Remgro Limited · JSE:REM
Remgro — FY2022 Earnings Presentation
46 slides from Remgro's earnings presentation, Sep 27, 2022
Slide 1: Results Presentation for the Year Ended 30 June 2022
RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2022 27 September 2022
Slide 2: Contents
Results presentation for the year ended 30 June 2022 CONTENTS 1 Setting the scene 2 Results in context 3 Delivery on our strategy 4 Results for the year 5 Closing comments and Q&A 2
Slide 3: Setting the scene
Setting the scene
Slide 4: Economic indicators: the effect on our portfolio
Results presentation for the year ended 30 June 2022 Economic indicators: the effect on our portfolio Interest rates Food inflation (YoY) ▪ Higher interest charge ▪ High food inflation and 7 12 14 through the period due 11.3 implications of steep 6.25 12 to higher rates 10 10.1 commodity prices 6 10
Slide 5: Results in context
Results in context
Slide 6: Strong earnings recovery above pre-pandemic levels
Results presentation for the year ended 30 June 2022 Strong earnings recovery above pre-pandemic levels Year ended Year ended 30 June 22 30 June 21 % change Headline earnings per share (HEPS) (Rand) 11.51 5.11 ▲125.3 Ordinary dividend per share (Rand) 1.50 0.90 ▲66.7 - Interim dividend 0.50 0.30 ▲66
Slide 7: Taking stock: a tale of our recovery path
Results presentation for the year ended 30 June 2022 Taking stock: a tale of our recovery path 7 000 125.1% 6 494 6 000 5 551 # 59.7% 5 000 Covid-19 impact Full Covid-19 impact on portfolio on Mediclinic 4 000 3 345 3 007 3 149 2 952 29.0% 2 885 R million 3 000 2 544 2 237 # 2 000 1 398 1 487 1 000
Slide 8: Headline earnings reconciliation
Results presentation for the year ended 30 June 2022 Headline earnings reconciliation 7 000 821 6 494 6 000 246 262 495 ↑ 38% 5 000 482 ↑ 144% 593 ↑ 1 414% 4 000 710 ↑ 111% R million 2 885 ↑ 88% 3 000 ↑ 194% 2 000 1 000 - Headline Total- Mediclinic CIVH Grindrod & KTH Central Other Headline earnings
Slide 9: Delivery on our strategy
Delivery on our strategy
Slide 10: Imagining Remgro of the future
Results presentation for the year ended 30 June 2022 Imagining Remgro of the future GROW TRIPLE BOTTOM LINE SUSTAINABLY Unlock value Efficient capital allocation Sustainability drive STAKEHOLDER ENGAGEMENT Focus on turnaround and Deploy capital efficiently in the Integrate ESG and Key catalyst growt
Slide 11: Executing on our strategic priorities
Results presentation for the year ended 30 June 2022 Executing on our strategic priorities Unlocking value Unlocking value by Strategic partnerships Unlocking value through addressing structural for growth in our core through restructuring unbundling/disposal inefficiencies assets assets for recover
Slide 12: Capital allocation in line with strategic focus
Results presentation for the year ended 30 June 2022 Capital allocation in line with strategic focus Material investment activities during the year under review and material events after year-end Mediclinic Transaction detail Mediclinic shareholder voting result • 4 August 2022 – announcement of rec
Slide 13: Capital allocation in line with strategic focus
Results presentation for the year ended 30 June 2022 Capital allocation in line with strategic focus Material investment activities during the year under review and material events after year-end (continued) (continued) RMI Distell RMI • 20 September 2021 - RMI announced its decision to unbundle Dis
Slide 14: Capital allocation in line with strategic focus
Results presentation for the year ended 30 June 2022 Capital allocation in line with strategic focus Material investment activities during the year under review and material events after year-end (continued) (continued) CIVH FirstRand CIVH • July 2021 - Remgro subscribed for 67 364 shares in CIVH fo
Slide 15: Capital allocation in line with strategic focus
Results presentation for the year ended 30 June 2022 Capital allocation in line with strategic focus Material investment activities during the year under review and material events after year-end (continued) (continued) Grindrod Shipping Grindrod Limited Grindrod Shipping • 25 November 2021 - Remgro
Slide 16: Capital allocation in line with strategic focus
Results presentation for the year ended 30 June 2022 Capital allocation in line with strategic focus Material investment activities during the year under review and material events after year-end (continued) (continued) Invenfin PRIF Invenfin (a wholly owned subsidiary of Remgro) Ad Dynamo Proprieta
Slide 17: Capital allocation in line with strategic focus
Results presentation for the year ended 30 June 2022 Capital allocation in line with strategic focus Material investment activities during the year under review and material events after year-end (continued) (continued) Asia Partners Milestone China Funds Asia Partners Asia Partners I LP (Asia Partn
Slide 18: ESG and sustainability highlights: what have we achieved?
