Wingara Ag Ltd. · ASX:WNR
Wingara — FY2020 Earnings Presentation
33 slides from Wingara's earnings presentation, Jun 1, 2020
Slide 1: Financial Year 2020 Results Presentation
Financial Year 2020 Results Presentation June 2020 We connect primary producers to the global market efficiently through our protein supply chain. Unlocking value in the protein supply chain | Page 1
Slide 2: Wingara AG (ASX.WNR) – A diversified platform
Wingara AG (ASX.WNR) – A diversified platform Sustainable fodder output in second half FY 2020 With the completion of WNR’s fodder accumulation program in Q4 FY20, export volumes rose steadily to just over 14,000 MT for the quarter. The output level in Q4 is sustainable based on current inventory an
Slide 3: FY 2020 Annual Results Update
FY 2020 Annual Results Update Page 3
Slide 4: FY 2020 - Highlights
FY 2020 - Highlights WNR focused on restructuring Austco Polar’s business in the first half of FY 2020 and delivered substantial asset value gain through the sale and lease back transaction. The company then concentrated on fodder accumulation and export in the second half, with JC Tanldoen reaching
Slide 5: Increase in Export Hay Volumes Driving Revenue Growth
Increase in Export Hay Volumes Driving Revenue Growth • In FY 2020 export sales formed a far greater share of total volumes JC Tanloden Hay Volumes Higher export volumes have driven revenue growth in FY20 than domestic sales, resulting in higher average prices and greater due to their higher value p
Slide 6: Stronger Balance Sheet
Stronger Balance Sheet • The sale & leaseback of the Austco Polar property resulted in a strategic Net Debt1 Significant reductions in net debt in FY deleveraging of WNR’s balance sheet while adding Austco Polar’s 2020 due to repayment of debt from 30.0 operating business to WNR at less than 2 times
Slide 7: WNR Overview
WNR Overview Wingara AG Ltd (WNR.ASX) owns and manages mid-stream assets within the protein supply chain based on a ‘tolling model’ concept capturing throughput from accredited export facilities. The company specialises in the processing and marketing of high-quality Australian agricultural products
Slide 8: WNR’s Markets
WNR’s Markets JC Tanloden and Austco Polar form key parts of the Australian agriculture industry’s supply chain and export capabilities for protein and fodder products – both which have grown significantly over the past 5 years Australian Protein Exports • Export markets for proteins & fodder: $13 b
Slide 9: Track Record of Key Performance Metrics
Track Record of Key Performance Metrics Total Revenue EBITDA 7.5* 4.2* A$m A$m 35.1 29.1 4.7 3.3 8.7 10.8 0.6 1.1 FY 2017 FY 2018 FY 2019 FY 2020 FY 2017 FY 2018 FY 2019 FY 2020 * Includes one-off $4.24m gain on sale of Austco property. Gross Margin Shareholders’ Funds A$m 50.8% 50.9% 15.1 16.4 47.4
Slide 10: Results Summary
Results Summary 1H FY18 2H FY18 1H FY19 2H FY19 1H FY20 2H FY20 30-Sep-17 31-Mar-18 30-Sep-18 31-Mar-19 30-Sep-19 31-Mar-20 Revenue (million) $6.41 $4.46 $14.72 $14.40 $15.01 $20.04 EBITDA (million) $0.21 $0.87 $2.76 $2.00 $1.33 $1.96 NPAT (million) ($0.21) ($0.22) $1.31 ($0.40) $1.43 ($0.64) Net As
Slide 11: Results Summary by Segment
Results Summary by Segment FY 2019 FY 2020 JC Austco JC Austco $ Millions Corporate Total $ Millions Corporate Total Tanloden Polar Tanloden Polar Total segment revenue 16.8 12.3 - 29.1 Total segment revenue 21.7 13.3 - 35.1 Segment adjusted EBITDA 2.7 3.4 (1.3) 4.7 Segment adjusted EBITDA 3.1 1.9 (
Slide 12: JC Tanloden Update
© )CTanloden JC Tanloden Update Page 12
Slide 13: JC Tanloden – Services and Key Markets
JC Tanloden – Services and Key Markets We purchase, process and transport our high quality produce to our domestic and global customers. Revenue is generated via a tolling model where fees charged are dependent on the grade of the hay. Typically consistent in terms of margin which is based on a cost
Slide 14: JC Tanloden – Hay Volumes
JC Tanloden – Hay Volumes • Record quarter for export fodder volumes of 14,279 MT achieved in Q4 Half of Q2 FY19 Q4 FY20 - Record FY20 fodder volume was quarter for fodder 20 sold domestically exports • The second half of FY 2020 saw JC Tanloden achieve its greatest 18 production levels of export ha
Slide 15: JC Tanloden – Results Summary
JC Tanloden – Results Summary JC Tanloden Revenue • The second half of FY 2020 saw JC Tanloden achieve its highest 21.7 production levels of export hay since inception 16.8 Revenue (A$m) • Despite a decrease in full year hay volumes, JC Tanloden’s FY 2020 10.8 revenue increased with improved output
Slide 16: JC Tanloden – Revenue Analysis
JC Tanloden – Revenue Analysis Revenue & Cost per tonne WNR focuses on ensuring an acceptable gross margin is • JC Tanloden’s revenue growth in the second half of FY 2020 was earned on each tonne of hay sold primarily driven by a significant increase in higher export volumes $600 $500 • Sufficient h
