Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — Investor Presentation (May 2011)
21 slides from Australian Agricultural's investor presentation, May 9, 2011
Slide 1: Capital Raising Presentation
For personal use only AUSTRALIAN AGRICULTURAL COMPANY LIMITED Capital Raising Presentation 9 May 2011 0 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Disclaimer and important notice
Disclaimer and important notice For personal use only This presentation (“Presentation”) has been prepared by Australian Agricultural Company Limited (ABN 15 010 892 270) (“AAco”). The Presentation is in relation to: (a) a placement of fully paid ordinary shares in AAco (“Shares”) to the value of ap
Slide 3: Disclaimer and important notice
Disclaimer and important notice For personal use only Not an offer No action has been taken to register the Shares, or otherwise permit a public offering of Shares, in any jurisdiction outside of Australia and New Zealand. The distribution of this Presentation outside Australia and New Zealand may b
Slide 4: Outline
For personal use only Outline Executive Summary Investment highlights Company profile and strategy Equity raising summary Trading update and outlook 3 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 5: Executive Summary
For personal use only Executive Summary • $56.3 million institutional placement at $1.42 per share through the issue of approximately 39.6 million Equity raising shares • Placement fully underwritten by UBS AG, Australia Branch (joint lead managers: UBS AG, Australia Branch and LINWAR Securities) •
Slide 6: Investment highlights
For personal use only Investment highlights Rising global demand for protein Global food scarcity Growing populations and incomes driving increased consumption in Shift from supply‐push to demand pull market, favouring producers developing countries like AAco Per capita consumption of livestock prod
Slide 7: Investment highlights
For personal use only Investment highlights Significant growth across the trading herd Improving land utilisation Focus on higher return land improving efficiency of asset base 14% growth in total herd in FY10 30% growth in trading herd in FY10 15.8 14.8 14.7 14.2 577.11 12.6 1 Hectares / head 507.7
Slide 8: Company profile
For personal use only Company profile Overview Business composition1 (FY10) AAco is one of the world’s leading beef producers with 577,144 cattle1 on 18 stations, two feedlots and two farms Assets Revenue EBITDA During 2011, AAco acquired a further approximately $1,073m $263m $41m 53,000 cattle
Slide 9: Divisions
For personal use only Divisions Live cattle Wholesale boxed beef division Revenue derived from live cattle sales (166k cattle sold in FY10) Distributes branded beef to restaurants, wholesalers and consisting of: live export (27%), breeder and feeder cattle (20%), supermarkets short fed grain fin
Slide 10: AAco business model
For personal use only AAco business model Live cattle division Wholesale boxed beef division Meat processing Breeding Herd Trading Herd (Grass feeding / feedlotting) (currently outsourced Branded sales to facilities in South East Qld) • Fertility and re‐breeding rates • Kilograms of beef produced •
Slide 11: Asset overview
For personal use only Asset overview • Herd of approximately 577k cattle valued at $414 million as Asset composition1 Livestock at 31 December 2010 Comprises +90% of livestock and property • To be increased by a further 53k as a result of the Tipperary 5% herd acquisition 39% 56% • 6.7 million hecta
Slide 12: Strategy
Strategy For personal use only Delivering on the three year strategic plan Evolution from pastoral company to integrated beef producer and processor Strategic initiatives Strategy Progress so far Improved land • Focus on higher returning land • Tipperary agistment agreement utilisation • Rebalance l
Slide 13: Equity raising—summary
For personal use only Equity raising—summary Structure Placement to institutional and sophisticated investors plus a Share Purchase Plan (SPP) Placement size $56.3 million fully underwritten Placement price $1.42 per share, implying approximately a 8.4% discount to last close Placement shares to be
Slide 14: Equity raising—use of proceeds
For personal use only Equity raising—use of proceeds • Equity raising proceeds used to provide financial flexibility to pursue growth consistent with AAco’s Use of proceeds strategic plan whilst maintaining target leverage levels of less than 40%1 – approximately $31.4 million to repay debt relating
Slide 15: Equity raising—pro forma impact
For personal use only Equity raising—pro forma impact • Pro forma financials post equity raising Pro forma impact − gearing (net debt / total tangible assets) 29% − total net debt $315 million • AAco intends to target gearing levels going forward of less than 40% (net debt / total tangible assets) P
Slide 16: Earnings guidance
For personal use only Earnings guidance 2011F earnings guidance 2011F earnings guidance1 • AAco expects to deliver EBITDA (after deducting significant items) in the range of approximately $60 to $65 million for A$m; Dec y/e 2010A 2011F Change (%) 2011F, weighted primarily towards the second half EBI
Slide 17: Indicative timetable
For personal use only Indicative timetable Placement Trading halt begins Monday, 9 May 2011 Bookbuild opens Monday, 9 May 2011 Bookbuild closes Monday, 9 May 2011 Trading halt lifted Tuesday, 10 May 2011 Equity raising settlement Friday, 13 May 2011 New shares allotted and commence trading Monday, 1
Slide 18: Foreign selling restrictions
For personal use only Foreign selling restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. New Shares may not be offered or sold in any country outside Australia except to the extent permitted
Slide 19: Foreign selling restrictions (cont'd)
For personal use only Foreign selling restrictions (cont’d) Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies Ordinance (Cap. 32) of Hong Kong (the "Companies Ordinance"), nor has it been authorised by the Securities and Futures Commission
Slide 20: Foreign selling restrictions (cont'd)
For personal use only Foreign selling restrictions (cont’d) Malaysia This document may not be distributed or made available in Malaysia. No approval from the Securities Commission of Malaysia has been or will be obtained in relation to any offer of New Shares. The New Shares may not be offered or ma
Slide 21: Foreign selling restrictions (cont'd)
For personal use only Foreign selling restrictions (cont’d) Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other
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