M.p. Evans Group Plc · LSE:MPE
M.p. Evans — Shareholder Meeting (June 2021)
8 slides from M.p. Evans's shareholder meeting presentation, Jun 10, 2021
Slide 1: 2021 Annual General Meeting
A PRODUCER OF SUSTAINABLE INDONESIAN PALM OIL 2021 ANNUAL GENERAL MEETING Thursday 10 June 2021
Slide 2: Strong crop growth from young plantings
STRONG CROP GROWTH FROM YOUNG PLANTINGS … • Operations remain unaffected by Covid-19 • Group ffb 9% up on 2019; scheme smallholders up 12%; independent smallholders up 74% • Total crop for processing up 21% to 1.2 million tonnes • Crop growth particularly pronounced in Bumi Mas and Musi Rawas • Musi
Slide 3: Profit sharply higher as revenue and margin increased
… PROFIT SHARPLY HIGHER AS REVENUE AND MARGIN INCREASED … Revenue Operating profit Operating cash generated +46% +94% +19% Revenue up 46% to Increase in operating profit Cash generated by US$174.5 million to US$31.3 million operating activities before (2019 US$119.3 million) s (2019 US$16.1 million)
Slide 4: ... and milling capacity increases
… AND MILLING CAPACITY INCREASES s 4
Slide 5: Milling means margin
MILLING MEANS MARGIN • Margin gain from milling own crop vs sale to outside mill: ▫ Direct mill cost US$12/t ffb vs US$23/t ffb ▫ No automatic ‘grading’ deduction from tonnage delivered ▫ Oil extraction 24.5% vs maximum 22.0% ▫ Sustainability premiums • Margin gain from using spare capacity to mill
Slide 6: Growth in crop and mill capacity
GROWTH IN CROP AND MILL CAPACITY … Crop processed and mill capacity 2010-2025 • Crop grew 17% pa in decade to 2020 (‘000 tonnes) • Expect further 6% pa growth to 2027 • Current crop peak at 1.4m tonnes in 2027, continuing to produce at this level for another decade • Rising capacity can mill Group,
Slide 7: Has brought M.P. Evans to an inflection point
… HAS BROUGHT M.P. EVANS TO AN INFLECTION POINT Illustrative EPS (p) Key assumptions Higher volumes and more 1.0m 1.2m 1.6m own mills producing rising 600 (US$) Crop (t) Crop (t) Crop (t) 3 MILL GATE PRICE1 81 p margin + 400 (US$) Sharply falling capital COST PER TONNE PALM2 expenditure after 2022 +
Slide 8: 2021 Annual General Meeting
A PRODUCER OF SUSTAINABLE INDONESIAN PALM OIL 2021 ANNUAL GENERAL MEETING Thursday 10 June 2021