Cashbuild Limited · JSE:CSB
Cashbuild — FY2021 Earnings Presentation
40 slides from Cashbuild's earnings presentation, 2021
Slide 1: Final Results and Dividend Declaration
2021 FINAL RESULTS AND DIVIDEND DECLARATION for the year ended 27 June 2021
Slide 2: Contents
RESULTS PRESENTATION FOR THE YEAR ENDED 27 JUNE 2021 Notes Contents 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 Financial review 5 (Cas
Slide 3: Disclaimer
RESULTS PRESENTATION FOR THE YEAR ENDED 27 JUNE 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 (Cashbuild’s) results are based
Slide 4: Nature of Business and Financial Highlights - Statutory
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 • 319 stores (263 Cashbuild, 55 P&L Hardware and 1 Cashbuild DIY) 3 Notes Financial Highlights - Statuto
Slide 5: Financial Review
01 FINANCIAL REVIEW CASHBUILD RESULTS FOR THE YEAR ENDED 27 JUNE 2021 5
Slide 6: Income Statement and Highlights
Income Statement Statutory year-on-year Audited Audited 27 Jun 2021 28 Jun 2020 R’m (52 Weeks) (52 Weeks) % change Revenue 12 616 10 091 25 Gross profit 3 390 2 525 34 Gross profit % 26.9 25.0 Operating expenses (2 351) (2 005) 17 Operating expenses % 18.6 19.9 Operating profit 1 039 520 100 Operati
Slide 7: Revenue Breakdown and Customer Transactions
Revenue Breakdown % change Cashbuild stores P&L Hardware stores R’m FY 2021 FY 2020 Total Total New Existing* Total New Existing* Quarter 1 3 317 2 712 22 24 3 21 7 3 4 Quarter 2 3 378 2 798 21 23 2 21 - 2 (2) 1st Half 6 695 5 510 21 24 2 22 4 3 1 Quarter 3 2 961 2 442 21 24 1 23 (5) 3 (8) Quarter 4
Slide 8: Average Basket Size, Gross Profit and EBIT Margin
Average Basket Size RSA Hard Lockdown 2020 Essential Trade allowed 2020 Rand All Stores Growth Q1: 1% Q2: 10% Q3: 6% Q4: 12% 890 840 790 740 690 640 590 540 490 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun * 2019 & 2020 has been smoothed for comparative 4 weeks vs 5 weeks FY2021 FY2020 FY2019 (ex
Slide 9: Segmental Disclosure and Existing Business Results
Segmental Disclosure Cashbuild P&L Hardware Cashbuild Namibia, Cashbuild Botswana, Total Group South Africa South Africa Lesotho and eSwatini Malawi and Zambia Jun Jun Jun Jun Jun Jun Jun Jun Jun Jun R’m % % % % % 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Revenue 10 154 7 919 28 1 159 1 125
Slide 10: Operating Expenses, EPS and DPS
Operating Expenses Existing % of % 27 Jun 28 Jun % stores# R’m revenue of total 2021 2020 change % change Total 18.6 100 2 351 2 005 17 15 Main Contributors: People 9.3 50 1 174 911 29 28 Advertising 1.0 3 124 141 (12) (13) Delivery 1.1 6 135 137 (1) (3) IT 0.9 5 120 107 13 12 Property 3.1 17 393 34
Slide 11: Statement of Financial Position and Inventory Analysis
Statutory Statement of Financial Position Audited Audited % R’m 27 Jun 2021 28 Jun 2020 change Assets Property, plant and equipment 1 166 1 125 4 Right-of-Use asset 1 298 1 270 2 Intangible assets 423 423 - Inventories 1 546 1 267 22 Trade and other receivables 129 104 24 Cash resources 2 546 1 952
Slide 12: Cash Flow
Cash Flow R’million 4000 W/Cap inflow R103m 3500 390 71 1 405 279 232 240 8 3000 173 180 18 2 546 2500 2000 1 952 1500 Opening Operating Inventory Debtors Creditors Interest Dividends Taxation Fixed Lease Other Closing balance cash assets payments balance Jul’20 Jun‘21 Inflow Outflow 18 Notes CASHBU
Slide 13: Product Categories
02 PRODUCT CATEGORIES CASHBUILD RESULTS FOR THE YEAR ENDED 27 JUNE 2021 19
Slide 14: Group Sales Per Week and Cement Sales
