Astral Foods Limited · JSE:ARL
Astral Foods — Corporate Update (June 2015)
37 slides from Astral Foods's corporate update, Jun 11, 2015
Slide 1: County Fair Site Visit
County Fair Site Visit 11 June 2015
Slide 2: Agenda
AGENDA Astral at a glance Divisional overview County Fair development 25 US poultry imports Q&A 2
Slide 3: Astral at a Glance
10000 12000 14000 16000 18000 20000 22000 0 2000 4000 6000 8000 Cents NAV 1-Apr-01 Listed Listed 1-Aug-01 Year end 1-Dec-01 exchange JSE ticker Sub sector Market cap 1-Apr-02 1-Aug-02 1-Dec-02 1-Apr-03 1-Aug-03 | | | | | | | 1-Dec-03 1-Apr-04 Market information 1-Aug-04 1-Dec-04 ARL 1-Apr-05 ASTRAL
Slide 4: Astral at a Glance – Quick Facts
ASTRAL AT A GLANCE – QUICK FACTS Astral 14 years old on 9 April 2015 Top 100 JSE listed company Over 4 000 shareholders Represented in 4 Southern African countries 25 In excess of 11 750 full-time and contract employees 7 000 hectares of agricultural and industrial land 4 poultry proce
Slide 5: National and Regional Footprint
NATIONAL AND REGIONAL FOOTPRINT 25 5
Slide 6: Astral Segmental Analysis – Gross Revenue
ASTRAL SEGMENTAL ANALYSIS – GROSS REVENUE 4% 38% 58% 25 Poultry Feed Other Africa 6
Slide 7: Astral as an Integrated Poultry Producer
ASTRAL AS AN INTEGRATED POULTRY PRODUCER Grand parent operation Breeding and broiler operations Processing 22 weeks 40 weeks 3 weeks 22 weeks 40 weeks 3 weeks 35 days Rearing Laying Hatching Rearing Laying Hatching Growing 4 Processing plants Broiler Grand parent farms Parent farms farms Standerton
Slide 8: Poultry Rearing Cycle
POULTRY REARING CYCLE Grand Parents Rearing 22 weeks Laying 40 weeks Hatching 3 weeks Breeders Rearing 22 weeks 25 Laying 40 weeks Hatching 3 weeks Broilers Growing 35 days 2½ years 8
Slide 9: Astral Poultry Production Chain
ASTRAL POULTRY PRODUCTION CHAIN 1 Parent Rearing 1,1 million pullets per breeding cycle 2 Parent Laying 2,1 million breeders per breeding cycle 3 Egg Production 41,1 million eggs per broiler cycle (81% Hatchability) 25 4 DOC to Broilers 37,5 million broilers on farm 5 Processing 4,95 million slaught
Slide 10: Astral Poultry Volume Growth
ASTRAL POULTRY VOLUME GROWTH 5,000,000 B 4,500,000 I 4,000,000 R D 3,500,000 S 3,000,000 P 2,500,000 E R 2,000,000 25 1,500,000 W E 1,000,000 E 500,000 K 0 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013 F2014 F2015 ASTRAL WEEKLY SLAUGHTER VOLUMES COUNTY FAIR WEEKLY SLAUGHTER VOLUMES Maj
Slide 11: RSA Poultry Industry Market Share
RSA POULTRY INDUSTRY MARKET SHARE Local broiler production ≈ 19,0 million birds per week 26% 33% 25 5% 24% 6% 6% Astral Rainbow Country Bird Sovereign Afgri Other 11
Slide 12: Poultry Division
Poultry division a \ASTRAL
Slide 13: Poultry Division Overview
POULTRY DIVISION OVERVIEW Ross Poultry Breeders • Sole supplier and distributor of Ross genetics in SA National Chicks • Day old chick and hatching egg supplier Integrated broiler operations 25 • Day old chick production • Broiler production • Processing • Distribution • Sales and marketing 13
Slide 14: Poultry Division Overview – Revenue and Volume
POULTRY DIVISION OVERVIEW Revenue by sector Volume by category Value Added Food Service 4% Retail Low Value 6% IQF 57% 25 21% 54% 42% 12% Fresh 4% Wholesale Frozen 14
Slide 15: Process Flow and Further Processing
PROCESS FLOW AND FURTHER PROCESSING Receiving & Slaughtering Live birds Hang Stun Kill Bleed Scald Defeather Head Feet removal removal Evisceration Hang Vent Vent EV Pack Crop Neck Inspection Wash drill slit removal drill crack Air Chilling 25 Selection for fresh & frozen Hang onto 2 separate lines
Slide 16: Bird Cut Up Diagram
BIRD CUT UP DIAGRAM 25 16
Slide 17: Brine Marinade Injection
