Livestock Improvement Corporation Ltd · NZX:LIC
Livestock Improvement — Shareholder Meeting (September 2024)
39 slides from Livestock Improvement's shareholder meeting presentation, Sep 18, 2024
Slide 1: Annual Meeting
Annual Meeting 18 September 2024
Slide 2: Using the Online Platform
Using the Online Platform Starts 18th Sept at 4:00 PM NZDT Annual Meeting 18 September 2024 Voting Card Question Box 2 LIC 2024 Annual Meeting
Slide 3: Welcome
Welcome Corrigan Sowman Board Chair 3 LIC 2024 Annual Meeting
Slide 4: Meeting Agenda
Meeting 1. Year in Review Agenda 2. Financial Overview 3. Looking Ahead for LIC 4. Honoraria Report 5. Meeting Resolutions 6. General Business 4 LIC 2024 Annual Meeting
Slide 5: LIC Annual Meeting
5 LIC 2024 Annual Meeting
Slide 6: Year in Review
Year in Review David Chin Chief Executive 6 LIC 2024 Annual Meeting
Slide 7: Value for You is at the Heart of What We Do
Value for You is at the Heart of What We Do Our Farmers Deepen our understanding of the current and future needs of all of our farmers. Animal Most sustainable & efficient animal. Highest value products. Data & Digital Modernising the animal data & digital capabilities. Innovation 7 Research & devel
Slide 8: Our Three Commitments to You
Our Three 1 Operational Excellence Commitments to You 2 Faster Genetic Improvement 3 Software Reliability and Performance 8 LIC 2024 Annual Meeting
Slide 9: How We Performed 2023/24
How We Performed 2023/24 Operational Excellence Herd Milk Pregnancy Testing 10 Testing 10 working day 50% reduction in negative feedback 38 % turnaround time for test results (from the 99.2% Achieved Achieved received on Herd sample being Testing set ups collected on-farm) Johne’s Disease Customer T
Slide 10: How We Performed 2023/24
How We Performed 2023/24 Operational Excellence Artificial Breeding Deliver a Non-Return 99.9% Artificial Breeding Rate (at an AB Tech of AB Tech groups Achieve a sexed group level) within +/- 9.99% of the AB (1 AB technician near low group) semen NRR differential of <=5% compared 3.3% Achieved to c
Slide 11: How We Performed 2023/24
How We Performed 2023/24 Faster Genetic Improvement Sire Proving Premier Sires Bull Rate of genetic Scheme Bull Team Team genetic gain gain on farm genetic gain 3-year rolling average rate of increase in the gBW of 31. % 3-year rolling average rate of increase in the gBW of the 34 % 20.5 gBW the Sir
Slide 12: How We Performed 2023/24
How We Performed 2023/24 Software Reliability and Performance MINDA® availability MINDA® MINDA® availability including allowable Roadmap excluding allowable downtime downtime 99.9 % 100 % 98.9 % Achieved Achieved Achieved All features in MINDA® Available 99% of time roadmap released Available 97% of
Slide 13: Financial Overview
Financial Overview Brent Mealings Chief Financial Officer 13 LIC 2024 Annual Meeting
Slide 14: Financial Overview
Financial Overview Delivering value for our farmers is at the centre of everything we do and we stay laser focused on balancing our value proposition for farmer shareholders. 14 Sustainable Dividend Products and Services R&D Investment LIC 2024 Annual Meeting
Slide 15: Financial Highlights
Financial Highlights $ 26.8m $ 267.3m $7.7 m $13.9m $358.6m Total Total Revenue Net Profit Underlying Total Assets Dividends After Tax Earnings Includes the $18.5m Special Dividend paid Down 3.3% from Down 71.7% from Down 41.6% from Down 6.2% from earlier this year $276.5m last year $27.4m last year
Slide 16: Underlying Earnings - Key Movements on Last Year
Underlying Earnings - Key Movements on Last Year m Gross Profit $ 4 Farmers spending less $ 13.9m m Semen Quality Issue Underlying Earnings 1.5 $ Goodwill payments to impacted farmers Down from $23.7m last year m NZ Government 3.6 $ Tax Policy Change 16 LIC 2024 Annual Meeting
Slide 17: Critical Investments for the Future
Critical Investments for the Future 40% 60% Other Investments Critical including building Infrastructure improvements, including software vehicles and upgrades, GeneMark equipment, and Genomics technology computer hardware. and MINDA® software. 17 LIC 2024 Annual Meeting
Slide 18: Investment in Research and Development
Investment in Research and Development $21.2 million investment in R&D representing 7.9% of revenue, up from $18.2 million. LIC is one of the largest private investors in R&D for the primary sector. 18 LIC 2024 Annual Meeting
Slide 19: Outlook
Outlook 2024/25 likely to continue to be volatile with cost pressures on farm LIC focus: operational excellence, faster genetic improvement, software reliability and performance Expected underlying earnings for 2024/25 to be in the range of $16-22m (assuming no significant events including climate e
Slide 20: Delivering Value for Our Shareholders
Delivering Value for Our Shareholders As your cooperative, we have continued to look ahead and invest for the future. GeneMark® MINDA® Breeding for Genomics Integrations the Future 20 LIC 2024 Annual Meeting
Slide 21: The Year Ahead
The Year Ahead LIC will continue to focus on new and existing research projects with an aim to deliver sustainable advantage to our dairy sector. 21 LIC 2024 Annual Meeting
