Australian Dairy Nutritionals Limited · ASX:AHF
Australian Dairy Nutritionals — Shareholder Meeting (August 2019)
17 slides from Australian Dairy Nutritionals's shareholder meeting presentation, Aug 13, 2019
Slide 1: Australian Dairy Nutritionals Group
Australian Dairy Nutritionals Group 13 August 2019 ASX Code: AHF GENERAL MEETING – 13 AUGUST 2019 Please find attached a copy of the C E O ’ s presentation which will b e given at today’s General Meeting commencing at 10.00am (Syd). Ends. AUSTRALIAN DAIRY NUTRITIONALS GROUP. AUSTRALIAN DAIRY NUTRITI
Slide 2: CEO Presentation - Extraordinary General Meeting
Australian Dairy Nutritionals Group Growing Local, Going Global CEO Presentation Peter Skene Extraordinary General Meeting 13 August 2019
Slide 3: Consistently delivering on Group Strategy
Consistently delivering on Group Strategy AHF is transitioning from a contracted packer to a vertically integrated manufacturer and producer of premium organic products and brands, with a large focus on organic infant formula Key achievements Key Achievements ✓ All farms in process of conversion to
Slide 4: Why are we Transforming?
Why are we Transforming? AHF is transitioning from a contracted packer to a vertically integrated manufacturer and producer of premium organic products and brands, with a large focus on organic infant formula Why move to Organic? Why vertical integration and own branded products? ✓ In Australia, 9 b
Slide 5: Barriers to Entry
Barriers to Entry ▪ A vertically integrated business model is difficult to replicate ▪ Converting a conventional farm to organic includes a 3 year transition ▪ Difficulty in securing a team with the requisite knowledge and experience 5 ▪ Security of supply with upstream owned farms ▪ Large asset foo
Slide 6: Organic Formula Market
Organic Formula Market 10 yrs of history showing increased growth Forecast to continue to grow significantly – rates – 15.6% CAGR1 15.4% CAGR2 Australia and New Zealand Global Organic Baby Formula Premium Organic Infant Formula Market Retail Sales Value 400 900 800 350 700 300 600 250 $US million $U
Slide 7: AHF at a Glance
AHF at a Glance Well positioned A vertically Focused on to capitalise on integrated developing higher the growing business model margin owned shortfall of guarantees ability brands and products organic milk to supply versus including organic Australian Dairy supply competitors infant formula Nutriti
Slide 8: Transformation to a high value producer
Transformation to a high value producer Non-Organic NOW TRANSFORMING END GAME Organic certified 5 farms producing and A vertically integrated portfolio processing milk mainly for third of high margin organic milk parties Organic brands accreditation Dairy Farms 5 Dairy Farms 2021 Brucknell 2 3m lt/y
Slide 9: Product Diversification
Product Diversification 2017 2018 Product Target gross product Margins FY2021 ▪ Milk ▪ Milk Formula 35% - 45% ▪ Butter ▪ Butter ▪ Yoghurt ▪ Yoghurt Butter 10% - 15% New Additions ▪ Kefir Yoghurt / Kefir 15% - 30% ▪ Premium Milk Range ▪ Paediatric Formula Bottled Milk 10% - 25% 2019 2020 & 21 Target
Slide 10: Formula Plan
Formula Plan STAGE 1 – INTRODUCTORY FORMULA PLANT STAGE 2 – LARGE FORMULA PLANT & CANNING CAPEX ~$5.0 m CAPEX ~$45.0m Inputs Milk plus IF ingredients Inputs Milk plus IF ingredients Capacity 2,000 Kg – 2,800 Kg/ day Capacity Dryer 12,000 – 20,000 Kg/ day Blending and tinning >10,000,000 + cans/ tine
Slide 11: Infant Formula Distribution Strategy
Infant Formula Distribution Strategy ▪ Negotiating an exclusive distribution deal with a major Australian retailer ▪ Exclusivity encourages retailer support with respect to: ✓ Access to a higher number of stores; ✓ Better shelf positioning; and ✓ Web / catalogue support ▪ Following a successful Stat
Slide 12: Our Dairy Farms
Our Dairy Farms Golden Triangle of the South West Victoria Dairy Region ▪ 5 dairy farms in South West Victoria producing Vertical Integration ~17m litres of milk pa AHF Farms – Transitioning to organic ▪ 4,184 livestock with 2,118 cows which produce AHF Processing facility AHF New processing facilit
Slide 13: Snapshot of our Dairy Farms
Snapshot of our Dairy Farms Carrying Size Avg Cows FY2016 FY2017 FY2018 Organic Organic Milk Value Hectares Milked Litres Litres Litres Conversion Produced Upon (twice daily per (non organic) (non organic) (non organic) Date Conversion year) Brucknell No. 1 $4.1m 275 374 3.3m 4.3m 4.3m 2021 ~3m Bruc
Slide 14: Placement
Placement Successful capital raising In June 2019 AHF successfully raised A$12 million (before costs) via a share placement to sophisticated investors Use of Funds ▪ Acquisition and relocation of the infant formula plant (including mixing plant, dryer and evaporator) - $1.5m ▪ New building for the i
Slide 15: Board and Management Team
Board and Management Team Michael Hackett Peter Skene Adrian Rowley Paul Morrell Chris Flahey Non-Executive Chairman CEO and Director Non-Executive Director Non-Executive Director Sales & Marketing Director ▪ Michael has been a director since ▪ Appointed CEO and Managing ▪ Adrian Rowley joined the b
Slide 16: Contact
Contact •For additional information or media enquiry matters please contact: •Peter Skene •Group CEO / Director •Australian Dairy Nutritionals Limited •Email:shareholders@adfl.com.au •Disclaimer – Forward Looking Statements •This announcement may include “forward looking statements” within the meani
Slide 17: Further Details
Further Details For additional company information or media enquiry matters please contact: Peter Skene Group CEO/ Director Australian Dairy Nutritionals Limited Email: peterskene@adfl.com.au Communications Policy As a policy, because of the heavy demands on limited management resources and to ensur
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