Pure Foods Tasmania Ltd. · ASX:PFT
Pure Foods Tasmania — Investor Presentation (July 2022)
40 slides from Pure Foods Tasmania's investor presentation, Jul 28, 2022
Slide 1: Capital Raising Presentation
For personal use only CAPITAL RAISING PRESENTATION Authorised by the Board on Wednesday, 27 th July 2022, released to ASX on Thursday, 28 th July 2022 1
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER For personal use only NOT FOR RELEASE TO U.S. WIRE SERVICES OR DISTRIBUTION IN THE UNITED STATES IMPORTANT: You must read the following before continuing This presentation is dated Thursday, 28th July 2022 and has been prepared by Pure Foods Tasmania Limited (ASX:PFT
Slide 3: Important Notice and Disclaimer (cont)
IMPORTANT NOTICE AND DISCLAIMER (cont) For personal use only No representation or warranty is given, and nothing in this presentation or any other information made available by the Company or any other party should be relied upon as a promise or representation, as to the future condition of the resp
Slide 4: Important Notice and Disclaimer (cont)
IMPORTANT NOTICE AND DISCLAIMER (cont) For personal use only Investment risk and other risks An investment in New Shares is subject to investment and other known and unknown risks, some of which are beyond the control of PFT and its Directors, including possible loss of income and principal invested
Slide 5: Capital Raising
For personal use only CAPITAL RAISING P F T is launching as equity raising via a placement to raise approximately $2.55 million at $0.165 per New Share (‘Offer Price’) and a rights issue to raise approximately $3.40 million at the Offer Price (‘Entitlement Offer’) assuming all rights taken up PFT cu
Slide 6: 1. Pure Foods Tasmania Overview
For personal use only 1. Pure Foods Tasmania Overview 6
Slide 7: Pure Foods Tasmania Overview
For personal use only PURE FOODS T A S M A N I A OVERVIEW PFT was formed in 2015 with the aim to enhance and promote Tasmania’s food businesses. PFT’s strategy is to develop new products within its existing brands and in the plant-based food market, to acquire complementary brands and businesses and
Slide 8: Pure Foods Tasmania Strategy
For personal use only PURE FOODS T A S M A N I A STRATEGY PFT’s growth strategy encompasses several key themes: 1. organically grow its existing pate, prepared vegetables and plant-based ice cream and cheese brands; 2. improve margins and capacity via automation of its production as products and bra
Slide 9: Pure Foods Tasmania Marketing & Brand Drivers
For personal use only PURE FOODS TASMANIA MARKETING & BRAND DRIVERS PFT’s Brand Strategy and growth is driven by key themes based on consumer lead categories, being targeted at the “conscious consumer”, offering “convenience” and “indulgence home entertaining”. PFT Top Line Objectives These themes a
Slide 10: Financial Highlights FY22
FINANCIAL HIGHLIGHTS FY22* For personal use only Pure Food Tasmania’s FY22 gross revenue up 3 4 % from $7.7 million to $10.4 million. • Tasmanian Pate increased sales to $4 million in FY22. New flavours of Homestead Pate were launched in FY22 including Chicken & Cheddar and Chicken & Chilli. Homeste
Slide 11: Current Brand Portfolio
CURRENT B R A N D PORTFOLIO For personal use only 11
Slide 12: PFT's Customer Base Continues to Grow Across All Channels
PFT'S C U S T O M E R B A S E CONT INUES TO GROW A C R O S S ALL C H A N N E L S For personal use only 12
Slide 13: Daly Potato Co Update: Potato & Gravy
DALY POTATO CO UPDATE For personal use only POTATO & GRA VY M O V E S TO 100% RECYCLABLE PACKAGING. Available in Woolworths (QLD and TAS) and independent stores in September 2022. The relaunch of Potato & Gravy with new 1 0 0 % recyclable packaging sourced from sustainable paper will be available in
Slide 14: Daly Potato Co Update: Heat & Eat Daly Bakes Range
DALY POTATO CO UPDATE For personal use only NEW “HEA T & EA T” FROZEN DALY B A K E S RANGE • Launching July 2022. • "Heat & Eat” of frozen vegetable range – capturing a new market. • Consumers are demanding convenience, but currently there is no offering for the top tier premium consumers. • Packagi
Slide 15: Lauds Plant-Based Foods Update
L A UD S PLANT-B A S E D FOODS UPDATE For personal use only LAUNCH OF PREMIU M PLANT-B A S E D C A S H E W C R E A M C H E ES E RANGE • Cashew Cream Cheese Spread range 270g. • 4 flavour variants – extending the Lauds product range. • Launched into Independents in Tasmania, Victoria, New South Wales
Slide 16: Cashew Creamery ranging into Woolworths Metro
For personal use only "Our plant-based ice cream business has secured ranging into Woolworths m e t r o stores, with strong growth already showing. T h e Cashew Creamery is a first of its kind for the Australian market due to its base ingredient of cashews." Michael Cooper, Managing Director 16
Slide 17: IGA outlets for Woodbridge Smokehouse
For personal use only "Our relationship with IGA stores has seen P F T secure an additional 1 5 0 0 outlets across Australia for our Woodbridge Sm okeh ouse business." Michael Cooper, Managing Director 17
Slide 18: 2. Capital Raising Funds Usage
For personal use only 2. Capital Raising Funds Usage 18
Slide 19: Usage of Funds
For personal use only USAGE OF FUNDS Today’s raising will allow PFT to continue growth in organic sales, improve operating efficiencies and capacity, secure key assets and exploit new product expansion opportunities. 1. Accelerating Growth • Support continued organic growth • New product development
Slide 20: Usage of Funds – Growth Initiatives
For personal use only USAGE OF FUNDS – GROWTH INITIATIVES 1. Accelerating Growth • Support the launch of Potato and Gravy (~$0.30m – FY23) • Marketing / branding (~$0.20m – FY23) • Working capital and new product development (~$0.80m – FY23/FY24) 2. Driving Production Efficiencies • Multivac – Tasma
Slide 21: Usage of Funds – continued
For personal use only USAGE OF FUNDS – continued 1. Accelerating Growth • Potato & Gravy – relaunch involved the development of new packaging. With the challenge to improve: • Recycling of packaging • Lower packaging cost • Improved efficiency of production; • Increased brand extension; and • Improv
Slide 22: Usage of Funds – continued
For personal use only USAGE OF FUNDS – continued 1. Accelerating Growth • PFT sees the largest growth potential with The Cashew Creamery manufacturing capacity and the ongoing consumer demand within this category. Current New Product Development includes: • Flavour and format extensions within exist
Slide 23: Usage of Funds – continued
For personal use only USAGE OF FUNDS – continued 2. Driving Production Efficiencies • With the continued growth of PFT production and revenue base opportunities the challenge is to maintain effective and efficient supply chains for a scalable business. • PFT has been partnering and working with key
Slide 24: Usage of Funds – continued
For personal use only USAGE OF FUNDS – continued 2. Driving Production Efficiencies • With the diversification of PFT’s brands it allows PFT to identify opportunities or risks and pivot priorities quickly. • This included a focus on margin improvement and maximising returns of Woodbridge Smokehouse.
