Arborgen Holdings Limited · NZX:ARB
Arborgen — FY2022 Earnings Presentation
20 slides from Arborgen's earnings presentation, Jun 27, 2022
Slide 1: FY22 Results Presentation
FY22 Results Presentation For the 12 months ended 31 March 2022 27 June 2022
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by ArborGen Holdings Limited (“ArborGen”), to provide an overview of the performance of ArborGen and its activities at the date of this presentation. It is not prepared for any other purpose and must not be provided to any person other than the intended
Slide 3: Our Strengths
Our Strengths ArborGen is the leading global commercial Unparalleled product portfolios in each of our core markets provider of advanced genetics Decades of investment in research and intellectual property tree seedling products Own one of the world’s largest and most diverse repositories of c
Slide 4: Our Product Portfolio
Our Product Portfolio We are advancing genetics through breeding Open Pollinated: OP Advanced, Select and Elite Produced from best mother and fertilized with pollen of an unknown father tree ELITE GENETICS PRODUCTS MCP®: Advanced, Select, Elite, 2.0 Seedlings produced from best mother and father. Ar
Slide 5: Our Value Proposition
Our Value Proposition ArborGen has the most advanced and most broadly adapted MCP pipeline in the industry Value Drivers: (Productivity + Log Quality) x Price = Value Quality traits Lack of log defects controlled by three traits (refer pictures below) determine the proportion of trees qualifying as
Slide 6: Our Traditional End Markets
Our Traditional End Markets Supported by strong underlying fundamentals • US housing market supported by strong long-term fundamentals: • An underbuilt US housing stock resulting from years of underbuilding • An aging US housing stock … median age of an owner-occupied Primary End Markets house now o
Slide 7: FY22 Performance
FY22 Performance All financial results are in US dollars (US$) unless otherwise stated Results are for continuing operations only and exclude the ANZ business which was sold in FY22 FY21 numbers have been restated to be continuing operations only 7
Slide 8: FY22 Operating Environment
FY22 Operating Environment Impacted by evolving supply chain issues, labour shortages and inflationary pressure United States: • Global pandemic, including emergence of Delta and Omicron variants, continued to cause significant disruptions ranging from transportation issues to labour shortages • Res
Slide 9: FY22 Commercial Highlights
FY22 Commercial Highlights Long term value proposition becoming more evident Record US sales of advanced genetics seedlings, up 32% year on year Advanced genetics seedling sales to private landowner segment up almost 60% year on year Completion of strategic review and Board-approved strategy t
Slide 10: FY22 Financial Snapshot
FY22 Financial Snapshot Pleasing results despite the ongoing USD $m FY22 FY21 % change impact of the pandemic Restated Revenue 47.6 42.8 +11% Increased availability of advanced genetics seedlings, and higher customer Operating Earnings (before 2.7 1.0 +170% demand, driving sales and earnings oth
Slide 11: Two Year Performance
Two Year Performance Revenue* Adjusted US GAAP EBITDA* NPAT* 50 12 2.0 40 10 1.5 8 30 6 1.0 20 4 10 0.5 2 0 0 0.0 FY21 FY22 FY21 FY22 FY 21 FY 22 Operating Cash Flow Net Debt 10 30 8 25 20 6 15 4 10 2 5 0 0 FY21 FY22 FY21 FY22 * Continuing operations 11
Slide 12: FY22 Revenue and Seedling Sales
FY22 Revenue and Seedling Sales ArborGen Seedling Sales Volume • Record US sales of MCP seedlings Sales volume Sales volume • MCP & varietal sales comprised FY22 (m units) FY21 (m units) 42% of total US loblolly pine sales volume but delivered 66% of US USA 284 294 loblolly sales revenue USA Lobloll
Slide 13: FY22 Revenue and Seedling Sales
FY22 Revenue and Seedling Sales Sales Revenue Sales Volume US Loblolly US Loblolly by Region by Region Pine Revenue Pine Sales Volume South America USA South America USA OP Advanced genetics OP Advanced genetics 13
Slide 14: Financial Reconciliation
Financial Reconciliation Reconciliation of NZ IFRS to US GAAP EBITDA Reconciliation of US GAAP EBITDA* Fiscal year ending March 2022 2021 Fiscal year ending March 2022 2021 Per Published IFRS Financial Statements ArborGen - US GAAP NPAT 1.7 1.5 Revenue 47.6 42.8 Less tax benefit -4.7 -0.6 Gross Marg
Slide 15: Our Strategy: Growing Our Future
Our Strategy: Growing Our Future 15
Slide 16: Strategic Pathways
Our Strategy: Growing Our Future Pathways Strategic Investigate the Opportunity Invest in Resources Increase Sales of Advanced Genetic in Emerging High Growth and Capability to Realise Seedlings in Targeted Markets Carbon Markets ArborGen’s Potential • Continued conversion of customers • Actively en
Slide 17: US South
US South Core traditional high growth market • Strong longer term underlying fundamentals supporting the US housing market (ArborGen’s core end market) • Timber access and supply in Western Canada and Central Europe has seen more timber companies purchasing or building mills in US South • Forest Eco
Slide 18: Brazil
Brazil Emerging traditional high growth market • Strong underlying market dynamics – increasing domestic and export demand, new pulp mills and strong charcoal markets resulting from increasing iron metal demand, collectively driving strong local demand for eucalyptus and softwood Driving growth • On
Slide 19: Global Carbon Markets
Global Carbon Markets Emerging market • Increasing focus on the importance of reducing greenhouse gases globally – forests play an important role • Forest based carbon projects will be increasingly important in creating new demand for both pine and hardwood seedlings • Carbon project developers are
Slide 20: Outlook
Outlook Benefits of long term focus on advanced genetics is becoming clear and adoption by landowners is increasing Well poised to benefit from leadership position in tree improvement technology, and as the leading commercial supplier of advanced genetics in the US South and Brazil Increasing