Australian Dairy Nutritionals Limited · ASX:AHF
Australian Dairy Nutritionals — Investor Presentation (November 2022)
34 slides from Australian Dairy Nutritionals's investor presentation, November 2022
Slide 1: Investor Presentation November 2022
INVESTOR PRESENTATION NOVEMBER 2022 AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 1
Slide 2: Our Mission Statement
Australian Dairy Nutritionals is a vertically integrated producer of premium dairy products, located on prime dairy farming land alongside the Great Ocean Road in Victoria. OUR MISSION STATEMENT We create premium, innovative dairy products that embody the best of Australian agriculture, support regi
Slide 3: Our Values
OUR VALUES WE ARE INNOVATIVE WE CHAMPION WE CELEBRATE WE STRIVE AND CREATE BRANDS AUSTRALIAN OUR CLEAN, GREEN TO GROW OUR AND DAIRY PRODUCTS AGRICULTURE AND REPUTATION AND FOCUS BUSINESS SAFELY THAT CONSUMERS MANUFACTURING ON SUSTAINABILITY AND PROFITABLY NEED AND LOVE AND ENVIRONMENTAL PROTECTION F
Slide 4: AHF's Vertical Integration Journey – 2018 to 2022
AHF’S VERTICAL INTEGRATION JOURNEY – 2018 to 2022 Vertical integration strategy has required significant 2022 Launch of Ocean up front investment PRIOR to product sales Road Dairies in Chemist Warehouse 2021 2022 future Gradulac Gentle Establish Ocean Road launches in Chemist Dairy joint venture War
Slide 5: Vertical Integration Strategy Delivered Notwithstanding Significant Challenges
VERTICAL INTEGRATION STRATEGY DELIVERED NOTWITHSTANDING SIGNIFICANT CHALLENGES • We have delivered our vertical integration strategy during a period of significant challenges • COVID-19 lockdowns and movement restrictions caused changes in consumer demand and preferences • Border closures and labour
Slide 6: Impact of COVID on Other Infant Formula Brand Owners
IMPACT OF COVID ON OTHER INFANT FORMULA BRAND OWNERS • The last 2 years have been very difficult for listed infant formula companies • AHF has delivered its strategy notwithstanding these challenges and is now very well positioned to leverage our investment as conditions normalise • AHF has faired c
Slide 7: Benefits of Vertical Integration Strategy
BENEFITS OF VERTICAL INTEGRATION STRATEGY Vertical integration strategy has required significant up front investment PRIOR to product sales BUT it has many benefits including: • Lower up front capital investment versus investment a larger plant • Lower minimum production volumes • Lower investment i
Slide 8: Our Business – 2018 to 2022
OUR BUSINESS – 2018 TO 2022 OUR FARMS OUR MANUFACTURING PLANT OUR BRANDS OUR DISTRIBUTION & PRODUCTS NETWORK VICTORIAN FARMS OUR MANUFACTURING PARTNERS TO AUSTRALIA AND OVERSEAS AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 8
Slide 9: FY22 Key Achievements
FY22 KEY ACHIEVEMENTS ü Installation and commissioning of our infant formula plant completed ü Right sized our farm portfolio to ensure raw milk production is aligned to our manufacturing requirements ü Closed non-core operations to focus on infant formula & nutritionals ü Established the Ocean Dair
Slide 10: FY22 Financial Results Key Highlights
FY22 FINANCIAL RESULTS KEY HIGHLIGHTS Revalued Net Net tangible Repaid Consolidated Farm Assets asset backing EBITDA Loss of Portfolio per security $12m UP $5.96m $3,020,918 UP 59% increased CBA Finance To $39,948,487 to 7.2 cents facility in full Was disappointing To $20,491,617 on FY21 but an impr
Slide 11: Our Business – FY23 and Beyond
OUR BUSINESS – FY23 and BEYOND OUR FARMS OUR MANUFACTURING PLANT OUR BRANDS OUR DISTRIBUTION & PRODUCTS NETWORK VICTORIAN FARMS OUR MANUFACTURING PARTNERS TO AUSTRALIA AND OVERSEAS AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 11
Slide 12: Our Brands, Products & Marketing
OUR BRANDS, PRODUCTS & MARKETING AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 12
Slide 13: Premium Australian Organic A2 Infant Formula
PREMIUM AUSTRALIAN ORGANIC A2 INFANT FORMULA SIMPLY THE WAY NATURE INTENDED IT TO BE. AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 13
Slide 14: Unique Australian Organic A2 Product
UNIQUE AUSTRALIAN ORGANIC A2 PRODUCT Ocean Road Dairies, the way nature intended it to be. Ocean Road Dairies Australian Organic A2 infant formula range is a unique synergy of nature’s goodness, kind to both the planet and on little tummies. What makes our ‘farm to formula’ range extra special is th
Slide 15: Unique Australian Organic A2 Product
UNIQUE AUSTRALIAN ORGANIC A2 PRODUCT FIRST FORMULA TO USE AUSTRALIAN HYGIENICALLY SEALED SPOON A2 ORGANIC COMPARTMENT IN LID MILK CONTAINS ESSENTIAL VITAMINS A, B12, C, D, E AND MINERALS IRON & IODINE AUSTRALIAN CERTIFIED ORGANIC A2 COW'S MILK FROM AHF FARMS PALM OIL FREE, DOES NOT CONTAIN SOY ADVAN
