A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — FY2014 Earnings Presentation
13 slides from A2 Milk's earnings presentation, Aug 28, 2014
Slide 1: FY14 Results Presentation
TM FY14 Results Presentation 28 August 2014 Geoffrey Babidge Managing Director & CEO 1
Slide 2: FY14 Result Highlights
FY14 Result Highlights Revenue Australia record Progress in Growth sales and offshore growth 17% earnings initiatives • Total Operating Revenue of $111.300 million • Net Profit After Tax of $10,000 impacted by adverse NZD/AUD exchange rate movement • Continuing strong balance sheet position • Austra
Slide 3: Financial Highlights
Financial Highlights NZ$m FY13 FY14 % change • Revenue growth of 17% on prior year Sales 94.3 110.6 +17% • EBITDA and EBIT after costs of market entry in UK in second half FY14 and NPAT 4.1 - -100% China for FY14 and Corporate costs EBITDA 10.6 3.6 -66% • Share of costs associated with a2 Milk (UK)
Slide 4: Financial highlights (cont'd.)
Financial highlights (cont'd.) FY14 EBITDA (NZ$m) Australia China NZ UK 4
Slide 5: Australia – Continues strong growth
Australia – Continues strong growth • Total revenue increased 31% in AUD YOY – a2Milk™ fresh milk sales increased 24% in AUD YOY – Market share of a2Milk™ increased to circa 9% by value in grocery (Australian Grocery Weighted Scan, June 2014) – a2Platinum® and a2™ Thickened Cream contributed to sale
Slide 6: United Kingdom – New business plan under way
United Kingdom – New business plan under way • Acquisition of MWD interest in A2 Milk (UK) and contract pack agreement from January 2014 • New structure provides increased control and a2MC to benefit from 100% of future value • Sale of RWD to Muller in 2012 resulted in significantly slower distribut
Slide 7: China – Infant Formula regulation changes slowed momentum
China – Infant Formula regulation changes slowed momentum • First sales of a2Platinum® infant formula to China consumers from November 2013 • New Asia regional structure in place in Sydney and Shanghai from January 2014 • Changes in China regulatory environment during 2nd half FY14 - Consolidation o
Slide 8: North America – Market entry plan
North America – Market entry plan • a2MC Board has confirmed the USA milk market as the next priority growth initiative • Strong IP and know-how in the USA, consumer research confirms significant potential for the a2Milk™ proposition in this market • Market entry plan developed over the past 12 mont
Slide 9: Intellectual Capital – Investment and development continues
Intellectual Capital – Investment and development continues • a2MC continued to invest in building its portfolio of IP: trademarks, patents, proprietary processes and know-how • Applications were made for the registration of additional new patents • New global brand vision is well progressed, first
Slide 10: The a2 Milk Company Strategic Growth Roadmap
The a2 Milk Company™ Strategic Growth Roadmap STRATEGIC INTENT KEY EXTERNAL FACTORS STRATEGIC PRIORITIES • Opportunity Opportunityforfor consumption expansion and share of a2® • Evolve branding and communication to expansion of a2Milk™ market share build further brand penetration and Building a majo
Slide 11: For more information visit our new corporate website
For more information why not visit our new corporate website www.thea2milkcompany.com 11 11
Slide 12: Reconciliation of non GAAP measures
Reconciliation of non GAAP measures % NZ$m FY13 FY14 change Australia Segment Profit1 3.6 4.5 +25% China Segment Profit1 (0.1) (1.7) +1256% New Zealand Segment Profit1 6.7 3.0 -55% UK & Unallocated Segment Profit1 (0.4) (2.2) +400% EBITDA including non-recurring items2 9.8 3.6 -63% EBITDA2 10.6 3.6
Slide 13: Disclaimer
Disclaimer This presentation dated 28 August 2014 provides additional comment on the market release of the same date. As such, it should be read in conjunction with, and subject to, the explanations and views in those documents. This presentation is provided for information purposes only. The inform