Noumi Limited · ASX:NOU
Noumi — Investor Presentation (November 2020)
25 slides from Noumi's investor presentation, Nov 30, 2020
Slide 1: FY20 Financial Results
freed GROUP Making food better FY20 FINANCIAL RESULTS FREEDOM FOODS GROUP LIMITED 30 NOVEMBER 2020 MAKING FOOD BETTER
Slide 2: Disclaimer
The following disclaimer applies to this presentation and any information provided in this presentation (Information). This presentation has been prepared on information available at the time of its preparation. The Information is in summary form and does not purport to be complete. Except as requir
Slide 3: Executive summary and way forward
1. Executive summary ▪ Background ▪ FY20 results ▪ Operational impacts on FY20 results ▪ Summary of accounting matters ▪ Earnings and balance sheet summary ▪ COVID-19 impact on FY20 results ▪ Segment results 2. Way forward ▪ Company strategy ▪ Leverage position ▪ Proposed way forward Q&A Appendices
Slide 4: 1. Executive summary
Background FY20 results Operational impacts on FY20 results Summary of Accounting Matters Earnings and balance sheet summary COVID-19 impact on FY20 results Segment results 1. Executive summary are nooe freedom, GROUP Making food bette:
Slide 5: Key messages
Comment ▪ Financial position of the Group has now been established following a rigorous process with independent advisers ▪ Financial position necessitates a significant recapitalisation Key messages ▪ Shareholders will need time to understand the results before any recapitalisation occurs ▪ Freedom
Slide 6: FY20 results and restatement impacts
Comment ▪ Total revenue of $580 million, an increase of 26% on FY19 revenue (restated) ▪ Adjusted EBITDA (pre-AASB16) loss of $86.5m, compared to a loss of $88.0m in FY19 (restated) ▪ Statutory net loss after tax of $174.5 million in FY20, compared to net loss of $145.8 million in FY19 (restated) ▪
Slide 7: Operational highlights by segment
Dairy & Nutritionals Plant Based Beverages ✓ Processed 304m L of UHT milk at Shepparton1 ✓ Strong growth in MILKLAB, with 73% growth in sales ✓ Total UHT processing capacity of 500m L2 ✓ New distribution pathways, including partnership with McCafé for MILKLAB Almond ✓ 4.1% growth in UHT export volum
Slide 8: FY20 performance impacted by operational matters
FY20 performance was impacted by the following operational matters Description Mitigating steps being undertaken ▪ Delays in the commissioning of new capacity at Shepparton ▪ Now achieving more consistent operational performance at plant, resulting in higher wastage, under-recovery of protein Sheppa
Slide 9: Summary of accounting matters
Accounting policy / practice Impact $m ▪ Capitalisation practices have been reviewed and amended with costs reclassified. Only directly attributable expenses CWIP / fixed assets $372.8m to be capitalised. Assets start to be depreciated when regularly producing saleable product Inventory ▪ Inventory
Slide 10: Group earnings and balance sheet summary
▪ Group performance is shown for FY19 on a restated basis FY19 Change Change 12 months to 30 June ($m) FY20 (restated) ($) (%) ▪ Net sales increased 26% to $580 million, with domestic sales up 25% to $470 million and export sales up 29% to $110 million Revenue $580.2 $461.8 $118.4 26% ▪ Adjusted EBI
Slide 11: COVID-19 impact on FY20 results
▪ Staff safety, shift protocols, wellbeing program in place, and flexible and remote work practices enacted ▪ COVID-19 negatively affected revenue and EBITDA – Consumer demand temporarily shifted from Out-of-Home to the grocery channel – The profitability of the grocery channel is materially lower t
Slide 12: Dairy and Nutritionals summary of performance
Summary of performance Financial results ▪ Revenue rose 37% to $363 million, with the business experiencing an FY19 Change Change ($m) FY20 unprecedented spike in demand for UHT milk as a result of pantry (restated) ($) (%) stocking caused by the COVID-19 lockdowns, a rise in exports to Asia and Rev
Slide 13: Plant-based Beverages summary of performance
Summary of performance Financial results ▪ Revenue increased 30% to $132 million as the plant-based beverages FY19 Change Change ($m) FY20 segment experienced strong growth across all channels and all brands, (restated) ($) (%) particularly MILKLAB Revenue $132.3 $101.5 $30.8 30% ▪ Adjusted EDITDA p
Slide 14: Cereal and Snacks summary of performance
Summary of performance Financial results ▪ While the Group retained its leadership position in the growing health FY19 Change Change ($m) FY20 food cereal market, overall revenue declined 14% to $70 million ($81 (restated) ($) (%) million in FY19), with the adjusted EBITDA pre-AASB16 loss rising sli
Slide 15: Specialty Seafoods summary of performance
Summary of performance Financial results ▪ Revenue of $15 million was broadly in line with FY19 ($14.5 million), ($m) FY20 FY19 Change Change with the segment returning to profitability with adjusted EBITDA of (restated) ($) (%) $0.2 million, compared to a loss of $2.9 million in FY19 Revenue $15.0
Slide 16: 2. Way forward
a. Company strategy b. Leverage position c. Proposed way forward freedom, GROUP Making food bette:
Slide 17: Company strategy
▪ The Company has reviewed its operations with a view to focusing on segments with the greatest opportunity for further growth – Freedom Foods and its advisers are reviewing all strategic options for its Cereal and Snacks businesses – while actively pursuing a Fix and Retain strategy, we are also ex
Slide 18: Summary of net debt
Summary of net debt (pre-AASB16 lease liabilities) Extensive process undertaken ($m) 30-Jun-20 31-Dec-19 Change ▪ The Group has reviewed options to recapitalise the business – through ($) debt, equity or a combination of both – with proceeds used to retire Term loan facilities $141.2 $91.2 $50.0 sen
Slide 19: Proposed way forward: rationale and next steps
Rationale for proposed approach Next steps ▪ Recent unprofitability and material uncertainty as to the outcome of ▪ Further announcements on the recapitalisation will be made before the Blue Diamond litigation means it is prudent to raise capital in secured end of calendar 2020 debt form that provid
Slide 20: Q&A
freedom, GROUP Making food bette:
Slide 21: Appendices
freedom, GROUP Making food bette:
Slide 22: EBITDA reconciliation
FY19 ▪ EBITDA loss of $96.7m (FY19 restated loss of $118.6m) 12 months to 30 June ($m) FY20 (restated) ▪ Inventory provisions of $18.5m (FY19 26.7m) were recognised during Adjusted EBITDA pre-AASB16 ($86.5) ($88.0) the year and included in costs of sales. An amount of $18.0m (FY19 AASB16 impact $14.
Slide 23: Statement of financial position
FY20 FY19 (restated) ($m) Pre-AASB16 AASB16 impact Statutory Pre-AASB16 AASB16 impact Statutory Cash and cash equivalents $17.2 - $17.2 $55.4 - $55.4 Trade and other receivables $64.3 - $64.3 $69.9 - $69.9 Inventories $59.8 - $59.8 $79.5 - $79.5 Other current assets $5.3 - $5.3 $3.5 - $3.5 Investmen
Slide 24: Statement of cash flows
FY20 FY19 (restated) AASB16 AASB16 12 months to 30 June ($m) Statutory Pre-AASB16 Statutory Pre-AASB16 impact impact Receipts from customers (inclusive of GST) $574.8 - $574.8 $455.8 - $455.8 Payments to suppliers and employees (inclusive of GST) ($644.8) ($14.8) ($659.6) ($573.3) - ($573.3) Interes
Slide 25: (_ Wf ec
(_ Wf ec MAKING FOOD BETTER