Bega Cheese Limited · ASX:BGA
Bega Cheese — Shareholder Meeting (October 2014)
37 slides from Bega Cheese's shareholder meeting presentation, Oct 28, 2014
Slide 1: Bega Cheese Limited Annual General Meeting
For personal use only Bega Cheese Limited Annual General Meeting Barry Irvin – Executive Chairman Aidan Coleman – Chief Executive Officer
Slide 2: Agenda
AGENDA For personal use only • 2014 Annual Report • Executive Chairman’s Report • Chief Executive Officer’s Report • Questions • Approval of Remuneration Report • Election of Directors BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 1
Slide 3: Welcome
WELCOME For personal use only • Shareholders • Suppliers • PricewaterhouseCoopers • Addisons Lawyers • Kidder Williams • Bega Cheese Staff • Apologies BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 2
Slide 4: 2014 Annual Report: Executive Chairman's Report
For personal use only 2014 ANNUAL REPORT Executive Chairman’s Report Barry Irvin AM– Executive Chairman BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 3
Slide 5: A Year of Achievement
A YEAR OF ACHIEVEMENT For personal use only Record profit Record normalised profit Significant increase in share price Significant increase in milk price Investment in infant formula and nutritional capacity Very strong balance sheet BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 |
Slide 6: FY2014 Results Highlights
FY2014 RESULTS HIGHLIGHTS For personal use only Revenue increase to $1,069.4m EBITDA increase to $122.5m PBT increase to $93.6m EPS increase to 43.44 cps No net debt ($8.0m net cash) Balance sheet significantly strengthened by WCB outcome BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY20
Slide 7: FY2014 Results Highlights - Normalised
FY2014 RESULTS HIGHLIGHTS - *NORMALISED For personal use only Revenue increase to $1,069.4m EBITDA increase to $70.1m PBT increase to $42.1m EPS increase to 19.6 cps Total dividend 8.5 cps H2 dividend 4.5 cps (record date 1 September, payment date 15 September) * Normalised for impact of
Slide 8: Warrnambool Cheese & Butter (WCB) Investment
WARRNAMBOOL CHEESE & BUTTER (WCB) INVESTMENT For personal use only • Bid launched September 2013 • Initial bid 1.2 Bega shares and $2 cash • Highly competitive bid • Highlighted the value, interest and position in the Australian dairy industry • Bega Cheese remained disciplined throughout • Conclude
Slide 9: Milk Sustainability and Growth Program
MILK SUSTAINABILITY AND GROWTH PROGRAM For personal use only Strategic investment in milk supply Responding to customer requirements both now and in the future Sustainability includes resource management and farm practice (BEMS) Growth programs with goal of growing supply over the next 3 yea
Slide 10: High Quality Value Added Product Range
HIGH QUALITY VALUE ADDED PRODUCT RANGE For personal use only • Consumer packaged goods • Cheddar • Mozzarella • Processed cheese • Dairy Ingredients • Cream cheese • Milk powders • Nutritionals • Infant formula and growing up milk powders • Bio-nutrients BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING
Slide 11: Investing in Infrastructure
INVESTING IN INFRASTRUCTURE Capital expenditure $28 For personal use only • Bega Bega million Derrimut • Infant nutritional blending and canning at Derrimut (16,000t) • Increased lactoferrin expansion at Tatura • Increased cheddar cheese Bega Coburg Bega Strathmerton capacity at Coburg (18,000t) Tat
Slide 12: Customer Relationships
CUSTOMER RELATIONSHIPS For personal use only BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 11
Slide 13: Balance Sheet Extract
BALANCE SHEET EXTRACT FY2014 FY2013* For personal use only $m $m Cash & cash equivalent 28.6 22.6 Trade and other receivables 106.7 103.5 Inventories 184.2 163.0 Investments - 39.0 Property, plant & equipment 213.6 209.1 Total Assets 548.6 549.2 Trade and other payables 164.2 142.7 Borrowings 20.6 1
Slide 14: Strategic Priorities
STRATEGIC PRIORITIES For personal use only Focus on growth and efficiencies in key platforms Grow infant formula and child nutritional platform Extracting more value from existing milk components Sustainability and growth of milk supply Continue to investigate value creating rationalisatio
Slide 15: Strategic Priorities
STRATEGIC PRIORITIES For personal use only Bio-nutrient platform Develop new science based innovation platform Dairy and non-dairy micro nutrients Leverage off existing knowledge and capabilities Reviewing global knowledge and capacities BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014
Slide 16: Outlook
