Inghams Group Ltd. · ASX:ING
Inghams — Shareholder Meeting (November 2024)
27 slides from Inghams's shareholder meeting presentation, Nov 14, 2024
Slide 1: ASX Release: Inghams Group 2024 Annual General Meeting
1 14 November 2024 ASX Release INGHAMS GROUP 2024 ANNUAL GENERAL MEETING Please find attached the Chairman’s address, the CEO and Managing Director’s address, and presentation for the Inghams Group (‘Inghams’ or ‘Group’) 2024 Annual General Meeting, which is being held today at 10.00am (AEDT). For p
Slide 2: For personal use only
2 This announcement has been authorised by the Inghams Group Limited Board. Marta Kielich Company Secretary Investor & Media Enquiries Brett Ward For personal use only brward@inghams.com.au / +61 437 994 451
Slide 3: Chair & CEO and Managing Director's Addresses for the 2024 AGM
3 CHAIR & CEO AND MANAGING DIRECTOR’S ADDRESSES FOR THE INGHAMS GROUP 2024 ANNUAL GENERAL MEETING (INCLUDING PRESENTATION) For personal use only
Slide 4: Chair's Address
4 Chair’s Address I am pleased to report that Inghams delivered record underlying financial results in FY24. Our key earnings, profit and cash flow metrics showed strong year-on-year growth, with these results underpinned by growth in both volumes and margins, a solid operating performance across fa
Slide 5: Chair's Address (continued)
5 We also launched our first Sustainability Linked Loan, which links the interest rates on our debt to greenhouse gas, water and waste targets. For those who are interested in reading more about our initiatives and results, I am sure you will find our updated Sustainability Report, which is in our 2
Slide 6: Chair's Address: Remuneration
6 As a result of the detailed FY24 benchmarking process, the Board determined there would be an increase of 4.2% to the TFR for the CEO/MD. For the CFO, there was only a small adjustment relating to minimum superannuation guarantee contributions. Inghams remuneration strategy and structure is design
Slide 7: Chair's Address: Remuneration and Woolworths agreement
7 relative proportion than the increase in NOPAT. This had the effect of reducing FY24 ROIC by 110 basis points. In terms of the overall ROIC target, while the target that has been set by the Board for the FY25- FY27 LTIP is, on an absolute basis, lower than the target adopted for the FY24-FY26 LTIP
Slide 8: CEO and Managing Director's Address
8 CEO and Managing Director’s Address Thank you, Helen, and good morning everyone. It is my pleasure to be presenting at today’s Annual General Meeting and I would like to add my welcome to all those joining us today. Inghams is the largest integrated poultry producer across Australia and New Zealan
Slide 9: Woolworths supply agreement and acquisitions
9 Toward the end of FY24 we agreed in-principal the commercial terms for the renewal of our multi- year supply agreement with Woolworths. Importantly, Inghams will remain Woolworths’ number one poultry supply partner. The key provisions of the new Agreement will take effect progressively in the seco
Slide 10: Investment projects and trading update
10 The first of these is an investment we are making at Lisarow to convert a production line to a fully cooked capability. This will add a second fully cooked manufacturing site to our network, providing east coast production capability and capacity, and dual-site contingency. The second project wil
Slide 11: Outlook and closing remarks
11 Overall, our operations are performing very well. The business is doing a good job of navigating current market conditions, we are making solid progress on diversifying our customer-base following the reduction in volume to Woolworths, and prices have remained stable. In closing, we believe that
Slide 12: 2024 Annual General Meeting
For personal use only 2024 ANNUAL GENERAL MEETING 14 NOVEMBER 2024
Slide 13: Disclaimer
DISCLAIMER Important notice The material in this presentation is general background information about the activities of Inghams Group For personal use only Limited (Inghams) and its subsidiaries (Inghams Group), and is current at the date of this presentation, unless otherwise noted. The content is
