Slide 1: The Feed, Food and Fuel Group - Preliminary Results
THE FEED, FOOD AND FUEL GROUP PRELIMINARY RESULTS FOR THE YEAR ENDED 31 MAY 2015
Slide 2: Key Highlights
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 1 KEY HIGHLIGHTS » Successful year for the Group delivering on stated strategic initiatives » Profit increase following a strong H2 Feeds recovery and good performances in Food and Fuels » Revenue decrease reflecting lower commodity pri
Slide 3: Results Summary
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 2 RESULTS SUMMARY Revenue Operating profit Headline profit before tax £492.3m - 8.4% £8.6m +1.2% £8.1m + 5.2% 2015 £492.3m 2015 £8.6m 2015 £8.1m 2014 £537.7m 2014 £8.5m 2014 £7.7m Headline earnings per share Net debt Dividend per share
Slide 4: Feeds: Strong Recovery in Second Half
OPERATIONAL HIGHLIGHTS NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 3 FEEDS STRONG RECOVERY IN SECOND HALF » Challenging market with falling milk prices » Falling commodity prices squeezed margins in 2014 » Volumes remained robust » Opened Dumfries feed operations in June 2014 » Implemented new
Slide 5: Food Delivering Efficiency
OPERATIONAL HIGHLIGHTS NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 4 FOOD DELIVERING EFFICIENCY » Tough market conditions continue » Improved efficiency in warehouses and fleet » Benefits from a single site operation » Signed long-term agreements with new and existing customers » Managed driver
Slide 6: Fuels Outperformance in a Falling Market
OPERATIONAL HIGHLIGHTS NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 5 FUELS OUTPERFORMANCE IN A FALLING MARKET » Increased sale of premium products » Oil prices fell 27% to $79 per barrel » Margins improved in a falling market » Mild winter conditions pre Christmas » New depot with 400,000 litre
Slide 7: Income Statement Summary
FINANCIAL REVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 6 INCOME STATEMENT SUMMARY May 2015 May 2014 £m £m Revenue » Revenue decreased by 8.4% reflecting lower oil Food 37.2 36.4 prices in Fuels and lower commodity prices in Feeds 144.9 160.7 Feeds Fuels 310.2 340.6 Total revenue 492.3 537
Slide 8: Balance Sheet Summary
FINANCIAL REVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 7 BALANCE SHEET SUMMARY May 2015 May 2014 £m £m » Fixed assets increased to £54.6 million, net investment of £4.6 million (depreciation and Fixed assets 54.6 54.0 amortisation £4.0 million) Net working capital 7.5 9.8 » Working capita
Slide 9: Cash Flow Summary
FINANCIAL REVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 8 CASH FLOW SUMMARY May 2015 May 2014 £m £m » EBITDA £13.1 million (2014: £12.2 million) Cashflows from operating activities Operating profit 9.1 8.5 » Further improvement in working capital by £2.4 Depreciation and amortisation 4.0 3
Slide 10: Net Debt Summary
FINANCIAL REVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 9 NET DEBT SUMMARY » Committed facilities of £65.0 million with RBS until October 2019 Movement in net debt 14.0 » Year End net debt £5.9 million, substantial 12.0 facility and covenant headroom 10.0 8.0 9.1 Facility Facility Drawn 6.
