34 slides from M.p. Evans's earnings presentation, Sep 14, 2012
Slide 1: Interim results for the 6 months to 30 June 2012
28 Interim results for the 6 months 30 June 2012 14 September 2012
Slide 2: Index
1 Index Page Corporate overview and financial highlights ................................................... 3 Operational highlights.................................................................................. - Indonesian palm oil ..............................................................
Slide 3: Corporate overview and financial highlights
2 Corporate overview and financial highlights 2012 interim results September 2012
Slide 4: Corporate overview
3 Corporate overview A UK, AIM-listed agri-business group producing palm oil in Indonesia and beef cattle in Australia, as well as residual Malaysian property assets in the course of disposal Geographical spread of Group assets Malaysia - property 11% Australia - beef cattle Indonesia - 23% palm oil
Slide 5: Corporate overview (continued): Palm oil
4 Corporate overview (continued) Palm oil biggest and most-traded oil in world vegetable-oil market – continuing price strength continuing and increasing demand from India, China, Europe and Indonesia historically low stock: usage ratios for major oils though palm-oil stocks are high competitive yie
Slide 6: Corporate overview (continued): Beef cattle
5 Corporate overview (continued) Beef cattle Australia well placed to serve Asia – world’s fastest-growing beef consumer green, clean image in Australia 2012 interim results September 2012
Slide 7: Financial highlights
6 Financial highlights Overall gross profit 15% higher Indonesian gross (plantation) profit increased by 14% after higher crops but lower palm-oil prices Australian gross loss increased following fall in cattle prices at half year Profit for the period decreased by 31% to US$15.33 million (2011 US$2
Slide 8: Operational highlights – Indonesian palm oil
7 Operational highlights – Indonesian palm oil 2012 interim results September 2012
Slide 9: Operational highlights – palm oil
Operational highlights – palm oil 8 Planted areas at 30 June 2012 Ha Ha Established North Sumatran estates 9,400 New projects - Kalimantan (6,900 ha mature) 9,400 - Bangka (1,950 ha mature) 3,200 ———— 12,600 ———— Total, majority-owned, areas 22,000 Effective share of associates’ established planted
Slide 10: Operational highlights – palm oil (continued)
9 Operational highlights – palm oil (continued) Remaining plantable areas on new projects (+/- 3 years) Group Smallholders Kalimantan Bangka Total Kalimantan Bangka Total Ha Ha Ha Ha Ha Ha Planted at 30 June 2012 9,400 3,200 12,600 3,700 1,500 5,200 Current estimate to completion* 2,000 2,800 4,800
Slide 11: Operational highlights – palm oil (continued)
10 Operational highlights – palm oil (continued) New projects on sharp upward trend of f.f.b.production – first-half crop 40,800 tonnes, 92% higher than first half 2011 Established estates in Sumatra continue to improve – f.f.b. crop 97,300 tonnes, 6% higher than first-half 2011 One mill (40-tonne)
Slide 12: Operational highlights – palm oil (continued)
11 Operational highlights – palm oil (continued) Planting programme on new projects started in 2005 – f.f.b. crops now increasing significantly Actual and projected fresh fruit bunch crop (Tonnes) 700,000 Smallholders 600,000 Own production 500,000 400,000 300,000 200,000 100,000 0 2009 2010 2011 20
Slide 13: Operational highlights - Australian beef cattle
12 Operational highlights - Australian beef cattle 2012 interim results September 2012
Slide 14: Operational highlights – Australian beef cattle
13 Operational highlights – Australian beef cattle Woodlands herd maintained at over 10,000 head during period abundant rainfall late in 2011 resulted in good pastures in first half 2012 and improved weight gains cattle prices fell around the end of the half year reducing the valuation of the herd a
Slide 15: Operational highlights – Australian beef cattle (continued)
14 Operational highlights – Australian beef cattle (continued) NAPCo A good first-half season in 2012 with most of fourteen properties having plentiful feed Cattle in good condition, whilst gaining weight If prices recover in second half, first-half loss will be reversed Grain-fed prices recovering
Slide 16: Operational highlights - Malaysian property
15 Operational highlights - Malaysian property 2012 interim results September 2012
Slide 17: Operational highlights - Malaysian property
16 Operational highlights - Malaysian property Operational highlights overall continuing successful development of housing and commerical buildings by Bertam Properties small land sale in first half 2012 but more expected to be completed in second half 2012 or first half 2013 Bertam Properties’ prof
