Slide 1: NWF Group plc Preliminary results year to 31 May 2011
NWF Group plc Preliminary results year to 31 May 2011
Slide 2: Results summary
Results summary > Third record year for the Group > Delivering performance, outstanding result from Feeds > Demonstrating strategic intent with the Evesons Fuels acquisition > Acquisition and increased capital expenditure funded from cash generation > Significant increases in commodity prices fuelle
Slide 3: Operational highlights - Feeds
Operational highlights - Feeds Wheat Futures Price LIFFE May 2011 > Unprecedented commodity price increases and volatility 220 210 200 > Feed market stable 190 180 Price per tonne £ > 11 price increases to smooth increases to farmers 170 160 150 > 5% increase in key compound sales 140 130 > Increasi
Slide 4: Operational highlights - Food
Operational highlights - Food > Volatility in demand as supermarkets increased promotional activity to combat cost inflation, total outloads stable > Overflow storage utilised to manage customers stock requirement > Service level maintained at 99.5% > Improvement plan implemented in H2 > Reviewed cu
Slide 5: Operational highlights – Fuel
Operational highlights – Fuel > Strong performance against tough comparator > Cold December with panic buying and warmest April > Introduced Murco retail programme > Evesons acquisition Jan 2011 – > 80 million litres > 4 complementary depots, 5,000 customers > Acquisition on plan and integrated succ
Slide 6: Financial review – income statement summary
Financial review – income statement summary May 2011 May 2010 Growth £m £m % Revenue Food 44.2 42.2 4.7% Feeds 112.6 93.7 20.2% Fuels 307.0 243.9 25.9% Total revenue 463.8 379.8 22.1% Operating profit Food 2.0 3.1 -35.5% Feeds 4.0 2.1 90.5% Fuels 3.3 3.8 -13.2% Total operating profit 9.3 9.0 3.3% Fi
Slide 7: Financial review – balance sheet summary
Financial review – balance sheet summary May 2011 May 2010 £m £m Fixed assets 47.0 42.3 Net Working Capital 8.5 11.0 Assets Employed 55.5 53.3 Pension deficit (11.3) (12.3) Tax provisions (3.9) (3.5) Net Debt (11.3) (13.9) Net Assets 29.0 23.6 Net Debt : EBITDA 0.9 1.1 NWF Group plc Preliminary resu
Slide 8: Financial review – net debt summary
Financial review – net debt summary Debt Summary Movement in net debt > Committed facilities of £51.0m with RBS until Oct 20.0 2013. In addition £7m of HP finance is available Facility Facility Drawn Invoice discounting £40.0m £9.8m Revolving Credit Facility £10.0m £0.0m £m 10.0 Overdraft / (cash) £
Slide 9: Financial review – cash flow summary
Financial review – cash flow summary May 2011 May 2010 £m £m Cashflows from operating activities Operating profit 9.3 9.0 Depreciation and amortisation 3.8 3.3 Working capital 3.8 2.0 Other 0.1 (0.2) Operating cash flow 17.0 14.1 Interest paid (1.2) (1.3) Tax paid (2.5) (1.9) Net cash from operating
Slide 10: Development outlook: Resilience of NWF – strong platform for development
Development outlook: Resilience of NWF – strong platform for development > Strong operational performance through the recession and global financial crisis. > Group profitable, cash generative, low debt levels > Substantial asset base > Feeds supplies over 4,000 farmers; consumer demand for milk and
Slide 11: Development outlook – Feeds
Development outlook – Feeds Customer locations 2011 > Agriculture markets attractive with increasing populations and food security > NWF No. 2 ruminant feed producer in the UK > Strong national sales team, advising over 4,000 farmers > Track record of winning new business, dairy specialists > Short
Slide 12: Development outlook – Food
Development outlook – Food > Robust demand for ambient groceries > Increase in short term volatility > Reducing own fleet to 120 units & increased use of sub contractors > Investing in new efficient vehicles > Optimising customers to asset base > Changed shift patterns for more flexible working > In
Slide 13: Fuels – Development through bolt on acquisitions – Evesons Fuels
