Tasfoods Limited · ASX:TFL
Tasfoods — H1 2016 Earnings Presentation
30 slides from Tasfoods's earnings presentation, Aug 30, 2016
Slide 1: TasFoods (ASX:TFL) August 2016
For personal use only TasFoods (ASX:TFL) August 2016 Refer to Appendix for important notice and disclaimer
Slide 2: TasFoods Limited
TasFoods Limited For personal use only TasFoods is an ASX listed entity with an experienced board and management team that is focused on acquiring and developing Tasmanian premium branded food businesses. Tasmania has proven to be a haven for the development of premium food businesses and brands tra
Slide 3: Timeline
Timeline For personal use only 1980’s Nichols Sep 2015 Nov- Feb Mar 2016 Jun 2016 Poultry TasFoods 2015 TasFoods TasFoods Established acquires $6m acquires completes Meander capital option to buy $25m capital Valley Dairy raise Nichols Poultry raise under prospectus 2000’s Sep 2015 Jun 2016 Meander
Slide 4: TasFoods: People and today's presenters
TasFoods: People and today’s presenters The Directors and Senior Executives have a broad range of experience in the For personal use only agribusiness and food sector JANE BENNETT ROB WOOLLEY MANAGING NON-EXECUTIVE DIRECTOR/CEO CHAIR • Jane has 20 years experience as a senior executive in vertically
Slide 5: TasFoods: People
TasFoods: People For personal use only TOM WOOLLEY DONNA WILSON DAVID BENNETT CHRIS SHERBON CHIEF OPERATING CHIEF FINANCIAL CHIEF SALES & MARKETING OFFICER OFFICER MARKETING OFFICER CONSULTANT Tom is an experienced manager • Chris is the owner and director of • • Donna is a qualified finance Synthes
Slide 6: TasFoods Strategy
TasFoods Strategy Develop a portfolio of category leading premium branded food For personal use only products primarily sourced from Tasmania Identify and build a Capitalise on the natural portfolio of PREMIUM attributes of the BRANDED FOOD TASMANIA AGRICULTURAL PRODUCTS ENVIRONMENT Expand into Grow
Slide 7: Dairy
For personal use only DAIRY STRICTLY CONFIDENTIAL NOT FOR DISTRIBUTION
Slide 8: Dairy: Achievements since Meander Valley Dairy acquisition
Dairy Achievements since Meander Valley Dairy acquisition in October 2015 For personal use only Hired a HIGH QUALITY Sales of $0.94m in half year PROVEN TEAM of dairy showing growth of 129% on employees 2015 half year Expanded into Cost review has identified WOOLWORTHS national MARGIN OPPORTUNITIES
Slide 9: Products
Products For personal use only • Meander Valley Dairy is the existing dairy brand • Product range includes premium luxury creams in retail and food service packs; – Double Cream – Crème Fraiche – Clotted Cream • Cultured butter is made using traditional batch churn methods; – Salted and unsalted – B
Slide 10: Dairy Outlook
Dairy Outlook – 3 year short term For personal use only Where we are today • Small production facility manufacturing a range of luxury cream and butter products. • Cream sourced from third party processors (a by product of their operation) Where we sell • Branded cream products sold into Woolworths
Slide 11: Nichols Poultry
For personal use only NICHOLS POULTRY Acquired by TasFoods June 2016 STRICTLY CONFIDENTIAL NOT FOR DISTRIBUTION
Slide 12: Nichols Poultry
Nichols Poultry For personal use only Established brand with Platform for a product that has GROWTH PREMIUM QUALITIES COMPETITIVE ADVANTAGES Opportunities for expansion in • Premium quality product RETAIL MARKETS • Operates in low biosecurity risk environment • Room for expansion on Aspirational rev
Slide 13: Australian Chicken Market
Australian Chicken Market For personal use only MARKET • 2016-17 chicken meat production in Australia is forecast to be 1.20 million tonnes. Over the medium term this is forecast to increase by around 3% a year to 1.36 million tonnes in 2020-21 • There are two integrated national companies who suppl
Slide 14: Nichols Poultry: Where are we today
Nichols Poultry For personal use only Where are we today Sales • 50% of sales are through Coles supermarket (RSPCA Coles branded, Nichols branded and deli). • No sales through Woolworths and limited sales through largest independent grocer network in Tasmania • Sales are entirely to the Tasmanian ma
Slide 15: TasFoods Free Range Chicken Plan
