FINAL RESULTS ANNOUNCEMENT. Year ended 28 February 2013

Transcription

1 FINAL RESULTS ANNOUNCEMENT Year ended 28 February 2013 WILDERNESS HOLDINGS AUDITED YEAR END RESULTS

2 Agenda Welcome & board changes Parks Tafa, Chairman Review of the period to Feb 2013 Keith Vincent, Acting CEO Final results Outlook and prospects Derek de la Harpe, CFO Keith Vincent, Acting CEO Questions 2

3 Board changes Board realigned in order to: o Further support our operations in Botswana o Improve executive capacity Changes made: o Parks Tafa appointed Chairman o Michael Tollman appointed Deputy Chairman o Malcolm McCulloch continues as non-executive Director o Andy Payne retired from Board and his post as CEO o Keith Vincent (formerly COO) acting as CEO while a substantive replacement is appointed o Russel Friedman and Dave Van Smeerdijk retired from the Board Russel continues to support our non-profit activities Dave continues as head of sales and marketing 3

4 Overview of the business Safari operations: 59 camps, beds, in eight countries o DumaTau (Botswana) re-built o Two new camps in Odzala National Park, Republic of Congo (management contract under the Wilderness Collection) o Closure of three camps in Namibia: Skeleton Coast, Kulala Wilderness and Palmwag Air operations: 42 aircraft operated by Wilderness Air Travel shops: six offices in four countries Employment: people 4

5 Trading environment Improvement in the overall economic climate mainly driven by recovery in the USA (our largest source market) Demand out of Europe is improving slowly but: o Continues to be soft, and; o Subject to shocks Exchange rates: o USD:ZAR in our favour for most of the period Inflation running at 5.5% to 7.5% across the countries 5

6 Our response to the climate Realignment of certain business units to lower demand: o Namibia o Zambia o Merger of Zambia and Zimbabwe head office structures Temporary camp closures in green season Continued investment in initiatives to improve productivity o Flying business, especially circuits o Technology: Wilderness Window lowers our cost of acquisition Consumer focused website & search engine optimisation Continued strong focus on marketing and sales efforts o Six countries special SA residents programme Investment in service delivery and the relevance of the Wilderness offering (want to be the first to fill and the last to empty) o Virtual training platforms o Wilderness TV Brand development, including: o Brand simplification (to two trading brands: Wilderness Safaris and Wilderness Collection) o Connecting with customer (on social network platforms 6

7 Non-financial achievements Significant improvements in product quality Numerous awards for quality and sustainable tourism products o Travel and Leisure Global Vision Award for Leadership o 2012 Integrated Report ranked 5 th in the World in Corporate Register Reporting Awards Further progress in implementing our 4Cs sustainability platform o Full solar installations at Mombo, Duma Tau and Kings Pool Expected saving in diesel consumption = litres (P3 million) p.a. o Limited solar installation at Kulala Desert Lodge Increased investment in human capital o Innovations in training and quality management Capex of P64 million: all facilities are properly maintained o Rebuild of Duma Tau 7

8 Financial highlights Bednight sales decreased by 3.7% on prior period o Normalised 1% increase Revenue per bednight increased by average of 6%, in source currency terms Source currency turnovers (except ZAR) increased: o US$ by 6.4% Reported turnover has increased by 13% to P1 205 million Reported EBITDA is P109 million, 40% up on prior period Profit after tax of P28 million, up 238% on prior year 8

9 Revenue drivers Our business has three major revenue drivers: Bednight sales Revenue per bednight Exchange rates 9

10 Total Bednight Sales - All Prior Prior Prior Actual The above totals when applied against available beds show an increase in overall bed capacity utilisation from 45% to 48.7%. This is because of reduced capacity. 10

11 Bednight sales by country All camps Bednights Botswana Namibia Seychelles South Africa Zambia Zimbabwe

12 Total bednight sales - Normalised Prior Prior Prior Actual

13 Bednight sales by country - Normalised Bednights Botswana Namibia Seychelles South Africa Zambia Zimbabwe

14 Millions Source currency turnovers % 1.1% 10.4% -0.4% 3.8% 8 7 United States Dollar Euro Botswana Pula Namibian Dollar South African Rand Cumulated February FY 2013 Actual Cumulated February FY 2012 Actual 14

15 Foreign exchange rates 3 Years Foreign Exchange History USD-ZAR- IS 3 Years Foreign Exchange History ZAR- BWP-IS <<------TRADING WORSENS Budget % <<------TRADE IMPROVES Budget % Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 1 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 15

16 Turnover changes unpacked 2013 change 2012 Group turnover (BWP000s) 1,205,074 13% 1,066,243 Total bednight sales 182, % 189,871 Revenue per bednight (Pula) 6,594 17% 5,616 Average exchange rate (simple) % 6.94 Average revenue per bednight (US$) 855 6%

17 Abridged income statement BWP 000s Change Revenue % EBITDA % Impairment losses (14 000) (4 371) Profit on sale of business Depreciation and amortisation (46 982) (45 718) Operating profit % Net finance costs (8 205) (5 021) Unrealised forex loss on loans (7 260) (8 207) Share of profits of associates 66 (492) Profit before tax % Taxation (4 816) (7 824) Profit after tax % EPS diluted (thebe) % HEPS basic and diluted (thebe) % 17

18 Abridged balance sheet BWP 000s Assets Non current assets Current assets Total assets Equity and liabilities Capital and reserves Non current liabilities Current liabilities Total equity and liabilities

19 Cash flow extracts BWP 000s Cash flow from operating activities Profit before tax Adjustment for non-cash items Changes in working capital Cash generated from operations Net finance costs (8 205) (5 021) Taxation paid (21 229) (7 026) Net cash generated from operating activities Cash used in investing activities (66 253) (47 469) Net cash used in financing activities (44 960) (28 016) Decrease in cash and cash equivalents (33 695) (8 111) Unrealised exchange gains on foreign cash balances Cash and equivalents at beginning of period Cash and equivalents at end of the period

20 Ratio analysis Detail Gross profit 42.70% 43.32% EBITDA 9.03% 7.29% Effective tax rate 15% 49% Return on equity 8% 2% Debt : equity 45% 44% Interest cover (times) 6 6

21 Dividends A dividend of 4 thebe per share has been declared o Payable on or about 24 June 2013 o To shareholders registered on 21 June

22 Summary and outlook The economic climate remains uncertain with the USA improving by Europe still depressed Forward booking sheets show impressive improvements in forward bednight sales Cash generation continues - noting: o All facilities are fully maintained o Dividends maintained albeit now according to stated policy Innovation continues in the business: o Technology platforms o People development (Wilderness Business School and the virtual training environment) We are cautiously optimistic about the outlook: o Re-organised and positioned well for growth o Trading conditions in Zimbabwe continue to improve o Strong balance sheet and cash reserves (ungeared) o Exchange rate remains in our favour Now entering our busy season o Botswana camps are full o Improving occupancies elsewhere 22

23 Questions? 23