investors briefing - rogers...sep 19, 2018 · engagement at all levels rogers summit (top 130...
TRANSCRIPT
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INVESTORS BRIEFING19 SEPTEMBER 2018
www.rogers.mu
www.rogers.mu
Agenda
Financials
Human Capital
Communication, CSR & Sustainability
Outlook & Valuation
www.rogers.mu
Financial highlightsGroup revenue improved by 9%
2018 2017
Net Profit Margin*
10%
Debt/Equity
0.520.56
EPS in Rs*
1.321.58
* *
* before exceptional items
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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).
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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).
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SECTOR
PERFORMANCE
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www.rogers.mu
757 650
192
139* before exceptional items
Total revenue
Rs m
125EBITDA*
Rs m
56PAT *
Rs m
FY-18 FY-17
FinTechCorporate Services
Technology Services
Financial Services
Investments
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FinTech – positive contribution of Globefin & Swan were mitigated by pre-ops expenses of financial services
CORPORATE SERVICES FINANCIAL SERVICES
Rogers Capital Corporate
Services registered a
marked improvement in
PAT on the back of
increased activities and the
acquisition of Globefin
Management Services.
PAT (Rs m)
TECHNOLOGY 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.
INVESTMENTS
Our investments in Swan
continued to perform better.
95 90
FY-18 FY-17
104
83
FY-18 FY-17
10
3
FY-18 FY-17
-153
-37
FY-18 FY-17
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* before exceptional items and excluding NMH
HotelsVeranda Leisure and
Hospitality
2,354 2,012
415
179
Total revenue
Rs m
459EBITDA*
Rs m
208PAT *
Rs m
FY-18 FY-17
(29)NMH (147)
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CORPORATE
Increase in Euro rate
impacted negatively on
loan translation.
Hotels – a significant improvement of 21% in TRevPAR through better revenue management
NMH
Last year’s results included
a significant year-end
adjustment of Rs 152m (our
share).
PAT (Rs m)
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.
86
37
FY-18 FY-17
-29
-147
FY-18 FY-17
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.
175
145
FY-18 FY-17
VLH (2018: Rs208m vs 2017: Rs179m)
-53
-3
FY-18 FY-17
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555 561
53
18* before exceptional items
Total revenue
Rs m
80EBITDA*
Rs m
42PAT *
Rs m
FY-18 FY-17
TravelRogers Aviation
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AIRLINES & SYSTEMS GROUND HANDLING CORPORATE TRAVEL
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.
PAT (Rs m)
Travel – better results from the ground handling activities
LEISURE
Boat cruises activities maintained its performance in spite of bad weather during peak season; and
Mautourco and White Palm
continued to perform well.
26
20
FY-18 FY-17
34
11
FY-18 FY-17
-8
-2
FY-18 FY-17
-10-11
FY-18 FY-17
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* before exceptional items
26PAT *
Rs m
FY-18
Leisure - an integrated leisure offering regrouped under Island Living
496Total revenue
Rs m
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).
FY-17
361 mFY-17
14 m
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Leisure - a multi-brand servicing 5 markets
Voilà Hotel
Voilà Apart’Hotel
Boutique B&B
Ocean Basket
MOKA’Z
Domino’s Pizza
SaviniaBistrot
Le Chamarel Rest.
Seeloy Island Club
Racing Republic
Case Noyale
Chamarel 7 Coloured Earth
Geopark
Heritage Nature Reserve
Accommodation QSRDestination
RestaurantsEvents Land & Sea Adventure
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3,424 3,491
298
114* before exceptional items
Total revenue
Rs m
292EBITDA*
Rs m
103PAT *
Rs m
FY-18 FY-17
LogisticsLogistics Solutions
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PORT & HAULAGE SUGAR PACKING 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.
Shipping services
yielded slightly
better results in a
flat market for
agency work.
PAT (Rs m)
Logistics – better performance of freight forwarding were impacted by reduced results from container depot and transport activities
28
49
FY-18 FY-17
2
10
FY-18 FY-17
8
7
FY-18 FY-17
FREIGHT FORWARDING
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.
