Australian Agricultural Company Limited · ASX:AAC

Australian Agricultural — FY2016 Earnings Presentation

15 slides from Australian Agricultural's earnings presentation, May 25, 2016

  1. Slide 1: Financial Results Presentation for the Year ended 31 March 2016

    AUSTRALIAN AGRICULTURAL COMPANY Financial Results Presentation for the Year ended 31 March 2016 25 May 2016 co

  2. Slide 2: Important information

    Important information Summary information only This presentation contains general information about the Australian Agricultural Company Limited and its consolidated entities (“AACo”) and its activities current as at the date of this presentation. It is provided in summary and does not purport to be

  3. Slide 3: Year in review, Financial performance, Q&A

    1. Year in review – Jason Strong For personal use only 2. Financial performance – Andrew Slatter 3. Q&A 3

  4. Slide 4: Strengthening supply chains

    For personal use only • Strengthening supply chains Strategy • Implementing a differentiated branding strategy • Applying innovation and technology to the business • Total kilograms sold of beef & by-products up 96% Operations • Total kilograms sold of wagyu beef & by-products up 15% • Safety – Lost

  5. Slide 5: Business performance is improving: Selling more beef

    Business performance is improving: For personal use only • Selling more beef • Increasing total revenue and margin by owning cattle through the supply chain • Maintaining a stable breeding herd FY14 FY15 FY16 Total sales revenue ($m) 309 338 489 Beef sales (% of total sales) 61% 79% 88% Live interna

  6. Slide 6: Increasing revenue and margin

    For personal use only Increasing revenue and margin by: • Sourcing more cattle internally • Reducing number of external processing facilities • Consolidating external backgrounding and feedlot operations • Upgrading Pell Station logistics hub 6

  7. Slide 7: Completing brand-based customer review

    • Completing brand evaluation and refinement in key markets For personal use only • Completing brand-based customer review • Benefiting from higher pricing that reflects a premium brand • Ongoing recognition of our premium products 7

  8. Slide 8: Investing to improve the consistency and predictability of beef production

    For personal use only • Investing to improve the consistency and predictability of beef production • Focusing on the sustainable productive capacity of assets by employing: • Data analytics • Pasture mapping • Grazing management and supplementation • Genetics 8

  9. Slide 9: Increasing quality and value of breeding herd

    • Reducing non-wagyu trading cattle For personal use only • Increasing quality and value of breeding herd 598 (13) (9) 1 (2) (2) (4) (39) (3) 527 Tipperary & Breeding herd remained Trading and feedlot herd Litchfield largely unchanged Opening Herd Non Wagyu Wagyu Breeding Breeding Non Wagyu store No

  10. Slide 10: Safety: reduction in injuries and LTIFR

    • 22% reduction in first-year employee injuries For personal use only • Reduction in three critical risk areas; cattle (12%), horses (32%), motorbikes/quads (56%) 85 78 75 65 52 55 45 35 29 25 AACo LTIFR 10

  11. Slide 11: Financial performance – Andrew Slatter

    1. Year in review – Jason Strong For personal use only 2. Financial performance – Andrew Slatter 3. Q&A 11

  12. Slide 12: Higher live cattle sales prices offsetting lower volumes

    • Total kilograms sold of beef & by-products up 96% For personal use only • Higher live cattle sales prices offsetting lower volumes • Internal supply of cattle replacing external purchases $m FY16 FY15 Improvement Total sales revenue 489.4 338.2 151.2 Operating EBITDA 14.8 (3.6) 18.4 Statutory EBIT

  13. Slide 13: Operating cash flow increased by $98m

    For personal use only • Operating cash flow increased by $98m • Investing activities decreased with Livingstone becoming operational in FY16 $m FY16 FY15 Improvement Net operating cash flow 21.8 (75.9) 97.7 Cash used in investing activities (19.4) (66.3) 46.9 Cash flows from financing activities 0.0

  14. Slide 14: Increase in value of livestock and PPE

    • $98m increase in value of livestock For personal use only • $73m increase in value of PPE • Improvement in gearing ratio, NTA per share and days working capital FY16 FY15 Improvement Livestock ($m) 563.2 465.2 98.0 PPE ($m) 741.8 668.4 73.4 Gearing ratio 29.0% 32.5% 3.5% Net tangible assets ($/sha

  15. Slide 15: Year in review, Financial performance, Q&A

    1. Year in review – Jason Strong For personal use only 2. Financial performance – Andrew Slatter 3. Q&A 15

Australian Agricultural Company — FY2016 Earnings Presentation on 6ix