Version 4 Date: Jan‐11 Agenda
• Group structure • Background • Share Profile • Products and Market Definition • Business Model • February 2011 Financial Review • Projects • Integrated Development Concept Calgro M3 – Subsidiary Companies
Calgro M3 Holdings Limited 2005/027663/06
Calgro M3 Calgro M3 Land (Pty) Calgro M3 Project Developments (Pty) Ltd Management (Pty) Ltd Ltd 2005/027072/07 2007/030313/07 1996/017246/07
Hightrade-Invest 60 Tres Jolie Ext 24 (Pty) (Pty) Ltd Ltd CM3 Randpark Ridge Ext 120 (Pty) Ltd MS5 Projects (Pty) Ltd 2005/027489/07 2007/019498/07 CTE Consulting (Pty) 2004/014691/07 Ltd 2005/018284/07 2007/030310/07 Business Venture Ridgewood Estate (Pty) Investments No 1244 Ltd (Pty) Ltd MS5 Pennyville (Pty) 2007/025990/07 2007/018365/07 Ltd 2005/024397/07 PZR Pennyville Zamimphilo Relocation Business Venture CM3 Witkoppen Ext (Pty) Ltd Investments No 1221 131 (Pty) Ltd 2005/027240/07 (Pty) Ltd 2005/017717/07 2007/023449/07
PZR Fleurhof (Pty) Ltd Clidet No 1014 (Pty) Ltd(Pty) Ltd 2007/0355790/7 Fleurhof Ext 2 (Pty) Ltd 2009/021563/07 2005/027248/07 (ASSOCIATE) - (ASSOCIATE) SUMMERSET Aquarella Investments Sabre Homes Projects 265 (Pty) Ltd (Pty) Ltd 2005/035305/07 2002/004007/07 (ASSOCIATE) – (ASSOCIATE) - JABULANI JUKSKEI VIEW Calgro M3 – Background
• Calgro M3 is an established property development company with a 15 year track record (established in 1995), specialising in delivering truly integrated development projects that adhere to Government’s BNG principles; • Calgro M3 has a proven track record in the RDP, Rental and Social Housing market with its highly successful Pennyville integrated project and is currently in the process of developing of two of City of Johannesburg’s premier integrated projects namely Fleurhof and South Hills, consisting of respectively 9,602 units and 4,217 units; • Calgro M3 has in addition to it’s Gauteng based projects, successfully secured the Scottsdene Integrated project in Cape Town consisting of 2,247 units; • Calgro M3 is in addition to the “Low Income Market”, a market leader in the “mid to high” income residential market and being one of the first to implement “renewable energy” measures within our projects; • Calgro M3 listed on the JSE Alt‐X in November 2007 and was the first company to list a debt programme on Yield‐X in 2008; • Calgro M3 is a Black empowered company with 25.12% BEE shareholding. Calgro M3 – Background
• Development partners include: ¾ City of Johannesburg, Department of Housing
¾ Gauteng Provincial Government, Department of Housing
¾ City of Cape Town, Department of Housing
¾ Johannesburg Social Housing Company (JOSHCO)
• Finance partners include: Calgro M3 – Background
• Development partners include: ¾ City of Johannesburg, Department of Housing ¾ Gauteng Provincial Government, Department of Housing ¾ City of Cape Town, Department of Housing ¾ Johannesburg Social Housing Company (JOSHCO) • Finance partners include: ¾ RMB ¾ FNB ¾ Standard Bank ¾ Nedbank ¾ ABSA ¾ I H S (International Housing Solutions) ¾ DBSA (Development Bank of South Africa) ¾ NHFC (National Housing Finance Corporation) Shareholding Profile
Management Freefloat ‐ BEE Freefloat
32% 43%
25% Overview ‐ Products and Market Definition
R501 000 up to R1 800 000+ title
Up to R 500 000 sectional
and
developments
title
Up to R300 000 Full Integrated Applicable subsidy Business Model
Identify project
Due diligence – Top-structure market research, construction viability studies, etc
Acquire land, Transfers to end- Turnkey Developer development users, etc funding, etc
Infrastructure (bulk Township & link, internal) Establishment
Marketing & Sales Infrastructure Projects – Pennyville
Pennyville project – 2,752 units: • Roads and storm water reticulation; • Water and sewer reticulation; • Electrical reticulation; • Pedestrian bridges; • Pennyville substation (electricity) Infrastructure Projects – Fleurhof
Fleurhof project – 9,602 units: • Roads and storm water reticulation; • Water and sewer reticulation; • Electrical reticulation; • Water reservoir; • Extension of Westlake Road – linking Soweto with northern suburbs; • Shared substation with Pennyville.
