Noumi Limited · ASX:NOU
Noumi — UBS Food and Agribusiness Conference 2018
48 slides from Noumi's conference presentation, Nov 27, 2018
Slide 1: Presentation – UBS Food and Agribusiness
Freedom Foods Group Presentation – UBS Food and Agribusiness Rory J F Macleod, Managing Director & CEO November 2018
Slide 2: Important Information
Important Information This presentation is provided for information purposes only. The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial situation or needs of any particular investor
Slide 3: 3 Key Pillars to our Strategy
3 Key Pillars to our Strategy We have been focused on leveraging our strengths Capability Innovation Markets 2 3
Slide 4: Sales Performance
Sales Performance FY 2018 FY 2018 SALES BY SALES CHANNEL $353 MILLION Export NET SALES BY BUSINESS GROUP 15% Industrial Seafood 7% Nutritionals Retail 4% Contract 4% 11% Grocery (Australia) Food Service 59% 8% Dairy Cereal & Beverages Snacks 40% 29% GROWTH RATES FY 18 % VS FY 17 Export Retail Grocer
Slide 5: Driven by a focus on our brands & innovation
Driven by a focus on our brands & innovation With NPD will representing Branded sales now 60% of sales over 20% of total sales Source: Current FYTD 2019 gross sales growth vs FYTD 2018 5
Slide 6: Business Segments and Markets
Business Segments and Markets 6
Slide 7: Plant Based
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Slide 8: Key Markets
Key Markets China North America SE Asia Middle East Aust / NZ 8
Slide 9: Investing in our Capabilities
Investing in our Capabilities 9
Slide 10: Investment
Investment 132 125.8 72.6 63.1 49.6 39.4 19.9 19.1 8.4 7.2 10.2 5.2 2.2 2.46 5.1 2.8 1 1.8 0.315 0.189 0.129 1.1 0.8 2.1 0.5 2010 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016 2017 2018 capex inv Acq 10
Slide 11: Largest producer of branded and private label UHT milk in Australia
• Largest producer of branded and private label UHT milk in Australia • Complementary production sites in Shepparton and Ingleburn • Servicing Australia, NZ, China, SE Asia and Middle East 11
Slide 12: Ingleburn (Plant & Dairy)
Ingleburn (Plant & Dairy) • FY 2018, the Group relocated its Plant- Based Beverage operations from Taren Point to the new state-of-the-art UHT facility at Ingleburn in South West Sydney. • The first stage installed UHT filling capacity at Ingleburn of approximately 80 million litres per annum. • New
Slide 13: Shepparton (Dairy)
Shepparton (Dairy) • The Group is progressing with a significant capacity upgrade to its Shepparton dairy facility, with a total investment of approximately $33 million to increase total dairy milk processing capacity to 500 million litres per annum. • The expanded processing capability will provide
Slide 14: Shepparton (Nutritionals)
Shepparton (Nutritionals) • Shepparton Nutritionals capability well progressed • 1st Stage commissioning due to commence from December 18 14
Slide 15: Accelerating our Growth
Accelerating our Growth Leveraging current and emerging trends in consumption Brands
Slide 16: Led by our two master brands
Led by our two master brands 16
Slide 17: Increased Investment in our Brands
s Magazine ry 2018 Woolworths Fresh Magazine 17 uly 2018 Increased Investment in our Brands 11 1
Slide 18: Value Added Dairy Platform
Value Added Dairy Platform 18
Slide 19: Value Added Dairy Platform
Value Added Dairy Platform 19
Slide 20: Dairy Litres – All Sites
Dairy Litres – All Sites 400 350 300 Million Litres 250 200 150 100 50 0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2017 Plan 85 110 150 180 Accelerated Plan 85 145 250 350 • Growth from category demand, new product development and impacts of structural change in Australia • Category demand from Australia,
Slide 21: Share captured within 5 months of UHT Dairy category
Manufacturer Value Share (RSV) of White Milk – Australian Weighted Grocery FYT 11.4% share captured within 5 months of UHT Dairy category Source: IRI Data Financial YTD to 28/10/18 21
Slide 22: + 60 Million Packs in 2018
• The AO Kids Milk product has continued its strong growth trajectory, with the product now the largest imported kid’s milk brand in China. • Installation of high speed 200ml capacity at its Shepparton operation to provide for volume demand forecast in excess of 60 million packs in calendar year 201
Slide 23: Nature
naaure
Slide 24: 24
24
Slide 25: JLL: Investment on consumer activities
