Wingara Ag Ltd. · ASX:WNR
Wingara — H1 2020 Earnings Presentation
29 slides from Wingara's earnings presentation, Nov 20, 2019
Slide 1: 1H FY20 Investor Presentation
1H FY20 Investor Presentation November 2019 For personal use only
Slide 2: Wingara AG Limited - Overview
Wingara AG Limited - Overview Wingara AG Ltd (WNR.ASX) owns and manages mid-stream assets within the protein supply chain based on a ‘tolling For personal use only model’ concept capturing throughput from accredited export facilities. The company specialises in the processing and marketing of high-q
Slide 3: A History of Sustainable Growth
A History of Sustainable Growth For personal use only Feb 2015 Feb 2016 Aug - Oct 2016 May 2017 Sep 2017 Sept / Oct 2018 Jan 2019 Acquired JC ASX Listing Raised Entered into Epsom Phase 1 China export Tanloden assets additional $5m option throughput development of accreditation • RTO of Biron for ex
Slide 4: What We Have Achieved So Far
What We Have Achieved So Far For personal use only Revenue History Growth in Hay Processing Capacity 55 55 55 29.0 MT Tonnes (Thousand) 30 30 30 A$m 10.9 18 18 8.7 10 10 10 4.8 8 0.65 1.1 FY2017 FY2018 FY2019 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 Revenue EBITDA Production Capacity Storage
Slide 5: 1HFY20 Financial Results Summary
1HFY20 Financial Results Summary For personal use only Wingara continued to build its revenue base and financial strength 2H FY18 1H FY19 2H FY19 1H FY20 31 March 2018 30 Sept 2018 31 March 2019 30 Sept 2019 Revenue (million) $4.46 $14.72 $14.40 $15.01 EBITDA (million) $0.87 $2.76 $2.00 $1.33 NPAT (
Slide 6: Division Overview - JC Tanloden
8 For personal use only Division Overview - JC Tanloden Page 6
Slide 7: Overview – JC Tanloden
0 Overview – JC Tanloden For personal use only Established in 1985, JC Tanloden has the largest fodder production capacity on the east coast of Australia. We purchase, process and transport our high quality produce to our domestic and global customers. Revenue is generated via a tolling model where
Slide 8: 1HFY20 Results – JC Tanloden
1HFY20 Results – JC Tanloden For personal use only A strong result in light of a challenging conditions, processing volumes were down 40% (vs 1HFY19) driven by reduced supply of hay and capital constraints within the business. In spite of these challenges revenue was down 1% (vs 1HFY19) • Capital co
Slide 9: Existing Infrastructure and Capacity to Scale – JC Tanloden
0 Existing Infrastructure and Capacity to Scale – JC Tanloden For personal use only We have two key operational assets in Raywood and Epsom which currently have respective processing capacity of 75,000MT and 35,000MT and combined storage capacity 30,000MT. We have the ability to scale our processing
Slide 10: Division Overview – AustCo Polar
8 For personal use only Division Overview – AustCo Polar Page 10
Slide 11: Overview – Austco Polar Cold Storage
Overview – Austco Polar Cold Storage For personal use only Established in 1987, Austco Polar Cold Storage owns and operates a cold storage facility which specialises in temperature controlled facilities, blast freezing, storage and distribution for domestic and international clients. Services Provid
Slide 12: 1HFY20 Results – Austco Polar Cold Storage
1HFY20 Results – Austco Polar Cold Storage For personal use only Since the acquisition we have been focused on improving the product mix and operating efficiency of the business, we expect these improvements to be evident in the divisions results moving forward. Highlights for the half include: • In
Slide 13: Growth Strategy & Outlook
For personal use only Growth Strategy & Outlook Page 13
Slide 14: FY2020 Outlook
FY2020 Outlook For personal use only We see continued growth in fodder markets with demand from key export customers growing along with leveraging facility expansion at Austco in light of strong domestic demand. Division Strategic Focus Areas Commentary • Expansion of processing and storage capacity
Slide 15: Wingara’s Growth Strategy
Wingara’s Growth Strategy For personal use only Wingara is strongly positioned to capitalise from growing customer demand in the next 2–5 years. 01 • Combined throughput capacity of up to 250,000 MT p.a. across Bendigo, Raywood and Horsham once Horsham is built (Currently 110,000 MT) Expand JC • Sto