Phase 2
Feb‐10
Phase 1 Sep‐09 Financial Review
Increase
• Revenue: 49.34 % • Headline Earnings: 276.39 % • Cash Generated From Operations: 2001.41 % •Cash On Hand: 197.41 % Decrease •Borrowings: 6.37 % Financial Highlights
Debt vs Equity
500 000 000
450 000 000
400 000 000
350 000 000
300 000 000
250 000 000
200 000 000
150 000 000
100 000 000
50 000 000
‐ 2008 2009 2010 2011
Debt Debt excluding Trade payables Equity Financial Highlights
Current assets vs current liabilities 500 000 000
450 000 000
400 000 000
350 000 000
300 000 000
250 000 000
200 000 000
150 000 000
100 000 000
50 000 000
‐ 2008 2009 2010 2011
Current assets Current assets excluding inventory Current liabilities Current liabilities excluding liabilities relating to inventory Financial Review
2011 2010 2009 Group income statement Revenue 281 849 367 188 725 584 233 054 190 Gross profit 35 024 294 27 667 276 50 849 201 Gross profit % 12.43% 14.66% 21.82% Profit before tax 15 310 618 16 199 783 7 886 397 Basic earnings per share 13.34 12.19 4.74 Headline earnings per share 13.48 (7.64) 16.32 Group balance sheet Inventories 234 945 651 266 392 715 260 115 196 Construction contracts 40 646 024 32 217 439 64 389 035 Net cash position 10 913 019 (11 202 838) 14 751 364 Retained income 74 652 237 57 696 796 42 208 687 Borrowings 154 261 721 164 029 568 187 307 050 Trade and other payables 44 329 083 39 862 596 64 779 323 Group cash flows
Cash generated from operations 68 474 479 -140 184 68 474 479 Tax paid (11 764 586) (557 317) (217 696) Net cash from operating activities 24 181 500 958 979 68 239 760 Net cash from investing activities 9 221 774 (4 128 137) (30 666 214) Net cash from financing activities (11 287 417) (22 785 044) (20 625 560) Net (decrease)/increase in cash and cash 22 115 858 (25 954 202) 16 947 986 Cash and cash equivalents and bank overdraft at the (11 202 838) 14 751 364 (2 196 622) Cash and cash equivalents and bank overdraft 10 913 019 (11 202 838) 14 751 364 Non – Financial Highlights
Pennyville: • Successful completion of the project and translating experience and lessons learnt on the project into the Fleurhof and Jabulani developments;
Fleurhof: • Completing the installation of infrastructure for Ext’s 2 and 3, and receiving a section 82 certificate for Ext 2 after successfully handing over the services to the Municipal Owned Entities (MOE’s); • Completing the first units aimed at the bonded market and handing units over to end‐ users; • Entering into bulk sale agreements for social housing units for Madulamoho;
Jabulani: • Breaking ground with the installation of civil infrastructure for the Hostels and commencing construction of top‐structures; • Entering into bulk sale agreements for rental units for Diluculo in the CBD project; • Breaking ground with the installation of services on the CBD project; Non – Financial Highlights
Jukskei View: • Receiving a section 82 certificate and breaking ground on the construction of houses;
City of Cape Town: • Expanding outside of Gauteng for the first time through the award to the Group of a project developing land on behalf of the City of Cape Town into an integrated development;
Bloemfontein: • Successfully concluding a joint venture (“JV”) agreement to construct social housing units for the Free State Social Housing Company (FRESHCO) in Bloemfontein;
Development Finance: • Securing development finance in excess of R400 million for projects in a recovering market, enabling the Group to double construction revenue in the last six months of the year. Existing Projects –Integrated & Low to Medium Income Residential