JLL: Investment on consumer activities 25
Slide 26: A2 Protein & Yoghurt Big bets in short term in China
A2 Protein & Yoghurt Big bets in short term in China Kid's Milk A2 Protein Milk Yoghurt AO A2 AO ambient Protein FC yoghurt 250ml planned for Prisma launch early metallic to be 2019 launched in Nov 2019 26
Slide 27: Today in Dairy
Today in Dairy freedom cxou» Sau) ©. 2 MAKING FOOD BETTER
Slide 28: Tomorrow - Valuing Adding Dairy Ingredients
Tomorrow - Valuing Adding Dairy Ingredients High Value Ingredients Sports Nutrition Infant + Adult Nutrition Drinking On-the-go Sports Packed Yoghurt Nutrition Cream Whey Protein $200 Protein Isolate Lactoferrin & $50 Value added Whey Protein -lactalbumin Isolate $25-$35 Using Fat milk / fat $12 $4
Slide 29: Vital Strength – Performance Nutrition
Vital Strength – Performance Nutrition • The Vital Strength brand is recognised as a leader in high quality nutrition products, sold through retail grocery, pharmacy and fitness retailers in Australia. 29
Slide 30: Crankt Protein Brand
Crankt Protein Brand • The Crankt Protein range is sold through petrol and convenience, fitness retailers and retail grocery in Australia and New Zealand. • The Crankt brand provides for an everyday mainstream consumer proposition, aligned to the Freedom Foods Vital Strength brand which is positione
Slide 31: Australia’s Own Infant Nutrition
Australia’s Own Infant Nutrition A clear brand positionin The only Australian owned, made a 31
Slide 32: Largest Australian Dairy Farming Operation
Largest Australian Dairy Farming Operation Perich, Moxey Family’s and FFG Largest Single site Dairy, Moxey Farms 32
Slide 33: Plant Based Beverages
Plant Based Beverages 33
Slide 34: Australia’s Own
Australia’s Own AUSTRALIAS =SOWN ORGANIC ORGANIC ORGANIC ORGANIC ORGANIC ORGANIC ALMOND SOY RICE ALMOND COCONUT SOY ORIGINAL ORIGINAL ORIGINAL Al UNSWEETENED UNSWEETENED UNSWEETENED freedom csou» Sai. -e MAKING FOOD BETTER
Slide 35: Strong growth in the high margin food service channel with MilkLab
• Strong growth in the high margin food service channel with MilkLab • expanding the range of nut based beverage products under the MilkLab brand. • MilkLab. MilkLab has secured ranging in key coffee chains including Starbucks in Malaysia. • The MilkLab brand has the potential to be a leading global
Slide 36: Innovation in Plant Beverages
Innovation in Plant Beverages Consistent with its strategy to be a leading innovator in plant-based beverages, during the second half of FY 2018, the Group successfully launched the first pea protein milk in Australia, “Like Milk”, as well as 99% sugar free flavoured almond milks in 1 litre plastic
Slide 37: Cereal & Snacks
Cereal & Snacks 37
Slide 38: ines
e— ines GRAIN FLAKES ‘é. GRAIN FLIES
Slide 39: Now
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Slide 40: Turbo Charge Snacking
Turbo Charge Snacking 40
Slide 41: Disrupt Mainstream Cereal & Bars
Mainstream Launch Disrupt Mainstream Cereal & Bars 41
Slide 42: Share captured within 5 months of Breakfast Cluster & Muesli
Branded Value Share (RSV) of Clusters & Muesli – Coles Group Scan FYTD** 16.2% share captured within 5 months of Breakfast Cluster & Muesli category in Coles Source: Nielsen Direct Data Explorer Web Financial YTD to 13/11/18 42
Slide 43: Leading Brand on Tmall International
Leading Brand on Tmall International 43
Slide 44: #7 selling food brand, #5 most pre-ordered brand
#7 selling food brand & #5 most pre-ordered brand on Singles Day on TMall Global JV announced at CIIE to further accelerate Arnold’s Farm offline 44
Slide 45: TheLand – Part of Alibaba Group
TheLand – Part of Alibaba Group • TheLand will distribute Arnolds Farm exclusively across online and offline Channels in China • Current distribute range of dairy, water and beef products through 25 provinces across China • 75% owned by Alibaba, with access to deep data capability and VIP consumers
Slide 46: More Branded Innovation in FY 2019
More Branded Innovation in FY 2019 46
Slide 47: Outlook
Outlook • The Group is increasingly well positioned to strategically build into a major global food and beverage business with scale in key food and beverage platforms from key markets and channels in Australia / New Zealand, China, SE Asia and North America. • As outlined in August 2018, the Group
Slide 48: ‘oon beter tee GROUP
‘oon beter tee GROUP