Slides
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Setting the Scene Key objectives for today 1. Remind investors of Remgro’s evolution to date Portfolio Composition 31 Dec 2024 2 2. Unpack Remgro’s focus areas going forward 3. Provide a deeper understanding of key components of the portfolio Consumer Products 15% Industrial 8% Diversified Investment Vehicles 6% Cash 5% Healthcare 26% Infrastructure 10% Financial Services 30%
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Partner. Reignite. Grow. 1. Remgro: Partnering for South Africa’s Prosperity 2. Building blocks supporting our vision 3. Our Portfolio Evolution 4. Performance Snapshot 5. Strategic Priorities 6. Conclusion: Partner . Reignite. Grow.
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“To shape the future and partner for South Africa’s prosperity” Our purpose
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1. Remgro: Partnering for South Africa’s prosperity Founded in 1948 by Dr Anton Rupert 77 years of trusted partnerships Enduring values Incubation and value creation Described then by Dr Rupert as a ‘club of entrepreneurs’ - Remgro is rooted in long term trust, value creation and collaborative growth. Remgro’s purpose, “to shape the future and partner for South Africa’s prosperity” remains the driver to being the values-led business that it is. Founding partner of various household names in South Africa. Successfully partnered to incubate from start-up, grow and list / unbundle various South African powerhouses. 5
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1. Remgro: Partnering for South Africa’s prosperity 77 years of trusted partnerships 1948 1954 1980 1981 1983 1988 1989 1993 1996 1998 19992001 2007 20122018 2023 CIVH Rembrandt HOLDINGS 2000 2013 6
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• Multi-sector focus 35 commercial investments across Healthcare, Financial Services, Consumer Products, Infrastructure and Industrial sectors. T op 10 investments represent c.90% of portfolio value. • Innovation and impact 15 venture capital investments and 4 social impact investments. • Pillar in SA economy The Remgro Group of companies: - provides 80,000+ jobs - contributes c.R40 billion in annual taxes A diversified Investment Holding Company driving growth, innovation & impact 7
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1. Remgro: Partnering for South Africa’s prosperity Tangible progress on stated reforms fortifying economic performance International macro impacting SA South Africa faces a tug-of- war between global uncertainty and local reform. Government and business remain focused on growth, through the acceleration of interventions in energy, logistics, infrastructure, crime, corruption & employment Ministerial oversight is driving an improved outlook for both Eskom and Transnet, moving South Africa from 332 days of loadshedding in 2022 to over 260 consecutive days of no loadshedding in 2024 Muted growth continues to be a risk amongst the threat of global trade wars, however, as an allocator of patient capital, Remgro is well positioned to continue to add value to the SA economy Positive headlines Source: RMBMS “South African Economics: “Monthly Round up” Mary Curtis, 1 April 2025” Signals of positive reform Remgro’s unique positioning Over its 77-year history, Remgro has witnessed South Africa’s economic evolution – with periods ranging from rapid growth to stagnation and structural shifts. Our view has always been long term and through the cycle . Macro data momentum 8
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2. Building blocks supporting our vision “To be the trusted investment company of choice that consistently creates sustainable stakeholder value” Our vision Active, engaged and deeply trusted partners in business A diversified portfolio of unique, high barrier to entry assets offering growth and resilience A proven track record of partnering with great entrepreneurs and businesses for growth Patient capital, a strong balance sheet and firepower for capital allocation Sizeable deal flow but focused on limited, core investments Uniquely positioned in the Southern African landscape for investments of scale Solid, stable shareholder base with family values Strong reputation of integrity and loyalty Underpinned by the DNA of our Value proposition 9
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Portfolio Features 30 June 2019 31 Dec 2024 Percentage of portfolio private assets: (value through scarcity of differentiated assets) 23% 63% Percentage of portfolio owned with global partners: (attracting premium partners to drive growth) 5% 38% Gearing on Balance Sheet: (balance sheet resilience) (R14bn) R0bn Percentage discount to INAV: 19% 44% Transformative corporate actions for portfolio evolution: • FSR and RMI unbundling • Merging of Distell and Heineken SA • Privatisation of Mediclinic Group • Grindrod unbundling and Shipping disposal • FirstRand and MMH disposals 3. Portfolio evolution A refined portfolio through transformative corporate actions 10
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58% 35% 8% Sources of Capital Cash Investment Income Investments realised Sources and Uses of Capital: Jun 2019 – Dec 2024 3. Portfolio evolution Positive cash generation utilised to deleverage and enhance balance sheet resilience 32% 20% 1% 19% 16% 5% 4% 4% 0. 0 10. 0 20. 0 30. 0 40. 0 50. 0 60. 0 70. 0 80. 0 Uses of Capital Taxation Corporate costs and Other Finance costs Dividends paid + repurchases Debt repaid Investments made: New Investments made: Follow-on Assets returned to shareholders (FSR, GND) 11 R80bn (R80bn)