Slide 25: Usage of Funds – continued
For personal use only USAGE OF FUNDS – continued 3. Product Expansion Opportunities • With the continued growth the Company is actively looking for opportunities to expand its footprint. • This may include: • Consolidation of PFT’s existing three facilities; • Complementary acquisitions; • Partnerin
Slide 26: 3. Capital Raising Details
For personal use only 3. Capital Raising Details 26
Slide 27: Capital Raising Details
For personal use only CAPITAL RAISING DETAILS Items Details Placement Structure & Size PFT is undertaking an institutional/Sophisticated Investor placement to raise approximately $2.55 million (‘Placement’) Pricing The Placement will be conducted at $0.165 per share (‘Offer Price’), representing a 1
Slide 28: Sources and Use of Funds
For personal use only SOURCES AND USE OF FUNDS Uses of Funds $M Growth Initiatives Accelerating Production $5.65 million Driving Production Efficiencies Product Expansion Opportunities Transaction Costs Lead Manager $0.30 million Legal Fees ASX Fees Automic Registry Fees TOTAL $5.95 million Sources
Slide 29: Timetable
For personal use only TIMETABLE Event Date Placement Trading halt and announcement of Placement Thursday, 28th July 2022 Placement bookbuild opens Thursday, 28th July 2022 Placement bookbuild closes Friday, 29th July 2022 Announcement of completion of Placement and trading halt lifted Monday, 1st Au
Slide 30: Appendix 1: Key Risks
For personal use only Appendix 1: Key Risks 30
Slide 31: Appendix 1: Key Risks
Appendix 1: Key Risks For personal use only Reduction in demand for existing product ranges There is a risk that a change in economic conditions could cause consumers to reduce their consumption of PFT products as they "trade down" to cheaper sources of food. Changes in consumer dietary preferences
Slide 32: Appendix 1: Key Risks (continued)
Appendix 1: Key Risks (continued) For personal use only Risk that the Company's growth plans cannot be effected The Company has growth plans in order to expand production beyond the Company's current capacity as outlined in this presentation. However, as with any growth plans, there are risks associ
Slide 33: Appendix 1: Key Risks (continued)
Appendix 1: Key Risks (continued) For personal use only Contractual risk The Company has contractual obligations and rights with respect to a number of agreements it is a party to. These agreements may include provisions which allow for termination for convenience or otherwise. No assurance can be g
Slide 34: Appendix 1: Key Risks (continued)
Appendix 1: Key Risks (continued) For personal use only Insurance risks The Company insures its operations in accordance with industry practice. However, in certain circumstances, the Company's insurance may not be of a nature or level to provide adequate insurance cover. The occurrence of an event
Slide 35: Appendix 1: Key Risks (continued)
Appendix 1: Key Risks (continued) For personal use only Climate change risks Climate change risks particularly attributable to the Company include: • the emergence of new or expanded regulations associated with the transitioning to a lower-carbon economy and market changes related to climate change
Slide 36: Appendix 2: Summary of Corporate Mandate Agreement
For personal use only Appendix 2: Summary of Corporate Mandate Agreement 36
Slide 37: Appendix 2: Summary of Corporate Mandate Agreement
Appendix 2: Summary of Corporate Mandate For personal use only Agreement The Company has entered into a Corporate Mandate Agreement with Prenzler Group Pty Limited (ABN 77 621 100 730) (the Lead Manager) pursuant to which it has appointed Prenzler as the Lead Manager. Pursuant to the Corporate Manda
Slide 38: Appendix 3: Foreign Selling Restrictions
For personal use only Appendix 3: Foreign Selling Restrictions 38
Slide 39: Appendix 3: Foreign Selling Restrictions
Appendix 3: Foreign Selling Restrictions For personal use only This presentation does not constitute an offer of Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Shares may not be offered or sold, in a
Slide 40: About Pure Foods Tasmania (PFT)
For personal use only About Pure Foods Ta sm an i a (PFT) Pure Foods Tasmania Pty Ltd was formed in 2015 with the aim to enhance and promote Tasmania’s premium food and beverage businesses. PFT’s strategy is to develop new premium products within our existing brands and in the plant-based food marke
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