Australian Dairy Nutritionals Limited · ASX:AHF
Australian Dairy Nutritionals — Australian Dairy Farms Group — Shareholder Meeting (July 2016)
18 slides from Australian Dairy Nutritionals's shareholder meeting presentation, Jul 29, 2016
Slide 1: Presentation for the Extraordinary General Meeting
Presentation for the Extraordinary General Meeting Australian Dairy Farms Group (AHF) Friday 29 July 2016 For personal use only Transitioning for Profit and Growth Positioning AHF for the Future 1
Slide 2: Disclaimer
Disclaimer For personal use only Commercial in Confidence This Presentation contains general information only and is, or is based upon, information which has been released to ASX. This document is not an invitation, offer or recommendation (express or implied) to apply for or purchase or take any ot
Slide 3: Overview – Key Points
Overview – Key Points For personal use only AHF - Appointment of Peter Skene as Group CEO and Director of AHF with focus to drive profit and growth. - Opportunities to partner and joint venture with successful established parties for growth and diversification. - AHF transitions from dairy farmer to
Slide 4: AHF Transitions
AHF Transitions AHF CDC For personal use only Australian Dairy Farms Group listed on ASX On 22 December 2015 AHF signed contracts GROUP STRATEGY in October 2014. to acquire Camperdown Dairy Company Pty Ltd (CDC), which completed on 15 April 2016. Drainage and water retention expenditure benefits far
Slide 5: 2016 Dairy Industry Market Environment
2016 Dairy Industry Market Environment 1. The financial year 2015 – 2016 was a very disappointing year for both the global and Australian dairy industry. For personal use only 2. This came following recent years expectations of major shortages and thus high raw milks prices • “China’s dairy demand f
Slide 6: Global Dairy Industry
For personal use only Global Dairy Industry • Major increases in global supply as production rapidly escalated after quota removal in EU • As 40% of AU milk is exported domestic farmgate farm milk prices have been adversely impacted. • Some recovery is expected as production levels in EU are seen as
Slide 7: Global Dairy Industry
For personal use only Global Dairy Industry • Global whole milk powder at lowest returns in 5+ years. • This is one of the drivers of farm milk price returns. • Removal of quotas in Europe. • Increased production in USA. • Forecast by economists to recover in late 2017. 7
Slide 8: AHF FY 2016 Financial Estimates
AHF FY 2016 Financial Estimates For personal use only 1. Financial results for AHF remain a work in progress and have not yet been audited due to: • Complex integration of CDC into group accounts following delayed completion on 15 April 2016 and post completion adjustment which were settled on 28 Ju
Slide 9: AHF FY 2016 Financial Estimates
AHF FY 2016 Financial Estimates For personal use only Impacts and future expectations for 2017 Financial Year. Issue 2016 Financial Management action Impact Fodder production loss 400k • Extensive drainage work on all farms including dams and effluent ponds • Irrigation from ponds to water and ferti
Slide 10: Earthworks development on farms
Earthworks development on farms For personal use only 10
Slide 11: First months of AHF-CDC
First 3 months of AHF-CDC For personal use only Integration CDC branded progressing very well Regional and Fist Quarter milk products have on all levels including Melbourne metro volumes for CDC are commenced being management, staff independent ranged in forecast to be up by and financial ranging ro
Slide 12: CDC Capacity Target
CDC Capacity Target For personal use only CDC Target Capacity Utilisation 0.9 • At end of current 0.8 financial year, we will have moved 0.7 towards optimum 0.6 asset utilization. 0.5 0.4 0.3 0.2 0.1 0 Q1 Last Fin year Current run rate Target by end of Current Financial year 12
Slide 13: CDC Value Proposition
For personal use only CDC Value Proposition 1. High quality natural dairy products. 2. Solution provider – Farmers own and running JV company with ODFA etc. 3. Contract packer – Aussie farmers Direct. 4. Flexible – Big enough (capacity to add value) and small enough make it happen in a timely manner
Slide 14: Milk supply
Milk supply On Tuesday the 2nd of August 2016 (one day For personal use only after the completion of the current CDC milk supply agreement), we will commence transition arrangement to supply CDC milk. Raw milk supply is complex due to highly perishable nature of raw milk, seasonality, compliance, qu
Slide 15: Management Structure
Management Structure AUSTRALIAN DAIRY FARMS GROUP For personal use only (ASX LISTED as AHF) AUSTRALIAN DAIRY FARMS TRUST AUSTRALIAN DAIRY FARMS LIMITED1 (ADFT) (ADFL) MICHAEL HACKETT ADRIAN ROWLEY PETER SKENE KEITH JACKSON Chairman Director AHF Group CEO Director (Executive Duties)2 (Executive Dutie
Slide 16: Corporate Profile
Corporate Profile For personal use only Corporate Statistics – 22 July 2016 ASX Code AHF Security price $0.19 12 month security price range $0.125-0.59 Stapled Securities on issue 181,005,330 Number of Security-holders 4,508 Convertible Notes (240 each A$10k face value, converts $2.4m A$0.20, repaym
Slide 17: Growth Opportunities
For personal use only Growth Opportunities Expand CDC Export Expand Brand New Product Farm Optimisation Retail & Food Product Distribution Development Australia Service Offering • CDC is one of two players exporting to China with rapid clearance accreditation for fresh milk. The Business Export to
Slide 18: For Further Information
For Further Information For personal use only For additional company information or media matters please contact: Adrian Rowley Peter Skene James Moses Director Group CEO / Director Managing Director Australian Dairy Farms Limited Australian Dairy Farms Limited Mandate Corporate Bus: +61 3 9629-9900
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