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4. Performance Snapshot Share price reflection 14.1% 4.1% 31.7% 19.0% 9.4% 22.9%22.3% 10.1% 28.6% 18.7% 8.2% 22.9% 0% 5% 10% 15% 20% 25% 30% 35% 5Yr 3Yr 1Yr Total return (%) Remgro All Share Fin 15 Capped Swix Positive signals in short term performance *calculated on the assumption that the underlying unbundled shares were retained 5 Year IRR to shareholders including unbundled shares 20,5%* 31 March 2025 12
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4. Performance Snapshot Dividend history 30 50 80 80 96 60 100 160 184 0 50 100 150 200 250 300 30 June 2021 30 June 2022 30 June 2023 30 June 2024 30 June 2025 Dividend History (cents per share) Interim Final Steady dividend growth since 2021 13
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4. Performance Snapshot Strategic focus to improve rating through earnings and cash flow growth Discount to iNAV remains stubbornly high… 0 5000 10000 15000 20000 25000 30000 35000 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Apr-21 Oct-21 Apr-22 Oct-22 Apr-23 Oct-23 Apr-24 Oct-24 Cents Remgro Share Price Intrinsic Value per Share ex-BAT on 28/10/2008 ex-RMH on 08/06/2020 RMI unbundling 25/04/2022 10 year = 27.4% 5 year = 38.5% 3 year = 40.8% 1 year = 44.7% Average discount: …despite decreasing valuation multiples for major unlisted assets * LTM average comparable peer multiples for Dec 2024 12.0x 11.4x 10.7x 9.7x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x Jun-23 Dec-23 Jun-24 Dec-24 Mediclinic *10.4x 15.1x 10.5x 0 2 4 6 8 10 12 14 16 HeinBev *9.9x 10.3x 10.2x 8.5x 8.5x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x Jun-23 Dec-23 Jun-24 Dec-24 Siqalo *8.1x*10.4x Historic EV/EBITDA multiples 14 10.9x 9.7x 10.6x 10.1x 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x Jun-23 Dec-23 Jun-24 Dec-24 CIVH
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-2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% Dividend Yield % Earnings Yield % ` 4. Performance Snapshot Highest priority is to get the whole portfolio to contribute to earnings and cashflows 20% of the portfolio 15
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LOOKING FORWARD
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5. Strategic Priorities Unlocking Sustainable growth • Continue on the path of more active involvement where required • Close partnerships with management and co- shareholders to drive improved performance • Sweat the assets we have, back the businesses we know and the teams that we trust • Continued disciplined capital allocation: managing current priorities and trade offs • Refreshed business development: research-led, focused on people and our “right to win” • Continue on the path of simplifying the portfolio • Continued Sustainability drive to position as an industry ESG leader • Continue journey of improved disclosure, transparency and stakeholder engagement • Continue to invest effort in improving SA Inc as an investment destination 1 Active Performance Optimisation 2 Considered Capital Allocation 3 Lead Sustainable Businesses 17
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Delivering on our strategic priorities through people and partnerships • Our investment management philosophy is adapting alongside the evolution of our portfolio • Intentional organisational enhancements (structure, processes, talent) implemented, to: • Strengthen the role we play as trusted business partners to our investee management teams and co-shareholders • Sharpen our focus to deliver on stated portfolio objectives • Enhance depth of skills, with diversity of experience and backgrounds • Leverage our unique networks, partnerships and resources to unlock potential in each investment • Introduce greater urgency and bias for action in pursuing objectives 5. Strategic Priorities Active performance optimisation: An evolving management philosophy 18
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5. Strategic Priorities Active performance optimisation: Rainbow Chicken case study 5.0% 3.2% 8.5% 4.0% 0.2% 0.1% 3.0% 0.3% 4.4% 7.4% 0. 0% 1. 0% 2. 0% 3. 0% 4. 0% 5. 0% 6. 0% 7. 0% 8. 0% 9. 0% - 2 000.0 4 000.0 6 000.0 8 000.0 10 000.0 12 000.0 14 000.0 16 000.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 interim margin Rainbow Chicken revenue and EBITDA margin summary Revenue EBITDA margin Driving Active Performance Optimisation: • Pureplay, Chicken focused management team introduced to accelerate turn-around strategy (“Chicken People Doing Chicken Things”) • Accelerated Strategic review for fit within RCL Foods (decision taken to separate from Value-add branded portfolio) • Intensified focus on Turn-around strategy – Focus on brilliant basics and measurable KPIs (across the entire value chain) – Refreshed Strategy, clearly linked to financial business plan – Accelerated bold decisions (Genetics, Decentralisation of structures, ownership mentality) – Aligned leadership and incentives (“One team, one dream”) – Optimised Capital structure Interim R’m 19