Group Sales Per Week R’million KZN and Gauteng July 2021 unrests RSA Hard Lockdown 2020 Essential Trade allowed 2020 Q1 Q2 Q3 Q4 320 280 240 200 160 120 80 40 0 W1 W4 W7 W10 W13 W16 W19 W22 W25 W28 W31 W34 W37 W40 W43 W46 W49 W52 2020 2021 2022 20 Notes Cement Sales Pockets RSA Hard Lockdown 2020 Es
Slide 15: Cement Unit Sales and Total Timber Sales
Cement Unit Sales Per Supplier Jun 2020 Dec 2020 Jun 2021 9% 10% 7% 11% 10% 12% 5% 6% 5% 5% 4% 5% 31% 29% 27% 20% 21% 19% 19% 23% 22% AFRISAM PPC CEMZA OTHER SEPHAKU MAMBA NPC 22 Notes Total Timber Sales R’million RSA Hard Lockdown 2020 Essential Trade allowed 2020 Q1 Q2 Q3 Q4 24 22 20 18 16 14 12 1
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 Q4 19 17 15 13 11 9 7 W1 W4 W7 W10 W13 W16 W19 W22 W25 W28 W31 W34 W37 W40 W43 W46 W49 W52 2020 2021 2022 24 Notes Total Roof Covering Sales R’million RSA Hard Lockdown 2020 Essential Trade allowed 2020 Q1 Q2 Q3
Slide 17: Total Opening Sales and Decorative Sales
Total Opening Sales R’million RSA Hard Lockdown 2020 Essential Trade allowed 2020 Q1 Q2 Q3 Q4 30 28 26 24 22 20 18 16 14 12 10 W1 W4 W7 W10 W13 W16 W19 W22 W25 W28 W31 W34 W37 W40 W43 W46 W49 W52 2020 2021 2022 26 Notes Total Decorative Sales R’million RSA Hard Lockdown 2020 Essential Trade allowed
Slide 18: Store Development and Summary
03 STORE DEVELOPMENT AND SUMMARY 28 CASHBUILD RESULTS FOR THE YEAR ENDED 27 JUNE 2021
Slide 19: Store Development and New Stores FY2021
Store Development Total Cashbuild Stores (excl DIY) Total P&L Hardware Stores 256 263 60 59 61 251 255 242 9 9 8 46 2 3 11 14 1 12 4 246 248 254 57 58 54 230 240 46 42 June 2017 June 2018 June 2019 June 2020 June 2021 June 2017 June 2018 June 2019 June 2020 June 2021 Existing Cashbuild stores New Ca
Slide 20: Stores by Location and Sales by Province
Stores by Location Number of stores Jun 2021 (Jun 2020) Location Town- Town Rural Metro (% of total) ship 85 (85) 2021 Stores 34% 30% 27% 9% 30 (28) 97 (99) 2021 Sales 35% 29% 26% 10% 107 (106) 2020 Stores 33% 31% 27% 9% 2020 Sales 35% 30% 25% 10% 31 Notes Sales by Province % of Total sales 3.0% 2.6
Slide 21: Competitor Landscape and Subsequent to Year End
Competitor Landscape Corporate Competitors Independent Competitors – R50 billion market – R30 billion market 33 Notes Subsequent to year end • Violent protests and looting mid-July, mainly in Gauteng and KwaZulu-Natal • 36 stores (32 Cashbuild and 4 P&L) looted and damaged – 12% of store base • Addi
Slide 22: Changes to the Board and Market Summary
Changes to the Board Melanie Bosman Abey Mokgwatsane Independent Non – Executive Director Independent Non – Executive Director Effective: 1 August 2021 Effective: 1 August 2021 Melanie is a CA(SA) and runs a consulting practice Abey is currently the Managing Executive of Brand and focused on the fin
Slide 23: 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 24: Notes
Notes CASHBUILD RESULTS FOR THE YEAR ENDED 27 JUNE 2021
Slide 25: Financial Results
04 FINANCIAL RESULTS CASHBUILD RESULTS FOR THE YEAR ENDED 27 JUNE 2021 39
Slide 26: Financial Highlights
Financial highlights REVENUE (Rm) HEADLINE EARNINGS (Rm) revenue 15 000 700 600 650 13 000 12 616 11 000 500 10 821 10 207 464 400 10 091 9 730 9 000 434 424 259 7 000 300 5 000 200 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 OPERATING PROFIT (Rm) SPACE GROWTH (stores) 1 100 320 319 318 318 31
Slide 27: Summary Consolidated Income Statement - Audited
Summary consolidated income statement – audited Year ended Year ended 27 June 2021 28 June 2020 % R’000 (52 weeks) (52 weeks) change Revenue 12 615 629 10 090 910 25 Cost of sales (9 226 014) (7 565 860) 22 Gross profit 3 389 615 2 525 050 34 Selling and marketing expenses (1 995 881) (1 765 022) 13