Results presentation for the year ended 30 June 2022 ESG and sustainability highlights: what have we achieved? Incorporated ESG and sustainability in all committee mandates and Board Charters Established Board-level governance mechanisms for ESG and sustainability matters Initiated a Strategic ESG C
Slide 19: ESG priorities going forward
Results presentation for the year ended 30 June 2022 ESG priorities going forward ✓ More impactful ESG outcomes through investee companies ✓ Intentionally influence investee companies to accelerate ESG impact at a Group level Measurable targets to influence identified investee companies to: ❖ Develo
Slide 20: Results for the year
Results for the year
Slide 21: Contribution to headline earnings
Results presentation for the year ended 30 June 2022 Contribution to headline earnings Year ended Year ended 30 June 30 June % R million 2022 2021 change Mediclinic Increased EBITDA margin and revenue, margins still lagging pre-pandemic levels 1 267 674 88.0 TotalEnergies Favourable stock revaluatio
Slide 22: Intrinsic Net Asset Value: Material Investee Companies
Results presentation for the year ended 30 June 2022 Intrinsic Net Asset Value: Material Investee Companies R million 30 June 2022 30 June 2021 % Change % Contribution Mediclinic 29 568 19 358 52.7 23.8 CIVH 13 756 12 054 14.1 11.1 RMI { Discovery and Momentum Metropolitan 19 918 { 13 069 6 849 14 7
Slide 23: Contribution by platform
Results presentation for the year ended 30 June 2022 Contribution by platform Headline earnings* Intrinsic NAV* Jun 2022 (outer)** Jun 2022 (outer) Healthcare Jun 2021 (inner)*** 0.1% Jun 2021 (inner) 6.2% 12.6% 2.5% Consumer products 1.3% 17.7% 0.8% 25.2% 5.5% Financial services 8.4% 0.1% 1.2% 15.0
Slide 24: Healthcare
Results presentation for the year ended 30 June 2022 Healthcare Headline earnings Intrinsic value Remgro Year ended FY22 vs FY21 Year ended FY22 vs FY20 Year ended As at As at R million interest 30 Jun 22 % change 30 Jun 21 % change 30 Jun 20 30 Jun 22 30 Jun 21 % change Mediclinic 44.6% 1 267 88.0
Slide 25: Consumer products
Results presentation for the year ended 30 June 2022 Consumer products Headline earnings Intrinsic value Remgro Year ended Year ended As at As at R million interest 30 Jun 22 30 Jun 21 % change 30 Jun 22 30 Jun 21 % change Distell 31.7% 724 491 47.5 11 969 11 665 2.6 Entity contribution 735 538 36.6
Slide 26: Consumer products | Siqalo Foods
Results presentation for the year ended 30 June 2022 Consumer products | Siqalo Foods Year ended Year ended R million 30 Jun 22 30 Jun 21 % change Revenue 3 546 3 088 14.8 Operating profit 476 498 (4.4) Headline earnings Intrinsic value 450 7 500 1.0% 400 405 7 000 7 277 401 350 12.8% 6 500 300 R Mi
Slide 27: Consumer products | Siqalo Foods
Results presentation for the year ended 30 June 2022 Consumer products | Siqalo Foods Palm Oil start price $598 (1 Jul 2020) – Peak price $2 136 (1 Mar 2022) - Closing price $887 (19 Sep 2022) 2 500 2 000 1 500 $ 1 000 500 0 Jul 20 Sep 20 Nov 20 Jan 21 Mar 21 May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 2
