Synlait Milk Ltd. · NZX:SML
Synlait Milk — Shareholder Meeting (December 2022)
45 slides from Synlait Milk's shareholder meeting presentation, Dec 2, 2022
Slide 1: Welcome to Synlait's Annual Meeting
WELCOME TO SYNLAIT’S ANNUAL MEETING 2 December 2022 Doing Milk Differently For A Healthier World
Slide 2: Voting Online
VOTING ONLINE • Voting is now open. • To vote, click on the vote tab, and select your preferred option. Once your vote has been cast a tick will appear. • You can vote for all resolutions at once or by each resolution. • There is no submit or send button, your selection is automatically recorded. It
Slide 3: Asking a Question Online
ASKING A QUESTION ONLINE • To ask a question click on the Q&A icon. • Click on the box, type your question, and press submit. • Your question will be asked at the appropriate part of the meeting. • Please ensure questions are succinct, clear and relevant to the meeting. • Questions submitted ahead o
Slide 4: Need Help?
NEED HELP? • Check the virtual meeting guide on Synlait’s website. • Call the Computershare team on +64 9 488 8777 • Use the Q&A tab to message a Computershare representative. PAGE 4 SYNLAIT’S ANNUAL MEETING 2022
Slide 5: Chair Address
CHAIR ADDRESS Dr John Penno PAGE 5 SYNLAIT’S ANNUAL MEETING 2022
Slide 6: Today's Agenda
TODAY’S AGENDA • Chair Address • CEO Address • Resolutions and Voting • Other Business PAGE 6 SYNLAIT’S ANNUAL MEETING 2022
Slide 7: After a difficult FY21, Synlait is now well into a comprehensive turnaround
AFTER A DIFFICULT FY21, SYNLAIT IS NOW WELL INTO A COMPREHENSIVE TURNAROUND STRONG FY22 CASH FY22 RESULTS: FLOWS ENABLED: $214.5M 33% 232.9 M 96.3 M • Significant debt repayment. $ $ • Completion of major CAPEX (includes Pokeno). OPERATING CASH FLOW CAPEX • SAP implementation. 29% 79% 77% • Total av
Slide 8: Executive Leadership Team and Strategy Refreshed
EXECUTIVE LEADERSHIP TEAM AND STRATEGY REFRESHED COMPLETED Naiche Nogueira Paul Mallard Director of Director of Strategy, Innovation Advanced Nutrition and Corporate Affairs Charles Fergusson In Progress Director of On-Farm Excellence President China and and Business Sustainability Director of Foods
Slide 9: Synlait's world class advanced nutrition capabilities position it for accelerated growth
SYNLAIT’S WORLD CLASS ADVANCED NUTRITION CAPABILITIES POSITIONS IT FOR ACCELERATED GROWTH This is underpinned by our strong and enduring relationship with The a2 Milk Company, dating back ten years. • State Administration for Market Regulation (SAMR) licence for The a2 Milk Company’s Chinese labelle
Slide 10: Synlait's new multinational customer has the potential to be its largest within five years
SYNLAIT’S NEW MULTINATIONAL CUSTOMER HAS THE POTENTIAL TO BE ITS LARGEST WITHIN FIVE YEARS Relationship with Synlait Pokeno’s new multinational customer expected to fill this facility in time. • Strong relationship and building. • Commercial production to start in early 2023, with product planned fo
Slide 11: A world leading lactoferrin business has been built at Dunsandel
A WORLD LEADING LACTOFERRIN BUSINESS HAS BEEN BUILT AT DUNSANDEL AND IS EXTREMELY PROFITABLE • A study by the University of California Davis found that Synlait lactoferrin is one of the best performing lactoferrin products globally for infant nutrition. • Demand primarily driven by the China infant
