M.p. Evans Group Plc · LSE:MPE
M.p. Evans — H1 2013 Earnings Presentation
31 slides from M.p. Evans's earnings presentation, Sep 12, 2013
Slide 1: Interim results for the 6 months ended 30 June 2013
28 Interim results for the 6 months ended 30 June 2013 12 September 2013
Slide 2: Index
1 Index Page Strategic focus ........................................................................................... 2 First-half 2013 results .................................................................................. 6 Operational highlights - Indonesian palm oil .......................
Slide 3: Strategic focus
2 Strategic focus 2013 interim results 2012 interim results September 2013 September 2012
Slide 4: Strategic focus – Indonesian palm oil
3 Strategic focus – Indonesian palm oil ¾ To invest further in a fast-growing, low-cost food commodity in which the Group’s management has many years of experience ¾ To increase planted areas in Indonesia – the world’s biggest producer with land and plentiful labour available ¾ To plant and maintain
Slide 5: Strategic focus – Australian beef cattle
4 Strategic focus – Australian beef cattle ¾ To capitalise on strategic opportunities re NAPCo ¾ To complete pasture-improvement programme on Woodlands and to increase cattle-carrying capacity ¾ To dispose of Woodlands in due course 2013 interim results 2012 interim results September 2013 September
Slide 6: Strategic focus – Malaysian property
5 Strategic focus – Malaysian property ¾ To continue to benefit from property-development and land-sale profits at Bertam Properties ¾ To dispose of the small Bertam Estate and the 40% interest in Bertam Properties at appropriate time to reinvest in Indonesian palm oil 2013 interim results 2012 inte
Slide 7: First-half results
6 First‐half results 2013 interim results 2012 interim results September 2013 September 2012
Slide 8: 2013 interim results – overall result and financial position
7 2013 interim results – overall result and financial position ¾ Continuing crop increases and extraction rates but weaker palm-oil prices profit down 33% to US$10.32 million EPS down 7.41 US cents to 16.20 US cents Group maintains positive cash balances and modest borrowings 2013 interim resu
Slide 9: 2013 interim results – revenue and gross profit
8 2013 interim results – revenue and gross profit ¾ Revenue maintained despite lower palm-oil prices but fall in gross profit (34%) 6 months ended 6 months ended 2013 2012 Increase/(decrease) Gross Gross Gross Revenue profit/(loss) Revenue profit/(loss) Revenue profit/(loss) US$’000 US$’000 US$’000
Slide 10: 2013 interim results – revenue and gross profit (continued)
9 2013 interim results – revenue and gross profit (continued) ¾ Result driven by lower CPO price, offset by higher f.f.b. crops plantation revenue similar at US$37.61 million average CPO price US$846 v US$1,096 – 23% decrease ¾ Loss of gross margin partly temporary: crop from newly-mature hectar
Slide 11: 2013 interim results – biological-asset gain
10 2013 interim results – biological-asset gain Biological gain and planting expenditure both lower than 2012 but net contribution US$5.82 million (2012 US$4.84 million) Increased net biological gain due to higher 20-year average palm-oil price 2013 interim results 2012 interim results September
Slide 12: 2013 interim results – share of associates' profits
11 2013 interim results – share of associates’ profits ¾ Group share of associates’ results (after tax and biological bearer-asset adjustment) reduced, as with subsidiaries 6 months ended 6 months ended 2013 2012 Increase/(decrease) Profit/(loss) Profit/(loss) Profit/(loss) US$’000 US$’000 % Plantat
Slide 13: 2013 interim results – share of associates' profits (continued)
12 2013 interim results – share of associates’ profits (continued) ¾ Plantation results reflect lower CPO price and lower extraction rates on joint venture, PT Agro Muko ¾ NAPCo result similar to previous year, again due to lower cattle prices ¾ Bertam Properties’ profit increased as profit from sal
Slide 14: Operational highlights – Indonesian palm oil
13 Operational highlights – Indonesian palm oil 2013 interim results 2012 interim results September 2013 September 2012
Slide 15: Operational highlights – palm oil
14 Operational highlights – palm oil Planted areas at 30 June 2013 Ha Ha Established, mature North Sumatran estates 9,500 New projects - Kalimantan (8,300 ha mature) 9,700 - Bangka (2,000 ha mature) 3,800 ———— 13,500 ———— Total, majority-owned, areas 23,000 Effective share of associates’ established
