Arborgen Holdings Limited · NZX:ARB
Arborgen — H1 FY2021 Earnings Presentation
13 slides from Arborgen's earnings presentation, Nov 25, 2020
Slide 1: Interim Results Presentation
Interim Results Presentation Six months ended 30 September 2020 25 November 2020
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by ArborGen Holdings Limited (“ArborGen”), to provide a general overview of the performance of ArborGen for the six months ended 30 September 2020. It is not prepared for any other purpose and must not be provided to any person other than the intended r
Slide 3: Six-Month September 2020 Summary
SIX-MONTH SEPTEMBER 2020 SUMMARY 25 November 2020 | Page 1
Slide 4: Six-Month September 2020 Highlights
Six-Month September 2020 Highlights Revenue $11.9 million ↓ by $2.3 million, due to: Reduction in Government’s 1B trees programme Impact of Covid-19 on Brazil’s 1H sales (recovery expected in 2H) Timing of US sales (US sales are heavily weighted to the 2nd half) Operating earnings before abn
Slide 5: Financial Summary for the Six Months to 30 September 2020
Financial Summary for the Six Months to 30 September 2020 Consolidated Income Statement 6 Months 6 Months Sep 20 Sep 19 US$m US$m Revenue 11.9 14.2 Cost of sales (9.2) (11.2) Gross profit 2.7 3.0 Change in fair value of biological assets 6.8 6.5 Other income 0.3 - Administration expense* (7.8) (8.9)
Slide 6: Strategy Progress
STRATEGY PROGRESS 25 November 2020 | Page 4
Slide 7: Progressing Our Cash Flow and Earnings Growth Goals
Progressing Our Cash Flow and Earnings Growth Goals Our core strategy is to drive the customer adoption of higher value genetics – this conversion results in substantial productivity and yield gains for customers and material financial margin expansion. There are 5 platforms for delivery of $ margin
Slide 8: Progressing Our Cash Flow and Earnings Growth Goals (continued)
Progressing Our Cash Flow and Earnings Growth Goals (continued) 1. Expanding supply of our MCP seedlings in Substantial value created by our top MCP products * the United States • Increasing MCP bagging and pollination MCP - 2.0 • Maturation of MCP orchards increasing availability each year going fo
Slide 9: Progressing Our Cash Flow and Earnings Growth Goals (continued)
Progressing Our Cash Flow and Earnings Growth Goals (continued) 3. Continued growth across all regions in a capital light manner • USA • Nursery expansion (through leases) has increased production capacity by 60 million seedlings • Industrial customers understand the value in conversion to higher va
Slide 10: Progressing Our Cash Flow and Earnings Growth Goals (continued)
Progressing Our Cash Flow and Earnings Growth Goals (continued) 4. Operational cash flow initiatives • Acquisition of headquarters in South Carolina and leasing out surplus space has lowered annual property costs • Reductions in discretionary overhead expenditure and capex • Access to government fun
Slide 11: Outlook
OUTLOOK 25 November 2020 | Page 9
Slide 12: Outlook
Outlook Completion of this year’s cone harvesting activities now indicate1 – a material increase in US MCP seed production over last year’s levels … particularly in our constrained high-value, high-demand coastal region MCP availability 2 (millions - seedling equivalents) 2020 2021 2022 2023 202
Slide 13: Outlook (continued)
Outlook (continued) In August we said – “We expect US-GAAP underlying earnings* [which is the equivalent of US-GAAP EBITDA adjusted for abnormal items, and before NZ public company costs] for fiscal year ending March 2021, to be higher than the $9.3 million reported for the prior March 2020 fiscal y