Slide 12: Synlait is well positioned as the Chinese infant formula market changes shape
SYNLAIT IS WELL POSITIONED AS THE CHINESE INFANT FORMULA MARKET CHANGES SHAPE • Active engagement with the top eight infant formula brand owners in the Chinese market. • In FY23, Synlait was successfully approved as a third party manufacturer (TPM) of paediatric powders with a leading China-based in
Slide 13: Diversified customer, channel, category and geographical growth
DIVERSIFIED CUSTOMER, CHANNEL, CATEGORY AND GEOGRAPHICAL GROWTH INCLUDES... • Synlait Pokeno’s multinational customer potentially fully utilising this facility within five years. • Strong demand by various multinational customers for UHT line at Synlait Dunsandel’s liquids facility. • Foodservice UH
Slide 14: Your Board
YOUR BOARD Chair succession Proposed Board Structure • Independent Director Simon Robertson will replace Dr John Penno as Chair, effective today (2 December 2022). Simon Robertson Director retirement Independent Chair • Director Sam Knowles has given notice that he will retire by rotation and not st
Slide 15: CEO Address
CEO ADDRESS Grant Watson PAGE 15 SYNLAIT’S ANNUAL MEETING 2022
Slide 16: Strategy Refresh Process and Scope Timeline
STRATEGY REFRESH PROCESS AND SCOPE TIMELINE FY22 FY23 MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY Workshops 40% 70% Refresh Execution Refreshed Strategy Annual Overview with senior direction progressed. completed, frameworks strategy overview Strategy of four leaders of travel Board
Slide 17: Synlait's Strategy FY23 – FY27
SYNLAIT’S STRATEGY FY23 – FY27 Our Purpose – Doing Milk Differently For A Healthier World AMBITION RIGHT TO PLAY CHANNELS CATEGORIES TO FY27 OUR STRONG FOUNDATIONS OUR FOCUS BUSINESS TYPES OUR FOCUS PRODUCTS B Corp™ Farmer Net IWS Level 3 Food Safety Regulatory Nutritionals Consumer Foodservice Manu
Slide 18: Ambition
AMBITION B CORP™ FARMER IWS PHASE 3 SCORE SUPPLIER NET Achieving Phase Lifting our PROMOTER 3 of Integrated leadership position SCORE Work Systems in sustainability Achieving highly (IWS), delivering across people, engaged farmer high performance planet and profit. suppliers with a Net sustainably a
Slide 19: Right to Play
RIGHT TO PLAY FOOD SAFETY, REGULATORY NUTRITIONALS SURETY EFFICIENT SUSTAINABILITY QUALITY AND KNOW-HOW OF SUPPLY MANUFACTURING CREDENTIALS TRACEABILITY FSSC 22000 accreditation Global regulatory expertise Expertise from formulation Surety of supply provided High-efficiency modern World-leading sust
Slide 20: Channels
CHANNELS CONSUMER FOODSERVICE MANUFACTURING Consumer-packaged products Accessing out-of-home Ingredients and semi-finished available through modern trade, consumption through bakeries, products for use in nutritional, specialty retail and e-commerce cafes and other foodservice beverage and other pro
Slide 21: Categories
CATEGORIES MILK BEVERAGES AMF AND POWDER AND CREAM BUTTER CHEESE INFANT AND LACTOFERRIN ADULT NUTRITION PAGE 21 SYNLAIT’S ANNUAL MEETING 2022
Slide 22: Geographies
GEOGRAPHIES INDICATIVE ONLY From China China Southeast Asia Oceania Rest of world Thailand Philippines Vietnam To Indonesia China Singapore Southeast Asia Oceania Malaysia Rest of world Australia New Zealand PAGE 22 SYNLAIT’S ANNUAL MEETING 2022
