Livestock Improvement Corporation Ltd · NZX:LIC
Livestock Improvement — Shareholder Meeting (October 2021)
40 slides from Livestock Improvement's shareholder meeting presentation, Oct 14, 2021
Slide 1: Farmers investing in high value genetics to help meet the sector's climate goals
Farmers investing in high value genetics to help meet the sector’s climate goals Annual Meeting — 14 October 2021
Slide 2: Using the Online Platform
Using the Online Platform Farmers investing in high value genetics to help meet the sector’s climate goals Annual Meeting — 14 October 2021 Voting card Question box 2
Slide 3: Welcome
Welcome 3 Murray King — LIC Chair
Slide 4: Meeting Agenda
Meeting Agenda 1. Sustainability Report 7. Financial Detail 2. Financial Overview 8. LIC Chief Executive 3. Business Highlights 9. Honoraria Report 4. Outlook 10. Voting Resolutions 5. Strategy 11. General Business 4 6. Research & Development
Slide 5: Sustainability Report
Sustainability Report 5 Wayne McNee — LIC Chief Executive
Slide 6: Purpose of the Report
Purpose of the Report Sustainability Report For the year ended 31 May 2021 To demonstrate to our shareholders our commitment to them when it comes to sustainability, in addition to meeting our annual reporting requirements as a member of the Sustainable Business Council. Helping our farmers meet sus
Slide 7: Key highlights
Key highlights Record milk production in NZ in 2019-20, without 1.87% ENVIRONMENT increasing cow numbers. Reduction in LIC’s An increased focus on efficiency means CO2 Emissions that cows around the country are Change FY21 better at converting grass into milk. compared to FY20 Supporting shareholder
Slide 8: Key highlights
Key highlights 3.49 Total Reportable Incident Rate SOCIAL 70 (Per 100 full time equivalent employees). Organisational Down from 4.5 last year. Health Index (OHI) Caring for our staff OHI is a McKinsey tool which and our farmer measures the impact of our 840+ organisation practices and shareholders.
Slide 9: Results Overview & Business Highlights
Results Overview & Business Highlights 9 Murray King — LIC Chair
Slide 10: Financial Overview
Financial Overview Presenting another strong result to our farmer shareholders for the fourth consecutive year This result is in line with our market guidance and a credit to our shareholders for their support of significant initiatives in the last five years to transform LIC into a modern, progress
Slide 11: Financial Highlights
Financial Highlights $ 249m $ 22.9m $ 22.3m Total Revenue from continuing Net Profit After Tax (NPAT) Underlying Earnings* operations (excl automation*) up 31% from $17.5 million last year down 1.9% from $22.7 million last up 3.4% from $240.9 year after a one-off tax benefit million last year $ 382m
Slide 12: Business Highlights
Business Highlights LIC’s premium genetics range accounted for almost half of the co-op’s total artificial breeding inseminations. Forward Pack A2/A2 Bull Teams Sexed Semen 12
Slide 13: Divestment of LICA
Divestment of LICA In June this year LIC announced that it had entered into an agreement to divest its automation business, LICA, to MSD animal health, for an amount of NZ$38,100,000 and subject to a working capital adjustment. 13
Slide 14: Outlook
Outlook The co-op will be firmly guided by its primary focus of delivering value for farmer shareholders and delivering on our three commitments to farmers; operational excellence, faster genetic improvement and software reliability and performance. LIC expects Underlying Earnings* in 2021-22 to be
Slide 15: Our three commitments to you
Our three commitments to you 1 2 3 Operational Faster Genetic Software Reliability Excellence Improvement and Performance We commit to getting the We commit to having We commit to being better at basics right and delivering your back when it comes delivering our software to you. for you, on time, ev
Slide 16: Strategy, R&D and Financial Detail
Strategy, R&D and Financial Detail 16 Wayne McNee — LIC Chief Executive
Slide 17: 2021 Strategy
2021 Strategy Doing what we are good at. Playing to our strengths. Our Farmers Deepen our understanding of the current and future needs of all of our farmers. Animal Most sustainable & efficient animal. Highest value products. Data & Digital Modernising the animal data & digital capabilities. Innova
Slide 18: Genomics
Genomics LIC’s investment of more than $78 million over three decades into genomic science and genome sequencing technology is generating markedly increased productivity and health traits for dairy cows and better returns for dairy farmers. Utilising genomics (DNA information) in animal evaluation i
