ENL Group Investor meeting 15 February 2016 Agenda HY2016 - - PowerPoint PPT Presentation

ENL Group

Investor meeting

15 February 2016

• HY2016 performance and outlook
• ENL Commercial
• ENL Land
• ENL Lifestyle
• ENL Limited

Agenda

ENL Commercial

4

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

ENL COMMERCIAL: DEVELOPMENTS

REVIEW OF ENL COMMERCIAL

5 Rs ‘ m Dec 31, 2015 June 30, 2015 Change Total assets 2,289 2,123 7.8% Shareholders’ interests 716 747 (4.1%) Total equity 716 747 (4.1%) 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

Period ended Dec 31, 2015 Dec 31, 2014 Change Turnover

1,268 1,277 (0.7%)

Operating profit

17 23 (26.1%)

(Loss)

(17) 4

Per share data (Rs)

Earnings

(0.59) (0.12)

Dividend

0.45 0.60

Increase in total assets and net indebtedness due to: Purchase of immovable properties Higher stockholding costs Results impacted negatively by lower vehicles sales following shift in vehicles market towards second hand Mitigated by better sales to the hospitality industry Losses incurred by associated company, Cogir, due to sustained pressure on margins

6

Turnover Results after tax

Period ended 31st 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

• 6

3

• 14

5 2 10

• 14
• 20
• 15
• 10
• 5

5 10 15

Automotive Trading, Services & Investment Industry & Manufacturing Corporate office

Segment results after tax (Rs'm)

HY2015 HY2014

857 133 273 891 132 249 100 200 300 400 500 600 700 800 900 1000 Automotive Trading and services Industry and manufacturing

Segment turnover (Rs'm)

2015 2014

REVIEW OF ENL COMMERCIAL

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

9

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

REVIEW OF ENL LAND

10 Rs ‘ m Dec 31, 2015 June 30, 2015 Change Total assets 26,154 25,099 4.2% Acquisition of MOM and Motorcity and investment in NMH Shareholders’ interests 19,982 20,115 (1.1%) Total equity 20,708 20,606 1% Net indebtedness 4,044 2,881 40.4% Increase mainly due acquisition of subsidiaries and purchase of NMH shares ; consolidation of existing debts

• f new subsidiaries

Net debt to equity 19.53% 13.98% +5.6ppt

11 Period ended Dec 31, 2015 DDec 31, 2014 Change Turnover 1,363 1,345 1.3% 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 controlled entities 120 168 (28.3%) Lower share of results from associates due to losses incurred by Les Villas de Bel Ombre 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

REVIEW OF ENL LAND

ENL LAND: SEGMENT RESULTS

12

Turnover Results after tax

Peirod ended 31 December (in Rs’m)

2015 2014

Change

2015 2014

Change

Agriculture 495 519

(4.6%)

39 49

(20.7%)

Property 837 595

2.5%

(8) 97

(108.6%)

Land and investment 32 10

204.1%

8 150

(94.5%)

Total 1,362 1,124 39 296

495 837 32 519 595 10

100 200 300 400 500 600 700 800 900

Agriculture Property Land and investment

Segmental turnover (Rs'm)

2015 2014 39

• 8

8 49 97 150

• 20

20 40 60 80 100 120 140 160

Agriculture Property Land and investment

Segmental results after tax (Rs'm)

2015 2014

AGRICULTURE SEGMENT

13

39 49 10 20 30 40 50 60 2015 2014

Agriculture segment results (Rs'm)

Comments on HY results to 31 Dec 2015

Results affected by poor sugar crop and price. Sugar accruing: 23,200 tonnes v/s 25,618 tonnes in HY2015 Sugar price: Rs 13,500/tonne v/s Rs 14,500 in HY2015 Better performance by foodcrop and landscaping activities Landscaping – profits of Rs 1.3M for HY16 versus Rs 6M loss LY Potato harvest completed – gross

• perating profit Rs 13M

Expect the cluster to remain profitable for the financial year.

AGRICULTURE SEGMENT

14

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

PROPERTY SEGMENT

• 8

97

• 20

20 40 60 80 100 120

2015 2014

Property segment results (Rs'm) Loss of Rs 8m incurred compared to a profit of Rs 97m last year Debt contracted to finance acquisition of MOM and new property developments resulted in higher finance costs 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

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

PROJECTS OVERVIEW

LAND AND INVESTMENT SEGMENT

8 150

20 40 60 80 100 120 140 160

2015 2014

Land and investment segment results (Rs'm)

Lower profits on sale of land and investments: Rs 124m profit recorded on sale of Attacq shares in 2014 - Nil this year Reduced contribution on results after tax with Rs 8m v/s profit of Rs 150m last year Prospects Agricultural Morcellement La Retraite 2 on 43 arpents Anticipated to be sold by 30 June 2016 with expected net cash flow Rs 110m

Rs ‘ m Dec 31, 2015 June 30, 2015 Change Total assets 30,945 25,390 21.9% Shareholders’ interests 7,989 7,771 2.8% Total equity 18,588 17,250 7.8% Net indebtedness 7,994 3,828 108.8% Net debt to equity 43% 22.2% 93.7%

REVIEW OF ENL INVESTMENT

If ENL Investment had been published, the Financial statements would have been:

