Remgro Ltd Ord

Good day ladies and gentlemen, and welcome to the Remgrove Limited annual results. All participants will be in listen-only mode. If you have joined via the webcast link, there will be a presentation visible throughout the event. If you have joined via the HD web phone, there will only be audio and a keypad on the screen. There will be an opportunity to ask questions later during the conference. If you should need assistance during the call, Please signal an operator by pressing star, then zero. Please note that this call is being recorded. I would now like to turn the conference over to Yanni Durand, CEO. Please go ahead.

Good morning everybody and welcome to the annual results presentation of Remgrove Limited for the year ended 30 June 2023. Just to run you through the contents of the day, I will start by giving a performance overview. We will rate ourselves against our strategic priorities and then I'll also briefly discuss the operating context of the environment that we've been operating during the past 12 months. Then I will hand over to Neville to give a more detailed overview of our results for the year. And then we deviated a little bit from our usual format in previous years. We will then begin an update on some of our key investments. And I welcome Ronnie van der Merwe and Jurgens Meijberg, the CEO and the CFO respectively of Mediclinic, who will speak to the results of Mediclinic as well as their strategy. Then Peter Ace, the chairperson of CIVH, will also do exactly the same for our CIVH company. And finally, we've got Paul Kruschenk also on the line, the CEO of RCL, that will speak to RCL's strategy and most recent performance as well. I will then close off with our key areas of focus, looking ahead, and then also open the floor for questions right at the end. And we've got all my colleagues around the table that will be assisting me in answering some of the questions. Specifically, it's also relating to CIVH, Mediclinic, as well as RCL. Just to turn across to the operating hours results for the year, and we're actually quite proud of the results. If you look at the results, headline earnings per share are by 8.7%. Total headline earnings actually up a little bit more, up by 8.9%. And the main reason between the difference uplift is 29 basis points in headline earnings per share. And that's really our share buyback program that we've commenced during the latter part of 2023 financial year. And also we did some purchases just right after year end. Then we've increased the dividend by 60%, the final dividend by 60%, so the year dividends also increase by 60%. It's not exactly in line with the earnings. As you can see, the earnings is up 8.9% per share, but the dividend 60%. But what you must realize is that the cash flow at the center trails the earnings by about a year because they declare the dividend after having a good year in earnings, and we only receive the dividend at the next year. So we only get the benefit of the cash flow in the following financial year. And last year, we had quite a good increase in some of the underlying performance of the companies. INF per share up nearly 17%, and we'll unpack that in detail later in the report. I think what is also critical to note, there was a Tremendous amount of corporate actions during the past year, as you're probably quite aware of, and if you're actually comparing apples with apples, and it's very difficult sometimes to eliminate all the noise in the results, but if you're just comparing apples with apples, the underlying earnings are up about 27%, which is quite a resilient performance going forward. The discount is still at 40.8%, and we'll unpack that later as well. Neville will discuss this quite in detail later, so I'm not going to elaborate on that. And maybe we can just quickly turn over to the operating context of how we've operated in this environment. I don't have to teach you or tell you exactly how tough it's been. It's probably one of the toughest environments. I've experienced in my 30-plus year working career, I mean, the various factors we talk about, load shedding, infrastructure collapse in South Africa, inflation, economic growth, the global supply chain disruptions, all of these things make it a very, very tough environment. Put that on top of since 2013, if you look at the South African economy, there's hardly been any growth. People talk about the missing years, but if you just look at the actual numbers, it's actually quite a few missing years since 2013 for the last 10 years in the economic environment, especially for locally domestic operating companies in the South African context. Despite this, I must say I'm proud of some of our companies and what they've done. We call it a Burma Kaplan. We're fixing sometimes our own water infrastructure. We're fixing sometimes the municipality substation just to keep operating so the factories keep operating. And I think I must congratulate my team and the management teams that in a very, very difficult and constrained environment with collapsing infrastructure, we're managing to keep our companies afloat and going