UIE PLC HALF YEAR REPORT
2023
DIRECTORS' REPORT
CONTENTS
Overview | Financial Section | ||
About UIE | Consolidated Company Financial Statements | ||
UIE in brief | 3 | Consolidated Financial Statements | 23 |
UIE Financial Highlights | 4 | Notes to the Consolidated Financial Statements | 28 |
Directors' Report | Other | ||
Financial Review - Business Reporting | 5 | Statement by the Board of Directors | |
and the Management | 32 | ||
Portfolio Companies | Abbreviations & Definitions | 33 | |
UP | 11 | ||
Schörling | 16 | ||
Outlook for UIE | 19 | ||
Consolidated Key Figures | 21 |
Statement by the Chairman
Outlook
HALF YEAR REPORT 2023 UIE PLC | 2 |
UIE IN BRIEF
UIE is a holding company investing in the agro-industry as well as industrial and technology sectors.
UIE exercises long-term and active ownership through direct board representation or close collaboration with the respective management of our portfolio companies.
We are committed to investing in companies that value sustainability as one of their key guiding principles, thereby exerting a positive impact on society and the environment at large.
We invest in the agro-industrial sector and in other industries where we can use our experience and network to obtain synergies and long-term growth. By investing in a portfolio of entities with a long-term perspective, we believe the most value is created for our shareholders.
UIE was founded in 1982 and is listed on Nasdaq Copenhagen.
Our investment portfolio currently consists of:
- United Plantations Berhad ("UP") - a leading plantation company with agricultural investments in Malaysia and Indonesia where it is involved in the certified sustainable cultivation of oil palms and coconuts and processing of high quality palm oil into value-added palm fractions for the speciality fats and chocolate industry
- Schörling AB ("Schörling") - an active holding company working for long-term industrial development with ownership in six companies of which five are publicly listed
- Greenbridge Sàrl ("Greenbridge") - an investment company focusing on technology businesses with ownership in five companies
DIRECTORS' REPORT
UIE
Ownership
UP | Schörling | Greenbridge |
48.4% 1.8%9.7%
AGRO INDUSTRY | INDUSTRY / TECHNOLOGY |
HALF YEAR REPORT 2023 UIE PLC | 3 |
DIRECTORS' REPORT
UIE FINANCIAL HIGHLIGHTS
- BUSINESS REPORTING1
MARKET VALUE OF
UIE'S ASSETS
H1 2023
NET PROFIT/(LOSS)
H1 2023
60.5
USD million
VS. LOSS OF USD 57.8 MILLION
IN H1 2022
KEY FIGURES
NET ASSET VALUE PER SHARE ON 30/6 20232
224.1
DKK
0% ON YEAR-END 2022
SHARE PRICE
ON 30/6 2023
181.0
DKK
1% ON YEAR-END 2022
(Q4 2022)
UP - 63% (68%) | Greenbridge - 5% (4%) | ||
Schörling - 20% (18%) | Cash & Other | ||
Net Assets - 12% (10%) |
PERFORMANCE HIGHLIGHTS
NET PROFIT/(LOSS)
H1
USD million
60 | ||||
30 | ||||
0 | ||||
-30 | ||||
-60 | 2020 | 2021 | 2022 | 2023 |
2019 | ||||
SHAREHOLDERS'
EQUITY
USD million
800 | |||||
600 | |||||
400 | |||||
200 | |||||
0 | 2019 | 2020 | 2021 | 2022 | H1 2023 |
MARKET VALUE OF
UIE'S ASSETS ON 30/6 2023
USD million
1,200 | Holding | |
126 | ||
900 | discount | |
261 | 19% | |
600 | ||
300 | 665 | 851 |
0 | Market value of UIE's assets | UIE's market value |
UP Schörling/Greenbridge Net Cash & Other Net Assets
- See page 28 for further explanation of Business Reporting and Accounting Policies.
- Calculated as total market value of UIE's underlying net assets divided with number of outstanding shares at end of the period.
HALF YEAR REPORT 2023 UIE PLC | 4 |
FINANCIAL REVIEW
- BUSINESS REPORTING
UIE's net result was USD 60.5 million in the first half of 2023, reflecting a most satisfactory operating performance from UP as well as a fair value increase of the Schörling investment.
Business Reporting Highlights - H1 2023
- UIE's net result was USD 60.5 million in the first half of 2023, which is USD 118.3 million higher than the net loss of USD 57.8 mil- lion reported in the first half of 2022.
- The share of UP's net profit was USD 29.1 million in the first half of 2023, which was USD 1.9 million higher than the USD 27.2 million reported in the first half of 2022. This was achieved despite a lower contribution from the plantation division. The higher net result in UP can be attributed to the refinery segment contributing with a net profit in the first half of 2023, compared to a net loss in the first half of 2022.
-
The contribution from UP's plantation division decreased as the production volumes of crude palm oil ("CPO") and palm kernel ("PK") declined by 7% and 9%, respectively (due to unfavourable weather conditions), as well as increasing production costs.
Furthermore, UP's average selling prices decreased by 4% for CPO and 38% for PK. - UP's refinery division contributed with positive earnings in the first half of 2023, positively affected by temporary hedging gains realised in the period, as opposed to the significant hedging loss incurred in the first half of 2022 due to timing differences of raw material hedges.
- The fair value of UIE's investment in Schörling amounted to USD 214.2 million at the end of June 2023 - an increase of USD 24.3 million, or 13%, since year-end 2022. The increase reflects a generally positive development in equity markets, including the Schörling portfolio companies. For comparison, the fair value adjustment in the first half of 2022 decreased by USD 81.1 million.
- The fair value of UIE's investment in Greenbridge amounted to USD 46.9 million at the end of June 2023. Accordingly, the fair value adjustment for the period amounted to an increase of USD 3.6 million.
Business Reporting Versus Consolidated Figures
DIRECTORS' REPORT
"Despite facing an uncertain global economic outlook characterised by high interest rates, inflation and geopolitical concerns, UP as well as all the portfolio companies within Schörling performed well in the first half of 2023.
Looking ahead, the global growth is projected to decline in 2023, casting a cloud of uncertainty over future prospects. Especially the increased uncertainty about GDP growth in China and overall consumer spending, which is slowing down, is an area of concern. However, we remain confident that UP, Schörling and Greenbridge will continue to perform satisfactorily in the coming years. This optimism is anchored in their agile mindset, strong focus on innovation and their positions as business leaders in their respective business segments".
- Carl Bek-Nielsen, Chairman
In the reporting on the following pages, we do not comment on the consolidated figures but on the figures in the Business Reporting. | |
According to International Financial Reporting Standards as adopted by the EU ("IFRS"), UIE is deemed to have de facto control of UP even though UIE holds less than 50% of UP's voting rights. Hence, UP's result is fully consolidated in UIE's consolidated financial statements. | |
However, as UIE is a non-operating holding company, the Board is of the view that the most appropriate measurement of the performance of the investment in UP is to equity account (measuring UIE's share of UP's net profit in a single line item in UIE's operating profit). | |
Wholly-owned subsidiaries are fully consolidated, whereas other investments (primarily Schörling and Greenbridge) are measured at fair value. Accordingly, this measurement is used in the Business Reporting as well as consolidated figures. The net profit reported under | |
Business Reporting is basically identical to the net profit attributable to owners of the Company reported in the consolidated financial statements. | |
For further information on the difference between the Business Reporting in the Directors' Report and the consolidated financial statements, refer to note 1.1 on page 28. | 5 |
HALF YEAR REPORT 2023 UIE PLC |
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UIE - United International Enterprises Limited published this content on 16 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2023 08:26:03 UTC.
