ENL GROUP Analyst meeting 7 th October 2016 AGENDA The Group - - PowerPoint PPT Presentation

ENL GROUP

7th October 2016

Analyst meeting

The Group

AGENDA

Financials Focus areas Growth areas

The Group

ENL LIFESTYLE

Group Structure

ENL LIMITED

ENL COMMERCIAL# ENL LAND*

ENL Agri ENL Property Rogers*

* Listed on SEM 10 # Listed on SEM Listed on DEM Associates Food & Allied Group Tropical Paradise Co New Mauritius Hotel *

Focus areas

Agro-industry Commerce and industry Financial Services Hospitality Land & investments Lifestyle Logistics Property Sectors Agribusiness Automotive Financial Services Hotels Land owner Business hotels Logistic solutions Development Agro-industry Construction Technology Travel Venture capital Restaurants Investments Manufacturing Trading Leisure Business incubator Services Activities ENL Agri ENL Commercial Rogers capital VLH ENL Land Voila Bagatelle Velogic ENL Property CSBO Cogir Global business Rogers Aviation La Turbine Ocean Basket Ascencia Case Noyale EIS Catalyst Savinia Bistrot Villas de Bel Ombre Asset Management Mokaz Moka City Key investments Food & Allied Swan New Mauritius Hotels Air Mauritius Mautourco White Sands Blueconnect

Guiding principles

Raising dividends annually Increasing shareholders’ interests Controlling the level of indebtedness EQUILIBRIUM

Main drivers 2016

Amalgamation of ENL Land and ENL Investment Acquisition of a controlling stake in Bagaprop Spurring development of property cluster Strengthening of position into New Mauritius Hotels Development of financial services Regional expansion of logistics Tackling turnaround of commerce and industry cluster Pursuing niches for development of lifestyle activities

Over

6,800

employees TOTAL GROUP ASSETS

Rs 57 bn

2015: 48 bn

PROFIT AFTER TAX

Rs 875 m

2015: Rs 1.4 bn GROUP TURNOVER

Rs 13.4 bn

2015: 12.3 bn PROFIT ATTRIBUTABLE TO EQUITY HOLDERS

Rs 236 m

2015: 536 m EQUITY HOLDERS INTERESTS

Rs 16 bn

2015: Rs 16 bn GEARING

31%

2015: 22%

Highlights

Corporate responsibility

ENL focuses on wellbeing of communities within our areas of activity ENL Foundation geared towards prioritising vulnerable children environment poverty alleviation socio-economic development Rogers Foundation concentrates on education and actions towards coastal protection

Focus areas

Agro- industry

Agro-industry

Developments in FY2016 Disposed of 10% in Food and Allied group Performance in FY2016 Cane business: Pursuing with increased mechanisation, efficient use of resources and review of maintenance programs and transport Non-sugar activities at ENL Agri is profitable: poultry, landscaping Very good performance of Food and Allied Group with profit attributable to the shareholders of Rs 633m Targets for FY 2017 Sugar accruing for crop 2016 expected to be higher than last year: 27,000 tonnes v 23,000 in 2015 Sugar price expected at Rs 15,300 per tonne + Rs 2,000 per tonne for cane by-products New poultry building completed Pursuing innovative projects, some of which look very promising

Turnover Profit after tax 2016 2015 Change 2016 2015 Change Agro-industry 945 937 1% 249 258 (3%)

Commerce and Industry

Commerce and industry

Developments in FY2016 Became authorised dealer for Peugeot Acquisition of a 50% stake in JMD, distributor of aluminium profiles Axess discontinued some loss making lines Shops opened at Home & Leisure: Grewals and Maison & Co Performance in FY2016 One off restructuring costs at Axess and one-off costs in Grewals and Box Reduced volume of sunglasses exported for Plastinax resulted in a loss Higher finance costs linked to increase in debts due to high stock holding costs Targets for FY 2017 Renew with profitability Project to refinance buildings

Turnover Profit after tax 2016 2015 Change 2016 2015 Change Commerce and industry 3,489 3,394 3% (54) (13) (100%)

