Bega Cheese Limited · ASX:BGA
Bega Cheese — Shareholder Meeting (October 2021)
38 slides from Bega Cheese's shareholder meeting presentation, Oct 26, 2021
Slide 1: Annual General Meeting
For personal use only Annual General Meeting Barry Irvin Executive Chairman Paul van Heerwaarden Chief Executive Officer
Slide 2: Agenda
Agenda For personal use only FY2021 Annual Report Chairman’s report 5 Chief Executive Officer’s report 12 Questions 25 Adoption of remuneration report 29 Election of Directors 30 Director pool increase 35 Amendments to the constitution 36
Slide 3: Welcome
Welcome For personal use only Shareholders Suppliers PricewaterhourseCoopers Addisons Lawyers Link Market Services Bega Cheese staff Apologies Page | 3 FY2021 Annual General Meeting
Slide 4: FY2021 Annual Report
For personal use only FY2021 Annual Report Barry Irvin Executive Chairman
Slide 5: Key messages
Key messages Strong financial performance in the context of challenging markets For personal use only and a major acquisition Revenue of $2.07b (includes five months LDD) Statutory EBITDA of $182.7m and normalised EBITDA of $141.7m Balance sheet continues to strengthen, leverage ratio 2.25
Slide 6: Bega is a values led organisation
Bega is a values led organisation For personal use only Our Vision To become The Great Australian Food Company Our Values Passion for the customer Grow our Invest in Support and the consumer people our future each other What will Great food Great people Great aspirations Greater good make us Great W
Slide 7: Our transformation to becoming The Great Australian Food Company
Our transformation to becoming The Great Australian Food Company For personal use only The Future The Great Australian 2021 Food Company Transformational 2018 Acquisition Creating Strengthening 2017 Our Supply Chain Acquisition of Lion great food for a better future New Business 2011 Dairy and Drink
Slide 8: Creating sustainable growth through an integrated value chain
Creating sustainable growth through an integrated value chain For personal use only Our vision The Great Australian Food Company Our values We are a value-led company Passion for the customer and consumer Grow our people Invest in our future Support each other These values are reflected in our visio
Slide 9: Growing a portfolio of iconic brands
Growing a portfolio of iconic brands For personal use only Pre 2017 2020 Acquisition rationale Today Limited investment Acquiring brands Acquisition of Lion in brands in new categories Iconic Australian Dairy and Drinks brands in growth Strong portfolio of iconic brands Fonterra responsible for Exte
Slide 10: Sustainability and the Circular Economy
Sustainability and the Circular Economy For personal use only Bega Cheese carbon target Scope 1 and 2 emissions targets established in support of Paris Agreement goals: 50% reduction in emissions intensity by 2030 40% reduction in absolute emissions by 2030 Net zero emissions by 2050 Circulari
Slide 11: Our year in review
For personal use only Our year in review Paul van Heerwaarden Chief Executive Officer
Slide 12: Commercial and operations update
Commercial and operations update A year of challenge, opportunity and transformation For personal use only Financial performance and balance sheet position to support further growth Well progressed with Bega Dairy and Drinks integration and realisation of synergies Full year benefit from Koroi
Slide 13: Creating value through organic and acquisitive sales
Creating value through organic and acquisitive sales 27% growth in a challenging market 73% Bulk For personal use only Branded FY2021 $2.0b $1.5b 41% 59% Bulk Branded $1.0b FY2020 20% $0.5b Branded 80% Bulk $0.0b Pre 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 14: Performance highlights
Performance highlights FY2021 Revenue FY2020 Revenue $2.07 $1.49 Reduction in normalised EBITDA to net debt leverage ratio from 2.35 times to 2.25 times For personal use only Normalised EBITDA increased by 38% to $141.7 million Statutory EBITDA increase by 108% to $182.7 million Operating ca
Slide 15: Reconciliation of normalised result
Reconciliation of normalised result For personal use only Gains Consolidated LDD Relating Reckitt Period Ending 30 June 2021 Per Financial Transaction to LDD Termination Kraft Legal Other Normalised ($ million) Statements Related Costs Acquisition Fees Settlement Costs Outcome Revenue 2,073.4 - - (1
Slide 16: Balance sheet
Balance sheet The FY2021 balance sheet includes a provisional fair value assessment on the acquisition of Lion Dairy and Drinks For personal use only FY2021 FY2020 $m $m Cash 87.2 22.9 Provisional fair value of net assets acquired in Bega Trade and other receivables 348.9 69.5 Dairy and Drinks $60
Slide 17: Cash flow
Cash flow FY2021 FY2020 For personal use only $m $m Receipts from customers 2,221.7 1,691.6 Continued strong operating cash flow performance and focus on working capital Payments to suppliers and employees (2,086.5) (1,494.9) Increase in net debt to fund the acquisition of Net payments to trade
Slide 18: Lion Dairy and Drinks integration update
Lion Dairy and Drinks integration update Integration and synergy realisation program For personal use only Initial 100 day plan successfully completed and new organisation design in place Strong cultural alignment and depth of talent in the newly combined businesses Several key services have b
Slide 19: Portfolio of leading iconic brands in growth categories
Portfolio of leading iconic brands in growth categories Category Category size $m1 Category growth1 Bega share1 Brand portfolio For personal use only Fresh white milk2 1,913 0.4% 13% Yoghurt 1,472 4.7% 26% Milk based beverages2 836 5.6% 50% Spreads 633 1.7% 31% Chilled juice 605 3.9% 24% Creams and
Slide 20: Expanded and diversified manufacturing network across Australia
Expanded and diversified manufacturing network across Australia For personal use only Page | 20 FY2021 Annual General Meeting
Slide 21: Approach to corporate social responsibility
Approach to corporate social responsibility Our focus is on the five areas where we can have the greatest impact For personal use only Food Diversity, inclusion Greenhouse Packaging Water nutrition and equality gases sustainability sustainability Highlights FY2021 Highlights FY2021 Highlights FY2021
Slide 22: Our way forward
For personal use only Our way forward Barry Irvin Executive Chairman
Slide 23: Where are we today?
