Australian Agricultural Company Limited · ASX:AAC

Australian Agricultural — FY2015 Earnings Presentation

20 slides from Australian Agricultural's earnings presentation, May 13, 2015

  1. Slide 1: Financial Results for the 12 months to 31 March 2015

    For personal use only PVA CO AUSTRALIAN AGRICULTURAL COMPANY LIMITED Finandal Results for the 12 months to 31 March 2015 13 May 2015

  2. Slide 2: Disclaimer

    Disclaimer Important information Summary information only This presentation contains general information about the Australian Agricultural Company Limited and its consolidated entities (“AACo") and its activities current as at the date of this presentation. It is provided in summary and does not pur

  3. Slide 3: FY15 Overview

    FY15 Overview AACo has transformed from a pastoral company to a beef company Boxed beef sales of $267.6 million now comprise 77% of revenue AACo's new Livingstone Beef processing facility is commercially operational AACo has established customer-focused supply chains which drive production and impro

  4. Slide 4: Financial results summary

    For personal use only Notes: 1. EBITDA represents Net Profit After Tax (NPAT) + tax expense + finance costs + depreciation, amortisation and impairment. EBITDA is non-IFRS financial information and has not been audited or reviewed by the company’s auditors 2. A metric used internally to measure perf

  5. Slide 5: Operating cash flow variance FY14 to FY15

    For personal use only $ mil FY14 to FY15 Variance Boxed beef sales 79 Cattle sales (50) Crop sales & sundry income (2) Movement in debtors (19) Change in receipts from customers 8 COGS (31) Cattle purchases (51) Cash operating costs (18) Movement in creditors (26) Change in payments to suppliers, em

  6. Slide 6: Cash flow

    For personal use only 12 months to 12 months to ($mil) Change 31 Mar 2015 31 Mar 2014 Net operating cash flow (75.9) 18.5 (94.4) Payments for property, plant and equipment (11.7) (16.9) 5.2 Purchase of Property (FY15:Pell, FY14:LaBelle) (10.4) (28.6) 18.2 Construction of Livingstone Beef facility (4

  7. Slide 7: Balance sheet

    For personal use only At 31 Mar At 31 Mar ($mil) 2015 2014 Cash and cash equivalents 12.3 69.2 Livestock 465.2 383.0 Property, plant and equipment 668.4 605.7 Inventories 36.8 26.4 Other assets 31.4 15.7 Total assets 1,214.1 1,100.0 Interest bearing liabilities1 369.4 282.4 Other liabilities 82.4 69

  8. Slide 8: Revenue by Product

    For personal use only 400.0 Revenue by Product ($mil) 350.0 8.7 8.2 300.0 70.5 250.0 120.5 Crop $ mil 200.0 Cattle 150.0 Meat 267.6 100.0 188.2 50.0 - FY14 FY15

  9. Slide 9: Revenue by Vertical

    For personal use only 400.0 Revenue by Vertical ($mil) 350.0 15.2 300.0 56.2 85.2 250.0 Nth. Beef $ mil 200.0 Grassfed 150.0 Grainfed 275.4 231.6 100.0 50.0 0.0 FY14 FY15

  10. Slide 10: Operating EBITDA by Vertical

    For personal use only 40.0 Operating EBITDA by Vertical 30.0 28.0 20.0 14.9 13.4 10.0 $ mil FY14 0.2 0.0 FY15 (1.7) (3.6) (6.4) (10.0) (9.9) (20.0) (19.7) (22.0) (30.0) Grainfed Grassfed Nth. Beef Corporate Group

  11. Slide 11: Movement in inventory weight

    For personal use only Opening 213.3 Production 64.2 Purchases/Transfers (Live) 25.8 Purchases (Finished) FY14 11.8 Sales/Transfers (Live) (87.5) Inventory Reduction = 35.4m kg lwt Sold as boxed beef (49.8) Closing 177.9 Opening 177.9 Production 75.8 Movement in inventory weight (kg lwt mil) Purchase

  12. Slide 12: Integrated supply chain by vertical

    For personal use only Grainfed Northern Beef Grassfed Sales, Marketing & • Wagyu Manufacturing Live Sales Distribution • Shortfed/Other Beef Logistics Margin Margin Margin 3rd Party Livingstone Processing Processors Beef Backgrounding Grassfed Production /Feedlots Young Cattle Properties Purchasing

  13. Slide 13: Verticals: assets, products and key drivers

    For personal use only Grainfed Northern Beef Grassfed Total Assets $292m $112m $774m Main Product Differentiated, branded beef Quality manufacturing beef Cattle supply Key Drivers • Global beef prices • Global beef prices • Climatic conditions • Grain prices • Domestic cattle prices and • Domestic c

  14. Slide 14: Boxed Beef Sales over time, region and product

    For personal use only Boxed Beef Sales Over Time Boxed Beef Sales by Region 300.0 45% 267.6 40% 250.0 35% 188.2 200.0 30% 154.8 135.2 25% $ mil 150.0 131.1 FY14 104.3 20% 100.0 FY15 15% 10% 50.0 5% - 0% 12M to Dec 09 12M to Dec 10 12M to Dec 11 12M to Mar 13 12M to Mar 14 12M to Mar 15 North Asia Au

  15. Slide 15: Inventory movement by vertical

    For personal use only (3.0) 19.8 11.8 (16.6) 9.8 22.6 kg lwt (mil) (67.3) 13.0 9.6 (49.8) 26.3 27.4 41.0 44.6 Inventory Reduction = 5.5m kg lwt 35.5 35.5 Inventory Build = 9.1m kg lwt Opening Production Internal Purchases Purchases External Sales Sold as boxed Closing Opening Production Internal Pur

  16. Slide 16: Aerial Photo of Darwin Facility

    For personal use only Aerial Photo of Darwin Facility – February 2015     

  17. Slide 17: External Cattle Sales

    For personal use only External Cattle Sales (kg lwt) External Cattle Sales ($ mil) 70 90 84 58 80 60 70 50 44 56 25 Live Export 60 Live Export kg lwt mil 40 50 Store $ mil Store 29 30 40 Grass Finished Grass Finished 38 17 30 23 20 17 20 10 8 16 5 10 18 6 10 - - FY14 FY15 FY14 FY15

  18. Slide 18: Grassfed inventory movement

    For personal use only 3.1 15.6 37.9 (28.5) (57.9) 48.5 (18.4) (13.0) kg lwt (mil) 172.3 159.5 Inventory Reduction = 29.9m kg lwt 142.4 142.4 Inventory Build = 17.1m kg lwt Opening Production Purchases (Live) External Sales Internal Closing Opening Production Purchases (Live) External Sales Internal

  19. Slide 19: Production by Region

    For personal use only Production by Region (kg lwt mil) 60.0 48.5 50.0 9.9 40.0 37.6 Gulf kg lwt (mil) 10.1 Barkley 30.0 VRG 25.8 Darwin 20.0 18.8 10.0 7.2 5.3 5.5 3.2 0.0 FY14 FY15

  20. Slide 20: For personal use only

    For personal use only       

Australian Agricultural Company — FY2015 Earnings Presentation on 6ix