Slide 1: FY2017 Full Year Results
Bega Cheese Limited For personal use only FY2017 Full Year Results 23 August 2017
Slide 2: FY2017 Full Year Results presenters
For personal use only FY2017 Full Year Results 23 August 2017 Barry Irvin – Executive Chairman Paul van Heerwaarden – CEO Colin Griffin – CFO
Slide 3: Key Messages
Key Messages For personal use only § Creating a great Australian food company § Key strategic transactions § Mondelez Grocery Business § Mead Johnson § Successful capital raising § Revenue growth 3% § EBITDA growth 250% (normalised 7%) § Profit growth 382% (normalised 4%) § EPS growth 381% (normalis
Slide 4: For personal use only
For personal use only Bega Cheese Limited PAGE 4
Slide 5: Reconciliation of Statutory to Normalised Result
Reconciliation of Statutory to Normalised Result For personal use only Bega Foods Sale of Per Financial Inventory Acquisition Nutritional Asset Normalised Consolidated Statements Losses Costs Assets Impairments Outcome Period Ending 30 June 2017 $’000 $’000 $’000 $’000 $’000 $’000 Revenue 1,226,663
Slide 6: Balance Sheet (extract)
Balance Sheet (extract) FY2017 FY2016 For personal use only $m $m Cash 475.5 9.7 Trade and other receivables 168.5 143.7 Inventories 167.9 192.4 Property, plant & equipment 196.8 219.9 Total Assets 1,056.3 586.7 Trade and other payables 169.3 156.0 Borrowings (net of costs) 215.3 62.7 Total Liabilit
Slide 7: Cash Flow
Cash Flow For personal use only § Improved gross profit FY2017 FY2016 § Strong working capital and inventory management $m $m Receipts from customers 1,274.9 1,241.1 Payments to suppliers (1,203.8) (1,175.9) Interest and other costs of financing paid (3.2) (3.8) Income tax paid (10.7) (3.3) Operatin
Slide 8: Operations Review
Operations Review § Sales For personal use only § Growth in food service including mozzarella and cream cheese § Transitioned private label customers § Stabilised nutritionals § Operations § 237,000 tonnes of production § Capital expenditure $40.8 million focused on efficiency and capacity § Signifi
Slide 9: Dairy commodity price and farm gate milk price
Dairy commodity price and farm gate milk price For personal use only § FY2017 milk supply stable § 654 million litres direct milk intake § Strong performance in context of 7% decline in national production and 15% decline in northern Victorian production § New suppliers added in FY2017 Export trend
Slide 10: Investing in Infrastructure
Investing in Infrastructure For personal use only § Capital expenditure $40.8 million § New automated shred and slice lines § Cream cheese increased capacity and packaging § Management information system implementation Bega Cheese Limited PAGE 10
Slide 11: Investing in People
Investing in People For personal use only § Adam McNamara appointed General Manager Bega Foods § Over 220 marketing, sales, operations, technical and administrative employees added to the team § Strong combination of research and development and commercialisation teams § Significant new capability i
Slide 12: Bega Cheese Transformation
Bega Cheese Transformation For personal use only Bega Cheese Limited PAGE 12
Slide 13: Group Sales
Group Sales For personal use only 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 b $1.2 b $1.4 Bega Cheese Limited PAGE 13
Slide 14: Mondelez Grocery Business Overview
Mondelez Grocery Business Overview For personal use only § Cultural fit – Heritage, community, customers § Diversifies Bega Cheese into complementary markets and categories beyond dairy § Enhances our skills and capability to continue to evolve § Complements our significant knowledge of lean and inn
Slide 15: Bega Foods Business Overview
Bega Foods Business Overview For personal use only Leading grocery and cheese products with 66% of revenue derived from products with #1 positions1 Vegemite, an iconic Australian brand recognised as ‘Australia’s Favourite Breakfast Food’ and found in over 90% of Australian pantries Leadership in spr
Slide 16: Strong Marketing Properties and Branding
Strong Marketing Properties and Branding For personal use only Bega Cheese Limited PAGE 16
Slide 17: Mead Johnson Transaction
Mead Johnson Transaction For personal use only § Long term nutritional partnership strengthens Bega Cheese’s relationship with one of its key customers § Sale of one spray dryer at Tatura and the infant formula finishing plant at Derrimut, Melbourne § Sale proceeds of $200 million: § $180 million re
Slide 18: Where we are Today?
Where we are Today? For personal use only A stable business growing in dairy and building in food § Completing the MDLZ Grocery Business acquisition on 4 July 2017 § Brand portfolio including iconic Australian brands Bega and Vegemite § Company of choice for dairy farmers with strong milk supply gro
Slide 19: Our focus
Our focus For personal use only Creating a great Australian food company § Protect the strengths, reputation and returns of the existing businesses § Manage volatility in changing markets and maintain a globally competitive supply chain § Leverage and grow the iconic brand portfolio § Expand channel
Slide 20: For personal use only
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Slide 21: For personal use only
For personal use only PAGE 21
Slide 22: Disclaimer
Disclaimer For personal use only 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