Inghams Group Ltd. · ASX:ING
Inghams — Shareholder Meeting (November 2022)
27 slides from Inghams's shareholder meeting presentation, Nov 8, 2022
Slide 1: Inghams Group 2022 Annual General Meeting ASX Release
1 8 November 2022 ASX Release INGHAMS GROUP 2022 ANNUAL GENERAL MEETING Please find attached the Chairman’s address, the CEO and Managing Director’s address, and presentation for the Inghams Group (‘Inghams’ or ‘Group’) 2022 Annual General Meeting, which is being held today at 10.00am (AEDT). As out
Slide 2: Announcement authorisation and enquiries
2 This announcement has been authorised by the Inghams Group Limited Chair, and the CEO & Managing Director. David Matthews Company Secretary Investor Enquiries Media Enquiries Brett Ward Sue Cato brett@catoandclive.com / +61 437 994 451 cato@catoandclive.com / +61 419 282 319
Slide 3: Chair & CEO and Managing Director's Addresses
3 CHAIR & CEO AND MANAGING DIRECTOR’S ADDRESSES FOR THE INGHAMS GROUP 2022 ANNUAL GENERAL MEETING (INCLUDING PRESENTATION)
Slide 4: Chair's Address
4 Chair’s Address On behalf of Inghams, I would like to acknowledge the Gadigal people of the Eora nation, on whose land we meet today. I pay my respects to their Elders past, present and emerging, and to all Aboriginal and Torres Strait Islander Peoples here today. I would like to commence my prese
Slide 5: Final dividend and underlying business outlook
5 The small final dividend that was declared reflected the significantly reduced profitability in the second half. We would expect dividends to improve as the recovery in operations and earnings that we are currently experiencing continues. Despite the market conditions that we have experienced and
Slide 6: Board re-election and remuneration review
6 This year, we also have Robert Gordon seeking re-election to the Board. Robert was last elected to the Board by shareholders in October 2019, and you will also hear from Robert a little later. Turning to a review of remuneration and our plans for FY23, starting with remuneration outcomes for FY22.
Slide 7: FY23 incentive plan changes
7 In FY23, the short-term incentive plan financial measure and performance gate will move from EBITDA pre AASB 16 to EBIT post AASB 16. While the Core Volume Sales Growth measure remains unchanged for FY23, it will be removed for FY24. You will have noted there is no resolution being tabled at this
Slide 8: Sustainability commitments: people, animals, planet
8 committed to providing a safe and empowering workplace for our teams as well as ensuring compliance across the supply chain, continuing to provide sustainable and nutritious products to our consumers, and supporting the communities where we work; • Animals - We are committed to being leaders in an
Slide 9: CEO and Managing Director's Address
9 CEO and Managing Director’s Address Thank you, Helen, and good morning, everyone. It is my pleasure to be presenting at today’s Annual General Meeting I would like to add my welcome to all those joining us today. As many of you know, Inghams is the largest integrated protein producer across Austra
Slide 10: Cost environment and pricing
10 The cost environment is a challenging one for all businesses, and our costs remain elevated, mainly driven by feed and transport. Our operational efficiency programs have helped offset some of these inflationary impacts, however they alone are not sufficient to fully offset the cost pressures exp
Slide 11: Structural underpinnings of the poultry sector
11 The poultry sector has a number of important structural underpinnings which both we and our major customers see as providing the opportunity to grow both the size and value of category, relative to other proteins. The long-standing affordability of poultry is an important factor that will underpi
Slide 12: Feed costs and operational recovery
12 We have observed something of a stabilisation in feed costs since our results in mid-August, with small declines in both wheat and soymeal pricing. Despite this, feed prices remain elevated due to tight global supply as a result of continued uncertainty surrounding production in Ukraine and relat
