Fevara Plc · LSE:FVA

Fevara — Carr's Group — FY2009 Earnings Presentation

17 slides from Fevara's earnings presentation, November 2009

  1. Slide 1: Preliminary Results Presentation, Year to 29 August 2009

    PRELIMINARY RESULTS PRESENTATION YEAR TO 29 AUGUST 2009 A satisfactory year in the circumstances

  2. Slide 2: Overview

    Overview  Pre-tax profit £7.0m (2008:£12.9m) down 45%  Fully diluted EPS 50.3p (2008:91.2p) down 45%  Full year DPS 23.0p (2008:23.0p) unchanged  Profit reduction entirely in Agriculture, nearly all in Fertiliser  Gearing reduced to 65% despite £4.3m acquisition Results down due to fertiliser p

  3. Slide 3: Divisional Structure

    Divisional Structure Revenue £255m (2008:£276m) Operating profit £6.0m (2008:£11.7m) 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 

  4. Slide 4: Five Year Record

    Carr’s Five Year Record £372.3m £12.8m 108.7p 23.0p 23.0p £350.0m 19.0p 18.0p 16.0p £242.6m £252.8m £7.3m £7.0m 59.7p £192.1m 56.0p £6.1m £6.1m 50.4p 47.7p 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 Revenue £m Profit before Adjusted earnings D

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

    FINANCIAL HIGHLIGHTS Ron Wood Finance Director

  6. Slide 6: Income Statement

    Income Statement Year ended August 2009 2008 Revenue Op. Profit Revenue Op. Profit £m £m £m £m Agriculture 255.0 6.1 275.8 11.8 Food 79.0 2.3 85.6 2.0 Engineering 15.9 1.4 10.7 1.1 Other 0.1 (0.9) 0.2 (1.0) 350.0 8.9 372.3 13.9 Non-recurring items  0.1 Pension costs (1.6) (1.1) Associate & JV’s (PA

  7. Slide 7: Cash Flow

    Cash Flow Year ended August 2009 2008 £m £m Operating profit 7.3 12.9 Depreciation/amortisation 3.5 3.5 Working capital outflow (2.7) (10.6) Interest paid (1.3) (1.6) Tax paid (3.0) (0.6) Other non-cash items 1.8 (0.6) From operating activities 5.6 3.0 Used in investing activities (6.6) (2.8) From f

  8. Slide 8: Summarised Balance Sheet

    Summarised Balance Sheet 29 August 09 30 August 08 £m £m Non-current assets 44.6 40.9 Current assets 77.4 86.7 Current liabilities (46.9) (70.1) Non-current liabilities (41.8) (29.9) Net assets 33.3 27.6 Minority interests – equity (3.4) (2.6) Equity shareholders’ funds 29.9 25.0 Net debt 19.3 17.4

  9. Slide 9: Macro Backdrop – Chris Holmes, CEO

    MACRO BACKDROP Chris Holmes CEO

  10. Slide 10: 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

  11. Slide 11: Macro Backdrop: Global Agriculture

    Macro Backdrop: Global Agriculture World Population Prospects 9 Global food market being driven by 8  Rising population 7  Increased standards of living Human Population (billions) 6 5  Move to a “western” diet in Asia 4 3 2 1 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 More develope

  12. Slide 12: Agriculture – Farm Gate Milk Price

    Agriculture – Farm Gate Milk Price Average Annual Milk Price PPL 27.00 25.91 25.00 24.87 24.47 23.64 23.00 Pence Per Litre 21.95 21.00 20.66 19.26 19.13 19.00 18.30 18.45 18.46 18.01 17.94 17.00 16.91 17.05 15.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year • Highe

  13. Slide 13: Agriculture – Wheat Prices

    Agriculture – Wheat Prices Feed Wheat Prices August 2006 - October 2009 Feed Wheat Price £/T Milling Wheat Price £/T 250 200 150 £ 100 50 - May-07 May-08 May-09 Nov-06 Nov-07 Nov-08 Aug-06 Sep-06 Apr-07 Sep-07 Apr-08 Aug-08 Sep-08 Apr-09 Oct-06 Dec-06 Jan-07 Feb-07 Mar-07 Jul-07 Aug-07 Jun-07 Oct-07

  14. Slide 14: Agriculture – Fertiliser Raw Materials

    Agriculture – Fertiliser Raw Materials Fertiliser Price Movements Sept 06 - Nov 09 700 600 Cost (£) per Tonne 500 POTASH (MOP) 400 PHOSPHATE (DAP/MAP) 300 NITROGEN (CAN) 200 20.10.10 (S/PRICE) 100 0 Se 07 Se 08 Se 09 De 06 M 06 De 07 M 07 De 08 M 08 09 Ju 7 Ju 8 Ju 9 -0 -0 -0 n- n- n- p- c- p- c- p-

  15. Slide 15: Food

    Food A better year  Top quality flour milling  Extensive R and D programme  Customers include Warburtons, United Biscuits, Greggs  Low risk business with potential to grow  Product innovation  Strategic value 14

  16. Slide 16: Engineering

    Engineering Pressure Vessels  Produce vessels for petrochemical, oil and gas industries  High skills base Nuclear  Global energy programme  Expanded remote handling equipment business - Wälischmiller  Excellent gross margins  Tier 2 supplier on decommissioning contracts 15

  17. Slide 17: Outlook

    Outlook Agriculture  Fertiliser margin improvement a priority  New value added fertiliser product - AVAIL  AminoMax USA  Global growth in Carr’s feed blocks Food  Margin improvement a priority Engineering  New contract opportunities Improvement in fertiliser, otherwise broadly stable 16

Carr's Group — FY2009 Earnings Presentation on 6ix