Slide 16: Consumer Marketing Plan
CONSUMER MARKETING PLAN Digital Marketing Organic Social, Website SEO, Content Blogs, Social Media Marketing, Video, Influencer Campaign Advertising Social Media, Pay Per Click, Google Search & Display, Pharmacy & Retail Support Events, Education & Awareness Healthcare, Education, Trade Exhibitions
Slide 17: Gentle, like everything for them
Gentle, like everything for them AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 17
Slide 18: Unique Innovative Infant Formula
Gradually introducing lactose UNIQUE INNOVATIVE INFANT FORMULA to little digestive systems 80% 40% 20% less less less lactose Australian made in Victoria, from fresh Australian milk. lactose lactose Unique, ‘Gradulac Gentle’ formulation with less lactose, gradually introducing lactose to little dige
Slide 19: Consumer Marketing Plan – Digital
CONSUMER MARKETING PLAN DIGITAL DIGITIAL CONTENT MARKETING PAID PER CLICK (PPC) ADVERTISING & SOCIALS (VIDEO / EDM / BLOGS ) SEARCH ENGINE OPTIMIZATION (SEO) & ORGANIC SEARCH YOU TUBE CHANNEL FOR HEALTHCARE ADVOCACY / WEBSITE – future® WEBINAR & VIDEO HOUSING INFLUENCER MARKETING COMMUNITY ENGAGEMEN
Slide 20: Consumer Marketing Plan – Traditional
CONSUMER MARKETING PLAN TRADITIONAL PUBLIC RELATIONS EVENTS POINT OF SALE AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 20
Slide 21: Digital Marketing – Social, Pay Per Click & SEO
DIGITAL MARKETING – SOCIAL, PAY PER CLICK (PPC) & SEO TOTAL SOCIAL IMPRESSIONS TOTAL WEBSITE TRAFFIC 8,000,000 70,000 7,000,000 60,000 6,000,000 50,000 5,000,000 40,000 4,000,000 30,000 3,000,000 2,000,000 20,000 1,000,000 10,000 0 0 Jan - Jun '22 July - Oct '22 Jan - Jun '22 July - Oct '22 Total So
Slide 22: Dedicated Retailer Advertising Support
DEDICATED RETAILER ADVERTISING SUPPORT We support our retailers to sell through our product by creating dedicated social media posts which are directed to our retailer’s online stores. Additional participation in retailer programmes is present via catalogue advertising, online and in- store opportun
Slide 23: China / CBEC Marketing
CHINA / CBEC MARKETING AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 23
Slide 24: Social Media - WeChat
SOCIAL MEDIA - Wechat AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 24
Slide 25: Social Media - Little Red Book
SOCIAL MEDIA - LITTLE RED BOOK AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 25
Slide 26: Endorsements – Key Opinion Leader (KOL) & KOC Examples
ENDORSEMENTS – KEY OPINION LEADER (KOL) & KOC EXAMPLES KOLs & KOCs post every month on Little Red Book and other channels AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 26
Slide 27: Distribution Growth & Product Pipeline
DISTRIBUTION GROWTH & PRODUCT PIPELINE AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 27
Slide 28: Growing Our Distribution Footprint
GROWING OUR DISTRIBUTION FOOTPRINT INTERNATIONAL AUSTRALIA EXISTING: China – CBEC EXISTING: Hong Kong Chemist Warehouse (national) Future + ORD Woolworths Online (everyday market) FUTURE: Key markets/expansions FUTURE: opportunities: Expanding the domestic footprint by targeting: Vietnam Major super
Slide 29: Product Pipeline
PRODUCT PIPELINE We are focused on sustainable growth for our new brands. We are also bringing “relevant and innovative” products to the market. Grow existing products via customer acceptance and market expansions. HORIZON 3 – VISION 36 MONTHS Life stage portfolio HORIZON 2 24 MONTHS Adult formula r
Slide 30: Our Farms
OUR FARMS AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 30
Slide 31: Our Dairy Farms
OUR DAIRY FARMS AVERAGE ANNUAL NAME OWNERSHIP STATUS SIZE (ha) HERD (estimate) ORGANIC CERTIFIED PRODUCTION (L)** Yaringa Owned 333 400 2.5 mllion September 2019 Brucknell South Owned 275 430 2.5 mllion October 2021 Brucknell North Leased 259 430 1.5 mllion October 2022 **Actual organic milk volumes
Slide 32: Aligning Milk Production to Manufacturing Capacity
ALIGNING MILK PRODUCTION TO MANUFACTURING CAPACITY 2021 x8 X5 FARMS 15-16 MILLION LITRES AHF INFANT FORMULA FACTORY 2ML 2022 x3 X3 FARMS 6-7 MILLION LITRES AHF INFANT FORMULA FACTORY 2ML Right sizing our farm portfolio has allowed us to pay back our $12M finance facility and invest in our vertical i
Slide 33: Environmental Focused Business
ENVIRONMENTAL FOCUSED BUSINESS We are committed to ethical, responsible and sustainable practices. We care where your food comes from and will always act with integrity to produce dairy products as pure as they can be. A BETTER BETTER FEED & BETTER FOR BETTER FOR BETTER FOR ENVIRONMENT HAPPIER COWS
Slide 34: Thank You
Thank You AUSTRALIAN DAIRY NUTRITIONALS GROUP INVESTOR PRESENTATION PAGE 34
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