Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Investor Day (February 2010)
92 slides from Graincorp Limited Class A's investor day presentation, Feb 3, 2010
Slide 1: GrainCorp Investor Day Presentation (ASX announcement)
Company announcement For personal use only GrainCorp Limited ABN 60 057 186 035 Date: Wednesday, 3 February 2010 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com PUBLIC ANNOUNCEMENT GRAINCORP INVESTOR DAY PRESENTATION Betty Ivanoff General Counsel and Company S
Slide 2: GrainCorp Investor Day
For personal use only 3 February 2010 GRAINCORP INVESTOR DAY Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 1
Slide 3: GrainCorp Overview
For personal use only Don Taylor – GrainCorp Chairman GRAINCORP OVERVIEW Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 2
Slide 4: Delivering on corporate objectives
For personal use only Delivering on corporate objectives... In 2003, GrainCorp identified a number of objectives 1. Provide sustainable and improving returns to shareholders 2. Maximise value extraction from the agri‐food value chain 3. Reduce income volatility through diversification These objectiv
Slide 5: Where we are generating value at home
For personal use only Where we are generating value at home… Other bulk handlers and traders Malt production Grain growers Contracted trains and road transport Grain Road processing Flour Country storage milling Rail network Port elevators Other bulk handlers and traders Domestic customers Other bul
Slide 6: And generating value off-shore
For personal use only And generating value off‐shore... The acquisition of Canada Malting Company, Great Western Malting, Bairds Malt and Barrett Burston Malting has diversified GrainCorp’s earnings base... Australia Largest grain storage network on the east United Kingdom coast operating 7 bulk
Slide 7: And diversifying earnings and cash-flow
For personal use only And diversifying earnings and cash‐flow... Revenue by geography(1) EBITDA by segment(2) Canada Storage & 14% Logistics US 23% Malt 8% 43% UK Australia Ports 12% 66% 17% Allied Mills Trading 2% 15% GrainCorp Malt provides vertical and GrainCorp Malt earnings are not signific
Slide 8: Our debt position
For personal use only Our debt position*... • Non current ‐ $104 m Short‐term debt less Cash $ million Long‐term debt $ million 700 • Acquisition facility ‐ $215 m 600 228 223 500 • Short term ‐ $68 m 229 224 400 224 • Cash ‐ $75 m 242 373 228 339 300 189 104 241 200 236 220 208 179 100 116 110 110
Slide 9: All this combines to...
For personal use only All this combines to... Create a foundation for a stronger company that has 9 More stable and sustainable earnings 9 Better returns to shareholders 9 More opportunities for market share growth in Australia 9 Potential to grow our ‘off shore’ earnings 9 Options to pursue the acq
Slide 10: GrainCorp's Strategic Priorities
For personal use only Ian Wilton – Interim CEO GRAINCORP’S STRATEGIC PRIORITIES Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 9
Slide 11: Our current strategic priorities are...
For personal use only Our current strategic priorities are... Develop and extract value and earnings from our current enterprise structure And... Successful integration of the GrainCorp Malt business unit Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 10
Slide 12: Enterprise Structure
For personal use only ENTERPRISE STRUCTURE Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 11
Slide 13: Grain processing provides...
