14 February 2019 Presentation of Mid-Year Results. Analyst Meeting P.1

Transcription

1 14 February 2019 Presentation of Mid-Year Results Analyst Meeting P.1

2 We are active in more than 280 companies Team Members Shareholders 3 COMPANIES ON THE SEMSI 5 JOINT VENTURES 9 LISTED COMPANIES 28 ASSOCIATE COMPANIES 255 SUBSIDIARIES A presence in 23 countries Divided in 9 clusters P. 2

3 What We Believe In

4 Creating A Brighter Future For All IBL s central value is People First. We recognise that having highly skilled and motivated Team Members is crucial to our Group s success in the long term. Our aim is to attract, retain and engage talents, now and in the future, by offering attractive remuneration, training and development opportunities, and a supportive, engaging workplace underpinned by our unique IBL Together corporate culture. P.4

5 Creating sustainable ways of doing business As a Mauritian group we are aware of our responsibility to engage effectively in creating and implementing sustainable ways of doing business. With the help of Dr Gunter Pauli, we are exploring circular economy projects that will allow us to reuse waste from our operations, thereby creating new revenue streams and reducing our environmental impact. P.5

6 Creating sustainable ways of alleviating poverty The group is engaged in poverty alleviation, community empowerment and sustainability through its foundation: Fondation Joseph Lagesse, and a social crowdfunding online platform Small Step Matters, and also local initiatives led by IBL clusters and partners: Projets Sourire, Projets de Proximité, Les Cuisines Solidaires. The current period is very challenging as we are entering a new financial year with 75% of CSR funds to be removed from our foundations, and channelled to the MRA. The National CSR Foundation allows a company to register and to apply for the keeping of 25% of these funds for any ongoing program which has started prior to 1 st January At IBL, we are aiming at setting up a stronger partnership with Afrasia Foundation and partners own CSR initiatives and to launch a community service scheme allowing for volunteering for community service throughout the year. P.6

7 Creating a sustainable work culture using all the tools available IBL guiding principles for digitalisation: PERFORMANCE Improve overall performance, supporting business development and generating synergies LEADERSHIP Enhance our leadership and carry the IBL brand by being a driver of digital transformation in Mauritius COHESION Strengthen employee engagement and develop skills within the group P.7

8 Our Strategy P.8

9 IBL s strategy is deployed at three levels: The Mauritian Heart The Regional Footprint The Global Expertise P.9

10 The Mauritian Heart P.10

11 Consolidation of the Mauritian Heart IBL is a proud born and raised Mauritian Group that contributes to the Mauritian growth in numerous ways. Our Group s aim is to consolidate and develop the Mauritian activities with continued support and attention. P.11

12 Zoom on Winner s Winner s was conceived 25 years ago to bring choice, quality and service to the rural areas of Mauritius. P.12

13 Who we are Team Members 25 Supermarkets P.13

14 Industry context Market share: Winner s 27% Competitors (the modern trade channel represents 60% of the local market): Dreamprice, Super U, Intermart, Jumbo/ Spar, Way, GSR, KingSavers, Lolo, Magic Deal, Savemart Big trends locally and globally: Highly Competitive and Dynamic Market, Private Labels, New outlets in Commercial Centers P.14

15 Our Roadmap PHASE 1: STABLE GROWTH supermarket per year PHASE 2: ACCELERATED GROWTH New management New visual identity Acquisition of Monoprix and Shoprite Opening of first Hypermarket PHASE 3: OPERATIONAL EXCELLENCE AND CUSTOMER CENTRICITY 5 year strategy to reach world class standards P.15

16 Operational efficiency Centralisation of supply chain Raised competencies of our team Central Warehousing Cost and overheads People / infrastructure Buying Strategy Key recruitments Private labels P.16

17 Customer centricity New look and feel based on Hyper Model Improve customer comfort and experience Competitive prices always and systemic dynamic promotions Online shopping Heavy investment in Customer Service training Digitalisation of some services Locally specialised offers and services Client feedback culture online and offline P.17

18 The Regional Footprint P.18

19 Extend our Regional footprint We believe that our region withholds opportunities of growth and expansion. Investing in the region proved successful in numerous endevours and difficult in others. We opened a regional office and refined our expansion process to ensure smooth growth. P.19

