Cobram Estate Olives Ltd. · ASX:CBO
Cobram Estate Olives — Shareholder Meeting (October 2022)
62 slides from Cobram Estate Olives's shareholder meeting presentation, Oct 28, 2022
Slide 1: Chair's Address
Chair’s Address 28 October 2022 Having just completed our first full year as an ASX-listed company, I would like to start by acknowledging the efforts of our internal team and our partners that managed our listing and post- listing including Link Market Services, DLA Piper, Pitcher Partners, and Del
Slide 2: Chair's Address (continued)
antioxidants give extra virgin olive oil its flavour, smell, and most importantly, its well-known health benefits. This is why we aim to crush and press every olive within 4-6 hours of picking. 3. CBO’s vertically integrated model shields us from supply chain disruption. Unlike most food companies,
Slide 3: Chair's Address: updates since 30 June 2022
We maintain a strategic focus on growing olive oil supply and sales of our premium brands in Australia and the USA and remain committed to growth. Our growth strategies are well developed with a strong pipeline focused around our growth pillars as will be further outlined by Leandro later today. Imp
Slide 4: Funding growth
Funding growth Our investment in growth will continue in both Australia and the USA, which will be fully funded through existing debt facilities and our strong cash flow from operations. Dividend The Board has declared a dividend of 3.3 cents per share, 70% franked, to be paid in December. Sam will
Slide 5: Chair's Address closing
Importantly, our Australian olive groves are in very good condition as we head into our 2023 Australian crop year. We would like to take this opportunity to thank our shareholders and our loyal customers for their faith in the Company and our products. We look forward to connecting with shareholders
Slide 6: Annual General Meeting
Annual General Meeting Cobram Estate Olives Limited | June 2021 28 October 2022 Private & Confidential 1
Slide 7: Disclaimer
Disclaimer The material in this presentation is general background information about Cobram Estate Olives Limited (“Cobram Estate Olives” or “CBO” or “the Company”) and is current at the date of the presentation. The information in the presentation is provided for information purposes only, is in su
Slide 8: Presenters
Presenters Rob McGavin Leandro Ravetti Sam Beaton Non-Executive Chair & Co-Founder Executive Director & Joint-CEO Executive Director & Joint-CEO Cobram Estate Olives Limited | June 2021 Private & Confidential 3
Slide 9: Agenda
Agenda: 1. Chair’s Address 2. Financial Year 2022 Results and Commercial Update 3. Business Operations Highlights and Update 4. Growth Strategy Update 5. Formal Business 6. Questions 7. Close Cobram Estate Olives Limited | June 2021 Private & Confidential 4
Slide 10: Chair's Address
Chair’s Address Rob McGavin Chair and Co-founder Cobram Estate Olives Limited | June 2021 Private & Confidential 5
Slide 11: Financial Year 2022 Results and Commercial Update
Financial Year 2022 Results and Commercial Update Sam Beaton Joint-CEO (Finance & Commercial) Cobram Estate Olives Limited | June 2021 Private & Confidential 6
Slide 12: Australian Olive Oil Operations Performance
Australian Olive Oil Operations Performance Two-Year Rolling Average EBITDA (Normalised)* of $53.9 million, up 19.7% year-on-year Two-Year Rolling Average EBITA (Normalised)* and two-year rolling average olive oil yield for CBO’s Australian olive oil operations Australian olive oil operations perfor
Slide 13: Group Profit or Loss (Statutory)
Group Profit or Loss (Statutory) Strong performance from the Australian olive oil division in a “lower yielding crop year” Key points • Decrease in EBITDA predominately driven by the lower Australian crop of 9.5 million litres (FY2021: 16.05 million litres) • Australian Olive Oil Operations reported
Slide 14: Group Cash Flow Statement
Group Cash Flow Statement Operating cash flow of $33.8 million, up 52.9% year-on-year Cashflow statement Key points $'million FY2022 FY2021 Variance • Strong operating cashflow reflective of (1) the Company managing its olive oil supply over two Earnings before tax 2.5 52.0 harvest periods (24-month
Slide 15: Group Balance Sheet
Group Balance Sheet Strong balance sheet, with net assets of $287 million and gearing falling to 25% Key points • Significant increase in Total Assets, driven by the revaluation of real property assets • Our olive trees are carried at cost (within Property Plant and Equipment), so have not been reva
