Cobram Estate Olives Ltd. · ASX:CBO
Cobram Estate Olives — Shareholder Meeting (November 2023)
58 slides from Cobram Estate Olives's shareholder meeting presentation, Nov 3, 2023
Slide 1: Chair's Address
2023 ANNUAL GENERAL MEETING Chair’s Address 3 November 2023 Welcome to the Cobram Estate Olives Limited 2023 Annual General Meeting. For personal use only On behalf of my fellow Directors, I would like to thank you for joining us today, either in person or online. Today’s meeting marks 25 years sinc
Slide 2: Chair's Address (continued)
7. And our Cobram Estate® brand is one of the most decorated olive oil brands in the world, with over 668 trophies and medals including two of our products awarded the “healthiest olive oil in the world” in 2017 and 2022. This has all been made possible by our brilliant team, and their commitment to
Slide 3: Chair's Address: Outlook
• Most of our Australian groves reached full bloom this week. This is an important event and is the first time in the growing cycle that we can assess the potential of the following year’s crop. We are pleased to report that flowering conditions are currently ideal. • Olive oil sales have been stron
Slide 4: Board changes and appointments
was appointed as a Non-Executive Director and has held the role since that time and chaired the Audit and Risk Committee. Tim has made a monumental contribution to CBO over his 25-plus years of involvement with the Company. He has been a trusted advisor and mentor to the co-founders and executive di
Slide 5: Annual General Meeting
For personal use only Annual General Meeting Cobram Estate Olives Limited ABN: 32 115 131 667 3 November 2023 Cobram Estate Olives Limited | June 2021 Private & Confidential 1
Slide 6: Presenters
Presenters For personal use only Presenters: Rob McGavin Non-Executive Chair & Co-Founder Sam Beaton Executive Director and Joint-CEO Leandro Ravetti Executive Director and Joint-CEO Cobram Estate Olives Limited | June 2021 Private & Confidential 2
Slide 7: Disclaimer
Disclaimer For personal use only 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 p
Slide 8: Agenda
Agenda: For personal use only 1. Chair’s Address 2. FY2023 Results and Commercial Update 3. Business Operations and Growth Strategy Update 4. Formal Business Introduction 5. Questions 6. Close Cobram Estate Olives Limited | June 2021 Private & Confidential 44
Slide 9: Chair's Address
Chair’s Address Rob McGavin For personal use only Co-Founder and Non-Executive Chair Introduction Cobram Estate Olives Limited | June 2021 Private & Confidential 55
Slide 10: FY2023 Results and Commercial Update
FY2023 Results and Commercial Update Sam Beaton Joint-CEO (Finance & Commercial) GROUP SALES STATUTORY EBITDA* For personal use only $169m $40.8m ↑ 63% (vs FY2022) ↑21% (vs FY2022) TWO-YEAR ROLLING AVERAGE EBITDA GLOBAL BRANDED OLIVE OIL SALES (NORMALISED)** FOR THE CBO GROUP $117m $30.1m (COBRAM ES
Slide 11: Group Profit (Statutory)
Group Profit (Statutory) Increase in profit, driven by the larger Australian crop and an improvement in USA business profitability Profit or Loss $'million FY2023 FY2022 Variance Key points: For personal use only Australian Olive Oil Operations reported EBITDA of Revenue $38.5m (FY22: $32.4m), drive
Slide 12: Group Cash Flow Statement
Group Cash Flow Statement Increase in sales and stabilising costs drive operating cashflow to record levels Cashflow statement $'million FY2023 FY2022 Variance Key points: For personal use only Earnings before interest and tax 22.7 7.4 15.3 • Strong cashflow from operations of $54.1m (FY22: $33.8m).