Slide 16: Creating a Sustainable Agriculture Produce Platform
Creating a Sustainable Agriculture Produce Platform For personal use only Wingara has developed its built a sustainable platform for processing and marketing agricultural products. For Primary 1 2 3 For Customers Producers Process raw Logistics to move Provide insights materials to products and serv
Slide 17: Value Creation via Strategic Acquisitions
Value Creation via Strategic Acquisitions For personal use only We apply the same strategy and process to acquisitions to drive long-term shareholder value accretion. Austco Polar Cold Storage JC Tanloden Buy • Raised $6.7m to acquire Austco for $18.5m in April 2018 paying • Acquired JC Tanloden inc
Slide 18: Additional Information
For personal use only Additional Information Page 18
Slide 19: Wingara Strategy & Vision
Wingara Strategy & Vision For personal use only Wingara is building out an integrated platform of mid-stream agricultural assets focussed on unlocking value in the global protein supply chain. • Primary producers are fundamental to our business, we build and maintain 1 Supplier Focus strong relation
Slide 20: Board of Directors and Management Team
Board of Directors and Management Team For personal use only Wingara’s directors bring with them a wealth of knowledge and experience from areas including corporate finance, funds management, business and financial risk management and agricultural asset investment Gavin Xing (Managing Director and C
Slide 21: Capital Structure Overview
Capital Structure Overview For personal use only Wingara AG was listed on the ASX through the reverse takeover of Biron Apparel Ltd, raising $4.8m to fund the expansion of the Company’s production facilities at Epsom, VIC. Wingara raised an additional $6.7m via a Placement in March 2018 to fund the
Slide 22: Our Market
Our Market For personal use only JC Tanloden and AustCo Polar form key parts of the Australian agriculture industry’s supply chain and export capabilities for protein and fodder products – both which have grown significantly over the past 5 years • Export markets for proteins & fodder: $13bn annuall
Slide 23: Wingara Ag Limited – Company Profile
Wingara Ag Limited – Company Profile For personal use only Wingara owns, develops and manages processing and logistics assets focusing on agriculture produce for export markets. We seek to control bottlenecks with high barriers to entry. We have two distinct business divisions in JC Tanloden & Austc
Slide 24: Raywood Facility
Raywood Facility For personal use only Start of the art storage and processing facility that will provide the foundations for Wingara’s next phase of high growth in Oaten hay and green product varieties. Page 24
Slide 25: AustCo Polar Facility
AustCo Polar Facility For personal use only Substantial blast freezing and cold storage facilities strategically located close to Port of Melbourne for easy access to export markets. Page 25
Slide 26: Financial Results
For personal use only Financial Results Page 26
Slide 27: Profit & Loss Statement
Profit & Loss Statement 1H 2020 1H 2019 Change FY19 Commentary For personal use only A$M A$M % A$M • Transformational year in FY2019, with a significant Revenue - Hay Sales 8.99 9.06 (1%) 16.76 acceleration in revenue, EBITDA and asset base with Revenue - Cold Storage 6.02 5.67 +6% 12.36 only part o
Slide 28: Balance Sheet
Balance Sheet 1H 2020 1H 2019 Change FY19 For personal use only A$M A$M % A$M Assets Cash & equivalents 2.69 4.45 (40%) 0.66 Trade & other receivables 1.49 1.03 +45% 1.46 Inventories 1.26 0.54 +133% 5.36 Deposits & other current assets 2.11 0.28 +654% 0.12 Total current assets 7.55 6.29 +20% 7.61 Pr
Slide 29: Cash Flow Statement
Cash Flow Statement For personal use only 1H 2020 1H 2019 Change FY19 A$M A$M % A$M Cash flows from operations Receipts from customers 14.97 14.47 3% 28.23 Payments to suppliers, employees (11.44) (10.56) 8% (26.26) Interest received 0.00 0.01 (100%) 0.02 Interest paid & finance costs (0.75) (0.69)