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



UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE
SIX MONTHS ENDED 31 AUGUST 2022


1.   SALIENT FEATURES

     Headline earnings per share increased to 57.00 cents per share (“cps”) (2021:42.79 cps)

     Earnings per share increased to 57.04 cps (2021: 39.56 cps)

     Revenue increased by 5% to R607 million (2021: R576 million)

     Gross profit margin remained within 20% to 25% target range, increasing to 22%
     (2021:19.7%)

     Interest bearing borrowings decreased by 3%

     No dividend was declared for the period ended 31 August 2022 (2021: Nil)


     Residential Property Development

     As at 31 August 2022, the Group had 3 965 opportunities under construction, of which
     approximately half are expected to be completed and/or handed over before February
     2023, therefore, revenue is expected to increase for the remaining six months of the year.
     Having successfully completed 1 193 opportunities in the first six months of the current
     financial year (2 685 for the 12-month period ended February 2022), the Group is well
     positioned, sufficiently capitalised and has the required liquidity to address market
     demand and continued growth.

     The revenue pipeline for the Residential Property Development business is R15.9 billion
     (more than 24 000 opportunities), excluding the Frankenwald development where the
     Urban Development Framework was approved in August 2022, a considerable milestone
     for the pre-planning phase of the project. The Company is committed to exercising the
     land option at the end of June 2023 and is confident in the Group’s ability to fund the
     option payment from internally generated cash resources, unlocking more than 20 000
     additional residential units across eight distinct income groups.

     In the year, Calgro M3 self-funded R47 million of the annually planned infrastructure
     spend of R120 million, with the balance to be incurred in the second six months of the
     year. The Company remains confident that cash generated from operations for the full
     year will be sufficient to fund the balance, despite negative cash from operations in the
     current period.
   Memorial Parks

   Memorial Parks remains a key expansion area for the Group, with the medium-term
   objective being to grow cash receipts to support all Group overheads and interest
   obligations.

   This business experienced a slowdown in sales in the period under review, attributable to
   three factors:
   1. Lower burial volumes
   2. Affordability
   3. Restructuring of the sales and marketing department

   When adjusting for excess Covid-19-related deaths, as reported by the South African
   Medical Research Council, between the period August 2019 to August 2022, the
   performance of the Memorial Parks business for the current period, was 5.6% lower than
   that of August 2021.

   It is the intention to maintain an enhanced market presence through strategic marketing
   and an improved and affordable product portfolio.

   SHORT-FORM ANNOUNCEMENT

   This short-form announcement is the responsibility of the directors of the Company. It
   contains only a summary of the information in the full announcement (“Full
   Announcement”) and does not contain full or complete details. The Full Announcement
   can be found at https://senspdf.jse.co.za/documents/2022/JSE/ISSE/CGRE/HY2023.pdf.

   Copies of the Full Announcement is also available for viewing on the Company’s website
   at www.calgrom3.com or may be requested in person, at the Company’s registered office
   or the office of the Sponsor, at no charge, during office hours.

   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 2022, from which the information was
   extracted, have not been audited or reviewed by the Company’s auditors, Mazars.


By order of the Board
Wikus Lategan                                      Hatla Ntene
Chief Executive Officer                            Chairperson


Johannesburg
17 October 2022

Sponsor
PSG Capital