AUSTRALIAN AG R ICU LTU RAL COMPANY LIMITED
Financial Results Presentation for the Half Year ended 30 Sept 2015
Jason Strong Managing Director
25 November 2015
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Important informationSummary 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 provided in summary and does not purport to be complete.
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Forward-looking statements
This presentation may contain forward-looking statements. All statements other than statements of historical facts included in this presentation are forward-looking statements. Forward- looking statements may include, without limitation, statements relating to AACo's financial position and performance, business strategy, plans and objectives of management for future operations. Forward-looking statements involve known and unknown risks, uncertainties and other factors (many of which are beyond AACo's control) and which may cause actual results to differ materially from those expressed in the statements contained in this presentation. Some of the important factors that could cause AACo's actual results, performance or achievement to differ materially from those in any forward-looking statements include (among other things): levels of demand and market prices, climatic conditions, the impact of foreign exchange currency rates on market prices and operating costs, political uncertainty and general economic conditions in Australia and overseas, the ability to produce, process and transport goods and livestock profitably, the actions of competitors and activities by governmental authorities. No representation, guarantee, or warranty (express or implied) is given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, projections or forward-looking statements contained in this presentation.
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Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell AACo securities in any jurisdiction.2
Safety
Financial
Operational
Strategy
Improvement in LTIFR by > 40%.
Ongoing focus and a critical component of our approach
71% ($107.2 million) increase in total sales
Operating EBITDA2 of $11.5 million compared to a loss of $8.2 million
Statutory EBITDA2 of $92.1million compared to a loss of $4.5 million
95% improvement in Net Operating Cash Flow
114% (13.7 million kg CW) increase in total meat & by-product sales volumes
Wagyu meat & by-product sales prices increased 6%
Shortfed/Other meat & by-product sales prices increased 10%
Northern Beef made a positive contribution to Consolidated Operating EBITDA
190% increase in net transfers of cattle from Grassfed to Grainfed & Northern Beef
AACo's objective remains clear: a fully integrated branded beef business
The strategy is now focussed on further increasing operating margin by:
Implementing a differentiated branding strategy
Investing in innovation and technology
Optimising our supply chains
Compared to the prior corresponding period (H1 FY15)
Operating EBITDA assumes all balance sheet inventory movements occur at a pre-defined standard price, in contrast to Statutory EBITDA which recognises unrealised 3
movements in inventory at market price. For a full explanation of this measure refer to Section 5 of the Operating Financial Overview in AACo's 31 March 2015 Annual Report.
Total sales revenue ($m)
Meat1 sales as a % of revenue
47% 76% 84%Net internal transfers of cattle from Grassfed to Grainfed / Northern Beef (mil kg LW)
12 8 24Grassfed cow breeding herd ('000 head)
168 178 173Average age of Grassfed cow breeding herd (years)
~7~7~61. Meat includes red meat, by-products and offal. 4
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