Australian Dairy Nutritionals Limited · ASX:AHF
Australian Dairy Nutritionals — Australian Dairy Farms Group — Investor Presentation (April 2016)
22 slides from Australian Dairy Nutritionals's investor presentation, Apr 22, 2016
Slide 1: Australian Dairy Farms Group - Letter to Unitholders
Australian Dairy Farms Group ASX Code: AHF 22 April 2016 For personal use only Dear Unitholder, Australian Dairy Farms Group acquisition of Camperdown Dairy Company Australian Dairy Farms Group (AHF) is pleased to see the completion of the acquisition of Camperdown Dairy Company (CDC) after very len
Slide 2: ASX's only vertically integrated dairy company
Australian Dairy Farms Group ASX’s only vertically integrated dairy company For personal use only Australian Dairy Farm Group (ASX: AHF) aims within 3 years to be a major fully vertically integrated dairy production, processing, retailing and exporting company following its acquisition of Camperdown
Slide 3: Disclaimer
Disclaimer For personal use only Commercial in Confidence This Presentation contains general information only and is, or is based upon, information which has been released to ASX. This document is not an invitation, offer or recommendation (express or implied) to apply for or purchase or take any ot
Slide 4: Overview of Australian Dairy Farms
Overview of Australian Dairy Farms For personal use only Australian Dairy Farms Group (AHF) • Since listing in October 2014, AHF has owned and operated dairy farms in South West Victoria currently holding six farms and approximately 3,00 dairy livestock, together with plant and equipment and water l
Slide 5: Key Attributes of CDC
Key Attributes of CDC For personal use only Location • Located within 30 minutes of the Group’s primary Brucknell farms Processing Capability • Capable of processing up to 36m litres pa – current utilisation of 50% provides capacity for growth Modern Computerised Plant • Commissioned in 2009 and cur
Slide 6: Investor Proposition
Investor Proposition For personal use only Reduced Risk and Higher Margins • Being ASX’s only fully integrated dairy company lowers the risk profile of the business by reducing commodity price risk while also allowing AHF to capture margin right across the value chain from farm to shelf. Brand Prove
Slide 7: Investor Proposition
Investor Proposition For personal use only Where we could take this Vision / Prospects • Focus new farm acquisitions on transition to production of high margin organic milk for the increased / Opportunities processing and production of the undersupplied organic milk/cheese/yoghurt. • Continue to gro
Slide 8: Where we could take this opportunity
Where we could take this opportunity For personal use only Focus on Organic Farms • Focus new farm acquisitions on transition to production of high margin organic milk for the increased processing and production of the undersupplied organic milk/cheese/yoghurt. Partnerships and joint ventures • Part
Slide 9: Location – Camperdown Dairy Company & AHF farms
Location – Camperdown Dairy Company & AHF farms For personal use only Camperdown Dairy Heywood Brucknell 1,2,3 & 4 Company (CDC) CDC is approximately 30 minutes drive from AHF’s existing Brucknell farm hub. All farms are within a transportable milk tanker distance. Camperdown is a picturesque town w
Slide 10: Corporate Structure
Corporate Structure For personal use only AUSTRALIAN DAIRY FARMS GROUP ASX Listed Stapled Security as AHF AUSTRALIAN DAIRY FARMS TRUST AUSTRALIAN DAIRY FARMS LIMITED Unit Share SHARES AND UNITS OWNED IN EQUAL PROPORTIONS BY COMPANY SHAREHOLDERS AND TRUST UNITHOLDERS AS STAPLED SECURITIES WHICH ARE L
Slide 11: Management Structure
Management Structure For personal use only AUSTRALIAN DAIRY FARMS GROUP (ASX LISTED as AHF) AUSTRALIAN DAIRY FARMS TRUST AUSTRALIAN DAIRY FARMS LIMITED1 (ADFT) (ADFL) Michael Hackett Adrian Rowley Keith Jackson Chairman Director Director (Executive Duties) (Executive Duties) (Non-Executive) Trustees
Slide 12: Corporate Profile and Statistics
Corporate Profile and Statistics For personal use only Corporate Statistics - 15 April 20161 ASX Code AHF Security price (15 April 2016 at Completion) $0.30 12 month security price range $0.125 - 0.59 Stapled Securities on issue (3 February 2016) 181,005,8542 Number of Security-holders 4,855 Convert
Slide 13: Why Camperdown Dairy Company (CDC)?
Why Camperdow n Dairy Company (CDC)? For personal use only Attractive market with Victoria is Australia’s largest dairy state with a rich Continuing solid growth in market demand is Dairy Australia’s Export Market strong growth fundamentals heritage of producing some of the best quality and projecte
Slide 14: CDC has a growing blue chip customer base
CDC has a grow ing blue chip customer base For personal use only Aussie Farmers Direct (“AFD”) represents 44.6% of total sales from 100% two years ago. As the composition of the customer base continues to evolve, the opportunity to grow sales w i th these customers becomes increasingly attractive. C
Slide 15: Growth opportunities
Grow th opportunities For personal use only Continue to grow China and Asian export business • CDC is one of a few players exporting to China with rapid clearance accreditation for fresh milk. The Business is in discussions with a number of potential customers to grow export sales in Asia. Expand pr
Slide 16: Growth Opportunities - Camperdown Dairy brand
Growth Opportunities - “Camperdown Dairy” brand For personal use only • CDC has developed and commenced distribution of “Camperdown Dairy” branded dairy and yoghurt products through both independent and major retailers. • Camperdown Dairy branded products include milk, yoghurt, butter and cream. • A
Slide 17: Growth Opportunities – Domestic Markets
Growth Opportunities – Domestic Markets For personal use only • Woolworths developed the Farmers’ Own brand as an end-to-end link between the farmer and the customer. • As an existing supplier of contract manufacturing solutions to Woolworths, CDC is well placed to broaden and grow the volume and it
Slide 18: Growth Opportunities - Asian export
Growth Opportunities - Asian export For personal use only • The China and Asian export strategy is a key focus of management and is expected to be a key driver of future growth. • The initial focus is on the export of fresh milk and yoghurt via importers and distributors, and then moving to a direct
Slide 19: China exports and certification
China exports and certification For personal use only • CDC is one of only a few dairy companies in Australia with China Inspection Quarantine Certification (CIQ) for the rapid customs clearance of fresh milk and yoghurt into China. • Certification is a material barrier to entry for other producers.
Slide 20: CDC's continued expansion into Asia is well supported by strong growth fundamentals
CDC’s continued expansion into Asia is w ell supported by strong grow th fundamentals For personal use only A number of trends underpin grow i ng demand in the Asian market for Australian consumer dairy products Health, w ellbeing, and food safety Reflecting people’s growing health aw areness (e.g.
Slide 21: There is a small number of boutique consumer dairy players of scale in Victoria
There is a small number of boutique consumer dairy players of scale in Victoria CDC is the only boutique player w i th capabilities across milk, yoghurt, butter and cream For personal use only Company Description Milk Yoghurt Butter Cream Established in 2010 Production facility in Camperdown, We
Slide 22: For further information
For further information For personal use only For additional company information or media matters please contact: James Moses Adrian Rowley Managing Director Director Mandate Corporate Australian Dairy Farms Limited Bus: +61 2 8211 0612 Bus: +61 3 9629-9900 Mob: +61 420 991 574 Mob: +61 4 4880-3768
Australian Dairy Farms Group — Investor Presentation (April 2016) on 6ix