Slide 13: Group Balance Sheet
Group Balance Sheet Net Assets of $288m; brands and trees on balance sheet at cost Balance Sheet $'million FY2023 FY2022 Variance Key points: For personal use only Cash 13.7 5.9 7.7 • Significant increase in Total Assets, driven by the Current Assets (excluding cash) 126.9 126.8 0.1 investment in ca
Slide 14: Real Asset Backing
Real Asset Backing Assets valued at $719.7m (excluding brand valuations), against borrowings of $191.5m Assets v Borrowings 750 Olive trees and $'million FY2023 FY2022 FY2021 For personal use only Olive trees and irrigation valuation not 700 irrigation valuation not included on CBO’s included on CBO
Slide 15: Strong Sales Growth in FY23 for Australian Olive Oil Operations
Strong Sales Growth in FY23 for Australian Olive Oil Operations 14.9% year-on-year growth driven by both volume increases and price rises Australian olive oil operations packaged goods sales ($) For personal use only Key points FY15 - FY23 120.0 • Australian olive oil sales reached $121.6m, a 14.9%
Slide 16: CBO's Market-Leading Position in the Australian Olive Oil Category
CBO’s Market-Leading Position in the Australian Olive Oil Category Cobram Estate® and Red Island® combined value share of 34.8% in FY23* Key points* Olive oil market share by For personal use only • Cobram Estate® and Red brand FY23 - value terms* Island® recorded strong retail sales growth in FY23,
Slide 17: Return to Growth for USA Olive Oil Operations in FY23
Return to Growth for USA Olive Oil Operations in FY23 46% year-on-year growth driven by both volume increases and price rises USA olive oil operations A$ sales For personal use only FY2015 - FY2023 Key points 45.0 • After a decline in sales in FY22 due primarily to the 40.0 limited availability of C
Slide 18: Strong FY23 Growth for Cobram Estate in USA Supermarkets
Strong FY23 Growth for Cobram Estate® in USA Supermarkets 22.8% year-on-year sales growth; 19% increase in store count Cobram Estate® USA Cobram Estate® USA For personal use only Supermarket US$ sales* Supermarket store count* Key points* 25 20,000 • Cobram Estate® USA scan sales totalled US$22.5m f
Slide 19: Trading Update
Trading Update Sales strong in both USA and Australia, supported by price rises and global olive oil shortage Key points For personal use only • Strong sales in both USA and Australia for the 4-months to 31 October 2023, with sales tracking in line with expectations and ahead of the prior correspond
Slide 20: Financial Outlook
Financial Outlook Outlook is positive, underpinned by strong demand for olive oil and expected larger USA crop Key points For personal use only • CBO's sales outlook remains positive, driven by: o anticipated strong consumer demand continuing; o improved ranging and distribution in key retailers; o
Slide 21: Dividend Announcement
Dividend Announcement Final FY23 dividend of 3.3 cents per share, payable on 13 December 2023 Dividend Timetable For personal use only Final Dividend Details Activity Date • Dividend Payment: $0.033 per share Ex-Dividend Date 23 November 2023 • 70% Franked Record Date 24 November 2023 • Payment Date
Slide 22: Business Operations and Growth Strategy Update
Business Operations and Growth Strategy Update Leandro Ravetti Joint-CEO (Technical & Production) For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 18
Slide 23: Global Olive Oil Operations Update
Global Olive Oil Operations Update CBO groves are in good condition with full surface water allocation in Australia and USA Operations Update For personal use only • Group operations currently focused on harvest (USA) and flowering (Australia) as well as maintaining our excellent track record of tim
Slide 24: 2023 Australian Harvest Summary
2023 Australian Harvest Summary 2023 Australian production of 13.5m litres (12.5m litres from CBO groves) 2023 Harvest Summary For personal use only • As previously announced, CBO produced 13.5m litres in 2023. • Of this, 12.5m litres was from CBO groves, up 32% compared to FY22. • CBO also produced
Slide 25: 2023 Australian Harvest Summary
2023 Australian Harvest Summary Solid cropping potential and management systems despite challenging weather conditions For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 21
Slide 26: 2023 Australian Flowering
2023 Australian Flowering Full bloom between last week and this week on CBO’s groves under favourable conditions Key points For personal use only • Flowering for the 2024 crop commenced in mid- October on CBO’s Australian groves, with full bloom at our Boundary Bend grove happening last week and at
Slide 27: 2023 California Olive Harvest
