Australian Dairy Nutritionals Limited · ASX:AHF
Australian Dairy Nutritionals — Shareholder Meeting (November 2019)
14 slides from Australian Dairy Nutritionals's shareholder meeting presentation, Nov 29, 2019
Slide 1: Australian Dairy Nutritionals Group CEO Presentation
Australian Dairy Nutritionals Group Growing Local, Going Global CEO Presentation Peter Skene Annual General Meeting 29 November 2019
Slide 2: Consistently delivering on Group Strategy
Consistently delivering on Group Strategy AHF is transitioning from a contracted packer to a vertically integrated manufacturer and producer of premium organic products and brands, with a large focus on organic infant formula Key achievements Key Achievements ✓ All farms in process of conversion to
Slide 3: General Outlook
General Outlook ▪ Western Victoria has largely avoided drought conditions with all farms experiencing good rainfall and strong pasture growth in 1HFY20 ▪ Successful organic certification of Yaringa farm on 22 November 2019 with other farms on track for certification in 2021 5 ▪ Retail markets remain
Slide 4: AHF at a Glance
AHF at a Glance Well positioned A vertically Focused on to capitalise on integrated developing higher the growing business model margin owned shortfall of guarantees ability brands and products organic milk to supply versus including organic Australian Dairy supply competitors infant formula Nutriti
Slide 5: Why are we Transforming?
Why are we Transforming? AHF is transitioning from a contracted packer to a vertically integrated manufacturer and producer of premium organic products and brands, with a large focus on organic infant formula Why move to Organic? Why vertical integration and own branded products? ✓ In Australia, 9 b
Slide 6: Product Diversification
Product Diversification 2017 2018 Product Target gross product Margins FY2021 ▪ Milk ▪ Milk Formula 35% - 45% ▪ Butter ▪ Butter ▪ Yoghurt ▪ Yoghurt Butter 10% - 15% New Additions ▪ Kefir Yoghurt / Kefir 15% - 30% ▪ Premium Milk Range ▪ Paediatric Formula Bottled Milk 10% - 25% 2019 2020 & 21 Target
Slide 7: Formula Plan 2 Stage Process
Formula Plan STAGE 1 – INTRODUCTORY FORMULA PLANT STAGE 2 – LARGE FORMULA PLANT & CANNING 2 Stage Process CAPEX ~$5.0 m CAPEX ~$45.0m Inputs Milk plus IF ingredients Inputs Milk plus IF ingredients Capacity 2,000 Kg – 2,800 Kg/ day Capacity Dryer 12,000 – 20,000 Kg/ day Blending and tinning >10,000,
Slide 8: Formula Plan Timeline
Formula Plan STAGE 1 – INTRODUCTORY FORMULA PLANT STAGE 2 – LARGE FORMULA PLANT & Timeline CAPEX ~$5.0 m CAPEX CANNING ~$45.0m Inputs Milk plus IF ingredients Inputs Milk plus IF ingredients Capacity 2,000 Kg – 2,800 Kg/ day Capacity Dryer 12,000 – 20,000 Kg/ day Blending and tinning >10,000,000 + c
Slide 9: Placement
Placement Successful capital raising In June 2019 AHF successfully raised A$12 million (before costs) via a share placement to sophisticated investors Use of Funds ▪ Acquisition and relocation of the infant formula plant (including mixing plant, dryer and evaporator) - $1.5m ▪ New building for the i
Slide 10: Our Dairy Farms
Our Dairy Farms Golden Triangle of the South West Victoria Dairy Region ▪ 5 dairy farms in South West Victoria producing Vertical Integration ~17m litres of milk pa AHF Farms – Transitioning to organic ▪ 4,184 livestock with 2,118 cows which produce AHF Processing facility AHF New processing facilit
Slide 11: Snapshot of our Dairy Farms
Snapshot of our Dairy Farms Carrying Size Avg Cows FY2016 FY2017 FY2018 Organic Organic Milk Value Hectares Milked Litres Litres Litres Conversion Produced Upon (twice daily per (non organic) (non organic) (non organic) Date Conversion year) Brucknell No. 1 $4.1m 275 374 3.3m 4.3m 4.3m 2021 ~3m Bruc
Slide 12: Jonesy's Dairy Fresh joint venture
Jonesy’s Dairy Fresh joint venture ▪ Jonesy’s Dairy Fresh (Jonesy’s) one of two premium milk brands servicing the hospitality and niche retail markets in Melbourne and regional Victoria ▪ Existing distribution channel for Camperdown Dairy products including Jersey milk, Organic milk, butter and yogh
Slide 13: AHF Board
AHF Board Michael Hackett Martin Bryant Adrian Rowley Paul Morrell Peter Skene Non-Executive Chairman Non-Executive Deputy Chairman Non-Executive Director Non-Executive Director CEO and Director ▪ Michael has been a director since ▪ Martin is a highly skilled ▪ Adrian Rowley joined the board ▪ Paul
Slide 14: Contact
Contact •For additional information or media enquiry matters please contact: •Peter Skene •Group CEO / Director •Australian Dairy Nutritionals Limited •Email:shareholders@adfl.com.au •Disclaimer – Forward Looking Statements •This announcement may include “forward looking statements” within the meani
Australian Dairy Nutritionals — Shareholder Meeting (November 2019) on 6ix