AGM 15 December 2016

Transcription

1 AGM 15 December 2016

2 CONTENTS KEY EVENTS GROUP FINANCIAL REVIEW STOCK PERFORMANCE REVIEW SUGAR MARKET REVIEW MARKETS AND OPERATIONS OUTLOOK SUSTAINABILITY REPORT 01

3 KEY EVENTS Nov 15 Feb 16 Apr 16 Jun 16 Jul 16 Nov/Dec 16 Dec 16 CEL started operating under new PPA TSCL increased crushing capacity to 160 tch from 90 tch AEnL submitted a new energy project proposal to CEB Raising of Rs 900M from 2 nd issue of notes TPC reached target crushing capacity of 190tch from 170tch Delivery of final residential plots at Balnea & Providencia Completion of new spa, new restaurants and 24 suites at Anahita Golf & Spa Resort Market launch of Wilmotte signature villas at Anahita 02

4 GROUP FINANCIAL REVIEW Income statement Rs' million June 2016 June 2015 % Change Turnover & EBITDA up mainly driven by the contribution of TSCL Turnover 7,850 6,736 17% EBITDA 2,395 2,091 15% PAT 800 1,158-31% Adjusted PAT % PAT attributable to owners of parent % Adjusted PAT attributable to owners of parent % EPS (Rs) % DPS Adjusted PAT down affected by property results and higher finance costs PAT down largely due the non recurrent gain of Rs305M on disposal of investment in FY

5 GROUP FINANCIAL REVIEW PAT by sector and region (figures in Rs M) Jun Jun Higher sugar price Favourable biological assets fair value movements Lower sucrose (Mauritius & Tanzania) Higher operating cost in Mauritius more cane harvested Higher offtake New Power Purchase Agreement Lower tariff on bagasse generated electricity Reduced property inventory available for sale Higher property marketing costs Mauritius Tanzania Kenya Jun-16 Jun-15 Mauritius prior year gain on sale of investment and property results Slight drop in results from Tanzania for reasons mentioned above Increasing profitability for Kenyan operations (Q3 PAT Rs31M) 04 5

6 GROUP FINANCIAL REVIEW Balance sheet Rs' million Jun-16 Jun-15 Non current assets , ,399 restated Current assets 5,253 5,090 Total assets 29,045 26,489 Equity 19,291 19,469 Liabilities 9,754 7,020 Total Equity & liabilities 29,045 26,489 Net asset per share (Rs/share) , , , Evolution of DEBT, EBITDA and DEBT/EBITDA 3, ,976 2,091 5, , Explained by the consolidation of TSCL & goodwill arising on acquisition of the latter New debt for acquisition of TSCL & consolidation of the existing debt of TSCL 0 Jun 2013 Jun 2014 Jun 2015 Jun 2016 Debt Ebitda Debt/Ebitda

7 STOCK PERFORMANCE REVIEW 06

8 SUGAR MARKET REVIEW Global sugar surplus / deficit Deficit cycle confirmed, keeps sugar prices above 20 cents European prices recovering on the back of lower stocks Remunerative prices in deficit sugar markets of Tanzania and Kenya Mauritian prices recovering after 2 years of support from SIFB 07

9 ALTEO SUGARS

10 MARKETS & OPERATIONS OUTLOOK SUGAR MAURITIUS Our growing and milling operations are expected to register an average sugar cane crop and better sucrose level than in 2015 although still lower than the long term mean An improved EU sugar market should translate into better prices for the year The milling sector should also benefit from higher special sugar orders for the crop 09

11 ALTEO ENERGY

12 MARKETS & OPERATIONS OUTLOOK ENERGY MAURITIUS Our energy operations are expected to be negatively impacted in the second half of the financial year by the recent and sudden hike in coal prices until tariffs are adjusted through their indexation mechanism 2 x 45MW project: ongoing discussions with the authorities to conclude a Power Purchase Agreement (PPA) 11

13 ALTEO PROPERTY & HOSPITALITY

14 MARKETS & OPERATIONS OUTLOOK PROPERTY MAURITIUS The re-opening of Anahita Golf & Spa Resort (previously Anahita The Resort) since October 1 st 2016 is expected to positively impact the cluster results in the second half of the year The recent market launch of the Anahita high-end northern parcels should bring renewed dynamism on the property operations in the medium term Completion of other residential developments (Balnea and Providencia) and land sales will positively impact results for the year 13

15 ALTEO INTERNATIONAL

16 MARKETS & OPERATIONS OUTLOOK SUGAR INTERNATIONAL TANZANIA Above average cane yields are anticipated and strong results are expected in the year sustained by higher world market prices and larger sales volume due to increased capacity KENYA Operations are expected to show significantly improved results in the year as TSCL ramps up production and sales and benefits from a favourable price environment 15

17 SUSTAINABILITY REPORT

18 ENVIRONMENTAL & SOCIAL RESPONSIBILITY CSR Mauritius: contributions to Fondations Joseph Lagesse and Ciel Nouveau Regard and a number of other socio-economic projects (poverty alleviation, education, sports & disabilities) Anahita Centre for Excellence: socio-economic and environmental projects targeting nearby villages (training programmes, local infrastructure, education & community projects) CSR Tanzania: contributions to NGO FT Kilimanjaro (basic health care, education) CSR Kenya: contribution to various projects in partnership with local communities (local infrastructures, education, health, environment) 17

19 MISSION, VISION & VALUES Wide in-house consultation exercise on an In-depth review of our Mission, Vision and Values which is soon to be released Identified the specific attributes to Alteo DNA around : People Development Strategic Partnerships Innovative Thinking Market Focus Operational Excellence Group Code of Ethics in construction after undertaking deep internal risk assessment 18

20 HUMAN RESOURCES

21 HUMAN RESOURCES Group s Ongoing Objective: Capability Building and Employee Development Setting up of an Executive Team and a forum for exchange and cross fertilization of ideas Soon launching a Graduate Development Programme and a Management Leadership Development centres In Mauritius: General Leadership and Communication as well as Continuous Development Programmes In Tanzania: Building on the job leadership skills at different levels In Kenya: Priority on key subject matters such as Health and Safety, security and functional upskilling 20

22 Thank you!

23 DISCLAIMER This presentation has been prepared exclusively for the purpose of the annual general meeting held on this 15 th December 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 ( 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 21