Arborgen Holdings Limited · NZX:ARB
Arborgen — Shareholder Meeting (August 2022)
19 slides from Arborgen's shareholder meeting presentation, Aug 24, 2022
Slide 1: Annual Shareholders' Meeting 2022 Welcome
24 August 2022 Annual Shareholders’ Meeting 2022 Welcome Dave Knott Chair of the Board 1
Slide 2: Online Questions and Voting
24 August 2022 Online Questions • To submit a question during the meeting Q&A − Select the Q&A tab on the right of your screen at anytime − Type your question into the field and press send • For help − Refer to the virtual meeting guide − Use the chat function; or − Call Computershare helpline 0800-
Slide 3: Introduction and Programme
24 August 2022 Introduction Paul Smart George Adams Andrew Baum Alex Brown Thomas Avery Ozey Horton Sharon Pam Ludher-Chandra Wardenburg Programme • Chief Executive’s review • Chair’s address • Shareholders’ questions • Formal resolutions 3
Slide 4: CEO's Review: Our Strategic Focus
24 August 2022 CEO’s Review Our Strategic Focus • Core high-growth markets in the US South and Brazil • Transformation of forest productivity with advanced genetics • Our competitive positioning is supported by: − decades of proprietary R&D investment − strong production capability and supply pipeli
Slide 5: March 2022 YE Results
24 August 2022 March 2022 YE Results Despite ongoing pandemic and supply chain challenges, we executed the Company’s advanced genetics strategy and recorded our highest level of sales of Mass Control Pollinated (MCP®) products in the US March 2022 YE Results continued • Revenue from continuing opera
Slide 6: March 2022 YE Results continued
24 August 2022 March 2022 YE Results continued • Net earnings from continuing operations of $1.7m − up from $1.5m in the prior period • Adjusted US-GAAP EBITDA result of $10.1m (excluding public company costs of $1m and Other Significant Items) − 36% higher than the prior period • Net cash from oper
Slide 7: FY22 Seedling Sales and Advanced Genetics Adoption
24 August 2022 FY22 Seedling Sales • Sales in the US and Brazil US Advanced Genetics − 362m units, up 3m Sales Volumes − 284m sold in the US • 258m pine • 42% of these were advanced genetics − 78m sold in Brazil • US sales down 10m due to disruptions caused by Covid-19 − Advanced genetics sales up 2
Slide 8: Our Product Portfolio
24 August 2022 Our Product Portfolio We are advancing genetics through breeding Open Pollinated: OP Advanced, Select and Elite Produced from best mother and fertilized with pollen of an unknown father tree Elite Genetics Products MCP®: Advanced, Select, Elite, 2.0 Seedlings produced from crossing se
Slide 9: Value Proposition and Market Leader
24 August 2022 Value Proposition • Advanced genetics offer compelling benefits including − faster growth rates − higher yields of wood per acre − 30 - 40% more high value sawtimber which typically sells for 2-4 times more than pulpwood − improved resistance to disease and stress − better straightnes
Slide 10: Sales and Marketing Capability; MCP Seed Supply
24 August 2022 Sales and Marketing Capability • Sales and marketing efforts are integral to customer conversion − Most industrial customers are committed to MCP − Focus is on private landowners • Customer acquisition and conversion initiatives include − financial models − field tours of mature stand
Slide 11: MCP Seed Supply continued; Brazil
24 August 2022 Advanced Genetics MCP Seed Supply continued • Freeze event combined with high winds during pollination caused damage to flowers in Eastern orchards − this impacts cones and seed to be harvested in late calendar 2023 (for FY25 seedling sales) − isolated event with no damage to the orch
Slide 12: Brazil - Pine and Eucalyptus
24 August 2022 Brazil - Pine • Pine sold out for 2023 fiscal year • Sales negotiations for 2024 fiscal year underway • Prices are increasing well ahead of inflation and margins are increasing • New Canohinas nursery sales are ahead of projections • Sales of proprietary product in fiscal 23 to repres
Slide 13: Carbon Markets and Summary
24 August 2022 Carbon Markets • Use of forestry to sequester carbon is an important element in addressing global warming • In the US, new forests are being planted on pasture and farmland • We have executed agreements with two well-funded, experienced companies to supply them with pine (including MC
Slide 14: Summary continued; Chair's Address
24 August 2022 Summary continued FY24 and Beyond • Looking ahead − increased MCP seed supply − lower MCP seed cost − projected sales growth in US forestry markets − new carbon seedling supply contracts Projected to drive solid earnings growth • We have the organisation, people, products and strate
Slide 15: Strategic Review; Growth and Strategic Initiatives
24 August 2022 Strategic Review • Review considered all options to unlock value • further investment in the business • possibility of a US listing • full sale of the company • asset sales • The process resulted in the sale of the Australia and New Zealand businesses for NZ$22.25m • Freed up capital
Slide 16: Investments; FY2023 and Beyond
24 August 2022 Investments • Sale of Australasian business has strengthened our balance sheet • Greater flexibility to pursue investments in targeted growth markets • We are being very selective and careful with spend • Commitment made to − expand in-house container capacity across 2 sites from 10 t
Slide 17: FY2023 and Beyond continued
24 August 2022 FY2023 and Beyond continued Brazil • Underlying markets are very strong • New pulp mills and charcoal markets driving domestic demand for eucalyptus and softwood • Brazil’s earnings are projected to be well over $1m FY23 US GAAP EBITDA • We expect US GAAP EBITDA in the current fiscal
Slide 18: Questions; Resolutions
24 August 2022 Questions Please raise your hand and wait for the microphone State your name and whether you are a shareholder or proxy holder Resolutions 18
Slide 19: Resolutions
24 August 2022 Resolutions Resolution 1 To re-elect George Adams as a Director Resolution 2 To authorise the Directors to fix Deloitte’s fees and expenses as the Company’s Auditor for the year ended 31 March 2023 19
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