forward. Turning the page, if we look at our portfolio context, clearly there's some positives, there's some negatives, and then there's some actions that we can take. We always talk about the controllables and the uncontrollables. And really, if we can focus on the controllables, then we can actually outperform the opposition. I think it's important to realize that South Africa is not an island. We can't get away from what's happening on a global environment, so we're exposed to input costs and commodity costs and all of those things, and we have to deal with it. A lot of that is uncontrollable, but the only thing is that we can look at the controllables, make sure our cost base is right, our efficiency is there to make sure that we can maximize margins in our underlying companies. Clearly, some of the things that we're doing from a Remgrove side on a macro level, I'm involved with a business called SA Collaboration, trying to help to fix some of the aspects in the country. Really, my portfolio, as you all know, is involved in the crime and corruption work stream. Then via RCL, they've done tremendous work on the chicken and the sugar master plan, and we've seen some of those benefits starting to pay off, not without its challenges, and Paul can elaborate on that later on. At the micro level, clearly we've started energy exchange. We're investing into renewables in our underlying companies. And we also see some opportunities, and we've actually made an investment, as you all know, that we've alluded to in the past on the energy exchange platform going forward. So despite some of these headwinds, we also see some opportunities, and we focus on the controllables. If we turn the page... It's a little bit like a scorecard and when you get your scorecard at the end of the year at school and we've actually took the bold step to say let's rate ourselves on our strategic priorities that we set ourselves at the interim. We show you these things at the interim, and we've rated ourselves, and what we said is a green, a yellow, or a red. And as you can see, either we're on track, it's all in progress, or we haven't started yet or not yet executed. And I can, at least the one thing I said, we didn't rate ourselves on any of the red things, so we probably scored half a pass on some of these things. But let us just quickly... Priority number one is the portfolio optimization, the unlocking of the value, capital allocation, sustainability, improved disclosure, and then sustaining the momentum and the resilience through the portfolio. And I'm going to go into much more detail in the next slides. Maybe just focusing a little bit on point six, because I'm not going to deal with that specifically later on, because that's really a function of our results that you see coming through. But I think it's, I must say, And you're probably all aware some parts of our portfolio is not where we want it to be. Some of them is, as we call, in the recovering bucket, and there's a huge focus on the earnings and the earnings delivery of the portfolio that we all optimally deliver the desired results and the return on our investments. Just to, and Neville will probably talk about that, just to make the point, remember we've got some portfolio investments that we actually don't equity account, so we only account for dividends, and some of them don't pay dividends, so that is put a drag on if you just do a normal accounting number of return on equity at the Remgrove level, and I think it's just because of the accounting rules, it's not... not really, so it's not actually a true reflection of the return on equity on the Remgrove portfolio, because we don't account for any earnings, for instance, on a discovery, a big part of our NAV, but we don't get any earnings on that. So there is a drag on the earnings from an accounting point of view. So we flip the slide, we go to just evaluate ourselves on Strategic priority number one and two, which really is what we talk about, unlocking value and portfolio optimization. I think it's been a busy year. We've lost a lot of year, and we're all a year older here, but I think we've executed quite well on that. We've delivered the Heineken-Destel transaction. We've delivered the MediClink transaction. Grinrod has been unbundled. We also did a share repurchase program, and I'll get back to that later as part of our capital allocation program. And then RCL, we talked about the vector logistics disposal, the rainbow turnaround, and the one that's really being focused for the rest for the next financial year is to deliver on the Vodacom CIVH transaction that is now being referred to the Competition Commission Tribunal. Just on the repurchasing side, I think it's something – that we've been asked a lot about. Clearly, at the current levels and at the current discounts, we think it's a very attractive capital allocation decision, and we've completed the program shortly after year-end, a total $1 billion just after year-end. I think it's also, we must realize, it's a balancing act as well between paying dividends, doing shareholder returns to the shareholders, as well as also