Social Number of Affordable Estimated gross Project Location Type of project RDP units housing & units housing revenue GAP Johannesburg Fleurhof Integrated 9 602 2 822 4 864 1 916 R 2 280 000 000 South Soweto, Res 3 multi‐storey – Jabulani CBD 4 199 0 4 199 0 R 1 070 000 000 Johannesburg GAP and rental Jabulani Hostel Soweto, RDP & Social 500 400 100 0 R 118 000 000 Development Johannesburg Housing (CRU) Mabopane Pretoria North Affordable Housing 202 0 0 202 R 70 700 000
Jukskei View Midrand Affordable Housing 715 0 0 715 R 357 500 000 GAP, student Belhar Cape Town 3 600 0 3 600 0 R 1 030 000 000 accommodation South Hills Johannesburg Integrated 4 217 1 702 1 485 1 030 R 1 336 000 000 Scottsdene Cape Town Integrated 2 247 558 1 475 214 R 549 771 000 Brandwag Bloemfontein Social Housing 1 050 0 1 050 0 R 262 500 000 26 332 5 482 15 298 4 077 R 7 074 471 000 21% 58% 15% Completed Projects –Mid to High Income Residential Completed Projects –Mid to High Income Residential Calgro M3 –Integrated Development Concept Pennyville Ext 1 (Johannesburg South) Integrated / Mixed Use Development Project
Finance partner/s: Pennyville Integrated Development – 2,752 units (New Canada Road ‐ Johannesburg South)
RDP/BNG (freehold semi‐ 1,000 units detached)
RDP/BNG multi‐storey (3 & 4 352 units storey walk‐ups family units)
GAP, social and rental housing (3 1,400 units & 4storey walk‐ups family units)
Affordable housing (freehold 0 units freestanding family units) Pennyville Integrated Development – 2,752 units (New Canada Road ‐ Johannesburg South)
BRT Route
New Canada Station
School Pennyville Integrated Development – 2,752 units (New Canada Road ‐ Johannesburg South)
Freestanding RDP units Social Housing units 3 Storey walk‐up RDP units 2 Storey walk‐up RDP units
Bonded (GAP) or rental units Pennyville Integrated Development (New Canada Road ‐ Johannesburg South) Pennyville Integrated Development – 2,752 units (New Canada Road ‐ Johannesburg South) Fleurhof (Johannesburg South) Integrated / Mixed Use Development Project
Finance partner/s: Fleurhof Integrated Development –Unit Typology and Mix (Main Reef Road ‐ Johannesburg South)
RDP/BNG (freehold semi‐ 0 units detached)
RDP/BNG multi‐storey (3 & 4 2,822 units storey walk‐ups family units)
GAP, social and rental housing (3 4,864 units & 4storey walk‐ups family units)
Affordable housing (freehold 1,916 units freestanding family units) Fleurhof Integrated Development – 9,602 units (Main Reef Road ‐ Johannesburg South)
Existing Fleurhof township
Main Reef Rd - ± 9.8 km’s from Jhb CBD
Soweto (Meadowlands) Fleurhof Integrated Development –Phase 1 (Main Reef Road ‐ Johannesburg South) Jabulani CBD (Soweto, Johannesburg) GAP, Social & Rental Housing Project
Finance partner/s: Jabulani CBD Development –Unit Typology and Mix (Main Reef Road ‐ Johannesburg South)
RDP/BNG (freehold semi‐ 0 units detached)
RDP/BNG multi‐storey (3 & 4 0 units storey walk‐ups family units)
GAP, social and rental housing (3 4,199 units & 4storey walk‐ups family units)
Affordable housing (freehold 0 units freestanding family units) Jabulani CBD Development – 4,199 units (Bolani Road, Soweto)
Jabulani Hostel Development
Residential –ph 2 (parcel K)
Performing Arts Theatre
Residential –ph 3 (parcel A)
Residential– ph 2 (parcel C) (parcel B)
Jabulani Mall
New 300 bed hospital Jabulani CBD Development –Breaking Ground! Jabulani Hostels (Soweto, Johannesburg) Hostel Re‐Development Project
Finance partner/s: Jabulani Hostel Development –Unit Typology and Mix –Phase 1 (Main Reef Road ‐ Johannesburg South)
RDP/BNG (freehold semi‐ 0 units detached)
RDP/BNG multi‐storey (3 & 4 400 units storey walk‐ups family units)
CRU subsidized rental housing (3 100 units & 4storey walk‐ups family units)
Affordable housing (freehold 0 units freestanding family units) Jabulani Hostel Development– 1,638 units (Bolani Road, Soweto)
Existing hostel dwellings
Phase 1 Jabulani Hostel Development– 1,638 units (Bolani Road, Soweto) South Hills (Johannesburg South) Integrated Development Project (Joint Venture with )
