INVESTORS BRIEFING 19 SEPTEMBER

Transcription

1 INVESTORS BRIEFING 19 SEPTEMBER 2018

2 Agenda Financials Human Capital Communication, CSR & Sustainability Outlook & Valuation

3 Financial highlights Group revenue improved by 9% 10% * * EPS in Rs* Net Profit Margin* Debt/Equity * before exceptional items

4 Corporate developments Corporate Acquisition of 100% holding in Island Living Ltd (previously ENL Lifestyle Ltd) and the acquisition of its minority stakes in Bagatelle Hotel Operations and Seafood Basket for a total consideration of Rs 221m (Q1); Disposal of 21.32% holding in EnAtt to ENL Land for a consideration of Rs 107m (Q1); Amalgamation of MOM into Moka City with Rogers obtaining an effective stake of 9.4% in the surviving entity (Q1); and Conversion of 29,870,707 NMH preference shares into ordinary shares with Rogers shareholding increasing from 22.76% to 22.92% (Q3).

5 Corporate developments FinTech Acquisition of 100% holding in Globefin Management Services Ltd and Globefin Corporate Services Ltd (Q1); and Issue of 23m shares by Rogers Capital for a consideration of Rs 250m with Rogers shareholding increasing from 50.59% to 56.54% (Q3 & Q4). Property Acquisition of 15% minority shareholding in Bagaprop in exchange for the issue of new Ascencia shares to Atterbury worth Rs 608m. Following which Rogers shareholding in Ascencia was reduced from 40.15% to 36.32% (Q3); and Disposal of 100% stake in Gardens of Bagatelle for Rs 293m (Q3).

6 SECTOR PERFORMANCE

7 FinTech Corporate Services Technology Services Financial Services Investments Total revenue Rs m EBITDA* Rs m PAT * Rs m * before exceptional items

8 FinTech positive contribution of Globefin & Swan were mitigated by pre-ops expenses of financial services PAT (Rs m) CORPORATE SERVICES TECHNOLOGY SERVICES FINANCIAL SERVICES INVESTMENTS Rogers Capital Corporate Services registered a marked improvement in PAT on the back of increased activities and the acquisition of Globefin Management Services. Sale of higher value services positively impacted on profit margins. Results impacted by the costs incurred for the launch of new services and one off cost. Our investments in Swan continued to perform better.

9 Hotels Veranda Leisure and Hospitality Total revenue Rs m 2,354 2,012 EBITDA* Rs m PAT * Rs m * before exceptional items and excluding NMH NMH (29) (147)

10 Hotels a significant improvement of 21% in TRevPAR through better revenue management PAT (Rs m) VLH (2018: Rs208m vs 2017: Rs179m) HERITAGE Higher occupancy of 75.5% (2017: 73%); and The increase of 132% in PAT was mainly driven by an improvement in results of Heritage Le Telfair. VERANDA Improved occupancy rate of 87.4% (2017: 84.9%); and Better results across all Veranda Resorts, with a growth of 21% in PAT in spite of the closure of Veranda Paul et Virginie and Veranda Tamarin (since April 2018) for renovations. CORPORATE Increase in Euro rate impacted negatively on loan translation. NMH Last year s results included a significant year-end adjustment of Rs 152m (our share).

11 Travel Rogers Aviation Total revenue Rs m EBITDA* Rs m PAT * Rs m * before exceptional items

12 Travel better results from the ground handling activities PAT (Rs m) AIRLINES & SYSTEMS GROUND HANDLING CORPORATE TRAVEL LEISURE GSA benefitted from the good performance of new/existing air line representations. Better renegotiated contract in USD for Mozambique operations; and New client in Madagascar. Activities continue to be impacted by strong competition and discounting by some airlines. Boat cruises activities maintained its performance in spite of bad weather during peak season; and Mautourco and White Palm continued to perform well.