2023 California Olive Harvest Harvest has commenced in California with a record crop expected 2023 Harvest For personal use only • CBO’s 2023 California harvest commenced in early October as planned and is expected to be completed by early December. • 2023 is a higher yielding crop year in Californi
Slide 28: Growth Strategy
Growth Strategy Four core pillars to drive future growth For personal use only Delivering material sales growth from Australian operations through increasing olive oil supply 1. produced on CBO’s maturing Australian olive groves and new plantings 39% of the company’s total Australian plantings are n
Slide 29: Increasing Supply From Our Australian Groves
1. Increasing Supply From Our Australian Groves CBO’s mature grove area to increase by 64% over the next 9-years, supplemented by third-party supply Key points For personal use only • Based on current and planned future plantings, CBO’s mature grove area in Australia will increase from 4,259 hectare
Slide 30: Increasing Supply From Our Australian Groves (cont'd)
1. Increasing Supply From Our Australian Groves (cont’d) 407-hectare development at Boort (Victoria) completed in FY23; Wemen redevelopment in FY24 CBO’s 407-hectare greenfield olive grove development Boort grove at Boort (Victoria), planted in Autumn 2023 For personal use only development • CBO has
Slide 31: Boort olive mill upgrade
1. Increasing Supply From Our Australian Groves (cont’d) Boort olive mill upgrade (Victoria) Boort olive mill For personal use only upgrade • The upgraded Boort olive mill was successfully commissioned in late April 2023 as planned. • The mill upgrade delivered a capacity increase from 30 to 50 tonn
Slide 32: Growing Our Vertically Integrated USA Business
2. Growing Our Vertically Integrated USA Business CBO’s Californian olive grove portfolio now totals 707 hectares, of which only 14% are mature Key points CBO’s Californian olive oil For personal use only operations and locations • CBO first produced olive oil in California in 2014 and planted its f
Slide 33: California grove development – Dunnigan Hills
2. Growing Our Vertically Integrated USA Business (cont’d) 354-hectare Dunnigan Hills grove development completed in 2023 California grove development – Dunnigan Hills For personal use only • Phase 1 of the Dunnigan Hills Ranch development - 205 hectares of olives planted in May/June 2023. • Phase 2
Slide 34: Images of our maturing Californian groves
2. Growing Our Vertically Integrated USA Business (cont’d) Images of our maturing Californian groves For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 30
Slide 35: Expansion of Woodland olive mill, storage, and bottling
2. Growing Our Vertically Integrated USA Business (cont’d) Expansion of Woodland olive mill, storage, and bottling underway Woodland site expansion For personal use only • The first phase of the Woodland site expansion was completed in time for the 2023 harvest. • Milling capacity doubled from 32 to
Slide 36: Increasing $/Litre
3. Increasing $/Litre Premiumisation and differentiation of CBO’s extra virgin olive oil brands Key Points For personal use only Our focus is on increasing the return per litre on each litre of olive oil sold alongside sales volume growth. Key initiatives include: 1. growing higher-margin packaged g
Slide 37: Innovation and Value-Adding
4. Innovation and Value-Adding Focus on the internal use and external sale of olive biomass as part of zero waste strategy CBO’s olive pomace waste management system Key Points For personal use only • As part of its sustainability / zero waste strategy, CBO continues to add-value to the by-products
Slide 38: Building On Our Sustainability Leadership Position
Building On Our Sustainability Leadership Position CBO recognised as an Australian leader in sustainability in the food / agribusiness sector Sustainability highlights include: For personal use only • An increase in staff engagement on sustainability. • The formation of strategic community partnersh
Slide 39: Sustainability On Our Groves
Sustainability On Our Groves Real actions that have an impact on the environment where we work – The Malleefowl example Cobram Estate Olives Boundary Bend Grove For personal use only VMRG observation nesting sites Native vegetation Current reforestation Future reforestation Cobram Estate Olives Limi
Slide 40: Formal Business
Formal Business Rob McGavin For personal use only Co-Founder and Non-Executive Chair Appendix Thank-you 36
Slide 41: Shareholder / Proxyholder Voting Directions
Shareholder / Proxyholder Voting Directions For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 37
Slide 42: Voting Online
