Slide 1: Delivering Fuel, Food & Feed – Final Results to 31 May 2018
DELIVERING FUEL, FOOD & FEED NWF GROUP PLC FINAL RESULTS TO 31 MAY 2018
Slide 2: Group Overview: Results summary
GROUP OVERVIEW Results summary: Record results delivering strong performance in exceptional conditions Revenue Headline operating profit* Headline profit before tax* £611.0m +9.9% £10.6m +17.8% £10.2m +20.0% 2018 £611.0m 2018 £10.6m 2018 £10.2m 2017 £555.8m 2017 £9.0m 2017 £8.5m Headline earnings pe
Slide 3: Key highlights
GROUP OVERVIEW Key highlights » Record results for the Group » Fuels rewarded for excellent service in a long, cold winter » Food managed significant new customer on-take » Feeds delivered planned increased returns on prior year’s investment » Market conditions » Long, cold winter conditions » Risin
Slide 4: Fuels - Operating Highlights
FUELS - OPERATING HIGHLIGHTS Excellent customer service in a long, cold winter » Reward for delivering great service in a long, cold winter » Increased demand for heating oil and higher pence per litre » Challenging winter conditions at all 19 depots; empowered depot teams gained customers » Further
Slide 5: Food - Operating Highlights
FOOD - OPERATING HIGHLIGHTS Managing significant new customer on-take » 20,000 pallet spaces of new business won in the year » Securing new contracts » Replaces large contract » Improved customer profile » Managed challenges of multiple new customer on-take; recruitment/training of over 50 additiona
Slide 6: Feeds - Operating Highlights
FEEDS - OPERATING HIGHLIGHTS Planned returns from strategic investment » Delivered planned returns on prior year investment » Reduced operation and transport costs » Pricing aligned to commodity prices » Increased sales of traded products to farming customers » Market conditions positive » Milk pric
Slide 7: Financial Review: Income statement summary
FINANCIAL REVIEW Income statement summary May 2018 May 2017 £m £m Revenue » Revenue increased by 9.9%: Fuels 400.7 358.6 Food 40.4 39.0 » £27m from higher activity levels Feeds 169.9 158.2 » £28m from increased commodity costs in Fuels and Total revenue 611.0 555.8 Feeds Operating profit Fuels 6.9 4
Slide 8: Financial Review: Income statement summary - continued
FINANCIAL REVIEW Income statement summary - continued May 2018 May 2017 £m £m Operating profit 10.6 7.8 Finance costs (0.9) (1.1) » Headline PBT* increased 20.0% to £10.2 million Headline profit before tax* 10.2 8.5 » Effective tax rate of 20% – in line with underlying rate Exceptional items - (1.2)
Slide 9: Financial Review: Balance sheet summary
FINANCIAL REVIEW Balance sheet summary May 2018 May 2017 £m £m Fixed assets 67.9 69.4 » Fixed assets reduced to £67.9 million as a result of Net working capital 2.5 3.5 planned lower levels of capital expenditure Assets employed 70.4 72.9 » Working capital improved by £1.0 million Pension deficit (1
Slide 10: Financial Review: Pension summary
FINANCIAL REVIEW Pension summary Movement in pension scheme deficit May 2018 Nov 2015 May 2017 £m £m £m » Single defined benefit pension scheme Assets 36.3 39.5 » Closed to new members in 2002 and future accrual in Liabilities (53.4) (59.4) 2016 Deficit (17.1) (19.9) Related deferred tax asset 2.9 3
Slide 11: Financial Review: Cash flow summary
FINANCIAL REVIEW Cash flow summary May 2018 May 2017 £m £m Cashflows from operating activities Operating profit 10.6 7.8 » Headline EBITDA* of £15.1 million (2017: £13.2 million) Depreciation and amortisation 4.5 4.2 (Profit)/loss on disposal of fixed assets (0.1) - Working capital 1.0 0.2 » Further
Slide 12: Financial Review: Net debt summary
FINANCIAL REVIEW Net debt summary » Renewed facilities of £65 million with RBS until Movement in net debt October 2023 15.0 13.0 15.1 » Net debt of £6.4 million at May 2018 with substantial 13.0 facility and covenant headroom 11.0 9.0 Facility Facility Drawn 0.5 6.4 7.0 2.9 Invoice Discounting £50.0
Slide 13: Development Strategy: Solid platform for growth
GROUP DEVELOPMENT STRATEGY Solid platform for growth – good track record » Diversified sources of earnings deliver resilient growth » Solid cash generative businesses in large stable markets » Fuels: consolidate the market and winning new customers » Food: optimise customer mix and targeted expansio
Slide 14: Fuels - Development Strategy: Consolidate the market
FUELS - DEVELOPMENT STRATEGY Consolidate the market » Fragmented market for oil distribution » Stable demand for oil with other energy sources to meet increasing demand for energy UK oil market share (of c. 35bn litres) Certas WFL NWF Fuels Ri x Petroleum Top 10 Ni cholls (Fuel Oils) 24% Goff Petrol
Slide 15: Fuels - Development Strategy: Consolidate the market
