Slide 1: Half Year 2016 Results Highlights Presentation
ASX ANNOUNCEMENT For personal use only Half Year 2016 Results Highlights Presentation I have pleasure in enclosing the Half Year 2016 Results Highlights Presentation to be discussed on the Half Year Result 2016 Conference Call scheduled for 11:00am today. Brett Kelly Company Secretary 24 February 20
Slide 2: 1H FY2016 Half Year Results
For personal use only 1H FY2016 Half Year Results 24 February 2016 Barry Irvin – Executive Chairman Aidan Coleman – CEO Colin Griffin – CFO
Slide 3: Strategic Overview
Strategic Overview • Business mix continuing to evolve For personal use only • Bulk/retail commodities vs high value products • Life stage nutritionals partnership – Blackmores • Strong growth in infant formula • International food service and branded business growth • Manufacturing infrastructure i
Slide 4: Key Messages
Key Messages • Stable revenue against a back drop of continued lower dairy For personal use only commodity prices • Improved statutory/normalised profit and EPS • Increased direct milk supply 6.4% • Manufacturing volume 3.5% • Revenue dairy nutritionals 32% • Revenue international packaged goods 2.7
Slide 5: Result Highlights – Statutory
Result Highlights – Statutory For personal use only • Revenue increase to $561.4m • EBITDA increase to $32.4m • PAT increase to $14.5m • EPS increase to 9.5cps • Interim dividend 4.5cps 1H FY2016 RESULTS | PAGE 3
Slide 6: Result Highlights - Normalised
Result Highlights - *Normalised For personal use only • Revenue increase to $561.4m • EBITDA increase to $32.9m • PAT increase to $14.8m • EPS increase to 9.7cps • Interim dividend 4.5cps *Normalised for investment in Milk Sustainability and Growth Program (FY2016 and FY2015) 1H FY2016 RESULTS | PAG
Slide 7: 1H FY2016 Results (Normalised)
1H FY2016 Results (*Normalised) Milk Per Financial Sustainability and Change from Consolidated For personal use only Statements Growth outcome Normalised Result prior period Period Ending 27 December 2015 $’000 $’000 $’000 $’000 % Revenue 561,373 561,373 8,873 1.6 Cost of sales (484,522) 488 (484,03
Slide 8: Balance Sheet (extract)
Balance Sheet (extract) 1H FY2016 1H FY2015 FY2015 For personal use only Dec $m Dec $m Jun $m Trade and other receivables 122.9 131.0 119.5 Inventories 206.5 203.7 194.9 Property, plant & equipment 214.7 208.2 209.7 Total Assets 577.9 588.8 552.4 Trade and other payables 128.9 134.8 139.1 Borrowings
Slide 9: Working Capital
Working Capital 1H FY2016 1H FY2015 FY2015 For personal use only Dec $m Dec $m Jun $m Trade Receivables 122.9 131.0 119.5 Inventories 206.5 203.7 194.9 Trade Payables (128.9) (134.8) (139.1) 200.5 199.9 175.3 • Normal seasonal peak in working capital • Working capital in line with 1H FY2015 • Increa
Slide 10: Cash Flow
Cash Flow For personal use only Receipts from customers 582.7 549.0 Payments to suppliers (572.7) (576.7) Payments under Milk Sustainability and Growth program (0.5) (18.6) Interest and other costs of financing paid (2.0) (1.5) Income tax paid (1.3) (2.7) Operating activities 6.2 (50.5) Investing ac
Slide 11: Net Debt
Net Debt For personal use only Cash 17.3 30.7 10.3 Debt 92.4 85.6 69.0 Net Debt 75.0 54.9 58.7 Net Debt / (Net Debt + Equity) 18.9% 15.0% 15.8% Interest Coverage > 2.5 times 8.5 4.4 5.9 Debt Leverage < 3.0 times 1.4 1.4 1.4 • Bank facilities refinanced with improved pricing and operating flexibility
Slide 12: Dairy Commodity Prices and Farm Gate Milk Price
Dairy Commodity Prices and Farm Gate Milk Price For personal use only • Farm gate milk price generally linked to global dairy commodity market price • 2015 global production responded to strong market signals from previous year • European production caps removed • Russian sanctions continue • Declin
Slide 13: Milk Sustainability and Growth Program
Milk Sustainability and Growth Program Program achievements to date For personal use only • Approximately 3,000 dairy cows added • 20 new land purchases • 55 new or upgraded irrigation systems • 16 new or upgraded dairies • 13 feed systems and feed pads • 4 road under passes • 11 effluent management
Slide 14: Manufacturing Update
Manufacturing Update • Continued improvement in performance measures For personal use only • Safety improvement - LTIFR 46% improvement • Quality improvement – Right First Time 97.2% • Award winning products • Produce winning cheeses including overall champion at the Royal Agricultural Society compe
Slide 15: Sales & Marketing
Sales & Marketing Bega Brand For personal use only • Number one Australian cheese brand – 14% market share • Continued strong growth in many countries in Middle East Food service • Won major QSR processed cheese tender for Asia Pacific • Chef lead selling program continues to introduce cream cheese
Slide 16: Investing in Infrastructure
Investing in Infrastructure Nutritionals Bega For personal use only Derrimut Bega • Increased canning capacity • New blending capabilities Cheese cutting and packaging • Efficiency and capacity improvements Bega Strathmerton • New natural cheese shred and slice packaging lines (Bega) Cream cheese •
Slide 17: Strategic Priorities
Strategic Priorities • Leverage strong nutritional demand and grow infant formula For personal use only and child nutritional platform • Grow international consumer and food service segments • Extract more value from existing milk components • Decrease exposure to skim milk • Drive efficiency throug
Slide 18: For personal use only
For personal use only
Slide 19: Disclaimer
DISCLAIMER The following disclaimer applies to this presentation and any information provided in this presentation (Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any Information. For personal use only This presentation