Australian Dairy Nutritionals Limited · ASX:AHF
Australian Dairy Nutritionals — Australian Dairy Farms Group — Investor Presentation (July 2017)
26 slides from Australian Dairy Nutritionals's investor presentation, Jul 11, 2017
Slide 1: AHF Strategy Overview 1-5 Year
Australian Dairy Farms Group 11 July 2017 ASX Code: AHF AHF STRATEGY OVERVIEW 1-5 YEAR For personal use only The AHF Board has prepared a Strategic Overview of its plans for the AHF Group which outlines the direction and anticipated outcomes for the Group during the next five years. There are signif
Slide 2: Further Details
Further Details For additional company information or media enquiry matters please contact: Peter Skene Group CEO/ Director Australian Dairy Farms Limited For personal use only Mob: +61 4 1859 2330 Email: peterskene@adfl.com.au Communications Policy As a policy, AHF does not respond to individual se
Slide 3: 2017-2022 Strategic Focus and Priorities Overview
For personal use only AUSTRALIAN DAIRY FARMS GROUP 2017-2022 STRATEGIC FOCUS AND PRIORITIES OVERVIEW ASX Code: AHF 11 July 2017 Australian Dairy Farms Group (AHF) consisting of: Australian Dairy Farms Limited ABN 36 057 046 607 and Australian Dairy Farms Trust ARSN 600 601 689
Slide 4: Strategic Overview
STRATEGIC OVERVIEW This Strategy Overview is published by the AHF Board to provide current and prospective V investors with a broad summary of the Board’s plans for the AHF Group over the next 5 years. E For personal use only The Board outlines it’s strategy to take AHF from its current position as
Slide 5: About Australian Dairy Farm Group
ABOUT AUSTRALIAN DAIRY FARM GROUP AHF is a vertically integrated dairy farmer, milk processor, distributor and marketer of a growing range of milk products with an emphasis on the premium and specialty segments of the Australian domestic and selected export dairy food For personal use only markets.
Slide 6: Disclaimer
DISCLAIMER Commercial in Confidence For personal use only 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 (expressed or implied) to apply for or purchase or to take a
Slide 7: A Foundation Year
Current Market A FOUNDATION YEAR Conditions Based on effective improvement in the quality and performance of the Group’s Farm Assets and a concerted effort by CDC management to increase sales and expand product lines, since the acquisition of CDC completed in April 2016, the Group has: For personal
Slide 8: Where We Are Now
WHERE WE ARE NOW 30 June 2017 AHF is a vertically integrated dairy farmer and milk processor with: For personal use only • 6 farms producing 17 million litres of milk per annum. • Well developed farms, which have benefitted from extensive value and production enhancing capital works since acquisitio
Slide 9: Improving Market Conditions
Current Market IMPROVING Conditions MARKET CONDITIONS Until relatively recently (2015-2016) a global over-supply of dairy production has decreased the Australian export returns for dairy products to below that on the domestic market, leading major processors to increase domestic supply and to pay si
Slide 10: SWOT
SWOT • Strengths • Weaknesses • Organic Processing certified • Dependence on retailers. factory. • Dominance of Commodity For personal use only • Experienced dedicated Senior and Product competition. Line Managers. • Narrow customer base. • Nimble and flexible in segregated • Concentration of capita
Slide 11: Where Will We Be in Years
WHERE WILL WE BE IN 5 YEARS The Board is actively working to move the Group from its current position to being an industry recognised producer and processor of a diverse range of Specialty Milk products with high margins and an owner or joint owner of successful valuable brands. For personal use onl
Slide 12: The Big Picture – Year Plan
THE BIG PICTURE – 5 YEAR PLAN The Big Picture – 5 Year Plan set out below is a group of outcome positions that the Board believes is realistic and achievable provided the foundations laid in the next one to two years are solid and well planned and implemented. For personal use only The implementatio
Slide 13: The Big Picture – Year End Game
THE BIG PICTURE – 5 YEAR END GAME T For personal use only R Owned brands A C Processing Highly Flexible E Wide value added range not A commodities B I Domestic distribution L Restructured Farm Assets I Distribution Retailers T Y Export Markets T O Milk powder drying Joint Ventures Dairy Farms Owners
Slide 14: The Big Picture – Farm Asset Restructure
