Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — H1 FY2011 Earnings Presentation
22 slides from Australian Agricultural's earnings presentation, Jul 25, 2011
Slide 1: Results Presentation 1st Half Year 30 June 2011
For personal use only AUSTRALIAN AGRICULTURAL COMPANY LIMITED Results Presentation 1st Half Year 30 June 2011 1
Slide 2: 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 3: First Half FY11 Results Summary
FIRST HALF FY11 RESULTS SUMMARY For personal use only Sales $ 58.2m ↑ 53% previous corresponding period EBITDA $ 4.2m ↑ 7% previous corresponding period PBT $(18.5m) ↓ $2.3m previous corresponding period NPAT $(12 6m) $(12.6m) ↓ $0 $0.4m 4m previous corresponding period Herd Size 641,306 head ↑ 10%
Slide 4: Operational Drivers of Result
OPERATIONAL DRIVERS OF RESULT For personal use only The underlying result was driven by: • 92,600 cattle sold @ average price of $987 per head • 37 800 000 kg’s 37,800,000 kg s of weight gain into trading herd • 8,100,000 kg’s of Branded Beef sales • 96 700 calves branded to 30 June 2011 96,700 • 11
Slide 5: Cattle Trading
CATTLE TRADING For personal use only C ttl SSales Cattle l 1HFY10 C ttl SSales Cattle l 1HFY11 8% 16% 19% 31% 7% 20% 41% 25% 20% 13% Grass Finished Short fed Grain Finished Wagyu Breeder and Feeder Live Export Grass Finished Short fed Grain Finished Wagyu Breeder and Feeder Live Export Short fed Ave
Slide 6: Financial Performance
FINANCIAL PERFORMANCE For personal use only 1HFY11 1HFY10 Movement Summary – Profit & Loss $m $m $m Gross Revenue 122 8 122.8 97 1 97.1 ↑ 25.8 25 8 Pastoral Group p Gross Margin g 27.3 25.6 ↑ 1.7 Branded Beef Group Trading Gross Margin 5.6 8.2 ↓ 2.6 Crops Gross Margin 4.5 (0.9) ↑ 5.4 Total Gross Mar
Slide 7: Eastern Young Cattle Index & Roma Prices
EASTERN YOUNG CATTLE INDEX & For personal use only ROMA PRICES 7
Slide 8: AUD:USD Exchange Rate
For personal use only AU UD:USD Exchaange Rate 0.80 0.85 0.90 0.95 1.00 1.05 1.10 1 10 AUD:USD 8
Slide 9: 2nd Half 2011 Outlook
2ND HALF 2011 OUTLOOK For personal use only Directors reconfirm the EBITDA forecast range of $50 $50‐$60 $60 million for Dec 2011 Post 30 June 2011: • Australian Government Live Cattle Ban repealed – Indonesia opens permits for 180,000 head for 3rd quarter 2011 – No exporters granted qualification t
Slide 10: Balance Sheet
BALANCE SHEET For personal use only 1H FY11 1H FY10 Summary – Balance Sheet $m $m Cash and cash equivalents 20.1 17.0 Li Livestock k 453 7 453.7 413 6 413.6 Property, Plant & Equip 601.8 598.9 Other assets 53.6 43.2 Total Assets 1,129.1 1,072.7 Interest bearing liabilities 362.0 357.3 Other liabilit
Slide 11: Cash Flow
CASH FLOW For personal use only 1H FY11 1H FY10 Summaryy – Cash Flow Statement $ $m $ $m Net Operating Cash Flows (56.9) (43.6) Net Payments for Property, Plant & Equip. (5.6) (2.8) Payment for Tipperary assets (5.0) N t IInvesting Net ti C Cash h Fl Flows (10 6) (10.6) (2 8) (2.8) Proceeds from sha
Slide 12: Cattle Operations Update
CATTLE OPERATIONS UPDATE For personal use only • 2011 excellent and extended wet season – Complimentary nutrient supplementation produced optimum cattle body and fertility conditions – Improved pregnancy confirmations – Calf branding one month behind schedules – Grass and pasture conditions holding
Slide 13: Indonesian Live Cattle Trade Update
INDONESIAN LIVE CATTLE TRADE UPDATE For personal use only • Australian Government live cattle export ban has been repealed – New Australian live cattle export protocols (farm, ship , feedlot , abattoir , OIE standards) implemented – No exporters government approved to date – Logistics' supply chain
Slide 14: Operational Update - NT Abattoir
OPERATIONAL UPDATE ‐ NT ABATTOIR For personal use only AAco Directors have resolved to build a profitable processing abattoir in the Northern Territory, Territory conditional upon: • Northern Territory S46 site development approval • 5 to 6 month process • Cost $500,000 • Maintaining a capital devel
Slide 15: AACo Stations Profile
AACO STATIONS PROFILE For personal use only 15
Slide 16: Cattle Analysis
CATTLE ANALYSIS For personal use only First half First half Full year 2011 2010 2010 Opening balance (head) 577,144 507,676 507,676 Natural increase (including calf accrual) 50,267 50,756 134,236 Purchases 117,905 74,270 121,267 Cattle write offs (11,433) (6,710) (20,100) Cattle sales ((92,577) , )
Slide 17: Cattle by Breed / Cattle by Location
CATTLE BY BREED For personal use only Cattle by Breed Cattle by Location VRG 25% Barkly 42% Gulf 14% Central Qld 8% Darling Downs 6% Channel Country 5% 17
Slide 18: Breeding Herd Age Profile
BREEDING HERD AGE PROFILE For personal use only Optimising the herd’s breeding potential by ensuring correct age profile is maintained and non performance culling 18
Slide 19: Strategy
STRATEGY For personal use only Delivering on the three year strategic plan Evolution from pastoral company to integrated beef producer and processor Strategic initiatives Strategy Progress so far Improved land • Focus on higher returning land • Tipperary agistment agreement utilisation • Rebalance l
Slide 20: Year Plan Update
3 YEAR PLAN UPDATE For personal use only 2013 •Achieve h scale l and d relevance l 2011 ‐ 2012 •Reward Shareholders •Further adjustment of land holdings •Dividends In Progress •Ongoing divestment of underperforming/sub scale •Vertical integration (build NT properties abattoir) •Expansion Expansion o
Slide 21: Appendices
For personal use only APPENDICES 21
Slide 22: AACo Business Model
AACO BUSINESS MODEL For personal use only Live cattle division Wholesale boxed beef division Trading Herd Meat processing Breeding (Grass feeding / (currently outsourced to Branded sales Herd feedlotting) facilities in South East Qld) • Fertility and re‐breeding rates • Kilograms of beef produced •
Australian Agricultural Company — H1 FY2011 Earnings Presentation on 6ix