Slide 28: Financial services
Results presentation for the year ended 30 June 2022 Financial services Headline earnings Intrinsic value Remgro Year ended Year ended As at As at R million interest 30 Jun 22 30 Jun 21 % change 30 Jun 22 30 Jun 21 % change RMI 30.6% 796 898 (11.4) 13 069 14 713 (11.2) Business Partners 44.1% 70 23
Slide 29: Infrastructure
Results presentation for the year ended 30 June 2022 Infrastructure Headline earnings Intrinsic value Remgro Year ended Year ended As at As at R million interest 30 Jun 22 30 Jun 21 % change 30 Jun 22 30 Jun 21 % change CIVH 57.0% 47 (435) 110.8 13 756 12 054 14.1 Grindrod 25.9% 263 16 1 543.8 1 559
Slide 30: Infrastructure | CIVH
Results presentation for the year ended 30 June 2022 Infrastructure | CIVH CIVH (Consolidated) Year ended Year ended* R million 31 Mar 22 31 Mar 21 % change Revenue 5 324 4 639 14.8 Operating profit 1 470 955 53.9 Headline earnings / (loss) 81 (797) 110.2 Headline earnings Intrinsic value 100 16 000
Slide 31: Infrastructure | CIVH (Vumatel and DFA)
Results presentation for the year ended 30 June 2022 Infrastructure | CIVH (Vumatel and DFA) Vumatel (Consolidated) Year ended Year ended R million 31 Mar 22 31 Mar 21 % change Revenue 2 981 2 360 26.3 Operating profit 953 637 49.6 Headline earnings / (loss) 261 (57) 557.9 DFA (Consolidated) Year en
Slide 32: Industrial
Results presentation for the year ended 30 June 2022 Industrial Headline earnings Intrinsic value Remgro Year ended Year ended As at As at R million interest 30 Jun 22 30 Jun 21 % change 30 Jun 22 30 Jun 21 % change Air Products 50.0% 422 322 31.1 4 690 4 523 3.7 TotalEnergies 24.9% 1 076 366 194.0
Slide 33: Industrial | unlisted portfolio performance
Results presentation for the year ended 30 June 2022 Industrial | unlisted portfolio performance Air Products Year ended Year ended R million 31 Mar 22 31 Mar 21 % change Revenue 3 990 3 222 23.8 Operating profit 1 185 898 32.0 TotalEnergies Year ended Year ended R million 30 Jun 22 30 Jun 21 % chan
Slide 34: Diversified investment vehicles
Results presentation for the year ended 30 June 2022 Diversified investment vehicles Headline earnings Intrinsic value Remgro Year ended Year ended As at As at R million interest 30 Jun 22 30 Jun 21 % change 30 Jun 22 30 Jun 21 % change KTH 43.5% 80 (182) 144.0 2 145 2 044 4.9 Other diversified inve
Slide 35: Diversified investment vehicles | KTH
Results presentation for the year ended 30 June 2022 Diversified investment vehicles | KTH Headline earnings Intrinsic value 100 2 200 4.9% 80 60 80 2 145 40 2 000 2 044 20 - 1 800 R Million (20) R Million (40) 144.0% (60) 1 600 (80) (100) 1 400 (120) (140) (160) 1 200 ( 182) (180) (200) 1 000 30 Ju
Slide 36: Other investments, treasury and corporate costs
Results presentation for the year ended 30 June 2022 Other investments, treasury and corporate costs Headline earnings Intrinsic value Year ended Year ended As at As at R million 30 Jun 22 30 Jun 21 % change 30 Jun 22 30 Jun 21 % change Media 178 53 235.8 888 753 17.9 Portfolio investments 444 247 7
Slide 37: Relative market performance
