Bega Cheese Limited · ASX:BGA
Bega Cheese — Shareholder Meeting (October 2020)
33 slides from Bega Cheese's shareholder meeting presentation, Oct 1, 2020
Slide 1: FY2020 Annual General Meeting
FY2020 Annual General Meeting Barry Irvin – Executive Chairman Paul van Heerwaarden – CEO
Slide 2: Agenda
Agenda FY2020 Annual Report Chairman’s report Chief Executive Officer’s report Questions Approval of remuneration report Election of Directors Page 2
Slide 3: Welcome
Welcome Shareholders Suppliers PricewaterhouseCoopers Addisons Lawyers Link Market Services Bega Cheese staff Apologies Page 3
Slide 4: FY2020 Annual Report - Chairman
FY2020 Annual Report Barry Irvin – Executive Chairman
Slide 5: Key message
Key message Resilient business – successfully managing drought, flood, fire, COVID-19 etc. Continued revenue growth Significant cash generation/debt reduction Successful commissioning of Koroit lactoferrin facility Implementation of organisation and process review Rationalisation of proc
Slide 6: Values
Values Page 6
Slide 7: Transformation to becoming 'The Great Australian Food Company'
Transformation to becoming ‘The Great Australian Food Company’ FOURTH TRANSFORMATION 2019 2017 THIRD TRANSFORMATION ACCELERATING GROWTH 2011 SECOND TRANSFORMATION NEW BUSINESS PLATFORM FIRST TRANSFORMATION 2008/09 STRUCTURED FOR THE FUTURE 2007 GROW AND DIVERSIFY 2001 Customer and consumer focussed
Slide 8: Performance highlights
Performance highlights Revenue increased by 5% to $1.5 billion Operating cash flow increased 37% to $138 million Net debt reduced by $52 million to $236 million Export sales increased 15% to $523 million Normalised EBITDA decreased by 2% to $103.0 million Page 8 * See note 32 (Annual Repor
Slide 9: FY2020 Annual Report - CEO
FY2020 Annual Report Paul van Heerwaarden – Chief Executive Officer
Slide 10: Reconciliation of normalised result
Reconciliation of normalised result Per Financial Legal ERP Koroit Normalised Consolidated Statements Costs Costs Acquisition Outcome Period Ending 30 June 2020 $’000 $’000 $’000 $’000 $’000 Revenue 1,493,219 - - - 1,493,219 Cost of sales (1,204,171) - - - (1,204,171) Gross profit 298,048 - - - 289,
Slide 11: Balance sheet
Balance sheet FY2020 *FY2019 $m $m Cash 22.9 28.8 Trade and other receivables 117.4 179.9 Inventories 257.4 272.6 Property, plant and equipment 454.7 443.3 Intangible assets 548.1 546.1 Total Assets 1,423.4 1,501.2 Trade and other payables 253.4 274.9 Borrowings (net of costs) 258.5 316.1 Total Liab
Slide 12: Cash flow
Cash flow FY2020 FY2019 $m $m Receipts from customers 1,691.6 1,422.1 Payments to suppliers (1,494.9) (1,476.8) Net proceeds from trade receivables facility (35.4) 188.6 Interest and other costs of financing paid (11.3) (20.4) Income tax paid (12.3) (13.3) Operating activities 137.7 100.3 Proceeds f
Slide 13: New segment reporting
New segment reporting Dairy ingredients (bulk) Milk processing Business to business dairy ingredient sales (Australian and international) Dairy nutritionals Consumer packaged goods (branded) Secondary processing Retail and food service brands Retail packaged goods (including private labe
Slide 14: New segment reporting
New segment reporting FY2020 *FY2019 $’000 $’000 Sales to external customers in Australia Branded 649,842 612,944 Bulk 319,900 352,303 Total Sales to external customers in Australia 969,742 965,247 Sales to external customers in other countries Branded 228,726 209,189 Bulk 294,751 245,516 Total sale
Slide 15: Group sales
Group sales $1.6b $1.4b $1.2b $1.0b $0.8b $0.6b $0.4b $0.2b $0.0b 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Page 15
Slide 16: Strong revenue growth with launch of new brands and products
Strong revenue growth with launch of new brands and products Domestic retail grocery market grew by 10.5% in FY2020 Spreads category growth of 9.8% (5.8% volume growth) Cheese category growth of 11.7% (4.2% volume growth) Stronger in last four months due to impact from COVID-19 (pantry filli
Slide 17: Dairy commodity and farm gate milk prices
Dairy commodity and farm gate milk prices Improved seasonal conditions in 2H FY2020 Milk supply outlook positive Successful implementation of new dairy code of conduct Highly competitive milk procurement environment Export trend index – global commodity prices and Australian currency impact
Slide 18: Operations review
Operations review • Organisation and process review • Secondary manufacturing footprint • Factory optimisation • Logistics network consolidation • Common ERP platform Page 18
Slide 19: Approach to Corporate Social Responsibility
Approach to Corporate Social Responsibility our focus is on the five areas where we can have the greatest impact Aligned with the United Nations Global Compact Food nutrition Diversity, inclusion Greenhouse gases Packaging Water sustainability and equality sustainability Highlights FY2020 Highlights
Slide 20: FY2020 Annual Report - Chairman
FY2020 Annual Report Barry Irvin – Executive Chairman
Slide 21: Where are we today?
Where are we today? Transition to diversified value added food company well progressed COVID-19 varying impact on market channels Supply chain and operational issues due to COVID-19 under control Global uncertainty related to dairy demand Stabilised milk procurement environment Business
Slide 22: Our priorities
Our priorities Continue investment in brands and capability Expanding our international footprint Focus on cash generation and costs Leveraging and rationalising existing assets and product capacities Protect and diversify current milk supply Phase 2 of operational process review optimis
Slide 23: Page 23 Bega Cheese Limited
Page 23 Bega Cheese Limited
Slide 24: Formalities and voting
FY2020 Annual General Meeting Formalities and voting Barry Irvin – Executive Chairman
Slide 25: Voting procedure
Voting procedure A poll is being held for all resolutions Share registrar Ms Julie Stokes of Link Market Services Limited will act as Returning Officer in relation to the polls Login to the portal (https://agmlive.link/BGA20) and follow the prompts to vote Results available on ASX after the
Slide 26: Resolutions
Resolutions Adopt remuneration report for the year ended 30 June 2020 Election of Directors Terry O’Brien Peter Margin Retiring Directors Richard Parbery Jeff Odgers Page 26
Slide 27: Remuneration report
Remuneration report Pages 17 to 26 of the 2020 Annual Report Board, Executive Chairman, CEO and other key management personnel Market data and external advisors Total Votes – 104,018,889 (48.35%) For– 101,134,131 (97.23%) Open– 2,247,186 (2.16%) Against– 637,572 (0.61%) Page 27
Slide 28: Election of Directors
Election of Directors Terry O’Brien Peter Margin Page 28
Slide 29: Terry O'Brien
Terry O’Brien Total Votes – 106,775,720 (49.63%) For– 103,688,162 (97.11%) Open– 2,250,599 (2.11%) Against– 836,959 (0.78%) Page 29
Slide 30: Peter Margin
Peter Margin Total Votes – 106,765,666 (49.62%) For– 104,213,081 (97.6%) Open– 2,255,935 (2.11%) Against– 296,650 (0.28%) Page 30
Slide 31: Retiring Directors
Retiring Directors Richard Parbery Jeff Odgers Page 31
Slide 32: Page 32
Page 32
Slide 33: Disclaimer
Disclaimer The following disclaimer applies to this presentation and any information provided in this presentation (Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any Information. This presentation has been prepared by B