ENL Group Investor meeting 15 February 2016
Agenda HY2016 performance and outlook ENL Commercial ENL Land ENL Lifestyle ENL Limited
ENL Commercial
ENL COMMERCIAL: DEVELOPMENTS Sales of Peugeot vehicles as from December 15 Shops opened at Home & Leisure - Grewals and Maison & Co (Charabia & L’Epongerie) Purchase of 50% stake in JMD, engaged in the distribution of powder coated aluminum profiles to enlarge product offerings Acquisition of property at Petite Rivière to house Nabridas activities 4
REVIEW OF ENL COMMERCIAL Dec 31, June 30, Rs ‘ m Change 2015 2015 Increase in total assets and net indebtedness due Total assets 2,289 2,123 7.8% to: Shareholders’ interests 716 747 (4.1%) Purchase of immovable properties 716 Total equity 747 (4.1%) Higher stockholding costs Net Indebtedness 1,041 846 +23.1% Net debt to equity 146.1% 113.2% +32.9ppt Per share data (Rs) Net asset value 24.54 25.62 Dec 31, Dec 31, Period ended Change 2015 2014 Results impacted negatively by lower vehicles Turnover 1,268 1,277 (0.7%) sales following shift in vehicles market towards Operating profit 17 23 (26.1%) second hand (Loss) (17) 4 Mitigated by better sales to the hospitality industry Per share data (Rs) Losses incurred by associated company, Cogir, Earnings (0.59) (0.12) due to sustained pressure on margins Dividend 0.45 0.60 5
REVIEW OF ENL COMMERCIAL Turnover Results after tax Period ended 31 st Dec (in Rs’m ) 2015 2014 2015 2014 Automotive 857 891 (6) 5 Trading and services 133 132 3 2 Industry and manufacturing 273 249 - 10 Corporate office 4 6 (14) (14) Total 1,268 1,277 (17) 4 Segment turnover (Rs'm) Segment results after tax (Rs'm) 1000 15 10 891 857 900 10 5 800 3 2 5 0 700 0 600 -5 500 -6 400 -10 273 249 300 -15 -14 -14 200 133 132 -20 100 Automotive Trading, Services & Industry & Corporate office 0 Investment Manufacturing Automotive Trading and services Industry and manufacturing HY2015 HY2014 2015 2014 6
ENL COMMERCIAL: PROSPECTS Group’s principal markets remain competitive Pressurising turnover and margins Energetic measures implemented to foster efficiency and contain costs Expect positive results for FY2016 7
ENL Land
ENL LAND: CORPORATE DEVELOPMENTS Amalgamation ENL Land / ENL Investment approved by shareholders at special meetings effective on 01 February 2016 Acquisition of controlling stake in Mall of Mauritius and Motor City Additional investment in NMH 9
REVIEW OF ENL LAND Dec 31, June 30, Rs ‘ m Change 2015 2015 4.2% Acquisition of MOM and Motorcity and investment in Total assets 26,154 25,099 NMH Shareholders’ interests 19,982 20,115 (1.1%) Total equity 20,708 20,606 1% Increase mainly due acquisition of subsidiaries and Net indebtedness 4,044 2,881 40.4% purchase of NMH shares ; consolidation of existing debts of new subsidiaries Net debt to equity 19.53% 13.98% +5.6ppt 10
REVIEW OF ENL LAND Dec 31, DDec 31, Period ended 2015 2014 Change Turnover 1.3% 1,363 1,345 Operating profit 27 7 3.9% Acquisition/disposal of subs and ass cos (1) 43 Profit on sale of land and investments 28 166 Last year included sale of Attacq shares Share of results of ass cos and jointly 168 (28.3%) Lower share of results from associates due to 120 losses incurred by Les Villas de Bel Ombre controlled entities Finance costs (133) (87) 52.4% Linked to increase in indebtedness Profit 39 297 Per share data (Rs) Earnings 0.16 1.29 Dividend 0.66 0.66 Net asset value 85.73 86.99 11
ENL LAND: SEGMENT RESULTS Turnover Results after tax Peirod ended 31 December 2015 2014 2015 2014 Change Change (in Rs’m ) Agriculture 495 519 39 49 (4.6%) (20.7%) Property 837 595 (8) 97 2.5% (108.6%) Land and investment 32 10 8 150 204.1% (94.5%) Total 1,362 1,124 39 296 Segmental turnover (Rs'm) Segmental results after tax (Rs'm) 150 837 900 160 800 140 700 595 120 97 600 519 495 100 500 80 400 49 60 300 39 40 200 8 32 20 100 10 -8 0 0 Agriculture Property Land and investment Agriculture Property Land and investment -20 2015 2014 2015 2014 12
AGRICULTURE SEGMENT Comments on HY results to 31 Dec 2015 Agriculture segment results (Rs'm) Results affected by poor sugar crop and price. 60 49 Sugar accruing: 23,200 tonnes v/s 50 39 25,618 tonnes in HY2015 40 Sugar price : Rs 13,500/tonne v/s Rs 30 14,500 in HY2015 20 10 Better performance by foodcrop and 0 2015 2014 landscaping activities Landscaping – profits of Rs 1.3M for HY16 versus Rs 6M loss LY Potato harvest completed – gross operating profit Rs 13M Expect the cluster to remain profitable for the financial year. 13