allocating capital to our underlying companies into our core portfolio. And we're acutely aware of this and to make sure that there's balancing between these three priorities is actually done in a balanced way and to the enhancement and the most efficient way of unlocking value for our shareholders in that respect. You can turn over the page and then the evolution toward asset scarcity, also part of strategic priority three. And I think it's not something that we do deliberately. I think it's something if we say we just want to delist companies for the sake of delisting to create scarcity, I think that would be the wrong incentive and the wrong reason for that. The reason why we're doing these things is because we think it's unlocking our value, it's done at the right prices for us in that instance, and also in the best interest of the underlying companies. And I think that is the important message that I actually want to hear. But we've achieved now that our portfolio is now over 70% unlisted in that respect, and so it creates some scarcity to companies. to our portfolio, but I think it's now also what it does, it also puts more responsibility on Remgrove as an investment holding company, as well as a lot more transparency that we have to show, especially in the underlying valuations of the unlisted investment and the disclosure that we're going to do. Turning over the slides, still focusing on strategic priority number three. How have we deployed capital? As you can see in that instance, we've actually made quite a few investments into a core portfolio, which really relates to the mediclinic transaction where we spent quite a bit of money on that, as well as a share purchases program, as well as dividends that we've paid to that. Where did we get the cash from? We get the cash from investment income, as you can see on the right-hand side of the pie graph. We've realized some investments as well. as well as also the investment income return on our portfolio. That is where we got the cash from, and we spend it into, as we said rightly, on share repurchase, dividends, base, and investments back into our core portfolio. And then the 6.7%, obviously, we have to pay some taxes as well, plus also the cost from the head office side as well. Okay, so what is the, if we turn over a slide, still on strategic priority three, and we focus in quite a bit on capital allocation, because I think that's probably one of the most important things that we do. And if you look at the slide, clearly what, if you look at 2023, 4.2% with the yield that we've delivered to the shareholders, and that consists of three elements. It's one, it's a dividend spate, just over a billion in 2023. And I think what we must just, on that dividend, it's an old dividend. It's not the dividend that we declare today. So today, if you actually put the dividend today, it will be how much higher than 4.2%, but that will only come into the 2024 financial year. Differences in species, we've unbundled grain rot, plus we did a share purchase, share buyback program of 830. Why doesn't really relate to the 1 billion that I mentioned before? The balance was done after year end. So total return to shareholders in the year under review, nearly 3.3 and a half billion rand. Putting it on a market cap of just over $82 billion gives us a 4.2%. And you can clearly see the strategies paying off for us in 2021, albeit the COVID year was 0.7%, last year, 2022, 1% and this year, 4.2%. And we hope to continue on this trend of returning capital to our shareholders going forward. Then turning over to the next slide, also slide number three, the net deployment of capital into the core portfolio. I think I've touched on that a little bit. It's really the reinvestment into MediClick and the Distel portfolio. We bought some additional shares in the market. And we also classified our portfolio, as you can see on the right-hand side of the slide. We're talking about what we call growth assets. cash generating assets and also then assets in the recovery within our portfolio and so we've made an effort here to give you a sense of the proportion that we think that fits into the various basket we've got many questions about that in the past so we just give you a sense of it obviously we're not going to tell you which of us children are not doing so well in their scorecards but you can probably guess some of them of where some of those turnarounds needs to happen The one obvious one, you probably saw some of the sense announcements this morning on the chicken side, and I think that everybody accept that that's a huge turnaround thing with the challenges that's been facing there in that respect. I think just to re-emphasize the point that I made right at the beginning, we acknowledge that certain parts of our portfolio are not performing optimally, and that's a big focus going forward over the next couple of years with very strict performance criteria that we're putting into place, aligning that with incentive schemes in our underlying portfolios going forward. Then just turning across the slide, I'm not going to deal with the first-round