Slide 28: Summary Consolidated Statement of Comprehensive Income
Summary consolidated statement of comprehensive income – audited Year ended Year ended 27 June 2021 28 June 2020 R’000 (52 weeks) (52 weeks) Profit for the year 670 087 272 670 Other comprehensive income reclassifiable to profit or loss: Total movement in foreign currency translation reserve (FCTR)
Slide 29: Additional Information
Additional information Year ended Year ended R’000 27 June 2021 28 June 2020 Net asset value per share (cents) 10 212 8 470 Net asset value per share (excluding treasury shares) 11 258 9 315 Ordinary shares ('000s): – In issue 24 990 24 990 – Weighted-average 22 642 22 722 – Diluted weighted-average
Slide 30: Summary Consolidated Statement of Financial Position
Summary consolidated statement of financial position – audited R’000 27 June 2021 28 June 2020 ASSETS Non-current assets 3 090 832 2 974 780 Property, plant and equipment 2 464 385 2 394 577 Intangible assets 423 464 423 101 Investment in associate 30 000 – Investment property 43 007 57 924 Deferred
Slide 31: Summary Consolidated Statement of Cash Flows
Summary consolidated statement of cash flows – audited Year ended Year ended 27 June 2021 28 June 2020 (52 weeks) (52 weeks) Cash flows from operating activities Cash generated from operations 1 507 716 2 108 499 Interest paid (162 502) (191 518) Interest received – non-investing 11 800 Taxation pai
Slide 32: Statement of Changes in Equity and Segmental Analysis
Summary consolidated statement of changes in equity – audited R’000 Balance at 30 June 2019 Total comprehensive income for the year Dividends paid Recognition of share-based payments Balance at 28 June 2020 Total comprehensive income for the year Shares purchased by Cashbuild South Africa for the Fo
Slide 33: Attributable to Owners of the Company
Attributable to owners of the company Share-based Non- Share Share payments Retained controlling Total capital premium reserve FCTR earnings interests equity 227 (274 414) 79 137 2 149 2 200 776 30 699 2 038 574 – – – 22 223 267 371 8 958 298 552 – – – – (196 978) (1 258) (198 236) – – 16 125 – – –
Slide 34: Commentary
Commentary Nature of business Cashbuild is southern Africa’s leading retailer of quality building materials and associated products, selling direct to a cash- paying customer base through our chain of stores (319 at the end of this financial year which includes one DIY store and 55 P&L Hardware stor
Slide 35: Prospects
Cash and cash equivalents increased to R2 546 million mainly driven by increased profitability. Creditors’ balances are higher due to supplier deliveries normalising from the low base a year ago post lockdown. Stock levels, including new stores have increased by 22% with stockholding at 74 days (Jun
Slide 36: Notes to the Summary Consolidated Financial Information
Notes to the summary consolidated financial information 1. Basis of preparation The summary consolidated annual financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), the presentation and disclosure requirements of IAS 34 – Interim Financial Report
Slide 37: Earnings per Share, Headline Earnings and Events After the Reporting Period
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 22 641 712 ordinary shares in issue at period-end (June 2020: 22 722 350 shares). 6. Headline earnings per ordinary share The calcula
Slide 38: Corporate Information
Corporate information 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 Takie Nengovhela Registered Office 101 Norther
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Slide 40: www.cashbuild.co.za
(Cashbuild www.cashbuild.co.za