Slide 11: Group Solid Platform for Growth
DEVELOPMENT STRATEGY NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 10 GROUP SOLID PLATFORM FOR GROWTH » Focus on total shareholder return – progressive dividend policy » Solid cash generative business in large stable markets » Development focus on agriculture » Targeting additional products and s
Slide 12: Feeds Acquisition Opportunities
DEVELOPMENT STRATEGY NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 11 FEEDS ACQUISITION OPPORTUNITIES » Agriculture an attractive market for the Group GB Market 2011 2012 2013 2014 2015 » Population growth Milk (Litres) 11.4bn 11.5bn 11.0bn 11.6bn 12.2bn » Relationship with 4,300 farmers » Truste
Slide 13: Food Delivering Service & Efficiency
DEVELOPMENT STRATEGY NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 12 FOOD DELIVERING SERVICE & EFFICIENCY » Market for ambient groceries challenging but stable » Working under contracts with blue chip brands and retailers » Clear customer proposition » High service levels » Low cost and efficien
Slide 14: Fuels Adding Depots to a Successful Network
DEVELOPMENT STRATEGY NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 13 FUELS ADDING DEPOTS TO A SUCCESSFUL NETWORK » Third largest oil distributor in the UK » Low cost depot focused operating model » Network built by acquisition » Strong track record » Low ROS, high ROCE > 20% Development Strategy
Slide 15: NWF Investment Summary
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 14 NWF INVESTMENT SUMMARY Strong management team Growth opportuniQes Asset backing Focus on returns Good cash generaQon Growing dividend
Slide 16: Summary & Outlook
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 15 SUMMARY & OUTLOOK » Solid performance last year » Benefits of targeted initiatives in all three divisions » Development strategy delivering growth » Progressive dividend demonstrating confidence » Strategic focus on Agri development
Slide 17: Additional Information
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 16 ADDITIONAL INFORMATION » Business overview » Locations » Organisation » Main site photo » Five year financial performance » Ten year divisional track record » Additional market data
Slide 18: Business Overview: Feeds
BUSINESS OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 17 FEEDS Supply of feed to ruminants in the UK – principally dairy » National player – feeds one in six dairy cows in the UK, number two in the market » 567,000 tonnes per annum » Feed dairy, beef and sheep » Sell added value product
Slide 19: Business Overview: Food
BUSINESS OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 18 FOOD Consolidation of ambient grocery products to UK supermarkets » 100,000 pallet spaces » 800,000ft2 of warehousing in Wardle » Market leader in the North West » 455 people » 100 trucks, 233 trailers » 99.7% service level » 200
Slide 20: Business Overview: Fuels
BUSINESS OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 19 FUELS Supply of fuels and fuel cards to commercial, domestic and retail customers across the UK » Third largest oil distributor in the UK » 59,000 customers » 204 people » 17 depots across the UK » Supply 48 retail petrol stations
Slide 21: Locations
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 20 LOCATIONS Feeds Dumfries Wardle* Stone Wixland Food Wardle* Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Droitwich Dyserth Great Yarmouth Kenilworth Kingsbury Long Marston Mansfield NoZngham Southampton Stoke Wardle* Yate
Slide 22: Wardle Main Site
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 21 WARDLE MAIN SITE
Slide 23: Five Year Track Record
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 22 FIVE YEAR TRACK RECORD REVENUE HEADLINE PBT 600 9 8 500 7 400 6 £m 5 300 £m 4 200 3 2 100 1 0 0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 HEADLINE EPS DIVIDEND 6 14 12 5 10 4 8 p p3 6 2 4 1 2 0 0 2010 2011 2012 2013
Slide 24: Divisional Track Records
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 23 DIVISIONAL TRACK RECORDS FEEDS FOOD 180 50 3.5 4.0 160 45 3.0 3.5 40 140 3.0 35 2.5 120 Operating profit £m Operating profit £m Revenue £m Revenue £m 2.5 30 2.0 100 25 2.0 80 1.5 20 60 1.5 15 1.0 40 1.0 10 0.5 20 0.5 5 0 0.0 0 0.0 20
Slide 25: Organisation
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 24 ORGANISATION Chief Executive Non-Executive Directors Richard Whi;ng Mark Hudson (Chairman) Yvonne Monaghan Philip Acton Finance Director Company Secretary Brendon Banner Rob Andrew Food Feeds Fuels Keith Forster Andrew Downie Kevin K
Slide 26: Fuels Additional Market Data
GROUP OVERVIEW NWF GROUP plc PRELIMINARY RESULTS TO 31 MAY 2015 25 FUELS ADDITIONAL MARKET DATA Oil$Prices$*$Brent$crude$$/$barrel$ Oil"Market"Journal$ 140" 120" 100" 80" 60" 40" 20" 0" 02/01/14" 02/02/14" 02/03/14" 02/04/14" 02/05/14" 02/06/14" 02/07/14" 02/08/14" 02/09/14" 02/10/14" 02/11/14" 02/
Slide 27: Feeds Additional Market Info
Price&per&tonne& Price&per&tonne&£& 02 /0 0" 10" 20" 30" 40" 50" 60" 70" 80" 90" 100" 110" 120" 130" 140" 150" 160" 200# 250# 300# 350# 400# 450# 500# 550# 600# 6/ 16 201 /0 4 02/06/2014" 6/ # 30 201 /0 4 14/06/2014" 6/ # 14 201 /0 4 26/06/2014" 7/ # 28 201 /0 4 08/07/2014" 7/ # 11 201 20/07/2014"