Slide 18: Operational highlights – Malaysian assets
17 Operational highlights – Malaysian assets Estate and investment disposals to date Sold and Years cash Property of sales received To be sold Total US$’m US$’m US$’m Malaysian estates 2006-08 77.00 — 77.00 Other Malaysian and Thai disposals 2008-10 6.81 — 6.81 Bertam Properties (40% holding) — 35.8
Slide 19: First-half 2012 results
18 First-half 2012 results 2012 interim results September 2012
Slide 20: First-half 2012 results – overall result and financial position
19 First-half 2012 results – overall result and financial position Good result for first-half 2012 revenue up 37% to US$38.6 million and gross profit up 15% to US$14.4 million significantly reduced share in profit of associated companies: down 45% to US$7.3 million profit for the period down 31% to
Slide 21: First-half 2012 results – revenue and gross profit
20 First-half 2012 results – revenue and gross profit Strong growth in revenue (37%) reflected in increased gross profit (15%) 6 months ended 30 June 6 months ended 30 June 2012 2011 Increase/(decrease) Revenue Gross profit Revenue Gross profit Revenue Gross profit US$’000 US$’000 US$’000 US$’000 %
Slide 22: First-half 2012 results – revenue and gross profit (continued)
21 First-half 2012 results – revenue and gross profit (continued) Result due to high plantation crop growth even though partially offset by a reduced price for CPO plantation revenue up 36% to US$37.5 million average CPO price US$1,096 v US$1,195 – 8% decrease Further temporary erosion of gross marg
Slide 23: First-half 2012 results – other operating flows, financing and tax
22 First-half 2012 results – other operating flows, financing and tax Biological gain and planting expenditure similar to first-half 2011, making a net contribution of US$1.1 million (2011 US$1.7 million) Exchange loss due to depreciation of Rupiah diminishing the value of the Group’s Indonesian deb
Slide 24: First-half 2012 results – share of associates' profits
23 First-half 2012 results – share of associates’ profits Group share of associates’ results did not match strong performance in subsidiaries 6 months ended 30 June 6 months ended 30 June 2012 2011 Increase/(decrease) Revenue Profit Revenue Profit Revenue Profit US$’000 US$’000 US$’000 US$’000 % % P
Slide 25: First-half 2012 results – share of associates' profits (continued)
24 First-half 2012 results – share of associates’ profits (continued) Plantation associates delivering some crop growth, but revenue down on CPO price fall NAPCo sales higher on greater volumes; result due to non-cash reduction in herd value Bertam Properties’ profit reduced as revenue from sales of
Slide 26: Investment case
25 Investment case 2012 interim results September 2012
Slide 27: Investment case
26 Investment case M. P. Evans well positioned to benefit from sharply-increasing f.f.b. production derived both from new projects and from improving mature estates Increasing demand from rapidly-expanding Asian economies for cooking oil and red meat Price prospects for both Indonesian palm oil and
Slide 28: Appendices
27 Appendices 2012 interim results September 2012
Slide 29: Consolidated income statement
28 Consolidated income statement 6 months ended 6 months ended Year ended 30 June 2012 30 June 2011 31 December 2011 US$’000 US$’000 US$’000 Revenue 38,568 28,226 57,756 ———— ———— ———— Gross profit 14,357 12,538 25,919 Biological-asset adjustment 1,104 1,699 2,317 Exchange differences (1,052) 1,485
Slide 30: Consolidated balance sheet
29 Consolidated balance sheet 30 June 30 June 31 December 2012 2011 2011 US$’000 US$’000 US$’000 Non-current assets Goodwill 1,157 1,157 1,157 Biological assets, property, plant and equipment 232,330 201,318 223,458 Investments 133,050 137,110 131,804 Deferred-tax asset and non-current debtor 4,653
Slide 31: Consolidated cash-flow statement
30 Consolidated cash-flow statement 6 months ended 6 months ended Year ended 30 June 2012 30 June 2011 31 December 2011 US$’000 US$’000 US$’000 Net cash generated by operating activities 16,548 19,340 48,339 ———— ———— ———— Investing activities Interest received 537 528 1,078 Proceeds on disposal of
Slide 32: Palm-oil price
31 Palm-oil price 1,600 1,400 US$ per tonne 1,200 1,000 800 600 400 Rotterdam c.i.f 200 Month-year 0 2012 interim results September 2012
Slide 33: Australian cattle – 100-day "grain finished"
32 Australian cattle – 100-day “grain finished” 4.50 A$ per kg 4.00 3.50 3.00 100-day "grain-finished" cattle Month-year 2.50 2012 interim results September 2012
Slide 34: Australian cattle – Eastern Young Cattle Indicator
33 Australian cattle – Eastern Young Cattle Indicator 4.50 A$ per kg 4.00 3.50 3.00 2.50 Eastern Young Cattle Indicator (EYCI) Month-year 2.00 2012 interim results September 2012