20 Zoom on Alteo in the Agro cluster Alteo was created in July 2012 from the amalgamation of two major players in the Sugar Industry in Mauritius: Deep River Beau Champ Limited (DRBC) and Flacq United Estates Limited (FUEL). With a turnover of Rs 8,18 Billion in 2018, Alteo is a leading regional group with well-established activities in the Sugar, Energy and Property sectors. It operates three sugar factories in Mauritius, Tanzania and Kenya, and is the largest sugar producer in Mauritius. In addition to its sugar activities, Alteo owns and operates three power plants (two in Mauritius, one in Tanzania) that export an average of 340 GWh to the grid annually. P.20

21 About TPC (Tanzania) In 2000, Sucrière des Mascareignes (SML) purchased 75% of shares of TPC and Government retained 25%. SML is owned by 2 groups: Alteo Limited (60%) and Tereos Ocean Indien (France 40%) TPC has 16,000 hectares of land of which 8,000 hectares under sugarcane cultivation 945,000 tonnes of cane crushed to produce 94,000 tonnes of sugar in 2018 from an original production of 344,000 tonnes of cane and 34,000 tonnes of sugar in Over the past decade, TPC s sugar production has been growing at an average rate of 5.4% per annum. All the production is sold exclusively on the domestic market. The TPC power plant was commissioned in 2008, producing electricity for TPC s own use and export of GWh surplus to the national grid in P. 21

22 About Transmara (Kenya) Production started in 2012 Reached full capacity of 1,250 Tonnes of Cane per Day (TCD) in 2013 First capacity increase in 2014 to 2,000 TCD Alteo acquired 51%of Transmara Sugar Company Limited in 2015 Second capacity increase in November 2015 to 3,500 TCD TSC sources its sugar cane entirely from more than 9000 out-growers located within a 30 km radius of its factory and provides a wide range of extension services to the local sugar cane farmers community. It has decided to adopt a decentralised approach with the setting up of six regional offices staffed with experienced agricultural resources working in close collaboration with the farmers. In 2018, Transmara crushed 578,000 tonnes of cane to produce 55,000 tonnes of sugar. Alteo s investment in TSC is held through SML, and Transmara Investment Ltd (TIL), an intermediary holding company. P.22

23 The Global Expertise P.23

24 Cultivate Global Expertise Our group has developed unique expertise over the years placing IBL on the international scene. P.24

25 Zoom on Lux The lux brand was launched in LUX* Resorts & Hotels helps people to celebrate life by delivering consistently on the promise of a different kind of Luxury; hospitality that is Lighter. Brighter. LUX* stages exceptional experiences in different locations whether on the Beach, in the City or in Nature by banishing thoughtless patterns and being more simple, fresh and sensory than our competitors. P.25

26 LUX* new business model 100% BEAU RIVAGE CO LTD Owner & Operator LUX* Belle Mare LUX ISLAND RESORTS LTD ('LIR') 100% 100% 100% HOLIDAY & LEISURE RESORTS LIMITED Owner & Operator Merville Beach Hotel & LUX* Grand Gaube LES PAVILLONS RESORTS LTD Owner & Operator LUX* Le Morne WHITE SANDS RESORT & SPA PVT LTD Owner & Operator LUX* South Ari Atoll SAS HÔTEL PRESTIGE RÉUNION LONG TERM MANAGEMENT CONTRACTS THE LUX COLLECTIVE LTD Formerly Lux Hospitality Ltd LONG TERM MANAGEMENT CONTRACTS 3 RD PARTY OWNERS LUX* North Male Atoll, Maldives LUX* Tea Horse Road Lijiang, China LUX* Tea Horse Road Benzilan, China LUX* Luxelakes, China LUX* Zhuhai, China LUX* Dianshan Lake, China LUX* Sanmen Island, China LUX* Liyang, China SALT of Wolong, China SALT of Palmar, Mauritius LUX* Bodrum, Turkey LUX* La Baraquette, France LUX* Tuscany, Italy LUX* Al Zorah, U.A.E LUX* Phu Quoc, Vietnam 100% Owner & Operator LUX* Saint Gilles and Hôtel Le Recif 100% NEREIDE LIMITED Operator Tamassa P.26

27 The Lux Collective The Lux Collective is a global hotel operator of own brands and managed properties: LUX*, SALT, Tamassa & Café LUX*. Other properties managed by The Lux Collective are: Merville Beach, Grand Baie, Mauritius, Hotel Le Recif, Reunion Island, as well as Ile des Deux Cocos, Mauritius, a private paradise island. P.27