13 Leisure - an integrated leisure offering regrouped under Island Living Good performance of Voilà Bagatelle Hotel with an occupancy rate of 80.5% (2017:75.8%); and New contribution from the management of the Leisure activities of CSBO & CN (Le Chamarel 7 Coloured Earth Geopark, Le Chamarel Panoramic Restaurant & Heritage Nature Reserve). Total revenue PAT * Rs m m Rs m m * before exceptional items

14 Leisure - a multi-brand servicing 5 markets Accommodation QSR Destination Restaurants Events Land & Sea Adventure Voilà Hotel Voilà Apart Hotel Boutique B&B Ocean Basket MOKA Z Domino s Pizza Savinia Bistrot Le Chamarel Rest. Seeloy Island Club Racing Republic Case Noyale Chamarel 7 Coloured Earth Geopark Heritage Nature Reserve

15 Logistics Logistics Solutions Total revenue Rs m 3,424 3,491 EBITDA* Rs m PAT * Rs m * before exceptional items

16 Logistics better performance of freight forwarding were impacted by reduced results from container depot and transport activities PAT (Rs m) PORT & HAULAGE SUGAR PACKING FREIGHT FORWARDING SHIPPING Increase in activities at Freeport of Mauritius was more than offset by a reduction in margins of container depot activities and rates; and. Transport operations were impacted by reduced cane volume, less project work and a slowdown in Kenya during the election period. Profitability impacted by lower volumes which was made up of larger packages with lower margins. Overseas activities performed well with good results from Madagascar and India operations; France operations recorded higher volumes but this was offset by provisions for long outstanding debts on the discontinued warehouse activity; and Profit in Mauritius continue to be under pressure in an intensely competitive market. Shipping services yielded slightly better results in a flat market for agency work.

17 Property Investments Ascencia Total revenue Rs m 1,310 1,239 EBITDA* Rs m 1,247 1,330 PAT * Rs m * before exceptional items

18 Property Investments 19% increase in operational PAT were offset by a 21% drop in fair value gains in 2018 PAT (Rs m) Operational profit Fair value gains Average Monthly Footfall VAR (%) Bagatelle Mall 685, , % Phoenix Mall 557, , % FY- 18 FY- 17 Riche Terre Mall 305, , % Ascencia So flo 124,410 N/A N/A Net operational income improved by 14% with better average income yield of 8.1% (2017: 7.1%) and a 10% increase in footfall; and However, overall PAT was reduced by lower fair value gains of Rs 496m (2017: Rs 629m). Kendra 204, , %

19 Property Development & Agribusiness Total revenue Rs m Companie Sucrière de Bel Ombre Case Noyale Les villas de Bel Ombre EBITDA* Rs m (98) (62) PAT * Rs m (185) (129) * before exceptional items

20 Property Development & Agribusiness lower sugar tonnage and price PAT (Rs m) LEISURE - RENTAL Better contribution of the leisure business which includes rental and turnover rental from the management by Cap D Abondance. AGRIBUSINESS Profitability was impacted by a decrease of 14% in sugar price and a 21% reduction in volume; Total sugar related revenue was Rs 39m (2017: Rs 57m); Livestock results continue to be lower as a result of increased maintenance costs due to parasite attacks on pastures; and Exceptional profits of Rs 117m realized on the sale of bare land are not included. REAL ESTATE & INVESTMENTS Delays in construction milestones impacted profitability.

21 GROUP FINANCIALS

22 EBITDA increased by 2% and PATG by 19% In Rs m FINTECH HOSPITALITY HOTELS HOSPITALITY TRAVEL HOSPITALITY LEISURE LOGISTICS PROPERTY INVESTMENTS PROPERTY DEV & AGRI CORPORATE SERVICES FY 2018 FY 2017 % VAR REVENUE 757 2, ,424 1, ,472 8,663 9% EBITDA ,247 (98) (69) 2,065 2,022 2% Taxation (12) (25) (12) (7) (44) (95) 5 1 (189) (165) - Finance Costs (21) (50) (8) (6) (40) (258) (42) (125) (550) (539) - Dept & Amort (36) (176) (18) (19) (105) (12) (50) (9) (425) (355) - PAT* (185) (202) % Exceptional Items (15) PAT PATG* * before exceptional items ,001 (68) (217) 1,122 1,113 1% (53) (202) % 398

23 HUMAN CAPITAL

24 Human Capital: The men & women driving our numbers

25 3 major factors impact the Human Capital Landscape Implications War for Talent Digitalization Social + Digital Transformation Talent Crunch Brain Drain + Skills Mismatch Demographic Bomb Ageing Workforce + Lower Natality Agile Work force Multi Generations Productivity

26 Our inclusive management model enables career progression 13 RET: Rogers Executive Team RET RLT RMT Rogers Community 130 RLT: Rogers Leadership Team 461 RMT: Rogers Management Team 5013 Rogers Community Rogers MRU working population Median Age 35% headcount Managers Employees Key stats at 30 June 2018: 5,013 Employees 461 Managers 1943 Staff 2609 Operatives 110+ workplaces 16 Nationalities over 13 Countries Median Age = 35 years Median Tenure = 4 years 67% of workforce below 35 years

