Inghams Group Ltd. · ASX:ING
Inghams — Investor Presentation (April 2017)
21 slides from Inghams's investor presentation, Apr 6, 2017
Slide 1: Food & Beverage Focus Day
For personal use only Inghams Group Limited Food & Beverage Focus Day 6 APRIL 2017
Slide 2: Important notice and disclaimer
Important notice and disclaimer For personal use only 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
Slide 3: Recap: Who we are
Recap: Who we are The largest vertically integrated poultry producer across Australia and New Zealand, with a For personal use only long-standing reputation for quality and service FY16 revenue: A$2,309m Poultry Stockfeed FY16 revenue: A$2,014m (87% of Group revenue) FY16 revenue: A$293m (13% of Gro
Slide 4: Attractive industry structure
Recap: Attractive industry structure Domestic demand for chicken is met by domestic producers, with stringent biosecurity For personal use only regulations restricting imports to Australia and New Zealand Import restrictions Biosecurity controls Australia New Zealand Department of NZ Customs and Gov
Slide 5: Strong underlying demand for poultry
Recap: Strong underlying demand for poultry Strong consumption growth, supported by a shift in consumer preferences towards healthier For personal use only and more affordable forms of protein Total chicken consumption - Australia1 Australian animal protein consumption2 1,250 14% 1990 – 2015 CAGR: 4
Slide 6: Favourable production economics
Recap: Favourable production economics Driven by genetic improvements, feed and nutrition and ‘industrialisation’ of the supply chain For personal use only Indicative FCR1,2 Improvement drivers Selective breeding techniques have improved (kg of feed to produce 1kg liveweight) 9.2 - 13.8 Genetic 16
Slide 7: Product overview
Recap: Product overview Ingham’s supplies a range of high quality products through both its Poultry and Stockfeed operations. Sales For personal use only are diversified across channels, with a significant portion of value enhanced and further processed products Product overview Primary Free Range V
Slide 8: Vertically integrated operations
Recap: Vertically integrated operations Complex supply chain supported by integrated planning and optimisation For personal use only Integrated Planning and Optimisation Feed milling Further processing Warehousing and distribution Breeder farms Quarantine Primary Genetics GGPs1 GPs2 Parents Hatcheri
Slide 9: Large scale network, with high quality asset base
Recap: Large scale network, with high quality asset base Ingham’s national scale and vertically integrated operations provide a number of benefits, For personal use only including production flexibility, cost efficiencies and reducing operating or agricultural risks Facilities / farms1 Type Australi
Slide 10: Ingham's – A World Class Food Company
Ingham’s – A World Class Food Company For personal use only PAGE // 9
Slide 11: Project Accelerate
Recap: Project Accelerate Implementation of the multi year transformation project is well underway For personal use only Innovation and Differentiation Focused exports strategy Accelerate FP network utilisation Farming efficiency Feed business strategy Labour productivity Automation
Slide 12: 1H FY17 Financial highlights
Recap: 1H FY17 Financial highlights For personal use only Poultry Volume Revenue Gross Profit EBITDA NPAT Net debt Stub dividend 248.2kt $1,227.2m $229.0m $95.2m $51.3m ↑ 12.9% ↑ 4.3% ↑ 9.0% ↑ 9.1% ↑ 13.8% $403.4m 2.6 cps Total Poultry volume growth of 12.9% (growth in core chicken and turkey prod
Slide 13: Brand and Customer update
Brand and Customer update For personal use only Branding refresh Brand refresh underway Ongoing supply to key QSR customer finalised for FY2018+ Long-term customer relationships — continue as lead supplier and innovation champion Customer Years of uninterrupted supply — some reduction in base vo
Slide 14: Investing for growth
Investing for growth Key South Australian projects well underway For personal use only — SA hatchery: expansion completed / commissioned — SA breeder network: expansion on schedule Capacity — SA feed mill: civil works underway New Zealand hatchery and breeder network projects progressing Furth
Slide 15: Simplified organisation structure
Simplified organisation structure The organisation structure has evolved in line with strategy implementation For personal use only Mick McMahon Chief Executive Officer Joined Ingham’s: 2015 Years experience: 30+ years Ian Brannan Chief Financial Officer Joined Ingham’s: 2015 Years experienc
Slide 16: Outlook
Outlook Reconfirm FY17 prospectus forecast of $98.8M pro forma NPAT based on current trading outlook For personal use only No material impact of QLD / NSW floods Australian volume growth is expected to be broadly in line with the prospectus forecast for the full year — will start to cycle a numb
Slide 17: Appendix
For personal use only Appendix
Slide 18: Prospectus Pro forma profit and loss summary
Prospectus Pro forma profit and loss summary For personal use only Pro Forma Pro Forma Historical Prospectus FY14 FY15 FY16 FY17 $ millions 52 weeks 52 weeks 52 weeks 52 weeks Revenue 2,230.5 2,271.9 2,308.7 2,375.0 Strong volume growth underpinned by Gross profit 379.3 351.1 422.4 458.4 contract
Slide 19: 1H FY2017 Pro forma Profit & Loss
1H FY2017 Pro forma Profit & Loss For personal use only Pro forma Pro forma $ millions 1H FY2017 1H FY2016 Variance % Volume & Revenue Growth Strong growth in Australian poultry volume NZ volumes flat in response to oversupply Poultry volumes (kt) 248.2 219.8 28.4 12.9% Feed volumes (kt) 297.1 2
Slide 20: 1H FY2017 Pro forma Cash flow and Balance Sheet
1H FY2017 Pro forma Cash flow and Balance Sheet For personal use only Pro forma Pro forma $ millions 1H FY2017 1H FY2016 Variance Cashflow Improved operating cashflow over 1H FY2016 EBITDA 95.2 87.3 7.9 Non-cash items (0.3) (3.5) 3.2 Working capital increase due to trade debtors, driven by incre
Slide 21: 1H FY2017 Reconciliation of Statutory results to pro forma
1H FY2017 Reconciliation of Statutory results to pro forma For personal use only $ millions 1H FY2017 1H FY2016 Statutory EBITDA 61.5 63.0 1. Removal of costs of listing on ASX in November 2016 IPO transaction costs ❶ 28.0 - 2. Relates to fees for services charged by TPG entities that will not be in