Fevara Plc · LSE:FVA
Fevara — Carr's Milling Industries — FY2012 Earnings Presentation
24 slides from Fevara's earnings presentation, Nov 12, 2012
Slide 1: Building on our success
Building on our success Preliminary results presentation November 12th 2012
Slide 2: Results Overview
Results Overview ● Revenue increased 8.2% to £404.1m (2011: £373.3.5m) ● Pre-tax profit increased 30.5% to £13.1m (2011: £10.0m) ● EBITDA increased 19.6% to £18.4m (2011: £15.4m) ● Adjusted EPS increased 14.8% to 101.5p (2011: 88.4p) ● Final DPS declared increased 11.5% to 14.5p (2011: 13.0p) ● £2.6
Slide 3: Trading Overview
Trading Overview Agriculture ● Broadly favourable environment but input prices volatile ● Feed block sales up 24%, particularly strong in USA, with stable margins ● Compound feed sales volume down and margins squeezed ● Retail and machinery sales up 13% and 23% ● Fuel volumes maintained, despite mil
Slide 4: Animal Feed, Retail & Farm Machinery, Fuel
• Animal Feed • Retail & Farm Machinery • Fuel
Slide 5: Animal Feed
Animal Feed Feed block sales and market share up in both the UK and overseas Low moisture feed block ● Strong recovery in demand in US – sales up 40% ● UK sales volumes maintained despite mild winter ● Strong demand continues for Crystalyx in Europe and New Zealand ● Plan to build a plant in New Zea
Slide 6: Animal Feed
Animal Feed ● Compound feed market down ● Milk price uncertainty (although outlook improving) ● High raw materials prices resulting in lower margins ● AminoMax plant (50%JV) in Watertown fully operational April after early engineering issues resolved
Slide 7: Retail & Farm Machinery
Retail & Farm Machinery ● Retail products achieved 13% sales growth reflecting extended product range sold through enlarged retail network ● Safe at Work (acquired April 2011) integrated and product range extended to branch network ● Strong performance from machinery and workshops with product range
Slide 8: Fuel
Fuel ● Carrs Billington Fuels operate from 8 depots ● Cross selling benefits with agricultural products ● Maintained volumes despite milder winter - Increased market share ● Contributions from Hexham (opened August 2011) and Cockermouth (opened February 2012) ● Slightly lower margins reflecting oil
Slide 9: Food
Food ) Carr's Milling Industries PLC www.carrs-milling.com | Tel: +44 (0) 1228 554600 | Fax: +44 (0) 1228 554601
Slide 10: Food
Food ● Long-term flour industry capacity issues continue ●Sales down 3% with profit down 67% ●Volatile wheat price 9% ●Flour volumes down 1% 10% 15% ●Wheat handling facility at Kirkcaldy port exceeded expectations 15% 58% 66% ●Continue to expand speciality flours 12% ●Decision to invest £17m in repl
Slide 11: Strategic Reason for Investment
Strategic Reason for Investment ● Existing mill is close to end of natural life ● Port project makes Kirkcaldy a good location for wheat sourcing ● Port mills benefit from poor UK harvest (2012/13 mills will import 2.4m tonnes) ● CFM has strong customer base across Scotland and N England ● Food safe
Slide 12: UK Flour Market
UK Flour Market UK Flour Market Total Market Total Sales Free Free % Share ‘000 TPA Market Market % Share ‘000 TPA Rank Hovis 24 1000 13 400 Whitworths 20 830 28 830 ADM 16 650 22 650 Allied Mills 9 378 2.5 76 Heygates 6 250 5 150 Carrs 5 215 7 215 Other 20 830 22 650 Carr’s has approximately 70% of
Slide 13: Benefits