Slide 16: Real Asset Backing, Decreasing Gearing, and Minimal Leased Assets
Real Asset Backing, Decreasing Gearing, and Minimal Leased Assets Trees and irrigation are carried at cost, brands carried at acquisition cost (not fair value) Tangible Assets vs Debt Levels Key points 700 • Tangible assets of $543m at 30 Olive trees and irrigation valuation not June 2022, or $665m
Slide 17: Strong Uplift in Property Valuation
Strong Uplift in Property Valuation Maturing groves and strong land/property prices drive significant uplift in CBO asset valuation 30 June 2022 asset valuations and impact on carrying value* Key points • Independent valuation undertaken by LAWD and CBRE, as at June 2022 • Total valuation of $444.6
Slide 18: Strong Sales Growth for Australian Olive Oil Operations in FY2022
Strong Sales Growth for Australian Olive Oil Operations in FY2022 Sales in Q1 FY2023 tracking according to plan Cobram Estate® + Red Island® brands Australian Olive Oil Sales - FY2022 Key points – FY2022 100 • Total sales of $105.8m, up 7.8% year-on- 90 year (FY2021: $98.1m) 80 • Total branded sales
Slide 19: USA Sales of $28.7 Million in FY2022, Down Due to Tight Olive Oil Supply
USA Sales of $28.7 Million in FY2022, Down Due to Tight Olive Oil Supply Cobram Estate® wholesale sales to USA supermarkets and natural food stores up 11.0% year-on-year; supermarket and natural food store scan sales achieving double-digit growth USA Packaged Olive Oil Sales Cobram Estate® and priva
Slide 20: Cobram Estate 2022 Australian Marketing Campaign
Cobram Estate® 2022 Australian Marketing Campaign Ads ran on mainstream media channels from April to September 2022 Key points MasterChef 2022 and broadcast campaign schedule and audience to 3 September 2022 • Our 2022 advertising campaign featured a partnership with the 2022 season of MasterChef •
Slide 21: Financial Outlook
Financial Outlook Outlook is positive, underpinned by strong demand for extra virgin olive oil and our maturing groves • Demand for Australian and Californian extra virgin olive oil remains strong • Full Year FY2023 Statutory EBITDA is expected to be materially higher than FY2022 (subject to the ris
Slide 22: Dividend Announcement
Dividend Announcement Final dividend of 3.3 cents per share, payable on 7 December 2022 Final Dividend Details Dividend Timetable • Dividend Payment: $0.033 per share Activity Date • 70% Franked Ex-Dividend Date 17 November 2022 • Payment Date: 7 December 2022 Record Date 18 November 2022 DRP Final
Slide 23: Business Operations Highlights and Update
Business Operations Highlights and Update Leandro Ravetti Joint-CEO (Technical & Production)
Slide 24: Global Olive Oil Market Update
Global Olive Oil Market Update Drought in Mediterranean region likely to impact global supply over the next 12-months-plus Global olive oil supply and demand (2000/01 – 2022/23 forecast) Key points 1. Low rainfall is leading to a significantly reduced forecast for the 2022/23 crop in most Mediterran
Slide 25: Global Olive Oil Market Update
Global Olive Oil Market Update Expectations for lower supply have resulted in a rapid escalation of global olive oil prices Evolution of European extra virgin olive oil prices Euro / tonne (January 2019 – October 2022)* Cobram Estate Olives Limited | June 2021 * Source: Poolred.com Private & Confide
Slide 26: Global Olive Oil Operations Update
Global Olive Oil Operations Update Vertically integrated business operations running relatively smoothly despite external challenges Key points • 11.7 million litres global olive oil production in FY2022 (Australia + USA) • Tight labour market and disruption from COVID-19 remains a challenge in all
Slide 27: 2022 Australian Olive Harvest and Flowering Update
2022 Australian Olive Harvest and Flowering Update Olive oil yield up 53% vs. previous lower yielding crop year Two-year rolling average olive oil yields for Key points CBO’s Australian olive groves • 9.5 million litres produced on our Australian groves in FY2022, 53% up on the previous lower yieldi
Slide 28: 2022 USA Olive Harvest
2022 USA Olive Harvest Production expected to be similar to 2021 despite 2022 being a lower yielding crop year Key points • Our USA harvest commenced in early October 2022 • 2022 is a lower yielding crop year for most Californian growers. Despite drier conditions in California, we are anticipating a
