Duxton Farms Limited · ASX:DBF
Duxton Farms — Duxton Broadacre Farms — Shareholder Meeting (November 2018)
45 slides from Duxton Farms's shareholder meeting presentation, Nov 28, 2018
Slide 1: Duxton Broadacre Farms
For personal use only DUXTONBROADACREFARMS 28 November 2018
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation was prepared by Duxton Capital (Australia) No representation or warranty, either expressed or implied, FINANCIAL DATA Pty Ltd [ACN: 164 225 647; AFSL no. 450218] (“DC Australia”) is provided in relation to the accuracy, completeness or as Investment
Slide 3: Contents
CONTENTS For personal use only The Team Chairman’s Address Operational Update Key Resolutions Key Contact
Slide 4: The Team at Duxton Broadacre Farms
The Team at Duxton Broadacre Farms DUXTON BROADACRE THE BOARD For personal use only ED PETER TONY HAMILTON STEPHEN DUERDEN MARK HARVEY WADE DABINETT Chairman of the Board Managing Director Non-Executive Director Independent Director/Deputy Chair Independent Director BRYAN GOLDSMITH WILL BRENNAN DONA
Slide 5: Contents
CONTENTS For personal use only The Team Chairman’s Address Operational Update Key Resolutions Key Contact
Slide 6: Chairman's Address
Chairman’s Address DUXTON BROADACRE For personal use only 1 Highlights of year ended 30 June 2018 2 Vision for the future 3 Investment environment 6
Slide 7: Chairman's Address: Highlights of year ended 30 June 2018
Chairman’s Address DUXTON BROADACRE For personal use only 1 Highlights of year ended 30 June 2018 2 Vision for the future 3 Investment environment 7
Slide 8: Listed February 2018, raised $21.1 million
• Listed 8 February 2018, at $1.50/share • Raised $21.1 million (of $22 million maximum) For personal use only 8
Slide 9: Irrigation development and water entitlements
Chairman’s Address DUXTON BROADACRE • Irrigation development of For personal use only Walla Wallah and Yarranlea fast-tracked due to drier conditions in the winter of 2018. • 210ha developed at Walla Wallah • 245ha developed at Yarranlea • 1,173ha total row-crop- capable- area post development • In
Slide 10: Property valuations
Chairman’s Address DUXTON BROADACRE For personal use only PROPERTY Valuation at March 2017* Valuation at June 2018 Yarranlea $7,435,000 $7,850,000 Merriment $2,000,000 $2,600,000 Cowaribin $2,100,000 $2,800,000 Walla Wallah $7,000,000 $8,000,000 Timberscombe $24,000,000 $28,750,000 Kentucky $15,800,
Slide 11: Cropping area, yield, production and price
Chairman’s Address DUXTON BROADACRE For personal use only Area (ha) Yield (t/ha) Production (t) Price ($/t) Prospectus FY2018 Prospectus FY2018 Prospectus FY2018 Prospectus FY2018 Barley 1,251 1,251 3.00 t/ha 3.23 t/ha 3,753 4,037 $250 $349 Canola 4,722 4,722 2.20 t/ha 0.97 t/ha 10,388 4,589 $605 $5
Slide 12: Profit & Loss extract
Chairman’s Address DUXTON BROADACRE For personal use only PROFIT & LOSS (extract) Adjusted Earnings* Statutory Earnings 30 June 2018 30 June 2018 30 June 2018 Gross profit plus cropping costs $11,403,052 $11,403,052 Cropping costs ($6,452,928) ($7,790,082) Listing costs - ($375,684) Other costs ($3,
Slide 13: Chairman's Address: Vision for the future
Chairman’s Address DUXTON BROADACRE For personal use only 1 Highlights of year ended 30 June 2018 2 Vision for the future 3 Investment environment 13
Slide 14: Duxton Broadacre Farms overview
Broadacre farming with economies of scale, diversification, flexibility and active management AUSTRALIAN BROADACRE DUXTON BROADACRE FARMS (“DBF”) For personal use only The Company actively manages an aggregation of broadacre farms in Australia. Risk is mitigated and returns are optimised through own
Slide 15: Chairman's Address: Investment environment
Chairman’s Address DUXTON BROADACRE For personal use only 1 Highlights of year ended 30 June 2018 2 Vision for the future 3 Investment environment 15
Slide 16: Why Australia
Australia has low sovereign risk and comparatively productive, yet mis-priced land AUSTRALIAN BROADACRE WHY AUSTRALIA For personal use only Sources: http://www.fao.org/faostat/en/#rankings/countries_by_commodity // http://www.fao.org/faostat/en/#data/QC 16 Note: this is an animation for presentation
Slide 17: Australian land comparison per US$100m invested
