Slide 1: Together, we are NWF
Together, we are NWF NWF Group plc Half Year Results to November 2022
Slide 2: An experienced and capable team
Group overview Leadership team 2 An experienced and capable team Richard Whiting Chris Belsham Chief Executive Group Finance Director Key skills Experience Key skills • Strategy and leadership Joined in 2007. Previously group • Finance Experience • Sales and marketing finance director of Heywood Wil
Slide 3: NWF is a specialist distributor of fuel, food and feed across the UK
Group overview Key highlights 3 NWF is a specialist distributor of fuel, food and feed across the UK Summary Fuels Food Feeds • Strong track record of Supplying fuel to commercial The leading North West Delivering nutritional advice delivering increased and domestic customers ambient grocery consoli
Slide 4: Strong performance from all divisions; record first half
Group overview Results summary 4 Strong performance from all divisions; record first half Revenue Headline operating profit¹ Headline profit before tax¹ £541.8m £6.8m £6.2m +34.6% +44.7% +44.2% 22 £541.8m 22 £6.8m 22 £6.2m 21 £402.6m 21 £4.7m 21 £4.3m 20 £309.4m 20 £3.0m 20 £2.5m Diluted headline ea
Slide 5: Fuels: Operating highlights
Fuels Operating highlights 5 Marginal gains Fu e ls • Solid performance with improved Revenue margins offsetting lower volumes • Prior year included one-off gains £401.8m +40.2% from forecourt shortages 22 401.8 • Softer demand for heating oil (20% 21 286.5 lower) as result of a warm autumn, 205.7 h
Slide 6: Food: Operating highlights
Food Operating highlights 6 Increasing distribution Fo o d • Strong performance improvement Revenue and building momentum £36.0m • Higher level of outbound activity and +15.0% additional backhaul work, adding 22 36.0 value 21 31.3 • Good warehouse utilisation with 20 27.5 improving efficiencies Oper
Slide 7: Feeds: Operating highlights
Feeds Operating highlights 7 Strong recovery Fe e d s • Record milk price focusing farmers on Revenue nutritional advice to optimise yields £104.0m • Effective management of commodity +22.6% price movements and passing through 22 104.0 inflationary cost increases 21 84.8 • Commodity prices remain vo
Slide 8: Financial review
Financial review NWF GROUP PLC HALF YEAR RESULTS TO NOVEMBER 2022
Slide 9: Financial review: Income statement summary
Group overview Financial review 9 In c o m e s t a t e m e n t s u m m a ry Nov 2022 Nov 2021 May 2022 £m £m £m Revenue • Revenue increased by £139.2 million (34.6%): Fuels 401.8 286.5 621.1 • £122.4 million from higher commodity prices Food 36.0 31.3 62.6 • £56.7 million from increased selling pric
Slide 10: Financial review: Income statement summary
Group overview Financial review 10 In c o m e s t a t e m e n t s u m m a ry Nov 2022 Nov 2021 May 2022 • Headline PBT of £6.2 million (H1 2021: £4.3 £m £m £m million) Operating profit 6.7 (3.8) 13.2 • Finance costs increased to £0.8 million Finance costs (0.8) (0.6) (1.2) • Bank interest increased
Slide 11: Financial review: Balance sheet summary
Group overview Financial review 11 Ba la n c e s h e e t s u m m a ry Nov 2022 Nov 2021 May 2022 £m £m £m • Fixed assets decreased as depreciation exceeded capex and continued move to leased Fixed assets 66.6 68.8 68.1 vehicles Right of use assets 30.5 28.7 27.5 • Higher net working capital: Net wor
Slide 12: Financial review: Pension summary
Group overview Financial review 12 Pe n s io n s u m m a ry Movement in pension deficit Nov 2022 May 2022 18.0 £m £m 7.3 5.2 16.0 Assets 33.3 39.7 14.0 Liabilities (43.8) (49.0) 12.0 10.5 9.3 1.3 10.0 0.4 Deficit (10.5) (9.3) £m 8.0 Related deferred tax asset 2.2 2.3 6.0 4.0 Net pension liability (8
Slide 13: Financial review: Cash flow summary
Group overview Financial review 13 Ca s h flo w s u m m a ry Nov 2022 Nov 2021 May 2022 • Headline EBITDA* of £9.4 million (H1 2021: £7.2 million) £m £m £m • Working capital increase: Operating profit/(loss) 6.7 (3.8) 13.2 • commodity prices in Feeds Depreciation and amortisation 7.5 6.9 14.0 • c.£4
Slide 14: Financial review: Net debt summary
Group overview Financial review 14 Ne t d e b t s u m m a ry Twelve month movement in net debt • Facilities of £65 million with NatWest until October 2023 • Refinancing process is progressing to plan • Net cash of £1.1 million at November 2022 with substantial facility and covenant headroom Facility
Slide 15: A clear development strategy – significant opportunities
Group overview Development strategy 15 A clear development strategy – significant opportunities Summary Fuels Food Feeds • Diversified source of • Consolidate a highly • Targeting step-change • Leverage our national earnings fragmented market expansion backed by operations platform • Cash-generative
Slide 16: UK Fuel market
Fuels Development strategy 16 UK Fuel market • Fragmented market for oil distribution: UK Fuel Market (35 billion litres) • Top 10 players only 25%, over 150 small players • NWF No. 3 with 2% market share Certas (DCC) • Consolidation opportunities Watsons (WFL) • NWF Fuel demand resilient: NWF • Ove
Slide 17: Proven Acquisition process
Fuels Development strategy 17 Proven Acquisition process • Targeting UK oil distribution businesses • Clear valuation and pricing strategy • Effective transaction process • Model of retaining brands and customer- facing elements whilst centralising finance, IT and credit control • Active pipeline of
