Australian Dairy Nutritionals Limited · ASX:AHF
Australian Dairy Nutritionals — Investor Presentation (December 2020)
23 slides from Australian Dairy Nutritionals's investor presentation, Dec 15, 2020
Slide 1: Growing Local, Going Global
Growing Local, Going Global Investor Presentation December 2020
Slide 2: Important Note & Disclaimer
Important Note & Disclaimer Overview This document is issued by Australian Dairy Nutritionals Group, which comprises Australian Dairy Nutritionals Limited (ABN 36 057 046 607) and Dairy Fund Management Limited (ACN 140 957 286) in its capacity as responsible entity of the Australian Dairy Farms Trus
Slide 3: Important Note & Disclaimer (cont.)
Important Note & Disclaimer (cont.) Distribution limited This document is for information purposes only and by receiving this document you represent and warrant that (i) if you are outside Australia, you are a person to whom an offer and issue of securities can be made outside Australia without regi
Slide 4: Building blocks in place for high-margin differentiated product
Building blocks in Australian Dairy Nutritionals Group Highlights place for high-margin differentiated product roll-out to drive brand Vertically integrated supply chain that can adapt quickly to Secure supply of raw milk with AHF farms transitioning to New production facility to produce nutritional
Slide 5: First Roll-Out: Future (Tummy Health) Formula Range Launch in Q4 FY21
First Roll-Out: Future (Tummy Health) Formula Range Launch in Q4 FY21 AHF will be launching a scientifically developed formula which will position AHF to capture market share in a high-margin product category Commentary Product Innovation Unique product range innovation to be disclosed closer to l
Slide 6: Followed by: Ecklin South Organic A2 Infant Formula Launch in Q2 FY22
Followed by: Ecklin South Organic A2 Infant Formula Launch in Q2 FY22 AHF recent transformation over the past three years has provided the platform for AHF to launch another unique infant formula product Commentary Few producers globally of organic A2 infant formula, therefore opportunity to price
Slide 7: Leveraging Expertise Across Multiple Business Segments
Leveraging Expertise Across Multiple Business Segments AHF’s value proposition is generated through its fully integrated business model combining ingredient and manufacturing expertise together with a growing portfolio of brand-led and consumer focused products High Margin R&D Dairy Specialist Brand
Slide 8: Why have we transformed?
Why vertical integration and focus on own branded products? Why have we Higher value/growth and margins across all speciality products – the global infant transformed? formula market is forecasted to reach US$109.10 billion by 2027 (10.6% CAGR)1 Brand equity in new and existing “own brands” deve
Slide 9: Progress and Delivering on Strategy
Progress and Delivering on Strategy Three years ago, AHF outlined a 5-year strategy to become a fully vertically integrated producer, manufacturer and supplier of our own branded dairy products. We continue to progress and deliver on the strategy as highlighted below: Objectives Milestones 90% of
Slide 10: Transformation almost complete
Transformation almost complete First infant formula sales expected in the second half of CY2021. Indicative timeline of milestones and achievements: 1 Infant Formula Plant 3 Expansion of The Collective rights to include sales and distribution purchase finalised 6 Future IF range launch expected in Q
Slide 11: Security of Supply Via Dairy Farms
Security of Supply Via Dairy Farms • AHF currently has raw milk supply including Organic, A2 and Jersey milk Our Operations in the Golden Triangle of from our farm properties which are 30 minutes away from our the South West Victoria Dairy Region processing facilities • All farms are on track to bec
Slide 12: Adding Infant Formula Processing Capability
Adding Infant Formula Processing Capability New Processing Capabilities: Focus on Higher Margin Products • AHF expects to complete Stage 1 of its Infant Formula Project by June 2021 transforming its processing capability to: • fresh and nutritional processing (milk, yoghurt, milk powders and infant
Slide 13: Acquisition of Blend & Packaging Line
Acquisition of Blend & Packaging Line • AHF has secured the right to purchase a high-speed blending and canning line from a significant overseas manufacturer which includes 2 Bosch fillers for infant formula tins and nutritional powder bags • High-capacity line with ability to produce in excess of 2
Slide 14: Marketing and Distribution Strategy
Marketing and Distribution Strategy As part of the launch strategy, AHF will engage a paediatrician (key opinion leader) to communicate our infant formula products point of differentiation and subsequent value proposition. We believe this strategy will assist in opening up new distribution channels
Slide 15: Board of Directors
Board of Directors Experienced board of Directors with a diverse set of skills to deliver on the strategy Martin Bryant Peter Skene Michael Hackett Adrian Rowley Paul Morrell Non-Executive Chairman CEO and Director Non-Executive Director Non-Executive Director Non-Executive Director • Martin Bryant
Slide 16: Senior Management Team
Senior Management Team Management team with diverse experience in the dairy industry and FMCG sector to execute strategy Graeme Willis Chris Melville Gary Black Jason Manos Graham Verbunt Kate Palethorpe GM Farms GM Operations QA & Compliance Manager GM Sales and Marketing Chief Financial Officer Co
Slide 17: Corporate Overview
Corporate Overview Board and Management have skin in the game and are aligned with shareholders interests Item Volume / Value Share Price Performance 7 $0.20 Share Price (as of 10 December 2020) 8.8 c $0.18 6 Market Capitalisation $32.7m $0.16 Volume Traded (million) Total Stapled Securities on Issu
Slide 18: Appendix
Appendix 1. Existing Processing Capacity 2. Financial Information
Slide 19: Existing Fresh Milk Processing Capabilities via Camperdown Dairy
Existing Fresh Milk • AHF’s existing fresh processing facility, Camperdown Dairy (CDC), is a fully certified Processing organic processor of milk, specialised yoghurt and butter with capacity to expand to over 100,000 litres per day (30 million litres per annum) Capabilities via • CDC has strong rel
Slide 20: Financial Results – Income Statement
Financial Results – Income Statement FY19 FY20 Change Commentary A$M A$M % Total Revenue 21.9 24.1 +10% • FY20 achieved 10% increase in Group revenue Cost of sales 17.2 18.6 +8% • Farm segment improved despite incurring the Gross Profit 4.7 5.5 +18% cost to convert to organic without receiving an Gr
Slide 21: Financial Results – Balance Sheet
Financial Results – Balance Sheet FY19 FY20 Change Commentary A$M A$M % Assets • NTA per stapled security of 8.2 cents at end Cash & equivalents 3.7 6.4 +70% of FY20 Trade & other receivables 2.5 2.2 (13%) Inventories 1.0 1.3 +26% • Strong asset backing in farms, plant, Biological assets 4.9 5.4 +9%
Slide 22: Financial Results – Cash Flow Statement
Financial Results – Cash Flow Statement FY19 FY20 Change Commentary A$M A$M % Cash flows from operations • Purchased infant formula plant in September Receipts from customers 22.0 25.3 +15% 2019 and transported plant from overseas to R&D tax incentive - 0.3 - Camperdown, Vic Payments to suppliers, e
Slide 23: Contact
Contact For additional information or media enquiry matters please contact: Peter Skene Group CEO / Director Australian Dairy Nutritionals Limited Email: shareholders@adfl.com.au 23
Australian Dairy Nutritionals — Investor Presentation (December 2020) on 6ix