Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — FY2023 Earnings Presentation
25 slides from Australian Agricultural's earnings presentation, May 18, 2023
Slide 1: FY23 Results Presentation
FY23 Results Presentation May 2023
Slide 2: Important Information
Important Information Summary information only • any responsibility arising in any way for any or may not occur). Such forecasts and livestock profitably, the actions of competitors investors should consider these factors, errors in or omissions from any information statements can generally be ident
Slide 3: Contents
Contents Executive Summary 05 Progress in FY23 07 Sustainability Update 08 Regional Performance 09 Financial Performance 14 Operating Outlook 21 FY23 Results Presentation P3
Slide 4: We're evolving together to benefit future generations
We’re evolving together to benefit future generations FY23 Results Presentation P4
Slide 5: Executive Summary
Executive Summary Operating Profit Statutory Net Profit after Tax • Total revenue of $313.4M, representing growth of $37.4M (~14%) $67.4M • Unrealised fair value gains from live kg production and herd growth of 13% to 433k $4.6M vs $49.9M pcp vs $136.9M pcp • Strong price growth driving higher meat
Slide 6: Our Strategy
Our Strategy Delivering full potential from our brands Our Purpose Developing our natural resources and assets We’re evolving together to benefit future generations A simpler and more efficient AACo Our Vision Executing on our sustainability framework To be trusted globally as the producers of the f
Slide 7: Progress in FY23
Progress in FY23 Delivering full potential from our brands +17% +22% Wagyu Meat Sales1 Branded Meat Sales2 $/Kg CW in North America Developing our natural resources & assets 388 Trial dryland Increasing capacity of Intensive Supply Chain Solar Bores 6k ha cropping underway (>60% Converted) A simpler
Slide 8: Sustainability Update
Sustainability Update Continued progress against our commitments • Avoided 191k tonnes of carbon emissions, generating $7.3M in ACCUs • 388 bores now converted to solar (62%); on-track for FY24 completion • First stage asparagopsis trial completed • Continued innovation, focused on improving the env
Slide 9: Regional Performance
Regional Performance FY23 Results Presentation P9
Slide 10: North America
North America Branded Meat Sales1 19% 22% Market Price/Mix Revenue Growth 3% Market Volume Key strategic region, a continued priority for expansion • Deepening our engagement and collaboration within established networks of customers across this highly strategic market, supporting price growth • Wes
Slide 11: Asia
Asia Branded Meat Sales1 16% 13% Market Price/Mix Revenue Growth (3%) Market Volume Represents a core strategic market • Price uplifts on slightly lower volumes • Expanded brand visibility, value-add promotions and in-store tastings to support premiumisation of Darling Downs in Korea • Further inves
Slide 12: Australia
Australia Branded Meat Sales1 11% 13% Market Price/Mix Revenue Growth 2% Market Volume Our spiritual home and always a key focus • Targeted menu placements with influential chefs and iconic restaurants who best represent the Westholme brand • Continuing to build brand awareness Chef Scott Pickett No
Slide 13: Europe/Middle East
Chef Jonathan Capitaine Le Boeuf Volant Europe/Middle East Paris, France Branded Meat Sales1 34% 43% Market Price/Mix Revenue Growth 9% Market Volume Area of selective growth, expanding into new, affluent markets • Strengthening our partnerships and collaborations with our distribution partners • Bu
Slide 14: Financial Performance
Financial Performance FY23 Results Presentation P14
Slide 15: Highlights
Growth Profit Cash Flow/Net Assets Total Revenue Operating Operating Profit Cash Flow $313.4M $67.4M $16.0M + 14% vs pcp + 35% vs pcp (34%) vs pcp Wagyu Meat Operating Net Tangible Sales Price Profit Margin Assets $21.98/kg 21.5% $2.59/Share + 17.3% vs pcp + 3.4 ppt vs pcp + 14% vs pcp Highlights (+
Slide 16: Revenue
Revenue Higher meat sales pricing and strategic mix and market allocation driving improved overall revenue Meat Sales Revenue Cattle Sales Revenue +$36.5M +$0.8M • Average Wagyu beef sales price increase of 17.3% $3.2M $2.4M (11.4% constant currency basis) driven by improved $1.5M average pricing ac
Slide 17: Profit and Loss Summary
Profit and Loss Summary Profit and Loss Summary ($M) Stronger sales margins driving operating profit FY23 FY22 Var of $67.4M vs $49.9M Meat Sales 245.0 208.5 36.5 Cattle Sales 68.4 67.5 0.9 Increase in gross margin to $120.8M vs $95.6M: Total Sales Revenue 313.4 276.1 37.4 Cost of Goods Sold valued
Slide 18: Cash Flow Summary
Cash Flow Summary Consolidated Statement of Cash Flows ($M) Positive operating cash flow generation of FY23 FY22 Var +$16.0M (+$24.2M pcp) Receipts from Customers 335.8 297.3 38.5 Reduced net operating cash flow driven primarily by: Payments to Suppliers and • 19% increase in liveweight kgs produced
Slide 19: Balance Sheet Summary
Balance Sheet Summary Consolidated Statement of Financial Position ($M) Net assets increase to $1.6B supporting 31 Mar 31 Mar strong financial position 2023 2022 Livestock 735.2 736.2 Livestock balance materially consistent PPE & Intangibles 1,548.8 1,245.4 • Unrealised fair value gains from herd gr
Slide 20: Operating Environment
Operating Environment FY23 Results Presentation P20
Slide 21: Operating Outlook
Operating Outlook Strong demand for quality Australian beef, with the Company well positioned to navigate challenging global conditions • Exceptional wet season across AACo’s properties puts the Company in a good position, with strong pasture growth • AACo has begun an expansion of Goonoo, increasin
Slide 22: Closing Remarks
Closing Remarks FY23 Results Presentation P22
Slide 23: Questions
Questions FY23 Results Presentation P23
Slide 24: Appendix
Appendix FY23 Results Presentation P24
Slide 25: Definitions
Definitions Term Definition Cost of Goods Sold (COGS) valued “at cost” Represents the actual production cost the Company incurred over the multi-year timeline required to produce the meat and cattle that were sold during the period. This is in contrast to Cost of Goods Sold as presented in the statu
Australian Agricultural Company — FY2023 Earnings Presentation on 6ix