shares and the hedging on that side, as well as some of the underlying investments into our funds. We've done that during the interim phase, and the information is here for you to see. But I think just also, albeit a bit on a smaller scale, also value unlocking, allocating of capital in the Gordons that we sold earlier, The Gordon's General Contract, distribution contract to Diageo for consideration of one billion rand, we think that was a good deal for both parties. It was a trademark that did not belong to us, it belonged to them, and we had the distribution right. Given the complexities of the transaction, of the agreement, and of executing on the distribution contract in a different environment, we thought it was the best for shareholders in Kaivin that we actually sell that contract back, and we think that both sides of the parties, on Kiaja's side and our side, we're quite happy with the transaction, and that's always an indication that you've actually concluded a good transaction in that respect. Now, if we get to... Strategic priority number four, which really deals with our sustainability drive. And I think I just want to emphasize in this thing, ESG and sustainability has always been part of the DNA of Remgrove. We just haven't articulated in the past probably so well, and we actually haven't measured it so well. I think that's important, but it's always been part of our DNA. But I think given the new environment and what is happening out there in the world, I think we've made some good progress to get in line of what is happening there. We've appointed Ms. Dennis Brown, who has over 20 years' experience in this field, having worked for large listed corporations like Discovery, and we look forward to her driving our ESG strategy, working with our portfolio companies, and I think she will add a lot of value to that. What we've done as well, we've also completed our baseline assessments across the portfolio. and that will help us define our current footprint and what it looks like and also help us to set our targets going forward. This is a key milestone in our approach, and we want to have measurable targets and KPIs, and also then we can measure ourselves better because it's also part of our remuneration KPIs, and we also delve that down to the underlying companies that also become an important part of their scorecards. Obviously, we've completed the gap analysis looking at our current disclosure versus the disclosure of the crime on some of the widely used rating agencies. We're not there, but it's key to ensuring that we report appropriately in line with market practices. We're all exactly on a consistent basis going forward. Everybody can evaluate us in that respect. So what is going forward for us? What are we going to do? What is our focus period now? It includes improving our reporting of the ESG matrix. We're going to use this baseline assessment to set the appropriate targets, as I alluded to, and then increase level of disclosure. That is going to be quite important. And the first CFD report will be published as part of an integrated annual report later this year. I think the annual report will come out in October. So we're proud of what we've achieved in terms of sustainability, but it will be a focus and continue priority for us going forward. Turning over the slide, strategic priority five, and I think this is critical for us, especially as our portfolio evolves around to 70% unlisted. And I think we have made considerable progress and are committed to continue to do more. I've made that promise in the past, and you can hold me responsible if you don't do it properly. Over the last 18 months, we have created more engagement platforms for shareholders to engage with our management team and also if the board is appropriate. We've had our first governance roadshow with more than 43% of our shareholders in the last month. We're also making a lot of effort to improve our disclosure, noting that I think it's important that it's an ongoing process with efforts to continue. We also will value your input on that. We've also added additional disclosure on our material unlisted assets in this presentation. And Neville will spend considerable time on the valuations and methodology and assumptions in how we calculate the INAV. Clearly, it's important to note that since two years ago, we formed also a valuation committee. So just to have all of what we call these checks and balances in place on the valuations, we've got a valuation committee. We've got an audit committee that signs off, and then the third one is the board, as well as the thing that we also use independent valuators in the portfolio to actually do some of these valuations. I think it's also going to do what is important. We're going to do some of these investment roadshows. We're going to have some of these capital markets going forward, and I think that is going to be an important part of this promise and transparency that we've promised to the market. I'm going to now hand over to Neville. He's going to go into the detail of the financial result as well as the INAF calculations. Neville.