Slide 29: External Cost and Supply Chain Pressures
External Cost and Supply Chain Pressures Rising costs partially offset by low Australian water prices CBO’s temporary water volume and purchase Rising costs in Australia price per megalitre - FY14 to FY23ytd • During FY2022 we saw input cost pressure particularly in the areas of 800 45,000 fertilise
Slide 30: Growth Strategy Update
Growth Strategy Update Leandro Ravetti Joint-CEO (Technical & Production) Cobram Estate Olives Limited | June 2021 Private & Confidential 25 25
Slide 31: Four core opportunities to drive future growth
Growth Strategy Four core opportunities to drive future growth 2. 3. 4. Cobram Estate Olives Limited | June 2021 Private & Confidential 26
Slide 32: Increasing Supply From CBO's Australian Olive Groves
1. Increasing Supply From CBO’s Australian Olive Groves Maturing groves to grow by CAGR of 7.5% over the next 10-years Age profile of CBO’s Australian olive groves by planted hectares Average mature yields - CBO’s Australian olive groves and average olive oil yield per hectare by year of age 1,600 3
Slide 33: Capex Growth Project: Boort Olive Mill Upgrade
Capex Growth Project: Boort Olive Mill Upgrade Milling capacity at Boort to increase from 30 to 80 tonnes of olives per hour Boort olive mill upgrade External fruit receival area Internal olive oil extraction area • The Boort olive mill is being upgraded to match future needs, increasing capacity fr
Slide 34: Capex Growth Project: Boort Grove Development
Capex Growth Project: Boort Grove Development Boort grove area to increase by 13.4% Boort grove development • Preparation underway for a greenfield 415-hectare olive planting at our Boort grove in Victoria • Planting will take place during FY2023, increasing our total olive plantings at Boort from 3
Slide 35: Growing Our Vertically Integrated USA Business
2. Growing Our Vertically Integrated USA Business Significant expansion of CBO’s third-party growers and USA land and olive grove portfolio in FY2022 USA grove development and acquisitions CBO’s Californian olive oil operations and location • December 2021 - settled on two parcels of land, 182 hecta
Slide 36: CBO's Californian groves
CBO’s Californian groves Harvest @ CBO’s Debo Ranch, California Planted 2015 Cobram Estate Olives Limited | June 2021 Private & Confidential 31
Slide 37: CBO's Californian groves
CBO’s Californian groves CBO’s Esparto Ranch, California CBO’s Dunnigan Hills Ranch, California Planted 2021 Phase 1 Ready for Planting Cobram Estate Olives Limited | June 2021 Private & Confidential 32
Slide 38: CBO's Californian groves
CBO’s Californian groves CBO’s Hungry Hollow Ranch, California CBO’s Hungry Hollow Ranch, California Planted 2019 – Ready for Harvest 2022 Harvest Cobram Estate Olives Limited | June 2021 Private & Confidential 33
Slide 39: Growing Branded Sales and Improving Net Price Per Litre
3. Growing Branded Sales and Improving Net Price Per Litre Four new premium Cobram Estate® products launched in Australia in 2022 Key releases in 2022 include: • ‘Limited Release Manzanillo’ and ‘Limited Release Koroneiki’ extra virgin olive oils - available online and in Coles supermarkets • Truffl
Slide 40: Capitalising on our Sustainable Position and Upcycling By-Products
4. Capitalising on our Sustainable Position and Upcycling By-Products Our Sustainability Mission: We aspire to lead extra virgin olive oil farming into a sustainable future for planetary health by giving more people access to nutritional health that only authentic, sustainable, and high-quality extr
Slide 41: People
People Responsible dietary patterns Cobram Estate Olives Limited | June 2021 Private & Confidential 36
Slide 42: People
People Employee health & wellbeing / community partnerships Cobram Estate Olives Limited | June 2021 Private & Confidential 37
Slide 43: Planet
Planet Carbon farming project and baseline studies @ Boundary Bend Cobram Estate Olives Limited | June 2021 Private & Confidential 38
Slide 44: Planet
Planet Partnership with Mallee fowl recovery group Cobram Estate Olives Limited | June 2021 Private & Confidential 39
Slide 45: Business Supporting the SDGs and the United Nations Global Compact
Business Supporting the SDG’s and the united Nations Global Compact Cobram Estate Olives Limited | June 2021 Private & Confidential 40
Slide 46: Up-cycling our olive oil by-products
Business Up-cycling our olive oil by-products – pomace treatment plant Cobram Estate Olives Limited | June 2021 Private & Confidential 41
