Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — FY2022 Earnings Presentation
28 slides from Australian Agricultural's earnings presentation, May 19, 2022
Slide 1: FY22 Results Presentation
For personal use only FY22 Results Presentation 19 May 2022
Slide 2: Important Information
Important Information Summary information only This presentation contains general information about the Australian Agricultural Company Limited and its consolidated entities (“AACo”) and its activities current as at the date of this presentation. It is For personal use only information provided in s
Slide 3: Important Information
Important Information Any and all forecasts and financial information in this presentation are provided as a general guide only, and are not, and shall not be relied upon as, a promise or representation as to future matters. Some of the important factors that could cause AACo’s actual results, perfo
Slide 4: Contents
Contents For personal use only 6 Executive Summary Page 6 7 Our Strategy Page 7 9 Regional Performance Page 9 Financial Performance 15 Page 15 Sustainability Update 21 Page 21 22 Operating Environment Page 22 4
Slide 5: We're evolving together to benefit future generations
For personal use only We’re evolving together to benefit future generations 5
Slide 6: Executive Summary
Executive Summary For personal use only • Operating Profit of $49.9M up vs pcp $24.4M1 driven by improved operating margins mainly through: ~21% increase in average Wagyu meat sale price per Kg CW, partially offset by reductions in volume of meat sold. Higher cattle sales margins supported by re
Slide 7: Progress in FY22
Progress in FY22 For personal use only Delivering full potential +21% 83% +56% from our brands Wagyu Meat sales Branded Sales1 Westholme Branded Sales1 Growth $/Kg CW increase and Darling Downs North America 74k Executing on our Developed Sustainability Australian Carbon Sustainability Strategy Fram
Slide 8: Our Strategy – Positioning for growth
Our Strategy – Positioning for growth Strong growth potential leveraging the foundations put in place over the past four years For personal use only • Improving operational efficiency A simpler and more • Continuous improvement with a focus on test and learn efficient AACo • Embedding our S&OP proce
Slide 9: Regional Performance
For personal use only Regional Performance 9
Slide 10: Total Meat Sales Distribution
Total Meat Sales Distribution For personal use only Asia 61% 52% FY21 FY22 Asia ex China North America 50% 42% FY21 FY22 19% 26% FY21 FY22 Europe/Middle East 7% 11% FY21 FY22 Australia 13% 11% FY21 FY22 10
Slide 11: North America
North America For personal use only Branded Meat Sales 1 Sales Value Price/Mix Volume 56% 35% 21% Our focus in the USA has been a key driver of our improved results, with targeted allocation of product increasing Westholme’s brand awareness and helping us to optimise sales across the entirety of the
Slide 12: Asia
Asia For personal use only Branded Meat Sales 1 Sales Value Price/Mix Volume 15% 6% 21% Reduced volumes as higher valued cuts were reallocated away from retail into food service markets around the world as part of our overall global strategy. Solid price increases were achieved in this region: • Dar
Slide 13: Australia
Australia For personal use only Branded Meat Sales 1 Sales Value Price/Mix Volume 17% 7% 24% Focus has been on price premiumisation through brand as we optimise supply across the carcass, reallocating cuts away from Australia to enhance returns globally in line with our overall strategy. • Westholme
Slide 14: Europe/Middle East
Europe/Middle East For personal use only Branded Meat Sales 1 Sales Value Price/Mix Volume 41% 23% 18% Predominantly food service focused, this region saw robust volume increases in FY22 as part of post-COVID recovery. • Execution of in-market chef focused events and product sampling programs leadin
Slide 15: Financial Performance
Financial For personal use only Performance 15
Slide 16: Highlights
Highlights Cash Flow / Net For personal use only Growth Profit Assets Meat Operating Operating Sales Profit Cash Flow $208.5M $49.9M $24.2M + 4% vs pcp + 105% vs pcp + 32% vs pcp Wagyu Meat Operating Net Tangible Sales Price Profit Margin Assets $18.74/kg 18.1% $2.27/Share + 21% vs pcp + 9 ppt vs pc
Slide 17: Revenue
Revenue FY22 revenue driven higher vs pcp in line with improved price realisation, offset by lower sale volumes. For personal use only Meat Sales Revenue: +$8.5M Cattle Sales Revenue: +$2.0M ($28.3M) $36.8M Kg CW $/Kg (14%) $8.9M ($6.9M) $276.0M + 21% Kg LW $/Kg (11%) $265.5M + 15% Total Revenue Pri
Slide 18: Profit & Loss Summary
Profit & Loss Summary Profit and Loss Summary ($M) FY22 FY21 Var Improved sales margins driving positive operating For personal use only Meat Sales 208.5 200.0 8.5 profit of $49.9M vs $24.4M1 pcp. Cattle Sales 67.5 65.5 2.0 Total Sales Revenue 276.0 265.5 10.5 Higher total gross margin of $28.7M vs
Slide 19: Cash Flow Summary
Cash Flow Summary For personal use only Positive operating cash flow generation of $24.2M vs $18.4M pcp. Consolidated Statement of Cash Flows ($M) FY22 FY21 Var Higher net operating cash flow vs pcp driven primarily by: Receipts from Customers 297.3 285.9 11.4 • Increased revenue receipts. Payments
Slide 20: Balance Sheet Summary
Balance Sheet Summary 31 March 31 March Consolidated Statement of Financial Position ($M) Strengthening of financial position with net assets now 2022 2021 For personal use only $1.36B and NTA of $2.27/Share. Livestock 736.2 537.4 • Significant market related increase of underlying property values o
Slide 21: Sustainability Strategy Framework & Commitments
Sustainability Strategy Framework & Commitments For personal use only Our Commitments Landscape Carbon • Commenced soil carbon collaboration initiative to research and develop a more efficient method for measuring soil carbon sequestration by satellite. Natural Capital • Project started to develop f
Slide 22: Operating Environment
For personal use only Operating Environment 22
Slide 23: Operating Outlook
Operating Outlook For personal use only Continued growth in demand for quality Australian beef within environment of inflationary cost pressures • Global supply chains will continue to be impacted by increased geopolitical risk. • Rising inflationary pressure impacting cost of key inputs across the
Slide 24: Closing Remarks
For personal use only Closing Remarks 24
Slide 25: Questions
For personal use only Questions
Slide 26: Appendix
For personal use only Appendix
Slide 27: Definitions
Definitions Term Definition Cost of Goods Sold (COGS) valued “at cost” Represents the actual production cost the Company incurred over the multi-year timeline required to produce the meat and cattle that was sold during the period. This is in contrast to Cost of Goods Sold as presented in the statut
Slide 28: The Art of Australian Beef
For personal use only co THE ART OF AUSTRALIAN BEEF
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