BRINE MARINADE INJECTION To improve sensory and functional properties of meat: Sensory Flavour Colour Succulence 25 Tenderness Functional Moisture holding capacity Cooked yield 17
Slide 18: Brine Marinade Injection
BRINE MARINADE INJECTION 25 18
Slide 19: Labelled Salt Levels in Selected Food Products
LABELLED SALT LEVELS IN SELECTED FOOD PRODUCTS 1.400 1.313 1.318 Grams of salt per 100g 1.250 1.200 1.115 1.000 1.000 1.000 0.875 0.830 0.800 0.625 Heart Foundation: 0.600 0.510 > 1.5g per 100g is HIGH 0.422 < 0.3g per 100g is LOW 0.400 0.223 0.200 0.118 0.000 19
Slide 20: Brine Injection Machinery
BRINE INJECTION MACHINERY A grid or series of needles that force marinade into the tissue under pressure Needles are spring loaded and stop penetration upon 25 contact with bone surfaces Brine is diffused into raw meat portions 20
Slide 21: Injection Equipment – Astral Processing
INJECTION EQUIPMENT – ASTRAL PROCESSING 25 21
Slide 22: County Fair Development
County Fair development a ~ ASTRAL
Slide 23: County Fair – Hocroft Processing Plant
COUNTY FAIR – HOCROFT PROCESSING PLANT Key Indicator “Before” Tydstroom “After” Tydstroom Factory built 1976 Slaughter volumes (1976) 350 000 birds per week Slaughter volumes 1 050 000 1 600 000 County Fair broiler farms 26 24 Employees on site 950 1 625 Shifts per week 10 11 25 Continuous shift No
Slide 24: County Fair – Tydstroom Supply Agreement
COUNTY FAIR – TYDSTROOM SUPPLY AGREEMENT The Tydstroom negotiations commenced in October 2013 A supply agreement was concluded and signed on 26 February 2014 The agreement caters for the supply of 550 000 bpw to County Fair Price paid to Quantum based on County Fair live cost 25 The first
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Slide 30: UNCOOKED - KEEP
UNCOOKED - KEEP REFRIGERATED BELOW 4°C SHOPRTE CHEERS PTY} CAR WLM OAS A. (01D PMAL ROA, BRACAENPEL 7580
Slide 31: US Poultry Imports
US Poultry Imports 2 \ASTRAL
Slide 32: US Poultry Import Update
US POULTRY IMPORT UPDATE Agreed quota of 65 000 tons per annum ≈ 1 000 000 birds per week Agreement covers bone-in portions only i.e. brown meat Phase in period of 4 to 6 months due to legislative and administration processes 25 65 000 ton quota will be not be subject to the anti-dumping dut
Slide 33: Myths
MYTHS General market perception Astral’s response Do chickens grow so fast No, definitely not! 1 because No chickens produced by any they are injected with of Astral’s poultry operations are injected, fed or in any growth hormones? way whatsoever subjected to hormones. Desired growth and weigh
Slide 34: Myths
MYTHS General market perception Astral’s response Are chickens restricted Not true at all! 3 from movement by being Our chickens are raised in large poultry sheds designed kept in small wire cages? to keep them as comfortable as possible. Disinfected floors are bedded with wood shavings, sunfl
Slide 35: Myths
MYTHS General market perception Astral’s response The antibiotics No, not entirely true! 5 administered to chickens – Antibiotics are administered when necessary through do they remain in the meat feed intake and under the strict guidance of a and are they dangerous registered veterinary practit
Slide 36: Astral's strategy
—— \ASTRAL “Astral’s strategy is to be the best cost integrated poultry producer in selected African countries” 10 April 2015
Slide 37: Program for the Day
PROGRAM FOR THE DAY Time 12:00 — 12:30 12:30 = 13:15 13:30 — 14:30 14:30 — 16:30 16:30 — 17:30 18:00 — late Parking is available across the street in the Cape Quarter Shopping Centre. Kindly indicate your jacket and shoe sizes, as well as any dietary requirements, in your response, \ ASTRAL Astral i