Slide 47: Two New Wellgrove Products Launched Online in 2022
Two New Wellgrove® Products Launched Online in 2022 ‘Essential Greens’ and ‘Plant Protein’ powders made with Cobram Estate® extra virgin olive oil powder ESSENTIAL GREENS PLANT PROTEIN Cobram Estate Olives Limited | June 2021 Private & Confidential 42
Slide 48: Formal Business
Formal Business Rob McGavin Chair & Co-founder
Slide 49: Shareholder / Proxyholder Voting Directions
Shareholder / Proxyholder Voting Directions Cobram Estate Olives Limited | June 2021 Private & Confidential 44
Slide 50: Online Viewers – How to Ask Questions
Online Viewers – How to Ask Questions Only Shareholders and Proxyholders are able to ask questions Click on “Ask a Question” Select “General Business” or a specific resolution Type in your question and click “Submit” Comments on resolutions can also be submitted through “Ask a Question” Cobram Estat
Slide 51: Item 1: Financial Statements and Reports
Item 1: Financial Statements and Reports To receive and consider the Financial Report and the related Directors’ Report and Auditor’s Report for the year ended 30 June 2022. Note: This item is for discussion only and is not a resolution. Cobram Estate Olives Limited | June 2021 Private & Confidentia
Slide 52: Item 2: Adoption of the Remuneration Report
Item 2: Adoption of the Remuneration Report To consider and, if thought fit, to pass the following resolution as a non-binding ordinary resolution: That the Remuneration Report of the Company for the year ended 30 June 2022 be adopted. Note: This resolution is advisory only and does not bind the Com
Slide 53: Item 3a: Re-election of Mr. Tim Jonas
Item 3a: Re-election of Mr. Tim Jonas To consider and, if thought fit, to pass the following resolution as an ordinary resolution: That Tim Jonas, who retires, and being eligible, offers himself for re-election as a Non-Executive Director of the Company, is elected as a Director of the Company. Dire
Slide 54: Item 3b: Re-election of Mr. Leandro Ravetti
Item 3b: Re-election of Mr. Leandro Ravetti To consider and, if thought fit, to pass the following resolution as an ordinary resolution: That Leandro Ravetti, who retires, and being eligible, offers himself for re-election as an Executive Director of the Company, is elected as a Director of the Comp
Slide 55: Item 4: General
Item 4: General To transact any business which may be lawfully brought forward. Cobram Estate Olives Limited | June 2021 Private & Confidential 50
Slide 56: Questions?
Questions Questions? If you haven’t already voted, please cast your votes. Cobram Estate Olives Limited | June 2021 Private & Confidential 51
Slide 57: Closing Remarks
Closing Remarks Rob McGavin Chair & Co-founder Cobram Estate Olives Limited | June 2021 Private & Confidential 52
Slide 58: Thank-you
Thank-you Thank-you! Cobram Estate Olives Limited | June 2021 Private & Confidential 53 53
Slide 59: Cobram Estate Olives - From Tree to Table
Cobram Estate Olives - From Tree to Table Growing and marketing olive goodness in Australia and the USA About Cobram Estate Olives • Established in 1998, Cobram Estate Olives (ASX: CBO) is Australia’s largest vertically integrated producer and marketer of premium quality extra virgin olive oil • CBO
Slide 60: CBO's Key Consumer Brands Include Market-Leading Cobram Estate
CBO’s Key Consumer Brands Include Market-Leading Cobram Estate® Iconic, highly visible consumer brands with demonstrated pricing power Cobram Estate® Red Island® • The #1 selling extra virgin olive oil* in Australian supermarkets • Purchased in 2012 by value in FY2022 • Now the second largest sellin
Slide 61: CBO's Olive Growing, Milling and Bottling Operations in Australia and USA
CBO’s Olive Growing, Milling and Bottling Operations in Australia and USA Large-scale olive groves and olive mills, delivering efficiencies in olive growing, harvesting, milling and bottling Olive groves, harvesters and Olive mills and olive oil storage Bottling, warehouse and farmland • Australia:
Slide 62: CBO's Competitive Advantages
CBO’s Competitive Advantages CBO’s key assets deliver significant competitive advantages and strong barriers to entry Continuous Vertically integrated, Proprietary Oliv.iQ® Premium market- improvement and freehold-owned and Integrated Olive leading consumer sustainable practices scalable operations
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