Camellia Plc · LSE:CAM

Camellia — FY2018 Earnings Presentation

14 slides from Camellia's earnings presentation, May 2019

  1. Slide 1: 2018 was a very good year for the Group

    CAMELLIA “2018 was a very good year for the Group. We made significant financial and strategic progress” MAY 2019 1

  2. Slide 2: A Global Group with a Focus on Agriculture

    A GLOBAL GROUP WITH A FOCUS ON OPERATING AGRICULTURE LARGEST ACROSS 11 PRODUCER OF COUNTRIES AVOCADOS IN KENYA LARGEST PRIVATE PRODUCER OF TEA GLOBALLY WITH 59 TEA FACTORIES ACROSS 4 COUNTRIES LARGEST PRODUCER 78,000 EMPLOYEES OF MACADAMIA IN WORLDWIDE MALAWI 2

  3. Slide 3: Portfolio Transformation 2015-2018

    PORTFOLIO TRANSFORMATION 2015-2018 2015 2018 AGRICULTURE FOOD SERVICE AGRICULTURE FOOD SERVICE Sales £187m Sales £32m Trading profit £32m Trading profit £1m Sales £245m Sales £42m Trading profit £37m Trading profit £2m ENGINEERING BANKING & FINANCIAL SERVICES Sales £26m Trading loss £6m Sales £13m E

  4. Slide 4: Overview

    OVERVIEW ▪ Diversified international group ▪ Focus on long term perennial crop production ▪ Additional activities in engineering, food service and investments ▪ World’s largest private producer of tea ▪ Strong ESG commitment operationally and through majority shareholder (Camellia Foundation) ▪ Subs

  5. Slide 5: 2018 Strategic Highlights

    2018 STRATEGIC HIGHLIGHTS ▪ A year of significant progress ▪ First investment in Tanzania for avocado & macadamia development ▪ Commenced blueberry and avocado trials in Kenya ▪ Business portfolio realignment largely complete ▪ Continuing commitment to ESG principles Mount Mulanje, Eastern Produce M

  6. Slide 6: 2018 Financial Highlights

    2018 FINANCIAL HIGHLIGHTS ▪ Sales from continuing operations £310m (2017: £298m) ▪ Results benefited from two significant provision releases totalling £14m ▪ Underlying profit before tax from continuing operations up 38% to £38m (2017: £28m) ▪ Net cash of £106m (2017: £102m) (after loans) ▪ Equity a

  7. Slide 7: Operational Divisional Summary

    OPERATIONAL DIVISIONAL SUMMARY AGRICULTURE FOOD SERVICE ENGINEERING SALES SALES £42m SALES £22m £245m 10%  8%  3%  TRADING TRADING TRADING PROFIT PROFIT LOSS £37m £2m £1m 3%  11%  77%  7

  8. Slide 8: Agriculture Division: Tea

    AGRICULTURE DIVISION TEA GOODRICKE GROUP KAKUZI & EASTERN PRODUCE KENYA ▪ Record volumes of tea INDIA ▪ Labour costs increases outweighed 7% increase in KENYA ▪ Volumes up by 10% reflecting benign weather conditions average prices ▪ Average selling prices down by ▪ Consolidation of Tea City 6% refle

  9. Slide 9: Agriculture Division: Macadamia

    AGRICULTURE DIVISION MACADAMIA EASTERN PRODUCE MALAWI EASTERN PRODUCE SOUTH MALAWI ▪ 2018 volumes of 472 tonnes, up 43% on 2017 AFRICA SOUTH AFRICA ▪ 2018 volumes of 429 tonnes, ▪ Immature hectares of 212 Ha up 57% on 2017 (14% as % of total) ▪ Immature hectares of 301 Ha (26% as % of total) PRICING

  10. Slide 10: Agriculture Division: Avocado & Blueberries

    AGRICULTURE DIVISION AVOCADO & BLUEBERRIES KAKUZI ▪ Own estate volumes up by 51% to 11m kgs as a result of good weather and maturing orchards KAKUZI ▪ Started a 10 Ha trial of KENYA ▪ Average Hass estate prices down by 40% compared to KENYA blueberries 2017 due to volumes from Peru ▪ If successful t

  11. Slide 11: Agriculture Division: Speciality Crops

    AGRICULTURE DIVISION SPECIALITY CROPS USA ▪ Volumes of Murcotts were PISTACHIOS, down on exceptional 2017 levels in part offset by a strong KENYA & BRAZIL ALMONDS & Navel orange crop FORESTRY ▪ Production reduced by 49%, ▪ ‘On year’ for pistachios. Prices reflecting muted demand and CITRUS and volum

  12. Slide 12: Non-Agriculture Divisions

    NON-AGRICULTURE DIVISIONS ACS&T AJT ▪ Cold stores were operating at near ▪ Sales up by 82% to £13.3m. capacity ▪ Acquired Black Gold Oil Tools ▪ Additional transport contracts AMFIN AND ATFIN resulted in increased sales, 7% over ▪ Amfin had increased sales but at 2017 reduced margin JING TEA ENGINEE

  13. Slide 13: The Future

    THE FUTURE ▪ Focus on achieving efficiencies and improving our existing operations ▪ Emphasis on crop, product and origin diversification in Agriculture ▪ If appropriate, consider investment opportunities in value addition Agriculture and/or primary production ▪ Selective investments elsewhere in th

  14. Slide 14: Summary

    SUMMARY ▪ Significant strategic and financial progress in 2018 ▪ Successful focus on long term perennial crop production ▪ The world’s largest private producer of tea ▪ Capitalising on increasing demand from an urbanising, longer living, more health conscious population ▪ Business portfolio realignm

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