Australian Dairy Nutritionals Limited · ASX:AHF
Australian Dairy Nutritionals — Australian Dairy Farms Group — Investor Presentation (February 2016)
22 slides from Australian Dairy Nutritionals's investor presentation, Feb 8, 2016
Slide 1: Australian Dairy Farms Group
AUSTRALIAN DAIRY FARMS GROUP ASX’s only vertically integrated dairy company For personal use only ADF + CDC = Vertical Integration Dairy Farming - Processing - Own Brands - Exports Fresh Milk - Specialty Milk - Organic Milk - Value Added Milk Products
Slide 2: Disclaimer
Disclaimer For personal use only Commercial in Confidence This Presentation contains general information only and is, or is based upon, information which has been released to ASX. This document is not an invitation, offer or recommendation (express or implied) to apply for or purchase or take any ot
Slide 3: Introduction
Introduction For personal use only At the Start Australian Dairy Farms Group (“AHF” or “Group”) listed on ASX in October 2014 to be an owner and operator of Australian dairy farms undertaking farm consolidation in Australia’s fragmented dairy supply industry – focussed initially on South Western V
Slide 4: Location – Camperdown Dairy Company & AHF farms
Location – Camperdown Dairy Company & AHF farms For personal use only Camperdown Dairy Heywood Brucknell 1,2,3 & 4 Company (CDC) CDC is approximately 30 minutes drive from AHF’s existing Brucknell farm hub. All farms are within a transportable distance via milk tanker. Camperdown is a picturesque to
Slide 5: Corporate Profile and Statistics
Corporate Profile and Statistics For personal use only Corporate Statistics @ 5 February 20161 ASX Code AHF Security price (5 February 2016) $0.30 12 month security price range $0.125 - 0.59 Stapled Securities on issue (3 February 2016) 166,184,8282 Options (A$0.25 exercised by 31 March 2016) 14,755
Slide 6: CDC Transaction Highlights
CDC Transaction Highlights For personal use only AHF has entered into a binding agreement to acquire 100% of the shares in the Camperdown Dairy Company Pty Ltd (“Camperdown” or “CDC”) for a total consideration of A$11.0m CDC is an established boutique dairy processor located in SW Victorian dair
Slide 7: CDC Transaction Highlights
CDC Transaction Highlights For personal use only Highly accretive acquisition – full year benefit to flow through in FY 2017 Acquisition to be fully funded by existing cash and debt - settlement/completion expected in Feb 2016 AHF to become the ASX’s only vertically integrated dairy company wi
Slide 8: Financial Position – post CDC acquisition and option conversion
Financial Position – post CDC acquisition and option conversion For personal use only ADFG 31.12.15 Options Debt CDC Pro-forma Total Liabilities to Total Assets Ratio 23.25% (includes Convertible Notes) $'000 $'000 $'000 $'000 $'000 ASSETS Net debt to Total Assets 14.7% Current Assets (includes Conv
Slide 9: Dairy farm production and price estimates
Dairy farm production and price estimates1 For personal use only FY 2016 FY2017 Assumes no additional farm acquisitions Farm Hectares 1,391 1,391 Farm Acres 2,841 2,841 Herd Size Capacity 1,800 2,100 Actual 1,600 2,100 Est. Annual 12,500,000 litres 16,500,000 litres Production 912,500 kgMS 1,204,500
Slide 10: AHF & CDC chronology
AHF & CDC chronology For personal use only • CDC was originally established as a supplier of milk to Aussie Farmers Direct, and within 5 years CDC has evolved into a business producing a range of consumer dairy products for multiple customers • AHF listed in October 2014 as ASX’s first listed dairy
Slide 11: Why Camperdown Dairy Company (CDC)?
Why Camperdow n Dairy Company (CDC)? For personal use only Attractive market w ith Well established Unique capability for the Experienced Scalable platform for strong grow th and profitable export of fresh dairy management continuing fundamentals business products into China team grow th Victoria
Slide 12: CDC has a growing blue chip customer base
CDC has a grow ing blue chip customer base For personal use only • Aussie Farmers Direct (“AFD”) represents 44.6% of total sales1 from 100% two years ago. As the composition of the customer base continues to evolve, the opportunity to grow sales w i th these customers becomes increasingly attractive
Slide 13: Growth opportunities
Grow th opportunities For personal use only Continue to grow China and Asian export Expand Farmers Own product offering business CDC has proven itself as a safe and reliable CDC is one of two players exporting to China manufacturer of Farmers Own milk (a brand owned by Woolworths). CDC is working wi
Slide 14: Growth Opportunities - “Camperdown Dairy” brand
Growth Opportunities - “Camperdown Dairy” brand For personal use only CDC has developed and commenced distribution of “Camperdown Dairy” branded dairy and yoghurt products through both independent and major retailers. Camperdown Dairy branded products include milk, yoghurt, butter and cream. A
Slide 15: Growth Opportunities – Domestic Markets
Growth Opportunities – Domestic Markets For personal use only Woolworths developed the Farmers’ Own brand as an end-to-end link between the farmer and the customer. As an existing supplier of contract manufacturing solutions to Woolworths CDC is well placed to broaden and grow the volume its mar
Slide 16: Growth Opportunities - Asian export
Growth Opportunities - Asian export For personal use only China and Asian export strategy is a key focus of management and is expected to be a key driver of future growth The initial focus is on the export of fresh milk and yoghurt via importers and distributors, and then moving to a direct impo
Slide 17: China exports and certification
China exports and certification For personal use only CDC is one of only two dairy companies in Australia with China Inspection Quarantine Certification (CIQ) for the rapid customs clearance of fresh milk and yoghurt into China Certification is a material barrier to entry for other producers M
Slide 18: CDC’s continued expansion into Asia is well supported by strong growth fundamentals
CDC’s continued expansion into Asia is w ell supported by strong grow th fundamentals For personal use only A number of trends underpin grow i ng demand in the Asian market for Australian consumer dairy products Health, w ellbeing, and Rising Chinese Government trade Geographic food safety middle cl
Slide 19: There is a small number of boutique consumer dairy players of scale in Victoria
There is a small number of boutique consumer dairy players of scale in Victoria For personal use only CDC is the only boutique player w i th capabilities across milk, yoghurt, butter and cream Company Description FY14 revenue Milk Yoghurt Butter Cream Established in 2010 $15m Production
Slide 20: CDC has contract raw milk sourcing arrangements
CDC has contract raw milk sourcing arrangements For personal use only CDC has strong relationships w i th dairy farmers thereby ensuring secure access to an abundant supply of quality milk. Fresh raw milk is quickly and efficiently transported to CDC from supplying farms (typically w i thin 24 hours
Slide 21: CDC maintains high quality accreditations and compliance standards
CDC maintains high quality accreditations and compliance standards For personal use only CDC is committed to producing goods to the highest quality standards.The commitment extends to ensuring that all the necessary compliance and regulatory standards are met Quality Assurance Industry Certification
Slide 22: AHF Contacts
AHF Contacts For personal use only For additional company information or media matters please contact: James Moses Managing Director Mandate Corporate Dairy Industry HACCP Dairy Food Safety Association of Bus: +61 2 8211 0612 Australia 2015 Mob: +61 420 991 574 Woolw orths Email: james@mandatecorpor
Australian Dairy Farms Group — Investor Presentation (February 2016) on 6ix