Livestock Improvement Corporation Ltd · NZX:LIC
Livestock Improvement — Shareholder Meeting (October 2023)
51 slides from Livestock Improvement's shareholder meeting presentation, Oct 12, 2023
Slide 1: Annual Meeting 12 October 2023
Breeding the best cows, faster to deliver a profitable and sustainable dairy herd for New Zealand farmers. Annual Meeting 12 October 2023
Slide 2: Using the Online Platform
Using the Online Platform HELP NUMBER 0800 200 220 SEIS CEB EREOL epi Breeding the best cows, faster to deliver a profitable and sustainable LIC AGM dairy herd for New Zealand farmers. © wecom GET NOTIFIED Voting card Question box & Downloads B Notice of meeting B Annual report
Slide 3: Slide 3
Slide 4: Meeting Agenda
Meeting Agenda OO NO GW Ss OW p> Business highlights Strategy & commitments Financial overview Highlights from investments Breeding the best cows, faster Future solutions focus Honoraria report Meeting resolutions General business
Slide 5: Business highlights
Business nighitg nts urray King Board Chair
Slide 6: Business highlights
Business highlights Increased farmer spend on premium genetics and herd improvement services is breeding more efficient cows with a lighter environmental footprint. Premium Animal Research AB Products Health Testing and Development O
Slide 7: The year ahead
Annual Meeting The year ahead LIC’s focus will be on investing in research and development (R&D) for the future and delivering on our commitments to farmer shareholders. LIC expects underlying earnings in 2023-24 to be in the range of $17-22 million.
Slide 8: Strategy & commitments
Strategy & ommitment
Slide 9: Strategy
Strategy Environment Our Farmers TAN Deepen our understanding of the current and future needs of all of our farmers. Value for our Farmer Animal Shareholders [yor Most sustainable & efficient animal. Highest value products. Data & Digital Modernising the animal data & digital capabilities. Sustainab
Slide 10: Our three commitments to you
Our three commitments to you
Slide 11: We need to measure it to manage it
4 e need to measure it to manage tt Annual Meeting
Slide 12: Faster genetic improvement
Faster genetic improvement We commit to having your back when it comes to helping you meet the environmental challenges you face, in particular animal efficiency, and nitrogen and methane mitigation. Premier Sires bull team genetic gain 15 BW increase ACHIEVED per annum
Slide 13: Operational excellence
Operational excellence We commit to getting the basics right and delivering for you, on time, every time. Herd GeneMark® Testing Provide a result for 5-week turnaround 99.9% of all cows time for test within 72 hours (from booking week)
Slide 14: Software performance and reliability
Software performance and reliability We commit to being better at delivering our software to you. We renew our commitment to continuous improvement and transparency around delivery of new features. MINDA® availability 99-94% MINDA software available ACHIEVED to farmers 99% of time @ 14 LIC 2023 Annu
Slide 15: Financial overview
mlatelateie| overview Brent Mealings Chief Financial Officer
Slide 16: Financial overview
Financial overview Delivering value for our farmers is at the centre of everything we do and it’s results like this that enable us to do just that. Solid dividend Products and services R&D investment
Slide 17: Financial highlights
Financial highlights $276.5m ~$27.Am —$23.7m Total Revenue from Net Profit After Tax (NPAT) Underlying Earnings* Continuing Operations £ @® vp 2.4% from $26.7 million © @ down 7.6% from $25.7 up 5.1% from $263.2 million : last year : million last year last year : : 382.3m —$23.3m Total Assets 16.38
Slide 18: Total revenue
Total revenue NZSm 8 [o) 277 263 21 249 230 200.0 100.0 50.0 0.0 2019 2020 2021 2022 2023
Slide 19: Looking ahead
Looking ahead 417-22m Revised Earning Guidance 2023/24 (down from $22-28 million)
Slide 20: Investing in the future
Investing in the future 36%> 464% Other investments Critical including building infrastructure improvements, vehicles including software and equipment, and upgrades and key computer hardware. MINDA projects.
Slide 21: Investment in research and development
Investment in research and development $18.6 million investment in R&D representing 6.7% of revenue, up from $18.2 million. LIC is one of the largest private investors in R&D for the primary sector.
