Slide 1: Resilience and growth
Resilience and growth NWF Group plc Final results to 31 May 2020
Slide 2: Leadership team
Group overview NWF Group plc 2 Leadership team Final results to May 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 acq
Slide 3: Key highlights
Group overview NWF Group plc 3 Key highlights Final results to May 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 Del
Slide 4: Results summary
Group overview NWF Group plc 4 Results summary Final results to May 2020 Strong results ahead of expectations Revenue Headline operating profit* Headline profit before tax* £687.5m £14.3m £13.2m +2.4% +40.2% +36.1% 20 £687.5m 20 £14.3m 20 £13.2m 19 £671.3m 19 £10.2m 19 £9.7m Headline earnings per sh
Slide 5: Covid-19 response and impact
Group overview NWF Group plc Final results to May 2020 5 Covid-19 response and impact NWF operations maintained throughout the period with good service provided • All NWF employees classified as key workers, feeding and fuelling the country • Operations moved to social distancing and new safe method
Slide 6: Fuels: Outstanding performance and development
Fuels NWF Group plc 6 Operating highlights Final results to May 2020 Outstanding performance and development • Trading ahead of expectations prior to lockdown Oil Prices - Brent crude $ per barrel Oil Market Journal 75.0 • Increased gas oil share of commercial business. Increased heating oil sales 7
Slide 7: Food: Solid performance and a significant investment
Food NWF Group plc 7 Operating highlights Final results to May 2020 Solid performance and a significant investment • Underlying business ahead of prior year • Managed increase in demand from Brexit events and the unprecedented increase in supermarket demand from Covid-19 • Increased activity levels
Slide 8: Feeds: Market share gains and Academy launched
Feeds NWF Group plc 8 Operating highlights Final results to May 2020 Market share gains and Academy launched • Market share gains across the UK: • Increased volumes direct to farm • Increased volumes to feed merchants • Increased volumes to other compounders • Investment in NWF Academy training futu
Slide 9: Financial highlights
Financial highlights
Slide 10: Financial review: Income statement summary
Group overview NWF Group plc 10 Financial review Final results to May 2020 Income statement summary May 2020 May 2019 £m £m • Revenue increased by £16.2 million (2.4%): Revenue • £57 million from acquisitions Fuels 470.2 443.0 • £4 million from higher activity levels Food 48.3 47.9 • £45 million red
Slide 11: Financial review: Income statement summary
Group overview NWF Group plc 11 Financial review Final results to May 2020 Income statement summary May 2020 May 2019 £m £m Operating profit 13.5 9.6 • Headline PBT of £13.2 million • Bank interest increased by £0.2 million as a result of acquisitions Finance costs (1.5) (0.9) • IFRS 16 interest cos
Slide 12: Financial review: Balance sheet summary
Group overview NWF Group plc 12 Financial review Final results to May 2020 Balance sheet summary May 2020 May 2019 £m £m Fixed assets (inc right of use assets) 107.2 70.2 • Fixed assets increased due to acquisitions and recognition of rights of use assets Net working capital 4.9 6.3 • Lower net work
Slide 13: Financial review: Pension summary
Group overview NWF Group plc 13 Financial review Final results to May 2020 Pension summary May 2020 May 2019 £m £m Assets 40.1 38.0 Liabilities (61.1) (55.3) Deficit (21.0) (17.3) Related deferred tax asset 4.0 2.9 Net pension liability (17.0) (14.4) Discount rate 1.65% 2.50% Inflation rate (RPI) 2.
