Slide 1: Sale of Polarcold - Briefing Presentation
SCALES CORPORATION LIMITED SALE OF POLARCOLD BRIEFING PRESENTATION 9 MAY 2018
Slide 2: Executive Summary
EXECUTIVE SUMMARY • Scales has entered into a share sale agreement with Emergent Cold to sell its shares in its coldstorage businesses Polarcold and Whakatu Coldstores (Polarcold) for $151.4m subject to completion adjustments: • Multiple of 15.6x FY17 EBIT of $9.7m. • Transaction is subject only to
Slide 3: Transaction Overview
TRANSACTION OVERVIEW 1
Slide 4: Rationale
RATIONALE Capital Employed (Dec-17) • Scales’ refined strategy is about adopting a Coldstores greater focus on pure agri-businesses and 30% businesses / opportunities that play well to our strengths. • Polarcold: Rest of Group Is less aligned to our focus / strengths. 70% Delivered a lower retur
Slide 5: Financial Impact
FINANCIAL IMPACT Scales ex. FY2017 Scales today Coldstores Coldstores Revenue 399.1 53.7 345.4 Underlying EBITDA 62.0 14.5 47.5 Underlying EBIT 47.8 9.7 38.0 Net Cash / Debt (as at 31 Dec) (40.8) 110.6 Capital Employed 307.5 87.5 220.1 ROCE 15.5% 11.1% 17.3% Note: 1. Transaction effective from 1 Jun
Slide 6: Scales Strategy
SCALES STRATEGY 2
Slide 7: Our Strategy
OUR STRATEGY A greater focus on pure Agri-Business • We have refined our group investment / growth strategy, adopting a greater focus on pure agri-businesses. • We will focus on opportunities that play well to our strengths: Fully-vertically integrated. Export-led. Add value from our Chinese r
Slide 8: Our Investment Universe
OUR INVESTMENT UNIVERSE Agri-Business encompasses the following primary industries The Primary Sector accounts for: 79.2% of New Zealand’s Innovative Processed Agriculture Dairy, Meat & Wool, Animal merchandise exports Food products, Arable products, Poultry and eggs Fisheries / Apiculture Aquacultu
Slide 9: Approach to Capital Allocation
APPROACH TO CAPITAL ALLOCATION Scales’ Vision: To be the foremost investor in, and grower of, New Zealand agribusinesses by leveraging our unique insights, experience, and access to collaborative synergies. Our long-term goal: To generate a long-run average 15% Return on Capital employed across our