For personal use only Grain processing provides... • ‘Complementary demand’ that 9 Potentially attracts or ‘pulls’ grain into our storage and logistics network 9 Supports our domestic and international trading strategies 9 Provides additional international opportunities • Internationally it is commo
Slide 14: Grain 'pull through' potential
For personal use only Grain ‘pull through’ potential... Grain processing ‐ more grain potentially ‘pulled’ into our storage and logistics network • Barrett Burston consumes up to 235,000 tonnes of malt barley PA • Allied Mills consumes up to 800,000 tonnes of wheat PA • Potential to ‘pull’ more grai
Slide 15: Supports our grain trading strategies
For personal use only Supports our grain trading strategies... Australian domestic market share • Barrett Burston malt barley consumption allows GrainCorp to more actively participate in both malt and feed barley markets • Allied Mills plays a similar role with wheat Exporting grain to international
Slide 16: And potential for trading expansion
For personal use only And potential for trading expansion... Possible increased participation in the domestic UK, Canada and the US wheat and barley markets • Existing trading activities in the UK – Scotgrain Agriculture and Saxon Agriculture subsidiaries • Elevator infrastructure in Canada • Sourci
Slide 17: GrainCorp Malt Integration
For personal use only GRAINCORP MALT INTEGRATION Great Western Malting – Pocatello Idaho Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 16
Slide 18: Integration priorities and progress
For personal use only Integration priorities and progress • Joint team formed to oversee integration projects • Integration priorities include... • Brand protection ‐ Individual company brands will be retained • Retain employee skills and knowledge • Ensure ‘One Company’ integration outcome with com
Slide 19: Creating a growth foundation
For personal use only Creating a growth foundation... • By ensuring we extract maximum value from the ‘complementary enterprise’ structure • And ensuring we create ‘one company’ in culture, systems and practices... • We will be better able to sustainably generate shareholder returns So, our task ove
Slide 20: Financial Outlook
For personal use only FINANCIAL OUTLOOK Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 19
Slide 21: Our financials are on track
For personal use only Our financials are on track... • The company reiterated 22 December earnings guidance on 21 January • No financial ‘surprises’ have emerged from either our storage and logistics or malt production business units • No unidentified capital requirements have emerged from the malt
Slide 22: The sustainability of malt earnings
For personal use only The sustainability of malt earnings... A lot of people are asking, “How sustainable are GrainCorp Malt earnings?” • The business case for the acquisition of UMH acknowledged that malt margins will ease through the cycle But... GrainCorp Malt’s earnings will be supported by • Lo
Slide 23: And a final point on the purchase price
For personal use only And a final point on the purchase price... Some people are also saying “GrainCorp paid too much for the malt business”, but they are not factoring in the following • The purchase price of $757 million included ‐ All working capital to operate the business – $167 million ‐ Appro
Slide 24: International Malt Sector Overview
For personal use only Jim Anderson – CEO GrainCorp Malt INTERNATIONAL MALT SECTOR OVERVIEW Malt kiln Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 23
Slide 25: Malt Barley Production and Trade
For personal use only MALT BARLEY PRODUCTION AND TRADE Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 24
Slide 26: Malt barley production is volatile
For personal use only Malt barley production is volatile... Problem... 40 Malt Barley Produced in GrainCorp Malt Footprint (mmt) • Total malting barley tonnage 35 35 produced is trending downward 32 31 29 • So certainty of supply is a major 30 29 concern for brewers and distillers, 26 25 USA large a
Slide 27: Located ideally
For personal use only Located ideally... • In 2008, 74% of malt exports originated from the EU, Canada or Australia • Brazil, Japan and Venezuela are the largest importers of malt • China is emerging as a small malt exporter • Smaller plants are being rationalized 190 980 280 275 • GrainCorp Malt 14
Slide 28: Malt Consumption Trends
For personal use only MALT CONSUMPTION TRENDS Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 27
Slide 29: Malt consumption trends - Brewers
For personal use only Malt consumption trends ‐ Brewers Major brewers • Five brewers have 50% of worldwide production ‐ Anheuser Busch InBev, SABMiller, Heineken, Carlsberg, Molson Coors • Major brewers need malt suppliers that can provide their specific malt characteristic, malt supply certainty, s