Financial services

Financial services

Developments in FY2016 Amalgamation of Consilex and Kross Border Acquisition of management company River Court Administrators Launch of Cloud Platform, Cloud 24 Performance in FY2016 Costs relating to the merger of global business activities Improved results from Swan Group Targets for FY 2017 Regrouping of Financial services and Technology under FinTech Setting up of Global Business operation in Seychelles Development of wealth management services New technology offerings

Turnover Profit after tax 2016 2015 Change 2016 2015 Change Financial services 627 414 51% 127 140 (9%)

Hospitality

Hospitality

Developments in FY2016 Subscription to NMH preference shares and acquisition of 5.82% additional stake in equity (holding 29.87%) for a total of Rs 1.7bn Performance in FY2016 Enhanced operational PAT on the back of rate increases and higher occupancy Losses at NMH due to reorganisation costs Targets for FY 2017 NMH Debt reduction plan well advanced Strategic initiatives about to be confirmed Expect better contribution to profits from NMH Acquisition of Tamarin hotel Upgrading of Domaine de Bel Ombre experiences, including second golf course

Turnover Profit after tax 2016 2015 Change 2016 2015 Change Hospitality 2,593 2,264 15% 71 178 (60%)

Land and Investment

Land and Investment

Includes mainly the agricultural land of the group Developments in FY2016 101 arpents of new conversion permits obtained; fair value gains recognised in property Performance in FY2016 Last year included sale of Attacq shares (Rs 234m) Higher finance costs in ENL Land resulting from acquisitions Sale of agricultural morcellement at an average of Rs 2.5m / arpents over 43 arpents Targets for FY 2017 Additional conversion of land Sale of a small portion of non-strategic land

Turnover Profit after tax 2016 2015 Change 2016 2015 Change Land and investments 40 53 (25%) (356) 5 (100%)

Optimised structures to permeate innovation

Fund of Rs 760m over 5 to 8 years 2 independent directors with wide ranging international experience First investment expected to be completed by end of 2016 Branding exercise ongoing First incubator in Mauritius Permeate innovation into ENL, Moka and Mauritius 3 starts ups lined up to begin the incubation in November Tap into the National incubation fund of Rs 50m Develop corporate partnerships for funding

Land and Investment

Logistics

Logistics

Developments in FY2016 Expansion of Velogic in Kenya with the acquisition of Gencargo Services and Gencargo (Transport) Performance in FY2016 Turnaround of freight forwarding operations in France Contribution of newly bought Kenyan businesses Lower earnings from transport services Targets for FY 2017 Enhancing systems, processes and broadening of service offering in Kenya Should benefit from ongoing port development plan scheduled to be completed in 2017 2016 2015 Change 2016 2015 Change Logistics 3,134 2,911 8% 83 27 100% Year ended June 30 (in Rs’m) Turnover Profit after tax

Lifestyle

Lifestyle

2016 2015 Change 2016 2015 Change Lifestyle 265 228 16% 5 4 25% Year ended June 30 (in Rs’m) Turnover Profit after tax Performance in FY2016 Higher number of covers at Ocean Basket Improved occupancy at Voila Bagatelle and good performance of Voila meetings Targets for FY 2017 Ocean Basket opening at Centre Commercial Phoenix end of 2016

Property

Property

Developments in FY2016 Fundraising of Rs 1bn by Ascencia and acquisition of 34.9% in Bagaprop and 100% of Gardens of Bagatelle Acquisition of 50% of Mall of Mauritius (holding 100%) Opening of Bagatelle Home & Leisure Uplifting of Centre Commercial Phoenix Launch of So’Flo and PDS at Saint Antoine Completion of infrastructure works at Telfair Delivery of Telfair Views Morcellement Ongoing development at Vivea Business Park

Property

Performance in FY2016 Consolidation of Bagaprop as subsidiary, increased revenue reflecting success of commercial centres, contribution of Home & Leisure Fair value gains of Rs 627m, including Rs 379m from commercial properties Targets for FY 2017 Enhance property value chain through new development model Launch of Moka Smart City and respective projects Value knowledge and experience in new projects in or outside the land bank Complete So’Flo for opening in September 2017 Improve tenant mix and occupancy levels across retail portfolio 2016 2015 Change 2016 2015 Change Property 2,270 2,066 10% 802 776 3% Year ended June 30 (in Rs’m) Turnover Profit after tax

Property

LAND BANK OWNER (Smart City)