Australia has low sovereign risk and comparatively productive, yet mis-priced land AUSTRALIAN BROADACRE For personal use only $100m US invested Average Land Price ($USD) $2,117 $24,680 $23,340 $25,404 $10,106 Ha Purchased 47,237 4,052 4,284 3,936 9,895 5-year average production (t/ha) 1.96 7.94 8.91
Slide 18: Farmland undervalued due to drought and AUD
Australian farmland is now undervalued due to drought conditions and a strengthening of the AUD AUSTRALIAN BROADACRE WHY AUSTRALIA For personal use only DRY WET DROUGHT WET DRY • Australia has a variable climate and can go through periods of flood and 300 drought. • Broadacre cropping is largely dry
Slide 19: Grain price retracement sensitivity
Australian farmland is now undervalued due to drought conditions and a strengthening of the AUD AUSTRALIAN BROADACRE WHY AUSTRALIA For personal use only • We consider grain prices to be close to the bottom of the cycle. 2018 Achieved 10% 25% 30% 50% 75% 100% • If wheat prices were to return to the Y
Slide 20: Emerging middle class in Asia Pacific
Australia is a net exporter and expects growing global demand for broadacre production AUSTRALIAN BROADACRE EMERGING MIDDLE CLASS For personal use only ASIA PACIFIC [up 514.9%] 2009: 525 million 2030: 3,228 million Sources: 2009, www.outline-world-map.com // Kharas, H. 2010, Working Paper No. 285: ‘
Slide 21: Indonesia growing population and middle class
Australia is a net exporter and expects growing global demand for broadacre production AUSTRALIAN BROADACRE INDONESIA GROWING POPULATION AND MIDDLE CLASS For personal use only INDONESIA 2004: 2 million 2030: 120 million Sources: 2009, www.outline-world-map.com // Kharas, H. 2010, Working Paper No. 2
Slide 22: GDP and food consumption
Australia is a net exporter and expects growing global demand for broadacre production AUSTRALIAN BROADACRE INDONESIA GROWING POPULATION AND MIDDLE CLASS For personal use only GDP and food consumption 4000 • As nations become wealthier, typically 3500 red meat consumption increases. • It is likely t
Slide 23: Food consumption by income grouping
Australia is a net exporter and expects growing global demand for broadacre production AUSTRALIAN BROADACRE FOOD CONSUMPTION BY INCOME GROUPING (180 COUNTRIES, IN 2013) For personal use only QUINTILE OF GDP PER CAPITA IN 2013 POOREST NATIONS RICHEST NATIONS 2018 Achieved Yields 1 2 3 4 5 Food type (
Slide 24: Arable land per capita
Australia is a net exporter and expects growing global demand for broadacre production AUSTRALIAN BROADACRE ARABLE LAND PER CAPITA WORLD 0.26 ha 1980 For personal use only 0.19 ha 2015 EU NORTH AMERICA 0.26 ha 1980 0.93 ha 1980 0.55 ha 2015 0.21 ha 2015 LATIN AMERICA MIDDLE EAST & NORTH AFRICA 0.33
Slide 25: Global arable land per capita
Australia is a net exporter and expects growing global demand for broadacre production AUSTRALIAN BROADACRE GLOBAL ARABLE LAND PER CAPITA For personal use only 0.17 ha 2050 0.18 ha 2040 0.20 ha 2030 Sources: 2009, www.outline-world-map.com // Kharas, H. 2010, Working Paper No. 285: ‘The emerging mid
Slide 26: Take home message
TAKE HOME MESSAGE For personal use only 1 Real underlying assets 2 Exposure to Australian agriculture 3 Highly qualified and experienced operational and management teams 4 Uncorrelated returns and a potential inflation hedge 5 Mispriced land present opportunity for potential capital growth over time
Slide 27: Contents
CONTENTS For personal use only The Team Chairman’s Address Operational Update Key Resolutions Key Contact
Slide 28: Operational update
Operational update DUXTON BROADACRE ASX Listing • 8 February 2018 For personal use only Developments Acquisition and Integration • Irrigation development initiated • Yarranlea property • Groundwater acquisitions • Wyalong property • Bore drilling AUG 2017 OCT 2017 DECEMBER 2017 FEB 2018 APR 2018 JUN
Slide 29: Operational update: cropping reforecast
Operational update DUXTON BROADACRE For personal use only Area (ha) Yield (t/ha) Production (t) Price ($/t) Prospectus FY2018 Prospectus FY2018 2019 Prospectus FY2018 2019 Prospectus FY2018 2019 2019 October Reforecast October October October Reforecast Reforecast Reforecast Barley 1,251 1,251 4,793
Slide 30: Boorala Acquisition summary
