M.p. Evans Group Plc · LSE:MPE
M.p. Evans — H1 2017 Earnings Presentation
18 slides from M.p. Evans's earnings presentation, Sep 18, 2017
Slide 1: 2017 Interim Report
M.P. EVANS GROUP PLC INTERIM REPORT 2017: 18 September 2017 2017 INTERIM REPORT Monday 18 September 2017
Slide 2: Agenda
M.P. EVANS GROUP PLC INTERIM REPORT 2017: 18 September 2017 Agenda 1. Strategy overview 2. Interim results 3. Operational overview 4. Investment case 1
Slide 3: Strategy Overview
M.P. EVANS GROUP PLC INTERIM REPORT 2017: 18 September 2017 STRATEGY OVERVIEW • Strategic shift to majority-owned estates • Announcement of acquisition… • … and increasing dividend 2
Slide 4: Strategic shift to majority-owned estates
STRATEGY M.P. EVANS GROUP PLC OVERVIEW INTERIM REPORT 2017: 18 September 2017 Strategic shift to majority-owned estates • Progression to ‘one country: one commodity’ now largely achieved • Sale of Agro Muko joint venture completed in March 2017 marks significant shift towards majority ownership • At
Slide 5: Announcement of acquisition…
STRATEGY M.P. EVANS GROUP PLC OVERVIEW INTERIM REPORT 2017: 18 September 2017 Announcement of acquisition… • Acquisition of 10,000-hectare estate in East Kalimantan, PT BMA, announced in August 2017 • Regulatory formalities to be completed in Indonesia • 8,800 hectares planted; 600 hectares still to
Slide 6: … and increasing dividend
STRATEGY M.P. EVANS GROUP PLC OVERVIEW INTERIM REPORT 2017: 18 September 2017 … and increasing dividend • US$63 million increase in total Group profit for the period to US$81 million Proposed interim dividend 2017 5.00p PER SHARE • Interim dividend proposed of 5.00 pence per share (2016 2.25 pence)
Slide 7: Interim Results
M.P. EVANS GROUP PLC INTERIM REPORT 2017: 18 September 2017 INTERIM RESULTS • Operating profit more than tripled • Significant profit on sale of Agro Muko joint venture 6
Slide 8: Operating profit more than tripled
INTERIM M.P. EVANS GROUP PLC RESULTS INTERIM REPORT 2017: 18 September 2017 Operating profit more than tripled Revenue Gross profit Operating profit +89% +237% +245% Revenue up 89% to Gross profit more than Increase in operating profit US$57.5 million tripled to US$17.2 million to US$17.6 million (2
Slide 9: Significant profit on sale of Agro Muko joint venture
INTERIM M.P. EVANS GROUP PLC RESULTS INTERIM REPORT 2017: 18 September 2017 Significant profit on sale of Agro Muko joint venture Profit from discontinued Continuing £ earnings per Operating cash operations share (EPS) generated +372% +489% +79% Profit from discontinued Significant increase in Opera
Slide 10: Operational Overview
M.P. EVANS GROUP PLC INTERIM REPORT 2017: 18 September 2017 8 OPERATIONAL OVERVIEW • Strong crop growth as hectarage increases and young plantings mature… • … underpinning significant increase in production • Growth in planted areas presages future crop and revenue growth… • … bolstered by BMA acqui
Slide 11: Strong crop growth as hectarage increases and young plantings mature…
OPERATIONAL M.P. EVANS GROUP PLC OVERVIEW INTERIM REPORT 2017: 18 September 2017 Strong crop growth as hectarage increases and young plantings mature… • Crops have resumed upward path interrupted by unusual and severe El Niño in 2015-16 • Group fresh fruit bunch (ffb) crop 213,800 tonnes, 26% higher
Slide 12: … underpinning significant increase in production
OPERATIONAL M.P. EVANS GROUP PLC OVERVIEW INTERIM REPORT 2017: 18 September 2017 … underpinning significant increase in production • 56% increase in production of CPO to 70,500 tonnes • Continuation of good oil-extraction rates in Group’s three mills in Kalimantan (24.7%), North Sumatra (23.3%) and
Slide 13: Growth in planted areas presages future crop and revenue growth…
OPERATIONAL M.P. EVANS GROUP PLC OVERVIEW INTERIM REPORT 2017: 18 September 2017 Growth in planted areas presages future crop and revenue growth… Actual and projected crop 2011 – 2020 (‘000 tonnes) • Acquisition of BMA will lower average 1,200 palm age to below 7 years Group Co-operatives 1,000 • To
Slide 14: … bolstered by BMA acquisition
OPERATIONAL M.P. EVANS GROUP PLC OVERVIEW INTERIM REPORT 2017: 18 September 2017 … bolstered by BMA acquisition • Current planting, including co-operatives and BMA acquisition, has reached 46,400 hectares • Total planting from existing land bank expected to reach 53,800 hectares Actual and projected
Slide 15: In Malaysia, property development activity continues
OPERATIONAL M.P. EVANS GROUP PLC OVERVIEW INTERIM REPORT 2017: 18 September 2017 In Malaysia, property development activity continues Bertam Properties • 66 completed sales of developed properties in first half 2017; 217 in first half of 2016 • Small loss for the period following payment of compensa
Slide 16: Investment Case
M.P. EVANS GROUP PLC INTERIM REPORT 2017: 18 September 2017 14 INVESTMENT CASE • M.P. Evans continues to carry out its strategy… • … to create value for shareholders Interim results 2016 15
Slide 17: M.P. Evans continues to carry out its strategy…
INVESTMENT M.P. EVANS GROUP PLC CASE INTERIM REPORT 2017: 18 September 2017 M.P. Evans continues to carry out its strategy… • Focus on majority-owned plantations • Maintain Group’s position of operational excellence, productivity and low unit cost by adding to its experienced management team • Conti
Slide 18: … to create value for shareholders
INVESTMENT M.P. EVANS GROUP PLC CASE INTERIM REPORT 2017: 18 September 2017 16 … to create value for shareholders • Increasing crop and revenue from existing, and new, plantations for years to come • High extraction rates - important for: • Maximising revenue • Keeping unit costs low • Good cash flo