Slide 1: FY2018 Full Year Roadshow Presentation
FY2018 Full Year Roadshow Presentation For personal use only • Barry Irvin – Executive Chairman • Paul van Heerwaarden – CEO • Colin Griffin – CFO
Slide 2: Key Message
Key Message For personal use only • Creating the “Great Australian Food Company” • Bega Foods integration complete • Peanut Company of Australia integration complete • Financial performance at expectation • Increased milk supply • Continued growth in international business • Cheese packaging and pro
Slide 3: Revenue Highlights
Revenue Highlights For personal use only • Revenue $1.44 billion up 17% • Export sales $0.43 billion up 29% Bega Cheese Limited Page 3
Slide 4: Financial Performance
Financial Performance For personal use only • FY2018 dividend 11 cents per share • Normalised earnings per share 23.9 cents • Statutory earnings per share 15.6 cents • Normalised EBITDA $109.6 million • Statutory EBITDA $92.0 million • Normalised net profit after tax $44.0 million • Statutory net pr
Slide 5: Reconciliation of Statutory Normalised Result
Reconciliation of Statutory Normalised Result For personal use only Bega Foods Acquisition PCA PCA Koroit Per Financial Costs and Fair Acquisition Bargain Acquisition Other Normalised Consolidated Statements Value Adj Costs Purchase Costs Costs Outcome Period Ending 30 June 2018 $’000 $’000 $’000 $’
Slide 6: Balance Sheet
Balance Sheet For personal use only FY2018 FY2017 $m $m Cash 21.7 475.5 Trade and other receivables 200.6 168.5 Inventories 232.1 167.9 Property, plant & equipment 323.6 196.8 Intangible assets 411.5 22.7 Total Assets 1,215.8 1,056.3 Trade and other payables 225.9 169.3 Borrowings (net of costs) 267
Slide 7: Cash Flow
Cash Flow For personal use only FY2018 FY2017 $m $m Receipts from customers 1,499.9 1,274.9 Payments to suppliers (1,404.9) (1,190.7) Interest and other costs of financing paid (10.7) (3.2) Income tax paid (25.8) (10.7) Operating activities 58.6 70.2 Proceeds from sale of PPE 10.0 188.9 Tax on sale
Slide 8: Operations Review
Operations Review For personal use only • Total production 259,235 tonnes increased by 9% to previous year • Total capital expenditure of $46 million including business improvement ($21m), ERP ($17m) and compliance ($8m) • Key projects upgrading cream cheese, processed block line capability • Stage
Slide 9: Dairy commodity price and farm gate milk price
Dairy commodity price and farm gate milk price For personal use only • FY2018 total direct milk supply 750 million litres • FY2018 direct milk intake increased 97 million litres • Commodity price volatility remains • Koroit provides further growth opportunity • FY2019 milk procurement currently net
Slide 10: Our Sites
Our Sites For personal use only Four new sites • Port Melbourne • Kingaroy • Tolga • Koroit Bega Cheese Limited Page 10
Slide 11: Investing in People
Investing in People For personal use only • Development focus on safety behaviours, continuous improvement and innovation • Seamless integration of staff from Mondelez, PCA and Koroit acquisitions • Implemented the Aspire Leadership Program for developing young leaders of the future Bega Cheese Limi
Slide 12: Group Sales
Group Sales For personal use only 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $0.0b $0.2b $0.4b $0.6b $0.8b $1.0b $1.2b $1.4b $1.6b Bega Cheese Limited Page 12
Slide 13: Where are we Today?
Where are we Today? For personal use only • Integrated Australian dairy industry and food company exporting to over 40 countries • Significant new capacity added in dairy with the acquisition of Koroit • Successful milk procurement program • Strong international business growth • Stabilised dairy nu
Slide 14: Koroit Acquisition
Koroit Acquisition For personal use only • Dairy facility in western Victoria purchased for $250 million • Milk powder, nutritional dryers and butter manufacturing capacity • Retail packaging capacities in butter and powder • Milk supply guarantee 300 million litres until 30 June 2020 • Plant capaci
Slide 15: Our Priorities
Our Priorities For personal use only • Continue to grow branded retail and food service business • Increase production volumes at Koroit facility • Integrate Koroit into our production network • New milk pricing option for dairy farmers to encourage lower farm production costs • Increase peanut crop
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For personal use only
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Slide 18: Disclaimer
Disclaimer For personal use only The following disclaimer applies to this presentation and any information provided in this presentation (Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or any Information. This presentation