ARC Funds Limited · ASX:ARC
ARC Funds — FY2018 Earnings Presentation
11 slides from ARC Funds's earnings presentation, Aug 15, 2018
Slide 1: ARC Full Year Results Presentation
ARC Full Year Results Presentation For personal use only 14 August 2018
Slide 2: 2018 Full Year Results
2018 Full Year Results For personal use only • Net Profit after Tax of $1.28m • Driven by the value uplift in Namoi Cotton investment • Operating costs and business development costs remain under control and similar to previous year • NTA is 60 cents per share versus 49 cents at June 30, 2017 (+22%)
Slide 3: Namoi Cotton Investment
Namoi Cotton Investment For personal use only • Current Holding is 13.47m shares • Strategic Stake of 9.52 % of issued shares • Namoi Cotton full year net profit of $6.8m to Feb 2018 • Positive operating cashflows of $17.3m driven by ginning and cotton seed operations • NTA is remains above $1 per s
Slide 4: ARC Agrivest and Funds Management Business Development
ARC Agrivest and Funds Management Business Development For personal use only • 45 meeting conducted in period February to May 2018 seeking to raise $42m for a listed Agricultural Investment Company to be managed by ARC. • Further meetings and discussions ongoing • Unsuccessful in this first round in
Slide 5: The path forward for this business development opportunity
The path forward for this business development opportunity For personal use only • Source individual opportunities and seek to fund these with larger investors in an unlisted product managed by ARC, initially on a transaction by transaction basis • Keep the unlisted public company structure of ARC A
Slide 6: The Cattle Market and Financing
The Cattle Market and Financing For personal use only • Drought condition in Eastern Australia have created a surplus of all classes of cattle pushing values lower, the benchmark EYCI index now stands at 467 cents/kg, having peaked at 750 cents/kg in late 2016. • We have been waiting for these price
Slide 7: Plant Based Proteins
Plant Based Proteins For personal use only • Continued consumer demand for non animal sources of protein and the growth in Indian and other ASEAN economies bodes well for the chickpea, lentil, mung bean business alongside almonds. • We are working on an Almond development opportunity, which we belie
Slide 8: Grain Prices and the impact on Feed Costs
Grain Prices and the impact on Feed Costs For personal use only • Feed wheat prices well above $400 per tonne (all time high prices) • Cotton seed trading at $500 per tonne • Grain and fodder supply shortages will significantly impact production costs across dairy, pork, chicken, egg and grain fed c
Slide 9: Mackay Sugar Project
Mackay Sugar Project For personal use only • Large Queensland Sugar milling Co-operative, 6 million tonnes of cane crushing capacity. • Urgently requires equity capital injection to restore balance sheet and fund capex • ARC has done a significant amount of work on a potential recapitalisation , bas
Slide 10: Summary
Summary For personal use only • Solid profit, good cash levels, no debt • Namoi Cotton investment performing, more value to unlock • Funds management opportunity advanced, will now progress on a deal by deal basis • Cattle market offering good opportunities • Rural property market may have peaked an
Slide 11: Further Shareholder enquiries, please contact
Further Shareholder enquiries, please contact: For personal use only Mr James Jackson Executive Chairman T: 0402 435 762 E: james.jackson@ruralcapital.com.au