Slide 1: NWF Group plc Interim results to 30 November 2011
NWF Group plc Interim results to 30 November 2011
Slide 2: Results summary
Results summary > Performance in line with expectations, despite difficult market conditions in first half > Delivering strategic development with the Swan Petroleum acquisition > Record result in Food division > Revenue growth and acquisitions have increased debt at end H1 > New competitive £55 mil
Slide 3: Operational highlights - Feeds
Operational highlights - Feeds Wheat Price LIFFE Nov 2011 > Revenue growth from eleven price rises in 2010/11 220 210 200 > Feed market down in H1: good grazing and high feed prices 190 180 170 > Increases competition 160 Price per t onne £ 150 > Commodities prices experiencing volatility 140 130 12
Slide 4: Operational highlights - Food
Operational highlights - Food > Record result > Volatility in demand as supermarkets continued promotional activity to combat cost inflation, total outloads down 13%, service level 99.6% > Overflow storage utilised to manage customers’ stock requirements > Improvement plan delivering > Improved back
Slide 5: Operational highlights – Fuel
Operational highlights – Fuel > Warmest October / November on record significantly impacted financial performance > Like for like total volumes down 5%, heating oil down 8% > Evesons acquisition fully integrated and performing to plan > Acquired and integrating Swan Petroleum > 42 million litres > 3
Slide 6: Financial review – income statement summary
Financial review – income statement summary Nov 2011 Nov 2010 Growth May 2011 £m £m % £m Revenue Food 22.9 22.3 2.7% 44.2 Feeds 60.1 48.5 23.9% 112.6 Fuels 180.7 132.6 36.3% 307.0 Total revenue 263.7 203.4 29.6% 463.8 Operating profit Food 1.8 1.0 80.0% 2.0 Feeds 0.6 1.5 -60.0% 4.0 Fuels 0.0 0.7 -10
Slide 7: Financial review – balance sheet summary
Financial review – balance sheet summary Nov 2011 Nov 2010 May 2011 £m £m £m Fixed assets (including intangibles) 51.6 42.6 46.9 Net Working Capital 20.4 13.7 8.5 Assets Employed 72.0 56.3 55.4 Pension deficit (15.1) (12.5) (11.3) Tax provisions (2.0) (2.9) (3.8) Net Debt (29.3) (17.1) (11.3) Net As
Slide 8: Financial review – net debt summary
Financial review – net debt summary Debt Summary Movement in net debt Movement in net debt > Committed facilities of £55.0m with RBS until Oct 30.0 2015. In addition £7m of HP finance is available 6.1 Facility Facility Drawn Invoice discounting £44.0m £28.2m 20.0 5.7 £m Revolving Credit Facility £10
Slide 9: Financial review – cash flow summary
Financial review – cash flow summary Nov 2011 Nov 2010 £m £m Cashflows from operating activities Operating profit 2.4 3.2 Depreciation and amortisation 1.9 1.7 Working capital movements (12.3) (2.3) Other (0.7) (0.1) Operating cash flow (8.7) 2.5 Interest paid (0.5) (0.7) Tax paid (1.5) (1.4) Net ca
Slide 10: Development outlook: Resilience of NWF – strong platform for development
Development outlook: Resilience of NWF – strong platform for development > Strong operational performance through the recession and global financial crisis. > Group profitable, managed debt levels > Substantial asset base > Feeds supplies over 4,000 farmers; consumer demand for milk and dairy produc
Slide 11: Development outlook – Feeds
Development outlook – Feeds Customer locations 2011 > Agriculture markets remain attractive with increasing populations and food security > NWF now No. 2 ruminant feed producer in the UK > Strong national sales team, advising over 4,000 farmers > Track record of winning new business, dairy specialis
Slide 12: Development outlook – Food
Development outlook – Food > Robust demand for ambient groceries > Boughey has a leading position in North West > Continue to improve business performance > Optimise customer base > Fully utilise own fleet partnering sub contractors > Increase backload / haulage work > Excellent service for FMCG foo
Slide 13: Fuels – Development through bolt on acquisitions – Swan Petroleum