Results presentation for the year ended 30 June 2022 Relative market performance As at As at As at 23 Sep 22 30 Jun 22 30 Jun 21 % change Discount to intrinsic value 42.0% 39.0% 35.4% (360 bps) Intrinsic value per share – after tax (Rand) 221.69 213.10 177.33 ▲20.2% Closing share price (Rand) 128.48
Slide 38: Cash and debt at the centre
Results presentation for the year ended 30 June 2022 Cash and debt at the centre 30 June 30 June R million % of total 2022 2021 Local cash 79.8 9 796 7 496 Offshore cash 20.2 2 484 2 210 US$ 146.8m (@ R16.30/US$) (2021: US$151.0m @ R14.28/US$) 19.5 2 392 2 157 GB£ 1.4m (@ R19.63/GB£) (2021: GB£1.5m
Slide 39: Cash flow at the centre for the year ended June 22
Results presentation for the year ended 30 June 2022 Cash flow at the centre for the year ended 30 June 2022 8 000 299 7 000 511 2 679 6 000 5 000 (2 444) * R million 4 000 3 429 # (621) 3 000 (610) 2 574 (532) (137) 2 000 1 000 - Investments Dividends Interest Exchange Investments Dividends Finance
Slide 40: Dividends received at the centre
Results presentation for the year ended 30 June 2022 Dividends received at the centre Actual Actual Actual R million 30 Jun 2020 30 Jun 2021 30 Jun 2022 Listed 2 198 529 1 065 RMI - ordinary dividends 516 106 216 FirstRand 655 191 389 Mediclinic 479 - - RCL Foods 169 176 321 Distell 295 - - Other li
Slide 41: Cash dividends received (continuing operations)
Results presentation for the year ended 30 June 2022 Cash dividends received (continuing operations) 3 000 2 727 2 679 * 74.8% 2 500 529 947 2 000 43.8% 1 533 R million 1 500 2 198 1 004 1 000 1 732 * 500 529 - 2020 2021 2022 Financial year ended 30 June Listed Unlisted * Including RMI special divid
Slide 42: Headline earnings and dividends received
Results presentation for the year ended 30 June 2022 Headline earnings and dividends received 7 000 6 494 6 000 5 551 # 125.1% 5 000 59.7% 4 000 R million 2 727 2 885 3 000 29.0% 2 997 9.0% 31.2% 2 000 2 237 # 43.8% 2 012 * 1 000 1 533 - 2019 2020 2021 2022 Financial year ended 30 June Headline earn
Slide 43: Cash dividend
Results presentation for the year ended 30 June 2022 Cash dividend 200 180 66.7% 160 150 140 Cents per share 120 Last day to trade Tuesday, 8 Nov 2022 100 90 66.7% 100 Shares trade ex dividend Wednesday, 9 Nov 2022 Record date Friday, 11 Nov 2022 80 Payment date Monday, 14 Nov 2022 60 60 40 20 66.7%
Slide 44: Closing comments and Q&A
Closing comments and Q&A
Slide 45: Macro outlook - Emerging Markets, Developed Markets and RSA
Results presentation for the year ended 30 June 2022 Macro outlook - Emerging Markets, Developed Markets and RSA Index performance 30% 20% 10% 0% -10% -20% -30% Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 MSCI South Africa Index MSCI World Index MSCI EM (Emerg
Slide 46: Imagining Remgro of the future
Results presentation for the year ended 30 June 2022 Imagining Remgro of the future Imagining Remgro of the 1 Commitment to strategic priorities, Remgro’s sustainability journey & values driven ethos future PURPOSE 2 Portfolio optimisation through execution of transformative corporate actions To sha