Slide 16: Operational highlights – palm oil (continued)
15 Operational highlights – palm oil (continued) Remaining plantable areas on new projects (+/- 2 years) Group Smallholders Kalimantan Bangka Total Kalimantan Bangka Total Ha Ha Ha Ha Ha Ha Planted at end 2012 9,700 3,800 13,500 4,000 1,700 5,700 Current estimate to completion* 900 2,200 3,100 400 2
Slide 17: Operational highlights – palm oil (continued)
16 Operational highlights – palm oil (continued) ¾ Crops on upward trend (14% higher than first half 2012) ¾ Crops on new projects 67% higher ¾ Crops on mature estates fell – cyclical yield downturn and replanting programme ¾ One mill (40‐tonne) operating in North Sumatra and one (60‐ tonne) in Kali
Slide 18: Operational highlights – palm oil (continued)
17 Operational highlights – palm oil (continued) ¾ Planting programme on new projects started in 2005 – f.f.b. crops now increasing significantly crop in 2010 – 198,000 tonnes crop in 2011 – 250,000 tonnes crop in 2012 – 317,000 tonnes crop in 2013 – expected to reach 350,000 tonnes (+ coope
Slide 19: Operational highlights – Australian beef cattle
18 Operational highlights – Australian beef cattle 2013 interim results 2012 interim results September 2013 September 2012
Slide 20: Operational highlights – Australian beef cattle
19 Operational highlights – Australian beef cattle ¾ Woodlands herd rebuilt to 10,300 head at 30 June 2013 including 5,100 on agistment good rainfall in early 2013 resulting in good pastures - weight gains slightly higher than first half 2012 lower-than-average rainfall since 30 June pasture
Slide 21: Operational highlights – Australian beef cattle (continued)
20 Operational highlights – Australian beef cattle (continued) ¾ NAPCo 2013 to date a poor season on majority of properties first half 2013 loss due to weaker cattle prices cattle prices have improved a little since 30 June as Australian Dollar softens expanded Wainui feedlot proving its wor
Slide 22: Operational highlights – Malaysian property
21 Operational highlights – Malaysian property 2013 interim results 2012 interim results September 2013 September 2012
Slide 23: Operational highlights - Malaysian property
22 Operational highlights - Malaysian property ¾ Operational highlights increased number of completed sales of developed properties in first half resulting in higher profits released no land sales in first half 2013 but some in the pipeline Bertam Properties’ profits periodically distributed a
Slide 24: Operational highlights – Malaysian assets
23 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) — 36.7
Slide 25: Investment case
24 Investment case 2013 interim results 2012 interim results September 2013 September 2012
Slide 26: Investment case
25 Investment case ¾ M. P. Evans well positioned to benefit from sharply-increasing f.f.b. crops with production from majority-owned plantations doubling in four years to 500,000 tonnes in 2015 ¾ Experienced management with excellent track record in developing first-class plantations and processing
Slide 27: Appendices
26 Appendices 2013 interim results 2012 interim results September 2013 September 2012
Slide 28: Consolidated income statement
27 Consolidated income statement 6 months ended 6 months ended Year ended 30 June 2013 30 June 2012 31 December 2012 US$’000 US$’000 US$’000 Revenue 38,430 38,568 83,213 ———— ———— ———— Gross profit 9,471 14,357 23,035 Biological-asset adjustment 3,453 1,104 2,123 Exchange differences (841) (1,052) (
Slide 29: Consolidated balance sheet
28 Consolidated balance sheet 6 months ended 6 months ended Year ended 30 June 2013 30 June 2012 31 December 2012 US$’000 US$’000 US$’000 Non-current assets Goodwill 1,157 1,157 1,157 Biological assets, property, plant and equipment 252,979 232,330 246,696 Investments 123,702 133,050 130,852 Deferre
Slide 30: Consolidated cash-flow statement
29 Consolidated cash-flow statement 6 months ended 6 months ended Year ended 30 June 2013 30 June 2012 31 December 2012 US$’000 US$’000 US$’000 Net cash generated by operating activities 2,393 16,548 33,897 ———— ———— ———— Investing activities Interest received 438 537 1,338 Proceeds on disposal of a
Slide 31: Location of the Group's properties and those of its associates
Location of the Group’s properties and 30 those of its associates 2013 interim results 2012 interim results September 2013 September 2012