ARC Funds Limited · ASX:ARC
ARC Funds — Shareholder Meeting (October 2019)
10 slides from ARC Funds's shareholder meeting presentation, Oct 30, 2019
Slide 1: Annual General Meeting 30 October 2019
For personal use only Annual General Meeting 30 October 2019 Presentation to Shareholders by Executive Chairman, James Jackson
Slide 2: 2019 Results Summary and Current Position
2019 Results Summary and Current Position For personal use only • Loss of $2.5m mainly due to mark to market fall in Namoi Share price • Cash operating costs of approximately $420,000 per annum • Holding 13.47 million Namoi Cotton ordinary Shares • Cash Levels are $220,000 • NTA is 38 cents per shar
Slide 3: Namoi Cotton Investment Update
Namoi Cotton Investment Update For personal use only • Second largest shareholder with 9.7% • Cultural transition from Co-operative to Company taking place • Return on Invested Capital focus, along with costs review • Full risk analysis of business and review of risk profile • New CEO started on Sep
Slide 4: The Drought and Impact
The Drought and Impact For personal use only • Worst in 120 years, in all valleys or regions that Namoi operates • Crop Forecast mid range of 150,000 bales for 2020, which is down from the 10 year average of 900,000 bales or is 16.6% of average • Water prices in Southern Valleys making cotton unecon
Slide 5: What growth opportunities has ARC pursued in the past year?
What growth opportunities has ARC pursued in the past year? For personal use only • St George Region Water and Land Repurposing acquisition, offer rejected by vendor. • Livestock Financing Business acquisition, we progressed to a term sheet and heads of agreement, pending banking approval which was
Slide 6: Funds expended on research and due diligence in past years
In the past 5 years we have expended funds on research, due diligence costs on various business growth opportunities, including : For personal use only • 2015 : S Kidman and Co, Initial Proposal, stand alone ARC • 2016 : S Kidman and Co, Binding proposal with 20% interest • 2017 : Griffith Almond De
Slide 7: Some reasons for lack of deal completion
Some reasons for lack of deal completion For personal use only • Acquisition purchase prices have not been compelling nor accretive to create value for ARC shareholders • Inability to secure funding, limited capital partners in the space, some conflict between listed and unlisted. • Regulatory appro
Slide 8: Strategic direction and update
Strategic direction and update For personal use only • Currently evaluating agri-business acquisition we believe could create real value for our shareholders, if progressed and completed. • If not completed, then the board will be considering all options for the business and structure on the basis t
Slide 9: People and Summary
People and Summary For personal use only • New Company Secretary appointed during the year, Tamara Barr • Re- election of Darren Anderson • Acknowledge my fellow directors for their contributions • Thanks to our advisory committee members for your input • Finally, thanks to all our shareholders for
Slide 10: Further Shareholder enquiries
For personal use only Further Shareholder enquiries, please contact: Mr James Jackson Executive Chairman T: 0402 435 762 E: james.jackson@ruralcapital.com.au 10