Analyst Meeting 16 May 2016 1
CONTENTS Key events • Group financial review • Markets and operations outlook • Conclusion • 3
KEY EVENTS SINCE LAST ANALYST MEETING June 2016 Nov 2015 Feb 2016 Apr 2016 Apr 2016 Sale of last Sale of last Amalthea Amalthea unit and unit and Raising of Raising of TSCL TSCL launch of launch of Rs900M Rs900M Expected Expected increased increased northern northern from 2 nd from 2 nd launch of launch of crushing crushing phase at phase at issue of issue of Wilmotte Wilmotte capacity capacity Anahita Anahita notes notes villas at villas at from 90 tch from 90 tch Anahita Anahita to 160 tch to 160 tch AEnL AEnL TPC TPC Submitted a Submitted a expected expected CEL started CEL started new energy new energy to reach to reach operating operating project project capacity capacity under new under new proposal to proposal to of 190 tch of 190 tch Power Power CEB CEB Purchase Purchase Agreement Agreement 4
GROUP FINANCIAL REVIEW Turnover up Turnover up mainly mainly Income statement for the 9 months ended driven by driven by the the March March % Rs' million contribution contribution 2016 2015 Change of TSCL of TSCL Turnover 5,876 5,309 11% Drop in PAT Drop in PAT Ebitda 1,834 1,850 -1% largely explained largely explained Ebitda margin 31.2% 34.8% (3.6Pp) by the non by the non PAT 605 1,098 -45% recurrent gain of recurrent gain of Rs305M on Rs305M on Adjusted PAT 605 793 -24% disposal of disposal of Net margin 10.3% 20.7% investment in investment in EPS (Rs) 0.42 1.97 -79% 2015 2015 Driven by lower Driven by lower results on results on Mauritian sugar Mauritian sugar operations, operations, delayed property delayed property sales and higher sales and higher finance costs finance costs 5
GROUP FINANCIAL REVIEW PAT by activity and country (figures in Rs M) Higher sugar price both in (Mauritius & Tanzania) 600 506 497 500 Biological assets fair value movements 400 Lower sucrose (Mauritius & Tanzania) 319 300 Higher operating cost in Mauritius – more cane harvested 200 108 102 96 Lower tariff on bagasse generated electricity 100 43 37 29 26 10 -71 - New Power Purchase Agreement -100 Delayed signing of sales deeds 9M 2016 9M 2015 Higher property marketing costs 800 700 702 600 396 Kenyan operations back to profitability 400 Stable contribution from Tanzania 200 31 -127 - - Mauritius Tanzania Kenya -200 6 9M 2016 9M 2015
GROUP FINANCIAL REVIEW Increase mainly Increase mainly as a result of as a result of consolidating consolidating Balance sheet TSCL & TSCL & 2013-14 2012-13 recognition of recognition of Rs' million Mar-16 Jun-15 restated intangible asset intangible asset Non current assets 23,714 21,399 on acquisition of on acquisition of Current assets 5,472 5,090 the latter the latter Total assets 29,186 26,489 Equity and Liabilities 29,186 26,489 Net asset per share (Rs/share) 53.1 53.4 New debt for New debt for Gearing acquisition of acquisition of 25,000 25% TSCL together TSCL together 19,332 19,469 19,116 18,122 with with 12% 21% 17% 20,000 20% 17% consolidation of consolidation of 15,000 15% the existing the existing debts at TSCL debts at TSCL 10,000 10% 5,038 3,797 3,773 5,000 5% 2,778 - 0% Jun 2013 Jun 2014 Jun 2015 Mar-16 Net Debt Equity Gearing 7
MARKETS AND OPERATIONS OUTLOOK Recent improvement in EU market • price Latest world deficit forecast for • 2015/16- estimated at 11M tons of sugar, significantly higher than previous forecasts Present price closer to EUR 550 Sugar prices- Mauritius 17.6 18 17 2012 15.8 16 15.0 ** 2013 Rs’000 15 14 2014 13.0 * 12.7 * 13 2015 12 2016 11 10 * Excludes a one off payment of Rs 2,000/ ton from SIFB - ** First estimates for crop 2016 9
MARKETS & OPERATIONS OUTLOOK SUGAR (MAURITIUS) Most of the revenues for the financial year have been recognised as at March 31 • 2016 Given favourable climatic conditions to date, an average to good crop 2016 is • anticipated A better outlook on EU prices is anticipated • SUGAR (TANZANIA) Tpc Ltd is expected to register a marginal increase in profitability in Q4 as it will • have already cleared the greater part of its sugar stock Adequate rain fall level in the region to date should favour a good 2016 crop • Domestic prices expected to remain firm sustained by relatively higher world • market prices SUGAR (KENYA) The expected ramping up of production in Q4 should positively impact the • results for the year 10
MARKETS & OPERATIONS OUTLOOK ENERGY Results at Alteo Energy Ltd are expected to be further impacted by the decline in • tariff but should be partly mitigated by improved results at Consolidated Energy Ltd PROPERTY & HOSPITALITY Results for the last quarter should be positively impacted by the signing of the • remaining sales deeds for the Amalthea residences Anahita is presently launching a new phase of plots and villas including • exceptional seafront properties. These should positively impact results as from next financial year 11
CONCLUSION Group results for FY16 should be close to the results for the 9 months to March 31 2016 • and lower than last year’s due to the non recurrent gain booked in FY15 A combination of an expected better production and an improved sugar price should • enable a turn around in the sugar cluster in Mauritius The energy cluster should benefit from CEL operations on a full year basis • TSCL is expected to continue to positively contribute to the Group’s performance in the • next financial year Actively evaluating other investment projects in the region • At Anahita, the launching of two parcels in the northern phase will bring in additional • momentum Q & A 12
DISCLAIMER This presentation has been prepared exclusively for the purpose of the analyst meeting held on this 16 th May 2016 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 prevail. However, no responsibility whatsoever shall be accepted by the Company, its shareholders, directors, and officers for any 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 13
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