Slide 17: JC Tanloden – Margin Analysis
JC Tanloden – Margin Analysis JC Tanloden Gross Margin • Gross margins were negatively impacted in the first half of the financial year as WNR was unable to increase output volume to 51% 51% 50% 41% 43% compensate for higher hay purchase prices Gross Margin (%) 37% • In 2H FY20 WNR was able to recov
Slide 18: JC Tanloden – Cost Analysis
JC Tanloden – Cost Analysis • Hay purchasing costs per tonne increased significantly at the start of 2019 and have remained high into 2020 $400 • Hay prices increased markedly from an average of $126 per tonne $350 in September 2018 to an average of $339 per tonne in February $300 2019 and have rema
Slide 19: Austco Polar Update
Austco Polar Update Page 19
Slide 20: Austco Polar – Services and Key Markets
Austco Polar – Services and Key Markets Established in 1987, Austco Polar Cold Storage owns and operates a cold storage facility which specialises in temperature controlled facilities, blast freezing, storage and distribution for domestic and international clients. Services Provided Australian Prote
Slide 21: Austco Polar – Blast Carton Volumes
Austco Polar – Blast Carton Volumes • Following record volumes in Q3 FY20 (following investment in blast Record quarter for blast cartons = freezing capacity), volumes were significantly lower in Q4 FY20 800 712,118 • 517,510 cartons in Q4 FY20 still equated to the third best quarter 700 under WNR’s
Slide 22: Austco Polar – Results Summary
Austco Polar – Results Summary Austco Revenue • Austco Polar has proven to be a valuable investment for the Group since its acquisition in April 2018 7.3 6.7 6.0 • Record half of revenue of $7.3 million achieved in 2H FY20, with total 5.7 revenue for FY 2020 8% higher than FY 2019 Revenue (A$m) • Bl
Slide 23: Growth Strategy and Outlook
Growth Strategy and Outlook Page 23
Slide 24: WNR’s Growth Strategy
WNR’s Growth Strategy Wingara is well positioned to capitalise on expected increased customer demand over the next five years 01 • Combined throughput capacity of up to 250,000 MT per annum across Epsom, Raywood and Horsham once Horsham is built (currently 110,000 MT) Continue to expand • Storage ca
Slide 25: A Sustainable Agricultural Products Platform
A Sustainable Agricultural Products Platform WNR has built a sustainable platform for processing and marketing agricultural products – more products can be added at the appropriate time For Primary 1 2 3 Producers For Customers Process raw materials Logistics to move Provide insights and to products
Slide 26: COVID-19
COVID-19 • The impact of COVID-19 has been limited for WNR, with some small impacts affecting the final quarter in FY 2020 • The most significant impact on the business was through the slowdown at ports, reduction in scheduled services by shipping lines and impact to our export clients at Austco Pol
Slide 27: FY21 Outlook
FY21 Outlook Despite the current global economic environment, we see continued growth in fodder markets with demand from key export customers growing. We also expect volumes at Austco to grow along with an increase in earnings Division Strategic Focus Areas Commentary • Sustained throughput of ~15,0
Slide 28: Financial Results Summary
Financial Results Summary 8 Page 28
Slide 29: Profit & Loss Statement
Profit & Loss Statement FY 2020 FY 2019 Change Statement of Profit & Loss A$M A$M % • Wingara has continued on its top line growth trajectory in FY 2020, with Revenue - Hay Sales 21.71 16.76 +30% operating revenue increasing by 20% driven by the significant increase in JC Revenue - Cold Storage & Bl
Slide 30: Balance Sheet
Balance Sheet FY 2020 FY 2019 Change FY 2020 FY 2019 Change A$M A$M % A$M A$M % Assets Liabilities Cash & equivalents 3.45 0.66 +419% Trade & other payables 6.16 3.81 +62% Trade & other receivables 2.55 1.46 +74% Lease liabilities 1.42 - - Inventories 4.10 5.36 -24% Borrowings 0.97 8.30 -88% Other c
Slide 31: Cash Flow Statement
Cash Flow Statement FY 2020 FY 2019 Change Statement of Cash Flows A$M A$M % • Increase in operating cash flows driven by increased revenue Cash flows from operations Receipts from customers 34.17 28.23 +21% • Proceeds from sale of Austco property have enabled a significant portion of Payments to su
Slide 32: Historical Summary of Financial Results
Historical Summary of Financial Results FY 20171 FY 2018 FY 2019 FY 2020 FY 20171 FY 2018 FY 2019 FY 2020 $’000 unless otherwise stated A$M A$M A$M A$M $’000 unless otherwise stated A$M A$M A$M A$M Operating results Financial position Revenue 8,687 10,763 29,120 35,058 Wingara shareholders’ funds 6,
Slide 33: We connect primary producers to the global market efficiently
We connect primary producers to the global market efficiently through our protein supply chain. wingaraag.com.au Unlocking value in the protein supply chain | Page 33