Synlait Milk Ltd. · NZX:SML
Synlait Milk — Shareholder Meeting (December 2021)
35 slides from Synlait Milk's shareholder meeting presentation, Dec 1, 2021
Slide 1: Welcome to Synlait's Annual Meeting
WELCOME TO SYNLAIT’S ANNUAL MEETING 1 December 2021
Slide 2: Voting Online
PAGE 02 SYNLAIT ANNUAL MEETING 2021 VOTING ONLINE • Voting is now open. • To vote, click on the vote tab, and select your preferred option. Once your vote has been cast a tick will appear. • You can vote for all resolutions at once or by each resolution. • There is no submit or send button, your sel
Slide 3: Asking a Question Online
PAGE 03 SYNLAIT ANNUAL MEETING 2021 ASKING A QUESTION ONLINE • To ask a question click on the Q&A icon. • Click on the box, type your question, and press submit. • Your question will be asked at the appropriate part of the meeting. • Please ensure questions are succinct, clear and relevant to the me
Slide 4: Need Help?
PAGE 04 SYNLAIT ANNUAL MEETING 2021 NEED HELP? • Check the virtual meeting guide on Synlait’s website. • Call the Computershare team on +64 9 488 8777 • Use the Q&A tab to message a Computershare representative.
Slide 5: Chair Address
PAGE 05 SYNLAIT ANNUAL MEETING 2021 CHAIR ADDRESS Graeme Milne ONZM
Slide 6: Today's Agenda
PAGE 06 SYNLAIT ANNUAL MEETING 2021 TODAY’S AGENDA • Chair Address • CFO Address • CEO Address • Resolutions and Voting • Other Business
Slide 7: Introducing Min Chen
PAGE 07 SYNLAIT ANNUAL MEETING 2021 INTRODUCING MIN CHEN Bright Dairy Appointed Director • Min Chen to replace Min Ben as a Bright Dairy Appointed Director, effective today. • Min joined Bright Dairy in 2007 as senior Finance Manager, responsible for budget planning, data analysis and business evalu
Slide 8: FY21 Proved to Be Very Challenging for Synlait
PAGE 08 SYNLAIT ANNUAL MEETING 2021 FY21 PROVED TO BE VERY CHALLENGING FOR SYNLAIT • After nine straight years of profitability we were disappointed The Bull-Whip Effect to post our largest ever financial loss of $(28.5) million. • The shape of Synlait changed dramatically in December following The
Slide 9: We Have Reset and Are Ready for What Comes Next
PAGE 09 SYNLAIT ANNUAL MEETING 2021 WE HAVE RESET AND ARE READY FOR WHAT COMES NEXT During the last quarter of FY21 we carried out a comprehensive analysis of our performance and developed a plan to rebuild. We concluded five things: 1 Our strategy remains fit for purpose, however, execution clearly
Slide 10: CFO Address
PAGE 10 SYNLAIT ANNUAL MEETING 2021 CFO ADDRESS Robert Stowell
Slide 11: Obviously FY21 Was a Disappointing Result
PAGE 11 SYNLAIT ANNUAL MEETING 2021 OBVIOUSLY FY21 WAS A DISAPPOINTING RESULT Key Performance Metrics 65M 132M $ 1.4 B $ 37.3 M REVENUE EBITDA 103M $0.52 kgMS $ (28.5) M $ 7.82 kgMS NPAT TOTAL AVERAGE MILK PRICE 9% 85% $ 479.4 M $ 15.9 M NET DEBT OPERATING CASH FLOW
Slide 12: Actions in Place for FY22 to Improve Performance
PAGE 12 SYNLAIT ANNUAL MEETING 2021 A COMPREHENSIVE REVIEW AND SET OF ACTIONS HAVE BEEN PUT IN PLACE FOR FY22 TO IMPROVE PERFORMANCE • While the key impact in FY21 was The a2 Milk Company’s consumer- FY22 FY22 packaged infant formula volume reduction – pleasing progress is being made in a range of o
Slide 13: CEO Address
PAGE 13 SYNLAIT ANNUAL MEETING 2021 CEO ADDRESS Dr. John Penno
Slide 14: Our Strategy Remains Fit for Purpose
PAGE 14 SYNLAIT ANNUAL MEETING 2021 OUR STRATEGY REMAINS FIT FOR PURPOSE HEART OUR PURPOSE HEAD OUR AMBITION HANDS OUR STRATEGY DOING MILK DIFFERENTLY FOR A 2 DOING MILK DIFFERENTLY FOR A HEALTHIER WORLD HEALTHIER WORLD $2 billion in revenue Ingredients Net Positive + for the Planet Net +ve impact o
Slide 15: Aligning Structure to Strategy
PAGE 15 SYNLAIT ANNUAL MEETING 2021 ALIGNING STRUCTURE TO STRATEGY Suzan Horst Nigel Macdonald Robert Stowell Boyd Williams Deborah Marris Chris France Grant Watson Quality, Regulatory and Director – Chief Financial Director – People Director – Legal, Risk Director – Strategy and Chief Executive Off
Slide 16: Ingredients
PAGE 16 SYNLAIT ANNUAL MEETING 2021 INGREDIENTS An efficient and focused business that manufactures high-quality whole and skim milk powder and milk fat products from a differentiated milk supply for leading multinationals and large Chinese customers. Our FY22 focus is to: Separate out this business
Slide 17: Nutritionals
PAGE 17 SYNLAIT ANNUAL MEETING 2021 NUTRITIONALS A whole of supply chain solution for large-scale, world- class, multinational brand owners of formulated nutritional powders and specialised nutritional ingredients. Our FY22 focus is to: Develop and maintain relationships with large multinational and
Slide 18: Beverages and Cream
