Synlait Milk Ltd. · NZX:SML
Synlait Milk — Shareholder Meeting (November 2020)
27 slides from Synlait Milk's shareholder meeting presentation, Nov 25, 2020
Slide 1: Welcome to Synlait's Annual Meeting
WELCOME TO SYNLAIT’S ANNUAL MEETING Wednesday 25 November 2020
Slide 2: Asking a Question Online
PAGE 2 ASKING A QUESTION ONLINE • Click on the Q&A icon at the top of your screen. • Click on the box, type your question, and press the send arrow. • Your question will be asked at the appropriate part of the meeting. • Please ensure questions are succinct, clear and relevant to the meeting. • Ques
Slide 3: Voting Online
PAGE 3 VOTING ONLINE • When the poll is open, select the voting icon at the top of your screen. • To vote, click on your preferred option. The selected option will change colour. • There is no submit or send button, your selection is automatically recorded, although it can be changed up until the ti
Slide 4: Need Assistance?
PAGE 4 NEED ASSISTANCE? • Check the online voting guide. This is available on Synlait’s website. • Call the Computershare team on +64 9 488 8777.
Slide 5: Chair Address
PAGE 5 SYNLAIT MILK ANNUAL MEETING 2020 CHAIR ADDRESS Graeme Milne ONZM
Slide 6: Agenda
PAGE 6 SYNLAIT MILK ANNUAL MEETING 2020 AGENDA • Chair’s address • CEO’s address • Resolutions and voting • Other business Milk tanker and the pink pathway at Synlait Dunsandel
Slide 7: A Strong Result in an Extraordinary Year
PAGE 7 SYNLAIT MILK ANNUAL MEETING 2020 A STRONG RESULT IN AN EXTRAORDINARY YEAR 27% 9% 15% $ 1.3 B $ 75.2 M 49,180 MT REVENUE NPAT CONSUMER-PACKAGED INFANT FORMULA SALES 13% 9% 46% $ 171.4 M $ 203.7 M 30 MT EBITDA GROSS PROFIT LACTOFERRIN SALES
Slide 8: Implementing Our Strategy: Synlait Pokeno Commissioned; New Customer Announced
PAGE 8 SYNLAIT MILK ANNUAL MEETING 2020 IMPLEMENTING OUR STRATEGY Synlait Pokeno Commissioned; New Customer Announced • Second integrated processing facility established in North Island creates further supply chain efficiencies and site diversification. • Strategy pivoted from infant nutrition to nu
Slide 9: Implementing Our Strategy: Dairyworks and Talbot Forest Cheese
PAGE 9 SYNLAIT MILK ANNUAL MEETING 2020 IMPLEMENTING OUR STRATEGY Expanding The Synlait Network Via Category Diversification Dairyworks and Talbot Forest Cheese • Synlait is now closer to the consumer and owns a fully vertically integrated value chain. • Focus is now to generate: • Business and supp
Slide 10: Implementing Our Strategy: Fresh Milk and Cream, UHT Line
PAGE 10 SYNLAIT MILK ANNUAL MEETING 2020 IMPLEMENTING OUR STRATEGY Expanding The Synlait Network Via Category Diversification Fresh milk and cream line • First full financial year of sales. • Operational performance exceeded expectations. • Increased demand during COVID-19 met with almost 100% accur
Slide 11: Balance Sheet: $200 Million Equity Raise
PAGE 11 SYNLAIT MILK ANNUAL MEETING 2020 BALANCE SHEET: $200 MILLION EQUITY RAISE Offer rationale Offer summary Synlait is raising equity to: • NZ$180 million Placement fully subscribed, with NZ$167.2 million already settled. 1. Complete the investment phase of its strategy including the customisati
Slide 12: The Board's FY21 Areas of Focus
PAGE 12 SYNLAIT MILK ANNUAL MEETING 2020 THE BOARD’S FY21 AREAS OF FOCUS • FY21 is a year to consolidate and set ourselves up for success. We are focused on: • Delivery of strategy. • Ensuring good, efficient use of capital spend. • FY21 NPAT expected to be at or slightly below the FY20 NPAT result
Slide 13: CEO Address
PAGE 13 SYNLAIT MILK ANNUAL MEETING 2020 CEO ADDRESS Leon Clement
Slide 14: Synlait Started Its Journey as a Successful, High Growth, High Value Business
PAGE 14 SYNLAIT MILK ANNUAL MEETING 2020 SYNLAIT STARTED ITS JOURNEY AS A SUCCESSFUL, HIGH GROWTH, HIGH VALUE BUSINESS, BUT IT HAD A LOT OF STRATEGIC RISK.