Slide 19: Investment in Research & Development
Investment in Research & Development Development projects 6% Dairy sire proving 29% Genetics information 45% INVESTMENT Emerging markets 3% IN R&D $ 17.1m International 1% Information to improve decision making 4% Hardware & systems 10% R&D support & delivery 2% 19
Slide 20: Methane Trial
Methane: Jnial Vie
Slide 21: Capital Approvals
Capital Approvals Computer hardware & office furniture $1.1m MINDA Projects $3.6m LICA Product development $2.6m CAPITAL APPROVALS IP: Trademark & Patents, Software & Server upgrade $4.5m $ 22.1m Investment, Other Projects and Wash Line $1.1m HT Pools, Analyser & Robot replacement $0.4m Building imp
Slide 22: Total Revenue
Total Revenue 300.0 266.4 246.5 254.0 250.0 236.4 203.5 200.0 NZ $m 150.0 100.0 50.0 0.0 2016/17 2017/18 2018/19 2019/20 2020/21 22 Continuing Operations Discontinued Operations
Slide 23: LIC Contribution to Value on farm
LIC Contribution to Value on farm Reproductive Health Genetic Merit performance (Johnes, BVD, Mastitis) $ 292m $ 35m $ 45m Production SPACE (Culling & SGL) $ 57m 15m $ 23
Slide 24: Covid-19 Response
Covid-19 Response So See eee eee ee ee peewee ee eee
Slide 25: Reflections on eight years at LIC
Reflections on eight years at LIC 25
Slide 26: LIC Chief Executive
LIC Chief Executive • Farewell and thank you to Wayne McNee. • Chief Executive appointment update. 26
Slide 27: Honoraria Report
Honoraria Report 27 Ian Brown — Honoraria Committee Chair
Slide 28: Meeting Resolutions
Meeting Resolutions 28 Murray King — LIC Chair
Slide 29: LIC Directors Remuneration
Resolution 1: LIC Directors Remuneration Pre-Governance Proposed 2020 Proposed 2021 Proposed Remuneration post Review* Increase** Increase*** 2021 Annual Meeting*** Chair $123,600 $6,400 $2,500 $132,500 Each of the other Directors $54,000 $2,500 $3,500 $60,000 Maximum sum available to reimburse $60,
Slide 30: Approval of LIC Directors Remuneration
Resolution 1: Approval of LIC Directors Remuneration To receive and consider the LIC Honoraria Committee’s recommendation as to Director’s remuneration, and if thought fit, to resolve by way of ordinary resolution to: “Approve the total remuneration of all Directors being increased from $669,600 to
Slide 31: LIC Shareholder Reference Group Remuneration
Resolution 2: LIC Shareholder Reference Group Remuneration Pre-Governance Proposed 2020 Proposed 2021 Proposed Remuneration Review* Increase ** Increase ** post 2021 Annual Meeting** Chair $30,000 $2,500 $2,500 $35,000 Deputy Chair $9,000 $1,000 $6,000 $16,000 Each of the other 10 SRG members $5,000
Slide 32: Approval of LIC Shareholder Reference Group Remuneration
Resolution 2: Approval of LIC Shareholder Reference Group Remuneration To receive and consider the LIC Honoraria Committee’s recommendation as to Shareholder Reference Group’s remuneration, and if thought fit, to resolve by way of ordinary resolution to: “Approve the total remuneration of all Shareh
Slide 33: To reappoint KPMG as External Auditor
Resolution 3: To reappoint KPMG as External Auditor To consider, and if thought fit, to resolve by way of ordinary resolution to: “Reappoint the chartered accountancy partnership KPMG as the Auditor until the conclusion of the Company’s next Annual Meeting, and that the Directors be authorised to fi
Slide 34: To ratify the reappointment of Candace Kinser as an Appointed Director
Resolution 4: To ratify the reappointment of Candace Kinser as an Appointed Director To consider, and if thought fit, to resolve by way of ordinary resolution to: “Ratify the reappointment of Candace Kinser as an Appointed Director for a term expiring at the conclusion of the third Annual Meeting fo
Slide 35: Appointment of Gordon Glentworth to the Honoraria Committee
Resolution 5: Appointment of Gordon Glentworth to the Honoraria Committee To consider, and if thought fit, to resolve by way of ordinary resolution to: “Approve the appointment of Gordon Glentworth to the Honoraria Committee, with effect from the conclusion of this Annual Meeting” 35
Slide 36: Re-appointment of Ian Brown to the Honoraria Committee
Resolution 6: Re-appointment of Ian Brown to the Honoraria Committee To consider, and if thought fit, to resolve by way of ordinary resolution to: “Approve the re-appointment of Ian Brown to the Honoraria Committee, with effect from the conclusion of this Annual Meeting” 36
Slide 37: General Business
General Business 37
Slide 38: Helping farmers reduce their environmental footprint
Helping farmers reduce their environmental footprint 38
Slide 39: Q&A
Q&A 39
Slide 40: LIC
OLIC
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