27 Human Capital in Rogers: Enabling results through our people Outcomes Enabling Culture Initiatives Culture Shaping Programs in 3 sectors Energy Drives Sustainability Positive Employee Experience (Human Capital Touchpoints) Learning Agility Rogers Summit (Top 130 Leaders) Management Development (Curtin) 40 graduates every year Structured Programs: (1) Sales (2) Customer Service 2,700 Employees Trained (67%) via our 4 Learning Academies MUR 31M invested (5 mandays per employee) 60% soft skills : 40% hard skills Engagement at all levels National Engagement Survey with Aon Rogers Leaders Awards (Managers Recognition Program) Recognition Programs in sectors (e.g. VLH Excellence Awards) Total Rewards & Group wide Benefits

28 Rogers Pension Fund: fully funded with average return of 8.1% (last 5 yrs) Key facts : Membership profile Fund value (Rs. Bn) 9,133 members Fund value over Rs 4 bn Shift from DB to DC scheme in Oct 1999 No Worse Off Guarantee provided (344 members) Quarterly meetings to monitor fund performance Actuarial valuation every 2 years Funding level of 108% Surplus of assets : liabilities at 30 Sept 17: Rs 281 m 1, ,062 3,460 2,358 2,634 2,844 3,819 3,944 4,191 4,409 4, Active members Deferred pensioners Pensioners Management Committee (9 members) Fund return in %

29 Communication, Sustainability & CSR

30 The Hip Hip Hip, No Waste campaign

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32 Rogers Corporate Office 50 th Independence anniversary video draws attention to energy management and waste disposal. An interactive website featuring 50 eco-moves for a sustainable future. A Waste Electric and Electronic Equipment recycling programme was launched. PHOTO ADVERT HHHNW Two Plogging (jogging while picking up trash) initiatives were organised in Port Louis to raise awareness on waste disposal. Launch of educative videos Release of 5 animated videos will on the 50 eco-moves for a sustainable future.

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34 Initiatives by Hospitality VLH employees and volunteers from the communities surrounding Veranda Resorts and Heritage Resorts teamed up to clean up beaches, roadsides and villages. VLH lends its support to Project Rescue Ocean, an association whose aim is to raise awareness about the state of the coastal environment. The hotel group also organised the collection of used household appliances. An awareness campaign was launched in schools to sensitize children about sustainable development. As part of a war against plastic pollution, Ocean Basket banned the used of single-use plastic straws in its three restaurants in Mauritius as from 14 May. A Refuse the Straw initiative is also being implemented in all the hotels of the group.

35 The Logistics Initiatives Velogic took the commitment to dispose responsibly of used oil. Recycled oil is used for fuelling industrial machines. Velogic is backing a community vegetable garden project launched by Caritas in Roche Bois. Helping beekeepers in Rodrigues : Sukpak Ltd shipped some 400kg of sugar sweepings to Rodrigues in March 2018.

36 Cultural initiatives Rogers sponsors Patyatann s European Tour (July- August 2018) Rogers Foundation supported the publication of TI SOLO Grand Héros

37 Social Support in Bel Ombre and Tamarin Rogers lends a hand to Les Tilous, a pre-school in Bel Ombre managed by the NGO, Caritas, which welcomes children aged 2-3 years old in order to stimulate their aptitudes before entering the education system Rogers pursued its support to Lovebridge, an NGO involved in the fight against extreme poverty and under the aegis of Business Mauritius. Twenty families of Bel Ombre and St Martin were targeted by the programme which focuses on education, health, housing, nutrition, employment and attitude. In the field of sports, Heritage Villas Valriche provides funding and support to the U11 and U13 squads of a rugby team in Bel Ombre and helped create La Boul du Kap, a petanque club in the same region. Veranda Resorts engages with the Tamarin community in collaboration with Caritas and has undertaken a social needs analysis to determine the socio-economic needs in the Tamarin region.

38 Ongoing support to Cité Sainte Catherine An ongoing three-year community enhancement project is co-sponsored by Rogers, Eclosia and ENL Foundation to support various projects in Cité Sainte Catherine, Saint Pierre, pertaining to health, education, housing, etc. Projects aim at helping beneficiaries develop skills and knowledge to enable financial autonomy.