FUELS - DEVELOPMENT STRATEGY Consolidate the market NWF depots May 2018 Off gas grid homes in GB » Third largest oil distributor in the UK » Low cost depot operating model » Good track record of acquisition integration » Low ROS, high ROCE > 20% Development Strategy » Consolidation of UK depot marke
Slide 16: Food - Development Strategy
FOOD - DEVELOPMENT STRATEGY Delivering service and efficiency » Market for ambient groceries remains large and stable » Working under contracts with blue chip brands and retailers » Delivering products across the UK » Warehousing in the UK remains in short supply Development Strategy » Deliver opera
Slide 17: Feeds - Development Strategy
FEEDS - DEVELOPMENT STRATEGY Consolidate the market and broaden the offer Principal feed mills & customers » Operational platform completed » Market prospects underpinned by stable milk prices » Agriculture an attractive market for the Group » National player with a strong track record Development S
Slide 18: NWF Investment summary
GROUP OVERVIEW NWF Investment summary Strong management team Growth opportunities Asset backing Focus on return on capital Good cash generation Growing dividend NWF Group plc FINAL RESULTS TO 31 MAY 2018 18
Slide 19: Summary and outlook
GROUP OVERVIEW Summary and outlook » Record results for the Group, reward for delivering great service in a long, cold winter; delivered profit and converted into cash » Established a clear development strategy with a proven track record » Strong balance sheet » Renewed £65 million, 5 year banking f
Slide 20: Additional information
GROUP OVERVIEW 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 FINAL RESULTS TO 31 MAY 2018 20
Slide 21: Analyst coverage and consensus forecasts
GROUP OVERVIEW Analyst coverage and consensus forecasts Actual Consensus forecasts 2018 2018 2019 2020 Revenue £611.0m £611.7m £628.0m £638.0m Headline operating profit £10.6m £10.5m £9.6m £10.1m Headline profit before tax £10.2m £10.0m £9.0m £9.6m Headline earnings per share 16.7p 16.4p 14.8p 15.3p
Slide 22: 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 » 59,000 customers » 203 people » 19 depots across the UK » Supply 29 retail petrol stations » 99 tankers » Fuel card marketing » 543 million li
Slide 23: Business Overview: Food
BUSINESS OVERVIEW Food Consolidation of ambient grocery products to UK Supermarkets » Market leader in the North West » 100,000 pallet spaces » 800,000ft2 of warehousing in Wardle » 543 people » 122 trucks, 236 trailers » 200 customers including Arla & Typhoo » Packing room for added value work » E-
Slide 24: Business Overview: Feeds
BUSINESS OVERVIEW Feeds Supply of feed to ruminants in the UK – principally dairy » Number two in the UK – feeds one in six dairy cows in the UK » Feed for dairy, beef and sheep » 589,000 tonnes per annum » Sell added value products including minerals, supplements and fertiliser » 4,750 customers »
Slide 25: 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 26: Organisation
GROUP OVERVIEW Organisation Chief Executive Richard Whiting Non Executives Chairman: Philip Acton Yvonne Monaghan Company David Downie Finance Director Secretary Rob Chris Belsham Andrew Fuels Food Feeds Richard Huxley Keith Forster Andrew Downie 203 employees 543 employees 198 employees NWF Group p
Slide 27: Wardle – Main operating site
GROUP OVERVIEW Wardle – Main operating site NWF Group plc FINAL RESULTS TO 31 MAY 2018 27
Slide 28: Track record
GROUP OVERVIEW Track record Revenue Headline PBT 700 12 611.0 10.2 600 545.8 537.7 555.8 10 492.3 8.5 8.3 8.5 500 465.9 8.1 7.7 8 400 £m £m 6 300 4 200 100 2 - - 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 Headline EPS Dividend 18 16.7 7 6.3 6.0 16 6 5.7 14.0 5.4 13.5 5.1 14 13.0 12.
Slide 29: Divisional track record
GROUP OVERVIEW Divisional track record Fuels Food 450 8.0 50 3.5 400 7.0 45 3.0 350 40 6.0 35 2.5 300 Operating profit £m 5.0 30 Operating profit £m Revenue £m Revenue £m 250 2.0 4.0 25 200 1.5 3.0 20 150 15 1.0 2.0 100 10 1.0 0.5 50 5 - - - - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 30: Fuels additional market data
GROUP OVERVIEW Fuels additional market data Oil Prices - Brent crude $ per barrel Oil Market Journal 85 80 75 70 65 60 55 50 45 $ 40 35 30 25 20 15 10 5 0 17 17 17 17 17 17 17 17 17 17 17 17 18 18 18 18 18 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 0/ 1/ 2/ 1/ 2/ 3/ 4/ 5/ /0 /0 /0 /0 /0 /0 /0 /0 /0 /1 /1 /1 /0 /0 /
Slide 31: Feeds additional market data
Price per tonne $ Price per tonne £ 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 0 50 100 150 200 250 300 350 400 450 500 01/06/2017 01/06/2017 15/06/2017 13/06/2017 29/06/2017 25/06/2017 07/07/2017 13/07/2017 19/07/2017 27/07/2017 31/07/2017 10/08/2017 12/08/2017 24/08/2017 24/0