Slide 30: Beer consumption is increasing
For personal use only Beer consumption is increasing... International beer consumption has Beer consumption by region grown avg. 3% PA to 2008 3,000 1,000 Total Europe W Euro E Euro NA LATAM Asia/Pacific 900 Africa/ME 2,500 800 700 2,000 600 Hectolitres ‘000 Hectolitres ‘000 1,500 500 400 1,000 300
Slide 31: Malt consumption trends - Whisky
For personal use only Malt consumption trends ‐ Whisky Major distillers • Six distillers produce the majority of Scotch whisky ‐ Diageo, Chivas Brothers, William Grant, Highland, John Dewar & Sons, Whyte Mackay Regional distillers • Regional distillers are very important customers • Similar to the m
Slide 32: Whisky consumption trending upward
For personal use only Whisky consumption trending upward… International whisky consumption grew 8% from 2005 to 2008 Decline in 2008 and into 2009 due to trade channel de‐stocking – impact of GFC 400 346.48 331.43 350 307.99 322.76 299.23 300 250 200 150 100 50 0 2004 2005 2006 2007 2008 Majors Othe
Slide 33: The Evolution of UMH
For personal use only THE EVOLUTION OF UMH Malt germination vessel Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 32
Slide 34: Repositioning the company
For personal use only Repositioning the company... • Reject the notion of being a ‘typical’ commodity malt producer • Produce a diversified range of malts aligned to specific customer requirements for the... ‐ Premium beer and the microbrewery market ‐ Premium and regional distillery market • Focus
Slide 35: Maximising commercial potential
For personal use only Maximising commercial potential... Building commercial presence… • Access new customers ‐ Warehouse and distribution business, distilling, developing markets (South Africa, Asia, Latin America) ‐ New capacity: Scotland, Australia, Vancouver roast malt • Differentiate product of
Slide 36: Building commercial capability
For personal use only Building commercial capability… Targeting… • Optimal markets for GrainCorp Malt and each country operation • ‘Best’ customers and market sectors • Supplying 1st, 2nd and 3rd brands in each identified market sector • Define strategy to ‘own’ desired markets, customers and brands
Slide 37: Maximising productivity
For personal use only Maximising productivity… Managing the enterprise… • Zero based budgeting • Input cost and quality management ‐ Price risk ‐ Variety risk • Manufacturing excellence ‐ Maintenance probes ‐ Focus CAPEX on efficiency wins • ‘Customer solution’ based selling • ‘Smart’ systems ‐ Ente
Slide 38: Changing the sales mix
For personal use only Changing the sales mix... • Sales mix has changed over the past three years • The following categories represent ~35% total volumes ‐ North American micro/regional brewers ‐ UK distillers ‐ South America Sales volumes over time (KT) NA regional/microbrewers UK distillers South
Slide 39: Creating a stable earnings profile
For personal use only Creating a stable earnings profile... Contracted Sales Volumes • Long term supply agreements Long term supply agreements constitute an increasing portion 100% of sales 90% 80% • Negotiation with customers of 70% supply for FY 11, FY 12 and 60% beyond is part of on‐going 50% cus
Slide 40: GrainCorp Malt Overview
For personal use only GRAINCORP MALT OVERVIEW Barrett Burston Malting ‐ Geelong Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 39
Slide 41: An international operating footprint
For personal use only An international operating footprint... • Four operating companies ‐ Canada Malting ‐ Canada ‐ Great Western Malting ‐ USA ‐ Bairds Malt ‐ UK ‐ Barrett Burston Malting ‐ Australia • 15 plants located in four countries • All operations located near substantial malting barley pro
Slide 42: And a blue chip customer base
For personal use only And a blue chip customer base... Strong, long term relationships... And we have a reputation for producing high quality malt that meets customers’ product specifications and supply chain requirements Some of the leading brewers and distillers we supply Anheuser‐Busch Asahi Brew
Slide 43: And regional sales diversification
For personal use only And regional sales diversification... Approximate Sales by Region • Customer base is worldwide Australia • More than 800 customers in 9% Latin America total 15% • Customer sectors ‐ Large international brewers Asia 17% USA / Canada ‐ Large distillers 36% ‐ Micro and regional br
Slide 44: GrainCorp Malt Businesses
For personal use only GRAINCORP MALT BUSINESSES Canada Malting Company – Thunder Bay Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 43
Slide 45: Barrett Burston Malting