Fuels – Development through bolt on acquisitions – Evesons Fuels UK fuel distributors market positioning Evesons NWF Fuels Depots 4 13 National Crown Oil DCC (GB Oils) Fleet 21 55 Total Butler Watson Petroleum Geographical coverage People 50 147 NWF Fuels (pre and post transaction) Rix Pace Volume (
Slide 14: Results summary
Results summary > Third record year for the Group > Cash conversion greater than 100% > Completed and integrated largest acquisition to date > Debt less than one times EBITDA, long term funding in place > Development opportunities across the Group Operating profit Profit before tax Net debt £9.3m +3
Slide 15: Additional information on NWF Group plc
Additional information on NWF Group plc > Business backgrounds > Locations > Organisation > Main site photo > Five year financial performance > Ten year divisional track record > Additional market data NWF Group plc Preliminary results 31 May 2011 15
Slide 16: Business background – Feeds
Business background – Feeds Feeds Supply of feed to ruminants in the UK – principally dairy Our business > National player – feed one in seven dairy cows in the UK, number two in the market > 462,000 tonnes produced in 2010/11 > Feed dairy, beef and sheep > Sell added value products including minera
Slide 17: Business background – Food
Business background – Food Foods Consolidation of ambient grocery products to UK supermarkets Our business > 115,000 pallet spaces > 900,000ft2 of warehousing in Wardle and Deeside (North West) > Market leader in the North West > 566 people > 120 trucks, 275 trailers > 99.5% service level > 200 cust
Slide 18: Business background – Fuels
Business background – Fuels Fuels Supply of fuels and fuel cards to commercial, domestic and retail customers across the UK Our business > Fourth largest distributor in the UK > 35,000 customers > 199 people > 17 depots across the UK > 76 tankers > Supply 100 retail petrol stations > Fuel card marke
Slide 19: Locations
Locations Food 1 Deeside 2 Wardle* Feeds 1 Ayr 2 Penrith 3 Wardle* 4 Wixland Fuels 1 Acle 2 Ammanford 3 Bangor 4 Boston Evesons Fuel sites 5 Burnley 6 Burwell 1 Kenilworth 7 Dyserth 2 Long Marston 8 Kingsbury 3 Droitwich 9 Leaton 4 Southampton Kenilworth 10 Nottingham Droitwich Long Marston 11 Stoke
Slide 20: Group organisation
Group organisation Chief Executive Non-Executive Directors Richard Whiting Mark Hudson (Chairman) John Acornley David Southworth Finance Director Company Secretary Johnathan Ford Rob Andrew Distribution Feeds Fuels Managing Director Managing Director Managing Director Keith Forster Kevin Kennerley D
Slide 21: Wardle site: Group head office and major operating site
Wardle site: Group head office and major operating site 21 NWF Group plc Preliminary results 31 May 2011
Slide 22: Five year financial performance
Five year financial performance Revenue Earnings per share 500 14 450 12 400 350 10 300 £m 8 p 250 200 6 150 4 100 2 50 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Profit before tax Dividend per share 8 5 7 4 6 5 3 £m 4 p 3 2 2 1 1 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 NWF
Slide 23: Divisional Financial Track records
Divisional Financial Track records Food Feeds 50 3.5 120 45 4.0 3.0 40 100 3.5 35 2.5 3.0 80 Revenue £m 30 Revenue £m 2.0 2.5 EBIT £m EBIT £m 25 60 2.0 1.5 20 40 1.5 15 1.0 1.0 10 0.5 20 5 0.5 0 0.0 0 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 24: Fuels – additional market data
$ 0 100 120 130 140 10 20 30 40 50 60 70 80 90 110 01/06/2010 08/06/2010 15/06/2010 22/06/2010 29/06/2010 06/07/2010 13/07/2010 20/07/2010 27/07/2010 03/08/2010 Fuels – additional market data 10/08/2010 17/08/2010 24/08/2010 31/08/2010 07/09/2010 14/09/2010 21/09/2010 28/09/2010 05/10/2010 12/10/201
Slide 25: Feeds – additional market data
Price per tonne $ 200 210 220 230 240 250 260 270 280 290 300 310 320 330 340 350 360 370 380 390 400 01/06/2010 15/06/2010 29/06/2010 13/07/2010 27/07/2010 10/08/2010 24/08/2010 07/09/2010 21/09/2010 05/10/2010 19/10/2010 02/11/2010 16/11/2010 May 2011 30/11/2010 Feeds – additional market data 14/1