Synlait Milk Ltd. · NZX:SML
Synlait Milk — Non-Deal Roadshow (October 2018)
18 slides from Synlait Milk's roadshow presentation, October 2018
Slide 1: Today Tomorrow
TO DAY TO MORROW Synlait Milk Limited October 2018
Slide 2: Disclaimer
I PG 2 DISCLAIMER Synlait Milk Limited October 2018 - This presentation is intended to constitute a summary of certain performance or achievements may differ materially from those - Forward looking statements in this presentation are unaudited and information about Synlait Milk Limited (“Synlait”).
Slide 3: To Day: CFO's Remarks, Strategic Update
TO DAY CFO’S REMARKS STRATEGIC UPDATE Synlait Milk Limited October 2018 I PG 3
Slide 4: To Day: CFO's Remarks
TO DAY CFO’S REMARKS - RECORD FULL-YEAR PROFIT OF $74.6 MILLION, UP 89% ON FY17 PRIMARILY DUE TO INCREASED CONSUMER PACKAGED INFANT FORMULA SALES VOLUMES - GROSS PROFIT PER METRIC TONNE UP 63% TO $1,294, DRIVEN BY CONSUMER PACKAGED INFANT FORMULA SALES INCREASING TO 28% OF TOTAL SALES (FY17 13%) - A
Slide 5: To Day: Strategic Update
TO DAY STRATEGIC UPDATE - STRENGTHENED RELATIONSHIP WITH THE A2 MILK COMPANY™ WITH ANNOUNCEMENT OF EXTENDED SUPPLY AGREEMENT - MANUFACTURING DIVERSIFICATION BEGUN WITH GROUND BREAKING ON SYNLAIT POKENO - EVERYDAY DAIRY CATEGORY EXPANSION BEGUN WITH: - ADVANCED LIQUID DAIRY PACKAGING FACILITY PROGRES
Slide 6: To Succeed: Our Categories
I PG 6 INGREDIENTS INFANT NUTRITION EVERYDAY DAIRY ADULT NUTRITION Synlait Milk Limited October 2018 OUR CATEGORIES WE WILL LEVERAGE OUR UNIQUE SUSTAINABLE VALUE CHAIN TO SUCCEED IN EACH CATEGORY TO BUILD SUCCESSFUL BUSINESSES THAT CONTRIBUTE TO OUR LONG-TERM SUCCESS SUSTAINABLE VALUE CHAIN ENVIRONM
Slide 7: Environment
I PG 7 ENVIRONMENT Synlait Milk Limited October 2018 2028 REDUCTIONS PER KGMS: - 35% less on-farm greenhouse gas (GHG) emissions - 50% less off-farm GHG emissions - 20% reduction in on-farm and off-farm water use - 45% reduction in nitrogen loss to waterways $1.3 million budgeted for PKE-free incent
Slide 8: People
I PG 8 PEOPLE Synlait Milk Limited October 2018 HEALTH, SAFETY AND WELLNESS - Total Recordable Injury Frequency Rate (TRIFR) decreased from 25.1 to 18.1 per million hours worked, a 28% improvement - Critical Risk Projects to manage health, safety and wellness priorities throughout organisation TALEN
Slide 9: Enterprise
I PG 9 ENTERPRISE Synlait Milk Limited October 2018 INVESTMENT IN INNOVATION - Targeting R+D spend in FY19 equal to 1.5% of revenue FOOD SAFETY AND QUALITY - Uphold highest quality and safety standards, the cornerstone of Synlait’s business SUSTAINABLE SUPPLY - Partner with farmers, suppliers and cu
Slide 10: Our Geographic Footprint
I PG 10 AUCKLAND • 35,000 MT infant formula canning capacity POKENO Synlait Milk Limited October 2018 • CNCA and SAMR registration in progress • Plant on schedule for 2019 / 2020 milk season commission • A1 protein-free and Lead With PrideTM milk pools being formed OUR GEOGRAPHIC PALMERSTON NORTH •
Slide 11: Synlait's Integrated Value Chain
I PG 11 SYNLAIT’S INTEGRATED VALUE CHAIN Synlait Milk Limited October 2018 RESEARCH + CATEGORY DEVELOPMENT - Select categories and markets - Design products - Innovate production and processes DIFFERENTIATED MILK SUPPLY MANUFACTURING CONSUMER PACKAGING - Three-year rolling contracts EXCELLENCE - Own
Slide 12: Dunsandel Manufacturing Excellence
I PG 12 MANUFACTURING EXCELLENCE Synlait Milk Limited October 2018 CONTRACTED FARMS WETMIX KITCHENS HIGH SPECIFICATION SPRAY DRYERS CONSUMER PACKAGING APPROX. 200 80,000 MT CAPACITY 120,000 MT CAPACITY 70,000 MT CAPACITY A1 PROTEIN-FREE WETMIX 2 D3 DUNSANDEL MILK WETMIX 1 D2 AUCKLAND GRASS FED™ DUNS
Slide 13: A Portfolio of Infant Formula Customer Partnerships
I PG 13 A PORTFOLIO OF INFANT FORMULA CUSTOMER PARTNERSHIPS Synlait Milk Limited October 2018 - Registration with State Administration - Five-year supply agreement for Market Regulation (SAMR - the signed in February 2018 replacement organisation for CFDA) - SAMR registration received in FY18 applic
Slide 14: To Morrow: CEO's Initial Observations, Outlook
I PG 14 Synlait Milk Limited October 2018 TO MORROW CEO’S INITIAL OBSERVATIONS OUTLOOK - GROWTH AND CAPABILITIES F19 OUTLOOK
Slide 15: CEO's Initial Observations
I PG 15 CEO’S INITIAL OBSERVATIONS Synlait Milk Limited October 2018 TO DAY TO DO TO MORROW INITIAL OBSERVATIONS WHAT ARE WE TRYING WHAT ARE OUR TO ACHIEVE CHALLENGES SYNLAIT IS FAST WHAT: - Concentration risk - Maintain growth and rapidly diversify - Focus and implementation risk SYNLAIT IS STRONG
Slide 16: Outlook: Growth and Capabilities
I PG 16 OUTLOOK Synlait Milk Limited October 2018 4 GROWTH: DEEPER AND BROADER = CHASE PROFIT POOLS NEW 1 Deepen relationships with existing customers and build into new categories 3 Ex pa 1 ns 2 Broaden customer base in core categories io n En gi ne 3 Accelerate development of new profit pools with
Slide 17: FY19 Outlook
I PG 17 FY19 OUTLOOK Synlait Milk Limited October 2018 MT CONSUMER PACKAGED INFANT FORMULA SALES 50,000 41,000 - 45,000 45,000 40,000 - Continued growth in a2MC volumes 35,580 35,000 - Expect SAMR approval for New Hope’s Akara brand and 30,000 Bright Dairy’s Pure Canterbury brand 25,000 - Expect fut
Slide 18: Investors and Media Contacts
INVESTORS MEDIA Clayton Cleek, CFA, Investor Relations Officer Dan Walraven, Corporate Affairs Manager +64 21 916 070 +64 27 836 7532 Clayton.Cleek@synlait.com Daniel.Walraven@synlait.com