Slide 23: Right to Win: Farmer Suppliers
RIGHT TO WIN FARMER SUPPLIERS 1 COMPETITIVE, TRANSPARENT FARMGATE MILK PRICE 2 FAVOURABLE ADVANCE RATE AND NO SHARES 8 OUR 3 DIGITAL TOOLS PURPOSE AND ON-FARM AND CULTURE SUPPORT 7 MADE WITH 4 INDUSTRY AND BETTER MILK COMMUNITY ENGAGEMENT 6 LEAD WITH 5 SPECIALTY PRIDE™ MILK PREMIUMS PAGE 23 SYNLAIT’
Slide 24: Right to Win: Customers
RIGHT TO WIN CUSTOMERS 1 FOOD SAFETY, QUALITY AND TRACEABILITY AND SURETY OF SUPPLY 2 NEW ZEALAND PROVENANCE AND MARKET ACCESS 8 OUR 3 BASE PURPOSE PRODUCT AND CULTURE PORTFOLIO 7 MADE WITH 4 VALUE-ADD BETTER MILK PRODUCT AND B CORP™ PORTFOLIO 6 DEEP CHANNEL 5 CUSTOMISED PRODUCT EXPERTISE PORTFOLIO
Slide 25: Executional Excellence (Key Enablers)
EXECUTIONAL EXCELLENCE (KEY ENABLERS) ON-FARM WORLD CLASS DISCIPLINED EMPLOYER SYSTEMS, TOOLS WORLD CLASS EXCELLENCE CUSTOMER NEW PRODUCT OF CHOICE AND PROCESSES MANUFACTURING ENGAGEMENT DEVELOPMENT AND AND SUPPLY CHAIN NEW TECHNOLOGY DEVELOPMENT • Farmer Supplier Cashflow • Market Mapping and • Few
Slide 26: New ELT Structure Aligned to Key Business Units and Enablers
NEW ELT STRUCTURE ALIGNED TO KEY BUSINESS UNITS AND ENABLERS Grant Watson Chief Executive Officer Rob Stowell Tim Carter Adam Maxwell Naiche Nogueira Nigel Macdonald Dr Suzan Horst Boyd Williams Charles Fergusson Paul Mallard In Progress Chief Financial CEO Dairyworks Director of Director of Directo
Slide 27: Business Unit Strategies
BUSINESS UNIT STRATEGIES PAGE 27 SYNLAIT’S ANNUAL MEETING 2022
Slide 28: Ingredients Strategy FY23 – FY27
INGREDIENTS STRATEGY FY23 – FY27 Our Purpose – Doing Milk Differently For A Healthier World AMBITION RIGHT TO PLAY CHANNELS CATEGORIES TO FY27 OUR STRONG FOUNDATIONS OUR FOCUS BUSINESS TYPES OUR FOCUS PRODUCTS Out-Perform Customer Net 50/50 Food Safety Integrated Regulatory Food Beverage SMP and WMP
Slide 29: Advanced Nutrition Strategy FY23 – FY27
ADVANCED NUTRITION STRATEGY FY23 – FY27 Our Purpose – Doing Milk Differently For A Healthier World AMBITION RIGHT TO PLAY CHANNELS CATEGORIES TO FY27 OUR STRONG FOUNDATIONS OUR FOCUS BUSINESS TYPES OUR FOCUS PRODUCTS Sales volumes Gross margin Customer Net Food Safety Infant Grade Regulatory Consume
Slide 30: Consumer Foods Strategy FY23 – FY27
CONSUMER FOODS STRATEGY FY23 – FY27 Our Purpose – Doing Milk Differently For A Healthier World AMBITION RIGHT TO PLAY CHANNELS CATEGORIES TO FY27 OUR STRONG FOUNDATIONS OUR FOCUS BUSINESS TYPES OUR FOCUS PRODUCTS Sales volumes Gross margin Return on Food Safety Global Dairy Consumer Foodservice Natu
Slide 31: Foodservice Strategy FY23 – FY27
FOODSERVICE STRATEGY FY23 – FY27 Our Purpose – Doing Milk Differently For A Healthier World AMBITION RIGHT TO PLAY CHANNELS CATEGORIES TO FY27 OUR STRONG FOUNDATIONS OUR FOCUS BUSINESS TYPES OUR FOCUS PRODUCTS Sales volumes Gross margin Customer Net Food Safety Integrated Dedicated Bakery Beverages
Slide 32: Key Priorities for FY23
KEY PRIORITIES FOR FY23 Embed new Executive Commercialise multinational customer Leadership Team Enable The a2 Milk opportunity at Synlait Pokeno Company’s growth ambitions Re-registration of SAMR license for Grow Foodservice cream and The a2 Milk Company’s Chinese consumer beverage volumes labelled