Slide 13: Inghams Group Limited 2022 Annual General Meeting
INGHAMS GROUP LIMITED 2022 ANNUAL GENERAL MEETING 8 NOVEMBER 2022
Slide 14: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The material in this presentation is general background information about the activities of Inghams Group Limited (Ingham’s) and its subsidiaries (Ingham’s Group), and is current at the date of this presentation, unless otherwise noted. It is information given in summ
Slide 15: Acknowledgement of Country
ACKNOWLEDGEMENT OF COUNTRY WE ACKNOWLEDGE THE GADIGAL PEOPLE OF THE EORA NATION, ON WHOSE LAND WE MEET TODAY. WE PAY OUR RESPECTS TO THEIR ELDERS PAST, PRESENT AND EMERGING, AND TO ALL ABORIGINAL AND TORRES STRAIT ISLANDER PEOPLES HERE TODAY. 3
Slide 16: Agenda
AGENDA 1 Chair’s Address Helen Nash 2 CEO & Managing Director’s Address Andrew Reeves 3 Formal Business of the Meeting Helen Nash 4 General Business Helen Nash 4
Slide 17: Board of Directors
BOARD OF DIRECTORS Helen Nash Robyn Stubbs Non-Executive Chair Non-Executive Director Chair of Nominations Committee Chair of the People & Remuneration Committee, Member of the Risk & Sustainability Committee Andrew Reeves Rob Gordon Chief Executive Officer & Managing Non-Executive Director Director
Slide 18: Executive Leadership Team
EXECUTIVE LEADERSHIP TEAM Andrew Reeves Gary Mallett Edward Alexander CEO & Managing Director Chief Financial Officer Chief Executive, New Zealand Anne-Marie Mooney David Matthews Art Lankford Chief Operations Officer General Counsel & Company Secretary Chief Agribusiness Officer Mark Powell Seb Bra
Slide 19: Chair's Address
CHAIR’S ADDRESS HELEN NASH
Slide 20: Chair's Address
CHAIR’S ADDRESS § Thank you to Peter Bush § Performance overview § Our people § Strength of our value chain § Board changes § Remuneration update § ESG § Looking ahead 8
Slide 21: CEO & Managing Director's Address
CEO & MANAGING DIRECTOR’S ADDRESS ANDREW REEVES
Slide 22: Highly Diversified Australia & New Zealand Network
HIGHLY DIVERSIFIED AUSTRALIA & NEW ZEALAND NETWORK LARGEST POULTRY COMPANY ACROSS AUSTRALIA AND NEW ZEALAND WITH SIGNIFICANT MARKET SHARE IN BOTH COUNTRIES Our geographically dispersed network across Australia and New Zealand is designed to optimise national supply chains, minimise agricultural and
Slide 23: Vertically Integrated Operating Model
VERTICALLY INTEGRATED OPERATING MODEL OPTIMISING VALUE FROM OUR OPERATING MODEL THROUGH INTEGRATED PLANNING AND OPERATIONAL EXCELLENCE § Enables us to create value and realise efficiencies across a highly complex and large-scale supply chain § Balance and operational excellence are key to margin cap
Slide 24: Group FY22 Financial Summary
GROUP FY22 FINANCIAL SUMMARY RECOVERY COMMENCED IN Q4 FOLLOWING A CHALLENGING YEAR § FY22 impacted by COVID-19 and global events FY22 FY21 Variance % - COVID-19 related impacts on chicken supply/demand Group Core Poultry Volume (kt) 465.5 446.9 18.6 4.2 dynamics, COVID-related absenteeism, supplier
Slide 25: FY22 Sustainability Performance
FY22 SUSTAINABILITY PERFORMANCE MAKING A POSITIVE DIFFERENCE TO OUR PEOPLE AND CONSUMERS, ANIMALS AND THE PLANET Safety – improved Increased representation of Contributed to more 100% of sites LTIFR by 3% to 2.8 women in senior leadership than 1 million meals achieved A or AA GFSI and improved TRIFR
Slide 26: Strategy Update
STRATEGY UPDATE FOCUS ON LEADING THE CATEGORY AND UNLOCKING ITS UNTAPPED POTENTIAL THROUGH SIX STRATEGIC PRIORITIES Growth through Category Leadership Differentiate Elevate strategic Build on and Optimise and Explore growth with consumer customer leverage our future proof our options insight & partn
Slide 27: FY23 Trading Update
FY23 TRADING UPDATE CONDITIONS CONTINUING TO IMPROVE AND PRICE INCREASES TAKING EFFECT § Q1 has seen a continuation of the operational recovery that started in the final quarter of FY22 § Sales volumes are down slightly in the first quarter versus the strong prior corresponding period § Price increa