M.p. Evans Group Plc · LSE:MPE
M.p. Evans — H1 2022 Earnings Presentation
16 slides from M.p. Evans's earnings presentation, Sep 12, 2022
Slide 1: 2022 Interim Results
LEBRATING CE 2022 Interim 150 years LC M P. Results E P . VA P NS GROU Record trading with continuing growth Monday 12th September 2022 A PRODUCER OF SUSTAINABLE INDONESIAN PALM OIL 1
Slide 2: Agenda
AGENDA • Who we are • Strategy • 2022 interim highlights • Palm-oil market • Sustainable palm oil • Group operations • 2022 interim results • Growth and yield prospects 2 2
Slide 3: Who We Are
WHO WE ARE UK AIM-listed A producer of More than 10,000 company with sustainable Group employees 150-year history Indonesian palm oil 52,800 hectares Over US$500 million RSPO member: of planted oil palm, invested in growth joined Roundtable of which 40,000 of Indonesian on Sustainable Palm Group and
Slide 4: Strategy Pillars
STRATEGY M.P. Evans is a responsible producer PILLARS of sustainable Indonesian palm oil, striving for excellence in all the Group’s operations, with a focus on continuing growth and offering an increasing yield. RESPONSIBILITY EXCELLENCE GROWTH YIELD • RSPO members • Investing for the long • Increa
Slide 5: 2022 Interim Highlights
2022 INTERIM HIGHLIGHTS 4% MAINTAINED INCREASE PRODUCTION OF TOTAL CPO IN GROUP CROP 27% 74% 43% INCREASE INCREASE INCREASE 49% IN COST OF GROUP IN SUSTAINABILITY IN MILL-GATE CPO INCREASE PALM PRODUCT PREMIA PRICE IN OPERATING PROFIT 65% 25% NET CASH INCREASE INCREASE SURPLUS 2022 NET CASH US$13.5M
Slide 6: Palm-Oil Market
PALM-OIL • Sharp increase in vegetable oil prices after outbreak of war in Ukraine • Group still achieved US$1,035 per tonne average at mill-gate, up 43% MARKET • Average Rotterdam price US$1,622 per • Reduction in market prices after export tonne in first half 2022, up 45% ban lifted due to excess
Slide 7: Sustainable Palm Oil
RESPONSIBILITY SUSTAINABLE PALM OIL • Palm oil, when produced sustainably, provides a high-yield and low-cost supply of vegetable oil to a growing global market • All Group areas are developed and run based on sustainability principles including no 1-0027-06-100-00 deforestation, no burning • The Gr
Slide 8: School facilities case study
RESPONSIBILITY RESPONSIBILITY School facilities case study • The Group is committed to responsible estate development • This includes providing a full range of facilities for workers and their families, particularly on the Group’s more remote estates • At the Group’s East Kalimantan estates, the Gro
Slide 9: Crop development
EXCELLENCE EXCELLENCE Crop development CROP DEVELOPMENT 800,000 700,000 600,000 500,000 TONNES 400,000 300,000 200,000 100,000 0 Own crops Scheme-smallholder crops Independent crops Total crop processed purchased H1 2022 H1 2021 9
Slide 10: Increasing milling capacity
GROWTH GROWTH Increasing milling capacity • CPO production in first half 160,800 tonnes CROP AND MILLING CAPACITY (Tonnes millions) (H1 2021 – 161,400 tonnes) 2.0 • Production cost lowest when milling own crop in Group mills. 1.8 • Production cost from own crop US$425 per 1.6 tonne; total production
Slide 11: Continuing investment
GROWTH GROWTH Continuing investment • Planting continuing at Musi Rawas – expect total planted area at least 10,000ha • Mill six at Musi Rawas prioritised in 2022 • Continued investment in Group’s estates – infrastructure and other facilities • Anticipate reducing capex on existing estates from 2023
Slide 12: 2022 Interim Results: A record H1 trading result
YIELD 2022 INTERIM RESULTS A record H1 trading result REVENUE GROSS PROFIT EARNINGS PER SHARE UP 33% US$64.8 MILLION UP 65% • Revenue up to • Gross profit up by 52% • EPS increased to 63.3p US$170.3 million (H1 2021 (H1 2021 – 38.3p) US$128.0 million) • Increase in cost per tonne to US$425 (2021 US$
Slide 13: Cash generation and balance sheet strength
BALANCE SHEET 2022 INTERIM RESULTS Cash generation and balance sheet strength OPERATING CASH MORE NET DEBT BECOMES NET CONTINUING STRENGTH IN THAN DOUBLED CASH DURING THE PERIOD GROUP BALANCE SHEET • Operating cash before • US$14.6 million repayment • Net assets increased to interest and tax of Grou
Slide 14: Returns for Investors
RETURNS RETURNS FOR • Unbroken (30 year+) track record of increasing normal dividends for INVESTORS shareholders • Increasing yields and milling capacity form basis for continuing strong cash flows • Interim dividend for 2022 up by 25% to 12.5p per share Normal dividends - pence per share 35 30 25 2
Slide 15: Summary
SUMMARY The Group delivered a record trading profit in H1 2022, and continues to deploy its strategy. STRATEGY PILLARS DELIVERING IN OPERATIONS OUTSTANDING RESULTS EXCITING PROSPECTS • Responsibility • Growing crop • Revenue up 33% • Future increases in crop, • Excellence • Increasing milling • Gros
Slide 16: 2022 Interim Results
2022 Interim Results Record trading with continuing growth Monday 12th September 2022 A PRODUCER OF SUSTAINABLE INDONESIAN PALM OIL