Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — FY2009 Earnings Presentation
16 slides from Australian Agricultural's earnings presentation, Feb 10, 2010
Slide 1: Results Presentation for Full Year ended 31 December 2009
For personal use only Australian Agricultural Company Limited Results Presentation for Full Year ended 31 December 2009 1 David Farley – Managing Director & CEO February 2010
Slide 2: Result in Summary
Result in Summary For personal use only – Key drivers of AAco’s earnings in 2009 were negative – combining to deliver unfavorable operating conditions – Overall after tax loss of ‐$53.7 million (‐$38.7m loss pcp) – Operating cash outflow of ‐$56.4 million (+$10.7m inflow pcp) – Property valuation de
Slide 3: Principal Operations: Beef Cattle Production & Live and Boxed Meat Sale
Principal Operations: Beef Cattle Production & Live and Boxed Meat Sale For personal use only PRODUCTION 1. Cattle breeding 507,676 cattle 2. Cattle purchases 6,724,938 hectares 3. Weight Gain across the herd (grass & feedlot) 32,500 hd feedlot capacity SALES LIVE BOXED Marketing Processing (outsour
Slide 4: AAco Property Map
For personal use only AAco Property Map 4
Slide 5: AAco Boxed Beef Brands
AAco Boxed Beef Brands For personal use only 5
Slide 6: Production & Market Impacts
Production & Market Impacts For personal use only Production Impacts – Drought and flood; – Cattle losses; – Restocking costs; and – Reduced weight gain. Market Impacts – Foreign exchange; – Cattle prices; – Mark to market revaluations 6
Slide 7: Profit and Loss - Analysis
Profit and Loss ‐ Analysis For personal use only Consolidated Summary - Profit and Loss Year ended Year ended 31/12/2009 31/12/2008 $m $m Revenue 157.5 236.9 Operating expenses (205.2) (219.8) EBITDA (47.6) 17.1 EBIT (61.3) 5.5 OPBT (76.8) (53.4) Income tax benefit/(expense) 23.1 14.7 NPAT (53.7) (3
Slide 8: Revenue
Revenue For personal use only Trading Conditions 2009 2008 ($m) ($m) Live Cattle Gross Sales 168.7 184.5 Purchases (41.4) (30.5) Sell/Purchase/freight costs (13.1) (24.1) Inventory movements * (67.3) (5.1) Cattle Revenue 46.9 124.8 Wholesale Beef Gross Sales 104.4 99.3 Other Crops 4.2 8.6 Miscellane
Slide 9: Composition of Revenue change
Composition of Revenue change For personal use only ('$m) 250 200 150 100 50 0 Revenue 2008 ($m) Reduction in Natural Net decrease in market Increased deaths due Increased sales margin Other Revenue 2009 ($m) increase value of livestock to drought/flood 9
Slide 10: Composition of 2009 NPAT
Composition of 2009 NPAT For personal use only ('$m) 0 -20 -40 -60 -80 -100 -120 -140 NPAT 2008 Reduced cattle trading Reduced operating Mark to market interest Improvement in Finance Tax effect & other NPAT 2009 revenue YoY expenses YoY rate sw aps & Interest expense 10
Slide 11: Financials by Segment
Financials by Segment For personal use only Business segments Live Cattle Operations Wholesale Boxed Beef 2009 2008 2009 2008 Totals Totals 2009 2008 $m $m $m $m $m $m 51.9 137.7 Reduced cattle prices, and 104.4 99.3 156.3 237.0 Revenue lower weight gains Profit from disposal of 1.3 (0.3) 0.0 0.0 1.
Slide 12: Balance Sheet
Balance Sheet For personal use only Balance Sheet Consolidated 31/12/2009 31/12/2008 $m $m Cash and liquid assets 18.3 31.6 Inventories 18.0 22.8 Biological assets - livestock 353.2 421.8 Property, plant and equipment 681.7 847.3 Other assets 10.8 18.9 Total Assets 1,082.1 1,342.3 Interest bearing l
Slide 13: Cash Flow
Cash Flow For personal use only Consolidated Cash Flow Statement Year ended Year ended 31/12/2009 31/12/2008 $m $m Net operating cash flows (56.4) 10.7 Proceeds from sale of property, plant and equipment 141.3 0.4 Proceeds from sale of livestock herds 39.1 0.0 Other (4.4) (9.6) Net investing cash fl
Slide 14: Market Dynamics – Live Cattle
Market Dynamics – Live Cattle For personal use only Live Export ‐ Cattle (# of head) Yr Australia AAco % share 2005 572,800 22,220 3.9% 2006 634,300 26,282 4.1% 2007 719,500 46,406 6.4% 2008 868,500 60,033 6.9% 2009 948,200 34,939 3.7% Source: MLA,ABS Australian Live Export Destinations ('000 head)
Slide 15: Market Dynamics – Boxed Beef
Market Dynamics – Boxed Beef For personal use only Red Meat Markets of AAco: GDP Growth AAco Beef sales by Destination ($AUD) - 2009 Consensus 2010 Singapore China: 9.40% China UAE 2%Thailand Egypt 2% 1% Indonesia: 5.55% 3% 1% Malaysia Japan Singapore: 5.50% 3% 26% Malaysia: 4.50% Indonesia 4% Hong
Slide 16: Sensitivity Analysis
Sensitivity Analysis For personal use only Sensitivity on EBITDA Revenue Driver +5% improvement +20% improvement $m $m Natural increase $1.2 $4.6 Kgs produced $4.6 $18.3 Mortalities $1.2 $4.8 Closing herd valn ($) $12.3 $49.2 Totals $19.2 $76.9 Sensitivity on EBITDA of a 5% or 20% im provem ent Sens
Australian Agricultural Company — FY2009 Earnings Presentation on 6ix