Cobram Estate Olives Ltd. · ASX:CBO
Cobram Estate Olives — Shareholder Meeting (October 2021)
65 slides from Cobram Estate Olives's shareholder meeting presentation, Oct 29, 2021
Slide 1: Investor Presentation
Investor Presentation Cobram Estate Olives Limited ACN 115 131 667 Positioned for sustainable growth June 2021 Annual General Meeting 29 October 2021 Private Private & Confidential 1 & Confidential
Slide 2: Disclaimer
Disclaimer The material in this presentation is general background information about Cobram Estate Olives Limited (CBO) and is current at the date of the presentation. The information in the presentation is provided for information purposes only, is in summary form and does not purport to be complet
Slide 3: Agenda
Agenda 1. Chair’s Address 2. Financial Year 2021 Results and Commercial Update 3. Business Operations Highlights and Update 4. Growth Strategy 5. Formal business 6. Questions 7. Close Cobram Estate Olives Limited | June 2021 Private & Confidential 3
Slide 4: Voting Online
Voting Online Lodging your votes Click “Get a Voting Card” (top and bottom of platform) Enter your SRN/HIN or Proxy Number and Postcode Click “Submit Details and Vote” Fill out your voting card for each item of business Click “Submit Vote” Cobram Estate Olives Limited | June 2021 Private & Confident
Slide 5: Asking Questions Online
Asking Questions Online Only Shareholders and Proxyholders are able to ask questions Click on “Ask a Question” Select “General Business” or a specific resolution Type in your question and click “Submit” Comments on resolutions can also be submitted through “Ask a Question” Cobram Estate Olives Limit
Slide 6: Cobram Estate Olives - From Tree to Table
Cobram Estate Olives - From Tree to Table Growing and marketing olive goodness in Australia and the USA Cobram Estate Olives Limited | June 2021 Private & Confidential 6
Slide 7: Company Overview
Company Overview Cobram Estate Olives is Australia’s largest vertically integrated olive grower, processor and marketer • Established in 1998, with operations in both Australia and the USA and export customers in 17 countries. • A market leader in the Australian extra virgin olive oil industry and a
Slide 8: Financial Year 2021 Results and Commercial Update
Financial Year 2021 Results and Commercial Update Cobram Estate Olives Limited | June 2021 Private & Confidential 8
Slide 9: Financial Highlights – FY2021
Financial Highlights – FY2021 Cobram Estate Olives Limited | June 2021 Private & Confidential 9 *Adjusted for water costs to long-term average and one-off ASX listing costs
Slide 10: Australian Olive Oil Division Performance
Australian Olive Oil Division Performance – should be assessed on two-year rolling average Two-Year Rolling Average EBITDA of $43.7 million driven by past investment and strong brand returns 20.0 80.0 Yield vs EBITDA vs two-year Average 18.0 70.0 Australian olive oil division performance EBITDA (Aus
Slide 11: Group Income Statement (Statutory)
Group Income Statement (Statutory) Increased statutory EBITDA largely driven by the larger Australian crop of 16.05 million litres (FY2020: 6.2 million litres) Divisional results The Australian Olive Oil division reported an EBITDA of $75.1m (FY2020 $2.9m loss), driven by: • Increase in the Australi
Slide 12: Group Cash Flow Statement
Group Cash Flow Statement Operating cash flow highlights the management of oil between a higher and lower yielding crop years Key points Strong operating cashflow reflective of the company managing its oil supply over two (2) financial years (24-months), to meet the consistent monthly customer deman
Slide 13: Group Balance Sheet
Group Balance Sheet Strong balance sheet, and significant increase in current assets Key points Significant increase in Current Assets, predominantly due to the oil produced from the 2021 Australian harvest • The company’s olive trees are carried at cost (within property, plant and equipment). • The
Slide 14: Strong growth in packaged olive oil sales despite lower oil supply
Strong growth in packaged olive oil sales despite lower oil supply Packaged good sales growth of 9.5% in FY2021 Global olive oil sales for Cobram Estate® and Red Island® Packaged goods showing continued strong growth branded products and Private Label products • Sales of packaged consumer goods incl
Slide 15: Continued Global Growth of Cobram Estate Branded Products
Continued Global Growth of Cobram Estate® Branded Products Cobram Estate® brand global sales reached $76.4 million in FY2021 Global olive oil sales for Cobram Estate® branded products (FY2002-FY2021) • Cobram Estate®, our flagship retail brand, accounted for 66% of the Company’s sales in FY2021. • T
Slide 16: Continued Strong Marketing Support For Our Brands
Continued Strong Marketing Support For Our Brands Focus on Harvest 2021 and ‘fresh’ education Harvest 2021 Harvest 2021 Media Campaign Launch Event The objective is to educate the Australian community Harvest was also celebrated with an immersive about the fact that extra virgin olive oil is harvest
Slide 17: Continued Strong Marketing Support For Our Brands
Continued Strong Marketing Support For Our Brands Guinness world record event and virtual tastings Virtual Tastings Guinness - The Plan Guinness - The Activation Guinness - The Partnerships Date July 6 Health Professional Event July 15 Consumer Event July 21 Consumer Event July 22 Consumer Event Aug
Slide 18: Financial Outlook and Trading Update