65
55
FY-18 FY-17
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1,310 1,239
1,330
980* before exceptional items
Total revenue
Rs m
1,247EBITDA*
Rs m
882PAT *
Rs m
FY-18 FY-17
Property
InvestmentsAscencia
www.rogers.mu
Property Investments – 19% increase in operational PAT were offset by a 21% drop in fair value gains in 2018
Ascencia
Net operational income improved by 14% with better average income yield of 8.1% (2017: 7.1%) and a 10% increase in footfall; andHowever, overall PAT was reduced by lower fair value gains of Rs 496m (2017: Rs 629m).
PAT (Rs m)
Bagatelle Mall 685,628
557,128
305,605
204,208
124,410
665,315
539,827
299,475
200,203
N/A
+ 3%
+ 3%
+ 2%
+ 2%
N/A
2018 2017 VAR (%)
Phoenix Mall
Riche Terre Mall
So’flo
Kendra
Average Monthly Footfall
394 332
496 629
F Y - 1 8 F Y - 1 7
Operational profit Fair value gains
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* before exceptional items
597 736
(62)
(129)
Total revenue
Rs m
(98)EBITDA*
Rs m
(185)PAT *
Rs m
FY-18 FY-17
Property
Development
& Agribusiness
Companie Sucrière de Bel Ombre
Case Noyale
Les villas de Bel Ombre
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Property Development & Agribusiness – lower sugar tonnage and price
REAL ESTATE & INVESTMENTS
Delays in construction
milestones impacted
profitability.
PAT (Rs m)
AGRIBUSINESS
Better contribution of the leisure
business which includes rental and
turnover rental from the
management by Cap D’Abondance.
LEISURE - RENTAL
Profitability was impacted by a decrease of 14% in sugar price and a 21% reduction in volume;
Total sugar related revenue was Rs39m (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.
-101
-59
FY-18 FY-17
37
13
FY-18 FY-17-121
-83
FY-18 FY-17
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GROUP
FINANCIALS
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EBITDA increased by 2% and PATG by 19%
FINTECH HOSPITALITYHOTELS
LOGISTICS PROPERTYINVESTMENTS
CORPORATE SERVICES
HOSPITALITYTRAVEL
PROPERTY DEV& AGRI
FY 2017
% VAR
REVENUE
Taxation
Finance Costs
Dept & Amort
496
26
(7)
(6)
(19)
3,424 1,310 597 209 8,663 9%
- - 119 117 (15) 221 -
103 882 (185) (202) 963 6%
(44)
(40)
(105)
(95)
(258)
(12)
5
(42)
(50)
1
(125)
(9)
(165)
(539)
(355)
2%
In Rs mHOSPITALITY
LEISUREFY
2018
9,472
150
901
(189)
(550)
(425)
757
56
-
(12)
(21)
(36)
EBITDA 125 58 292 1,247 (98) (69) 2,0222,065
-
-
-
2,354
179
-
(25)
(50)
(176)
430
555
42
-
(12)
(8)
(18)
80
26 103 1,001 (68) (217) 1,113 1%1,12256 179 42PAT
PAT*
Exceptional Items
26 58 313 (53) (202) 334 19%39873 141 42PATG*
* before exceptional items
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HUMAN CAPITAL
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Human Capital: The men & women driving our numbers
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Demographic ‘Bomb’
Ageing Workforce + Lower Natality
‘Digitalization’Social + Digital Transformation
3 major factors impact the Human Capital Landscape
Talent CrunchBrain Drain + Skills Mismatch
War for
Talent
Implications
Productivity
Multi
Generations
Agile
Work force
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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
Our inclusive management model enables career progression
39
Rogers
35
MRU working
population
Median
Age
370
RET RLT RMT Rogers
Community
RLT: Rogers Leadership Team
RMT: Rogers Management Team
RET: Rogers Executive Team13
130
461
5013 Rogers Community
2013 2018
Managers 270 461
Employees 3702 5013
35% headcount
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Human Capital in Rogers: Enabling results through our people
Outcomes Initiatives
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
Engagement
at all levels
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
Learning
Agility
Culture Shaping Programs in 3 sectors
‘Energy Drives … Sustainability’
Positive Employee Experience (Human Capital Touchpoints)
Enabling
Culture
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Key facts :
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
Rogers Pension Fund: fully funded with average return of 8.1% (last 5 yrs)
Membership profile
3,819 3,944 4,191 4,409 4,605
2,358 2,634 2,844
3,062 3,460 784
820 888
954 1,068
2014 2015 2016 2017 2018
Active members Deferred pensioners Pensioners
2.943.30 3.31
3.804.24
2014 2015 2016 2017 2018
Fund value (Rs. Bn)
11.3
8.8
-2.1
12.3
10.4
2014
2015
2016
2017
2018
Fund return in %Management Committee(9 members)
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Communication,
Sustainability &CSR
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The ‘Hip Hip Hip, No Waste’ campaign
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Rogers Corporate Office
50th 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.
