Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — 6 months to Dec 2004 Earnings Presentation
28 slides from Australian Agricultural's earnings presentation, Feb 10, 2005
Slide 1: Results Presentation – Australian Agricultural Company
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Slide 2: Agenda
RO G3 Change of Balance Date Results Summary 2005 Operating Conditions Asset Growth Outlook & Guidance Questions
Slide 3: 1. Change of Balance Date
1. Change of Balance Date Why did we do it? ~ To accurately reflect seasonal business ~ To provide a less stressful work environment at year end for our field staff ~ To encourage more orderly marketing of livestock ~ To reduce volatility of reported cash flows
Slide 4: 2. Results Summary
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Slide 5: Total Operating Revenue, EBIT, NPAT 2001-2004
2001. 2002 + +2003 +2004 Total Operating 1099 663-1278 ~—«183.2 evenue ($m) EBIT ($m) 585 (13) 243 558 NPAT ($m) 24.9 (3.7) 11.6 31.3 Cattle Herd (head) 408,000 393,000 395,000 524,000 EPS (cents) NA (-18) 58 15.6
Slide 6: Beef sold and results highlights
6 Months to 6 Months to 12 months to 12 months to Dec 2004 Dec 2003 Dec 2004 Dec 2003 Beef Sold (million) 20.6kg
Slide 7: Assets at Dec 2004
% change Assets at 31 Dec 2004 $m from Dec 2003 Livestock 3556 A 48% PP&E 385.3 A 71% Other Assets. 44.1 A 25% Total 785.0 A 57% NTA = $2.03per share vs. $1.48 at Dec 2003 and $1.78 at June 2004 Leverage = 41% vs. 31% at Dec 2003 and 31% at June 2004
Slide 8: Cattle sales and cattle numbers
Avg Sell Avg Sale Cattle Sales Number of price $/kg Avg KG Gross Sales | price per cattle Sold DW DW head 6 Months To Dec 2004 77,893|$ 3.82 264|$ 78687,000|$ 1,010 6 Months to Dec 2003 80,910] $ 3.07 243} $ 60,350,000 | $ 746 Cattle Numbers 6 Months 12 Months Opening Inventory 467,858 395,140 Purch
Slide 9: Financial results for six and twelve months
6 Months to Dec 6 Months to Dec 12 Months to 12 Months to 2004 2003 Dec 2004 Dec 2003 / $ million $ million $ million $ million H Operating Revenue 79.7 §5.1 183.2 128.7 / Earnings Before Interest and Tax 14.4 {0.1} §5.8 24.3 Net Profit After Tax 6.2 (2.9) 31.3 11.6 | Net Tangibie Asset backing per
Slide 10: Performance Chart
$'000 200,000 150,000 $'000 rmance Chart Operating Revenue 2001 2002 Calendar Year Earnings Before interest and Tax 60,000 50,000 40,000 30,000 20,000 10,000 0 (10,000) RS) we RS se Calendar Year Net Profit After Tax $'000 35,000 30,000 25,000 20,000 Calendar Year $'000 Total Assets 900,000 800,000
Slide 11: Cattle Sales & AACo Beef Price Indicator with Benchmarks
attle Sales & AACo Beef Price Indicator with Benchmarks June 2002 - December 2004 400 y 390 VA A} m+ 230 380 L 14 VA VA Z| V4 370 A a a VW} | | 360 yr | j VI A A LE | 350 {| Vid 1 | 1} 210 1] aa ; | | 7 lA A a vA 340 VA VA M4 } a lV] ee a V4 V4 mf | 4 A y 1 ig g V4 yy 330 y ae 1 | hel i || x 1] a 4
Slide 12: 3. 2005 Operating Conditions
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Slide 13: Rainfall anomalies Northern Territory and Queensland
Northem Territory Fiainlall Anomalies 1 August 2004 lo 31 January 2005, ‘Gueensiand Rairlall Anomalies: 1 August 2004 to 31 January 2005 Prod of lle Nelional Climate Goede Proad ul ee Nalional Gira Gordie
Slide 14: Map of AACo properties
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Slide 15: Asset Growth
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Slide 16: Total Assets
$'000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Total Assets 2001 2002 2003 Calendar Year 2004
Slide 17: Outlook & Guidance
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Slide 18: Seasonal conditions and market outlook
Seasonal conditions — good start to season although more rain is still required The world supply of quality beef remains limited by historically low herd numbers in the USA and Australia There should be a return to normalised trading conditions as temporary bans on US and Canadian beef exports are l
Slide 19: The Year Ahead for AACo
The Year Anead: for AACo a € Maximise revenue per unit for shareholders by: ~ Improving productivity through breed development ~ Utilising market intelligence and improving channel management ~ Increasing sustainable carrying capacity through best practice land management ~ Controlling costs * Striv
Slide 20: Continuous improvement and 2005 guidance
* Achieve continuous improvement in: ~ Safety -~ The environment ~ Risk management and governance systems * Guidance for the 2005 year will be provided at the conclusion of the current wet season in March, however we do not expect the result to vary significantly from current market expectation. 20
Slide 21: Questions
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Slide 22: re hd
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Slide 23: Livestock valuation under AASB1037 SGARA
Livestock is valued in accordance with AASB1037 SGARA — ‘Self Generating & Regenerating Assets’ Cattle assets vary in value according to movements in market prices, weight, age and type Market prices are more easily determined in liquid markets with spot prices — trading stock In markets lacking liq
Slide 24: Trading Cattle and Breeding Cattle valuation
@ @ Trading Cattle ~ QCMI: an indicator only ~ Roma, Queensland cattle store sales ~ Prices quoted to AACo at year end Breeding Cattle ~ Large cattle property sales inclusive of breeding stock ~ Australian breeding herd outlook ~ US breeding herd & beef supplies outlook ~ Global beef demand outlook
Slide 25: Cattle types and descriptions
Type Description Calves Vealer Steers & Heifers Yearling Steers & Heifers Steers Heifers Manufacturing Steers Cows Bulls Feeder Steers Feeder Heifers Male and female calves less than 6 months old Castrate male or female cattle with no permanent teeth. Less than 12 months old and still suckling Castr
Slide 26: Glossary of terms
Term Definition ABARE Bos Indicus Bos Taurus - BSE Case Ready Meat DW Feedlot Lw MLA MSA QcMI SCU Turn-off Wagyu USDA Australian Bureau of Agricultural and Resource Economics Refers to tropical or humped breeds e.g. Brahman Refers to a class of temperate British and European breeds e.g. Angus Bovine
Slide 27: Glossary of financial terms
Term Description AASB Australian Accounting Standards Board Dividend Yield Dividend per share / Current Share Price DPS ‘Dividends per share EBIT Earnings before interest and income tax EPS Earnings per share Gearing Net Debt / Equity Leverage “Net Debt / (Net Debt + Equity) NTA Net Tangible Assets
Slide 28: Se oe oe oe oe ce oe oe . . o ae oe ae
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Australian Agricultural Company — 6 months to Dec 2004 Earnings Presentation on 6ix