For personal use only Angelo Di Petta – President Barrett Burston Malting BARRETT BURSTON MALTING Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 44
Slide 46: BBM Overview
For personal use only BBM Overview • Currently 20% of Australia’s malt production, 30% post Pinkenba • 46% of production exported to South Korea, Vietnam, Thailand and Japan • Long standing relationship with GrainCorp – from 1983 at Geelong BBM locations Plant Capacity (MT) Geelong 103,000 Toowoomba
Slide 47: BBM Operating strategy
For personal use only BBM Operating strategy • Focus on providing outstanding product and service to customers • Increase export sales to the high growth Asian countries including Japan, South Korea, Vietnam and Thailand • Maintain longstanding relationships with best practice farmers in a diverse c
Slide 48: BBM Sales mix
For personal use only BBM Sales mix • Sales mix constant • 100% production capacity sold for FY 10 • Rated #1 international supplier to Japan in 2007 • Consistently rated #1 Australian malt producer by Kirin, and other Japanese and South East Asian customers Sales mix over time 100 90 80 70 Percenta
Slide 49: BBM Barley procurement
For personal use only BBM Barley procurement • Team of two responsible for procuring malting barley both directly from selected farmers and via agency arrangements • Approximately 50% of barley secured in‐house and 50% outsourced (dependent on specific seasons and conditions) • BBM has strong relati
Slide 50: BBM CAPEX
For personal use only BBM CAPEX CAPEX focus on plant maintenance and manufacturing expansion Year Total CAPEX Detail (Australian dollars) FY 06 to FY 08 $4.6 M Excluding Pinkenba malt house CAPEX of $7.7 M FY 09 ~$19.4 M Pinkenba $17.6 M Other $1.8 M Budget FY 10 ~$51.1 M Pinkenba $47.3 M Other $3.8
Slide 51: Pinkenba malt house update
For personal use only Pinkenba malt house update Pinkenba malt house • New malting capacity of 86,000 T with option to expand capacity • Civil works for foundations of steeps, germination vessels and kiln completed • Infrastructure charges for utilities negotiated and paid • Fixed price contract wit
Slide 52: BBM Customer relationships
For personal use only BBM Customer relationships Customer Length of relationship(years) Carlton & United Beverages >100 Sapporo Breweries >50 Asahi Breweries >40 Kirin Brewery >40 Hite Brewery Company >30 SABECO >10 Boon Rawd Brewery 3 Grain Storage and Logistics | Grain Trading | GrainCorp Malt | A
Slide 53: Canada Malting Company
For personal use only Steve Gorst – President Canada Malting Company CANADA MALTING COMPANY Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 52
Slide 54: CMC Overview
For personal use only CMC Overview • CMC has 50% of the Canadian malt capacity with 450,000 tonnes • All three malt plants ship barley and malt via bulk vessels, containers, rail cars or trucks • CMC operates 9 elevators located in major malting barley growing regions CMC locations Plant Capacity (M
Slide 55: CMC Operating strategy
For personal use only CMC Operating strategy • Customers are diversified – large through to small • Supplying the North American microbrewery sector directly and through Country Malt • Majority of export volume to Asia, South America and South Africa • Coastal Containers ‐ container loading operatio
Slide 56: CMC Sales mix
For personal use only CMC Sales mix • In FY 09 60% of CMC sales were to large North American customers and the North American regional and microbrewery sector • Balance of sales volumes were exported to South America, Asia and South Africa Sales mix over time 100 90 80 70 Percentage of sales 60 50 D
Slide 57: CMC Barley procurement
For personal use only CMC Barley procurement • Procurement team of 22 • 80% of barley procurements is undertaken by CMC’s in‐house procurement team • Supply contracted directly with producers or via grain companies • Relationships with over 2,000 barley growers • Barley price is agreed with the Cana
Slide 58: CMC Canadian elevators
For personal use only CMC Canadian elevators • CMC operates nine country elevators • Elevators will ‘turn’ (empty and fill) 11 to 12 times per year ‐ Notional annual capacity to handle around 550,000 tonnes • Goal of handling all malt barley ‘in‐house’ ‐ Dramatically improves quality with excellent
Slide 59: CMC CAPEX
For personal use only CMC CAPEX CAPEX focus on plant maintenance and manufacturing efficiency Year Total CAPEX Detail (Canadian dollars) FY 06 to FY 08 ~$9 M Calgary ~$3.4 M Thunder Bay ~$0.4 M Montreal ~$5.1 M FY 09 ~$5.1 M Budget FY 10 ~$7.6 M Grain Storage and Logistics | Grain Trading | GrainCor
Slide 60: CMC Customer relationships
For personal use only CMC Customer relationships Customer Length of relationship(years) Molson Coors >100 Suntory >40 Kirin Brewery >40 SAB Miller >30 Asahi Breweries >30 Yuengling Beer Company >20 Miller Coors 2 Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 59
