Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — Shareholder Meeting (July 2014)
31 slides from Australian Agricultural's shareholder meeting presentation, Jul 17, 2014
Slide 1: AACo FY14 Annual General Meeting Presentation
Australian Agricultural Company Limited For personal use only ABN 15 010 892 270 AACO FY14 ANNUAL GENERAL MEETING PRESENTATION ASX Announcement No. 20/2014 17 July 2014 Attached is a presentation for the Annual General Meeting of the Australian Agricultural Company Limited (‘AACo’) to be held today.
Slide 2: For personal use only
For personal use only
Slide 3: Disclaimer
Disclaimer Important information Summary information only This presentation contains general information about the Australian Agricultural Company Limited and its consolidated entities (“AACo") and its activities current as at the date of this presentation. It is provided in summary and does not pur
Slide 4: For personal use only
For personal use only
Slide 5: For personal use only
For personal use only
Slide 6: For personal use only
For personal use only
Slide 7: AACo fundamentals and historical constraints
For personal use only AACo fundamentals Historical constraints • Australia's largest cattle and beef producer –strategic • Volatile domestic cattle markets affected by variable asset base comprising a herd of approximately 541,000 climatic conditions head (30 Jun 14) and operates a property portfoli
Slide 8: Strategy Implementation
Strategy Implementation Implementation of a vertically integrated strategy accelerated by the new Managing Director: — Focus onresponding to demand signals from beef customers and maximising margins through branding Transition away from a production-led business model — Participate in all key areas
Slide 9: Our Vision and Strategic Goals
Our Vision Be trusted globally as producers of the finest quality Australian beef i Our Strategic Goals Rapidly build an authentic AACo brand Align the business to enable strategy Secure processing capacity Develop cattle procurement capabilities and strategies Optimise production activities Exploit
Slide 10: Branded Beef supply chain
For personal use only Branded Beef Pastoral Sales, Marketing & • Wagyu Live Sales Distribution • Shortfed/Other Margin Logistics Margin 3rd Party Processing Processors Backgrounding Grassfed Production /Feedlots Properties Purchasing
Slide 11: Grainfed, Northern Beef and Grassfed supply chain
For personal use only Grainfed Northern Beef Grassfed Sales, Marketing & • Wagyu Manufacturing Live Sales Distribution • Shortfed/Other Beef Logistics Margin Margin Margin 3rd Party Darwin Processing Processors Facility Backgrounding Grassfed Production /Feedlots Young Cattle Properties Purchasing
Slide 12: Capital employed, main products and key drivers by business
For personal use only Grainfed Northern Beef Grassfed Capital Employed ~$200m ~$100m ~$800m Main Product Differentiated, branded beef Quality manufacturing beef Live cattle sales Key Drivers • Global beef prices • Global beef prices • Climatic conditions • Grain prices • Domestic cattle prices and •
Slide 13: Grainfed: Wagyu and shortfed sales, grain prices, cattle exiting feedlots
For personal use only Spot Grain Prices (Index) 400 350 300 3 months to 3 months to June 30 2014 June 30 2013 250 Sorghum Brisbane Wagyu sold (mil kg sw*) 2.6 2.1 200 APW Brisbane Wagyu sold ($/kg sw) $12.46 $11.80 150 F1 Barley Brisbane Shortfed/Other (mil kg sw) 2.9 1.7 100 Shortfed/Other ($/kg sw
Slide 14: Q1 FY15 versus Q1 FY14 cattle mix
For personal use only Q1 FY15 (5.0m kg cwt) Q1 FY14 (6.0m kg cwt) 15% 47% 53% 85%
Slide 15: Northern Beef: Darwin Facility and imported beef prices
For personal use only Aerial Photo of Darwin Facility - July 2014 Imported 90 CL Frozen 550 500 450 (A¢/kg) 400 350 300 250 200 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 2011 2012 2013 2014
Slide 16: Grassfed: live export market and cattle sales
