Slide 1: Camellia
CAMELLIA MAY 2020 1
Slide 2: A Global Group with a Focus on Agriculture
A GLOBAL GROUP WITH A FOCUS ON OPERATING AGRICULTURE ACROSS 11 LARGEST COUNTRIES PRODUCER OF AVOCADOS IN KENYA LARGEST PRIVATE PRODUCER OF TEA GLOBALLY WITH 59 TEA FACTORIES ACROSS 4 COUNTRIES 78,000 EMPLOYEES LARGEST PRODUCER WORLDWIDE OF MACADAMIA IN MALAWI 2
Slide 3: Overview
OVERVIEW ▪ Diversified international group ▪ Focus on perennial crop production ▪ World’s largest private producer of tea ▪ Long-term strategy of crop and origin diversification ▪ Enduring ESG commitment operationally ▪ Strong balance sheet with substantial net cash resources Karimpore, Duncan Broth
Slide 4: 2019 Strategic Highlights
2019 STRATEGIC HIGHLIGHTS ▪ Substantial investment in crop diversification in recent years mitigated weakness in global tea prices ▪ Completion of acquisitions in India enhanced Assam offering ▪ Acquisition of land in South Africa and trials of blueberries and avocados in Kenya provides long-term gr
Slide 5: 2019 Financial Highlights
2019 FINANCIAL HIGHLIGHTS ▪ Revenue from continuing operations was £291.5m (2018: £309.8m) ▪ Underlying profit before tax for the year was £16.1m (2018: £38.1m) ▪ Significant net provision releases and one-off items contributed £6.2m of profit (2018: £14.4m gain) ▪ Strong net cash balance at £82.5m
Slide 6: Operational Divisional Summary
OPERATIONAL DIVISIONAL SUMMARY AGRICULTURE FOOD SERVICE ENGINEERING SALES £239m SALES £30m SALES £22m 3% 28% No change TRADING TRADING Break Even PROFIT PROFIT 2018 £1m £25m £1m trading loss 51% 50% 6
Slide 7: Agriculture Division Tea
AGRICULTURE DIVISION TEA GOODRICKE GROUP ▪ Record tea volumes in 2019; EASTERN ▪ Impact of the two newly PRODUCE KENYA INDIA acquired estates ▪ Improved volumes from KENYA ▪ Tea production down 15%, driven our own estates by very dry start to the year ▪ Bought Leaf volumes were broadly ▪ Our average
Slide 8: Agriculture Division Macadamia
AGRICULTURE DIVISION MACADAMIA EASTERN PRODUCE MALAWI EASTERN PRODUCE SOUTH AFRICA SOUTH MALAWI ▪ ▪ Volumes up 6% on 2018 Using drone technology to AFRICA ▪ Volumes up 7% on 2018 support tree and soil health ▪ Acquisition of a 466Ha farm to be assessment and improvement developed into macadamia and
Slide 9: Agriculture Division Avocado & Blueberries
AGRICULTURE DIVISION AVOCADO & BLUEBERRIES KAKUZI – AVOCADO KAKUZI – BLUEBERRIES ▪ Production down 35% - an “off” ▪ Promising initial harvest in year September 2019 of 4 tons KENYA ▪ Very firm pricing, >150% up on 2018 KENYA ▪ If the first main crop, which is expected in autumn 2020 is successful th
Slide 10: Agriculture Division Speciality Crops
AGRICULTURE DIVISION SPECIALITY CROPS USA ▪ Citrus volumes up 77% on last year BRAZIL & KENYA but prices 40% lower due to market PISTACHIOS, over supply. ▪ Production of Eucalyptus in Brazil ALMONDS & ▪ 2019 was an off year for our pistachios so production was low FORESTRY doubled reflecting increas
Slide 11: Non-Agriculture Divisions
NON-AGRICULTURE DIVISIONS AJT ACS&T ▪ Sales up 15% as the strategy to ▪ Reduced profitability from lower increase utilisation and diversify revenue as production issues at its into other parts of the energy major customer saw storage sector continued to pay off volumes fall significantly over the FO
Slide 12: Covid-19 Impact
COVID-19 IMPACT* ▪ Tea – substantial impact on production in India. Expect to lose the majority of high margin first flush crop and significant proportion of second flush crop ▪ Other Agriculture – extent of impact on production, distribution, demand and market access remains unclear ▪ Engineering –
Slide 13: Dealing with Covid-19
DEALING WITH COVID - 19 ▪ Camellia people – welfare and safety a top priority ▪ Community action – Camellia manages over 100 hospitals and clinics in some of the world’s poorest countries. Where possible, these are now being used for the benefit of the whole community ▪ Focus on cash conservation by
Slide 14: Outlook
OUTLOOK ▪ The impact of Covid-19 on the Group remains unclear ▪ Key updates: ▪ Expect to lose first flush and large part of the second flush in India as a result of the lockdown ▪ Overall tea prices during Q1 poor, but some recent signs of increased demand and prices ▪ Dry weather in Malawi and Sout
Slide 15: The Future
THE FUTURE ▪ Successful focus on long term perennial crop production ▪ The world’s largest private producer of tea ▪ Investment in crop, product and origin diversification in Agriculture ▪ Capitalising on increasing demand from an urbanising, longer living, more health conscious population ▪ Endurin