Fevara Plc · LSE:FVA
Fevara — Carr's Group — FY2024 Earnings Presentation
33 slides from Fevara's earnings presentation, December 2024
Slide 1: Full Year Results 2024 and Future Strategy
Full Year Results 2024 and Future Strategy December 2024 David White, Chief Executive Officer, Group Gavin Manson, Chief Financial Officer, Group Joshua Hoopes, Chief Executive Officer, Global Agriculture
Slide 2: Results and Future Strategy
Results and Future Strategy 2024 Overview: Transformative change to drive future growth Update on strategy for Engineering Division Financial Review: FY2024 Results Agriculture Review and Strategy PLC / Central Strategy Summary 2 2
Slide 3: 2024 Overview: Transformative changes to drive future growth
2024 Overview: Transformative changes to drive future growth Highlights: Process to realise value for Engineering Division is continuing positively Parallel focus on preparing the Group for its future with a clear strategy for value generation in Global Agriculture Global Agriculture leadership team
Slide 4: Value Realisation of Engineering Division
Value Realisation of Engineering Division Strategy Review Process Update In April 2024 we announced we were Engineering Division continuing to perform exploring options regarding the potential strongly and generate cash disposal of the Engineering Division Forward order book continuing close to Driv
Slide 5: Progress in Agriculture
Progress in Agriculture Sector Expertise Brought in to Lead Simplification and Focus Agriculture Business Joshua Hoopes joined as CEO Global Single division allows expert focus on Agriculture in March 2024 Agriculture, which offers long-term growth based on core products – in Supported by new UK Com
Slide 6: Financial Review: FY2024 Results
Financial Review: FY2024 Results 6
Slide 7: Basis of Presentation of Financial Results
Basis of Presentation Of Financial Results Basis of Presentation Continuing Activities Discontinued Activities Given status of Continuing Activities represents: Discontinued Activities transformational activities at represents the period end statutory Our Agriculture businesses in reporting is requi
Slide 8: Continuing Operations
Continuing Operations FY24 FY23 Change Continuing Operations represents our Agriculture businesses in UK, £m £m £m US (continuing) and New Zealand and JVs in US and Germany Revenue: UK Agriculture Agriculture recovery momentum building: 38.2 36.1 2.1 YOY variance (%) H1 H2 US Agriculture 37.5 45.7 (
Slide 9: Like for Like Disclosure
Like for Like Disclosure FY24 FY23 Change Like for Like Disclosure reflects the Group as it traded £m £m £m throughout FY24 and on a basis consistent with that Revenue: Agriculture 88.0 92.6 (4.6) disclosed as Continuing Operations in the Group's FY23 reporting. Engineering 60.1 50.6 9.5 Agriculture
Slide 10: 2024 Summary Financials – Agriculture Like For Like
2024 Summary Financials – Agriculture Like For Like Revenue (£m) Trading conditions 100.0 92.6 88.0 78.1 H1 volume and revenue reduction as 80.0 68.5 35.5 35.2 60.0 35.4 challenging conditions continued 28.3 40.0 57.1 52.8 H2 volume recovery commenced – but 20.0 40.2 42.7 0.0 seasonally lower 2021 2
Slide 11: 2024 Summary Financials – Engineering
2024 Summary Financials – Engineering Revenue (£m) Trading 80.0 60.1 60.0 46.2 50.6 Strong momentum continues with: 40.0 31.6 • Revenue growth of 19% and 24.4 28.0 20.0 28.5 • Adjusted Operating Profit growth of 36% 21.8 22.6 0.0 2022 2023 2024 Robotics businesses in Germany and UK H1 H2 FY both per
Slide 12: Net Cash/(Debt) Movement
Net Cash/(Debt) Movement Movement in net cash/(debt) (excluding leases) £m Key points Continuing net cash at end FY24 of £8.0m offset by £3.5m net debt within Discontinued Operations Main bank facility in place until December 2026 – quantum being renegotiated in light of engineering process Post yea
Slide 13: Balance Sheet
Balance Sheet Statutory Disclosure At 3 September Net assets held for sale inFY24 At 31 August 2023 relate to ‘discontinued activities’ 2024 Restated : £m £m Change ➢ Engineering Division Fixed assets 21.3 68.6 -70% ➢ Properties Net working capital 10.6 35.9 -70% ➢ Afgritech Assets/liabilities held
Slide 14: Adjusting Items
Adjusting Items £’m Continuing Discontinued Total Significant exceptional costs required to effect the transformation of the Group and Cash Items prepare for significant return of value to shareholders Restructuring costs and costs to sell assets 2.1 1.1 3.2 held for sale ERP Implementation 0.8 - 0.
