Fevara Plc · LSE:FVA

Fevara — Carr's Milling Industries — H1 2010 Earnings Presentation

16 slides from Fevara's earnings presentation, April 2010

  1. Slide 1: Carr's Milling Industries PLC – 26 weeks to 27 February 2010

    Carr’s Milling Industries PLC 26 WEEKS TO 27 FEBRUARY 2010 Carr’s performed well in competitive markets

  2. Slide 2: Overview

    Overview  A good set of results against a difficult backdrop, especially in Food  PBT £5.3m, unchanged but ahead of Board expectations  Diluted EPS 38.4p (2009:37.2p), up 3%  DPS 6.0p, unchanged but introducing 3 dividends a year  A strong performance from Agriculture, with fertiliser showing a

  3. Slide 3: Divisional Picture

    Divisional Picture Revenue £120.5m (2009:£130.2m) Profit before tax £4.3m (2009:£4.0m) Agriculture supplies  Both retail and machinery traded well Animal Feed Agriculture  Feed block volumes and profit increased  Compound feed volumes declined due to good autumn grazing and substitute feeds Ferti

  4. Slide 4: Financial Highlights – Ron Wood, Finance Director

    FINANCIAL HIGHLIGHTS Ron Wood Finance Director 3

  5. Slide 5: Financial Highlights

    Financial Highlights  Lower revenue (price deflation) but modest profit increase  Food performance held back profit increase  EPS up 3% at 38.4p  Net debt reduction and cash flow in line with budget 4

  6. Slide 6: Income Statement

    Income Statement Half year ended 27 February 2010 2009 Revenue PBT Revenue PBT £m £m £m £m Agriculture: Trading 97.8 3.2) 103.8 3.7) Manufacturing 22.7 1.1) 26.4 0.5) Food 33.9 0.9) 40.5 1.4) Engineering 6.9 0.4) 3.8 0.3) Other - (0.3) - (0.5) 161.3 5.3) 174.5 5.4) Retirement benefits (0.6) (0.9) As

  7. Slide 7: Cash Flow

    Cash Flow Half year ended 27 February 2010 2009 £m £m Operating profit 5.2) 5.4) Depreciation/amortisation 1.9) 1.8) Working capital outflow (3.1) (15.0) Interest paid (0.6) (0.7) Tax paid (0.6) (1.7) Other non-cash items 0.7) 1.7) Generated by/(used in) operating 3.5) (8.5) activities Used in inves

  8. Slide 8: Summarised Balance Sheet

    Summarised Balance Sheet 27 February 2010 28 February 2009 £m £m Non-current assets 44.6) 41.9) Current assets 96.6) 91.4) Current liabilities (64.7) (75.4) Non-current liabilities (39.8) (22.8) Net assets 36.7) 35.1) Minority interests – equity (4.0) (3.2) Equity shareholders’ funds 32.7) 31.9) Net

  9. Slide 9: Macro Backdrop – Chris Holmes, CEO

    MACRO BACKDROP Chris Holmes CEO 8

  10. Slide 10: Key Macro Drivers for Carr's

    Key Macro Drivers for Carr’s Activity Key Cost Inputs Key Demand Driver Animal feed Feed wheat, proteins, molasses Milk price/livestock price Agriculture Fertiliser Nitrogen, phosphate, - rising Milk price and wheat price Potash - static - short term volatility in demand Agricultural supplies N/A Ov

  11. Slide 11: Agriculture – Farm Gate Milk Price

    Agriculture – Farm Gate Milk Price Average Annual Milk Price Monthly Farmgate Milk Price PPL 2006 2007 2009 2010 27.00 29.00 25.91 27.00 25.00 24.87 24.67 24.47 23.93 25.00 23.00 Pence Per Litre Pence Per Litre 21.95 23.00 21.00 20.66 21.00 19.26 19.13 19.00 18.45 18.46 19.00 18.30 18.01 17.94 17.00

  12. Slide 12: Agriculture – Wheat Prices

    Agriculture – Wheat Prices Feed Wheat Prices August 2006 - April 2010 Milling Wheat Prices August 2006 - April 2010 Feed Wh ea t Pr i ce £ /T Mi l l i n g Wh ea t Pr i ce £ /T 200 250 180 160 200 140 120 150 £ 100 £ 80 100 60 40 50 20 - - 07 08 09 6 07 7 08 8 09 9 10 6 7 8 9 06 07 08 09 07 08 09 10

  13. Slide 13: Agriculture – Fertiliser

    Agriculture – Fertiliser Fertiliser Raw Material Price Movem ents Sept 06 - Feb 10 700 600 Cost (£) per Tonne 500 POTASH (MOP) 400 PHOSPHATE (DAP/MAP) 300 NITROGEN (CAN) 200 100 0 Ja 6 Ja 7 Ja 8 Ja 9 M 7 M 8 M 9 10 S 7 S 8 S 9 -0 -0 -0 -0 -0 -0 -0 0 0 0 n- n- n- n- ep ep ep ep ay ay ay S Date  Tota

  14. Slide 14: Food

    Food  Additional UK milling capacity increases competitive pressures  Economic climate  Lower wheatfeed prices  Waste conscious consumers affect volumes  Manufacturing costs reduced through efficiencies 13

  15. Slide 15: Engineering

    Engineering  Continuing delays in some new contracts hamper progress  Wälischmiller acquisition in 2009 significantly broadens product range and geographical reach  Progress for the year hampered in UK by low margin contracts in first half 14

  16. Slide 16: Outlook

    Outlook Agriculture  Good underlying growth in feed blocks  Continuing difficult market in compound feed  Good H2 performance from fertiliser  Retail supplies, machinery and oil remain stable Food  Continuing over-capacity and competition Engineering  Stronger H2 expected, good long term prosp

Carr's Milling Industries — H1 2010 Earnings Presentation on 6ix