PAGE 18 SYNLAIT ANNUAL MEETING 2021 BEVERAGES AND CREAM A growing business focused on product development to manufacture high specification, long-life consumer-packaged beverages, foodservice cream products, and ready to feed infant formula. Our FY22 focus is to: Develop this new high-value, future-
Slide 19: Consumer Foods Dairyworks
PAGE 19 SYNLAIT ANNUAL MEETING 2021 CONSUMER FOODS DAIRYWORKS A manufacturer of consumer fresh milk, cheese, butter, and yoghurt products under our own and/or private label brands. Our FY22 focus is to: Grow Dairyworks to become the second biggest player in New 1 Zealand’s consumer dairy food catego
Slide 20: We Remain Confident in Our FY22 Guidance
PAGE 20 SYNLAIT ANNUAL MEETING 2021 WE REMAIN CONFIDENT IN OUR FY22 GUIDANCE Synlait expects its Net Profit After Tax result to return Synlait’s performance will build into FY23 as its new to robust profitability in FY22 based on: multinational customer at Synlait Pokeno ramps up, and its • A return
Slide 21: Questions
QUESTIONS
Slide 22: Asking a Question Online
PAGE 22 SYNLAIT ANNUAL MEETING 2021 ASKING A QUESTION ONLINE • To ask a question click on the Q&A icon. • Click on the box, type your question, and press submit. • Your question will be asked at the appropriate part of the meeting. • Please ensure questions are succinct, clear and relevant to the me
Slide 23: Resolutions and Voting
RESOLUTIONS AND VOTING
Slide 24: Your 2022 Board Structure
PAGE 24 SYNLAIT ANNUAL MEETING 2021 YOUR 2022 BOARD STRUCTURE • When Grant Watson starts as CEO Graeme Proposed 2022 Board Structure Milne will retire as Chair and be appointed as a Board Advisor for one year. • John Penno will be appointed Chair when Graeme retires and Paul McGilvary Dr John Penno
Slide 25: Introducing Paul McGilvary
PAGE 25 SYNLAIT ANNUAL MEETING 2021 INTRODUCING PAUL MCGILVARY Independent Director • Paul has extensive dairy sector experience. • He is currently Deputy Chair of AsureQuality, Chair of BVAQ Australia, and a Non-Executive Director of Waikato Milking Systems. • Paul previously held several executive
Slide 26: Introducing Grant Watson
PAGE 26 SYNLAIT ANNUAL MEETING 2021 INTRODUCING GRANT WATSON Synlait’s New CEO • Grant will join the Synlait team on 24 January 2022. • Grant is currently CEO of dairy company, Miraka. • Prior to Miraka, Grant spent 10 years at Fonterra where he held several senior roles including, Director of Globa
Slide 27: Resolution 1 Auditor's Appointment and Remuneration
PAGE 27 SYNLAIT ANNUAL MEETING 2021 RESOLUTION 1 AUDITOR’S APPOINTMENT AND REMUNERATION “That PricewaterhouseCoopers be appointed as auditor of the Company and that the Board be authorised to determine the auditors’ fees and expenses for the 2022 financial year.” Voting online To vote, click on the
Slide 28: Resolution 2 Re-election of Director
PAGE 28 SYNLAIT ANNUAL MEETING 2021 RESOLUTION 2 RE-ELECTION OF DIRECTOR “That Graeme Milne ONZM be re-elected as a Director.” Voting online To vote, click on the vote tab, and select your preferred option. Once your vote has been cast a tick will appear. There is no submit or send button, your sele
Slide 29: Resolution 3 Re-election of Director
PAGE 29 SYNLAIT ANNUAL MEETING 2021 RESOLUTION 3 RE-ELECTION OF DIRECTOR “That Dr John Penno be re-elected as a Director.” Voting online To vote, click on the vote tab, and select your preferred option. Once your vote has been cast a tick will appear. There is no submit or send button, your selectio
Slide 30: Resolution 4 Constitution Amendment
PAGE 30 SYNLAIT ANNUAL MEETING 2021 SPECIAL RESOLUTION RESOLUTION 4 CONSTITUTION AMENDMENT The company proposes one amendment to the Constitution to enable the Chair of the Board to be either an Independent Director or the Board Appointed Director for a limited period up until the next Annual Meetin
Slide 31: Other Business
OTHER BUSINESS
Slide 32: Asking a Question Online
PAGE 32 SYNLAIT ANNUAL MEETING 2021 ASKING A QUESTION ONLINE • To ask a question click on the Q&A icon. • Click on the box, type your question, and press submit. • Your question will be asked at the appropriate part of the meeting. • Please ensure questions are succinct, clear and relevant to the me
Slide 33: Farewell and Thanks to Graeme Milne
PAGE 33 SYNLAIT ANNUAL MEETING 2021 FAREWELL AND THANKS TO GRAEME MILNE
Slide 34: This Concludes Synlait's Annual Meeting
THIS CONCLUDES SYNLAIT’S ANNUAL MEETING Thank you for attending
Slide 35: Disclaimer
PAGE 35 SYNLAIT ANNUAL MEETING 2021 DISCLAIMER This presentation is given on behalf of Synlait • includes statements relating to past Synlait, its directors, employees and/or Milk Limited (Synlait). Information in this performance, which should not be regarded shareholders shall have no liability wh