Analyst Meeting 16 May 2016 1 CONTENTS Key events Group - - PowerPoint PPT Presentation

Analyst Meeting

16 May 2016

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• Key events
• Group financial review
• Markets and operations outlook
• Conclusion

CONTENTS

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KEY EVENTS SINCE LAST ANALYST MEETING

TSCL increased crushing capacity from 90 tch to 160 tch TSCL increased crushing capacity from 90 tch to 160 tch Raising of Rs900M from 2nd issue of notes Raising of Rs900M from 2nd issue of notes Sale of last Amalthea unit and launch of northern phase at Anahita Sale of last Amalthea unit and launch of northern phase at Anahita Expected launch of Wilmotte villas at Anahita Expected launch of Wilmotte villas at Anahita

Apr 2016

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AEnL Submitted a new energy project proposal to CEB AEnL Submitted a new energy project proposal to CEB

Feb 2016 Apr 2016 June 2016 Nov 2015

TPC expected to reach capacity

• f 190 tch

TPC expected to reach capacity

• f 190 tch

CEL started

• perating

under new Power Purchase Agreement CEL started

• perating

under new Power Purchase Agreement

GROUP FINANCIAL REVIEW

Turnover up mainly driven by the contribution

• f TSCL

Turnover up mainly driven by the contribution

• f TSCL

Drop in PAT largely explained by the non recurrent gain of Rs305M on disposal of investment in 2015 Drop in PAT largely explained by the non recurrent gain of Rs305M on disposal of investment in 2015

Income statement for the 9 months ended

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Rs' million March 2016 March 2015 % Change Turnover 5,876 5,309 11% Ebitda 1,834 1,850

• 1%

Ebitda margin 31.2% 34.8% (3.6Pp) PAT 605 1,098

• 45%

Adjusted PAT 605 793

• 24%

Net margin 10.3% 20.7% EPS (Rs) 0.42 1.97

• 79%

Driven by lower results on Mauritian sugar

• perations,

delayed property sales and higher finance costs Driven by lower results on Mauritian sugar

• perations,

delayed property sales and higher finance costs

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GROUP FINANCIAL REVIEW

PAT by activity and country (figures in Rs M)

• 127

700 31 396 702

• 200
• 200

400 600 800 Mauritius Tanzania Kenya 9M 2016 9M 2015 497 102

• 71

10 29 37 506 108 26 319 43 96

• 100
• 100

200 300 400 500 600 9M 2016 9M 2015

Higher sugar price both in (Mauritius & Tanzania) Biological assets fair value movements Lower sucrose (Mauritius & Tanzania) Higher operating cost in Mauritius – more cane harvested Lower tariff on bagasse generated electricity New Power Purchase Agreement Delayed signing of sales deeds Higher property marketing costs Kenyan operations back to profitability Stable contribution from Tanzania

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GROUP FINANCIAL REVIEW

Balance sheet

2013-14 2012-13 restated

Increase mainly as a result of consolidating TSCL & recognition of intangible asset

• n acquisition of

the latter Increase mainly as a result of consolidating TSCL & recognition of intangible asset

• n acquisition of

the latter New debt for acquisition of TSCL together with consolidation of the existing debts at TSCL New debt for acquisition of TSCL together with consolidation of the existing debts at TSCL

Rs' million Mar-16 Jun-15 Non current assets 23,714 21,399 Current assets 5,472 5,090 Total assets 29,186 26,489 Equity and Liabilities 29,186 26,489 Net asset per share (Rs/share) 53.1 53.4

3,773 3,797 2,778 5,038 18,122 19,116 19,469 19,332 17% 17% 12% 21% 0% 5% 10% 15% 20% 25%

• 5,000

10,000 15,000 20,000 25,000 Jun 2013 Jun 2014 Jun 2015 Mar-16 Net Debt Equity Gearing

Gearing

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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

17.6 15.8 12.7 13.0 15.0 10 11 12 13 14 15 16 17 18

Sugar prices- Mauritius

2012 2013 2014 2015 2016

* * **

* Excludes a one off payment of Rs 2,000/ ton from SIFB - ** First estimates for crop 2016 Rs’000

Present price closer to EUR 550

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MARKETS & OPERATIONS OUTLOOK

• 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 SUGAR (MAURITIUS)

MARKETS & OPERATIONS OUTLOOK

• 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

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ENERGY

Q & A

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

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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

• perations, 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 This presentation has been prepared exclusively for the purpose of the analyst meeting held on this 16th 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

DISCLAIMER

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