Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — Shareholder Meeting (March 2013)
27 slides from Australian Agricultural's shareholder meeting presentation, Mar 15, 2013
Slide 1: AACo Annual General Meeting - MD/CEO Presentation
Australian Agricultural Company Limited ABN 15 010 892 270 For personal use only AACo Annual General Meeting Managing Director/Chief Executive Officer’s Presentation ASX Announcement : 12/2013 15 March 2013 Attached is the Managing Director/Chief Executive Officer’s presentation for the Annual Gener
Slide 2: Australian Agricultural Company Limited Annual General Meeting
For personal use only AUSTRALIAN AGRICULTURAL COMPANY LIMITED ANNUAL GENERAL MEETING 15 March 2013
Slide 3: Disclaimer
DISCLAIMER For personal use only While every care has been taken in the preparation of this presentation, Australian Agricultural Company Limited (“AACo”) and each of their respective related bodies corporate and associated entities and each of their respective officers, employees, associates, agent
Slide 4: A Stronger, More Resilient Company
A STRONGER, MORE RESILIENT COMPANY For personal use only Three-year turnaround strategy complete Operationally successful Herd improvements Diversified export base Darwin abattoir to provide vertical integration Financial outcomes unsatisfactory Moving towards being a part of the global market, not
Slide 5: NPAT FY12 v NPAT FY11
$ mil Thousands For personal use only 5.0 -25.0 -15.0 -5.0 25.0 35.0 15.0 NPAT 2011 10.5 Cattle growth 10.6 Natural increases 12.0 Australian Agricultural Company Limited Attrition 5.1 Herd revaluation - SGARA (37.7) 3.0 Other valuation adj. 9.5 Crops Income Crop Growing Costs (7.0) Branded Beef Gro
Slide 6: Climate Conditions
CLIMATE CONDITIONS For personal use only Australian Agricultural Company Limited 5
Slide 7: Eastern Young Cattle Indicator
EASTERN YOUNG CATTLE INDICATOR For personal use only After a significant decline in 2012, the first weeks of 2013 have seen the EYCI recover to November 2012 levels 450 250 Thousands 400 200 350 150 Head Sum of –Head 2011- 2011 (RHS) 300 Ac/kg cwt Head Sum of –Head 2012- 2012 (RHS) Head Head Sum of
Slide 8: Herd Value Sensitivity
HERD VALUE SENSITIVITY For personal use only Eastern Trading Northern Trading Feedlot Breeding Herd Herd Herd Head @ 31 December 2012 ('000) 120 68 41 356 Average Weight @ 31 December 2012 331 LW kg 284 LW kg 524 LW kg Average Book Value @ 31 December 2012 $1.59 / LW Kg $1.83 / LW Kg $3.19 / LW Kg $
Slide 9: US Beef Cattle Herd
US BEEF CATTLE HERD For personal use only In 2012, the US continued its trend of reducing its breeding herd. Production was maintained through increased productivity, but this trend is unsustainable Australian Agricultural Company Limited Source: Daily Livestock Report 8
Slide 10: US Beef Cattle Herd
US BEEF CATTLE HERD For personal use only US Cow Inventory lowest since 1941 Australian Agricultural Company Limited Source: Daily Livestock Report 9
Slide 11: Markets: Indicative imported US 90CL beef prices
MARKETS For personal use only Indicative imported US 90CL beef prices Australian Agricultural Company Limited 10
Slide 12: Markets: US feed cattle prices
MARKETS For personal use only US feed cattle prices Australian Agricultural Company Limited 11
Slide 13: Staff and Safety
STAFF AND SAFETY For personal use only Dedicated, smart staff Doubling graduate intake this year AACo has close to 50% female employees Growing partnerships with indigenous staff and native title holders Safety culture fostered in the past three years has led to a 6% reduction in lost-time injuries
Slide 14: Five Year Goal
FIVE YEAR GOAL For personal use only Building a global, South East Asian focused, red meat supply chain, in a sustainable and innovative enterprise Australian Agricultural Company Limited 13
Slide 15: The Next Five Years
THE NEXT FIVE YEARS For personal use only A global red meat supply chain South-East Asia focussed Sustainable Innovative Australian Agricultural Company Limited 14
Slide 16: Global Context
GLOBAL CONTEXT For personal use only A growing world population – with growing demand for red meat protein Australian Agricultural Company Limited 15
Slide 17: Regional Context
REGIONAL CONTEXT Population (Mid-Scenario) (mil) For personal use only 2010 2030 Change Cambodia 14.1 17.4 19% Indonesia 239.9 279.7 14% Laos 6.2 7.8 20% Malaysia 28.4 37.3 24% Myanmar 48.0 54.3 12% Philippines 93.3 126.3 26% Thailand 69.1 73.3 6% Vietnam 87.8 101.5 13% Source: UN Beef consumption (
Slide 18: Clear Strategic Objectives
CLEAR STRATEGIC OBJECTIVES For personal use only Enhance and optimise asset utilisation Leverage Develop the strengths in northern supply management, chain genetics and logistics Build a relevant South-East Asian presence Australian Agricultural Company Limited 17
Slide 19: A Substantial Geographic Advantage
A SUBSTANTIAL GEOGRAPHIC ADVANTAGE For personal use only Darwin-Tokyo – 5400km Darwin-Seoul Long Beach-Tokyo 5500km 8800km Darwin-Saigon 3700km Long Beach-Jakarta 9000km Darwin-Jakarta 2800km Australian Agricultural Company Limited 18
Slide 20: Darwin Abattoir
DARWIN ABATTOIR For personal use only Minimising risk through vertical integration Transport and production cost savings Australian Agricultural Company Limited 19
Slide 21: Darwin Abattoir
DARWIN ABATTOIR For personal use only Australian Agricultural Company Limited 20
Slide 22: Leverage Our Strengths
LEVERAGE OUR STRENGTHS For personal use only Tighter breeder herd management resulted in our biggest herd, and best calf brandings ever. AACo Herd (‘000 head) 800 682 700 600 500 Breeding Herd 400 Trading Cattle 300 200 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Australian Agricult
Slide 23: Leverage Our Strengths: Calf Brandings
LEVERAGE OUR STRENGTHS For personal use only Calf brandings (‘000) 200.0 180.0 160.0 140.0 85.1 59.6 120.0 41.1 100.0 37.7 80.0 60.0 96.7 86.4 89.2 40.0 70.1 20.0 0.0 FY09 FY10 FY11 FY12 1H 2H Australian Agricultural Company Limited 22
Slide 24: Leverage Our Strengths
LEVERAGE OUR STRENGTHS For personal use only Self-replacing herd cuts down on cash outflows for the purchase of new cattle Entire herd now RFID tagged – a powerful management tool allowing traceability through the supply chain for our customers Australian Agricultural Company Limited 23
Slide 25: Enhance and Optimise Asset Utilisation
ENHANCE AND OPTIMISE ASSET UTILISATION For personal use only Survey of all water sources Solar energy opportunities Pasture database Farming business growth Australian Agricultural Company Limited 24
Slide 26: Conclusion
CONCLUSION For personal use only AACo turnaround largely complete Solid operational and business foundations Proximity, expertise and leadership to take advantage of growing demand for red meat in South-East Asia Next five years focused on using the strengths developed in the turnaround Australian A
Slide 27: Thank You
AACO ANNUAL GENERAL MEETING 2013 For personal use only THANK YOU Australian Agricultural Company Limited 26
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