OUTLOOK For personal use only • Impact of falling commodity prices and Russian sanctions • Good base for Asian expansion using new capacity • High value whey protein project in final development stages (approximate cost $30m) • Very strong balance sheet to support expansion • *Normalised FY15 revenu
Slide 17: For personal use only
For personal use only BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 16
Slide 18: 2014 Annual Report: Chief Executive's Report
For personal use only 2014 ANNUAL REPORT Chief Executive’s Report Aidan Coleman – Chief Executive Officer BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 17
Slide 19: Normalised Business Performance
NORMALISED BUSINESS PERFORMANCE FY2014* FY2013** For personal use only $m $m Sales Revenue 1,069.4 1,004.4 EBITDA 70.1 65.7 EBIT 47.2 44.0 PBT 42.1 35.9 NPAT 29.8 25.8 • Good revenue growth in all areas, particularly nutritionals (23%) and core dairy ingredients (12%) • Plant efficiencies driving EB
Slide 20: Derrimut Facility
DERRIMUT FACILITY For personal use only • Commenced production in April 2014 • Infant formula blending and canning capability • Capacity 16,000 tonnes BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 19
Slide 21: Product Range
PRODUCT RANGE For personal use only BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 20
Slide 22: Bega Brand
BEGA BRAND For personal use only BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 21
Slide 23: Production – Strong Growth in Nutritionals
PRODUCTION – STRONG GROWTH IN NUTRITIONALS For personal use only 250,000 200,000 150,000 100,000 50,000 0 FY2013 FY2014 Core Dairy Ingredients Consumer packaged Nutritional • Total production 208,120 tonnes in line with previous year • Nutritional volumes up 23% BEGA CHEESE LIMITED | ANNUAL GENERAL
Slide 24: Safety
SAFETY 30 12 For personal use only 25 10 Severity Rate LTIFR 20 8 15 6 10 4 LTIFR 5 2 Severity Rate 0 0 2011-12 2012-13 2013-14 BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 23
Slide 25: Commodity Prices
COMMODITY PRICES For personal use only BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 24
Slide 26: Strategic Focus Areas
STRATEGIC FOCUS AREAS For personal use only BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 25
Slide 27: 2014 Annual Report
For personal use only 2014 ANNUAL REPORT Barry Irvin AM – Executive Chairman BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 26
Slide 28: Questions
QUESTIONS For personal use only BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 27
Slide 29: Formalities and Voting
For personal use only 2014 ANNUAL REPORT Formalities and Voting Barry Irvin AM – Executive Chairman BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 28
Slide 30: Remuneration Report
REMUNERATION REPORT For personal use only • Pages 20 – 30 of Annual Report • Board, CEO and other key management personnel • Market data and external advisors Resolution • Adopt remuneration report for the year ended 30 June 2014 BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 29
Slide 31: Remuneration Report
REMUNERATION REPORT For personal use only • Proxies • Total votes – 51,345,126 (33.65%) • For – 48,300,806 (94.07%) • Open – 2,769,308 (5.39%) • Against – 275,012 (0.54%) BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 30
Slide 32: Election of Directors
ELECTION OF DIRECTORS For personal use only • Richard Parbery • Peter Margin • Joy Linton BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 31
Slide 33: Election of Directors: Richard Parbery
ELECTION OF DIRECTORS For personal use only Richard Parbery • Total Votes – 48,957,036 (32.08%) • For – 36,123,482 (73.79%) • Open – 2,310,575 (4.72%) • Against – 10,552,979 (21.49%) BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 32
Slide 34: Election of Directors: Peter Margin
ELECTION OF DIRECTORS For personal use only Peter Margin • Total Votes – 51,397,937 (33.68%) • For – 46,401,670 (90.28%) • Open – 2,777,926 (5.4%) • Against – 2,218,341 (4.32%) BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 33
Slide 35: Election of Directors: Joy Linton
ELECTION OF DIRECTORS For personal use only Joy Linton • Total Votes – 51,405,187 (33.69%) • For – 48,488,041 (94.33%) • Open – 2,777,926 (5.4%) • Against – 139,220 (0.27%) BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 34
Slide 36: For personal use only
For personal use only BEGA CHEESE LIMITED | ANNUAL GENERAL MEETING FY2014 | PAGE 35
Slide 37: Disclaimer
DISCLAIMER For personal use only Bega Cheese Limited advises that these presentation slides contain forward looking statements which may be subject to significant uncertainties outside the control of Bega Cheese and its related entities. No representation is made as to the accuracy or reliability of