Good morning, everyone. Yanni has alluded to the noise that was created by corporate actions over the last two years. And in this slide on the right-hand side, I'm just giving an analysis of the impact of corporate actions at Remger level as well as outsourced group level over the last two years. And the impact is a negative swing of approximately 949 million rand year on year. If you exclude that impact, The underlying portfolio actually increased by 27%. That was maintaining positive earnings momentum despite a very challenging business environment that Yanni also has described now. The main contributors to this increase are firstly Mediclinic. Mediclinic reported a 75% increase in headline earnings. resulting in this significant increased contribution to RemGrow's headline earnings. The adjusted earnings increased by 15%, and that 15% represents their underlying operational performance. Then secondly, the outsurance group normalized earnings from continuing operations, and that's excluding the discontinued operations, increased by 62.2%, mainly driven by outstanding results from Yowie Australia, as well as lower funding costs, where last year they utilized the proceeds from the Hastings sale to reduce their debt at head office. Also, we've earned significantly higher interest income due to the 350 basis points increase in the repo rates over the year under review, on higher average cash balances. KTH benefited from a once-off debt forgiveness gain of 520. Remgrove's portion in that increase is 226 million rand. And we've already disclosed this also during the interim period. And then Pembani Remgrove Infrastructure Fund paid a significant dividend to Remgrove of 358 million rand. with a sale of their interest in ETG. Also included in the increased contribution by First Rand is a special dividend of $154 million that they paid in October last year. The decreased contribution by RCL, mainly as a result of continued under-recovered input cost pressure in Rainbow, the chicken business, the load-shedding impact as well as a payment of a special sugar levy of 171 billion after tax, and that decrease was partly offset by an improved financial performance by the sugar division. And then if you look at total, the significant decrease in contribution by total energies is mainly due to negative stock revaluation losses, resulting in a swing of approximately 900 million rand year-on-year negatively. And this also creates volatility in headline earnings. The other, the PRIF significant dividends as well as that KTH once-off debt forgiveness gain all created this volatility in headline earnings. So excluding all the corporate actions, the comparable headline earnings of Ringgro actually increased by 27%. Next slide. This is a new table that we now include, and with the inclusion of this table, we attempt to provide more insight on our valuation process, as well as improve disclosure on the valuation methodologies applied. Firstly, some insight around the governance process, and Yanni has also alluded to that. In line with one of RemGrow's strategic priorities, namely portfolio optimization to improve the asset scarcity of the portfolio, the board established a valuation subcommittee during the 2021 financial year to assist the Audit and Risk Committee in gaining insurance on the valuations of unlisted investments. thereby ensuring the robustness of Remgrove's intrinsic net asset value. This function has become increasingly important as Remgrove's portfolio has now evolved towards more unlisted investments. So more than 70% of Remgrove's portfolio is now unlisted. And then in addition to that, if you look at the year end, the INAF table is actually part of the audited consolidated financial statements. So the auditors perform an independent assessment on these valuations, and the outcome of these independent assessments is that all of these valuations are are actually in the range with the auditor's valuation ranges. So that's also now been signed off by the auditors. Secondly, the table provides a snapshot of the valuation approach for each of the large unlisted investments. And here you can see what the primary approach is for each investment and the type of discounts that we apply to the valuation. and that's for improved disclosure. Just want to mention three or four major investments. So at Citi, June 2023, two significant investments, namely Mediclinic, which was previously listed, and the Heineken beverages were valued as unlisted investments for the first time in this regard. Due to the significant contribution of the investment in Mediclinic to Remgrove's INAF, it's more than a quarter of Remgrove's INAF, Remgrove engaged the services of an independent expert to perform the valuation. The valuation methodology used was the sum of the parts methodology, which was underpinned by the discounted cash flows of the underlying businesses and the three big businesses involved. are Southern Africa, East London, and the Middle East. And each business valuation range was performed in their currency and based on that country's forecast signed off by management and the board of that company's. The increase of 7.6% represent the uplift in the pound price per share from the transaction price of £5.01 to the current value per share of £5.39. So that £5.39 is the mid-range of the independent expert valuation range. which the Evaluation Committee has signed off and was approved by the Board and the Audit and Risk Committee. Then regarding Heineken beverages, given the short period since the Distel Heineken transaction implementation at the end of April 2023, the