Finance partner/s: South Hills Integrated Development – Unit Typology and Mix ( Johannesburg South)
RDP/BNG (freehold semi‐ 0 units detached)
RDP/BNG multi‐storey (3 & 4 1,702 units storey walk‐ups family units)
GAP, social and rental housing (3 1,485 units & 4storey walk‐ups family units)
Affordable housing (freehold 1,030 units freestanding family units) South Hills Integrated Development – 4,217 units (South Hills, Jhb South)
JHB CBD
Turfontein Race Course
Rosettenville The Site Hospital View (Johannesburg South) Integrated Development Project
Finance partner/s: Hospital View Integrated Development – Unit Typology and Mix ( Johannesburg South)
RDP/BNG (freehold semi‐ 0 units detached)
RDP/BNG multi‐storey (3 & 4 800 units storey walk‐ups family units)
GAP, social and rental housing (3 1,600 units & 4storey walk‐ups family units)
Affordable housing (freehold 820 units freestanding family units) Hospital View Integrated Development – 3,200 Units ( Johannesburg South) Jukskei View (Midrand) Affordable Housing Project
Finance partner/s: Jukskei View Development – Unit Typology and Mix (Midrand)
RDP/BNG (freehold semi‐ 0 units detached)
RDP/BNG multi‐storey (3 & 4 0 units storey walk‐ups family units)
GAP, social and rental housing (3 0units & 4storey walk‐ups family units)
Affordable housing (freehold 715 units freestanding family units) Jukskei View Development – 715 Units (Midrand)
Entrance Gate Brandwag (Bloemfontein) Social Housing Project (Joint Venture with Kopano)
Finance partner/s: Brandwag Social Housing Development – Unit Typology and Mix (Bloemfontein)
RDP/BNG (freehold semi‐ 0 units detached)
RDP/BNG multi‐storey (3 & 4 0 units storey walk‐ups family units)
GAP, social and rental housing (3 1,050 units & 4storey walk‐ups family units)
Affordable housing (freehold 0 units freestanding family units) Brandwag Social Housing Development – 1,050 Units (Bloemfontein) Brandwag Social Housing Development – 1,050 Units (Bloemfontein) Brandwag Social Housing Development – 1,050 Units (Bloemfontein) Scottsdene (Cape Town) Integrated Development Project
Finance partner/s: Scottsdene Integrated Development –Unit Typology and Mix (R101 – Scottsdene, Brackenfell)
RDP/BNG (freehold semi‐ 550 units detached)
RDP/BNG multi‐storey (3 & 4 0 units storey walk‐ups family units)
CRU (subsidized rental), GAP, social and rental housing (3 & 4 1,487 units storey walk‐ups family units)
Affordable housing (freehold 210 units freestanding family units) Scottsdene Integrated Development – 2,247 units (Cape Town) Scottsdene Integrated Development –Focus Area Scottsdene Integrated Development –Focus Area Scottsdene – Sectional Title, 3&4 Storey Walk‐Up‘s GAP, Rental & Social Housing ,& Affordable Housing La Vie Nouvelle (Fourways, Johannesburg) Retirement & Lifestyle Estate Project
Finance partner/s: La Vie Nouvelle Retirement and Lifestyle Estate – 388 units (Broadacres, Fourways) Summerset Place (Midrand) Sectional Title Multi‐Storey and Freestanding Mid‐ Market Housing Project
Finance partner/s: Summerset Place – 280 units (Midrand, Gauteng) Typical Units Integrated Projects Typical Unit Designs –Multi‐Storey RDP/BNG Units
Pennyville Project Pennyville Project
Typical unit size ‐ 40m² ‐ variations of 2, 3 & 4 storey walk‐ ups Pennyville Project Typical Unit Designs – Freestanding RDP/BNG Units
Pennyville Project
Typical unit size ‐ 40m² ‐ variation of freestanding and semi‐detached units
Pennyville Project Typical Unit Designs –Multi‐Storey GAP, Social & Rental Units
Typical unit sizes varies from 40m² to 85m² ‐ all family units ‐ variations of 2, 3 & 4 storey walk‐ ups Social Investment – Pennyville Créche, etc Pennyville Project – Community Pennyville Project – Community