Camellia Plc · LSE:CAM

Camellia — FY2017 Earnings Presentation

20 slides from Camellia's earnings presentation, May 2018

  1. Slide 1: Investor Presentation May 2018

    INVESTOR PRESENTATION MAY 2018

  2. Slide 2: Agenda

    AGENDA OVERVIEW 2017 BUSINESSES STRATEGY SUMMARY

  3. Slide 3: Overview

    OVERVIEW  Diversified international Group with 80,000 employees  World’s second largest private producer of tea  Businesses in Asia, Africa, South America, Europe and US  Principal activity is emerging market bearer crop agriculture  Additional activities in engineering, food service and invest

  4. Slide 4: 2017

    OVERVIEW 2017 BUSINESSES STRATEGY SUMMARY

  5. Slide 5: 2017 Highlights

    2017 HIGHLIGHTS  A year of significant financial and strategic progress  Improved trading profits, particularly in Agriculture  Good performance Food Services; mixed results Engineering  Portfolio refinement continues  Sustained investment in Agriculture to propel future growth  UK pension fun

  6. Slide 6: Key Financial Metrics

    KEY FINANCIAL METRICS  Sales from continuing operations £298.3m (2016: £257.9m)  Trading profit from Agriculture up 19% to £35.6m (2016: £29.9m)  Profit before tax from continuing operations £27.6m (2016: £26.5m)  Profit from discontinued operations £14.8m (2016: loss £20.0m)  EPS from continui

  7. Slide 7: Divisional Summary

    DIVISIONAL SUMMARY TURNOVER TRADING PROFIT DIVISION OPERATIONS (2017) (2017) Tea, Macadamia nuts, AGRICULTURE £239.4m £35.6m Avocados, Speciality Crops ENGINEERING Metal Finishing £20.5m (£2.6m) FOOD SERVICE Storage and Distribution £37.8m £1.8m ASSOCIATES Insurance, Finance £2.0m Property, Securiti

  8. Slide 8: Agriculture

    AGRICULTURE TEA  95m kilos of tea produced in 2017 after 2016 record of 99m kilos  Tea estates in India, Bangladesh, Malawi, Kenya  Pricing volatile  Production highly weather dependent  Costs largely driven by increasing wages  Sales and profits heavily second half weighted MACADAMIA  780 to

  9. Slide 9: Agriculture

    AGRICULTURE AVOCADO  7.3m kilos of avocados produced in 2017 (2016: 7.1m kilos)  Largest producer in Kenya of Hass avocado  Record prices - c.30% up in 2017 compared to 2015  Continued investment in new orchards and focus on fruit quality  Trials underway to expand production in western Kenya S

  10. Slide 10: Non-Agriculture

    NON-AGRICULTURE ENGINEERING  A JT (oil & gas services) – low oil price impacted 2017 trading; recovery in sector and diversification leading to increased sales  Abbey and Atfin (aerospace metal finishing) – substantially increased operating profit in 2017 as demand continued to grow  XiMo - activ

  11. Slide 11: Businesses

    OVERVIEW 2017 BUSINESSES STRATEGY SUMMARY

  12. Slide 12: Strategy

    STRATEGY  Transforming core crops into global businesses  Capitalising on increasing demand from an urbanising, longer living, more health conscious population  Mitigating, insofar as possible, the impacts of climate change and political uncertainty  Investing to capture more of the value chain

  13. Slide 13: Strategy

    STRATEGY AGRICULTURE CORE  Attractive opportunities and long term growth potential  Major scale in tea, macadamia and avocado  Heavy past investment will produce substantial future returns, e.g.  Macadamia takes 6 years to produce a crop and 13 years to reach maturity and Avocado takes 3 years a

  14. Slide 14: Summary

    OVERVIEW 2017 BUSINESSES STRATEGY SUMMARY

  15. Slide 15: Summary

    SUMMARY  Significant strategic and financial progress in 2017  Investing in agriculture to capture more of the value chain  Divesting where subscale or returns unattractive  Strong financial position and asset base  Long history of dividend increases

  16. Slide 16: Appendix

    APPENDIX @3) CAMELLIA PLC

  17. Slide 17: Income Statement

    INCOME STATEMENT £ ‘m 2017 2016 Continuing operations: Revenue 298.3 257.9 Gross Profit 79.0 69.4 Profit before Tax from continuing operations 27.6 26.5 Tax (13.8) (12.4) Profit for the year from continuing operations 13.8 14.1 Profit/(Loss) from discontinued operation 14.8 (20.0) Profit/(loss) for

  18. Slide 18: Balance Sheet

    BALANCE SHEET £ ‘m 2017 2016 Non-current assets Intangible assets 3.2 1.1 PPE and other non-current assets 219.6 235.3 Investment properties 17.6 17.0 Biological assets 12.8 13.9 Investment in associates (incl BF&M) 55.4 61.0 Available for sale financial assets 47.0 37.2 Heritage assets 9.4 9.2 Curr

  19. Slide 19: Balance Sheet

    BALANCE SHEET £ ‘m 2017 2016 Current liabilities Borrowings (1.8) (1.7) Trade and other payables (56.5) (58.7) Tax, pensions and other (23.8) (16.0) Non-current liabilities Borrowings (4.0) (4.5) Deferred tax (40.2) (43.3) Employee benefit obligations (30.5) (65.9) Net assets held for sale/discontin

  20. Slide 20: Cash Flow

    CASH FLOW £ ‘m 2017 2016 Cash generated from operations 40.7 35.3 Tax, interest paid and interest received (9.8) (13.8) Net cash flow from operations 30.9 21.5 Net cash flow from investing activities (22.3) (7.8) Net cash flow – group dividends and to minorities (6.6) (7.4) Net increase in cash and

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