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5. Strategic Priorities Disciplined capital allocation: Managing current priorities and trade offs Current priority Alternative uses of Capital Context on current posture Opportunity cost of not prioritising RESILIENCE AND PORTFOLIO SUPPORT CASH DIVIDENDS • Specific situations of high gearing and performance challenges • Uncertainties, unresolved corporate action • Consistently important part of Remgro’s thesis • Investors can reinvest cash dividend • Material destruction of shareholder value • Betrayal of fundamental tenet of Remgro thesis FOLLOW ON STRATEGIC INVESTMENTS REPURCHASES • Situation specific, e.g. opportunity to take Mediclinic private • Current deep discount to iNAV makes this attractive • Opportunities may not present again • 0.3% iNAV accretion (relative to normalised discount) per R1bn spent NEW INVESTMENTS • Attractive valuation and high conviction assets • Opportunity of accelerated growth 1 2 3, 4, 5 DEBT REPAYMENTS • Until recently a high priority, balance sheet now ungeared • Currently N/A6 Dynamic 20
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5. Strategic Priorities Disciplined capital allocation: Capital Market’s “No Man’s Land” Average daily value traded 650 380 2000 2024 Number of JSE listed companies Source: Bloomberg, CapIQ Remgro is uniquely positioned in a space within the market where we believe the biggest opportunity exists • Private equity players focused on smaller deals: – Number of transaction and size of deals decreased over the past 15 years (ex infrastructure, property, energy & mining). – Zero PE deals above R5bn in last 5 years – Average observed deal size <R1bn • Significant reduction in listings on the JSE • Low liquidity levels for mid-cap companies (too low for major investors) • Result: no natural home for mid-cap South African companies Source: CapIQ, Catalyst Publication and Remgro internal research 454 14 Top 40 Value R5bn-R15bn Market Cap Rm 4 11 0 5 R5bn plus per deal R1bn + per deal PE Investments made in South Africa (excluding Energy, Infrastructure, Property and Mining) 2006-2010 2020-2024 * * 30-Day median daily value of shares traded, as at 4th April 2025 21
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5. Strategic Priorities Refreshed Business development: Aimed at optimising risk/return trade-offs Through Investees At the Centre Organic Partnership Mergers & Acquisitions Organic Partnership Mergers & Acquisitions South Africa Strongest risk mitigations Rest of Africa Rest of World Weakest risk mitigations Focus on where we have a “right to win”, via established platforms and high conviction opportunities Our Partnership philosophy mitigates meaningful geographic risk, particularly alongside investees A disciplined and cautious approach to opportunities in new markets and verticals 22
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Pillar 1: Sustainable investment stewardship Being a responsible investment partner Driving ESG and sustainability improvements through investment stewardship Pillar 2: ESG action across Remgro Group Driving the implementation of initiatives to improve groupwide performance in the 9 key ESG focus areas Establishing a performance measurement and reporting framework for the Group Pillar 3: Unlocking shared value for South Africa Drive for inclusive socio- economic development, transformation and empowerment Continue to empower communities Objective: Our goal is to be a leader in the development of ESG and corporate sustainability in South Africa by making it integral to our business Underpinned by 9 key focus areas: Climate change and energy, Water, Waste, Diversity, Equity and Inclusion, Social impact, Employee relations, Health and safety, Supply chain and procurement, and Governance 5. Strategic Priorities: ESG Remgro’s journey to leading sustainable businesses and investing responsibly 23
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5. Strategic Priorities: ESG Remgro’s journey to leading sustainable businesses and investing responsibly • Partnering with investee companies to roll out key performance ESG indicators • Continue to enhance disclosures relating to sustainability reporting • Continually aligning to recognised best practice reporting standards • Continued active involvement in capacity building and structural reform in order to improve SA Inc as investment destination • Continued commitment to the communities we operate in • Long established CSI initiatives centred around doing the right thing • Continued journey of improved disclosure and transparency • Improved active stakeholder engagement • Established cadence of Governance roadshows • Notable results with board composition and remuneration philosophy alignment • Commitment to impact investments in the portfolio Pillar 1: Sustainable investment stewardship Pillar 2: ESG action across the Remgro Group Pillar 3: Unlocking shared value for South Africa 24
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6. Conclusion Remgro’s founding principle: Partnering for joint value creation Partner 1. Being a trusted business partner is fundamental to our business model 2. With colleagues, management teams, founders, co-investors, government stakeholders and trusted service providers Reignite 1. Energised, focused Remgro team, with clear priorities and strategic objectives 2. Fit-for-purpose organisation to deliver on objectives 3. Access to strong skills and resources Grow 1. By driving performance 2. Prioritising organic growth 3. Considered M&A activity (in investees and at centre) 25
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END 2025