Arborgen Holdings Limited · NZX:ARB
Arborgen — FY2025 Earnings Presentation
20 slides from Arborgen's earnings presentation, Mar 31, 2025
Slide 1: FY25 Results Presentation
FY25 Results Presentation For the 12 months ended 31 March 2025 All financials in USD unless otherwise stated
Slide 2: FY25 Numbers at a Glance
FY25 NUMBERS AT A GLANCE For the year ended 31 March 2025. Percentage comparatives to prior year. All numbers in USD unless stated otherwise. SEEDLING UNIT SALES REVENUE GROSS PROFIT NET LOSS AFTER TAX 327.8m $63.2m $18.2m $(21.5)m1 FY24: 369.2m FY24: $67.7m FY24: $24.0m FY24: $(0.2)m NET DEBT2 ADJ
Slide 3: Our Vision
OUR VISION To be the world-leading provider of value- added, high-quality seedlings for the forestry industry…creating thriving forests that benefit landowners, the environment, and future generations through unmatched industry expertise. 3
Slide 4: ArborGen is a leading provider of advanced genetics for the forestry industry
• Focused on continued growth ArborGen is a in our target markets, being the US South and Brazil leading provider • Unparalleled product portfolios in each of our core of advanced markets genetics for the • Decades of investment in research and intellectual forestry industry property that is now bea
Slide 5: US South Our Strategy
US SOUTH OUR STRATEGY Expand market and increase Mass Control Pollinated (MCP®) adoption Market overview • Low market demand driven by macro-conditions • ArborGen is a key player, with one of impacting the sector – both pulp and timber mills the largest capacities for advanced curtailing demand due
Slide 6: Brazil Our Strategy
BRAZIL OUR STRATEGY Opportunistic and measured expansion Market overview • The world’s largest producer and exporter of hardwood • Leveraging our strong position in the pine and eucalyptus seedling pulp markets • Rapid expansion in sector production capacity, driving • Replicating our US strategy to
Slide 7: FY25 Performance Snapshot
FY25 PERFORMANCE SNAPSHOT BUILDING RESILIENCE AS MARKET CHALLENGES PREVAIL Continued growth in Brazil; US headwinds persist Weather, market and operational challenges impacting results Decisive steps taken with positive momentum being seen Long term macro trends remain positive Clear pathway to futu
Slide 8: Dual Pathway Strategy
DUAL PATHWAY STRATEGY Driving growth and leveraging long term demand trends GO TO MARKET OPERATING STRENGTH Grow demand and sales of higher value Enable a strong foundation for the future advanced genetics seedlings • Strengthen the organisation and develop • United States: Expand market and a perfo
Slide 9: FY25: Go to Market
FY25: GO TO MARKET Grow demand and sales of higher value advanced genetics seedlings UNITED STATES BRAZIL MARKET DRIVEN GENETICS FOR THE FUTURE • Challenging macro and market conditions • Dynamic market with significant continuing for longer than anticipated, US increase in market participants and C
Slide 10: FY25: Operational Strength
FY25: OPERATIONAL STRENGTH Enable a strong foundation for the future OPTIMISE TOTAL PRODUCTIVITY STRENGTHEN THE ORGANISATION AND BUILD A PERFORMANCE CULTURE • Expanded container production and acquired two nurseries • Continuing to optimise our footprint and operations and achieve cost savings: • Di
Slide 11: FY25 Financial Highlights
FY25 FINANCIAL HIGHLIGHTS Strengthening the business while navigating challenging conditions US $m FY25 FY24 • Economic, market and weather challenges impacting results Revenue 63.2 67.7 • Net Loss After Tax includes a non-cash $21.8m write down Gross Profit 18.2 24.0 of intangible assets1 Net Loss
Slide 12: FY25 Seedling Sales and Revenue
FY25 SEEDLING SALES AND REVENUE Maintained volumes in Brazil with US sales reflective of low market cycle SALES REVENUE US$M • Seedling volumes down 11% yoy, revenue 67.7 63.2 down 7% -3.7 -0.8 o US sales revenue down 9% yoy, as expected, driven by recessionary market conditions and slow housing mar
Slide 13: US South
US SOUTH Challenging macro and market conditions continuing for longer than anticipated SALES REVENUE US$M 41.2 • Revenue of $37.5m, down 9% on prior year 39.3 37.5 • Economic headwinds continuing to impact across the industry, particularly residential building market, resulting in lower demand • Su
Slide 14: Brazil
BRAZIL Reset of the business after period of rapid growth, strong long term fundamentals SALES REVENUE • Brazil revenue up 11% in local currency, despite LOCAL CURRENCY BRL R$M 144 weather-related impact on sales and production 130 cycles. USD 3% yoy reduction as a result of foreign exchange convers
Slide 15: US GAAP EBITDA
US GAAP EBITDA Adjusted US GAAP EBITDA in line with guidance US GAAP EBITDA $USM • Adjusted US GAAP EBITDA of $8.8m, in line 12.8 with guidance – below FY24 record result but 11.2 similar to FY23 10.3 9.2 8.8 • US GAAP EBITDA up 47% to $11.2m 7.6 • FY25 one-off, unusual and other adjustments of $2.4
Slide 16: Capital Expenditure
CAPITAL EXPENDITURE FY25 reflects investment into production expansion and resilience FY25 capital expenditure of $7.7m includes: CAPITAL EXPENDITURE $USM • Expansion of container capacity at two US nurseries 7.7 • Cooler expansion for hardwoods at US Nursery • Deep well addition at US nursery 5.4 •
Slide 17: Balance Sheet Summary
BALANCE SHEET SUMMARY US $m FY25 FY24 • Disciplined management of working capital Debtors 12.8 12.6 • Increase in inventory due to growth of business Inventory1 38.4 35.1 Creditors (12.9) (14.3) • Cash flow slightly lower due to lower EBITDA Working Capital 38.0 33.4 • Net debt reflects capital expe
Slide 18: Outlook
OUTLOOK As macro pressures ease, particularly in US, market demand is expected to increase. Anticipated improvement in revenue and gross margin • BRAZIL: Volumes expected to grow, driven by increased growing areas and seedling availability, some impact on pricing from the current excess capacity and
Slide 19: Adjusted US GAAP Reconciliation
ADJUSTED US GAAP RECONCILIATION 1. Under US GAAP, from a statutory reporting perspective, the classification of the Fiscal year ending March US$m Mar expense items, and other significant items in this table may differ from what is 2025 presented in the financial statements. US GAAP 2. US GAAP EBITDA
Slide 20: Disclaimer
DISCLAIMER This presentation has been prepared by ArborGen Holdings Limited (“ArborGen”), to provide an overview of the performance of ArborGen and its activities at the date of this presentation. It is not prepared for any other purpose and must not be provided to any person other than the intended