THE BIG PICTURE – FARM ASSET RESTRUCTURE Farm Asset Restructure For personal use only The Board is in early stage negotiations with several independent semi-institutional groups with solid successful track records focused on owning and operating agriculture assets in a fund structure. With attractiv
Slide 15: Current Year – Processing & Distribution
CURRENT YEAR– PROCESSING & DISTRIBUTION Current Year Processing & Distribution For personal use only Since the acquisition of CDC completed in April 2016 the Group has: • added Woolworths as a retail outlet for CDC branded milk. • expanded the product with Jersey Milk and Free Range Milk. • establis
Slide 16: CDC's China Experience
CDC’S – CHINA EXPERIENCE At the time AHF acquired CDC, it had a relatively small (about 2% of total sales) supply agreement with an Australian based company with Chinese directors (Australia Lian He) to supply fresh milk to China by weekly shipments. For personal use only CDC was the processor named
Slide 17: Joint Venture Opportunities
JOINT VENTURE OPPORTUNITIES AHF is in continued development of several Joint Venture (JV) opportunities which are well advanced and prospective, however incomplete at the time of this document. They are primarily new segments and feasibilities on; For personal use only • UHT • Extended shelf life mi
Slide 18: Export Opportunities and Risks
EXPORT OPPORTUNITIES and RISKS The food market in many countries including China is very sensitive to regulatory change so there are significant and potentially For personal use only expensive risks if any one export market is a dominant component and unexpectedly undertakes a significant change. A
Slide 19: Organic Milk Market Opportunities
ORGANIC MILK MARKET OPPORTUNITIES The Australian organic milk market is small (estimated at about 70-80 million litres nationally) by comparison with the conventional milk market of around 9.6 billion litres annually. For personal use only For many years the Australian organic milk market was largel
Slide 20: Changes in Food Labelling
CHANGES IN FOOD LABELLING Australian and International Product Labelling Regulations • From 1 July 2018, Australian and International food product labelling requires all food packaging to provide the country of origin For personal use only and % of all ingredients in the product on labels, subject t
Slide 21: AHF Board and Senior Management
AHF BOARD AND SENIOR MANAGEMENT Directors Name Position Affiliations For personal use only Peter Skene Chief Executive Officer / Director Michael Hackett Chair / Director Chair of Trustees Australia Limited Adrian Rowley Non-Executive Director Senior Management Name Position Affiliations Jerome Jone
Slide 22: Corporate Structure
CORPORATE STRUCTURE Key Statistics Shares on Issue 197.6m For personal use only Market capitalisation as of 06.07.2017 $32.6m The securities on issue in AHF are stapled securities comprising one share in Australian Dairy Farms Limited (ADFL) and one unit Australian Dairy Farms Trust (ADFT). AHF has
Slide 23: Trustees Australia Limited and Directors Roles
TRUSTEES AUSTRALIA LIMITED AND DIRECTORS ROLES Prior to AHF relisting on ASX in 2014, Trustees Australia Limited (Trustees Australia) held a 34% interest in APA Financial Services Limited For personal use only which obtained shareholder approval to enter the Dairy Farming Industry and acquire the Fa
Slide 24: Investor Communications
INVESTOR COMMUNICATIONS AHF maintains a published policy on Investor Communications from individual security holders in respect of singular contact For personal use only regarding management of the Group. Due to the limited human communication resources in the group and the regulatory requirements o
Slide 25: Glossary
GLOSSARY TERM MEANING For personal use only is AHF’s terminology for non-traceable conventional cow milk collected from multiple farms and Commodity Milk mingled with other milk for processing mainly by large processors and used for standard bottled milk, cheese, yoghurt, butter and powders. means E
Slide 26: Directory
DIRECTORY For media matters please contact: For personal use only Australian Dairy Farms Group Email: shareholders@adfl.com.au Website: www.adfl.com.au Share Register Link Market Services Limited Address: Level 15, 324 Queens Street, Brisbane QLD 4000 Bus: +61 1300 554 474 Fax: +61 7 3228 4999 Email
Australian Dairy Farms Group — Investor Presentation (July 2017) on 6ix