Fevara Plc · LSE:FVA

Fevara — Carr's Milling Industries — H1 FY2011 Earnings Presentation

21 slides from Fevara's earnings presentation, Apr 11, 2011

  1. Slide 1: Carr's Milling Industries PLC Interim Results Presentation

    CARR’S MILLING INDUSTRIES PLC “strong trading momentum” Interim Results Presentation 11 April 2011

  2. Slide 2: Results Overview

    Results Overview  Revenue increased 27.0% to £204.7m (2010: £161.3m)  Pre-tax profit increased 48.9% to £7.9m (2010: £5.3m)  Fully diluted EPS increased 52.6% to 58.6p (2010: 38.4p)  First interim DPS increased 8.3% to 6.5p (2010: 6.0p)  Net debt up 44.5% to £28.2m (2010: £19.5m) Strong trading

  3. Slide 3: Agriculture – Trading

    Agriculture – Trading  Enlarged retail business in the North of England and Scotland (total number of stores: 19)  Encouraging early performance by Kuhn franchise for agricultural machinery  Fuel distribution increased volumes and margins in severe winter conditions  £35.6m revenue with positive

  4. Slide 4: Agriculture - Feed

    Agriculture - Feed  Mixed UK business environment  Favourable farmgate prices - except milk which remains unsustainably low  Excellent customer service  UK animal feed block business, Caltech, benefited from strong demand and integration of Scotmin Nutrition (feed supplements business acquired i

  5. Slide 5: Agriculture - Fertiliser

    Agriculture - Fertiliser  Strong demand resulting from high cereal prices and early buying by a large number of farmers anticipating higher raw materials prices  March and April are peak months for fertiliser sales; a significant proportion of sales normally made in this period already made in H1

  6. Slide 6: Fertiliser Raw Material Price Movements

    Agriculture – Fertiliser Fertiliser Raw Material Price Movements Sept 06 - Feb 11 700 600 Cost (£) per Tonne 500 POTASH (MOP) 400 PHOSPHATE (DAP/MAP) 300 NITROGEN (CAN) 200 100 0 Jun-07 Jun-08 Jun-09 Jun-10 Sep-06 Dec-06 Sep-07 Dec-07 Sep-08 Dec-08 Sep-09 Dec-09 Sep-10 Dec-10 Mar-07 Mar-08 Mar-09 Ma

  7. Slide 7: Food

    Food  Continuing challenges of overcapacity in UK flour market  Stable sales volumes despite milling wheat prices more than doubling since June 2010  Continuing focus on capex to reduce costs  Significant annual savings will offset continuing pressure on margins  Responding to pressure on SPs b

  8. Slide 8: Food: UK Milling Wheat price

    Food UK Milling Wheat - North West (HGCA) 280 260 240 220 200 £/mt 180 160 140 120 100 August September October November December January February M arch April M ay June July 2009/2010 2010/2011(A ct & Est) Liffe 10/11 Linear (2009/2010) Linear (2010/2011(A ct & Est)) Price soars from July 2010 8

  9. Slide 9: Engineering

    Engineering  Profit increase on lower revenue reflecting high material content and lower margins for contracts completed in 2010.  Wälischmiller profit similar to last year with H2 to benefit from expected contract completions in Germany, Japan and China – total value €4.5m  Order book strong thr

  10. Slide 10: Update on acquisitions

    Update on acquisitions  Acquired business successfully integrated  Scotmin Nutrition and AC Burn (acquired June 2010)  Forsyths of Wooler (acquired September 2010)  Total contribution from acquisitions  Revenue - £8.3m  Profit before taxation - £0.4m 10

  11. Slide 11: Income Statement

    Income Statement 26 weeks ended 26 February 2011 2010 Revenue£ PBT Revenue £m PBT m £m £m Agriculture Trading 124.0 4.0 97.8 3.2 Agriculture Manufacturing 36.8 2.6 22.7 1.1 Food 38.3 0.7 33.8 0.9 Engineering 5.6 0.6 6.9 0.4 Other (Head Office, etc) - (0.6) - (0.3) 204.7 7.3 161.2 5.3 Retirement Bene

  12. Slide 12: Cash Flow Statement

    Cash Flow Statement 26 weeks ended 26 February 2011 2010 £m £m Operating profit 7.5 5.2 Depreciation/amortisation 2.4 1.9 Working capital (outflow) (15.4) (1.7) Interest paid (0.5) (0.6) Tax paid (0.7) (0.6) Other – pension contribution (1.4) (1.4) Other – non-cash items (0.2) 0.5 Generated by opera

  13. Slide 13: Summarised Balance Sheet

    Summarised Balance Sheet 26 weeks ended 26 February 2011 2010 £m £m Non-current assets 48.0 44.6 Current assets 128.4 96.6 Current liabilities (98.7) (64.7) Non-current liabilities (31.7) (39.8) Net assets 46.0 36.7 Minority interests – equity (5.5) (4.0) Equity shareholders’ funds 40.5 32.7 Net deb

  14. Slide 14: Progressive dividend

    Progressive dividend  First interim dividend of 6.5p (2010: 6p) payable on 17 May 2011 to shareholders on the register at 26 April 2011.  Second interim dividend payable in October 2011  Final dividend, subject to shareholder approval, payable in January 2012 14

  15. Slide 15: Outlook

    Outlook Agriculture  Agricultural markets mainly positive  Stable UK fertiliser market  Further progress from feed block and supplements in UK, Europe, New Zealand & USA  Opening of AminoMax plant in upstate New York in August 2011 will benefit 2011/12  Further UK expansion in fuel Food  Conti

  16. Slide 16: Appendix

    Carr’s Milling Industries PLC  APPENDIX 16

  17. Slide 17: Carr's Milling Industries PLC

    Carr’s Milling Industries PLC  Established, profitable agriculture, food and engineering group  Operations primarily in UK, but also in USA and Germany  Strategy of organic and acquisitive growth  Progressive dividend policy  Highly experienced management team 17

  18. Slide 18: Carr's Five Year Record

    Carr’s Five Year Record 372.3 12.8 350.0 345.0 9.2 242.6 252.8 7.3 7.1 6.1 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Profit before Revenue £m tax* £m 108.7 24.0 23.0 23.0 19.0 18.0 65.7 59.7 56.0 51.0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Adjusted earnings Dividends per per share

  19. Slide 19: Divisional Structure

    Divisional Structure Animal Feed  UK dairy, beef and sheep compound and blended animal feeds  UK speciality feed (“AminoMax”) Agriculture  UK / USA / Germany feed blocks (“Crystalyx”, “Smartlic”) Fertiliser  UK standard fertiliser  UK speciality fertiliser (AVAIL) Agriculture retailing  UK far

  20. Slide 20: Key Macro Drivers for Carr's

    Key Macro Drivers for Carr’s Activity Key Cost Inputs Key Demand Driver Animal Feed Feed wheat, proteins, Milk price molasses (etc) Agriculture Fertiliser Nitrogen, phosphate, potash Milk price and wheat price Agricultural supplies N/A Overall farming profitability Food Food Flour Milling wheat Vola

  21. Slide 21: Strategy

    Strategy  Build on business and management strengths  Development of niche products  Selective geographic expansion  Opportunities from growth in nuclear expansion  Organic and acquisitive growth  £9m invested in business in 2009/10  Three dividend payments a year 21

Carr's Milling Industries — H1 FY2011 Earnings Presentation on 6ix