Slide 1: Camellia Plc Results Presentation 2016
CAMELLIA PLC RESULTS PRESENTATION 2016 26 MAY 2017
Slide 2: Agenda
AGENDA OVERVIEW BUSINESSES STRATEGY SUMMARY APPENDIX 2
Slide 3: Overview of Camellia Plc
OVERVIEW OF CAMELLIA PLC Diversified international Group with 130 year history Origins in tea plantations Businesses in Asia, Africa, South America, Europe and US Main activity is bearer crop agriculture Additional activities in engineering, food service, finance and investments Camellia Foundation
Slide 4: Overview of 2016
OVERVIEW OF 2016 Disposal of Duncan Lawrie Agriculture’s performance in 2016 illustrated the benefits of crop and country diversification Profits improved in all continuing divisions Further significant investment in continuing businesses Net cash resources of £72m, excluding Duncan Lawrie 41st year
Slide 5: Key Financial Metrics
KEY FINANCIAL METRICS Sales for continuing operations of £257.9m (2015: £244.7m) Profit before tax for continuing operations of £26.5m (2015: £24.0m) Loss from discontinued operations £20.0m (2015: loss £3.6m) Net assets of £379.6m and net cash of £71.8m, excluding Duncan Lawrie (2015: net assets of
Slide 6: Divestment of Duncan Lawrie
DIVESTMENT OF DUNCAN LAWRIE Sub-scale. Economic pressures and increasingly aggressive regulation led to decision to exit 2016 2015 £’m £’m Duncan Lawrie’s operating loss (7.5) (3.5) Costs associated with the closure (10.3) - Impairment of PPE, intangibles, loans and advances (1.2) (0.1) Loss on sale
Slide 7: Continuing Operations
CONTINUING OPERATIONS Profit/ Revenue Revenue Trading Trading Return on Return on (Loss) 2016 2015 Profit/ segment segment £’m £’m (Loss) net assets net assets 2016 2015 2016 2015 £’m £’m Agriculture 207.1 186.5 29.9 26.7 10.0% 13.1% Engineering 18.8 25.8 (2.6) (5.5) n/a n/a Food Service 31.6 31.9 0
Slide 8: Agriculture: Tea and Macadamia
Million kg Volume Volume AGRICULTURE 2016 2015 Tea* 99.1 86.1 Macadamia 0.8 1.2 Avocado* 8.9 9.4 Tea * Includes smallholders’ and outgrowers’ volumes 2016 was a record year for global tea production within the Group Global tea consumption rising at a slower pace than production increases, which has
Slide 9: Agriculture: Avocado and Speciality
AGRICULTURE Avocado Good rainfall supported a satisfactory crop (down 2% compared to 2015) Prices were at record levels (up 28.8% compared to 2015) as a result of demand from the European market Continued development of additional orchards (39 Ha in 2016) Harvest is just starting, dry weather may ha
Slide 10: Non-agricultural divisions
Non-agricultural divisions ENGINEERING Key operations are Amfin and A JT Engineering A JT – low oil price continuing to impact trading but diversifying sectors Amfin – returned to an operating profit in 2016, strong demand continues FOOD SERVICE ACS&T (UK cold storage) – profits in line with 2015 Af
Slide 11: Group Strategy
GROUP STRATEGY Founded on two fundamental principles: Long termism Sustainability Returns Profit is our lifeblood but not our soul Insufficient returns in some divisions Opportunities to invest New Group management team focused on: Transforming core crops into global businesses Investing to capture
Slide 12: Group Strategy – Agriculture
GROUP STRATEGY – AGRICULTURE Population growth Healthy foods Strength in depth Managing short term fluctuations for long term gain: Pricing Weather Politics Nurturing 3 core crops (Tea, Avocado, Macadamia) Speciality crops provide diversity, income and land security Move up the value chain 12
Slide 13: Group Strategy - Maclands
GROUP STRATEGY - Maclands Example of capturing more of the value chain Second largest producer of macadamia in the world Marketed globally under Maclands brand Three countries of origin: Kenya, Malawi and South Africa State of the art cracking facilities in all three countries Integrated and fully t
Slide 14: Group Strategy – Selective Divestments
GROUP STRATEGY – SELECTIVE DIVESTMENTS BANKING AND FINANCIAL SERVICES Duncan Lawrie: sub-scale, economic pressures and increasingly aggressive regulation led to decision to exit (2016) ENGINEERING Loddon: sold to a trade buyer with a better strategic fit (2015) AKD: oil and gas downturn led to closu
Slide 15: Summary
SUMMARY 2016 was a year of strong results as well as continued strategic development Diverse, asset rich Group with strong financial position Focus on long term, on sustainability and ethical business practices Investing to capture more of the value chain Capitalising on our agricultural expertise S
Slide 16: Questions?
QUESTIONS? ee @) CAMELLIA PLC 16
Slide 17: Income Statement
INCOME STATEMENT £’m 2016 2015 Continuing operations: Revenue 257.9 244.7 Gross Profit 69.4 65.5 Headline Profit 26.5 26.4 Exceptional items* - (2.4) Profit before Tax 26.5 24.0 Tax (12.4) (13.2) Profit for the year from continuing operations 14.1 10.8 Loss from discontinued operation (20.0) (3.6) P
Slide 18: Balance Sheet
BALANCE SHEET £’m 2016 2015 Non-current assets Intangible assets 1.1 7.9 PPE and other non-current assets 235.3 231.3 Investment properties 17.0 15.8 Biological assets 13.9 11.1 Investment in associates (incl BF&M) 61.0 48.9 Available for sale financial assets 37.2 30.6 Held to maturity financial as
Slide 19: Balance Sheet
BALANCE SHEET £’m 2016 2015 Current liabilities Borrowings (1.7) (5.4) Trade and other payables (66.9) (258.9) Tax, pensions and other (7.8) (10.6) Non-current liabilities Borrowings (4.5) (5.1) Trade and other payables - (4.4) Deferred tax (43.3) (39.7) Employee benefit (65.9) (37.8) Net assets dis
Slide 20: Cash Flow (Excluding Duncan Lawrie)
CASH FLOW (EXCLUDING DUNCAN LAWRIE) £’m 2016 2015 Cash generated from operations 35.3 43.1 Tax, interest paid and dividends received (11.5) (5.7) Net cash flow from operations 23.8 37.4 Net cash flow from investing activities (10.1) (18.7) Net cash flow from financing activities (7.4) (2.4) Net incr