Synlait Milk Ltd. · NZX:SML
Synlait Milk — Investor Presentation (November 2020)
31 slides from Synlait Milk's investor presentation, Nov 10, 2020
Slide 1: Equity Raising Investor Presentation
For personal use only EQUITY RAISING INVESTOR PRESENTATION 10 November 2020 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Important Notice & Disclaimer (1/4)
PAGE 02 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only IMPORTANT NOTICE & DISCLAIMER (1/4) This presentation has been prepared by Synlait Milk Limited (the the Company or that would be required in a product disclosure statement Not financial product advice Company) in relation to an
Slide 3: Important Notice & Disclaimer (2/4)
PAGE 03 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only IMPORTANT NOTICE & DISCLAIMER (2/4) Not an offer This presentation is not for distribution or release in the United States. Guide 230: ‘Disclosing non-IFRS financial information’ and “non-GAAP This presentation does not constitu
Slide 4: Important Notice & Disclaimer (3/4)
PAGE 04 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only IMPORTANT NOTICE & DISCLAIMER (3/4) To the maximum extent permitted by law, each Specified Person disclaims Past performance of, or guidance or outlook on, future earnings or financial position or and excludes all liability what
Slide 5: Important Notice & Disclaimer (4/4)
PAGE 05 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only IMPORTANT NOTICE & DISCLAIMER (4/4) You are strongly cautioned not to place undue reliance on any forward- Acceptance looking statements, including the updated FY21 guidance statement on pages 11 and 17, particularly in light of
Slide 6: Offer Overview
PAGE 06 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only OFFER OVERVIEW Offer rationale Offer summary • Synlait is raising equity to: • The equity raise comprises an approximately NZ$180 million underwritten placement (Placement) followed by an underwritten NZ$20 million Share Purchas
Slide 7: Equity Raising Offer Rationale
PAGE 07 EQUITY RAISING INVESTOR PRESENTATION 2020 OFFER For personal use only RATIONALE NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Synlait Dunsandel
Slide 8: Complete the Investment Phase of Synlait's Strategy
PAGE 08 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only 1 COMPLETE THE INVESTMENT PHASE OF SYNLAIT’S STRATEGY A new multinational customer diversifies Synlait’s customer, category and geographic reach • Synlait recently announced it has signed a manufacturing supply agreement with Wh
Slide 9: Strengthen Synlait's Balance Sheet
PAGE 09 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only 2 STRENGTHEN SYNLAIT’S BALANCE SHEET Provide more financial headroom as it navigates COVID-19 Pro-forma capitalisation shows headroom in facilities and covenants Pro-forma capitalisation • The pro-forma table restates funding fa
Slide 10: Equity Raising Guidance Update
PAGE 10 EQUITY RAISING INVESTOR PRESENTATION 2020 GUIDANCE For personal use only UPDATE NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Milk reception bay, Synlait Dunsandel
Slide 11: FY21 Guidance Update
PAGE 11 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only FY21 GUIDANCE UPDATE • Synlait now expects consumer-packaged infant formula volumes to be lower than FY20, with softer demand in HY21 than previously expected as our key customer resets its own inventory levels. • Synlait still
Slide 12: Equity Raising Offer Details
PAGE 12 EQUITY RAISING INVESTOR PRESENTATION 2020 OFFER For personal use only DETAILS NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Warehouse, Synlait Pokeno
Slide 13: Equity Raise Details (1/2)
PAGE 13 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only EQUITY RAISE DETAILS (1/2) Offer size and structure • NZ$200 million equity raising (Equity Raising), comprising: • Approximately NZ$180 million underwritten placement (Placement); and • NZ$20 million underwritten share purchase
Slide 14: Equity Raise Details (2/2)
PAGE 14 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only EQUITY RAISE DETAILS (2/2) Ranking and quotation • New shares issued under the Placement and the SPP will rank equally in all respects with Synlait’s existing shares on issue from the date of allotment. • New shares to be quoted
Slide 15: Equity Raise Timetable
PAGE 15 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only EQUITY RAISE TIMETABLE EVENT DATE DATE1 Trading halt and announcement of Placement and SPP Tuesday 10 November 2020 PLACEMENT Placement bookbuild Tuesday 10 November 2020 Announcement of results of Placement and trading halt lif
Slide 16: Appendices
PAGE 16 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only APPENDICES NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Synlait Pokeno
Slide 17: FY21 Guidance Statement Update