Duxton Broadacre Farms – Boorala Acquisition ACQUISITION SUMMARY ACQUISITION SUMMARY For personal use only Duxton Broadacre Farms is pleased to announce it has contracted the acquisition of the “Boorala” asset on a walk-in walk-out basis including improvements, plant, equipment and livestock for A$1
Slide 31: For personal use only
For personal use only 31
Slide 32: For personal use only
For personal use only 32
Slide 33: Contents
CONTENTS For personal use only The Team Chairman’s Address Operational Update Key Resolutions Key Contact
Slide 34: Item of Business 1: Consideration of Financial Reports
ITEM OF BUSINESS 1: Consideration of Financial Reports of the Directors and Auditors DUXTON BROADACRE Resolution For personal use only To receive and consider the Financial Report, Directors’ Report and Independent Auditor’s Report for the financial period ended 30 June 2018. The relevant documents
Slide 35: Resolution 1: Adoption of the Remuneration Report
RESOLUTION 1: Adoption of the Remuneration Report DUXTON BROADACRE Resolution For personal use only To consider, and if thought fit, to pass the following resolution as a non-binding resolution: “To adopt the Remuneration Report as contained in the Company’s Annual Financial Report for the financial
Slide 36: Resolution 2: Election of Director – Ed Peter
RESOLUTION 2: Election of Director – Ed Peter DUXTON BROADACRE Resolution For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for the purposes of Listing Rule 14.5 and all other purposes, Ed Peter, who having been appointed as a D
Slide 37: Resolution 3: Election of Director – Stephen Duerden
RESOLUTION 3: Election of Director – Stephen Duerden DUXTON BROADACRE Resolution For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for the purposes of Listing Rule 14.5 and all other purposes, Stephen Duerden, who having been ap
Slide 38: Resolution 4: Election of Director – Wade Dabinett
RESOLUTION 4: Election of Director – Wade Dabinett DUXTON BROADACRE Resolution For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for the purposes of Listing Rule 14.5 and all other purposes, Wade Dabinett, who having been appoin
Slide 39: Resolution 5: Election of Director – Mark Harvey
RESOLUTION 5: Election of Director – Mark Harvey DUXTON BROADACRE Resolution For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for the purposes of Listing Rule 14.5 and all other purposes, Mark Harvey, who having been appointed
Slide 40: Resolution 6: Appointment of Auditor
RESOLUTION 6: Appointment of Auditor DUXTON BROADACRE Resolution For personal use only To consider and, if thought fit, to pass following resolution as a special resolution: “That, for the purposes of Section 327B of the Corporations Act and for all other purposes, Deloitte, having been nominated an
Slide 41: Resolution 7: Equity Securities to Wade Dabinett
RESOLUTION 7: Approval of issue of Equity Securities to Wade Dabinett DUXTON BROADACRE Resolution For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for the purposes of Listing Rule 10.11 and for all other purposes, Shareholders
Slide 42: Resolution 8: Equity Securities to Mark Harvey
RESOLUTION 8: Approval of issue of Equity Securities to Mark Harvey DUXTON BROADACRE Resolution For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for the purposes of Listing Rule 10.11 and for all other purposes, Shareholders ap
Slide 43: Resolution 9: Approval of issue under Listing Rule 7.1A
RESOLUTION 9: Approval of issue of Equity Securities for the purpose of ASX Listing Rule 7.1A DUXTON BROADACRE Resolution For personal use only To consider and, if thought fit, to pass the following resolution as a special resolution: "That, for the purposes of Listing Rule 7.1A and for all other pu
Slide 44: Resolution 10: Non-Executive Director total remuneration
RESOLUTION 10: Non-Executive Director total remuneration DUXTON BROADACRE Resolution For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for the purposes of Listing Rule 10.17 and clause 53 of the Constitution, the maximum aggrega
Slide 45: Key Contacts
KEY CONTACTS For personal use only Will Brennan Duxton Capital (Australia) Portfolio Manager will.brennan@duxtonam.com +61 450 160 005 +61 8 8130 9500 Lauren Thiel Duxton Capital (Australia) Business Development lauren.thiel@duxtonam.com +61 417 834 549 +61 8 8130 9500 45
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