Slide 1: Investing in Future Growth - Final Results to 31 May 2017
INVESTING IN FUTURE GROWTH FINAL RESULTS TO 31 MAY 2017
Slide 2: Results summary: Diversified business model delivered growth
GROUP OVERVIEW Results summary: Diversified business model delivered growth Revenue Headline operating profit* Headline profit before tax* £555.8m +19.3% £9.0m +3.4% £8.5m +2.4% 2017 £555.8m 2017 £9.0m 2017 £8.5m 2016 £465.9m 2016 £8.7m 2016 £8.3m Headline earnings per share* Net debt Dividend per s
Slide 3: Key highlights
GROUP OVERVIEW Key highlights » Revenue growth in all three divisions » Feeds increased volumes and traded product sales » Food greater activity levels and Palletline growth » Fuels volume growth across the network depots and successful “cold starts” in South East » Volatile market conditions » Key
Slide 4: Feeds - Operating Highlights
FEEDS - OPERATING HIGHLIGHTS Investment in a challenging market » Investment despite challenging market conditions » Milk prices increasing from a low point, up 31% to 26.9ppl » Milk production falling, down 5% » Ruminant feed market volumes up 1.5% (sheep) » Spot commodities up 17% to March ‘17 and
Slide 5: Food - Operating Highlights
FOOD - OPERATING HIGHLIGHTS Delivering increased activity profitably » Wardle at capacity – operating efficiently » Service levels maintained at 99.7% » Activity levels (loads) over 6% ahead of prior year » Palletline distribution service – continued development and additional resources deployed » N
Slide 6: Fuels - Operating Highlights
FUELS - OPERATING HIGHLIGHTS Growth across the depot network » Record volume growth to over 500 million litres » Warm summer and autumn reduced heating oil demand » Growth across the depot network, commercial business offset lower demand for heating oil » Solid progress in South East “cold starts” –
Slide 7: Financial Review: Income statement summary
FINANCIAL REVIEW Income statement summary May 2017 May 2016 £m £m Revenue Feeds 158.2 135.8 » Revenue increased by 19.3% - higher activity levels, Food 39.0 37.6 increased commodity prices in Feeds and Fuels and Fuels 358.6 292.5 acquisition contribution Total revenue 555.8 465.9 Operating profit »
Slide 8: Financial Review: Balance sheet summary
FINANCIAL REVIEW Balance sheet summary May 2017 May 2016 £m £m Fixed assets 69.4 64.4 » Fixed assets increased to £69.4 million as a result of capex (development and replacement spend) Net working capital 3.5 3.7 Assets employed 72.9 68.1 » Working capital improved by £0.2 million despite Pension de
Slide 9: Financial Review: Pension summary
FINANCIAL REVIEW Pension summary Movement in pension scheme deficit May 2017 Nov 2015 May 2016 » Single defined benefit pension scheme £m £m £m Assets 39.5 34.5 Liabilities (59.4) (52.8) » Closed to new members in 2002 and future accrual Deficit (19.9) (18.3) in 2016 Related deferred tax asset 3.4 3
Slide 10: Financial Review: Cash flow summary
FINANCIAL REVIEW Cash flow summary May 2017 May 2016 £m £m Cashflows from operating activities Operating profit 7.8 7.1 » Headline EBITDA* £13.2 million (2016: £12.6 Depreciation and amortisation 4.2 3.9 million) Impairment/loss on disposal of fixed assets - 0.7 Net gain on pension scheme closure -
Slide 11: Financial Review: Net debt summary
FINANCIAL REVIEW Net debt summary » Committed facilities of £65 million with RBS until Movement in net debt October 2019 14.0 5.2 13.0 » May 2017 net debt of £13.0 million, substantial 12.0 facility and covenant headroom 10.0 9.9 12.0 8.0 4.0 Facility Facility Drawn Invoice Discounting £50.0m £9.8m
Slide 12: Development Strategy: Solid platform for growth
GROUP DEVELOPMENT STRATEGY Solid platform for growth – good track record » Diversified source of earnings delivers resilient growth » Solid cash generative businesses in large stable markets » Agriculture focus: consolidate the market and broaden offer » Fuels development through new start-ups and b
Slide 13: Feeds - Development Strategy
FEEDS - DEVELOPMENT STRATEGY Investing in development Principal feed mills » Operational platform completed » Market prospects underpinned by improved milk prices » Agriculture an attractive market for the Group » National player with a strong track record Longtown Development Strategy » Further mar
Slide 14: Food - Development Strategy
