Australian Dairy Nutritionals Limited · ASX:AHF
Australian Dairy Nutritionals — Australian Dairy Farms Group — Investor Presentation (February 2015)
20 slides from Australian Dairy Nutritionals's investor presentation, Feb 11, 2015
Slide 1: New Zealand Investor Presentation
Australian Dairy Farms Group ASX Code: AHF 11 February 2015 For personal use only NEW ZEALAND INVESTOR PRESENTATION Attached is a copy of an updated presentation about the Group’s strategy to aggregate dairy farms in Australia’s premier dairy regions to consolidate the production of milk. The attach
Slide 2: Australian Dairy Farms Group - New Zealand Investor Presentation
AUSTRALIAN DAIRY FARMS GROUP For personal use only ASX’s Only Listed Milk Producer ASX Code: AHF NEW ZEALAND INVESTOR PRESENTATION FEBRUARY 2015
Slide 3: Disclaimer
Disclaimer For personal use only General Information This Presentation contains general information only. This document is not an invitation, offer or recommendation (express or implied) to apply for or purchase or take any other action in respect of securities and is not a prospectus, product discl
Slide 4: Australian Dairy Farms Group - Summary
Australian Dairy Farms Group - Summary The only ASX listed owner and operator of Australian dairy farms For personal use only • • Australian Dairy Farms Group (AHF or the Group) is actively implementing its stated strategy of corporate consolidation of dairy farms in Australia’s fragmented dairy sup
Slide 5: Corporate Overview
Corporate Overview For personal use only Capital Structure - post placement Share Price Chart Since Listing 0.40 ASX Code AHF 0.38 Ignatios Farm Purchase 0.36 Placement and Share Price – at close 09/02/2015 26c 0.34 20c Brucknell No3 0.32 Listing Farm Purchase Shares on Issue 71.5m 0.30 0.28 0.26 Lo
Slide 6: Rationale for Consolidation of Milk Sector
Rationale for Consolidation of Milk Sector For personal use only Processors have excess capacity and actively seek security of milk supply Scale Will pay significant premiums / incentives for high volume and reliability of production (Revenue e.g. 1 owner producing 37.5 million litres p.a. rec
Slide 7: Corporatisation Strategy Rationale
Corporatisation Strategy Rationale For personal use only • Previous aggregations of farming operations have had mixed success in Australia – listed and unlisted. • AHF recognises key mistakes other aggregation entities have made: Mistake Australian Dairy Farms Response Acquisition Pricing Purchasi
Slide 8: Farm Selection Criteria
Farm Selection Criteria For personal use only AHF has a strict selection criteria for dairy farm acquisitions: REGIONS of VICTORIA Existing production - with immediate cashflow benefits Location – Proximity to regional centres and existing processing facilities Premier Regions – Invest only in
Slide 9: Initial Focus – South West Victoria
Initial Focus – South West Victoria For personal use only Page 8
Slide 10: Initial Focus – South West Victoria
Initial Focus – South West Victoria For personal use only AHF's first dairy farms are located “The Golden Triangle” is Australia’s premier dairy producing region in South West Victoria near Warrnambool. Largest Australian producing state by volume Consistent and favourable rainfall Close to ma
Slide 11: Implementation of Strategy
Implementation of Strategy For personal use only Establish initial production foothold in one of Australia’s premier dairy regions Step 1 – Acquisition Retain existing experienced operational and farm management and consultants Raise capital and list on ASX Improve existing production and li
Slide 12: Farm Acquisition Summary
Farm Acquisition Summary For personal use only • Since listing in October 2014 with two farms, AHF has acquired two additional farms – Ignatios & Brucknell No. 3 • Potential annual milk production targeted to expand from approximately 7.7m litres to over 10.0m litres p.a. • AHF focussed on milk pric
Slide 13: Operations & Outlook
Operations & Outlook For personal use only Operations • Farms are currently exceeding internal budgets for production and profitability • Positive net profit contribution and operating cash flow from farm operations in the December quarter • Reported EBITDA of $158,000 for the 67 day period to 31 De
Slide 14: Appendix
For personal use only APPENDIX Page 13
Slide 15: Production Stats - New Zealand vs South-West Victoria
Production Stats - New Zealand vs South-West Victoria For personal use only NZ Average NZ Average SW VIC Top 25% SW VIC (2012-13 actual) (2013-14 fcast) Milking Ha 214 259 141 143 Usable hectares 330 382 Average herd size 390 429 397 404 Stocking rate (cows per Ha) 1.82 1.66 2.82 2.83 Milk Solids pe
Slide 16: China & Australia Free Trade Agreement
China & Australia Free Trade Agreement For personal use only Dairy Farmers set to become the main beneficiaries of the FTA All Tariffs to be phased out by 2025 – New Zealand benefited from a similar agreement with its exports growing by $2.2Bn since 2007 Australian exports of liquid milk grown
Slide 17: Corporate Structure
Corporate Structure For personal use only Australian Dairy Farms Limited (Operating Company) • Operates the farms – owns the livestock • Revenue from milk sales and livestock trading • Leases farms from the stapled property trust • Potential participation in surplus live heifer exports Australian Da
Slide 18: Board & Management
Board & Management For personal use only • AHF has assembled an experienced board with ASX and NZX experience • Initially all roles are non-executive, with board members overseeing all management responsibilities in order to keep costs down and maximise shareholder returns • Intention is to install
Slide 19: Farm Management
Farm Management For personal use only • Manager/family living on site – overseeing day to day operations and milking • On-site management have clear KPI’s and are incentivised on production levels and costs • AHF has assembled a “best of breed” team of consultants to ensure maximum productivity and
Slide 20: Contacts
Contacts For personal use only Company enquiries: Investor/Media Enquiries: Adrian Rowley Simon Hinsley Director Investor Relations Australian Dairy Farms Group NWR Communications adrianrowley@adfl.com.au simon@nwrcommunications.com.au +61 3 9629 9900 +61 401 809 653 Page 19
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