28 The Lux Collective Brands PEOPLE PASSIONATE RESPONSIBLE INNOVATIVE TRANSFORMATIONAL RESORTS & HOTELS BRANDS P.28

29 LUX* Hotels around the world LUX* Tea Horse Road, Lijang LUX* Tea Horse Road, Benzilan FRANCE LUX* La Baraquette Resort & Residences - Opening 2021 ITALY LUX* Tuscany - Opening 2021 TURKEY LUX* La Bodrum Resort & Residences CHINA LUX* Luxclakes, Chengdu - Opening 2022 LUX* Zhuhai, China LUX* Dianshan Lake, China LUX* Sanmen Island, China LUX* Liyang, China LUX* of Wolang, China U.A.E LUX* Al Zorah Resort & Residences - Opening 2020 VIETNAM LUX* Phu Quoc - Opening 2020 MALDIVES LUX* South Ari Atall LUX* North Male Atoll - Opening Feb 2019 Existing hotels Opening hotels REUNION LUX* Saint Gilles Hotel Le Recif MAURITIUS LUX* Belle Mare LUX* Le Morne LUX* Grand Gaube Tamassa Resort, Bel Ombre Merville Beach, Grand Baie SALT of Palmar - Opening 2018 SOCIO Trianon - Opening 2021 P.29

30 LUX* regional and international expansion timeline SEYCHELLES Desroches Island Resort 2005 TURKEY May 2014 VIETNAM LUX* Phu Quoc Vietnam 2020 MALDIVES LUX* South Ari Atoll Oct 2005 CHINA LUX* Tea Horse Road Lijiang Sep 2014 U.A.E LUX* Al Zorah UAE REUNION ISLAND LUX* St Gilles in 2006 LUX* REBRANDING EUROPE LUX* La Baraquette LUX* Tuscany 2021 CHINA LUX* Luxelakes, Chengdu 2022 P.30

31 Zoom on Nutrifish Nutrifish produces active natural ingredients for the food, nutraceutical and cosmetic markets using marine natural resources responsibly. Nutrifish uses unique technology to process up to 20 to tons of raw material annually. P.31

32 Added Value Site Location Cracking Process Nutrifish P.32

33 Nutrifish target markets FOOD NUTRACEUTICAL AROMATIC PET FOOD / AQUA NUTRITION WELL BEING FLAVOURS HEALTH NUTRITION Nutrifish Ingredients Fish pulp Fish powders Used for Cooked dishes Baby food Rillettes etc. Nutrifish Ingredients Functional peptides Well being extracts Refined fish oils Used for Food supplements Fortified foods Nutrifish Ingredients Aroma base Fish oils Used for Soups Aromas Nutrifish Ingredients Palatability Nutritional peptides Fish oils Used for Dry and wet Snacks P.33

34 Segmental Results P.34

35 WHAT WE DO The IBL Financial & Other Services sector consists of five main activities: 1. Banking, Asset and Wealth Management via AfrAsia Bank Ltd (30.29%) 2. Insurance (including insurance and reinsurance brokering) through Mauritian Eagle Insurance Company Limited (60%), City Brokers Ltd (50%) and Ellgeo Re (Mauritius) Ltd (33.33%) 3. Global Business through DTOS (100%) 4. Stockbroking Services via LCF Securities Ltd (75%) 5. Private Equity via the Bee Equity Partners Ltd, formerly known as FIDES (34.95%). P.35

36 Financial & Other Services Overall Sector MUR m COMMENTS: TURNOVER OPERATING PROFIT SHARE OF ASSOCIATES All companies in the sector Act Vs Ly Act Vs Ly Act Vs Ly registered growth in turnover. +18% -19% +55% However, profits from revenue 962 growth was mitigated following a OTHERS OTHERS 36 higher claims ratio suffered in the motor and property segment or MEI. AFRASIA 171 AFRASIA 281 P.36

37 WHAT WE DO The IBL Commercial sector consists of B2B and B2C suppliers of different types of goods. The sector s main businesses are active in: Consumer goods / Healthcare - BrandActiv and HealthActiv Retail / Supermarkets - Winner s Industrial supply - Intergraph P.37

38 Commercial Overall Sector MUR m TURNOVER Act Vs Ly OPERATING PROFIT Act Vs Ly COMMENTS: +6% % Revenue increase was driven by Winner s which opened its first 6,659 7, hyper supermarket in November. The sector posted lower profits due to development costs linked to its expansion. P.38