• Undertake infrastructure
• Sell serviced land for cash

DEVELOPMENT FUND

• Acquire land and undertake

developments of yielding assets

• Exit after 3-5 years

Smart City incentives 15 years development Low risk / low return Target effective date 1st January 2017 Higher risk / Higher return Target effective date 1st July 2017 Target effective date 1st July 2017

OFFICE FUND

• One of the exit platforms

for the development fund

• Generate recurring cash

flows

NEW DEVELOPMENT MODEL

Master plan over 1,600A Phase 1 over 450A

Moka Smart City

4,900 sqm Construction: January 2017 to July 2018 Additional building contemplated

Property

Helvetia Phase 4

Project area approximately 22 arpents Combination of land plots and apartments Phase 1 32 plots 8 duplexes 38 apartments Target launch January 2017

Property

Courchamps

Attract young professionals within Moka & build up dynamism within the region Morcellement over 19.75 arpents Phase 1 (37 plots) – Fully sold Phase 2 (43 plots) – Launching October 2016 Infrastructure works: October 2016 to May 2017

Property

Telfair CBD

Start of construction of first building in November 2016 Size: 4,373 sqm Mix of offices and commercial space Pipeline with high profile firms: Financial Services Bio-Medical industry Other developments Student accommodation in partnership with south African operator Construction starting Jan 2017

Property

St Antoine Private Residences

Overall project Project of 100 apartments & 30 land plots (2 phases) Obligation to sell 25% to Mauritians now waived Project value of Rs 2.1Bn & profit of Rs 320M Phase 1 - 50 units & 30 plots of land Pre-sales progressing well

Growth areas

Growth areas

ENERGY Sustainable and leverageable projects Requirement in Smart City guidelines Photovoltaic projects for shopping malls Waste recycling EDUCATION Leverage location of Moka Create an education hub Investment in Charles Telfair Institute Schools built on ex-ENL lands HEALTHCARE Leverage on medical facilities existing in Moka Explore paramedical

• pportunities

Financials

ENL Commercial

ENL COMMERCIAL

Increase in indebtedness of Rs 163m to: Finance higher stock holding costs at Axess Buy new land for Nabridas’

• perations

Rs ‘ m June 30, 2016 June 30, 2015 Change Total assets 2,326 2,123 10% Shareholders’ interests 695 747 (7%) Total equity 695 747 (7%) Net indebtedness 1,009 846 19% Gearing ratio 59.21% 53.11% +6.1 ppt Per share data (Rs) Net asset value 23.83 25.62

ENL COMMERCIAL

One off restructuring costs at Axess and one-

• ff costs in Grewals and Box

Reduced volume of sunglasses exported for Plastinax resulted in a loss Higher finance costs linked to increase in debts Losses incurred by associated company, Cogir, due to sustained pressure on margins Rs ‘ m June 30, 2016 June 30, 2015 Change Turnover 2,731 2,616 4% Operating profit 36 51 (29%) (Loss) (41) (9) (100%) Per share data (Rs) Earnings (1.42) (0.31) Dividend 0.45 0.90

ENL COMMERCIAL

Turnover Profit after tax Year ended June 30 (in Rs'm) 2016 2015 Change 2016 2015 Change Automotive 1,958 1,833 6.8% 11 19 (42.1%) Trading and services 251 267 (6.0%) (1) (8) 87.5% Industry and manufacturing 513 507 1.2% (26) 5 (100.0%) Corporate Office 9 10 (10.0%) (26) (24) (8.3%) 2,731 2,616 4.4% (42) (9) (100.0%)

ENL Land

ENL LAND

Movement in net indebtedness explained by: First-time consolidation of news subs (Bagaprop & GOB Rs 2.3bn, Rogers Rs 4.3bn) Loans contracted for acquisition of NMH shares, Mall of Mauritius, Gardens of Bagatelle Loans to invest into construction / renovation of malls Rs‘m June 30, 2016 June 30, 2015 Change Non-current assets 47,633 23,181 Current assets 6,991 1,918 Total assets 54,624 25,099 Shareholders’ interests 25,708 20,115 28% Non-controlling interests 9,592 492 Total equity 35,300 20,606 71% Non-current liabilities 11,465 2,291 Current liabilities 7,859 2,201 Total equity and liabilities 54,624 25,099 Net indebtedness 12,590 2,881 100% Gearing 26.29% 12.27% 14.02ppt NAV per share 86.4 86.7