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.
PHOTO ADVERT HHHNW
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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.
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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.
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Cultural initiatives
Rogers sponsors Patyatann’s European Tour
(July- August 2018)
Rogers Foundation supported the publication of
“TI SOLO Grand Héros”
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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.
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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.
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SUSTAINABLE
DEVELOPMENT
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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 30 000 individuals.
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Innovative coastal protection measures
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.
4 Different
coral habitats
Covering a total
of 55 hectares
20 Hectares of
sea grass beds
comprising
4 species
70Over
Species of fish
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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.
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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
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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.
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OUTLOOK
& VALUATION
www.rogers.muwww.rogers.mu
Outlook
FINTECH
Corporate ServicesOpening of representative offices in India and France; andFully licenced management company in Seychelles.
Technology ServicesNew commercial and development plan; andNew high value offering in Information Security.
Financial ServicesIntroduction of factoring services and further digitalisation of consumer finance offerings;Launch of an electronic payment solution; andCorporate advisory for Global Business customers.
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Outlook
HOSPITALITY
HotelsReopening 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; andGuest experience enrichment at Heritage Bel Ombre with new activities, product offerings and events.
TravelOpening of new territory for GSA;Revamping of experiences for boat activities; andExpansion of ground handling activities in Africa.
LeisureLaunch 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; andImplementation of online bookings for destination restaurants and leisure brands.
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Outlook
LOGISTICS
Completion of turnarounds for the Haulage and France businesses;Expansion in East Africa; andContinued development of the regional courier business.
PROPERTY
Property Investments – AscenciaExtension of Bagatelle Mall with an additional 5,000 sqm; andConstruction of mall at Beau Vallon with a Gross Lettable Area of 10,000 sqm.
Property Development & AgribusinessAccelerate the agricultural diversification program; andPosition the Chamarel 7 Coloured Earth as a Geopark destination.
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Based on a market cap. of Rs 8.9bn, the unquoted investments are valued at only Rs 2.2bn
Swan General
New Mauritius Hotels – Ordinary
Air Mauritius
Ascencia – Class A
2,430,185
125,857,808
13,833,554
174,718,955
18-SEP-18
A. RCL
No of Shares*
359.50
21.75
11.65
16.95
Value
874
2,737
161
2,961
Value per RCL Share
No. Rs Rs m Rs
3.47
10.86
0.64
11.75
252,045,300 35.50 8,948 35.50
B. TOTAL VALUE OF QUOTED INVESTMENTS 6,734 26.72
RCL excl. QUOTED INVESTMENTS (A-B) 2,214 8.78
* No of shares held for Quoted Investments
www.rogers.mu
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
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
Evolution of Share Price & Discount to NAVDiscount to NAV decreased to 14% (NAV Rs 41.43)
Discount to NAV (Right Axis) RCL Share Price
Rs 29.05
Rogers share price increased by 22% since July 2017 to reach a market capitalisation of Rs 8.9bn
Rs 35.00
14%
29%
Rs 35.50
14%
www.rogers.mu
Thank You