Consolidation of Bagaprop as subsidiary as from 01st July 2015 Increase in indebtedness Rs 4.1bn: Acquisition of Bagaprop and investments in NMH Existing debts of Bagaprop

Period ended Dec 31, 2015 Dec 31, 2014 Change Turnover 4,135 3,618 14.3% Operating profit 503 457 10.1% Exceptional items 105 51 105.9% Share of results of ass cos and jointly controlled entities 247 292 (15.4%) Finance costs (298) (153) 94.8% Taxation (64) (54) Profit for the period 493 593 (16.8%) If ENL Investment had been published, the Financial statements would have been:

Better operational performance of Rogers and positive impact from acquisition of Bagaprop Share of results of associates in line with last year, which included Bagaprop Higher finance charges linked to increase in indebtedness

REVIEW OF ENL INVESTMENT

27

PERFORMANCE OF ROGERS

Aviation: Good results of GSA and agency activities dampened by development costs of online TO business Financial services: Consolidation of global business activities and improved results from Swan Group Hospitality: Improved performance of VLH and but lower profits of NMH Logistics: Better results attributable to good performance of freight forwarding business and shipping operations, but lower performance of transportation activities Period ended 31st December Turnover Profit after tax (in Rs’m) 2015 2014 2015 2014 Rogers 4,131 3,612 381 501

28 Period ended 31st December Turnover Profit after tax (in Rs’m) 2015 2014 2015 2014 Rogers

4,131 3,612 381 501

Property: Consolidation of Bagaprop, increase in average rental at Bagatelle and increase in rental space with newly opened Home & Leisure node, but higher finance cost with integration of indebtedness from Bagaprop. Real estate and agribusiness: Negative influence of low sugar price and depressed real estate market. Last year results included a significant land sale transaction at Villas de Bel Ombre. Technology: Good contribution of Axa and broadband business offset by termination of some contracts and delayed materialisation of projects in IT infrastructure

PERFORMANCE OF ROGERS

PERFORMANCE OF ASSOCIATES

29

Period ended 31 December

Turnover Profit after tax

(in Rs’m)

2015 2014 2015 2014

Avipro

1,029 992 109 85

Madco

4,225 4,161 297 228

NMH

4,568 4,858 34 358

Avipro and Madco carried on their growth momentum NMH Better operational results However, net profits were reduced by the recognition of higher finance costs, tax charges and lower fair value gains on investment properties at 30 September 2015

ENL Lifestyle

REVIEW OF ENL LIFESTYLE

31 Period ended (Rs’m) Dec 31, 2015 Dec 31, 2014 Ocean Basket Turnover 54 50 8% Operating profit 10 8 25% PBT 7 4 75% Covers - Ocean Basket 105,380 95,794 10% Savinia Bistrot Turnover 17 2 N/c Operating profit 1 (1) N/c PBT (1) (3) N/c Covers - Savinia Bistrot (Opened Dec 14) 22,454 3,577 Voila Bagatelle Turnover 57 46 24% Operating profit 12 5 100% PBT 7 1 100% Occupancy 70.1% 68.9% +1.20ppt

Ocean basket Turnover increased due to higher number

• f covers which resulted in PBT of Rs 7m

Savinia Bistrot Slow growth after 1 year of operations Voila Bagatelle Higher turnover explained by improved

• ccupancy and good performance of Voila

meetings

ENL Limited

ENL LIMITED: CORPORATE DEVELOPMENTS

33 Acquisition of controlling stake in Bagaprop, Gardens of Bagatelle, Motor City and Mall of Mauritius Amalgamation ENL Land / ENL Investment approved by shareholders at special meetings effective on 01 February 2016 Additional investment in NMH

34 Rs ‘ m Dec 31, 2015 June 30, 2015 Change Non-current assets 47,844 41,784 Consolidation of Bagaprop, Gardens of Bagatelle, MOM and Motor City (previously JVs’) Current assets 7,065 6,624 6.7% Total assets 54,936 48,408 13.5% Shareholders’ interests 16,496 16,481 Non-controlling interests 17,282 16,230 Total equity 33,778 32,711 Non-current liabilities 13,259 9,017 47% Mainly additional debts Current liabilities 7,898 6,680 18.2% Total equity and liabilities 54,936 48,408 Net asset value per share (Rs) 77.14 77.07 Funding of various acquisitions and developments (Rs3bn) Debts of new subsidiaries at June 2015 (Rs2.5bn) Net indebtedness 14,783 9,291 Net debt to equity 43.76% 28.40%

REVIEW OF ENL LIMITED

REVIEW OF ENL LIMITED

35 Rs ‘ m Dec 31, 2015 Dec 31, 2014 Change Turnover 6,956 6,355 9.4% Good performance of all segments except agriculture. Newly acquired subsidiaries also contributed to the better

• perational results

Operating profit 561 463 21.1% Profit on sale of land and investments 35 213 (83.5%) Last year included sale of non strategic land and investment Acquisitions related 128 1 Reorganisation costs (29) Share of results of ass cos and jointly controlled entities 250 298 (16.1%) Better results of Avipro/Madco. Last year included results of Bagaprop and MOM Finance costs (522) (326) 60.1% Linked to increase in debts Income tax expense (75) (64) Profit for the period 377 555 (27.1%) Earnings per share (Rs) 0.51 1.00 Dividends per share 0.39 0.39