ENL LAND

* Results for the year ended 30 June 2016 comprise seven months pre-amalgamation and five months post-amalgamation # Pro-forma results for year ended 30 June 2015 included to provide a level of comparison

Year ended - Rs‘m Jun 30, 2016 Jun 30, 2015 Proforma Jun 30, 2015 Change v/s proforma Turnover 6,330 2,315 5,864 8% Includes revenue of Rogers Operating profit 522 5 98 100% Mainly operational profits of Rogers (Loss)/Profit on sale of land and investments (66) 273 293 (100%) Last year included sale of Attacq shares Others (6) 24 (11) 45% Fair value gain on investment properties 627 207 377 66% Mainly on Ascencia and land conversion Share of results of associated companies and jointly controlled entities 173 262 591 (71%) Includes Food & Allied group and NMH Excludes Bagaprop which became a subsidiary Finance costs (556) (189) (360) (54%) Increase in net indebtedness Profit before taxation 695 582 989 (30%) Income tax expense (59) (11) (69) 15% Profit after tax 636 571 920 (31%)

Results are not comparable as 2016 are post-amalgamated results

ENL LAND

Turnover Profit after tax 2016 2015 Change 2016 2015 Change Agro-industry 787 707 11% 126 12 100% Property 1,541 756 100% 423 309 37% Land and investments 50 41 22% 76 259 (71%) Hospitality and leisure 1,263

• 100%

(35)

• 0%

Logistics 1,533

• 100%

16

• 0%

Financial Services 357

• 100%

46

• 0%

Commerce and Industry 800 812 (2%) (16) (10) (63%) Total 6,330 2,315 100% 636 571 11%

ENL Limited

ENL LIMITED

Rs ‘ m June 30, 2016 June 30, 2015 Change Comments Non-current assets 48,532 41,756 16% Acquisition of Bagaprop and other subsidiaries Current assets 8,381 6,652 26% Additional holding in NMH Total assets 56,913 48,408 18% Shareholders’ interests 16,472 16,481 0% Non-controlling interests 17,529 16,230 8% Total equity 34,001 32,711 4% Non-current liabilities 13,820 9,017 53% Mainly additional debts from acquisitions and new subsidiaries Current liabilities 9,092 6,680 36% Total equity and liabilities 56,913 48,408 18% Net asset value per share (Rs) 77.03 77.07 0% Net indebtedness (Rs'm) 15,386 9,290 66% Gearing (%) 31.15% 22.12% 9.03 ppt

ENL LIMITED

Rs ‘ m June 30, 2016 June 30, 2015 Change Comments Turnover 13,363 12,266 9% Good performance of most segments Operating profit 957 683 40% Contribution of new subsidiary Bagaprop Fair value gain on revaluation of investment properties 627 376 67% Mainly on Ascencia and land conversion Profit on sale of land and investments (32) 392 (100%) Last year included sale of Attacq shares Share of results of ass cos and jointly controlled entities 314 731 (57%) Bagaprop now subsidiary Bargain purchase 129

• On Bagaprop / MOM

Others (14) (31) 55% Finance costs (971) (750) (29%) Linked to increase in debts Income tax expense (135) (143) 5% Profit after tax 875 1,357 (36%) Earnings per share (Rs) 1.11 2.51 (56%) Dividends per share (Rs) 0.78 0.78

ENL LIMITED

Turnover Profit after tax 2016 2015 Change 2016 2015 Change Agro-industry 945 937 1% 249 258 (3%) Commerce and industry 3,489 3,394 3% (54) (13) (100%) Property 2,270 2,066 10% 802 776 3% Land and investments 40 53 (25%) (356) 5 (100%) Lifestyle 265 228 16% 5 4 25% Hospitality and leisure 2,593 2,264 15% 71 178 (60%) Logistics 3,134 2,911 8% 83 27 100% Financial services 627 414 51% 127 140 (9%) Corporate office

• (53)

(18) (100%) Total 13,363 12,266 9% 875 1,357 (36%)

Thank You

ENL GROUP

7th October 2016

Analyst meeting

Further information on www.enl.mu/investors