Synlait Milk Ltd. · NZX:SML
Synlait Milk — Select Equities Conference 2019
19 slides from Synlait Milk's conference presentation, Nov 1, 2019
Slide 1: Synlait Milk Limited 2019 – Select Equities Conference
SYNLAIT MILK LIMITED 2019 DELIVER. For personal use only INVEST. CLARIFY. SELECT EQUITIES CONFERENCE FRIDAY 1 NOVEMBER
Slide 2: Strategic Update
For personal use only UPDATE STRATEGIC S Y N L A I T M ILK L I M I T E D 2 0 1 9 | PG 1
Slide 3: Our year in review
| PG 2 S Y N L A I T M ILK L I M I T E D 2 0 1 9 DELIVER. INVEST. CLARIFY For personal use only Our year in review Delivering results Investing for the future Clarifying our direction • Revenue exceed $1 billion for the first time, • $18.9 million expansion to lactoferrin facility • Launched our new
Slide 4: What makes us different
| PG 3 S Y N L A I T M ILK L I M I T E D 2 0 1 9 WHAT MAKES US DIFFERENT For personal use only Our unique capabilities underpin our sustainable competitive advantage Established Building Pioneered an ability to Developed an integrated Navigated complex Built in quality testing Relentless focus on Cr
Slide 5: Our Strategy
For personal use only OUR STRATEGY S Y N L A I T M ILK L I M I T E D 2 0 1 9 | PG 4
Slide 6: Delivering against our growth strategy
| PG 5 S Y N L A I T M ILK L I M I T E D 2 0 1 9 DELIVERING AGAINST OUR GROWTH STRATEGY For personal use only STRATEGY PROGRESSED DELIVERY ONTRACK STRATEGY DEVELOPING • Advanced liquid dairy packaging • 21% growth in consumer • Natural extension facility completed, servicing packaged infant formula
Slide 7: Delivering against our enabling strategy
| PG 6 S Y N L A I T M ILK L I M I T E D 2 0 1 9 DELIVERING AGAINST OUR ENABLING STRATEGY For personal use only • Published Greenhouse Gas • Injury rate reduced 28% • Built three world class facilities (GHG) inventory • Launched programme to live • IWS generating impressive • Workplan towards 2028 c
Slide 8: Our Financial Results
For personal use only OUR RESULTS FINANCIAL S Y N L A I T M ILK L I M I T E D 2 0 1 9 | PG 7
Slide 9: Results at a glance
| PG 8 S Y N L A I T M ILK L I M I T E D 2 0 1 9 RESULTS AT A GLANCE For personal use only Net profit after tax increased 10.2% to $82.2 million in FY19 from $74.6 million $ millions Net profit after tax in FY18, with momentum in the second half of FY19 to be carried into FY20 90.0 82.2 80.0 74.6 •
Slide 10: Sales volume and inventory
| PG 9 S Y N L A I T M ILK L I M I T E D 2 0 1 9 SALES VOLUME AND INVENTORY For personal use only Exceeded $1 billion in revenue for the first time, with Sales volumes (MT) 149,709 consumer packaged infant formula sales of 42,907 MT in the 160,000 141,382 140,000 128,622 middle of the guidance range
Slide 11: Operating cash flow
| PG 10 S Y N L A I T M ILK L I M I T E D 2 0 1 9 OPERATING CASH FLOW For personal use only Strong cashflow generation with operating $ millions Operating cashflow cash flows increasing by $38.3 million to 160.0 $136.7 million from $98.4 million last year 140.0 136.7 120.0 115.2 104.4 98.4 • Cashflo
Slide 12: Net debt
| PG 11 S Y N L A I T M ILK L I M I T E D 2 0 1 9 NET DEBT For personal use only Net debt increased by $218.7 million to $333.6 $ millions Net debt Leverage million at year end from $114.9 million last year 400 4.0x 350 333.6 3.5x Significant investment in major growth projects and 300 3.0x operatio
Slide 13: Our China Business
For personal use only BUSINESS OUR CHINA S Y N L A I T M ILK L I M I T E D 2 0 1 9 | PG 12
Slide 14: Infant nutrition – current state
| PG 13 INFANT NUTRITION – CURRENT STATE S Y N L A I T M ILK L I M I T E D 2 0 1 9 For personal use only FY19 consumer packaged infant formula volumes of 42,907 MT up 21% on FY18 and in line with guidance range of 41,000 - 45,000 MT - Continued commitment to support strong partnership with The a2 Mi
Slide 15: Our China business overview
| PG 14 OUR CHINA BUSINESS S Y N L A I T M ILK L I M I T E D 2 0 1 9 For personal use only OVERVIEW • Synlait sells products throughout the world, however China remains our most important market. • We have built a very strong business focused on infant formula, primarily, into this market. • Our str
Slide 16: Our China business future opportunities
| PG 15 OUR CHINA BUSINESS S Y N L A I T M ILK L I M I T E D 2 0 1 9 For personal use only FUTURE OPPORTUNITIES • Synlait is very well placed to take advantage of the “Healthy China 2030” policy guidelines recently announced. • Our announced strategic direction in not only infant nutrition, but also
Slide 17: China market environment
| PG 16 OUR CHINA BUSINESS S Y N L A I T M ILK L I M I T E D 2 0 1 9 For personal use only CHINA MARKET ENVIRONMENT • The factory and brand approval process while demanding, is well understood by Synlait and we work well with the regulators within their guidelines. • Further consolidation of brands
Slide 18: Disclaimer
| PG 17 DISCLAIMER S Y N L A I T M ILK L I M I T E D 2 0 1 9 For personal use only • This presentation is intended to constitute a summary of assumptions and should not be relied upon as an indication or negligence) for any direct or indirect loss or damage which certain information about Synlait Mi
Slide 19: Investors and media contacts
For personal use only INVESTORS Hannah Lynch, Corporate Affairs Manager +64 21 252 8990 Hannah.Lynch@Synlait.com MEDIA Linda Chalmers, Senior Communications Advisor +64 21 951 347 Linda.Chalmers@synlait.com