Inghams Group Ltd. · ASX:ING
Inghams — H1 2017 Earnings Presentation
21 slides from Inghams's earnings presentation, Feb 15, 2017
Slide 1: Inghams Group Limited 1H FY2017 Results Presentation
Inghams Group Limited 1H FY2017 Results Presentation 15 FEBRUARY 2017
Slide 2: Important notice and disclaimer
Important notice and disclaimer Disclaimer The material in this presentation is general background information about the activities of Inghams Group Limited (Ingham’s) and its subsidiaries (Ingham’s Group), current at the date of this presentation, unless otherwise noted. It is information given in
Slide 3: Group highlights
| INGHAM'S | “NEAL Group highlights
Slide 4: Group highlights
Group highlights Strong volume growth and financial performance in line with prospectus forecast First half performance in line with prospectus forecast Strong volume growth in Australia driven primarily by Retail and QSR customers Highlights Chicken remains the competitive protein, supporting
Slide 5: Financial highlights – Pro forma 1H FY17 vs 1H FY16
Financial highlights – Pro forma 1H FY17 vs 1H FY16 Poultry Volume Revenue Gross Profit EBITDA NPAT Net debt Stub dividend 248.2kt $1,227.2m $229.0m $95.2m $51.3m ↑ 12.9% ↑ 4.3% ↑ 9.0% ↑ 9.1% ↑ 13.8% $403.4m 2.6 cps Total Poultry volume growth of 12.9% (growth in core chicken and turkey products o
Slide 6: Segment information – Australia
Segment information – Australia Pro forma Pro forma Retail $ millions 1H FY2017 1H FY2016 Variance % Growth experienced across the retail customer base Australia Customers investing in EDLP on chicken SKU’s as Poultry volumes (kt) 211.9 183.2 28.7 15.6% the competitive protein Feed volumes (kt)
Slide 7: Segment information – New Zealand
Segment information – New Zealand Pro forma Pro forma $ millions 1H FY2017 1H FY2016 Variance % New Zealand Poultry volumes (kt) 36.3 36.5 (0.2) (0.6%) Feed volumes (kt) 69.1 77.4 (8.3) (10.7%) Revenue 185.8 185.5 0.3 0.1% EBITDA 17.7 18.8 (1.1) (5.8%) EBITDA % 9.5% 10.1% (0.6%) Summary: New Zealand
Slide 8: Financial results
02 Financial results
Slide 9: Pro forma Profit & Loss
Pro forma Profit & Loss Pro forma Pro forma $ millions 1H FY2017 1H FY2016 Variance % Volume & Revenue Growth Strong growth in Australian poultry volume Poultry volumes (kt) 248.2 219.8 28.4 12.9% NZ volumes flat in response to oversupply Feed volumes (kt) 297.1 288.2 8.9 3.1% Revenue growth p
Slide 10: Pro forma Cash flow and Balance Sheet
Pro forma Cash flow and Balance Sheet Pro forma Pro forma $ millions 1H FY2017 1H FY2016 Variance Cashflow Improved operating cashflow over 1H FY2016 EBITDA 95.2 87.3 7.9 Non‐cash items (0.3) (3.5) 3.2 Working capital increase due to trade debtors, driven by increased trading with major customer
Slide 11: Strategy update
| INGHAM'S } N eee Table ; 4a = — —= —- Strategy update
Slide 12: Ingham’s – A World Class Food Company
Ingham’s – A World Class Food Company PAGE // 11
Slide 13: Project Accelerate
Project Accelerate Implementation of the multi year transformation project is well underway Innovation and Differentiation Focused exports strategy Accelerate FP network utilisation Farming efficiency Feed business strategy Labour productivity Automation Procurement Accelerate Netw
Slide 14: Project Accelerate update (1 of 2)
Project Accelerate update (1 of 2) 1H focus on securing benefit of significant FY16 investment which has supported the ability to accommodate strong growth in volumes Installation and commissioning of first phase automation projects complete in major Australian Primary plants — Murarrie and Boli
Slide 15: Project Accelerate update (2 of 2)
Project Accelerate update (2 of 2) Productivity improving EBA agreements at key Primary plants in Bolivar, Te Aroha (NZ), Murarrie and Somerville approved by employees (Somerville pending FWC approval) Labour productivity Program of EBA negotiations at smaller plants and sites continues improvem
Slide 16: Investing for growth
Investing for growth Key South Australian projects well underway — SA hatchery: expansion completed / commissioned — SA breeder network: expansion on schedule — Hamley Bridge (destroyed during 2015 SA fires) rebuilt and now operational Capacity — SA feed mill: civil works underway New Zealand pr
Slide 17: Outlook
| INGHAM'S } N eee Table ; 4a = — —= —- Outlook
Slide 18: Outlook
Outlook Reconfirm FY17 prospectus forecast of $98.8M pro forma NPAT based on current trading outlook Australian volume growth is expected to be broadly in line with the prospectus forecast for the full year — will start to cycle a number of EDLP launches in the 2H and volume increases are expect
Slide 19: Appendix
S&S RS & & S S 5 SS = dix Appen
Slide 20: Reconciliation of Statutory results to pro forma
Reconciliation of Statutory results to pro forma $ millions 1H FY2017 1H FY2016 Statutory EBITDA 61.5 63.0 1. Removal of costs of listing on ASX in November 2016 IPO transaction costs ❶ 28.0 ‐ 2. Relates to fees for services charged by TPG entities that will not be incurred post listing Advisory fee
Slide 21: For reference: Vertically integrated operations
For reference: Vertically integrated operations Complex supply chain supported by integrated planning and optimisation Investing in capacity Project Accelerate Feedmilling Further Warehousing and distribution processing Breeder farms Quarantine Primary Genetics facility GGPs1 GPs2 Parents Hatcheries