39 WHAT WE DO The IBL Building & Engineering Sector consists of a multi-disciplinary group of businesses involved in engineering and construction - related services. Its businesses are active in the following areas: Engineering and contracting: Manser Saxon (92.50%), CMH (100%), Scomat (100%), ServEquip (100%), IBL Biotechnology (90%) Manufacturing and retailing of building materials: UBP Group (33.14%) Shipbuilding, repairs and associated activities: CNOI (63.8%) MATERIAL COMPANIES The sector s material companies (in terms of financial weight and number of employees) are Manser Saxon, the United Basalt Products Ltd (UBP) and Chantier Naval de l Ocean Indien (CNOI). P.39

40 Building & Engineering Overall Sector MUR m TURNOVER OPERATING PROFIT Act Vs Ly Act Vs Ly COMMENTS: 5,068-14% 4, % 364 Revenue was lower for the half year compared to same period last year. Both shipyard and contracting businesses benefited from large projects last year. UBP registered a positive growth in turnover and profits resulting from several public infrastructure and property development projects underway. P.40

41 WHAT WE DO The IBL Logistics Sector provides services and solutions in: Logistics - Warehousing, freight forwarding, courier services, transportation Aviation - GSA airlines representation, travel agencies, training, ground handling Shipping - Shipping agencies, shipping line representation, ship owning and management P.41

42 Logistics Overall Sector MUR m TURNOVER Act Vs Ly OPERATING PROFIT Act Vs Ly COMMENTS: +16% -34M Revenue increase is mainly attributable to warehousing 1, activities P.42

43 WHAT WE DO The Manufacturing and Processing Sector consists of businesses active in the transformation or enhancement of raw materials and semicompleted products. MATERIAL COMPANIES The sector includes the following key activities: Beverages - Phoenix Bev (PBL) (23.28%) Seafood - Froid des Mascareignes (59.50%), Marine Biotechnology Products (56.95%), Cervonic (85%), Mer des Mascareignes (42.5%), Nutrifish (24.95%), Aquatic Proteins (70%), and Princes Tuna (40.64%) P.43

44 Manufacturing & Processing Overall Sector MUR m COMMENTS: TURNOVER OPERATING PROFIT SHARE OF ASSOCIATES The seafood sector continues Act Vs Ly Act Vs Ly Act Vs Ly its recovery after a tough year +9% +10% -17% in PhoenixBev registered 4,222 4, growth in revenue and profits of 8% and 2% respectively PTM 56 PTM 48 OTHERS (5) OTHERS (6) P.44

45 WHAT WE DO The IBL Property sector acquires, holds and manages retail, office and industrial properties for the IBL Group. Its activities consist of: Property investment - acquiring new properties for the Group; Property asset Management; Property management; and Facilities management. MATERIAL COMPANIES Bloomage Ltd (100%) BlueLife Ltd (48.99%) P.45

46 Property Overall Sector MUR m TURNOVER Act Vs Ly OPERATING PROFIT Act Vs Ly COMMENTS: +322 M -16M Increase in revenue resulted from consolidation of BlueLife. Profits were impacted by the closure of Salt of Palmar P.46

47 WHAT WE DO The IBL Hospitality Sector s activities are undertaken by the LUX* Resorts & Hotels brand. Since its launch in 2011, LUX* has established itself as a leader in the premium hotel sector in leisure destinations including Mauritius, Reunion, the Maldives, Turkey and China. LUX* manages and operates beach resorts and boutique hotels (both third-party owned properties and properties in which it holds an equity stake), holds operating leases on high end villas and owns Café LUX*, a standalone coffee shop franchise. P.47

48 Hospitality LUX* MUR m TURNOVER Act Vs Ly OPERATING PROFIT Act Vs Ly COMMENTS: +14% +55% All hotels were operational during 3,180 the current period. LUX* Grand Gaube was closed for renovation 2, in the same period last year. Increase in room rates offset a slight drop in occupancy levels. In 262 a strategic move, LUX has split its business into a property owning and operating company and a hotel management company, and the latter has moved its head office to Singapore to implement its global expansion plan. P.48