AGRICULTURE SEGMENT Overview of sugar cane activities for crop 2015 v crop 2014 Crop 2014 ended in January 2015 Sugar accruing: 23,200 tonnes of sugar v/s 28,940 tonnes in 2014 Unfavorable climatic conditions and extended harvest season 2014 resulted in harvest tonnage 10% lower than budget at 327,300 tonnes Extraction yield : expected final at 9.10% v/s 9.87% last year Expected sugar price of Rs 15,500/tonne (inclusive of Rs2,000 compensation) v/s Rs 14,694 for crop 2014 (also inclusive of Rs 2,000 compensation) Operating costs reduced by 7% over the last three years 43% of MDA and 69% of Savannah harvested mechanically for crop 2015 14
PROPERTY SEGMENT Property segment results (Rs'm) Loss of Rs 8m incurred compared to a profit of Rs 97m 120 97 last year 100 80 Debt contracted to finance acquisition of MOM and 60 new property developments resulted in higher finance 40 20 costs -8 0 2015 2014 -20 Losses incurred by Les Villas de Bel Ombre with Rs19m attributable, compared to Rs 55m profits last year Cogir, incurred losses of Rs15M for semester due to difficult market conditions and pressure on margins
PROJECTS OVERVIEW RESIDENTIAL – ACTUAL PROJECTS • Strong demand for serviced land (Telfair views) • Difficult local market conditions for built up units • L’Estuaire & Les Allees d’Helvetia picking up nicely • Bagatelle Belle Rive relatively slow but growing interests IRS/PDS • General market conditions remain difficult and sales levels are slow OFFICES/COMMERCIAL • Good momentum at Vivea & Bagatelle. • Operating at about full capacity
PROJECTS OVERVIEW RETAIL • Floreal Commercial Centre • Construction as per schedule • ENL Property & Ascencia for a 50%/50% shareholding • Satisfying pre-letting level • Opening November 2016 • Investment Rs 600m and yield 9.2%
PROJECTS OVERVIEW SMART CITY UPDATE • Overall master plan over 1,600 arpents • Advantages: Possibility to sell to foreigners and tax exemptions
PROJECTS OVERVIEW SMART CITY UPDATE • Phase 1 over 450 arpents • Letter of comfort expected in February 2016 • Currently working on letter of intent with consultants • Moka branding and communication to be enhanced
PROJECTS OVERVIEW FUTURE PROJECTS • New Phase at Helvetia • Apartments for young professionals (for rent) • Duplex & apartments under Smart City Scheme • Land plots • Launch date - July 2016 • Apartments @ Telfair Views • Project of 24 units • To be developed on remaining plots of land of Telfair Views • Design being finalised & sales to be launched by July 2016 • Additional morcellement in Telfair zone • New office buildings in Telfair, Bagatelle and Vivea (July 2016)
PROJECTS OVERVIEW IRS/PDS • St Antoine Project (ENL Property) • Project of 100 apartments & 30 land plots (2 phases) • Partnership with Red4 • Letter of approval obtained from BOI • Sales & Marketing • Teasing campaign on SA market starting Feb 2016 • Official launch May 2016
PROJECTS OVERVIEW
PROJECTS OVERVIEW OPPORTUNITIES • Being approached by various local land owners • Opportunities to take development equity stake • Marrakech • NMH Marrakech development being supported • Nairobi • Project proving difficult • Retail Development Fund • Invest in Convenience Shopping Centres both in Mauritius and in the region
LAND AND INVESTMENT SEGMENT Lower profits on sale of land and investments: Land and investment segment results (Rs'm) 150 160 Rs 124m profit recorded on sale of Attacq 140 shares in 2014 - Nil this year 120 100 80 Reduced contribution on results after tax with 60 40 Rs 8m v/s profit of Rs 150m last year 8 20 0 2015 2014 Prospects Agricultural Morcellement La Retraite 2 on 43 arpents Anticipated to be sold by 30 June 2016 with expected net cash flow Rs 110m
REVIEW OF ENL INVESTMENT If ENL Investment had been published, the Financial statements would have been: Dec 31, June 30, Rs ‘ m Change 2015 2015 Consolidation of Bagaprop as subsidiary as from 01st Total assets 30,945 25,390 21.9% July 2015 Shareholders’ interests 7,989 7,771 2.8% Total equity 18,588 17,250 7.8% Net indebtedness 7,994 3,828 108.8% Increase in indebtedness Rs 4.1bn: Acquisition of Bagaprop and investments in NMH Net debt to equity 43% 22.2% 93.7% Existing debts of Bagaprop
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