Benefits Operational Efficiencies ●Labour ●Energy ●Repairs costs Raw Material Cost Savings ●Extraction ●Gristing Others ●Flexibility in milling programme ●Port access ●Flour quality Step change in profitability on completion of mill
Slide 14: Engineering: UK and Wälischmiller
Carr's Milling Industries PLC www.carrs-milling.com | Tel: +44 (0) 1228 554600 | Fax +44 (0) 1228 554601
Slide 15: Engineering UK
UK ● 18% revenue growth reflects steady demand, mainly from nuclear industry ● Bendalls completed major vessel for Bechtel in USA and Evaporator D project at Sellafield ● Commenced work on £4m project for pressure vessels for Hyundai in South Korea for BP floating production storage and offloading p
Slide 16: Wälischmiller
WÄLISCHMILLER ● Completed de-commissioning contracts in Russia, France, Korea, Japan and China with 111% revenue growth ● Successful completion of Telbot for inspecting gas tanks for Shell in Norway ● High activity in 2012 led to increase in engineering personnel ● Developing robot for Fukushima, Ja
Slide 17: Segmental Analysis
Segmental Analysis Segmental Analysis 2012 2011 Revenue PBT Revenue PBT £m £m £m £m Agriculture 293.8 8.1 272.7 6.4 Food 80.5 0.4 82.6 1.3 Engineering 29.7 4.7 18.0 1.7 Other - (1.0) - (0.5) 404.0 12.2 373.3 8.9 Retirement Benefit (0.5) (0.7) Associate & JVs (post tax) 1.4 1.8 13.1 10.0 EPS (p) – ba
Slide 18: Balance Sheet
Balance Sheet Balance Sheet 2012 2011 £m £m Non-current assets 54.7 47.2 Current assets (excluding cash) 86.7 79.8 Cash 23.3 33.3 Total assets 164.7 160.3 Loans and borrowings (25.8) (28.7) Trade & other payables (60.3) (57.0) Tax & deferred tax (5.3) (5.7) Retirement benefit obligation (5.4) (6.0)
Slide 19: Cash Flow
Cash Flow Cash Flow Statement Year to Year to 1 September 2012 3 September 2011 £m £m Profit before tax 13.1 10.0 Share of profit from associate and JV’s (1.4) (1.8) Depreciation and amortisation 4.7 4.5 Non-cash adjustments 0.3 1.2 Pension contributions (3.8) (4.8) Working capital (2.0) 4.0 Tax pai
Slide 20: Banking & Net Debt
Banking & Net Debt Banking & Net Debt Expiry Facility 2012 £m £m Working capital facilities (UK) 12 month rolling (29.0) (11.6) Working capital facilities (US) 12 month rolling (0.6) (0.4) Working capital facilities (Eu) 12 month rolling (1.6) - Term loan November 2014 (7.5) (4.8) Revolving credit f
Slide 21: Underlying PBT 2012
Underlying PBT 2012 Underlying PBT - 2012 Agriculture Food Engineering Associate Other Total JVs £m £m £m £m £m £m Reported PBT 8.1 0.4 4.7 1.4 (1.5) 13.1 Financial derivative - - - - 0.2 0.2 Bad debt - 0.3 - - - 0.3 Profit on disposal - - - - (0.3) (0.3) of property and investment Underlying 8.1 0.
Slide 22: Platform for 2013 Performance
Platform for 2013 Performance Platform for 2013 performance Agriculture Food Engineering Associate Other Total JVs £m £m £m £m £m £m Underlying 8.1 0.7 4.7 1.4 (1.6) 13.3 PBT – 2012 Acquisitions 0.2 - 0.1 - - 0.3 JVs – USA - - - 0.4 - 0.4 Incremental 0.1 - - - - 0.1 Interest - (0.3) (0.1) - - (0.4)
Slide 23: Trading & Growth Prospects
Trading & Growth Prospects Agriculture ● Focus on feed blocks/supplements ● Product developments/new markets ● Strength of retail/fuel network in its market underpins growth Food ● Benefit from port locations ● Poor harvest presents opportunities ● Develop sales of retail products ● Kirkcaldy mill e
Slide 24: Building on our success
Building on our success Profitable growth November 12th 2012
Carr's Milling Industries — FY2012 Earnings Presentation on 6ix