PAGE 17 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only FY21 GUIDANCE STATEMENT UPDATE Updated FY21 guidance as at 10 November 2020 (updated from guidance issued on 28 September 2020): • There continues to be significant global uncertainty regarding COVID-19. • While Synlait has prov
Slide 18: Key Risks (1/6)
PAGE 18 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only KEY RISKS (1/6) This section outlines the key risks which Synlait has declines. It is not currently clear when these negative further) in Synlait. You should also consider whether such identified in connection with the Offer. Th
Slide 19: Key Risks (2/6)
PAGE 19 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only KEY RISKS (2/6) KEY RISK DETAILS COVID-19 • There continues to be significant global uncertainty regarding COVID-19. COVID-19 is having an impact on our customers. It remains uncertain as to how long COVID-19 will affect the dem
Slide 20: Key Risks (3/6)
PAGE 20 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only KEY RISKS (3/6) KEY RISK DETAILS Customer concentration risk and • If a2 Milk reduces its order quantities, or if the existing supply agreement does not continue beyond its current minimum term, it could have a material adverse
Slide 21: Key Risks (4/6)
PAGE 21 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only KEY RISKS (4/6) KEY RISK DETAILS Category concentration risk • The infant nutrition category is the greatest contributor to Synlait’s overall profitability, representing over 41.7% of Synlait’s revenue in FY20. Synlait also prod
Slide 22: Key Risks (5/6)
PAGE 22 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only KEY RISKS (5/6) KEY RISK DETAILS Implementation of diversification • Synlait is underway with a significant information technology (IT) project to replace its Enterpise Resource Planning (ERP) software. As a significant IT proje
Slide 23: Key Risks (6/6)
PAGE 23 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only KEY RISKS (6/6) KEY RISK DETAILS Site and plant concentration and • Such events could include catastrophic equipment or infrastructure failure, COVID infection among plant staff causing customers to refuse to accept product from
Slide 24: Summary of Underwriting Agreement
PAGE 24 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only SUMMARY OF UNDERWRITING AGREEMENT Synlait has requested that the Underwriter underwrite the Offer and the Underwriter has agreed to do so. • Synlait provides certain undertakings to the Underwriter, including: This means that th
Slide 25: International Selling Restrictions (1/5)
PAGE 25 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only INTERNATIONAL SELLING RESTRICTIONS (1/5) This document does not constitute an offer of New Shares of the If you acquire the New Shares under the Placement in Australia then you: In accordance with Article 1(4)(a) of the Prospect
Slide 26: International Selling Restrictions (2/5)
PAGE 26 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only INTERNATIONAL SELLING RESTRICTIONS (2/5) the public of Hong Kong (except if permitted to do so under the securities offered or sold, directly or indirectly, in Japan or to, or for the benefit of, Singapore laws of Hong Kong) oth
Slide 27: International Selling Restrictions (3/5)
PAGE 27 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only INTERNATIONAL SELLING RESTRICTIONS (3/5) (b) A trust (where the trustee is not an accredited investor) whose sole the Company has determined the classification of the New Shares as Neither this document nor any other offering or
Slide 28: International Selling Restrictions (4/5)
PAGE 28 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only INTERNATIONAL SELLING RESTRICTIONS (4/5) authorisation or licensing from the UAE Central Bank, SCA or any other Dubai International Financial Centre Abu Dhabi Global Market authorities in the UAE to market or sell securities or
Slide 29: International Selling Restrictions (5/5)
PAGE 29 EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only INTERNATIONAL SELLING RESTRICTIONS (5/5) The United Kingdom Any invitation or inducement to engage in investment activity (within United States the meaning of section 21 of the FSMA) received in connection with the Neither this
Slide 30: Summary of Banking Facilities, Covenants & Bond Issue
PAGE 30 EQUITY RAISING INVESTOR PRESENTATION 2020 SUMMARY OF BANKING FACILITIES, For personal use only COVENANTS & BOND ISSUE As at 31 July 2020 Synlait had four syndicated bank facilities in place with ANZ and BNZ: Bond issue 1. Working capital facility (multi-currency) – facility limit of $320 mil
Slide 31: For personal use only
EQUITY RAISING INVESTOR PRESENTATION 2020 For personal use only NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES Synlait Dunsandel