Financial Outlook and Trading Update Outlook is positive, underpinned by consumer demand for high quality extra virgin olive oil and stock availability from the 2021 Australian harvest • Sales outlook is positive, with sales tracking in line with our plan. We are expecting an increase in sales in fu
Slide 19: Dividend Announcement
Dividend Announcement Final dividend of 3.3 cents per share, payable on 8 December 2021 Final Dividend Details Important information for • Dividend Payment: $0.033 per share long-term shareholders: • 20% franked The DRP replaces the existing dividend reinvestment plan Dividend timeline Date which wa
Slide 20: Reminder to Shareholders
Reminder to Shareholders Communications Preference We encourage you to receive all of your communications via email. This communication method allows us to keep you informed without delay, is environmentally friendly, and reduces print and mail costs. To choose email delivery of all communications,
Slide 21: Business Operations Highlights
Business Operations Highlights FY2021 and Update Cobram Estate Olives Limited | June 2021 Private & Confidential 21 21
Slide 22: Cobram Estate Olives Limited | June 2021
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Slide 23: Cobram Estate Olives Limited | June 2021
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Slide 34: Australian Olive Harvest – Results Summary
Australian Olive Harvest – Results Summary Record 2021 Australian olive harvest and olive oil yield 2021 Australian olive harvest results - summary Total Yields vs Mature Groves (Hectares) • Recently completed the 2021 Australian olive harvest, producing 18,000 7000 16.05 million litres, a record ha
Slide 35: Our 2021 California Harvest Has Begun
Our 2021 California Harvest Has Begun Positive outlook for Harvest 2021 and third-party supply California Harvest 2021 • CBO commenced its 2021 USA olive harvest on 11th October. The 2021 harvest is forecasted to be the company’s largest to date. • CBO is expecting to crush around 17,000 tonnes of o
Slide 36: Water Pricing in Australia Returned to Below Historical Averages
Water Pricing in Australia Returned to Below Historical Averages In FY2021 we paid a weighted average price of $168/megalitre for water purchased Water procurement strategy Cobram Estate Olives annual Temporary Water purchases and average annual price • Cobram Estate Olives sources its water in Aust
Slide 37: Water Outlook in Australia
Water Outlook in Australia 2021/22 seasonal outlook is positive with high storage levels and allocations Southern Murray Darling Basin – current storage levels Key points Total and key storages • Water prices in the Southern Murray Darling Basin remain below historical levels. • Storage levels in th
Slide 38: Environmental Sustainability
Environmental Sustainability Environmental sustainability is central to everything we do • For over 20 years we’ve been working to improve our carbon capture rates. Through the implementation of key agricultural practices, our groves sequestrate nearly 10 times the global olive industry average of C
Slide 39: People and Health and Safety Leadership
People and Health and Safety Leadership Providing our people with a supportive and safe work environment and culture Health and Safety Leadership • Protecting the health and wellbeing of staff and the wider community is front of mind as we continue to follow directions from state and federal governm
Slide 40: Growth Strategy
Growth Strategy 40
Slide 41: Growth Strategy – Four Core Pillars of Future Growth
Growth Strategy – Four Core Pillars of Future Growth Clearly articulated and well-understood growth plan Increasing supply from our Australian olive groves through new plantings and efficiency gains 1. 39% of the company’s total Australian plantings are not fully mature and are not yet producing mat
Slide 42: Increasing Supply From Our Australian Olive Groves
1. Increasing Supply From Our Australian Olive Groves Through New Plantings and Efficiency Gains Boort grove redevelopment • In 2021 we completed the redevelopment of the Boort olive grove, with 331 hectares planted with 118,000 new trees in Autumn 2021. • Over the past six years the company has rep
Slide 43: Increasing Supply From Our Australian Olive Groves (cont'd)
1. Increasing Supply From Our Australian Olive Groves Through New Plantings and Efficiency Gains (cont’d) Current age profile of the company’s olive trees Embedded growth in olive oil production (Australian alongside average oil yield per year of age olive oil busines) 1,600 3,000 8,000 Average oliv
Slide 44: Growing Our Vertically Integrated Business in the USA
2. Growing Our Vertically Integrated Business in the USA Replicating our Australian business in the world’s biggest olive oil import market Why the USA? Where are we at with our USA expansion? • USA consumer demand for olive oil is growing however access to local product has been • Our strategy to r
Slide 45: Development of USA milling, bottling and laboratory operations
2. Growing Our Vertically Integrated Business in the USA (cont’d) Development of USA milling, bottling and laboratory operations Harter Avenue USA head office USA bottling Woodland California Operations • In July 2014 we purchased a 3.6- hectare industrial property in Woodland, California, which now
Slide 46: Development of new olive groves in the USA
2. Growing Our Vertically Integrated Business in the USA (cont’d) Development of new olive groves in the USA USA grove development Esparto South Ranch - grove development • In Spring 2021 we developed 110 hectares of new olive groves on the Esparto South ranch near Woodland, California, with 53,000