49 WHAT WE DO The IBL Life Sector consists of businesses offering clinical research and development for the cosmetic and pharmaceutical industries. It is a core element of IBL s innovation-based international expansion strategy. CIDP undertakes clinical research and research and development for the cosmetic and pharmaceutical industries. It operates in three areas of activity: pharmaceuticals, cosmetics and nutraceuticals. Its clients for clinical trials now include global cosmetic and pharmaceutical leaders. CIDP is present internationally by its subsidiaries namely in India, Singapore, Brazil and Romania and works for more than 70 clients in more than 20 countries. QuantiLAB offers analytical testing services (food, environmental, pharma and cosmetics and others) as well as consulting and auditing services with the help of a strategic partner. At present, it works with 223 clients in 21 countries. P.49

50 IBL Life MUR m TURNOVER Act Vs Ly OPERATING PROFIT Act Vs Ly COMMENTS: +31M +42M Better results by CIDP, the 95 5 Group's pharmaceutical testing business. Proximed, posts stable results. 64 (37) P.50

51 WHAT WE DO The IBL Agro Sector s main activities consist of: Sugarcane operations (cane growing, sugar production and sugar refining); Energy production; and Property management and development. MATERIAL COMPANIES The Agro cluster consists of Alteo (27.64% share owned by IBL Ltd). It is listed on the Stock Exchange of Mauritius (SEM) and has over 6000 employees in Mauritius, Kenya and Tanzania. P. 51

52 Agro Alteo MUR m PAT M TURNOVER 13% 4,528 5,152 OWNERS 233 MI 359 SHARE OF PAT MI 327 OWNERS (31) 73M COMMENTS: Alteo is suffering from unfavorable sugar prices locally and has not benefited from support measures announced by The Government. This poses a serious challenge for the industry locally. (9) P.52

53 IBL Group Results P.53

54 IBL Group - Consolidated Metrics MUR m Total Assets +4% Shareholders' Equity +1% Gearing +1% 59,076 61,206 16,962 17,097 36% 37% JUN 2018 DEC 2018 JUN 2018 DEC 2018 JUN 2018 DEC 2018 P.54

55 IBL Group - Consolidated Metrics MUR m Revenue +4% Profit from operations -6% Profit before taxation -18% 19,343 20,139 1,443 1,351 1,436 1,178 DEC 2017 DEC 2018 DEC 2017 DEC 2018 DEC 2017 DEC 2018 P.55

56 Key YOY Changes Group Turnover - by business MUR m (6) 20, (282) , (757) (100) H C TRACT INT GRAPH P&B LUX PBL BLUELIFE CMPL LOGISTICS UBP SEAFOOD OTHERS CONSO ADJ H P.56

57 Key YOY Changes Group Operating Profit by Business MUR m (92) 1,443 BlueLife, CMPL, SIL ( Salt of Palmar ) & Share Registration fees Digitalisation consultancy, HealthActiv restructuring costs Mainly Contracting & Insurance offset by LUX* (36) (28) 1,351 (28) H M&A ONE OFF RECURRING H P.57

58 Key YOY Changes Associates * - by Business MUR m (1) 399 (73) (8) * Main Associates on display H ALTEO PTM AFRASIA OTHERS H P.58

59 IBL Group Interest MUR m (138) BlueLife, Bloomage, IBL Financing (345) LUX* & Winner s (78) (46) (13) (483) H M&A ORGANIC RECURRING H GROWTH P.59

60 YOY Movement New Investments & Recurring Businesses - PBT MUR m 1,436 (148) Consolidation of BlueLife & SIL ( Salt of Palmar ), funding of new initiatives in LUX*, Bloomage & Winner s (54) Drop mainly due to MEI & Contracting (57) Valuation loss 1,178 H INVESTMENTS RECURRING NET GAINS H & LOSSES P.60

61 Group PAT Movement MUR m 1, (92) (57) (138) H OPERATING PROFITS SHARE OF ASSOCS OTHER GAINS AND LOSSES FINANCE COSTS TAXATION H P.61

62 Shareholder Information P.62

63 IBL Group - Share Price Evolution SEP MAR SEP FEB MAR JUN DEC DEC SEP JUN DEC JUL 16 P.63

64 What our future looks like P.64

65 What our future looks like It s exciting times for IBL - We are excited about the future. Our underlying performance is strong - Group s revenue growth sustained and expected to continue growing. Investments made through M&A transactions continue to improve, it was right to invest when we did. Our digital transformation plans are captivating, execution is key. Our people are revved up, our next generation of managers and leaders are being groomed. The Group presents huge opportunities for top talent to innovate, perform and grow. P.65

66 Thank You P.66