Australian Agricultural Company Limited · ASX:AAC
Australian Agricultural — Shareholder Meeting (March 2012)
29 slides from Australian Agricultural's shareholder meeting presentation, Mar 16, 2012
Slide 1: Australian Agricultural Company Limited - AGM Managing Director/CEO Presentation
co Australian Agricultural Company Limited ABN 15 010892270 AAco Annual General Meeting - Managing Director/Ghief Executive Officer's Presentation Attached is the Managing Director/Chief Executíve Officer's presentation for the Annual General Meeting of the Australian Agricultural Company Limited ('
Slide 2: Managing Director's Address
Managing Directorts Address Thank you Donald and good morning everyone. As Donald has outlined, 2011 was a successful transitional year for AAco. We achieved a great deal in what was the second year of our planned three year turnaround. t2
Slide 3: Staff Thank You
Staff Thank You =: jf a- \ s t a Therefore - while it is traditional for a chief executive to thank staff at the end of an Annual General Meeting address - I am going to be a little unconventional and express my appreciation at the start. The faces that you see on this page are representative of the
Slide 4: Year 2 of 3 Turnaround
._¿ Year 2 of 3 Turnaround The Chairman has already spoken at length about our achievements during the year under review - and the focus of my address today is going to be on our positioning lor 2012 and beyond. However, before we turn to the future, I think it is helpful context to take a moment to
Slide 5: The Landscape in 2012
.-¿ The Landscape in 2Ol2 . Rainfall / ' Beef p¡ice / . Herd mix and planned herd movements / . Cost of production / . Altemative income production and risk diversification / Holding our annual general meeting in mid-March is good timing for providing an overview of how the calendar year is likely t
Slide 6: Australian Rainfall: Oct - March 2012
Australian Rainfall: Oct - March 2012 lll|ùrtr idîL[lot ¡.(ilrl I Odoàs2oll toO Mrd| 2012 Pmduct of tho Ndond Cllmt C€nbå Turning to the first key driver of AAco's performance in 2012 - rainfall. The wet season for most of our propefties runs from October through March. With the season now close to
Slide 7: Rainfall Totals: Wet Season to 1 March
uD. Rainfall Totals: Wet Season to 1 March |:0rür.6 Lrlldt L¡Ll fof.b lr¡il qr..¡.bÉ ldñt¡¡ toL¡. lilnl 1 øob€.2011loO Mårú 2012 I ftob*2011loô i¡årcù 2012 Prþduclotiho l¡âfþnd Cl¡nab Cañfê Pþdrclol the Nationd CFîab CanüÊ We regard anything above 400mm of rain as being sufficient to ensure that the
Slide 8: Wet Season Rainfall Averages 2012
._¿ Wet Season Rainfall Averages 2O12 fnaroila%rlüütt I urrrr*olrorto I e[raar ûr l* ¡rlal mtaaal H.Dr!¡ r¡hl.t¡..4 ..Ú ail.fü rf., ¡% ¡dN ry.nt r rar .¡.d.üo I b $!þr .H iÊ¿ - Now moving on to focus more specifically on AAco, this chart provides a more detailed breakdown of how the current wet seas
Slide 9: Total Rainfall: February
._¿ Total Rainfall: February 19
Slide 10: Protein Price
Protein Price f f f f f f f ê f gCd.t'CCCCCd'd f f { { { f -Pork -Btdlor -'u*oy swco: Food t AsTHftrd poftl n*"-al, trr'rø-'æf ln his chairman's address, Donald has already touched upon the really suppodive dynamics in global protein markets - driven by growing populations and incomes across develop
Slide 11: World Steer Prices
_ô- World Steer Prices =l B€t, +4601 Doftgtic 420-440t Sæ P6do Stffi lÉde S!â.r (17ù 230¡) -Un¡gudt -ArgonliN -Brâd -USA -A¡úEaÐ Sourca: AA@ Drill down into the protein price data a little deeper - and while there is more volatility in the price of steers produced in certain countries - the longer t
Slide 12: qr/osn tods - sarnlnr o¡rec a^!'r rwtþi=
zz ql^zloz- !loz- ".æolo¿qorþrE¡0.- l¡Jaon tyao/¡ altuDta jul!L Jll]att ji'l.la Jueua )uaon qr/osn tods - sarnlnr o¡rec a^!'r rwtþi=
Slide 13: Young Cattle Indicator AUD/kg DW
ung Cattle lndicator AUD/kg DW :A ¡¡3C , ¡.l0 | lta ¡ta ttl lt! aroríl r¡tñl ato211 qary11 ¿Ltn1 Jolnl toalll totäl lJlorll 111n1 anrñ1 YTD æ10 ilê" -mJt -2012 -Í6'drough 23
Slide 14: Aust. 90CL Cow Export to USA c/kg
Aust. 9OCL Cow Export to USAc/kg l toc¡ atcln1 ,n2A1 tgotnl !g0¡¡11 Joanl aual11 tga7nl tûrÄl lrotnl 910n1 lrllrll 'il,llll ülrcqoh 2010 ay.' YfD -1Nt -2011 -2012 24
Slide 15: Queensland Cattle Market Indicator (QCMI)
