investments made during FY13: R538m Investments made since YE: R349m R887m

• 1,000
• 750
• 500
• 250
• 154
• 799

Capespan Chayton ZAAD Kaap Agri AVB Other CVH

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

1,000 1,500 1,475

R’m

Portfolio weighting PERFORMANCE REVIEW

• 500

500 633 369 349 343 288 277 224 107 90 54

• 301

AVB Capespan* Agricol Cash* Kaap Agri CVH Chayton NWK Overberg Suidwes Other Net Liabilities

* Adjusted for transactions since yearend as published

Portfolio interests PERFORMANCE REVIEW

• Strong assets
• Leading brands

Corporate and consumer brand exposure PERFORMANCE REVIEW

• Leading brands
• Good management
• Growth potential

Historical overview PERFORMANCE REVIEW

285 257 340 274 315 399 300 350 400 450 25 30 35

Recurring headline earnings (Cents per share) SOTP & Share price (Cents per share)

TSR = 16.2%

200 260 146 187 262 257 200 225 216 192 211 274

• 50

100 150 200 250

• 5

10 15 20 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)

2013

Services and support

Upstream Midstream Downstream

MACRO ENVIRONMENT Agribusiness focus

Food

Inputs Primary production Processing Secondary production Distribution Retail Marketing and sales

Services and support

Beverages Bio Fuels Timber, Textiles, Leather, Rubber, Etc

MACRO ENVIRONMENT Growth themes

2000 2050 MACRO ENVIRONMENT African population growth

23

MACRO ENVIRONMENT African demand

Source: FOA, World Bank, United Nations

• Inputs
• Mechanisation

MACRO ENVIRONMENT Agri-productivity

25

• Irrigation
• Finance
• Technology
• Management

Share price DPS / HEPS

PORTFOLIO REVIEW R1,475m

• Influence

~ 30%

• Turnover =

R18,6b

• Adjusted HE =

R767m

• SA’s 2nd largest food company
• Listed on the JSE
• Earnings under pressure – high commodity cycle
• Significant capacity for recovery and growth
• Phil Roux started on 1 April 2013 (supported by strong team)
• Sideways for 12 months before resuming steady growth

Salient features:

1000 2000 3000 4000 5000 6000 7000 8000 100 200 300 400 500 600 08 09 10 11 12

Share price (cents) DPS / HEPS (cents)

Recurring Adjusted HEPS Dividends Share price

• Listed on the JSE
• Four key divisions:
• Sasko
• Bokomo
• Ceres
• Agri
• Challenging environment
• Efficiency improvements
• Increasingly looking into Africa

PORTFOLIO REVIEW R633m

Share price

• Influence =

71.2%

• Turnover =

R5.2b

• Adjusted HE =

R87m

• Leading fruit exporting and

marketing company

• Underlying performance encouraging
• Presents both challenges and opportunities
• Increased interest from 37.3% to 71.2% since YE
• Johan Dique and team implementing new strategy

Salient features:

50 100 150 200 250 300 5 10 15 20 25 30 35 08 09 10 11 12* Share price (cents) DPS / HEPS (cents) Recurring HEPS Dividends Share price

marketing company

• Three key divisions:
• Fruit marketing
• Fruit procurement
• Logistics
• Initial encouraging exposure to

China

• Solid contributions from

Mozambique

PORTFOLIO REVIEW R343m

• Influence =

57%

• Turnover =

R3.2b

• Adjusted HE =

R103m

• Agri retail and related trade

company

• Underlying performance strong
• Zeder made voluntary offer to minorities
• Zeder increased interest to >35% since YE
• Sean Walsh and team driving strategy

Salient features:

1 2 3 4 5 6 7 8 9 10 20 40 60 80 100 120 140 160 08 09 10 11 12 Share price (cents) DPS / HEPS (cents) Adjusted HEPS Dividends paid Share price

company

• Three key divisions:
• Trade
• Grains
• Finance
• Growing in South Africa and

commencing African expansion

ZAAD Holdings R368m

• Influence =

92%

• Turnover

= R610m

• KKSB

= R320m

• Agricol

= R290m

• Combined HE

= R48m

• ZAAD created as holding company for seed investments
• Increased interest in Agricol from 25% to 92%
• Acquired 49% of Klein Karoo Saad Bemarking
• Antonie Jacobs and team driving clear growth strategy

Salient features:

PORTFOLIO REVIEW

Combined HE = R48m

• KKSB

= R17m

• Agricol

= R31m

• Producer, marketer and

distributor of a wide variety of agricultural seeds

• Underlying performance strong
• Already doing business in Africa

and evaluating additional

• pportunities
• 2,000

4,000 6,000 8,000 10,000 12,000

• 200

400 600 800 1,000 1,200 08 09 10 11 12 13* Share price (cents) DPS / HEPS (cents) HEPS Dividends Share price

PORTFOLIO REVIEW R276m

• Acquired 73.4% during 2012 / Partnership with Norfund
• Start-up company in rapid development phase
• Initial results within expectations
• Current focus to drive existing investments to scale
• Willem Meyer, Stuart Kearns, Phil Nicol
• Holding company for grain

related production operations in Sub Saharan Africa

• Currently invested in two

farming operations in Zambia

• Increased irrigated hectares from

Salient features:

2,000 4,000 6,000 4169 2011

Mkushi 420

420 2012 Mkushi 1,572

Somawhe 2,597

4,169 2013 Mkushi 1,572

Somawhe 3,197

4,769 2014 Mkushi 1,572

Somawhe 3,797

5,369 2015 Mkushi 1,572

Somawhe 4,397

5,969

Irrigated hectares

• Willem Meyer, Stuart Kearns, Phil Nicol
• Increased irrigated hectares from

420 to 4,169 in less than 18 months through development and acquisitions

• Double cropping (wheat and

soya) for local demand

• Management teams/directors at portfolio companies
• Zeder directors and team
• PSG Group

Appreciation CONCLUSION

• PSG Group
• Shareholders
• Stakeholders / Professional partners