Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — H1 FY2015 Earnings Presentation
13 slides from Australian Agricultural's earnings presentation, Nov 19, 2014
Slide 1: For personal use only
For personal use only
Slide 2: Disclaimer
Disclaimer Important information Summary information only This presentation contains general information about the Australian Agricultural Company Limited and its consolidated entities (‘AACo") and its activities current as at the date of this presentation. It is provided in summary and does not pur
Slide 3: For personal use only
For personal use only Notes: 1. A new metric used internally to measure performance. This measure is based on a standard cost accounting methodology and seeks to avoid the cattle market-price driven volatility apparent in the statutory financial numbers by not recognising any unreali
Slide 4: For personal use only
For personal use only Notes: 1. Prior corresponding period (pcp) – 6 months to 30 September 2013 2. EBITDA represents Net Profit After Tax (NPAT) + tax expense + finance costs + depreciation, amortisation and impairment
Slide 5: For personal use only
For personal use only Grainfed Northern Beef Grassfed Sales, Marketing & • Wagyu Manufacturing Live Sales Distribution • Shortfed/Other Beef Logistics Margin Margin Margin 3rd Party Livingstone Processing Processors Beef Backgrounding Grassfed Production /Feedlots Young Cattle Properties Purchasing
Slide 6: For personal use only
For personal use only Grainfed Northern Beef Grassfed Capital Employed ~$200m ~$100m ~$800m Main Product Differentiated, branded beef Quality manufacturing beef Live cattle sales Key Drivers • Global beef prices • Global beef prices • Climatic conditions • Grain prices • Domestic cattle prices and •
Slide 7: 1H FY15 vs 1H FY14 performance according to different metrics
For personal use only 1H FY15 vs 1H FY14 performance according to different metrics 20,000 10,000 0 Statutory EBITDA -10,000 $000 -20,000 Operating EBITDA -30,000 Cash flow from operations (before finance costs) -40,000 -50,000 -60,000 1H FY14 1H FY15 Operating EBITDA by Vertical 15,000 10,000 5
Slide 8: Branded Beef Sales
For personal use only Branded Beef Sales Branded Beef Sales by Region 14.0 12.0 14.00 12.00 12.0 Other 10.0 5.5 10.00 10.0 MENA 8.0 mil kg sw $/kg sw EU and Russia mil kg sw 8.00 8.0 4.7 6.0 SE Asia 6.00 6.0 4.0 North America 6.5 4.00 4.0 North Asia 2.0 4.3 2.00 2.0 Australia Pacific - - 0.0 1H FY14
Slide 9: For personal use only
For personal use only 6 months to 6 months to 30 September 2014 30 September 2013 KG produced - mil kg lwt 12.2 12.1 Finished cattle purchases - mil kg cwt 6.2 3.5 Store cattle purchases - mil kg lwt 9.6 4.3 Processing cost - $/kg cwt 1.13 1.13 Cost of production - $/kg lwt 3.50 3.27 Finished ca
Slide 10: Aerial Photo of Darwin Facility – October 2014
For personal use only Aerial Photo of Darwin Facility – October 2014 US 90 CL cow beef prices
Slide 11: External Cattle Sales / Internal Transfers
For personal use only External Cattle Sales / Internal Transfers (kg lwt) Live Export Market (Indonesian Light Steer Prices) 60.0 56.1 260 50.0 12.0 240 220 40.0 Live Export Sales Ac/kg lwt 200 15.0 mil kg lwt Grassfed Sales 180 30.0 Store Sales 21.7 160 Wagyu - Transferred to Grainfed 20.0 16.9 140
Slide 12: For personal use only
For personal use only 6 months to 6 months to 30 September 2014 30 September 2013 KG produced - mil kg lwt 29.2 31.2 Cost of production - $/kg 1.36 1.53 Purchases - mil kg lwt 14.8 0.8 Purchase cost - $/kg lwt 1.27 1.79 6 months to 6 months to (‘000 head) 30 September 2014 30 September 2013 Clos
Slide 13: Summary
Summary In July this year we outlined our strategy, which at its core involves transitioning the business towards higher-value branded beef, and away from less stable domestic cattle prices. Since then we have been singularly focussed on executing this strategy The results of the first half of FY15
Australian Agricultural Company — H1 FY2015 Earnings Presentation on 6ix