Fevara Plc · LSE:FVA

Fevara — Carr's Milling Industries — H1 2009 Earnings Presentation

17 slides from Fevara's earnings presentation, April 2009

  1. Slide 1: Carr's Milling Industries PLC – Half Year to 28 February 2009

    Carr’s Milling Industries PLC Profit Improve HALF YEAR TO 28 FEBRUARY 2009

  2. Slide 2: Overview

    Overview  1st half pre-tax profit £5.3m (2007:£5.2m) up 2%  Adjusted EPS 37.2p (2007:44.0p) down 15%  Half year dividend 6p unchanged  Good performance from all major business areas, save fertilisers  Fertiliser suffering from significant volume declines driven by anticipated price declines  F

  3. Slide 3: Divisional Picture

    Divisional Picture Revenue £130.2m (2008 £118.8m) Operating profit £4.8m (2008:£4.0m) Animal Feed  Following record harvest, compound and blended animal feeds volumes declined  Improved margin due to reduced cost base and operating efficiencies Agriculture  Crystalyx volumes and profit increased

  4. Slide 4: Carr's Five Year Record

    Carr’s Five Year Record 372.3 12.8 108.7 23.0 18.0 19.0 242.6 252.8 7.3 59.7 13.5 16.0 56 155.7 192.1 5.1 6.1 6.1 39.9 47.7 04 05 06 07 08 04 05 06 07 08 04 05 06 07 08 04 05 06 07 08 Revenue £m Profit before Adjusted earnings Dividends (p) tax* £m per share* (p) CAGR (04-08) Revenue 24.3% PBT* 25.9

  5. Slide 5: Financial Highlights – Ron Wood, Finance Director

    FINANCIAL HIGHLIGHTS Ron Wood Finance Director

  6. Slide 6: Financial Highlights

    Financial Highlights  Both revenue and profits increase modestly  Fertiliser performance held back profits  Significant increase in pension charge £0.4m  Net debt and cash flow inline with group budget  EPS lower reflecting associates and increase in shares in issue

  7. Slide 7: Carr's Income Statement

    Carr’s Income Statement Year ended August 2008 2007 Revenue Op. Profit Revenue Op. Profit £m £m £m £m Agriculture 275.8 11.8 185.9 5.2 Food Update 85.6 2.0 57.0 1.4 Engineering 10.7 1.1 9.6 1.0 Other 0.2 (1.0) 0.2 (0.3) 372.3 13.9 252.7 7.3 Non-recurring items 0.1 (0.4) Pension costs (1.1) (1.1) Ass

  8. Slide 8: Cash Flow

    Cash Flow 2008 2007 £m £m Operating profit 12.9 5.8 Depreciation/amortisation 3.5 3.9 Working capital outflow (10.6) (4.0) Interest paid (1.6) (1.0) Tax paid (0.6) (2.1) Other non-cash items (0.6) 1.2 From operating activities 3.0 3.8 Used in investing activities (2.8) (2.9) From/(used) in financing

  9. Slide 9: Summarised Balance Sheet

    Summarised Balance Sheet 30 August 08 01 September 07 £m £m Non-current assets 40.9 37.8 Current assets 86.7 51.8 Current liabilities (70.1) (39.8) Non-current liabilities (29.9) (20.9) Net assets 27.6 28.9 Minority interests – equity (2.6) (2.1) Equity shareholders’ funds 25.0 26.8 Net debt 17.4 15

  10. Slide 10: Macro Backdrop – Chris Holmes, CEO

    MACRO BACKDROP Chris Holmes CEO

  11. Slide 11: 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 - falling molasses (etc) - rising Agriculture Fertiliser Nitrogen, phosphate, potash Milk price and wheat price - falling - short term volatility in demand Agricultural supplies N/A O

  12. Slide 12: Agriculture – Farm Gate Milk Price

    Agriculture – Farm Gate Milk Price • Higher milk prices benefited dairy farmers– but recent price falls unsettling market • Dairy farming inherently more profitable • Input costs higher for farmers 12

  13. Slide 13: Agriculture – Wheat Prices

    Agriculture – Wheat Prices Feed Wheat Prices August 2006 - October 2008 Milling Wheat Prices August 2006 - October 2008 Feed Wh eat Price £/T Milling Wh ea t Price £/T 200 250 160 200 120 150 £ £ 80 100 40 50 - 0 Oct-06 Mar-07 Nov-06 Dec-06 Jan-07 Feb-07 May-07 Jun-07 Jul-07 Oct-07 Nov-07 Dec-07 Jan

  14. Slide 14: Agriculture – Fertiliser Raw Materials

    Agriculture – Fertiliser Raw Materials Fertiliser Raw Material Price Movements Sept 06 - Nov 08 800 700 Cost (£) per Tonne 600 POTASH 500 PHOSPHATE 400 NITROGEN 300 (CAN) 200 100 0 Date  Total reversal of last years position  Exceptional price deflation in fertiliser raw materials  Farmers holdin

  15. Slide 15: Food

    Food Food – Volume growth with restoration of margins  Some evidence of price resistance from bakers  Good recovery in volumes  Margin improved to 4% but still below historic levels  Raw material cost more stable 15

  16. Slide 16: Engineering

    Engineering  Significant orders completed  Details in some new contracts depressing short term  Acquisition significantly broadens product range and geographical reach  Expect modest progress for the year 16

  17. Slide 17: Outlook

    Outlook Agriculture  Short term negative impact of fertiliser demand and pricing  Good underlying growth in speciality feed blocks  Retail and oil remain stable Food  Restoration of margins remains a priority Engineering  Good long term prospects Long Term Optimism tempered by weak Fertilisers

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