Slide 22: Our Challenge
Our Challenge Cow Efficiency 1 Reduce emissions intensity Adapt to Changes 2 Breed heat tolerant cows Mitigate Emissions 1950 2020 2050 3 Breed low methane cows 188 kgMS* 397 kgMS* 500 kgMS Use Technology to Enable 4 Innovation 22 *Source: Dairy Statistics LIC 2024 Annual Meeting
Slide 23: Short Gestation Length Semen
Short Gestation Length Semen Idea Result 6 years in a row we have Mating/Conception Calving exceeded 1 million days in milk Day 0 272 282 Additional days in milk Productivity gains & Fertility gains 12.3m additional days in milk Focus Average Gestation Length of Dairy SGL Sires 30 25 20 At 1.5kgMS/d
Slide 24: The Opportunity: All Cows Aren't Created Equal
The Opportunity: All Cows Aren’t Created Equal Holstein Friesian Cows The best cows are more efficient at turning Average Average Average Average feed into milk - they produce more milksolids, BW kgMS Liveweight Fertility weigh less and have a fertility advantage. They Quartile 1 - also have a lower
Slide 25: The Size of the Prize for New Zealand — A Profitable and Sustainable Dairy Sector
The Size of the Prize for New Zealand — A Profitable and Sustainable Dairy Sector What it’s worth if we accelerate the rate of genetic gain and only breed the best cows: Increase Cow Production Maintain Total Milk Reduce Agricultural 25 Relative to Liveweight Production from Fewer Cows Emissions LIC
Slide 26: Genetic Improvement Takes Time - So Let's Get Started
Genetic Improvement Takes Time - So Let’s Get Started Keep a heifer Measure replacement & assess Herd test Bull Father Breed Young SPS Cows End of first bull calf lactation Mate to Beef Bull Mother or SGL -3 -2 -1 1 2 3 4 5 2021 2022 2023 2024 2025 2026 2027 2028 26 Mated Bull born Used in Mated Hei
Slide 27: Honoraria Report
Honoraria Report Ian Brown Honoraria Committee Chair 27 LIC 2024 Annual Meeting
Slide 28: Meeting Resolutions
Meeting Resolutions Corrigan Sowman Board Chair 28 LIC 2024 Annual Meeting
Slide 29: Approval of LIC Directors' Remuneration
Resolution 1: Approval of LIC Directors’ Remuneration To receive and consider the LIC Honoraria Committee’s recommendation as to Directors’ remuneration, and if thought fit, to resolve by way of ordinary resolution to: “Approve the total remuneration of all nine Directors to be a maximum of $783,000
Slide 30: Directors' Remuneration
Resolution 1: Directors’ Remuneration Current Recommended $ Increase Chair $143,000 $145,000 $2,000 Director $65,000 $71,000 $6,000 Discretionary Pool* $60,000 $70,000 $10,000 Total for LIC Board $723,000 $783,000 $60,000 *Maximum pool available for additional duties and specialist skills, including
Slide 31: Approval of LIC Shareholder Reference Group Remuneration
Resolution 2: Approval of LIC Shareholder Reference Group Remuneration To receive and consider the LIC Honoraria Committee’s recommendation as to Shareholder Reference Group’s remuneration, and if thought fit, to resolve by way of ordinary resolution to: “Approve the total remuneration of all Shareh
Slide 32: Shareholder Reference Group Remuneration
Resolution 2: Shareholder Reference Group Remuneration Current Recommended $ Increase SRG Chair $40,000 $42,000 $2,000 SRG Deputy Chair $19,000 $21,000 $2,000 SRG Member $14,000 $15,000 $1,000 Total $199,000 $213,000 $14,000 Daily Allowance Daily Allowance* $400 $400 $0 32 LIC *Paid for time spent o
Slide 33: To Re-appoint KPMG as External Auditor
Resolution 3: To Re-appoint KPMG as External Auditor To consider, and if thought fit, to resolve by way of ordinary resolution to: “Re-appoint the chartered accountancy partnership KPMG as the auditor until the conclusion of the Company’s next Annual Meeting, and that the Directors be authorised to
Slide 34: To Elect One Elected Director for the North Island Region
Resolution 4: To Elect One Elected Director for the North Island Region To consider, and if thought fit: “Elect ONE (1) candidate representing the North Island as an Elected Director to the Board of Directors with effect from the conclusion of this Annual Meeting” 34 LIC Note: That only shareholders
Slide 35: To Elect One Elected Director for the South Island Region
Resolution 5: To Elect One Elected Director for the South Island Region To consider, and if thought fit: “Elect ONE (1) candidate representing the South Island, as an Elected Director to the Board of Directors with effect from the conclusion of this Annual Meeting” 35 LIC Note: That only shareholder
Slide 36: To Elect One Member of the Shareholder Reference Group for Upper North Island
Resolution 6: To Elect One Member of the Shareholder Reference Group for the Upper North Island Territory To consider, and if thought fit: “Elect ONE (1) candidate from the Upper North Island Territory to the Shareholder Reference Group with effect from the conclusion of this Annual Meeting” 36 LIC
Slide 37: General Business
General Business Corrigan Sowman Board Chair 37 LIC 2024 Annual Meeting
Slide 38: Q&A
Q&A 37 LIC 2024 Annual Meeting
Slide 39: OLIC
OLIC
Livestock Improvement — Shareholder Meeting (September 2024) on 6ix