Inghams Group Ltd. · ASX:ING
Inghams — Food & Beverage Focus Day 2019
19 slides from Inghams's conference presentation, Apr 4, 2019
Slide 1: Food & Beverage Focus Day
For personal use only Inghams Group Limited Food & Beverage Focus Day 4 APRIL 2019
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only 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
Slide 3: Company Overview
Further Processing Plant Edinburgh Parks, South Australia For personal use only 01 Company Overview
Slide 4: Long history since founding as a family business in 1918
100 year history For personal use only Ingham’s is progressing through the next phase of its evolution following a long and proud history since its founding as a family business in 1918 Nov-14: > Sale and leaseback of 51 properties Nov-16 Not exhaustive, > Initial public offering on the ASX 1990s: i
Slide 5: Ingham's overview
Ingham’s overview For personal use only The largest vertically integrated poultry producer across Australia and New Zealand, with a long-standing reputation for quality and service FY18 revenue: A$2,374m Poultry Stockfeed > Stringent biosecurity regulations restrict imports to ANZ > The Australian s
Slide 6: Attractive industry structure
Attractive industry structure For personal use only Domestic demand for chicken is met by domestic producers, with stringent biosecurity regulations restricting imports to Australia and New Zealand Import restrictions Biosecurity controls Australia New Zealand Department of NZ Customs and Governing
Slide 7: Vertically integrated operations
Vertically integrated operations For personal use only Complex supply chain supported by integrated planning and optimisation Integrated Planning and Optimisation Feedmilling Further Warehousing and distribution processing Breeder farms Quarantine Primary Genetics GGPs1 GPs2 Parents Hatcheries Broil
Slide 8: Large scale network, with high quality asset base
Large scale network, with high quality asset base For personal use only Ingham’s national scale and vertically integrated operations provide a number of benefits, including production flexibility, cost efficiencies and reducing operating or agricultural risks Facilities / farms1 Type Australia NZ To
Slide 9: Favourable production economics
Favourable production economics For personal use only Driven by genetic improvements, feed and nutrition and ‘industrialisation’ of the supply chain Indicative FCR1,2 Improvement drivers (kg of feed to produce 1kg liveweight) 9.2 - 13.8 Genetic > Selective breeding techniques have improved the 16 im
Slide 10: Long-term customer relationships
Long-term customer relationships For personal use only Brand reputation for quality and service, supporting long term customer relationships Ingham’s is a well recognised brand Long-term customer relationships Customer Years of uninterrupted supply > Ingham’s brand founded in 1918 Australia > Strong
Slide 11: Group highlights
Broiler Farm South Australia For personal use only 02 Group highlights
Slide 12: Group highlights
Group highlights For personal use only Growing volumes and earnings with strong cash flow > Core Poultry volume growth of 3.0% across ANZ > Accelerate (Continuous Improvement Process) continues to deliver improved returns despite challenges in the New Zealand business Highlights > Rising feed costs
Slide 13: Financial highlights – H1 FY19 vs FY18
Financial highlights – H1 FY19 vs FY18 For personal use only Core Poultry Gross EBITDA EBITDA NPAT NPAT Net Debt EPS Interim Volume Profit (underlying) (underlying) Dividend 207.5kt $250.2m $109.6m $152.0m $55.4m $84.4m $234.5m 22.6 cps 9.0 cps ↑ 3.0% ↑ 2.9% ↑ 3.6% ↑ 30.8% ↓ 5.3% ↑ 28.5% ↑ 89.1m ↑ 2
Slide 14: Business update
Feed mill Berrima, New South Wales For personal use only 03 Business update
Slide 15: Business update
Business update For personal use only > Automation delivering benefits in improved processing yields and reduced unit costs across major Primary plants – program continues with deboning initiatives (New Zealand) and further opportunities in process streamlining Project > Labour savings continue to b
Slide 16: Business update – Feed operations
Business update For personal use only > Inghams has progressed the objective of self sufficiency for own use and the business focus is now on improving mill utilisation in relation to third party sales > The Murray Bridge (SA) greenfield site is now fully operational and supplying all of Inghams req
Slide 17: Outlook
Breeder Farm Matamata, New Zealand For personal use only 04 Outlook
Slide 18: Outlook
Outlook For personal use only > Demand for poultry products growing at historical levels > Project Accelerate (Continuous Improvement Process) on track and the opportunity pipeline is strong > New strategic direction to be shared in Q4 > Wheat cost dropped recently but next couple of months will pro
Slide 19: For personal use only
NGHAM ; Heart of the Table =——