Rural Funds Group · ASX:RFF
Rural Funds — 2007 Macgrove Project (MP07) — FY2020 Earnings Presentation
15 slides from Rural Funds's earnings presentation, Oct 13, 2020
Slide 1: 2007 Macgrove Project (MP07) Financial results presentation
Managed by: 2007 Macgrove Project (MP07) ARSN 119 560 235 Financial results presentation for the year ended 30 June 2020 13 October 2020
Slide 2: Disclaimer
Disclaimer Rural Funds Management Limited (RFM) AFSL 226701, has prepared this presentation based on information available to it. Although all reasonable care has been taken to ensure that the facts stated and opinions given in this presentation are fair and accurate, the information provided in thi
Slide 3: Contents
Contents 1. Industry harvest overview Presenters 2. FY20 financial results 3. Conclusion James Powell Scott Norval Sandra Walton General Manager – National Manager – Senior Funds Administrator Investor Relations Macadamias & Marketing 3
Slide 4: Industry harvest overview
Industry harvest overview Macadamias ready to be swept up for collection, Swan Ridge Qld, August 2020. 4
Slide 5: Industry update
Industry update Robust Australian industry. Global macadamia 2020 crop forecast¹ 12% ▪ Australian 2020 harvest conditions were favourable and overall crop quality has 33% been good. 14% ▪ The Australian 2020 crop is forecast to reach 45,000 tonnes nut-in-shell (NIS) at 10% moisture, down from 46,600
Slide 6: Harvest overview
Harvest overview Good growing season and ideal harvest conditions. • The 2019 harvest was completed in September. Flowering for the 2020 crop began in October 2019 and was followed by a good ‘nut set’ across all varieties. • Throughout the growing period (September to January) temperatures were abov
Slide 7: Irrigation and tree health monitoring
Irrigation and tree health monitoring Volumetric sap flow monitoring trials have progressed well. Sap flow monitoring - sample data over seven days • Cost efficient technology has been identified following various system trials. • The system integrates with the irrigation management software to prov
Slide 8: Yield and price
Yield and price Yield of 4.0 tonnes/ha and forecast price of $6.48/kg NIS. 1,000 $7.00 • Crop results were good: $6.50 • Total crop of 928 tonnes or 4.0 tonnes/ha (at 10% moisture), representing an increase of 25% on last 800 $6.00 season. • Sound kernel recovery 35.3%. $5.50 • Reject kernel recover
Slide 9: FY20 financial results
FY20 financial results Harvester at Swan Ridge, Bundaberg Qld, August 2020. 9
Slide 10: Cash flow and harvest timeline
Cash flow and harvest timeline The FY20 distribution is based on harvest proceeds of two crops received during the financial year. FY20 harvest proceeds July 19 Aug 19 Sept 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 2019 harvest period period 2020 harvest period 2019 harvest p
Slide 11: FY20 financial result
FY20 financial result Return to Growers of $2,342 inc. GST refund. Per Macgrove • Each Macgrove will is entitled to a combined distribution and GST Income refund of $2,342 which is 29% higher than FY19. This is driven by a combination of the timing of harvest proceeds and higher yields. Harvest proc
Slide 12: MP07 cash flow matrix ($/Macgrove)
MP07 cash flow matrix ($/Macgrove) The matrix sets out financial returns (distribution and GST refund) under a range of yield and price scenarios. Yield - t/ha NIS Low Medium High 4 4.5 5 Low $5.50 $864 $1,963 $3,061 Price - $/kg NIS Medium $6.00 $1,674 $2,874 $4,074 High $6.50 $2,484 $3,785 $5,086
Slide 13: Conclusion
Conclusion Harvested macadamia nuts, Bundaberg Qld, August 2020. 13
Slide 14: Conclusion
Conclusion Positive industry fundamentals and good assets. • Robust Australian macadamia industry. • Good management, maturing orchard, use of technology and additional harvest equipment continues to benefit MP07. • Yield of 4.0 tonnes/ha (up 25% on 2019) and indicative farm gate price of $6.48/kg N
Slide 15: 2007 Macgrove Project (MP07) contact details
Managed by: 2007 Macgrove Project (MP07) ARSN 117 859 391 Rural Funds Management Limited For further information: See how RFM is managing good assets with good people: ACN 077 492 838 David Bryant Rural Funds Management Limited For AFSLfurther 226701 information: Managing Director Level 2, 2 King St
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