Slide 14: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY For personal use only We respectfully acknowledge the traditional owners both past and present, as custodians of this land we are meeting on today. Inghams 2024 Annual General Meeting Artist: Kelly Taylor www.ktaboriginalfineart.store 3
Slide 15: Agenda
AGENDA For personal use only 1 CHAIR’S ADDRESS Helen Nash 2 CEO & MANAGING DIRECTOR’S ADDRESS Andrew Reeves 3 FORMAL BUSINESS OF THE MEETING Helen Nash 4 GENERAL BUSINESS Helen Nash Inghams 2024 Annual General Meeting 4
Slide 16: Chair's Address
For personal use only CHAIR’S ADDRESS HELEN NASH
Slide 17: Chair's Address
CHAIR’S ADDRESS Record FY24 financial results For personal use only Our people & culture ESG highlights Board & Remuneration update Looking ahead Inghams 2024 Annual General Meeting 6
Slide 18: CEO & Managing Director's Address
For personal use only CEO & MANAGING DIRECTOR’S ADDRESS ANDREW REEVES
Slide 19: Highly Diversified Network
HIGHLY Largest poultry company across Australia and New Zealand DIVERSIFIED NETWORK >30% market share in Australia and New Zealand respectively For personal use only Geographically diverse network FACILITIES/FARMS Biosecurity import barrier Farms Hatcheries Ensures continuity of supply to meet our c
Slide 20: Inghams Strategy
INGHAMS STRATEGY OUR AMBITION IS TO BE OUR CUSTOMERS’ AND CONSUMERS’ FIRST CHOICE FOR POULTRY ACROSS AUSTRALIA AND NEW ZEALAND For personal use only § Our purpose is to provide deliciously good food in the best way, and is defined both by the products that we produce, and by the great outcomes we st
Slide 21: Record FY24 Financial Results
RECORD FY24 FINANCIAL RESULTS For personal use only X X X X CORE POULTRY VOLUME REVENUE UNDERLYING EBITDA1 NET PROFIT AFTER TAX2 476.4KT $3,262.0M $240.1M $101.5M +2.8% ON FY23 +7.2% ON FY23 +30.8% ON FY23 +68.0% ON FY23 DIVIDENDS PER SHARE PAYOUT RATIO 20.0 CENTS +37.9% ON FY23 73.1% 75.9% IN FY23
Slide 22: Woolworths Supply Agreement (Australia)
WOOLWORTHS SUPPLY AGREEMENT (AUSTRALIA) For personal use only § Agreed in-principle commercial terms for a new multi-year supply agreement for Australia with Woolworths § Remain Woolworths #1 poultry supply partner § The key provisions of the new agreement will take effect in two tranches during FY2
Slide 23: Bostock Brothers (NZ) Acquisition and Integration Update
BOSTOCK BROTHERS (NZ) ACQUISITION AND INTEGRATION UPDATE Overview For personal use only § Established in 2014, Bostock Brothers Limited (BBL) is the only certified organic producer of poultry in New Zealand § BBL’s operations are located in Hastings, on the central east coast of the North Island, ap
Slide 24: Investing in Our Business
INVESTING IN OUR BUSINESS STRENGTHENING OUR NETWORK For personal use only Acquired Bolivar (SA) Primary Processing facility Acquired Bromley Park Hatcheries (BPH) (NZ) § Strategically important investment, providing greater § Compelling opportunity to drive improved performance control over future p
Slide 25: Trading Update – Highlights
TRADING UPDATE – HIGHLIGHTS Reaffirming guidance1 for FY25: - Underlying EBITDA (pre AASB 16) in the range of $236 - $250 million, representing flat to ~6% growth on normalised FY24 (52- 1 For personal use only week) result - Core poultry volume change of -1% to -3% on FY24 (normalised) Covered 100%
Slide 26: Trading Update – Volume & Price
TRADING UPDATE – VOLUME & PRICE Average Weekly Group Core Poultry Volume (kt) § FY25 YTD1 group average weekly core poultry volume growth of -4.0% versus For personal use only 1H24 and +1.9% versus 2H24: - Retail channel growth reflects effect of WOW volume transition, strong growth in Australian Re
Slide 27: Compelling Investment Proposition
COMPELLING INVESTMENT PROPOSITION INGHAMS PROVIDES INVESTORS WITH A ROBUST AND ATTRACTIVE EARNINGS PROFILE For personal use only Operates at scale in an Affordable, healthy, Decades long Grow category attractive market with versatile and widely partnerships with attractiveness by positive growth fav