Farm Pride Foods Limited · ASX:FRM
Farm Pride Foods — Shareholder Meeting (October 2016)
31 slides from Farm Pride Foods's shareholder meeting presentation, Oct 26, 2016
Slide 1: 2016 AGM
FARM PRIDE FOODS LIMITED For personal use only 2016 AGM 26 October 2016 People ‐ Animal Welfare ‐ Performance.
Slide 2: Farm Pride Foods Board of Directors
Farm Pride Foods Board of Directors For personal use only Peter Bell Non-executive Chairman Malcolm Ward Non-executive Director/ Audit Chairman Bruce De Lacy Chief Executive Officer Phillip Campbell, non executive director, resigned at the end of September 2016. Search for a replacement will commenc
Slide 3: Farm Pride Foods Management Team
Farm Pride Foods Management Team For personal use only Bruce De Lacy CEO Don Woodhouse Business Manager – Manufacturing Brent Phillips National Sales Manager Darrell Boyle National Farms Manager
Slide 4: Farm Pride Foods – Today
Farm Pride Foods – Today For personal use only There have been a number of significant milestones over the last two years including: • Introduction of a simplified business model • New CEO & management team • Streamlined management • Positive year end results • ACCC Egg Cartel – judgement was in our
Slide 5: The Australian Egg Industry
The Australian Egg Industry For personal use only Farm Pride has experienced a significant increase in investor interest over the last two years but, the Egg Industry lives with cycles or outside forces including weather, grain, over production and disease the same as many other agricultural industr
Slide 6: Shareholder Speculation
Shareholder Speculation For personal use only • Recently there was some unhelpful speculation on a stock market forum about disease at one or more of our farms. • Despite the fact that this was uninformed it is not our role to monitor or regulate that speculation. • For the record there have been no
Slide 7: Shareholder Expectations
Shareholder Expectations For personal use only We have a small management team that must remain focused on the business. We cannot control shareholder speculation. “…at the end of the day earnings speak for themselves…..”
Slide 8: Impact of the Recent High Rainfall
Impact of the Recent High Rainfall For personal use only • Although our farms have been affected by the recent wet weather especially in Victoria, there has been no damage to flocks or sheds. • Ridley Agriproducts our largest feed supplier have reported the biggest issue was getting access to grain
Slide 9: Shareholder value proposition – long term strategy
Shareholder value proposition – long term strategy For personal use only Farm Pride focus is to generate long term sustainable returns for all shareholders EBIT NOPAT NOPAT Targeting Targeting shareholder shareholder value Investment case drivers drivers drivers valuecreation creation Farm Pride Tar
Slide 10: People - Animal Welfare - Performance
People - Animal Welfare - Performance For personal use only Simplified Business We Have Nothing We Must be a Sustainable Customer Model to Hide Lower Cost Earnings Expectations Producer Safety Focus Animal Welfare New Free Range Determination Australian Hands on Culture Greater New Capital Re‐invest
Slide 11: Safety
Safety For personal use only All Injury Frequency Rate 43.47 Target: 20% decrease by FY17 35.21 26.36 22.74 19% decrease FY14 FY15 FY16 FY17 All Injury Frequency Rate (“AIFR”) calculated as the number of injuries per million hours worked. Includes permanent and casual and employees. Includes lost ti
Slide 12: Farm Pride Foods – Leading the way
Farm Pride Foods – Leading the way For personal use only Brand reputation has become a critical driver of repeat purchase. Food in particular is increasingly being sold on its provenance – both the transparency of the supply chain and where and how it is grown, harvested and processed. Free range pr
Slide 13: Farm Pride Foods – Leading the way
Farm Pride Foods – Leading the way For personal use only Farm Pride has partnered with Oritain, a world leader in scientifically proving the origin of products. This is an audit process which will provide for the independent certification of Farm Pride Foods free range eggs.
Slide 14: Farm Pride Foods – Leading the way
Farm Pride Foods – Leading the way For personal use only The result is that Farm Pride free range eggs can be guaranteed as being sourced from free range farms supported by a robust scientific approach to supply chain transparency. This will provide comfort to our customers and consumers, and confid
Slide 15: Farm Pride Foods – Leading the way
Farm Pride Foods – Leading the way For personal use only In response to changing consumer demand and buying habits, Farm For Farm Pride, the ability to Pride Foods have moved production transparently guarantee the origin of investment to non-cage methods. free range eggs is becoming increasingly imp
Slide 16: Improved Performance
Improved Performance For personal use only EBITDA ‐ Farm Pride Foods Ltd $'000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0
Slide 17: Improved Performance Continues
Improved Performance Continues For personal use only Borrowings ‐ Bank + Lease Finance Net Tangible Assets Bank & RPL $25.0 $40.0 Leases $35.0 $20.0 $30.0 $25.0 Million $ $15.0 Million $ $20.0 $37.4 $14.9 $14.7 $11.5 $15.0 $29.2 $10.0 $24.1 $9.8 $21.7 $21.9 $10.0 $20.9 $5.0 $5.0 $3.0 $6.1 $0.0 $4.4
Slide 18: Net Cash Flow From Operating Activity
Net Cash Flow From Operating Activity For personal use only
Slide 19: Half Year Revenue Last Eight Years
Half Year Revenue Last Eight Years For personal use only
Slide 20: Australian Retail Grocery Egg Sales
Australian Retail Grocery Egg Sales For personal use only Grocery Sales are the major supermarkets and some IGA’s with a weighting for other independents and an estimate for Aldi Courtesy AECL
Slide 21: Grocery Retail Report – June 2016
Grocery Retail Report – June 2016 For personal use only Grocery Sales are the major supermarkets and some IGA’s with a weighting for other independents and an estimate for Aldi Courtesy AECL
Slide 22: Australian Retail Grocery Egg Sales
Australian Retail Grocery Egg Sales For personal use only Grocery Sales are the major supermarkets and some IGA’s with a weighting for other independents and an estimate for Aldi Courtesy AECL
Slide 23: Australian Retail Grocery Egg Sales
Australian Retail Grocery Egg Sales For personal use only Grocery Sales are the major supermarkets and some IGA’s with a weighting for other independents and an estimate for Aldi Courtesy AECL
Slide 24: Australian Retail Grocery Egg Sales
Australian Retail Grocery Egg Sales For personal use only Grocery Sales are the major supermarkets and some IGA’s with a weighting for other independents and an estimate for Aldi Courtesy AECL
Slide 25: Australian Retail Grocery Egg Sales
Australian Retail Grocery Egg Sales For personal use only Grocery Sales are the major supermarkets and some IGA’s with a weighting for other independents and an estimate for Aldi Courtesy AECL
Slide 26: Grocery Sales Value of Eggs by Segment
Grocery Sales Value of Eggs by Segment For personal use only Courtesy AECL
Slide 27: Egg Consumption
For personal use only Egg Consumption
Slide 28: For personal use only
Eggo ere en unbeetable oource of folate for mume to be. The ourface of each eggonell oan contein so Due to tne variety of mutriente founc in eggo. A cource of omege-3 fete (the nealtny feto). many #0 17.000 tiny pores. ‘they are an ideal food to include in the diet of whioh oen have oignificent bene
Slide 29: For personal use only
For personal use only Courtesy AECL
Slide 30: For personal use only
For personal use only Courtesy AECL
Slide 31: Questions?
Farm Pride Foods Limited For personal use only Questions?
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