Glueensland Gattle Market lndicator (QGMI) atut11 rr0!íl atût11 ,ßrn1 Joal11 ,ltJ11 snoril tnln1 J12n1 dùough 2ol0 dc. ì.fD -'06f -æ11 -2012 hd..dHË lõldæ12 25
Slide 16: Increased Beef Consumption
\_ô Increased Beef Gonsumption --l- Devcloplng Countrles Bool con¡umpllon (lncludlng veal) lt.aaa 2al0 ¡orl 2012 2Q1t 201a 20,ta 20la 20lt 2ala ¡ola zaza 2ø2¡ 2422 zaat zaA zara Ai|cdn Adü -Brdild -Chl¡@ -lndla¡ -O{E -OüEr Silca: Food t &rHrød Fol¡ct R€s.ærì rnttftdt Look out over the medium term -
Slide 17: Cattle Value Drivers
Gattle Value Drivers Budget forecasts indicate total cattle sales in 2012will be marginally higher than 2011 Glosing herd to be inline with December 2011 Significant increase in Wagyu sales Turning now to our plans lor 2012 cattle sales, and our herd is well positioned following the advances made du
Slide 18: Efficiency Drives Profitability
._¿ Efficiency Drives Profitability Sales growth of $93.4 million and EB|TDAgrowth of $16.8 million Dramatic improvement in margin during 2010 maintained in201'l Driven by efficiency and innovation Upgrade lT and communications system Focus on energy efñciency - reduce dÞse/ usage and implement sola
Slide 19: Consumer trend toward knowing food origin
There is a growing consumer trend, especially at the premium end of the market, for consumers to equate knowing the origin of the food they are eating with quality. Being able to provide this information gives our product a competitive edge. 28
Slide 20: Alternative Incomes
Alternative lncomes . Farming operations maximise utilisation of assets . Dryland and inigated cotton delivered crop yields above expectation . Potential to increase area under cotton in 2012 . Wheat also a very strong performer 29
Slide 21: Alternative Incomes
.-¿ Alternativelncomes f nf "nt' fn /'¿r f" fi A key element of the corporate strategy in the past few years has been to ensure utilisation of our assets is maximised, improving return on assets. With this aim, we have invested in cropping on a number of properties, but paticularly Goonoo Farm in Ce
Slide 22: Alternative Incomes
Alternative lncomes tl,OaO,OOa l ar¡aqeoa a+aao,c00 t¡¡tc,ooa ft,aao,toa 3r¡rc,coo i aa o...æ ,m tÐt [tt ïtilatr] tLtlö |tlln¡ tn With $7 million of revenue, cotton was the most significant crop and AAco produced 11,946 bales during the period, at yields above expectations. Dryland cotton yielded 3.
Slide 23: Proposed NT Meat Processing Facility
._¿ Proposed NT Meat Processing Facility 360 Stuart Highway, Livingstone Valley, about 50km south of Danrrin 600 hectare block - four hectares for food processing facility 14 heclares waste recycling infrastruclure Turning now to our plans for the Northern Territory Meat Processing Facility - and it
Slide 24: Proposed Processing Facility
Proposed Processing Facility ø It !¡ffitr bt llrld*CEdcænrffi hrdh.lH{ t6 f,dÐt2 33
Slide 25: Proposed Processing Facility
Proposed Processing Facility &Mhrdld{ t6Þæ12 34
Slide 26: Project Approval Requirements
,:¿ Proiect Approval Requirements Future lnvestors For AAco, the processing facility will be a profit centre in its own right. But the economic benefits to AAco extend beyond simply taking the margin that usually accrues to a processing facility operator. The savings associated with not having to fr
Slide 27: State of the Art Design Features
,:¡[ State of the Art Design Features From an environment perspective, the project is attractive. Our facility will use the latest technology and modern innovation to minimise environmental impact. Project planning has taken into consideration environmental aspects of carbon, water, electricity, gas
Slide 28: In Closing
ln Glosing Right herd Favourable growth conditions Well positioned within market and globalthematic Skilled and motivated staff base Disciplined and skilled board of governance AAco is well positioned - we have the right herd, favourable growth conditions, are well positioned within market and globa
Slide 29: Disclaimer
D¡ScLAIMER While every care has been taken in the preparation of this presentation, Australian Agricultural Company Limited ("ArAco") and each of their respective related bodies corporate and associated entities and each of their respective officers, employees, associates, agents, independent contra
Australian Agricultural Company — Shareholder Meeting (March 2012) on 6ix