Slide 61: Great Western Malting
For personal use only Greg Friberg – President Great Western Malting GREAT WESTERN MALTING Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 60
Slide 62: GWM Overview
For personal use only GWM Overview • Leading malt producer in Northwest US • Total production capacity of 210,000 MT • More than 800 customers – from large to small microbrewers GWM locations Plant Capacity (MT) Vancouver, WA 117,000 Pocatello 93,000 Total 210,000 Grain Storage and Logistics | Grain
Slide 63: GWM Operating strategy
For personal use only GWM Operating strategy • Diversification of customer mix to include multiple domestic and international brewers • Country Malt warehousing and distribution serving approx. 800 customers • US West coast export shipment via both containers and bulk • Manufacturing excellence ‐ In
Slide 64: GWM Sales mix
For personal use only GWM Sales mix US microbrew sector grew at 5% in the first 6 months of 2009 Sales mix over time 100 90 80 70 Percentage of sales 60 50 Domestic (North America) 40 Export 30 20 10 0 2005 2006 2007 2008 2009 Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mil
Slide 65: GWM Barley procurement
For personal use only GWM Barley procurement • Procurement team of five located in the heart of US North West barley production regions • Barley contracting in five distinct growing regions to minimise production risk • 40% of GWM procurement is conducted in‐house and • Remainder is outsourced • Aim
Slide 66: Vancouver malt house project
For personal use only Vancouver malt house project • Port of Vancouver (Washington) paying GrainCorp Malt US $32.5 million for resumption of land to build a new rail line • Work will involve demolition of some grain storage and elevation facilities • Creates an opportunity to significantly upgrade t
Slide 67: GWM CAPEX
For personal use only GWM CAPEX CAPEX focus on plant maintenance and manufacturing efficiency Year Total CAPEX Detail (US dollars) FY 06 to FY 08 $6.6 M FY 09 ~$2.7 M Budget FY 10 ~$14.1 M Port of Vancouver offset $8 M New waste heat usage agreement at Pocatello (Idaho) has potential to replace 100%
Slide 68: Country Malt - serving the craft brew market
For personal use only Country Malt – serving the craft brew market • Country Malt Group was created 4th quarter of FY 06 • Extensive network of warehousing and distribution sites • Distributing and selling products to the regional brewers, micro and brewpub sectors • Malt from multiple malt producer
Slide 69: GWM Customer relationships
For personal use only GWM Customer relationships Customer Length of relationship (years) AB InBev >40 Suntory >30 Miller Coors 5 SABMiller 3 Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 68
Slide 70: Bairds Malt
For personal use only Steve Haydon – President Bairds Malt BAIRDS MALT Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 69
Slide 71: Bairds Overview
For personal use only Bairds Overview • Five production facilities Scotland ‐ Inverness, Arbroath, Pencaitland England – Grantham, Witham • Leading supplier to the Scottish distilling industry Key barley growing regions Bairds , Inverness *57,000 (MT) new capacity Arbroath Pencaitland Bairds locatio
Slide 72: Bairds Operating strategy
For personal use only Bairds Operating strategy • Significant shift in customer mix over the past few years… • Production focus shifting from breweries… • To supplying distillers which was the rationale for the Arbroath expansion • Also a corresponding shift towards long term agreements • Diversifyi
Slide 73: Bairds Sales mix
For personal use only Bairds Sales mix • Approximately 90% of total production sold domestically • 65% of production sold to Scottish distilling industry • Export of distilling and specialty malts to Japan, the Americas and South Africa Sales mix over time 100 90 80 70 Percentage of sales 60 50 Dome
Slide 74: Bairds Barley procurement
For personal use only Bairds Barley procurement Direct procurement of malting barley from hundreds of barley growers through... • Saxon Agriculture ‐ 16 employees, based in Norfolk ‐ Organic grain, conventional grain and bulk cereal seed ‐ Direct supply of approx. 60% of the requirements of Bairds p
Slide 75: Bairds CAPEX
For personal use only Bairds CAPEX CAPEX focus on plant maintenance, manufacturing efficiency and capacity expansion • In the past 36 months Bairds has carried out a major reconstruction of the Arbroath facility • The grain storage and drying facility near Inverness has also been refurbished and upg
Slide 76: Bairds Customer relationships
