CALGRO M3 HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2005/027663/06)
JSE Share code: CGR
ISIN: ZAE000109203
Company Alpha Code: CGRI1
LEI: 3789003B0859E9438F25
(“Calgro M3” or “the Group” or “the Company”)


UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE
SIX MONTHS ENDED 31 AUGUST 2023


1.       SALIENT FEATURES

     -     Headline earnings per share increased to 78.88 cents per share (“cps”) (2022: 57.00
           cps)
     -     Earnings per share increased to 78.88 cps (2022: 57.04 cps)
     -     Share buyback of 22.6 million shares at an average price of R2.63 per share.
     -     Revenue increased by 13.5% to R688.9 million (2022: R607.1 million)
     -     Gross profit margin remained within 20% to 25% target range, at 22.2% (2022: 22.1%)
     -     Cash increased by 11.2% to R191.9 million (February 2023: R172.6 million)
     -     Net debt to equity stable at 0.61 (February 2023: 0.62)
     -     No dividend was declared for the period ended 31 August 2023 (2022: Nil)

     Residential Property Development

     Having handed over 949 opportunities in the current period (August 2022: 1 193
     opportunities), 2 118 opportunities are under construction, with more than half set for hand-
     over by February 2024. Currently, the Group has 1 937 serviced opportunities whilst
     servicing a further 3 398 opportunities. The residential revenue pipeline is in excess of R15
     billion, representing 22 357 opportunities. This excludes the Frankenwald project which will
     unlock a further 20 000 to 30 000 opportunities. The already available electricity supply and
     infrastructure reduces initial capital needs, easing the Frankenwald project’s cash flow
     strain which will result in improved margins.

     Diversifying our projects across different provinces and maintaining a balanced customer
     base are crucial to achieving our strategic objectives. This approach enables us to ensure
     stable handovers and to generate positive cash flow. One of our primary strategic
     objectives is maintaining a well-balanced mix of units ready for sale, units with granted
     bonds, units awaiting transfer, and units currently under construction.

     Memorial Parks

     The current period has shown a strong recovery in cash receipts, with a 33.8% increase to
     R33.9 million. Revenue for the period remained flat at R19.9 million, representing 3% of
     Group revenue. Sales reservations have shifted to the lay-by offering, away from the
     traditional cash sales, highlighting the tightening consumer pocket. This offering has grown
     by R11.2 million to R21.1 million, which will translate into revenue as and when these sales
     are fully settled.
 Bloemfontein Memorial Park, a new addition, is slowly picking up. While current
 performance is below expectations, an enhanced marketing plan has been implemented to
 boost visibility and sales growth.

 The business has performed well during this period, but we remain cautious. Our
 commitment is to continuously improve our offerings, keeping affordability and quality at
 the forefront thereof.

2. SHORT-FORM ANNOUNCEMENT

 This short-form announcement is the responsibility of the directors of the Company. The
 full     announcement       (“Full   Announcement”)          can      be     found    at
 https://senspdf.jse.co.za/documents/2023/JSE/ISSE/CGRE/HY2024.pdf and on             the
 Company’s website at https://www.calgrom3.com/index.php/investors/annual-reports.

 Any investment decisions by investors and/or shareholders should be based on
 consideration of the Full Announcement, as a whole.

 This short-form announcement and the condensed consolidated interim financial
 statements for the six months ended 31 August 2023, from which the information was
 extracted, have not been audited or reviewed by the Company’s auditors, Mazars Inc.

 By order of the Board

 Wikus Lategan                                   Hatla Ntene
 Chief Executive Officer                         Chairperson

 Johannesburg
 16 October 2023

 Equity and Debt Sponsor
 PSG Capital