Slide 15: PLC / Central Strategy
PLC / Central Strategy 15
Slide 16: PLC / Central Strategy
PLC / Central Strategy Simplified and Focussed Executive Board Group Head Office relocated to inexpensive Leadership focus on return of capital to flexible office space shareholders, completion of Engineering disposal, right-sizing central costs and pension scheme de- Rightsizing of central resource
Slide 17: Global Speciality Agriculture Strategy
Global Speciality Agriculture Strategy 17
Slide 18: Who we are: a global specialist
© Who we are... A global specialist of feed supplements for cattle, horses, sheep and goatss @© Multinational manufacturing across 3 different countries © Over 20 countries sold to globally @® 5market leading product brands: Crystalyx™, Smartlic™, Feed ina Drum™, Horslyx™ and Tracesure™ @© Ledby glo
Slide 19: What we do: manufacture and sell supplements
© What we do... »*® Manufacture and sell research proven supplements delivered through block, bolus Feed and bagged mineral formats: The core product for our business. Making up 90% of our revenue. Bagged minerals Boluses
Slide 20: Crystalyx vs competitor
ystalyx vs competitor e Why farmers purchase —_— “s our products... ; Because forages aren’t enough, Crystalyx nutrition solutions help maximise your herd’s potential and your profits, ed lick e bee ® Our products improve the health, performance, and nals far more consistently t! fertility of livest
Slide 21: Our strategy
e Our strategy... Improve operating margin across Global Agriculture portfolio Deliver profitable commercial Drive shareholder returns growth in the core business and growth by leveraging our feed supplement expertise Expand into new extensive as a global specialist for grazing based growth geograph
Slide 22: Portfolio shift and operational excellence
Portfolio shift away from low margin, commodity-based products • Recent sale and disposal of Afgritech (New York, USA based rumen bypass business) Introduce operational excellence programme • Integrated UK operations leadership across x three sites • Oklahoma USA site leadership change Execute cost
Slide 23: Branded, differentiated and patented products
Focus on driving branded, differentiated and patented products within portfolio • Farm level marketing and demand generation investment initiated • Global NPD programme established Reinvigorated commerciality and sales capability • New UK commercial leadership with integrated sales team across all p
Slide 24: New markets and beef demand outlook
The OECD has forecast beef consumption will increase to 76Mt between 2020 and 2029, while the FAO New distribution partner and model established for New predicts global protein Zealand market availability from beef • Volume growth expected will rise 8% in the 10 • Cost reduction in progress years to
Slide 25: Increasing demand
Increasing demand ° Industry growth and ten deta 4| population growth future demand... rising affluence Global Cattle Stocks (millions) Global Sheep Stocks (millions) Global Goats Stocks (millions) 1700 1700 1700 1500 1500 1500 1300 1300 1300 1100 1100 1100 900 goo g00 700 Growth CAGR | owth CAGR 5
Slide 26: Livestock stocks per sq km
© Continued... ® Cattle Stocks __ (millions per sq km) ® Sheep Stocks (millions per sq km) ® Goat Stocks (millions per sq km) Source: faoorg
Slide 27: Global cattle meat yields
Continued… Strategic use of supplements can improve productivity, rural livelihoods and food security. Global Cattle Meat Yields (Kg per animal) 400 +65% 350 300 +97% 250 World 200 Average 150 100 50 0 Mexico Brazil Turkey Kenya Pakistan World Average Tanzania United States United Kingdom Uzbekistan
Slide 28: Our operating model
© Our operating model. Carr’s . Groupplc : | Global C . Y 4 oordinated Local Businesses Leadership Team Ocal DUSINESSe 4 . Research and 5 Disciplined capitatallocation Development : Deep customer intimacy js f 3 id market insight. = and risk management. : rR SESE es 3 and market Insig Our operating
Slide 29: Carr's Group is well-positioned for growth
CGarr's Group is well-positioned for growth with strong product offerings, strategic market presence, and a Clear focus on delivering shareholder value, Delivering today, building our future
Slide 30: Summary
Summary 30
Slide 31: Summary
Summary Conclusion of Strategic Review Progress disposal process of Engineering Division to conclusion Return of vast majority of capital to shareholders Tender offer process expected to take 8-10 weeks from completion Agriculture Agriculture Strategy defined and focus is clear Actions already taken
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Slide 33: Carr's Group plc contact details
Carr’s Group plc Telephone: +44 (0) 1228 554600 Email: [email protected] or [email protected] or [email protected] Warwick Mill Business Centre, Warwick Bridge, Carlisle, Cumbria, CA4 8RR www.carrsgroup.com Alternatively contact FTI Consulting Tel: +44 (0) 2037 271340 E