For personal use only Bairds Customer relationships Customer Length of relationship (years) AB InBev >20 Whyte & Mackay >10 Chivas Brothers >10 William Grant & Sons >10 John Dewar & Sons >10 Heineken UK 2 Formerly Scottish and Newcastle >30 DIAGEO 2 Grain Storage and Logistics | Grain Trading | Grai
Slide 77: Flour Production
For personal use only FLOUR PRODUCTION Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 76
Slide 78: Allied Mills
For personal use only Joseph Di Leo – Managing Director ALLIED MILLS A Leading Food Ingredient, Manufacturing and Distribution Business Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 77
Slide 79: Allied Mills overview
For personal use only Allied Mills overview • Allied Mills was acquired from Goodman Fielder in 2002 • 60% share in a joint venture with Cargill • GrainCorp and Cargill have equal management rights. As such, Allied is an equity accounted investment • Cargill provides flour milling IP through a Techn
Slide 80: Diversified customers and channels to market
For personal use only Diversified customers and channels to market.. In Store Bakery / Bakery Distributors/ Food Manufacturers Franchises Foodservice Retail Other Bakeries ~ 250 businesses Supply contracts Supply agreements Cafes, Spot sales restaurants, Supply contracts Bread pre mix
Slide 81: Major market participants include
For personal use only Major market participants include… The Australian flour milling market is dominated by three major players (Allied Mills, Manildra and George Weston Foods) representing a combined 90% of industry wheat milling capacity Weston Milling National network 7 flour mills Integra
Slide 82: Market trends
For personal use only Market trends… Macro trends... • Traditional ‘white’ flour market has been declining • Bread unit sales volumes are falling, traditional cereal foods and biscuit categories are flat (Nielsen) But the good news is... • Following trends in the United States and United Kingdom, ne
Slide 83: So we are more than just a flour miller
For personal use only So we are more than just a flour miller… • With increasing income from... Percentage Split Flour v Non‐Flour (FY 09) Non‐Flour Flour • Bakery and bread mixes 100% • Cake mixes 90% 80% • Frozen doughnuts 70% 60% • Batters and coatings 50% 40% • Binders and specialty grains 30% •
Slide 84: To adjust to changing market trends
For personal use only To adjust to changing market trends... Two Business Units have been created • Flour Milling • Least Cost • Best Quality • National Footprint • Retail/Food Service • Supply Partner of Choice through ‐ Customer Solutions and Innovation ‐ Value Added Products • Significant Growth
Slide 85: Our growth initiatives include Picton
For personal use only Our growth initiatives include Picton... Picton (Sydney) • $97 million ‘greenfield’ investment • Storage for 40,000 tonnes of bulk • First new mill in NSW for >50 years maize and wheat • Contains 3 separate mills • The plant currently processes • Hard wheat for baking approx. 2
Slide 86: Allied Mills Picton
For personal use only Allied Mills Picton Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 85
Slide 87: Containing latest technology = high efficiency
For personal use only Containing latest technology = high efficiency Bhuler Roll Stand Colour Sorter Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 86
Slide 88: And the Yatala frozen dough plant
For personal use only And the Yatala frozen dough plant... • Located in Yatala, (Queensland) • Acquired in December 2008 for $9.5 M • 10 year supply agreement with Donut King • Platform for product development and diversification • Frozen product opportunities such as cake, cookie mix, Par Bake brea
Slide 89: Milling strategic objectives and directions
For personal use only Milling strategic objectives and directions… Maintain commercial stability by…. • Clearly defined market segments and strategies • Developing niche business opportunities (i.e. specialty grains) Improve business efficiency by…. • Focusing on ‘Least Cost’ production and becoming
Slide 90: Retail foodservice growth opportunity
For personal use only Retail foodservice growth opportunity… The Opportunity… • Australian Bakery Market $4 billion (Supermarkets $2.4 bn, Franchises $1 bn and Route) • Australian Food Service Market $35 billion (QSR $7.3 bn, Institutions $1 bn) The Focus… • Leverage the Allied Mills brand • Further
Slide 91: Our earnings and value growth so far
For personal use only Our earnings and value growth so far... • We operate in a mature market with Net Asset Value * ($ millions) Gross Revenue ($ millions) stable volumes 800 700 • Since 2002 we have taken more than 600 500 $20 million (20%) actual costs out 400 300 • ‘Least Delivered Cost’ reconfi
Slide 92: Q and A
For personal use only Ian Wilton – Interim CEO Q AND A Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 91