Heineken beverages investment was valued using the price of a recent investment methodology. Since limited integration has taken place, as at 30 June 2023, and reliable consolidated forecast information is also limited. They are still busy with the integration of this merger. So going forward and consistent with Remgrove's valuation approach, it is most likely that a different valuation methodology be used. For example, the discounted cash flow methodology. In such an instance, various discounts for lack of marketability, lack of control, forecast risk, etc., would be applicable, which would affect the valuation in future. But for 30 June 2023, the valuation committee and the board has decided on the price of a recent investment methodology to value the Heineken beverages merge entity. The valuation of CAVH is performed internally and tested for reasonability with the outcome of the annual external valuation done at CAVH level. So Peter will also provide more insight on the valuation of CAVH later on in this presentation. Then Cape Vinh, which is the offspring of the Distil Heineken transaction, Cape Vinh's valuation increased by 50.5%. And that 50.5% represents the uplift in the sum of the parts valuation from transaction price of R15 per share to the current value of R22.60 per share. And that uplift is mainly due to the disposal of Gordon's gin to Diageo, resulting in net cash received to date. So that's additional cash that sits on the balance sheet. And Gordon's gin operations also continued its good performance since the Heineken transaction announcement to the transaction effect of that, which also had a positive cash flow impact. on this valuation. Then the whiskey business, over the last two years, their performance improved, which is reflected in the DCA valuation of the whiskey business. And then in addition to that, the RAND valuation also benefited from the weakening of the RAND against the hard currencies. Therefore, the resultant 50% increase in the valuation of Cape Verne. Next slide. This is just a summary of the contribution per platform to headline earnings, as well as INAV. Here I just want to highlight on the headline earnings side, the contribution by healthcare increased substantially relative to the other platforms. to 25% of RemGrow's earnings, headline earnings, from 18% in 2022, mainly due to a 76% increase in headline earnings year on year, partly offset by additional transaction costs that we've accounted for during the lag period. Another significant increase in headline earnings contribution is the diversified investment vehicle platform. And that's mainly because of the PREV dividend that we received and the KTH1s of debt forgiveness gain. Decreased contributions are from the consumer goods due to the underperformance of RCL, as well as industrials, and mainly due to the impact of the negative stock valuations at Total Energy. If you look at the INAV per platform, The significant contributor to INAV is Mediclinic, with increased contribution from 25% to 54% year-on-year, mainly due to a 60% increase in the ZAR value. And I'll unpack that 60% increase later. So in the following slides, I will highlight some key takeaways from our respective investment platforms. And while I will not go into too much detail on each, In the annexes to this presentation, which you can download from our website, we have provided more detailed information on the underlying performance measures and valuation considerations of each of our material investments. Next slide. So the healthcare platform, as I alluded to, the headline earnings contribution increased by 76%. While if you look at the adjusted earnings in pound terms, that's up by 15%. We've also accounted for transaction cost, our portion, during the lag period amounting to that R539 million. So Ronnie van der Merwe and Jurgens Meijer will unpack these results later on in this presentation. Just want to highlight on the right-hand side the 60% increase in the ZAR valuation, the rent valuation, mainly due to an 18% increase in the pound value per share from the £4.58 close at 30 June 2022 to the valuation of £5.39 at 30 June 2023. We've also acquired an additional 5.4% interest, indirect interest in MediClinic through the Manta structure at £221 million. And then the RAND valuation also benefited from the weakening of the RAND against the pound year on year. Next slide. Consumer goods, it's a busy slide. If I quickly go through the main components of headline earnings in consumer goods, if you look at the still, the still's numbers are included for 10 months up to end of April this year, and that's compared to the 12 months of the previous year. The still reported normalized earnings adjusted for abnormal transactions and currency movements for the 10 months. And that increased by 16.3%, mainly due to an increase of 14% in gross revenue on 6% higher volumes. And that was mainly driven by double-digit revenue growth in ciders and ready-to-drink categories. And Savannah and Hunters are the standout performers in that category. Heineken beverages results is included for two months. And that two months result amount to a loss of $75 million. And included in that $75 million are amortization and depreciation charges of $56 million relating to the intangible assets identified with the merger. So excluding these charges, the contribution amounted to a loss of $19 million, mainly as a result of constrained consumer environment, and load shedding affecting customer behavior, as well as supply chain challenges, most notably on the molten glass due to global price volatility, local