Arborgen Holdings Limited · NZX:ARB
Arborgen — Shareholder Meeting (September 2023)
15 slides from Arborgen's shareholder meeting presentation, Sep 20, 2023
Slide 1: Annual Shareholders' Meeting 2023 - Welcome
20 September 2023 2023 Annual Shareholders’ Meeting ArborGen Holdings Annual Meeting 2023 1 Welcome Dave Knott Chair of the Board ArborGen Holdings Annual Meeting 2023 2 1
Slide 2: Online Questions and Voting
20 September 2023 Online Questions • To submit a question during the Q&A meeting − Select the Q&A tab on the right of your screen at anytime − Type your question into the field and press send • For help − Refer to the virtual meeting guide − Use the chat function ArborGen Holdings Annual Meeting 202
Slide 3: Introduction and Programme
20 September 2023 Introduction Paul Smart George Adams Justin Birch Thomas Avery Ozey Horton ArborGen Holdings Annual Meeting 2023 5 Programme • Chief Executive’s review • Chair’s address • Shareholders’ questions • Formal resolutions ArborGen Holdings Annual Meeting 2023 6 3
Slide 4: CEO's Review
20 September 2023 CEO’s Review ArborGen Holdings Annual Meeting 2023 7 Justin Birch Chief Executive Officer ArborGen Holdings Annual Meeting 2023 8 4
Slide 5: Management transition and March 2023 YE commercial highlights
20 September 2023 Management transition • Departure of Andrew Baum • Appointment of Adriano de Almeida, GM of Brazil • Excited about growth prospects and opportunities with a great team including industry leaders • Continued support from Andrew and Gabriela • Comprehensive site visits and team meeti
Slide 6: March 2023 YE financial results
20 September 2023 March 2023 YE financial results • Revenue $56.1m, up 18% • Gross margin $18.2m, up from $17.8m • Operating profit including items outside normal operations $2.2m, up from -$1.3m • Net loss after tax of $2.5m, down from $1.7m • US-GAAP EBITDA1 of $10.3m, up 35% • Adjusted US-GAAP EB
Slide 7: Mission, vision and values; Our strategy
20 September 2023 Mission, vision and values • Mission - to produce superior-performing trees for the forestry industry through innovation, strategic partnerships, and dedication to our client's success • Vision - to be the world-leading provider of value-added, high-quality seedlings for the forest
Slide 8: Key initiatives to build our business; Brazil
20 September 2023 Key initiatives to build our business Building a sustainable and highly profitable business • Expanding our market share and increasing MCP adoption in the US • Focusing our product development efforts on market driven genetics for the future • Opportunistic and measured expansion
Slide 9: Eucalyptus market in Brazil
20 September 2023 Eucalyptus market in Brazil • Eucalyptus pulp is an excellent short-fibre hardwood pulp • Brazil is the world’s largest producer and exporter of hardwood pulp • Significant expansion in the Brazilian pulp industry projected to increase pulp production capacity by ~30% Project Name
Slide 10: Growing Brazil; Current FY2024 update
20 September 2023 Growing Brazil Over the last 18 months we have: • Acquired a 10m seedling capacity pine nursery in Santa Catarina • Leased a fourth 20m capacity eucalyptus nursery in Minas Gerais state • Leased our fifth 5m capacity eucalyptus nursery in Mato Grosso • Acquired our sixth 15m capaci
Slide 11: Chair's address
20 September 2023 Chair’s address ArborGen Holdings Annual Meeting 2023 21 Management transition • Justin Birch, new Group CEO − strong background in private equity − a great fit for our Company to lead the business through its next phase • Adriano de Almeida, GM of Brazil − experience in tree impro
Slide 12: Ownership changes; Growth and strategic initiatives
20 September 2023 Ownership changes • Simplified the ownership of ArborGen Inc by repurchasing warrants equating to ~5% of ArborGen Inc’s fully diluted common stock for $1.35m • The warrants arose from the acquisition of the assets of CellFor Inc in 2012 • ArborGen Holdings’ effective economic inter
Slide 13: FY2024 outlook
20 September 2023 FY2024 US • We have sold nearly 90% of all seedlings • Not expecting seedlings sales volumes to be materially different to FY23 levels • Expecting solid improvement in revenues, gross margins and earnings • higher average selling prices • lower unit MCP seed costs expensed in cost
Slide 14: Summary and Questions
20 September 2023 Summary • We are very excited about ArborGen’s future − Strong new leadership − Refined the business to focus on core existing and emerging growth markets − Strengthened our balance sheet, to ensure we deliver on the Company’s growth potential • We are committed to ensuring strong
Slide 15: Resolutions
20 September 2023 Resolutions ArborGen Holdings Annual Meeting 2023 29 Resolutions Resolution 1 To re-elect Paul Smart as a Director Resolution 2 To issue 10,471,477 restricted ordinary shares to the Chief Executive Officer, Mr Justin Birch Resolution 3 To authorise the Directors to fix Deloitte’s f
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