39 SUSTAINABLE DEVELOPMENT

40 Into Year 4 with Bis Lamer A classroom on wheel, equipped with laboratory equipment, training displays and other interactive tools, Bis Lamer is in its fourth year of operation. Steered by NGO Reef Conservation, it reached more than individuals.

41 4 Different coral habitats Covering a total of 55 hectares Innovative coastal protection measures 20 Over 70 Hectares of sea grass beds comprising 4 species Species of fish Four hotels have joined efforts in restoring the Bel Ombre coastline after a lagoon and beach survey carried out in 2016 showed substantial beach recession erosion in the area in recent years. The NGO, Reef Conservation will conduct environmental monitoring and reporting on a quarterly basis over the next three years.

42 Heritage Resorts joins the green trend The vegetable garden launched in early 2018 at Heritage Le Château has started to yield some fresh produce in March to supply the Group s hotels. The production area will ultimately be extended to 12 hectares using smart agriculture and organic farming practices to meet the growing demand for quality local produce while reducing the ecological footprint of the Group s operations. Heritage Le Telfair joined the Earth Hour worldwide movement on 24 March 2018 by reducing and replacing electric lighting with candles between 8.30pm and 9.30pm.

43 Ascencia optimizes resource management Ascencia is taking initiative to give its activities a green stamp. This means their ecologically responsible practices are implemented to help sustain value across their operations. Ascencia celebrated the World Environment Day by holding its first ever Green Market from 8 to 10 June 2018 at Bagatelle Mall. The first photovoltaic farm was launched at Phoenix Mall on 31 July

44 Rogers in Global Goals Yearbook 2018 This year again, Rogers was featured in the 2018 edition, sharing its vision on the shaping of a sustainable Mauritius. The Global Goals Yearbook is a publication in support of the Sustainable Development Goals and the advancement of corporate sustainability globally. These SDGs are a collection of 17 goals to alleviate poverty, protect the planet and ensure the global well-being of human beings.

45 OUTLOOK & VALUATION

46 Outlook FINTECH Corporate Services Opening of representative offices in India and France; and Fully licenced management company in Seychelles. Technology Services New commercial and development plan; and New high value offering in Information Security. Financial Services Introduction of factoring services and further digitalisation of consumer finance offerings; Launch of an electronic payment solution; and Corporate advisory for Global Business customers.

47 Outlook HOSPITALITY Hotels Reopening of Veranda Tamarin in November 2018 as a 3-star plus with some 116 rooms; Start construction of Heritage second 18-hole signature golf course and sales of memberships; and Guest experience enrichment at Heritage Bel Ombre with new activities, product offerings and events. Travel Opening of new territory for GSA; Revamping of experiences for boat activities; and Expansion of ground handling activities in Africa. Leisure Launch of Domino s Pizza brand; Launch of Seeloy Island Clubs brand; A hosted B&B lodging experience in Bel Ombre, Kaz Alala, with a capacity of 20 rooms; and Implementation of online bookings for destination restaurants and leisure brands.

48 Outlook LOGISTICS Completion of turnarounds for the Haulage and France businesses; Expansion in East Africa; and Continued development of the regional courier business. PROPERTY Property Investments Ascencia Extension of Bagatelle Mall with an additional 5,000 sqm; and Construction of mall at Beau Vallon with a Gross Lettable Area of 10,000 sqm. Property Development & Agribusiness Accelerate the agricultural diversification program; and Position the Chamarel 7 Coloured Earth as a Geopark destination.

49 Based on a market cap. of Rs 8.9bn, the unquoted investments are valued at only Rs 2.2bn No of Shares* 18-SEP-18 Value Value per RCL Share No. Rs Rs m Rs A. RCL 252,045, , Swan General 2,430, New Mauritius Hotels Ordinary 125,857, , Air Mauritius 13,833, Ascencia Class A 174,718, , B. TOTAL VALUE OF QUOTED INVESTMENTS 6, RCL excl. QUOTED INVESTMENTS (A-B) 2, * No of shares held for Quoted Investments

50 Rogers share price increased by 22% since July 2017 to reach a market capitalisation of Rs 8.9bn Evolution of Share Price & Discount to NAV Discount to NAV decreased to 14% (NAV Rs 41.43) 40 65% 39 60% Rs Rs % % 34 45% % Rs % 29 30% % 25% 26 20% 14% 25 14% 15% % % 20 0% Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Discount to NAV (Right Axis) RCL Share Price

51 Thank You