Slide 47: Cobram Estate and private label sales showing strong growth
2. Growing Our Vertically Integrated Business in the USA (cont’d) Cobram Estate® and private label sales showing strong growth Evolution of packaged olive oil sales by Cobram Estate Olives’ USA business Cobram Estate® brand - expanding USA store footprint 35.0 30.0 25.0 A$ million 20.0 15.0 10.0 5.0
Slide 48: Growing Branded Product Sales and Increasing the Net Price Per Litre
3. Growing Branded Product Sales and Increasing the Net Price Per Litre For Our Extra Virgin Olive Oil CBO is continuing to focus on premiumisation whilst growing sales of its brands and supporting key customers with Private Label olive oil Supermarket sales of Cobram Estate® in Australia and price
Slide 49: Growing Branded Product Sales (cont'd)
3. Growing Branded Product Sales and Increasing the Net Price Per Litre For Our Extra Virgin Olive Oil (cont’d) Cobram Estate® price per litre and market share supported by third-party recognition of superior quality 18 gold medals for Cobram Estate’s 2021 Australian extra virgin olive oils, includi
Slide 50: Value-Adding Our Olive By-Products
4. Value-Adding Our Olive By-Products Towards zero waste - capturing value from the by-products of olive oil production • The production of olive oil generates a substantial quantity of by- Waste zero example – fresh olive leaves products. These products include olive pit, olive pomace, olive leaves
Slide 51: Growing the portfolio of Wellgrove products
4. Value-Adding Our Olive By-Products (cont’d) Growing the portfolio of Wellgrove® health and wellness products in Australia and USA Wellgrove® product distribution Wellgrove® USA product range includes: Wellgrove® products are currently available in the following channels: • Super Immunity + Heart
Slide 52: Formal business
Formal business 52
Slide 53: Voting directions
Voting directions 2021 ANNUAL GENERAL MEETING Cobram Estate Olives Limited | June 2021 Private & Confidential 53
Slide 54: Item 1: Financial Statements and Reports
Item 1: Financial Statements and Reports To receive and consider the Financial Report and the related Directors’ Report and Auditor’s Report for the year ended 30 June 2021. Note: This item is for discussion only and is not a resolution. Cobram Estate Olives Limited | June 2021 Private & Confidentia
Slide 55: Item 2: Adoption of the Remuneration Report
Item 2: Adoption of the Remuneration Report To consider and, if thought fit, to pass the following resolution as a non-binding ordinary resolution: That the Remuneration Report of the Company for the year ended 30 June 2021 be adopted. Note: This resolution is advisory only and does not bind the Com
Slide 56: Item 3a: Election of Joanna McMillan
Item 3a: Election of Joanna McMillan To consider and, if thought fit, to pass the following resolution as an ordinary resolution: That Joanna McMillan, who was appointed as a Non-Executive Director on 21 May 2021, retires, and being eligible, offers herself for election as a Non-Executive Director o
Slide 57: Item 3b: Re-election of Rob McGavin
Item 3b: Re-election of Rob McGavin To consider and, if thought fit, to pass the following resolution as an ordinary resolution: That Rob McGavin, who retires, and being eligible, offers himself for re-election as a Non-Executive Director of the Company, is elected as a Director of the Company. Dire
Slide 58: Item 3c: Re-election of Jonathan West
Item 3c: Re-election of Jonathan West To consider and, if thought fit, to pass the following resolution as an ordinary resolution: That Jonathan West, who retires, and being eligible, offers himself for re-election as a Non-Executive Director of the Company, is elected as a Director of the Company.
Slide 59: Item 3d: Re-election of Sam Beaton
Item 3d: Re-election of Sam Beaton To consider and, if thought fit, to pass the following resolution as an ordinary resolution: That Sam Beaton, who retires, and being eligible, offers himself for re-election as an Executive Director of the Company, is elected as a Director of the Company. Direct /
Slide 60: Item 4: Increase in Non-Executive Directors' Fee Cap
Item 4: Increase in Non-Executive Directors’ Fee Cap To consider and, if thought fit, to pass the following resolution as an ordinary resolution: That, pursuant to and in accordance with clause 12.19 of the Constitution, Listing Rule 10.17 and for all other purposes, the maximum aggregate amount of
Slide 61: Item 5: General
Item 5: General To transact any business which may be lawfully brought forward. Cobram Estate Olives Limited | June 2021 Private & Confidential 61
Slide 62: Questions on the Resolutions
Questions on the Resolutions Questions on the Resolutions If you haven’t already voted, please cast your votes. Cobram Estate Olives Limited | June 2021 Private & Confidential 62
Slide 63: General Questions
General Questions Only Shareholders and Proxyholders are able to ask questions Click on “Ask a Question” Select “General Business” or a specific resolution Type in your question and click “Submit” Comments on resolutions can also be submitted through “Ask a Question” Cobram Estate Olives Limited | J
Slide 64: General Business and Closing Remarks
General Business and Closing Remarks 64
Slide 65: Thank-you!
Thank-you! Private & Confidential 65
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