Fuels – Development through bolt on acquisitions – Swan Petroleum Swan NWF Fuels Petroleum Depots 3 13 Fleet 14 55 People 27 147 Volume (litres m) 42 350 Petrol 1% 9% Diesel 26% 52% Gas Oil 38% 20% Heating Oil 35% 19% > Swan Petroleum increases volumes by 10% Operating profit (pre acquisition) £0.2m
Slide 14: Results summary & outlook
Results summary & outlook > Solid start to the year in difficult market conditions > Performance in line with expectations > Strong performance in Food offset impact of warm weather on Fuels > Dividend maintained > Long term funding in place > Completed and integrating second significant Fuel acquis
Slide 15: Additional information on NWF Group plc
Additional information on NWF Group plc > Business backgrounds > Locations > Organisation > Main site photo > Five year financial performance > Ten year divisional track record > Additional market data NWF NWFGroup Groupplc plcInterim resultsresults Preliminary 30 November 2011 31 May 2011 15
Slide 16: Business background – Feeds
Business background – Feeds Feeds Supply of feed to ruminants in the UK – principally dairy Our business > National player – feed one in seven dairy cows in the UK, number two in the market > 462,000 tonnes produced in 2010/11 > Feed dairy, beef and sheep > Sell added value products including minera
Slide 17: Business background – Food
Business background – Food Food Consolidation of ambient grocery products to UK supermarkets Our business > 115,000 pallet spaces > 900,000ft2 of warehousing in Wardle and Deeside (North West) > Market leader in the North West > 588 people > 120 trucks, 275 trailers > 99.6% service level > 200 custo
Slide 18: Business background – Fuels
Business background – Fuels Fuels Supply of fuels and fuel cards to commercial, domestic and retail customers across the UK Our business > Third largest distributor in the UK > 38,000 customers > 207 people > 17 depots across the UK > 91 tankers > Supply 100 retail petrol stations > Fuel card market
Slide 19: Locations January 2012
Locations January 2012 Feeds Ayr Penrith Wardle* Wixland Food Deeside Wardle* Fuels Acle Ammanford Babbinswood Bangor Boston Burnley Burwell Droitwich Babbinswood Dyserth Kenilworth Kenilworth Droitwich Kingsbury Leaton Nottingham Southampton Southampton Stoke Wardle* Yate * Group head office and ma
Slide 20: Group organisation
Group organisation Chief Executive Non-Executive Directors " Richard Whiting " Mark Hudson (Chairman) " John Acornley " David Southworth Finance Director Company Secretary " Johnathan Ford " Rob Andrew Distribution Feeds Fuels " Managing Director " Managing Director " Managing Director Keith Forster
Slide 21: Wardle site: Group head office and main operating site
Wardle site: Group head office and main operating site NWF NWFGroup Groupplc plcInterim resultsresults Preliminary 30 November 2011 21 31 May 2011
Slide 22: Five year financial performance
Five year financial performance Revenue Earnings per share 500 14 450 12 400 350 10 300 £m 8 p 250 200 6 150 4 100 2 50 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Profit before tax Dividend per share 8 5 7 4 6 5 3 £m 4 p 3 2 2 1 1 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 NWF
Slide 23: Divisional Financial Track records
Divisional Financial Track records Food Feeds 50 3.5 120 45 4.0 3.0 40 100 3.5 35 2.5 3.0 80 Revenue £m 30 Revenue £m 2.0 2.5 EBIT £m EBIT £m 25 60 2.0 1.5 20 40 1.5 15 1.0 1.0 10 0.5 20 5 0.5 0 0.0 0 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 24: Fuels – additional market data
$ 0 100 120 130 140 10 20 30 40 50 60 70 80 90 110 01/06/2010 15/06/2010 29/06/2010 13/07/2010 27/07/2010 10/08/2010 24/08/2010 Fuels – additional market data 07/09/2010 21/09/2010 05/10/2010 19/10/2010 02/11/2010 16/11/2010 30/11/2010 14/12/2010 28/12/2010 11/01/2011 25/01/2011 08/02/2011 22/02/201
Slide 25: Feeds – additional market data
Feeds – additional market data Price per t onne $ 230 240 280 290 330 340 380 390 200 210 220 250 260 270 300 310 320 350 360 370 400 410 420 01/06/2010 14/06/2010 25/06/2010 09/07/2010 22/07/2010 04/08/2010 17/08/2010 30/08/2010 13/09/2010 24/09/2010 07/10/2010 20/10/2010 02/11/2010 15/11/2010 29/1