Bega Cheese Limited · ASX:BGA
Bega Cheese — Shareholder Meeting (October 2019)
31 slides from Bega Cheese's shareholder meeting presentation, Oct 29, 2019
Slide 1: FY2019 Annual General Meeting
For personal use only FY2019 Annual General Meeting Max Roberts – Chairman Paul van Heerwaarden – CEO Page 0
Slide 2: Agenda
Agenda For personal use only 2019 Annual Report Chairman’s report Chief Executive Officer’s report Questions Approval of remuneration report Election of Ms Patria Mann as a Director Page 1
Slide 3: Welcome
Welcome For personal use only Shareholders Suppliers PricewaterhouseCoopers Addisons Lawyers Link Market Services Bega Cheese staff Apologies Raelene Murphy, Graham Harcourt Page 2
Slide 4: FY2019 Annual Report – Chairman
For personal use only FY2019 Annual Report Max Roberts – Chairman The Great Australian Food Company Page 3
Slide 5: Key message
Key message For personal use only Continued transformation to becoming ‘The Great Australian Food Company’ Challenging year for the dairy industry Bega Cheese has further diversified but still impacted Growing domestic and international branded consumer business Koroit acquisition and inte
Slide 6: Transformation to becoming 'The Great Australian Food Company'
Transformation to becoming ‘The Great Australian Food Company’ For personal use only FOURTH TRANSFORMATION 2019 2017 THIRD TRANSFORMATION ACCELERATING GROWTH 2011 SECOND TRANSFORMATION NEW BUSINESS PLATFORM FIRST TRANSFORMATION 2008/09 STRUCTURED FOR THE FUTURE 2007 GROW AND DIVERSIFY 2001 Customer
Slide 7: Accelerated growth plan
Accelerated growth plan For personal use only Expanded consumer branded product portfolio in domestic and international markets Aligning our manufacturing footprint with milk supply Accelerated investments in growth and innovation Continuous improvement and rationalisation of manufacturing f
Slide 8: Bega Values
For personal use only Page 7 Bega Values
Slide 9: FY2019 Annual Report – CEO
For personal use only FY2019 Annual Report Paul van Heerwaarden – CEO The Great Australian Food Company Page 8
Slide 10: Revenue analysis
Revenue analysis For personal use only Export now 31% of total revenue 16% 9% Spreads and Increased dairy and nutritional other grocery Nutritionals volumes from Koroit acquisitions Expanding customer base in infant formula and bionutrients Launched new branded dairy and 40% 35% spreads prod
Slide 11: Performance highlights
Performance highlights For personal use only Revenue increased by 13% to $1.42 billion Export sales increased 4% to $442 million Increased production by 8% to 280,405 tonnes Increased milk intake by 41% to 1.06 billion litres Normalised EBITDA increased by 5% to $115.4 million Page 10
Slide 12: Reconciliation of normalised result
Reconciliation of normalised result For personal use only Koroit Koroit Fair Coburg Site Per Financial Acquisition Value Closure Legal Other Normalised Consolidated Statements Costs Adjustments Costs Costs Costs Outcome Period Ending 30 June 2019 $’000 $’000 $’000 $‘000 $’000 $’000 $’000 Revenue 1,4
Slide 13: Balance sheet
Balance sheet For personal use only FY2019 FY2018 $m $m* Cash 28.8 21.7 Trade and other receivables 179.9 221.4 Inventories 274.1 211.2 Property, plant and equipment 443.3 323.6 Intangible assets 535.1 411.5 Total Assets 1,488.6 1,215.8 Trade and other payables 265.9 225.9 Borrowings (net of costs)
Slide 14: Cash flow
Cash flow For personal use only FY2019 FY2018 $m $m* Receipts from customers 1,422.1 1,313.7 Payments to suppliers (1,476.8) (1,218.7) Net proceeds from trade receivables facility 188.6 - Interest and other costs of financing paid (20.4) (10.7) Income tax paid (13.3) (25.8) Operating activities 100.
Slide 15: Group sales
Group sales For personal use only $1.6b $1.4b $1.2b $1.0b $0.8b $0.6b $0.4b $0.2b $0.0b 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Page 14
Slide 16: Our consumer brands
Our consumer brands For personal use only Launched 41 new products including Gluten Free Vegemite Launched Farmer’s Table and Simply Nuts brands Increased licencing including successful launch of Arnott’s Vegemite Shapes Court has confirmed Bega Cheese ownership rights to peanut butter trade
Slide 17: Dairy commodity and farm gate milk prices
Dairy commodity and farm gate milk prices For personal use only Significant decrease in Australian milk production Drought impact on water, grain and hay prices Record milk intake for Bega of 1.06 billion litres Strong recovery in global commodities Downward pressure on margins due to incr
Slide 18: Operations review
Operations review For personal use only Total recordable injury frequency rate improved by 15% Total production increased to 280,405 tonnes Significant efficiency gains in processing plants including closure of Coburg site and toll processing arrangement Rationalisation of milk supply networ
Slide 19: Our manufacturing sites
TOLGA Our manufacturing sites For personal use only KINGAROY Quality assets in key locations Focused capex program to maintain and LAGOON ST, BEGA RIDGE ST, BEGA enhance capabilities Koroit acquisition expands geographic reach in key milk region Expanding lactoferrin capacity Rationalised
Slide 20: Approach to Corporate Social Responsibility
Approach to Corporate Social Responsibility our focus is on the five areas where we can have the greatest impact For personal use only Aligned with the United Nations Global Compact Food Diversity, inclusion Greenhouse Packaging Water nutrition and equality gases sustainability sustainability Highli
Slide 21: Where are we today?
Where are we today? For personal use only Transition to diversified brand food company well progressed Competitive supply chain broadly aligned with market demand Volatile dairy industry facing ongoing structural change and cyclical challenges Intense competition for milk and excess domestic
Slide 22: Our priorities
Our priorities For personal use only Continue investment in brands and markets Accelerate new product development Focused capital program to further rationalise supply chain and manufacturing footprint Remain open to further dairy industry consolidation opportunities Protect and diversify
Slide 23: For personal use only
For personal use only Page 22 Bega Cheese Limited
Slide 24: Formalities and voting
For personal use only FY2019 Annual General Meeting Formalities and voting Max Roberts – Chairman The Great Australian Food Company Page 23
Slide 25: Voting procedure
Voting procedure For personal use only A poll is being held for all resolutions Share registrar, Ms Julie Stokes, of Link Market Services Limited, will act as Returning Officer in relation to the polls If leaving early please place voting cards in ballot boxes Results available on ASX after
Slide 26: Resolutions
Resolutions For personal use only Adopt remuneration report for the year ended 30 June 2019 Election of Ms Patria Mann as a Director Page 25
Slide 27: Remuneration report
Remuneration report For personal use only Pages 23-30 of the 2019 Annual Report Board, Chairman, CEO and other key management personnel Market data and external advisors Total votes – 99,925,551 (46.64%) For – 95,828,093 (95.90%) Open – 2,328,166 (2.33%) Against – 1,769,292 (1.77%) Pag
Slide 28: Election of Directors
Election of Directors For personal use only Patria Mann Page 27
Slide 29: Patria Mann
For personal use only Patria Mann Total Votes – 104,585,923 (48.82%) For– 100,951,703 (96.53%) Open– 2,332,440 (2.23%) Against– 1,301,780 (1.24%) Page 28
Slide 30: For personal use only
For personal use only Page 29
Slide 31: Disclaimer
Disclaimer For personal use only The following disclaimer applies to this presentation and any information provided in this presentation (Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any Information. This presentation