For personal use only Live Export Market (Indonesian Light Steer Prices) 250 230 210 190 170 (A¢/kg lwt) 150 130 110 90 3 months to 3 months to 70 (mil kg lwt) June 30 2014 June 30 2013 50 Jan Apr Jan Apr Jan Apr Jan Apr Feb Aug Sep Feb Aug Sep Feb Aug Sep Feb Jun Jul Nov Dec Jun Jul Nov Dec Jun Jul
Slide 17: For personal use only
For personal use only
Slide 18: Disclaimer
Disclaimer Important information Summary information only This presentation contains general information about the Australian Agricultural Company Limited and its consolidated entities (“AACo") and its activities current as at the date of this presentation. It is provided in summary and does not pur
Slide 19: For personal use only
For personal use only
Slide 20: For personal use only
For personal use only
Slide 21: For personal use only
For personal use only
Slide 22: AACo fundamentals and historical constraints
For personal use only AACo fundamentals Historical constraints • Australia's largest cattle and beef producer –strategic • Volatile domestic cattle markets affected by variable asset base comprising a herd of approximately 541,000 climatic conditions head (30 Jun 14) and operates a property portfoli
Slide 23: Strategy Implementation
Strategy Implementation Implementation of a vertically integrated strategy accelerated by the new Managing Director: — Focus onresponding to demand signals from beef customers and maximising margins through branding Transition away from a production-led business model — Participate in all key areas
Slide 24: Our Vision and Strategic Goals
Our Vision Be trusted globally as producers of the finest quality Australian beef i Our Strategic Goals Rapidly build an authentic AACo brand Align the business to enable strategy Secure processing capacity Develop cattle procurement capabilities and strategies Optimise production activities Exploit
Slide 25: Branded Beef supply chain
For personal use only Branded Beef Pastoral Sales, Marketing & • Wagyu Live Sales Distribution • Shortfed/Other Margin Logistics Margin 3rd Party Processing Processors Backgrounding Grassfed Production /Feedlots Properties Purchasing
Slide 26: Grainfed, Northern Beef and Grassfed supply chain
For personal use only Grainfed Northern Beef Grassfed Sales, Marketing & • Wagyu Manufacturing Live Sales Distribution • Shortfed/Other Beef Logistics Margin Margin Margin 3rd Party Darwin Processing Processors Facility Backgrounding Grassfed Production /Feedlots Young Cattle Properties Purchasing
Slide 27: Capital employed, main products and key drivers by business
For personal use only Grainfed Northern Beef Grassfed Capital Employed ~$200m ~$100m ~$800m Main Product Differentiated, branded beef Quality manufacturing beef Live cattle sales Key Drivers • Global beef prices • Global beef prices • Climatic conditions • Grain prices • Domestic cattle prices and •
Slide 28: Grainfed: Wagyu and shortfed sales, grain prices, cattle exiting feedlots
For personal use only Spot Grain Prices (Index) 400 350 300 3 months to 3 months to June 30 2014 June 30 2013 250 Sorghum Brisbane Wagyu sold (mil kg sw*) 2.6 2.1 200 APW Brisbane Wagyu sold ($/kg sw) $12.46 $11.80 150 F1 Barley Brisbane Shortfed/Other (mil kg sw) 2.9 1.7 100 Shortfed/Other ($/kg sw
Slide 29: Q1 FY15 versus Q1 FY14 cattle mix
For personal use only Q1 FY15 (5.0m kg cwt) Q1 FY14 (6.0m kg cwt) 15% 47% 53% 85%
Slide 30: Northern Beef: Darwin Facility and imported beef prices
For personal use only Aerial Photo of Darwin Facility - July 2014 Imported 90 CL Frozen 550 500 450 (A¢/kg) 400 350 300 250 200 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 2011 2012 2013 2014
Slide 31: Grassfed: live export market and cattle sales
For personal use only Live Export Market (Indonesian Light Steer Prices) 250 230 210 190 170 (A¢/kg lwt) 150 130 110 90 3 months to 3 months to 70 (mil kg lwt) June 30 2014 June 30 2013 50 Jan Apr Jan Apr Jan Apr Jan Apr Feb Aug Sep Feb Aug Sep Feb Aug Sep Feb Jun Jul Nov Dec Jun Jul Nov Dec Jun Jul
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