Voting Online Only verified Shareholders, Proxyholders and Corporate Representatives are eligible to vote Lodging your votes online For personal use only Click “Get a Voting Card” (top and bottom of platform) Enter your Holder Number and Postcode or your Proxy Number Click “Submit Details and Vote”
Slide 43: Asking Questions Online
Asking Questions Online Asking questions online For personal use only Only Shareholders, Proxyholders and Corporate Representatives 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
Slide 44: Asking Questions via WebPhone
Asking Questions via WebPhone Asking questions via WebPhone For personal use only Only Shareholders, Proxyholders and Corporate Representatives are able to ask questions Click on “Ask a Question” Select “Go to WebPhone” Click on the green phone button You will now be connected to the meeting. Press
Slide 45: 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 personal use only for the year ended 30 June 2023. Note: This item is for discussion only and is not a resolution. Cobram Estate Olives Limited | June 2021
Slide 46: 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: For personal use only That the Remuneration Report of the Company for the year ended 30 June 2023 be adopted. Note: This resolution is advisory only and
Slide 47: Item 3a: Election of Ms. Toni Brendish
Item 3a: Election of Ms. Toni Brendish To consider and, if thought fit, to pass the following resolution as an ordinary resolution: For personal use only That Ms. Toni Brendish, who was appointed as a Non-Executive Director on 23 January 2023, retires, and being eligible, offers herself for re-elect
Slide 48: Item 3b: Re-election of Mr. Craig Ball
Item 3b: Re-election of Mr. Craig Ball To consider and, if thought fit, to pass the following resolution as an ordinary resolution: For personal use only That Mr. Craig Ball, who retires, and being eligible, offers himself for re-election as an Executive Director of the Company, is elected as a Dire
Slide 49: Item 4: Employee Incentive Plan
Item 4: Cobram Estate Olives Limited Employee Incentive Plan To consider and, if thought fit, to pass with or without amendment, as an ordinary resolution the For personal use only following: That, pursuant to and in accordance with Listing Rule 7.2, exception 13(b) and for all other purposes, Share
Slide 50: Item 5: 2023 U.S. Equity Incentive Plan
Item 5: Cobram Estate Olives Limited 2023 U.S. Equity Incentive Plan To consider and, if thought fit, to pass with or without amendment, as an ordinary resolution the For personal use only following: That, pursuant to and in accordance with Listing Rule 7.2, exception 13(b) and for all other purpose
Slide 51: Item 6: General
Item 6: General To transact any business that may be lawfully brought forward. For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 47
Slide 52: Questions?
Questions? For personal use only Cobram Estate Olives Limited | June 2021 Private & Confidential 48
Slide 53: Meeting Closed. Thank you
Meeting Closed. Thank you for supporting Cobram Estate Olives! For personal use only Appendix Thank-you 49
Slide 54: Our Global Business
Our Global Business* USA OLIVE OIL OPERATIONS FY2023 Olive Oil Sales FY2023 A$43 million EBITDA A$2.9 million For personal use only Freehold land 535 hectares Company owned olive groves 707 hectares (freehold and leasehold) Contracted olive groves 2,100 hectares USA Milling capacity Olive oil storag
Slide 55: About Cobram Estate Olives Limited
About Cobram Estate Olives Limited One of the world’s leading vertically integrated producers and marketers of premium quality extra virgin olive oil Company snapshot For personal use only • Established in 1998, Cobram Estate Olives Limited (ASX: CBO) is Australia’s largest vertically integrated pro
Slide 56: CBO's Competitive Advantages
CBO’s Competitive Advantages CBO’s strategic olive assets deliver significant competitive advantages and strong barriers to entry For personal use only Vertically integrated Proprietary Premium market- Industry-leading operations with Oliv.iQ® leading brands sustainability strategically located, Int
Slide 57: CBO's Key Consumer Brands Including Market-Leading Cobram Estate
CBO’s Key Consumer Brands Including Market-Leading Cobram Estate® Iconic, highly visible consumer brands with demonstrated pricing power For personal use only Cobram Estate® Red Island® • The #1 selling olive oil* in Australian supermarkets by value in • Purchased in 2012 FY23*. • Now the second lar
Slide 58: 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 For personal use only Olive groves, harvesters, Olive mills and Bottling, warehouse, and farmland olive oil s
Cobram Estate Olives — Shareholder Meeting (November 2023) on 6ix