Nwf Group Plc · LSE:NWF
Nwf — H1 2021 Earnings Presentation
35 slides from Nwf's earnings presentation, Feb 2, 2021
Slide 1: Resilience and growth
Resilience and growth NWF Group plc Half Year Results to 30 November 2020
Slide 2: Leadership team
Group overview NWF Group plc 2 Leadership team Half Year Results to Nov 2020 Richard Whiting Chris Belsham Chief Executive Group Finance Director Key skills Key skills • Strategy and leadership • Finance • Sales and marketing • Mergers and acquisitions • Operations • Strategy • Finance • Mergers and
Slide 3: Key highlights
Group overview NWF Group plc 3 Key highlights Half Year Results to Nov 2020 NWF is a specialist distributor of fuel, food and feed across the UK. Summary Fuels Food Feeds • Strong track record of delivering increased shareholder returns Supplying fuel to commercial and The leading North West ambient
Slide 4: Results summary
Group overview NWF Group plc 4 Results summary Half Year Results to Nov 2020 Solid performance in line with expectations Revenue Headline operating profit* Headline profit before tax* £309.4m £3.0m £2.5m -11.3% -14.3% -16.7% 20 £309.4m 20 £3.0m 20 £2.5m 19 £348.9m 19 £3.5m 19 £3.0m Headline earnings
Slide 5: Impact of and response to Covid-19
Group overview NWF Group plc 5 Covid-19 Half Year Results to Nov 2020 Impact of and response to Covid-19 Actions Impact Financial Dividend strength • Progressive dividend policy • All NWF employees classified as • Increased demand from supermarkets and lower demand • £65m facility to Oct 2023 key wo
Slide 6: Fuels: Positive H1 trading
Fuels NWF Group plc 6 Operating highlights Half Year Results to Nov 2020 Positive H1 trading • Traded ahead of expectations; higher volumes, improved product mix and acquisitions • Increased gas oil share of commercial business. Offset lower demand for road diesel and heating oil. • No significant d
Slide 7: Food: Growth with volatile demand patterns
Food NWF Group plc 7 Operating highlights Half Year Results to Nov 2020 Growth with volatile demand patterns • Built up new Crewe 35,000 pallet space facility. Now fully utilised and performing as planned • 135,000 pallet space total capacity • Inefficiency from significant demand volatility with re
Slide 8: Feeds: Trading as planned
Feeds NWF Group plc 8 Operating highlights Half Year Results to Nov 2020 Trading as planned • Focus on nutritional advice with increased proportion of sales direct to farm • Less volume sold to other compounders • Managing dramatic increases in raw material commodity costs to unprecedented highs: ty
Slide 9: Impact and response to cyber incident
Group overview NWF Group plc 9 Cyber incident Half Year Results to Nov 2020 Impact and response to cyber incident Actions Immediate Financial Outcome impact impact • Cyber incident at end of Oct 2020: • All key systems and reporting short-term unauthorised access to • No interruption to production o
Slide 10: Financial highlights
Financial highlights
Slide 11: Financial review: Income statement summary
Group overview NWF Group plc 11 Financial review Half Year Results to Nov 2020 Income statement summary • H1 Revenue decreased by £39.5 million (-11.3%) : • £11.8 million increase from acquisitions • £47.3 million reduction from lower commodity prices • Headline operating profit of £3.0 million (Nov
Slide 12: Financial review: Balance sheet summary
Group overview NWF Group plc 12 Financial review Half Year Results to Nov 2020 Balance sheet summary Nov 2020 Nov 2019 May 2020 £m £m £m Fixed assets (inc right of use assets) 105.5 93.7 107.2 • Fixed assets decreased slightly since May-20 as depreciation offsets Capex • Higher net working capital r
Slide 13: Financial review: Pension summary
Group overview NWF Group plc 13 Financial review Half Year Results to Nov 2020 Pension summary Nov 2020 May 2020 £m £m Assets 43.3 40.1 Liabilities (62.0) (61.1) Deficit (18.7) (21.0) Related deferred tax asset 3.6 4.0 Net pension liability (15.1) (17.0) Discount rate 1.60% 1.65% Inflation rate (RPI
Slide 14: Financial review: Cash flow summary
Group overview NWF Group plc 14 Financial review Half Year Results to Nov 2020 Cash flow summary Nov 2020 Nov 2019 May 2020 £m £m £m Operating profit 2.7 3.1 13.5 • Headline EBITDA* of £5.4 million (Nov 19: £5.6 million) • Working capital movement since 1 June 20 as a result of Fuels acquisition, Fu
Slide 15: Financial review: Net debt summary
Group overview NWF Group plc 15 Financial review Half Year Results to Nov 2020 Net debt summary • Facilities of £65 million with NatWest Group until October 2023 • Net debt of £16.5 million at Nov 2020 with substantial facility and covenant headroom Facility Drawn £m £m Facility Invoice discounting
Slide 16: A clear development strategy
Group overview NWF Group plc 16 Development strategy Half Year Results to Nov 2020 A clear development strategy Summary Fuels Food Feeds • Diversified source of earnings • Consolidate a highly • Optimise the customer mix • Consolidate the UK ruminant feed • Cash generative businesses fragmented mark
Slide 17: UK Fuel market
Fuels NWF Group plc 17 Development strategy Half Year Results to Nov 2020 UK Fuel market • Fragmented market for oil distribution: • Top 10 players represent only 25%, over 150 small players • NWF No. 3 with 2% market share (doubled in last 10 years) • 35 billion litre market at 0.5ppl net profit su
Slide 18: Acquisition activity
