ENL GROUP Analyst meeting 7 th October 2016
AGENDA The Group Focus areas Growth areas Financials
The Group
Group Structure ENL LIMITED ENL ENL ENL LAND* COMMERCIAL# LIFESTYLE ENL Agri ENL Property Rogers* * Listed on SEM 10 Food & Allied Tropical New Mauritius Group Paradise Co Hotel * # Listed on SEM Listed on DEM Associates
Focus areas Commerce Financial Land & Agro-industry Hospitality Lifestyle Logistics Property and industry Services investments Financial Business Logistic Agribusiness Automotive Hotels Land owner solutions Development Services hotels Venture Agro-industry Construction Technology Travel Restaurants Investments Sectors capital Manufacturing Business Trading Leisure Services incubator ENL ENL Agri Rogers capital VLH ENL Land Voila Bagatelle Velogic ENL Property Commercial Global CSBO Cogir Rogers Aviation La Turbine Ocean Basket Ascencia business Activities Villas de Bel Case Noyale EIS Catalyst Savinia Bistrot Ombre Asset Mokaz Moka City Management New Mauritius Food & Allied Swan Hotels Key Air Mauritius investments Mautourco White Sands Blueconnect
Guiding principles Raising dividends annually EQUILIBRIUM Controlling Increasing the level of shareholders’ indebtedness interests
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
Highlights Over GEARING PROFIT AFTER TAX 6,800 Rs 875 m 31% employees 2015: Rs 1.4 bn 2015: 22% TOTAL GROUP ASSETS GROUP TURNOVER Rs 57 bn Rs 13.4 bn 2015: 48 bn 2015: 12.3 bn EQUITY HOLDERS INTERESTS PROFIT ATTRIBUTABLE TO EQUITY HOLDERS Rs 16 bn Rs 236 m 2015: Rs 16 bn 2015: 536 m
Corporate responsibility ENL focuses on wellbeing of Rogers Foundation concentrates on communities within our areas of activity education and actions towards coastal protection ENL Foundation geared towards prioritising vulnerable children environment poverty alleviation socio-economic development
Focus areas
Agro- industry
Agro-industry Turnover Profit after tax 2016 2015 Change 2016 2015 Change Agro-industry 945 937 1% 249 258 (3%) 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
Commerce and Industry
Commerce and industry Turnover Profit after tax 2016 2015 Change 2016 2015 Change Commerce and industry 3,489 3,394 3% (54) (13) (100%) 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
Financial services
Financial services Turnover Profit after tax 2016 2015 Change 2016 2015 Change Financial services 627 414 51% 127 140 (9%) 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
Hospitality
Hospitality Turnover Profit after tax 2016 2015 Change 2016 2015 Change Hospitality 2,593 2,264 15% 71 178 (60%) 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
Land and Investment
Land and Investment Turnover Profit after tax 2016 2015 Change 2016 2015 Change Land and investments 40 53 (25%) (356) 5 (100%) 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
Land and Investment Optimised structures to permeate innovation Fund of Rs 760m over 5 to 8 years First incubator in Mauritius 2 independent directors with wide ranging Permeate innovation into ENL, Moka and Mauritius international experience 3 starts ups lined up to begin the incubation in First investment expected to be completed by end of November 2016 Tap into the National incubation fund of Rs 50m Branding exercise ongoing Develop corporate partnerships for funding
Logistics
Logistics Turnover Profit after tax Year ended June 30 (in Rs’m) Change Change 2016 2015 2016 2015 8% 100% Logistics 3,134 2,911 83 27 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
Lifestyle
Lifestyle Turnover Profit after tax Year ended June 30 (in Rs’m) Change Change 2016 2015 2016 2015 16% 25% Lifestyle 265 228 5 4 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 Turnover Profit after tax Year ended June 30 (in Rs’m) Change Change 2016 2015 2016 2015 10% 3% Property 2,270 2,066 802 776 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
Property NEW DEVELOPMENT MODEL LAND BANK OWNER DEVELOPMENT FUND OFFICE FUND (Smart City) - Acquire land and undertake - One of the exit platforms developments of yielding for the development fund - Undertake infrastructure assets - Generate recurring cash - Sell serviced land for cash - Exit after 3-5 years flows Smart City incentives Higher risk / Higher return Target effective date 1st 15 years development Target effective date 1st July 2017 Low risk / low return July 2017 Target effective date 1st January 2017
Moka Smart City Master plan over 1,600A Phase 1 over 450A
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
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