Slide 33: A Summary of Our FY27 Ambitions
A SUMMARY OF OUR FY27 AMBITIONS REVENUE GREATER RETURN ON CAPITAL DIVERSIFIED GROWTH ADDITIONAL CHINA COMPELLING THAN $2.5 BILLION AT 15% ACROSS CUSTOMER, MARKET ACCESS COMPETITIVE CHANNEL, CATEGORY ADVANTAGE FOR AND GEOGRAPHY FARMER SUPPLIERS PAGE 33 SYNLAIT’S ANNUAL MEETING 2022
Slide 34: Questions
QUESTIONS PAGE 34 SYNLAIT’S ANNUAL MEETING 2022
Slide 35: Asking a Question Online
ASKING A QUESTION ONLINE • To ask a question click on the Q&A icon. • Click on the box, type your question, and press submit. • Your question will be asked at the appropriate part of the meeting. • Please ensure questions are succinct, clear and relevant to the meeting. • Questions submitted ahead o
Slide 36: Resolutions and Voting
RESOLUTIONS AND VOTING PAGE 36 SYNLAIT’S ANNUAL MEETING 2022
Slide 37: Your Board
YOUR BOARD Chair succession Proposed Board Structure • Independent Director Simon Robertson will replace Dr John Penno as Chair, effective today (2 December 2022). Simon Robertson Director retirement Independent Chair • Director Sam Knowles has given notice that he will retire by rotation and not st
Slide 38: Resolution 1: Auditor's Remuneration
RESOLUTION 1 AUDITOR’S REMUNERATION “That the Board be authorised to determine the auditor’s fees and expenses for the 2023 financial year.” Voting online To vote, click on the vote tab, and select your preferred option. Once your vote has been cast a tick will appear. There is no submit or send but
Slide 39: Resolution 2: Election of Director
RESOLUTION 2 ELECTION OF DIRECTOR “That Paul Washer be elected as a Director.” Voting online To vote, click on the vote tab, and select your preferred option. Once your vote has been cast a tick will appear. There is no submit or send button, your selection is automatically recorded, although it can
Slide 40: Resolution 3: Election of Director
RESOLUTION 3 ELECTION OF DIRECTOR “That Paul McGilvary be elected as a Director.” Voting online To vote, click on the vote tab, and select your preferred option. Once your vote has been cast a tick will appear. There is no submit or send button, your selection is automatically recorded, although it
Slide 41: Other Business
OTHER BUSINESS PAGE 41 SYNLAIT’S ANNUAL MEETING 2022
Slide 42: Asking a Question Online
ASKING A QUESTION ONLINE • To ask a question click on the Q&A icon. • Click on the box, type your question, and press submit. • Your question will be asked at the appropriate part of the meeting. • Please ensure questions are succinct, clear and relevant to the meeting. • Questions submitted ahead o
Slide 43: Chair-Elect
CHAIR-ELECT Simon Robertson PAGE 43 SYNLAIT’S ANNUAL MEETING 2022
Slide 44: This Concludes Synlait's Annual Meeting
THIS CONCLUDES SYNLAIT’S ANNUAL MEETING Thank you for attending PAGE 44 SYNLAIT’S ANNUAL MEETING 2022
Slide 45: Disclaimer
DISCLAIMER This presentation is given on behalf of Synlait • includes statements relating to past Synlait, its directors, employees and/or Milk Limited (Synlait). Information in this performance, which should not be regarded shareholders shall have no liability whatsoever presentation: as a reliable