Inghams Group Ltd. · ASX:ING
Inghams — FY2017 Earnings Presentation
22 slides from Inghams's earnings presentation, Aug 22, 2017
Slide 1: Inghams Group Limited FY2017 Results Presentation
Inghams Group Limited FY2017 Results Presentation 22 AUGUST 2017
Slide 2: Important notice and disclaimer
Important notice and disclaimer Disclaimer The material in this presentation is general background information about the activities of Inghams Group Limited (Ingham’s) and its subsidiaries (Ingham’s Group), current at the date of this presentation, unless otherwise noted. It is information given in
Slide 3: Group highlights
Broiler Farm South Australia Group highlights
Slide 4: Group highlights
Group highlights Volume growth and financial performance ahead of prospectus forecasts Strong volume growth in Australia driven primarily through Retail and QSR channels Chicken remains the competitive protein, supporting the drive by customers to deliver value Highlights Improved New Zealand
Slide 5: Financial highlights – Pro forma FY17 vs FY16
Financial highlights – Pro forma FY17 vs FY16 Poultry Revenue Gross EBITDA NPAT Net debt EPS Final Volume Profit Dividend 495.3kt $2,383.9m $456.8m $195.0m $102.0m $297.7m 27.4 cps 9.5 cps ↑ 11.5% ↑ 3.3% ↑ 8.1% ↑ 16.4% ↑ 22.8% ↓ ↑ 22.8% Total Poultry volume growth of 11.5% (core chicken and turkey
Slide 6: Pro forma Segment Information – Australia
Pro forma Segment Information – Australia Actual Prospectus Actual Summary: Australia $ millions FY2017 FY2017 Var. % FY2016 Var. % Poultry volume growth excluding ingredients of 8.8% Australia Profit improvement delivered despite challenges created Poultry 421.8 404.6 17.2 4.3% 371.9 49.9 13.4%
Slide 7: Pro forma Segment Information – New Zealand
Pro forma Segment Information – New Zealand Actual Prospectus Actual Summary: New Zealand $ millions FY2017 FY2017 Var. % FY2016 Var. % Improved trading conditions and performance in H2 New Zealand Poultry 73.5 73.7 0.2 (0.3)% 72.3 1.2 1.7% Poultry volume growth in 2H offset 1H weakness volumes
Slide 8: Financial results
Further Processing Plant Edinburgh Parks, South Australia Financial results
Slide 9: Pro forma Profit & Loss
Pro forma Profit & Loss Actual Prospectus Actual Volume & Revenue Growth $ millions FY2017 FY2017 Var. % FY2016 Var. % Strong growth in Australian poultry volume Poultry volumes (kt) 495.3 478.3 17.0 3.6% 444.2 51.1 11.5% NZ volumes flat across the year but growth in 2H as Feed volumes (kt) 565.
Slide 10: Pro forma Cash Flow and Balance Sheet
Pro forma Cash Flow and Balance Sheet Pro forma Prospectus Pro forma YoY Cashflow $ millions FY2017 FY2017 FY2016 Variance Operating cash conversion 105% EBITDA 195.0 190.1 167.5 27.5 – ~100% excluding impact of inventory financing facility Non-cash items (6.6) 1.0 (0.3) (6.3) Net Debt to EBITDA
Slide 11: Strategy update
Feed mill Berrima, New South Wales Strategy update
Slide 12: Ingham’s – A World Class Food Company
Ingham’s – A World Class Food Company PAGE // 11
Slide 13: Project Accelerate
Project Accelerate Implementation of the multi year transformation project is well underway Innovation and Differentiation Focused exports strategy Accelerate FP network utilisation Farming efficiency Feed business strategy Labour productivity Automation Procurement Accelerate Netw
Slide 14: Project Accelerate and capital investment update
Project Accelerate and capital investment update Automation projects delivering benefits in improved processing yields and reduced costs – FY18 automation focus on New Zealand and FP Plants, plus identified plant debottlenecking initiatives Labour productivity improving as key multi-year EBA agr
Slide 15: Feed and electricity pricing update
Feed and electricity pricing update ING feed costs vs average selling prices (FY06 – 17)^ Delivered broiler feed cost ($ per KG) Feed prices have been moving higher in recent months Index ASP of chicken ($ per KG) Over 60% of Australian poultry volumes include feed pass through mechanisms and co
Slide 16: Simplified organisation structure
Simplified organisation structure Organisation structure will continue to evolve in line with strategy implementation Mick McMahon Chief Executive Officer Ian Brannan Chief Financial Officer Quinton Hildebrand Jonathan Gray Janelle Cashin Adrian Revell Omega Abaldonado Julia Seddon Chief Commercial
Slide 17: Outlook
Breeder Farm Matamata, New Zealand Outlook
Slide 18: Outlook
Outlook Strategy implementation remains on track Growth in Australian poultry volumes expected to be closer to historical average as we cycle EDLP initiatives Continuing to optimise and rebalance the supply chain following rapid volume growth in FY17 Improved New Zealand 2H performance has c
Slide 19: Appendix
> Fie Heart of the Table. — Appendix
Slide 20: Reconciliation of Statutory results to pro forma
Reconciliation of Statutory results to pro forma Prospectus $ millions FY2017 FY2017 FY2016 Statutory EBITDA 160.3 154.5 106.6 1. Removal of costs of listing on ASX in November 2016 IPO transaction costs ❶ 28.0 28.9 0.4 2. Relates to fees for services charged by TPG entities that Advisory fees ❷ 1.2
Slide 21: Summary of Provisions (per Financial Statements)
Summary of Provisions (per Financial Statements) $ millions FY2017 FY2016 Variance Working Capital Provisions Inventory 5.8 5.6 Doubtful debts 1.4 0.1 Increased provisions for inventory / doubtful debts TOTAL Working Capital Provisions 7.2 5.7 1.5 Provisions per Financial Statements Reduction in
Slide 22: Risks Summary (per Financial Statements)
Risks Summary (per Financial Statements) Material business risks faced by the Group that may have a significant effect on the financial prospects of the Group include: Import restrictions: Changes to import quarantine conditions in Australia and/or New Zealand that would allow additional forms of