TasFoods Free Range Chicken Plan For personal use only Nichols – Ethical Free Range PRODUCTION • Small mobile sheds to house 500 -1,000 chickens each STANDARDS (in • Pop holes open 24 hours per day unless extreme weather is forecast development) • All natural lighting and ventilation • No antibiotic
Slide 16: Advantages for Nichols Poultry Location
Advantages for Nichols Poultry Location For personal use only COST SAVING EXPORT FROM VACCINATION FREEDOM PRODUCTION CAPACITY REQUIREMENTS FROM DISEASE COST ADVANTAGE Nichols Poultry is free from Nichols Poultry is free from There has never been an The disease free advantages Infectious Bursal Disea
Slide 17: Shima Wasabi
For personal use only SHIMA WASABI Acquired by TasFoods June 2016 STRICTLY CONFIDENTIAL NOT FOR DISTRIBUTION
Slide 18: Shima Wasabi
Shima Wasabi For personal use only – Shima Wasabi is a food producing company located in northwest Tasmania. – Shima grows and markets pure Japanese wasabi (Wasabia japonica) and currently supplies over 60 of Australia’s leading restaurants with premium grade fresh wasabi products. – Australia’s onl
Slide 19: Future Developments
For personal use only FUTURE DEVELOPMENTS To be developed by TasFoods STRICTLY CONFIDENTIAL NOT FOR DISTRIBUTION
Slide 20: New Product Development
New Product Development For personal use only PRODUCT DEVELOPMENT CURRENT SHORT TERM MEDIUM TERM Cream Flavoured Cultured Yoghurt Cultured Butter Butter Fresh milk Ice cream Soft cheese Dairy - Cow Butter Milk Sour creams Hard Cheese Soft Cheese Fresh milk Hard Cheese Dairy - Goat Yoghurt Fresh RSPC
Slide 21: Appendix 1: Financial Information
For personal use only APPENDIX 1: Financial Information STRICTLY CONFIDENTIAL NOT FOR DISTRIBUTION
Slide 22: TasFoods: Corporate Overview
TasFoods: Corporate Overview For personal use only MARKET METRICS 30 JUNE 2016 BOARD OF DIRECTORS AND KEY EXECUTIVES Value Rob Woolley Non Executive Chair Last traded price (A$) $0.28 Jane Bennett Managing Director Shares on issue (m) 164m Tony Robinson Non Executive Director Market capitalisation (
Slide 23: Income Statement 1H2016
Income Statement 1H2016 For personal use only (A$m) 1H2016 Revenue 2.00 EBIT (1.57) Profit (Loss) before income tax expense (1.55) Net Profit (Loss) after income tax expense (1.55) Net Assets 35.87 Operating cash flow (0.96) • Revenue includes 15 days of Nichols Poultry ($1.054m) • Revenue for dairy
Slide 24: Balance Sheet 1H2016
Balance Sheet 1H2016 (A$m) 1H2016 For personal use only Cash 16.06 Borrowings 0.48 Net Assets 35.87 Net tangible assets 27.12 Net assets per share (cents) 21.86 Net tangible assets per share (cents) 16.53 • Cash represents 40% of the total assets of the group • Net assets have increased from $5.55m
Slide 25: Cash Flow 1H2016
Cash Flow 1H2016 For personal use only (A$m) 1H2016 Operating cash flow (0.96) Investing cash flow (10.97) Financing cash flow 25.20 • In June 2016 the company acquired Nichols Poultry for a cash consideration of $7.374m and Shima Wasabi for a cash consideration of $2.468m) • During the half year th
Slide 26: Appendix 2: Risks
For personal use only APPENDIX 2: Risks STRICTLY CONFIDENTIAL NOT FOR DISTRIBUTION
Slide 27: Risks
Risks RELIANCE ON The Nichols Poultry business relies on third party producers to grow the chickens it processes and sells. The termination of such CONTRACT GROWERS arrangements could result in significant adverse financial consequences, as it may take some time to replace the lost supplies of For p
Slide 28: Risks
Risks FEED COST RISK The availability and price of raw ingredients (such as corn, wheat, soy bean meal and sorghum) that it uses at its feed mills to make the feed that is used by its breeder and grower operations for feed production is dependent on crop production, which is affected by For personal
Slide 29: Appendix 4: Important Notice & Disclaimer
For personal use only APPENDIX 4: Important Notice & Disclaimer STRICTLY CONFIDENTIAL NOT FOR DISTRIBUTION
Slide 30: Important Notice & Disclaimer
Important Notice & Disclaimer For personal use only The following disclaimer applies to this presentation and any information provided in this presentation (Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any Information.