Where are we today? Continuing integration of Bega Dairy and Drinks For personal use only Improving financial performance and benefits of scale Strengthening balance sheet Strong brands in growth categories Opportunity for further growth and business improvement Geographic product and ch
Slide 24: Our priorities
Our priorities For personal use only Safety of our people and wellbeing Ongoing management of the impacts of COVID-19 Continue to realise Bega Dairy and Drinks synergies Invest in brands, market and new capabilities Further manufacturing optimisation projects Opportunities for further ra
Slide 25: Q&A
For personal use only Q&A Barry Irvin Executive Chairman
Slide 26: Formalities and voting
For personal use only FY2021 Annual General Meeting Formalities and voting Barry Irvin Executive Chairman
Slide 27: Voting procedure
Voting procedure For personal use only A poll is being held for all resolutions Share registrar Ms Julie Stokes of Link Market Services Limited will act as Returning Officer in relation to the polls Login to the portal (https://agmlive.link/BGA21) and follow the prompts to vote Results avail
Slide 28: Resolutions
Resolutions For personal use only Adopt remuneration report for the year ended 30 June 2021 Election of Directors Harper Kilpatrick Barry Irvin Raelene Murphy Richard Cross Director pool increase Amendments to the Constitution Page | 28 FY2021 Annual General Meeting
Slide 29: Remuneration report
Remuneration report For personal use only Pages 36 to 50 of the 2021 Annual Report Board, Executive Chairman, CEO and other key management personnel Market data and external advisors Total Votes 161,741,426 (53.38%) For 157,341,105 (97.28%) Open 3,296,298 (2.04%) Against 1,104,023 (0.6
Slide 30: Election of Directors
Election of Directors For personal use only Harper Kilpatrick Barry Irvin Raelene Murphy Richard Cross Page | 30 FY2021 Annual General Meeting
Slide 31: Harper Kilpatrick
Harper Kilpatrick For personal use only Total Votes 167,750,540 (55.37%) For 164,004,978 (97.77%) Open 3,092,207 (1.84%) Against 653,355 (0.39%) Page | 31 FY2021 Annual General Meeting
Slide 32: Barry Irvin
Barry Irvin For personal use only Total Votes 167,815,939 (55.39%) For 147,955,718 (88.17%) Open 3,060,451 (1.82%) Against 16,799,770 (10.01%) Page | 32 FY2021 Annual General Meeting
Slide 33: Raelene Murphy
Raelene Murphy For personal use only Total Votes 167,800,788 (55.38%) For 155,760,939 (92.82%) Open 3,078,497 (1.83%) Against 8,961,352 (5.34%) Page | 33 FY2021 Annual General Meeting
Slide 34: Richard Cross
Richard Cross For personal use only Total Votes 167,795,436 (55.38%) For 160,261,315 (95.51%) Open 3,097,214 (1.85%) Against 4,436,907 (2.64%) Page | 34 FY2021 Annual General Meeting
Slide 35: Director's fee pool increase
Director’s fee pool increase For personal use only Director’s fee pool has not been increased for five years and the proposed increase is expected to be sufficient for a further five years Total Votes 162,515,395 (53.64%) Current maximum aggregate yearly remuneration for Directors $1,200,000 F
Slide 36: Changes to the Constitution
Changes to the Constitution For personal use only There have been no amendments to the Constitution since the Company listed on the ASX in 2011. Following a recent review of the Company’s Constitution, the changes set out below are proposed. Total Votes 165,669,893 (54.68%) Removal of Rule 3 – M
Slide 37: Becoming The Great Australian Food Company
For personal use only Becoming The Great Australian Food Company
Slide 38: Disclaimer
Disclaimer The following disclaimer applies to this presentation and any information provided in this presentation (Information). You are advised to read For personal use only this disclaimer carefully before reading or making any other use of this presentation or any Information. This presentation