FOOD - DEVELOPMENT STRATEGY Delivering service and efficiency » Market for ambient groceries challenging but stable » Working under contracts with blue chip brands and retailers » Delivering products across the UK » Warehousing remains in short supply Development Strategy » Maintain service and impr
Slide 15: Fuels - Development Strategy
FUELS - DEVELOPMENT STRATEGY Adding depots to a successful network » Third largest oil distributor in the UK » Low cost depot focused operating model » Network built predominantly by acquisition » Strong track record » Low ROS, high ROCE > 20% Development Strategy » Targeting better business balance
Slide 16: NWF Investment summary
GROUP OVERVIEW NWF Investment summary Strong management team Growth opportunities Asset backing Focus on returns Good cash generation Growing dividend NWF Group plc FINAL RESULTS TO 31 MAY 2017 16
Slide 17: Summary and outlook
GROUP OVERVIEW Summary and outlook » Revenue growth in all three divisions » Diversified business model delivered record earnings per share » Major strategic investment completed – new feed mills and strong operational platform » Current pricing in line with commodity costs » Acquisitions reflect st
Slide 18: Additional information
GROUP OVERVIEW Additional information » Business overview » Locations » Organisation » Main site photo » Group financial performance » Divisional track record » Additional market data NWF Group plc FINAL RESULTS TO 31 MAY 2017 18
Slide 19: Business Overview: Feeds
BUSINESS OVERVIEW Feeds Supply of feed to ruminants in the UK – principally dairy » National player – feeds one in six dairy cows in the UK, number two in the market » 589,000 tonnes per annum » Feed for dairy, beef and sheep » Sell added value products including minerals, supplements and fertiliser
Slide 20: Business Overview: Food
BUSINESS OVERVIEW Food Consolidation of ambient grocery products to UK Supermarkets » 100,000 pallet spaces » 800,000ft2 of warehousing in Wardle » Market leader in the North West » 461 people » 106 trucks, 229 trailers » 99.7% service level » 200 customers including Princes & Typhoo » Packing room
Slide 21: Business Overview: Fuels
BUSINESS OVERVIEW Fuels Supply of fuels and fuel cards to commercial, domestic and retail customers across the UK » Third largest oil distributor in the UK » 58,000 customers » 215 people » 19 depots across the UK » Supply 30 retail petrol stations » 93 tankers » Fuel card marketing » 513 million li
Slide 22: Business Locations
GROUP OVERVIEW Business Locations Feeds Aspatria Longtown Wardle* Wixland Food Wardle* Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Droitwich Dyserth Fishers Pond Great Yarmouth Home Counties Kenilworth Long Marston Mansfield Martlet Staffordshire Fuels Stoke Wardle* Yate * Wardle = Hea
Slide 23: Organisation
GROUP OVERVIEW Organisation Non Executives Chief Executive Richard Whiting Chairman: Sir Mark Hudson KCVO Yvonne Monaghan Philip Acton - Chairman designate Finance Director Company Secretary Lorraine Clinton (from Sept 2017) Chris Belsham Rob Andrew Feeds Food Fuels Andrew Downie Keith Forster Kevin
Slide 24: Wardle – Main operating site
GROUP OVERVIEW Wardle – Main operating site NWF Group plc FINAL RESULTS TO 31 MAY 2017 24
Slide 25: Track record
GROUP OVERVIEW Track record Revenue Headline PBT 600 540.2 545.8 537.7 555.8 9 8.5 8.1 8.3 8.5 7.7 492.3 8 500 465.9 7 400 6 5.1 5 300 £m £m 4 200 3 2 100 1 - - 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Headline EPS Dividend 16 7 13.6 14.0 6.0 14 13.1 13.2 6 5.7 12.4 5.4 5.1 12 5 4
Slide 26: Divisional track record
GROUP OVERVIEW Divisional track record Feeds Food 180 50 3.5 4.0 160 45 3.0 3.5 40 140 3.0 35 2.5 120 Operating profit £m Operating profit £m 30 Revenue £m Revenue £m 2.5 2.0 100 25 80 2.0 1.5 20 60 1.5 15 1.0 40 1.0 10 0.5 20 0.5 5 - - - - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 27: Fuels additional market data
GROUP OVERVIEW Fuels additional market data Oil Prices - Brent crude $ per barrel Oil Market Journal 60.00 55.00 50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 NWF Group plc FINAL RESULTS TO 31 MAY 2017 27
Slide 28: Feeds additional market data
Price per tonne $ Price per tonne £ 200 250 300 350 400 450 500 90 100 110 120 130 140 150 160 01/06/2016 01/06/2016 15/06/2016 13/06/2016 29/06/2016 25/06/2016 07/07/2016 13/07/2016 19/07/2016 27/07/2016 31/07/2016 10/08/2016 12/08/2016 24/08/2016 24/08/2016 07/09/2016 05/09/2016 21/09/2016 17/09/2