ANALYST MEETING
Friday 17th May 2019
ANALYST MEETING Friday 17 th May 2019 DISCLAIMER This presentation - - PowerPoint PPT Presentation
ANALYST MEETING Friday 17 th May 2019 DISCLAIMER This presentation has been prepared exclusively for the purpose of the analyst meeting held on this 17 th May 2019 concerning Alteo Limited (the Company). This presentation contains only
Friday 17th May 2019
This presentation has been prepared exclusively for the purpose of the analyst meeting held on this 17th May 2019 concerning Alteo Limited (the “Company”). This presentation contains only summary information and does not purport to be comprehensive. Participants are recommended to read the Company’s latest published condensed unaudited financial statements available on the Company’s website (www.alteogroup.com). The Company has used all reasonable endeavours to provide accurate information in this presentation. In the event of a discrepancy between this presentation and the published condensed unaudited financial statements, the latter shall
prejudice resulting from reliance upon the information contained in this presentation. This presentation contains statements related to our future business and financial performance and future events or developments involving Alteo that may constitute “forward-looking statements”. These statements may be identified by words such as "expect", "look forward to", "anticipate", "intend", "plan", "believe", "seek", "estimate", "will", "project" or words of similar meaning. Such forward-looking statements are by their nature based on the current expectations and certain assumptions of Alteo's management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Alteo's control, may affect Alteo's operations, performance, business strategy and results and could cause the actual results, performance or achievements of Alteo to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends. Alteo neither intends, nor assumes any obligation, to publicly or otherwise update or revise these forward-looking statements in light of developments which differ from those anticipated. Alteo makes no representation whatsoever about the opinion or statements of any analyst or other third party. Alteo does not monitor or control the content of third party opinions or statements and does not endorse or accept any responsibility for the content or the use of any such opinion or statement.
GROUP FINANCIAL REVIEW MARKETS OUTLOOK
Rs’ M March 2019 March 2018 % Change Turnover 6,827 6,250 9% Normalised EBITDA 1,715 1,774
EBITDA 1,836 1,977
PAT 472 618
PAT attributable to owners
47 113
EPS (Rs) 0.15 0.36
DPS (Rs) 0.32 0.35
5
ANALYST MEETING
GROUP PROFITABILITY REVIEW
INCOME STATEMENT FOR THE PERIOD ENDED MARCH 31
Better sales achieved by Kenyan sugar
Property cluster Lower gains on sale of land and higher finance costs for East African sugar operations Excludes crop 2017 insurance compensation and gains on sale of land
PAT BY CLUSTER (in Rs’ M)
406 81
677 93
100 200 300 400 500 600 700 800 Sugar Energy Property 2019 2018
Sugar: Drop in results mainly driven by lower profitability on sales of imported sugar by TPC Energy: Lower profitability with
plant
CEL’s operations in December 2018 Property: Results continued to improve with higher property sales revenue recognition (43% works completion on 8 villas and the sale of 4 serviced plots signed)
ANALYST MEETING
GROUP PROFITABILITY REVIEW
SUGAR CLUSTER PROFIT (in Rs’ M)
780
1120
200 400 600 800 1000 1200 Mauritius Tanzania Kenya 2019 2018
Mauritius: Lower price environment together with lower volume produced. Prior year’s losses included substantially higher negative movements on FV off biological assets Tanzania: Higher volume sold but lower margins on sales of imported sugar by TPC Kenya: Better price environment together with higher cane availability contributed to improved results. Losses include finance costs on acquisition debt contracted by holding company (SML) Sugar (Rs M)
2019 2018
Reported PAT (251) (155) Non recurring items 123 200 Normalised PAT (374) (355)
ANALYST MEETING
GROUP PROFITABILITY REVIEW
GEARING (in Rs’ M)
2,778 5,567 5,061 6,222 6,155 19,469 19,291 19,454 19,035 19,226 12% 22% 21% 25% 24% 0% 5% 10% 15% 20% 25% 30%
10,000 15,000 20,000 25,000 Jun 2015 Jun-16 Jun-17 Jun-18 Mar-19 Net Debt Equity Gearing
Group gearing stood at 24% at March 31 2019
NET DEBT BY COMPANY (in Rs’ M)
1290 1309 360 1653 558 944 41
SML TSC Alteo AAL AML Aestl Others
Sucriere des Mascareignes Transmara Sugar Co Ltd Alteo Limited Alteo Agri Ltd Alteo Milling Ltd Anahita Estates Ltd
ANALYST MEETING
GROUP DEBT REVIEW Rs1.5bn issue under new Note Programme is mostly for refinancing of short term facilities
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CASH FLOWS FOR THE PERIOD ENDED MARCH 31
(1,288) (771) 442 (389) 454 419 (409)
July 1 2018 Cashflows from
Capital expenditure Sale of assets and investment Net borrowings Dividend paid March 31 2019
Mostly proceeds from sale of land by Alteo Agri
ANALYST MEETING
GROUP CASH FLOW REVIEW
EU MARKET SUGAR PRICES – MAURITIUS (ex MSS)
GLOBAL SUGAR SURPLUS/ DEFICIT
Million’ tons Rs’000
17.6 15.8 12.7 13.0 15.6 11
8.8
8 10 12 14 16 18 20 2012 2013 2014 2015 2016 2017 2018
* * * *
3.3
1.7 6.6 7.6 6.0 2.2
7.8 0.6
ANALYST MEETING
MARKETS
price conditions on the EU market, however…
compensations will mitigate losses
impairment – any impairment booked in Q4 will impact EPS
price are expected to continue to be beneficial to the Kenyan
year’s volume in Q4 as stock is cleared
FINANCIAL YEAR
ANALYST MEETING
SUGAR OUTLOOK
2018 and prices picking up on the EU market
Mauritian agri
is
– Abandonment of unviable manual fields as from crop 2019 to drive down cost of production and accelerate shift to 100% mechanisation
factory area and additional special sugar production
December 2019
BEYOND
ANALYST MEETING
SUGAR OUTLOOK
last year with less contribution from CEL and higher depreciation at AEnL
FINANCIAL YEAR BEYOND
well
ANALYST MEETING
ENERGY OUTLOOK
plan progress and sales of several serviced plots are signed
FINANCIAL YEAR BEYOND
Alteo
development nodes earmarked (Old Beau Champ factory zone and Beau Rivage site)
ANALYST MEETING
PROPERTY OUTLOOK
Alteo Limited – Head Office Vivéa Business Park, St Pierre, 81430, Mauritius Phone: (230) 402 9050 Fax: (230) 432 0729 info@alteogroup.com