Fuels NWF Group plc 18 Development strategy Half Year Results to Nov 2020 Acquisition activity Existing depot New depots in FY 2020 • Last two year’s activity: • Acquired five businesses across the UK • Over 150 million litres (28%) of business added • £14.4 million consideration paid • Clear post-a
Slide 19: Acquisition process
Fuels NWF Group plc 19 Development strategy Half Year Results to Nov 2020 Acquisition process • Targeting oil distribution businesses in the UK • Clear valuation and pricing strategy • Effective transaction process: • Established legal, environmental and financial due diligence process and advisors
Slide 20: ESG framework: Delivering sustainable value
Group overview NWF Group plc 20 ESG framework Final results to may 2020 Delivering sustainable value Our sustainability framework consists of four strategic objectives that reflect our values and are designed to ensure we take a proactive and responsible approach to the way we operate. Together, wit
Slide 21: The NWF proposition
Group overview NWF Group plc 21 Summary and outlook Half Year Results to Nov 2020 The NWF proposition Strong management Growth opportunities Asset Focus on return on Good cash generation Growing team backing capital dividend Consolidate and optimise Typically generate Solid track record with ambitio
Slide 22: Strong platform for further growth
Group overview NWF Group plc 22 Summary and outlook Half Year Results to Nov 2020 Strong platform for further growth Solid result in H1 2021 – delivering expectations • Demonstrating Resilience: • Covid-19, Brexit uncertainty, cyber incident • Strong balance sheet with long-term funding in place • F
Slide 23: Q&A
Group overview NWF Group plc Half Year Results to Nov 2020 23 Q&A
Slide 24: Additional information
Group overview NWF Group plc 24 Appendix Half Year Results to Nov 2020 Additional information • Analyst coverage and consensus forecasts • ESG framework – delivering sustainable value • Business overview • Locations • Organisation • Main site photo • Group financial performance • Divisional track re
Slide 25: Analyst coverage and consensus forecasts
Group overview NWF Group plc 25 Analyst coverage and consensus forecasts Half Year Results to Nov 2020 Analysts Peel Hunt* Charles Hall Panmure Gordon Adrian Kearsey Shore Capital Akhil Patel * Corporate broker The consensus is an arithmetic calculation of the forecasts made by contributing investme
Slide 26: Fuels: Key figures
Fuels NWF Group plc 26 Business overview Half Year Results to Nov 2020 Key figures NWF Fuels is a leading distributor of fuel oil and fuel cards delivering over 650 million litres across the UK to 116,000 customers. It is one of the largest authorised distributors of Texaco (Valero) and is a major c
Slide 27: Food: Key figures
Food NWF Group plc 27 Business overview Half Year Results to Nov 2020 Key figures Boughey Distribution is a leading consolidator of ambient grocery products to UK supermarkets with over 1 million ft2 of warehousing and significant distribution assets. It works with over 200 customers including Arla,
Slide 28: Feeds: Key figures
Feeds NWF Group plc 28 Business overview Half Year Results to Nov 2020 Key figures NWF Agriculture has grown to be a leading national supplier of ruminant animal feed to 4,750 customers in the UK, feeding one in six dairy cows in Britain. It operates from sites in Cumbria, Lancashire, Cheshire and D
Slide 29: Business locations
Group overview NWF Group plc 29 Business locations Half Year Results to Nov 2020 Existing depot New depots in FY Feeds 2020 Aspatria Longtown Wardle* Wixland Food Crewe Wardle* Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Droitwich Dyserth Fishers Pond Glastonbury Great Yarmouth Home Co
Slide 30: Organisation
Group overview NWF Group plc 30 Organisation Half Year Results to Nov 2020 Non-Executive Directors Chief Executive Chair: Philip Acton Richard Whiting David Downie Richard Armitage Group Finance Company Director Secretary Chris Belsham Rob Andrew Fuels Food Feeds Richard Huxley Keith Forster Andrew
Slide 31: Track record
Group overview NWF Group plc 31 Track record Half Year Results to Nov 2020 Revenue Headline PBT 800 14 13.2 671.3 687.5 700 611.0 12 555.8 10.2 9.7 600 537.7 10 492.3 465.9 8.1 8.3 8.5 500 7.7 8 £m £m 400 6 300 200 4 100 2 0 0 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 Hea
Slide 32: Divisional track record
Group overview NWF Group plc 32 Divisional track record Half Year Results to Nov 2020 Fuels Food 500 60 3 450 10 50 2.5 400 8 Operating profit £m Operating profit £m 350 40 2 Revenue £m 300 Revenue £m 6 250 30 1.5 200 4 20 1 150 100 2 10 0.5 50 0 0 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
Slide 33: Fuels additional market data
Group overview NWF Group plc 33 Group overview Half Year Results to Nov 2020 Fuels additional market data Oil Prices - Brent crude $ per barrel Oil Market Journal 75.0 70.0 65.0 60.0 55.0 50.0 45.0 40.0 $ 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 01/12/2019 01/01/2020 01/02/2020 01/03/2020 01/04/2020 01
Slide 34: Feeds additional market data
Price per tonne $ Price per tonne £ 01 /1 2 100.0 150.0 200.0 250.0 300.0 350.0 400.0 50.0 0.0 100.0 110.0 120.0 130.0 140.0 150.0 160.0 170.0 180.0 190.0 200.0 210.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 0.0 13 /201 01/12/2019 /1 9 2 08/12/2019 25 /201 /1 9 15/12/2019 2/ 06 201 22/12/2019 /0
Slide 35: S — a oO > S oo oS LL =
S — a oO > S oo oS LL = 2