Slide 18: Delivering our ESG framework
Group overview ESG framework 18 Delivering our ESG framework The Group has further developed its commitment to delivering long-term sustainable value by defining our 2040 ambitions, including a net zero carbon emissions target Create a culture Invest in of safety our people Key activities during FY2
Slide 19: The NWF proposition and investment case
Group overview Summary and outlook 19 The NWF proposition and investment case Strong Growth Asset management opportunities backing team Solid track record Consolidate and Strong balance with ambition optimise sheet 6 1 £227.6m total assets completed Fuels clear strategy acquisitions since FY2019 Foc
Slide 20: Strong result & delivering strategy
Group overview Summary and outlook 20 Strong result & delivering strategy Strong result in first half - ahead of expectations and prior year • Strong performance from all divisions • Significantly ahead of prior year • NWF again demonstrated great resilience • Acquisition delivered in line with stra
Slide 21: Q&A
Group overview 21 Q&A Richard Whiting Chris Belsham Chief Executive Group Finance Director NWF GROUP PLC HALF YEAR RESULTS TO NOVEMBER 2022
Slide 22: Appendix: Additional information
Group overview Appendix 22 Additional information • Analyst coverage and consensus forecasts • Business overview • Locations • Organisation • Main site photo • Group financial performance • Divisional track record • Additional market data NWF GROUP PLC HALF YEAR RESULTS TO NOVEMBER 2022
Slide 23: Analyst coverage and consensus forecasts
Group overview Analyst coverage and consensus forecasts 23 Actual Consensus forecasts Analysts 2022 2023 2024 2025 Peel Hunt* Charles Hall Revenue £878.6m £1,006.9m £989.2m £1,009.2m Panmure Adrian Gordon Kearsey Headline operating £21.8m £13.5m £14.5m £14.8m Shore Capital Akhil Patel profit * Corpo
Slide 24: Fuels: Business overview
Fuels Business overview 24 Key figures NWF Fuels is a leading distributor of fuel oil and fuel cards delivering over 660 million litres across the UK to 109,000 customers. It is one of the largest authorised distributors of Texaco and is a major customer of other fuel suppliers including Shell and J
Slide 25: Food: Business overview
Food Business overview 25 Key figures Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over 1,000,000ft2 of warehousing and significant distribution assets. It works with over 200 customers including Arla and Typhoo. 122,000 139 pallet spaces trucks
Slide 26: Feeds: Business overview
Feeds Business overview 26 Key figures NWF Agriculture has grown to be a leading national supplier of ruminant animal feed to 4,325 customers in the UK, feeding 1 in 6 dairy cows in Britain. It operates from sites in Cumbria, Lancashire, Cheshire and Devon. 528,000 45 tonnes trucks 229 17 people tra
Slide 27: Business locations
Group overview Business locations 27 Feeds Aspatria Longtown Wardle* Wixland Food Wardle* Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Droitwich Dyserth Faringdon Fishers Pond Great Yarmouth Home Counties Kenilworth Kirkby Lonsdale Long Marston Mansfield Preston Redruth Southport Staffo
Slide 28: Organisation
Group overview Organisation 28 Chief Executive Non-Executives Richard Whiting Chairman: Philip Acton Richard Armitage Dawn Moore Group Finance Company Director Secretary Chris Belsham Rob Andrew Fuels Food Feeds Dave Walmsley Angela Carus Andrew Downie 347 employees 775 employees 229 employees NWF G
Slide 29: Wardle – main operating site
Group overview Wardle – main operating site 29 NWF GROUP PLC HALF YEAR RESULTS TO NOVEMBER 2022
Slide 30: Track record
Group overview Track record 30 Revenue Headline PBT 1,000 25 878.6 900 20.9 800 687.5 20 671.3 675.6 700 611.0 600 555.8 15 13.2 465.9 11.9 500 £m £m 10.2 9.7 400 10 8.3 8.5 300 200 5 100 0 0 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Headline EPS Dividend 40 35.0 8 7.5 7.
Slide 31: Divisional track record
Group overview Divisional track record 31 Fuels Food 700 20 70 3.0 18 600 60 16 2.5 Operating profit £m 500 14 50 Operating profit £m 2.0 12 Revenue £m Revenue £m 400 40 10 1.5 300 30 8 6 1.0 200 20 4 100 10 0.5 2 0 0 0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2
Slide 32: Fuels additional market data
Fuels Group overview 32 Fuels additional market data Oil prices – Brent crude ($ per barrel) Oil Market Journal 140 135 130 125 120 115 110 105 100 95 90 85 80 75 70 $ 65 60 55 50 45 40 35 30 25 20 15 10 5 0 NWF GROUP PLC HALF YEAR RESULTS TO NOVEMBER 2022
Slide 33: Feeds additional market data
Feeds Group overview 33 Feeds additional market data GB market 2017 2018 2019 2020 2021 2022 Milk (litres) 11.8bn 12.4bn 12.6bn 12.5bn 12.6bn 12.3bn UK dairy herd 1.9m 1.9m 1.9m 1.9m 1.9m 1.9m Ruminant 4.8m 5.1m 5.1m 4.8m 5.0m 4.8m feed market (tonnes) NWF (tonnes) 589k 589k 591k 625k 575k 528k Mark
Slide 34: A great big thank you to all our colleagues
From top left, left to right: Dawn Davies, Andreea Vinatoru, Lucy Jenkin, Andrea Mier, Karolina Banaszek, Liz Barratt, Adam Lysik, Dan Busby, Mark Ellis, Lilly Evans, Craig Davies, John Davies, Sam Bradley, Katie Welsh, Angel Asenov, Dave Snelson, Anna Meakin and Missi Nyarko. A great big thank you