supplier constraints, and volatile demand. Just quickly an update on the Heineken-Destel integration process. The IT integration was implemented at the beginning of this month on the 4th of September. So for the 2023 year, the priorities for the merge entity includes the setup of the new organizational structure, harmonizing of systems, network consolidation and joint planning and reporting. And in 2024, the business expects increased synergy deliveries as the Merge entity settles into new ways of working. Kaepernick's results for the two months amounted to $14 million. If you look at year-on-year profit from their continuing operations, that's the whiskey business, increased by 13%, mainly due to strong revenue growth. of the single malt whiskies, as well as Scottish leader. RCL had a challenging year, reporting a decrease in underlying headline earnings from continuing operations of 20%, which Paul Krushenk, RCL Food CEO, will unpack later in this presentation. Cicalo, the spreads business, the same message, the trading environment remained challenging due to volatile commodity prices and exchange rates. increased load shedding and rising inflation and interest rates. Socalo has experienced a decrease of 5.2% in volumes as consumer spend was negatively impacted by elevated inflationary environment. The decrease in volumes coupled with a 17.6% increase in material cost driven by volatile commodity prices and exchange rates resulted in a 8% overall decrease in operational EBITDA. Then on the financial services, the major investment here is the listed outsurance group. Outsurance normalized earnings from continuing investments increased by 62%, mainly driven by higher earnings from outsurance holdings and lower funding costs as the Hastings proceeds were utilized to settle group debt. Outsurance earnings increased by 44%, mainly driven by pleasing financial and operational results from Yowie, Australia, as strong premium growth continued and favourable weather conditions supported a significant increase in profitability. Outsurance announced their annual results a week ago. On the infrastructure, mainly the investment in CAVH. The increase in headline earnings is due to improved performances by CAVH's underlying businesses, DFA and Vumatel, which Peter Ace, CAVH chairman, will elaborate on later in this presentation. Just on the industrial portfolio, I will quickly just highlight comment on the results of APSA, Total Energies and Waspecu. APSA also experience erratic and generally low levels of demand, especially from several large tonnage customers, combined with high levels of plant maintenance activity. And these factors weighed in on the results of their tonnage division, which is the biggest part of their business. Their packaged gases volumes continue to improve, and the acquisition of weldermax, a welding consumables and equipment supplier, further enhance performance in this division, despite significant cost pressures. Total energies, excluding the volatility of that stock revaluations, their contribution to headline earnings decreased by approximately 30%, and the decrease is mainly due to higher input cost, heavily impacted by supply chain challenges experienced in the importation of their finished fuel products as well as crude oil. Waspeco's aluminium extrusion volumes were negatively impacted by lower business confidence as well as reduced activity levels in the commercial and residential business building sectors. Next slide. This is the normal cash flow bridge that we supply to the market. And you can see the main driver of cash earnings at the center is dividends received from our underlying investing companies. This year amounting to 3 billion Rand. We've also utilized approximately 6 billion cash in investing activities during the year under review. of which the most significant is the acquisition of an additional 5.4% indirect interest in Mediclinic for £221 million. And that results in a net cash outflow of £3.2 billion year-on-year, with a cash balance at the centre of £9 billion at year-end. Next slide. This... The graph shows the evolution of cash generation to the center of the current portfolio since pre-COVID period in 2020. So you can see it's just under $3 billion, $2.7 billion in 2020. The impact of COVID in the first half of 2021 down to $1.5 billion, as well as the recovery path since then. So if you look at currently 3.1 billion dividends received at the center, so this current portfolio has now recovered from and surpassed pre-COVID levels on an absolute basis. So rant for rant. And I think it's a good story if you look at the increase from last year to this year. And in the next slide, this increase actually – drove the declaration of the dividend, the final dividend, of R1.60, an increase of 60%. So the total dividend for the year is R2.40, and that also is an increase of 60%. But you'll see the evolution of the recovery path since COVID, 66% increase in dividends from that low base last year, and then this year another 60% increase last year. in dividends. The 60% is not an expectation of things to come in the next few years. So it's just, I think we are now recovered on an absolute basis from cash generation at the center since COVID. And then just if you look at yields, Jannie mentioned the yields. So the cash yield on the dividend yield for this year is based on the 30 June 2023 price, is 1.6%. Last year, it was 1.2%. And in 2021, it was below 1%, 0.8%. So also an improvement in the cash yield from Remgrove in respect of dividends paid. Thank you, Yanni, and I'll hand over to Ronnie from MediClinic.