Slide 15: Guided by Our Purpose, Ambition and Strategy
PAGE 15 SYNLAIT MILK ANNUAL MEETING 2020 WE CONTINUE TO BE GUIDED BY OUR PURPOSE, AMBITION AND STRATEGY HEART HEAD HANDS OUR PURPOSE OUR AMBITION OUR STRATEGY
Slide 16: Where We Were
PAGE 16 SYNLAIT MILK ANNUAL MEETING 2020 WHERE WE WERE SITE CATEGORY CUSTOMER MARKET DUNSANDEL INFANT NUTRITION CHINA AUSTRALIA
Slide 17: Where We Are Today
PAGE 17 SYNLAIT MILK ANNUAL MEETING 2020 WHERE WE ARE TODAY SITE CATEGORY CUSTOMER MARKET DUNSANDEL INFANT NUTRITION CHINA AUCKLAND LACTOFERRIN AUSTRALIA South Island Limited PALMERSTON NORTH FRESH MILK AND CREAM MULTINATIONAL LACTOFERRIN NEW ZEALAND CHINA CHEESE CUSTOMER HORNBY NEW MULTINATIONAL BU
Slide 18: COVID-19 Confirmed Our Strategy Is More Relevant
PAGE 18 SYNLAIT MILK ANNUAL MEETING 2020 COVID-19 CONFIRMED THAT OUR STRATEGY TO CREATE A STRONG, DIVERSE AND SUSTAINABLE SYNLAIT, IS MORE RELEVANT GIVEN THE UNCERTAIN WORLD AHEAD.
Slide 19: Our Journey
PAGE 19 SYNLAIT MILK ANNUAL MEETING 2020 OUR JOURNEY Create opportunities Extract and generate Build growth and reduce risk new value momentum Fill and develop Expand in response Build capability to demand PHASE 1 PHASE 2 PHASE 3
Slide 20: We Will Extract Value by Working the Mix
PAGE 20 SYNLAIT MILK ANNUAL MEETING 2020 WE WILL EXTRACT VALUE BY WORKING THE MIX ACROSS THE NEW OPPORTUNITIES WE HAVE CREATED SITE CATEGORY CUSTOMER MARKET DUNSANDEL INFANT NUTRITION CHINA AUCKLAND LACTOFERRIN AUSTRALIA South Island Limited PALMERSTON NORTH FRESH MILK AND CREAM MULTINATIONAL LACTOF
Slide 21: Converting Opportunities into Value
PAGE 21 SYNLAIT MILK ANNUAL MEETING 2020 Having invested in creating opportunities we must now focus on converting these into value. We have built the capacity and capability to deliver, now we need to focus on creating value that builds a more sustainable business, which is making a genuine contrib
Slide 22: Resolutions and Voting
PAGE 22 SYNLAIT MILK ANNUAL MEETING 2020 RESOLUTIONS AND VOTING
Slide 23: Resolution 1: Auditors' Remuneration
PAGE 23 SYNLAIT MILK ANNUAL MEETING 2020 RESOLUTION 1: AUDITORS’ REMUNERATION That the board be authorised to determine the auditors’ fees and expenses for the 2021 financial year. Voting online • Select the voting icon at the top of the screen. • To vote, click on your preferred option. The selecte
Slide 24: Resolution 2: Director Election
PAGE 24 SYNLAIT MILK ANNUAL MEETING 2020 RESOLUTION 2: DIRECTOR ELECTION Election of Simon Robertson as a Director. Voting online • Select the voting icon at the top of the screen. • To vote, click on your preferred option. The selected option will change colour. • There is no submit or send button,
Slide 25: Other Business
PAGE 25 SYNLAIT MILK ANNUAL MEETING 2020 OTHER BUSINESS Synlait Dunsandel
Slide 26: Asking a Question Online
PAGE 26 ASKING A QUESTION ONLINE • Click on the Q&A icon at the top of your screen. • Click on ‘Ask a question’ box, type your question, and press the send arrow. • Please ensure questions are succinct, clear and relevant to the meeting.
Slide 27: This Concludes Synlait's Annual Meeting
PAGE 27 SYNLAIT MILK ANNUAL MEETING 2020 THIS CONCLUDES SYNLAIT’S ANNUAL MEETING. Thank you for attending.