M.p. Evans Group Plc · LSE:MPE
M.p. Evans — FY2022 Earnings Presentation
17 slides from M.p. Evans's earnings presentation, Mar 21, 2023
Slide 1: 2022 Full-Year Results
2022 Full-Year Results More crop, more mills, more production – a strong basis for progressive shareholder returns Tuesday 21st March 2023 A PRODUCER OF SUSTAINABLE INDONESIAN PALM OIL 1
Slide 2: Agenda
AGENDA • Who we are • Group strategy • 2022 highlights • Palm-oil market • Sustainable palm oil • Group operations • 2022 results • Outlook • Returns for investors • Summary 2 2
Slide 3: Who We Are
WHO WE ARE 150 years – 11,000+ >$500 million celebrating a long Group employees invested in growth of history in tropical Indonesian business agriculture since 2005 56,200 total Committed RSPO (Roundtable hectares of planted to operational on Sustainable Palm oil palm between excellence in the Oil)
Slide 4: Strategy Pillars
STRATEGY M.P. Evans is a responsible producer PILLARS of sustainable Indonesian palm oil, striving for excellence in all its operations, with a focus on continuing growth and offering an increasing yield. RESPONSIBILITY EXCELLENCE GROWTH YIELD • RSPO members • Investing for the long • Increasing cro
Slide 5: 2022 Highlights
2022 HIGHLIGHTS 11% 9% INCREASE INCREASE IN TOTAL CROP IN TOTAL CPO PROCESSED PRODUCTION 11% 18% 5% DECREASE* INCREASE INCREASE IN OPERATING PROFIT IN REVENUE IN AVERAGE CPO MILL GATE PRICE 7% 21% NET CASH DECREASE* INCREASE SURPLUS 2022 NET CASH US$33.5M IN BASIC EARNINGS IN NORMAL DIVIDEND 2021 NE
Slide 6: Palm-Oil Market
PALM-OIL • Vegetable-oil prices increased significantly in early part of year • Average mill-gate price for Group production US$854 per tonne in year, up MARKET by 5% on 2021 • Response to outbreak of Ukraine war and concerns over sunflower-oil • Market settled at lower level, albeit at supplies his
Slide 7: Sustainable Palm Oil
RESPONSIBILITY SUSTAINABLE PALM OIL • Palm oil, when produced sustainably, provides a high-yield and low-cost supply of vegetable oil to a growing global market. • The Group ensures that all its areas are developed and managed sustainably. This includes no deforestation and no burning. • The Group h
Slide 8: Commitment to the Group's Estate Communities
COMMUNITIES COMMITMENT TO THE GROUP’S • During 2022, the Group built 350 new ESTATE housing units, and approximately 16,000 people live on the Group’s estates. COMMUNITIES • The Group has over 1,000 school places available, and school buses are provided by the Group. • The Group supports and encoura
Slide 9: Group Operations: Crop Development
EXCELLENCE GROUP OPERATIONS Crop growth CROP DEVELOPMENT 1,600,000 +11% 1,400,000 1,200,000 1,000,000 +12% TONNES 800,000 600,000 +4% 400,000 +16% 200,000 0 Own crops Scheme-smallholder crops Independent crops Total crop processed purchased 2022 2021 9
Slide 10: Group Operations: Crop and Milling Capacity
GROWTH GROUP CROP AND MILLING CAPACITY OPERATIONS (Tonnes millions) Increasing • CPO production 341,700 tonnes 2.0 (2021 – 312,900 tonnes) milling capacity 1.8 Own crop • Production cost lowest when milling Scheme smallholder crop own crop in Group mills Independent smallholder crop 1.6 • Production
Slide 11: Group Operations: Continuing Investment
GROWTH GROUP OPERATIONS Continuing • Planting continuing at Musi Rawas, almost to targeted 10,000ha planted investment area • Mill six at Musi Rawas completed shortly after end of year • Further 2,100ha acquired close to Simpang Kiri estate, increasing total planted area there to 4,800ha • Will revi
Slide 12: 2022 Results
YIELD 2022 RESULTS Another year of significant profitability REVENUE GROSS PROFIT EARNINGS PER SHARE UP 18% US$109.2 million 108.0 pence • Revenue up to US$326.9 • Gross margin 33% • Second year of EPS million (2021 US$276.6 (2021 – 37%) above £1 million) • Total cost of production • Normal dividend
Slide 13: 2022 Results: Balance Sheet
BALANCE SHEET 2022 RESULTS Cash generation supporting strategy SIGNIFICANTLY CASH NET DEBT BECOMES BALANCE SHEET SUPPORTS GENERATIVE DURING NET CASH DURING PLANS FOR ONGOING THE YEAR THE YEAR GROWTH • Operating cash before • Closing net funds US$33.5 • Net assets increased to interest and tax US$132
Slide 14: Outlook
OUTLOOK • First two months of 2023: • Total crop processed up by 8% • Significant increase in purchases of independent crop • Group CPO tenders in early part of year around US$750, but more recently increasing to above US$800 per tonne • Opened new mill and acquired further planted hectarage, all in
Slide 15: Returns for Investors
RETURNS RETURNS FOR • Total normal dividend of 2022 of 42.5p INVESTORS • Normal dividend up by 21% from the previous year, and 93% from 2020 • Long-term (30 year+) track record of increasing normal dividends for shareholders NORMAL DIVIDENDS (Pence per share) 45 40 35 30 25 20 15 10 5 0 2000 2001 20
Slide 16: Summary
SUMMARY Continuing, sustainable growth STRATEGY PILLARS DELIVERING IN OPERATIONS OUTSTANDING RESULTS EXCITING PROSPECTS • Responsibility • Growing crop • Revenue up 18% • Future increases in crop, • Excellence • Increasing milling • Gross margin 33% yield and milling • Growth capacity • Cash generat
Slide 17: A Producer of Sustainable Indonesian Palm Oil
A PRODUCER OF SUSTAINABLE INDONESIAN PALM OIL 17