Slide 14: Financial review: Cash flow summary
Group overview NWF Group plc 14 Financial review Final results to May 2020 Cash flow summary May 2020 May 2019 £m £m Operating profit 13.5 9.6 • Headline EBITDA* of £18.7 million (2019: £14.3 million) • Working capital movement as a result of lower oil and Depreciation and amortisation 10.5 4.7 comm
Slide 15: Financial review: Net debt summary
Group overview NWF Group plc 15 Financial review Final results to May 2020 Net debt summary • Facilities of £65 million with NatWest Group until October 2023 • Net debt of £12.3 million at May 2020 with substantial facility and covenant headroom Facility Drawn £m £m Facility Invoice discounting 50.0
Slide 16: A clear development strategy
Group overview NWF Group plc 16 Development strategy Final results to May 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 market •
Slide 17: UK Fuel market
Fuels NWF Group plc 17 Development strategy Final results to May 2020 UK Fuel market • Fragmented market for oil distribution: • Top 10 players only 25%, over 150 small players • NWF No. 3 with 2% market share (doubled in last 10 years) • 35 billion at 0.5ppl net profit suggests £175 million EBIT pe
Slide 18: Acquisition activity
Fuels NWF Group plc 18 Development strategy Final results to May 2020 Acquisition activity • Last twelve month’s activity: • Acquired three businesses across the UK • Over 120 million litres (20%) of business added • £9.1 million consideration paid • Clear post-acquisition integration plan • Retaine
Slide 19: Acquisition process
Fuels NWF Group plc 19 Development strategy Final results to May 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 • In
Slide 20: The NWF proposition
Group overview NWF Group plc 20 Summary and outlook Final results to May 2020 The NWF proposition Strong management Growth opportunities Asset Focus on return on Good cash generation Growing team backing capital dividend Consolidate and optimise £9.6 million of cash Solid track record with ambition
Slide 21: Strong platform for further growth
Group overview NWF Group plc 21 Summary and outlook Final results to May 2020 Strong platform for further growth Very strong result in 2020 – outperforming expectations • Delivering strategy: • Three Fuels acquisitions • New 35,000 pallet space Food warehouse backed by customer contracts • Launched
Slide 22: Additional information
Group overview NWF Group plc 22 Appendix Final results to May 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 record
Slide 23: Analyst coverage and consensus forecasts
Group overview NWF Group plc 23 Analyst coverage and consensus forecasts Final results to May 2020 Actual Consensus forecasts Analysts 2020 2020 2021 2022 Peel Hunt* Charles Hall Revenue £687.5m £691.3m £709.4m £671.0m Panmure Gordon Adrian Kearsey Headline operating profit £14.3m £12.1m £11.8m £12.
Slide 24: ESG framework: Delivering sustainable value
Group overview NWF Group plc 24 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 25: Fuels: Key figures
Fuels NWF Group plc 25 Business overview Final results to May 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 custo
Slide 26: Food: Key figures
Food NWF Group plc 26 Business overview Final results to May 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, Swi
Slide 27: Feeds: Key figures
Feeds NWF Group plc 27 Business overview Final results to May 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 Devon
Slide 28: Business locations
Group overview NWF Group plc 28 Business locations Final results to May 2020 Feeds Aspatria Longtown Wardle* Wixland Food Crewe Wardle* Fuels Ammanford Babbinswood Bangor Boston Burnley Burwell Droitwich Dyserth Fishers Pond Glastonbury Great Yarmouth Halifax Home Counties Kenilworth Kirkby Lonsdale
Slide 29: Organisation
Group overview NWF Group plc 29 Organisation Final results to May 2020 Non-Executive Directors Chief Executive Chair: Philip Acton Richard Whiting Yvonne Monaghan David Downie Richard Armitage Group Finance Company Director Secretary Chris Belsham Rob Andrew Fuels Food Feeds Richard Huxley Keith For
Slide 30: Track record
Group overview NWF Group plc 30 Track record Final results to May 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 Headlin
Slide 31: Divisional track record
Group overview NWF Group plc 31 Divisional track record Final results to May 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 2016 2
Slide 32: Fuels additional market data
Fuels NWF Group plc 32 Group overview Final results to May 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 01/06/2019 01/07/2019 01/08/2019 01/09/2019 01/10/2019 01/11/2019 01/1
Slide 33: Feeds additional market data
Price per tonne $ 03 Price per tonne £ /0 100 150 200 250 300 350 400 50 0 6/ 100 110 120 130 140 150 160 170 180 10 20 30 40 50 60 70 80 90 0 15 201 03/06/2019 /0 9 6/ 10/06/2019 27 201 /0 9 Feeds 17/06/2019 6/ 24/06/2019 09 201 /0 9 01/07/2019 7/ 21 201 08/07/2019 /0 9 Wheat Price LIFFE 7/ 15/07/2
Slide 34: S — a oO > S oo oS LL =
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