Slide 22: Breeding the best cows faster
Breeding the best David Chin Chief Executive
Slide 23: Breeding the best cows faster
Breeding the best cows faster
Slide 24: Breeding the best cows faster
Breeding the best cows faster
Slide 25: Breeding the best cows faster
Breeding the best cows faster
Slide 26: Breeding the best cows faster
Breeding the best cows faster
Slide 27: Breeding the best cows faster
Breeding the best cows faster
Slide 28: Breeding the best cows faster
Breeding the best cows faster
Slide 29: Breeding the best cows faster
Breeding the best cows faster
Slide 30: Breeding the best cows faster
Breeding the best cows faster
Slide 31: Breeding the best cows faster
Breeding the best cows faster
Slide 32: Honoraria report
mlelalelaelale Honoraria Committee Chair
Slide 33: Meeting resolutions
Meeting Murray King Board Chair
Slide 34: Resolution 1: Approval of LIC Directors' Remuneration
Resolution 1: Approval of LIC Directors’ Remuneration To receive and consider the LIC Honoraria Committee’s recommendation as to Directors’ remuneration, and if thought fit, to resolve by way of ordinary resolution to: “Approve the total remuneration of all nine Directors to be a maximum of $723,000
Slide 35: Resolution 1: Directors' Remuneration
Resolution 1: Directors’ Remuneration Current Recommended $ Increase Chair $132,000 $143,000 $11,000 Director $59,000 $65,000 $6,000 Discretionary Pool* $60,000 $60,000 No change Total for LIC Board $664,000 $723,000 $59,000 * Maximum pool available for additional duties and specialist skills, inclu
Slide 36: Resolution 2: Approval of Shareholder Reference Group Remuneration
Resolution 2: Approval of LIC Shareholder Reference Group Remuneration To receive and consider the LIC Honoraria Committee’s recommendation as to Shareholder Reference Group’s remuneration, and if thought fit, to resolve by way of ordinary resolution to: “Approve the total remuneration of all Shareh
Slide 37: Resolution 2: Shareholder Reference Group Remuneration
Resolution 2: Shareholder Reference Group Remuneration Current Recommended $ Increase SRG Chair $36,500 $40,000 $3,500 SRG Deputy Chair $17,000 $19,000 $2,000 SRG Member $12,600 $14,000 $1,400 Total $179,500 $199,000 $19,500 Daily Allowance Daily Allowance* $350 $400 $50 * Paid for time spent on ext
Slide 38: Resolution 3: Reappoint KPMG as External Auditor
Resolution 3: To reappoint KPMG as External Auditor To consider, and if thought fit, to resolve by way of ordinary resolution to: “Re-appoint the chartered accountancy partnership KPMG as the Auditor until the conclusion of the Company’s next Annual Meeting, and that the Directors be authorised to f
Slide 39: Resolution 4: Elect one Director for North Island Region
Resolution 4: To elect one Elected Director for the North Island Region To consider, and if thought fit, to resolve by way of ordinary resolution to: “Elect ONE (1) candidate representing the North Island Region as an Elected Director to the Board of Directors with effect from the conclusion of this
Slide 40: Resolution 4: Candidates
Resolution 4: To elect one Elected Director for the North Island Region Duncan Coull Ken Hames Matthew Hocken Richard Luxton
Slide 41: Resolution 5: Elect one Director for South Island Region
Resolution 5: To elect one Elected Director for the South Island Region To consider, and if thought fit, to resolve by way of ordinary resolution to: “Elect ONE (1) candidate representing the South Island Region, as an Elected Director to the Board of Directors with effect from the conclusion of thi
Slide 42: Resolution 5: Candidates
Resolution 5: To elect one Elected Director for the South Island Region Tony Miles Andrew Slater Victoria Trayner
Slide 43: Resolution 6: Ratify re-appointment of Sophie Haslem
Resolution 6: To ratify the re-appointment of Sophie Haslem as an Appointed Director To consider, and if thought fit: “Ratify the re-appointment of Sophie Haslem as an Appointed Director for a term expiring at the conclusion of the third Annual Meeting following this Annual Meeting (approximately th
Slide 44: Resolution 7: Elect two Shareholder Reference Group members
Resolution 7: To elect two members of the Shareholder Reference Group for the Lower North Territory To consider, and if thought fit, to resolve by way of ordinary resolution to: “Elect TWO (2) candidates from the Lower North Territory to the Shareholder Reference Group with effect from the conclusio
Slide 45: Resolution 7: Candidates
Resolution 7: To elect two members of the Shareholder Reference Group for the Lower North Territory Shaun Baxter Mark Hooper Thomas Read
Slide 46: Resolution 8: Re-election of Ian Brown
Resolution 8: Re-election of lan Brown to the Honoraria Committee To consider, and if thought fit, to resolve by way of ordinary resolution to: “Approve the re-election of lan Brown to the Honoraria Committee, with effect from the conclusion of this Annual Meeting” lan Brown
Slide 47: Resolution 9: Re-election of Gordon Glentworth
Resolution 9: Re-election of Gordon Glentworth to the Honoraria Committee To consider, and if thought fit, to resolve by way of ordinary resolution to: “Approve the re-election of Gordon Glentworth to the Honoraria Committee, with effect from the conclusion of this Annual Meeting” Gordon Glentworth
Slide 48: Resolution 10-12: Amend LIC's Constitution
Resolution 10-12: To amend LIC’s Constitution to reflect the Constitutional Changes To consider, and if thought fit, to resolve by way of three separate special resolutions: To approve: Resolution 10 - Delegations of Authority: the Constitutional Amendments set out in Part A of the table in Schedule
Slide 49: General business
General Murray King Board Chair
Slide 50: LIC 2023 Annual Meeting
50 LIC 2023 Annual Meeting
Slide 51: OLIC
OLIC
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