GOODMAN FIELDER LTD Goodman Fielder Limited
ABN 51 116 399 430
T2, 39 Delhi Road North Ryde NSW 2113 Australia Locked Bag 2222 North Ryde NSW 2113 Australia Tel: 61 2 8899 7000 Fax: 61 2 8026 4200 www.goodmanfielder.com.au
20 November 2014
Announcements Officer Listed Company Relations
ASX Market Announcements NZX Limited
ASX Limited Level 2, NZX Centre
Exchange Centre 11 Cable Street
20 Bridge Street WELLINGTON SYDNEY NSW 2000 NEW ZEALAND
Goodman Fielder Limited 2014 Annual General Meeting - Managing Director's Presentation
I attach the Managing Director's presentation which will be delivered to shareholders at the Annual
General Meeting today.
The attached document will be available on Goodman Fielder's website once released to the market. Yours sincerely,
SARA GOLDSTEIN
Company Secretary
The registered office of Goodman Fielder Limited and its Australian subsidiaries is T2, 39 Delhi Road North Ryde NSW 2113
ANNUAL GENERAL MEETING 2014
g
goodman
fielder
Disclaimer and basis of
preparation
DISCLAIMER
This presentation is provided for information purposes only. The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should consider their own individual investment and financial circumstance in relation to any investment decision.
Certain statements contained in this presentation may constitute forward-looking statements or statements about future matters that are based upon information known and assumptions made as of the date of this presentation. These statements are subject to risks and uncertainties. Actual results may differ materially from any future results or performance expressed, predicted or implied by the statements contained in this presentation.
Unless otherwise indicated, any market share information contained in this presentation is sourced from Aztec.
BASIS OF PREPARATION
Normalised EBIT, Normalised EBITDA and Normalised NPAT are non-IFRS measures that reflect, in the opinion of the Directors, the ongoing operating activities of Goodman Fielder in a way that appropriately presents its underlying performance. The non-IFRS underlying profit measures exclude restructuring expenses, profits or losses from sale of businesses and assets, asset write-downs and impairments and realised foreign exchange losses.
2
Agenda
Overview of FY14 financial results
Performance by division
Factors impacting performance
Progress on our strategy and core businesses
Our values driving our business
Outlook for FY15
3
Overview of FY14 financial results
Revenue growth from improvement in power brands in Revenue
$2.2bBaking & recovery in Fiji
Improved product mix/pricing in Baking; Improvement in Fiji Poultry 3%
Challenging trading conditions, significant increase in
EBIT1 $150.7mcommodity costs impacts
margins and
earnings
19%Record increase in raw milk price; higher A$ wheat price
Significant items impact reported results
Non-cash impairments, loss on sale of divested businesses and restructuring costs leads to reported loss
NPAT1 $63.1m 17%Financial position remains strong
Credit metrics continue in line with investment grade
Full year dividend 2 cents(1) Normalised from Continuing Operations. Excludes significant items 4
Performance by
division
A$m1 60
Baking GroceryA$m1
49.5
50
40
30
20
10
Higher A$
35 wheat and logistics costs impact margins
70 63.4
60
50
40
30
20
10
50.9
Challenging markets put pressure on pricing/volume
0
FY13 FY14
0
FY13 FY14
Dairy Asia PacificA$m1 40
35
30
25
20
15
10
5
0
37.7
19.9
Record increase in farmgate milk price in NZ
A$m1 70
60
50
40
30
20
10
0
56.4
65.1
Successfully resolved issue in Fiji Poultry
FY13 FY14
FY13 FY14 5
1 Normalised EBIT from Continuing Operations. Excludes significant items
Factors impacting performance
Commodity
Cost
Farmgate milk price in NZ up 57% during the year - unable to fully recover through retail pricing
Higher A$ wheat price due to drought conditions - impacts earnings in Aust Baking
10.00
8.00
6.00
4.00
2.00
0.00
Farmgate Milk Price NZ$ per KG/s
Jul09 Jul10 Jul11 Jul12 Jul13
Spreads Lack of ranging of new products in Spreads and underperformance of brand (MeadowLea Heart Plus and Buttery) impacted Grocery (Aust) earnings
Reliability Reliability issues in baking supply chain resulted in higher
in Supply Chain
freight and logistics costs across network to maintain
customer service levels
Reliability issues negate anticipated lower manufacturing/unit cost savings
6
Progress on strategy - continued improvement in key fundamentals
30
26.5
Safety Quality20
Complaints down 20%25
21.4 21
20
15
10
5
0
17.5
10.2
SIFR down16
42% in FY14 128
4
0
in FY14FY10 FY11 FY12 FY13 FY14
Significant Injury Frequency Rate
FY11 FY12 FY13 FY14
Group complaints per million units sold
Marketing Investment Staff Engagement DME up 20% in FY1460%
50%
40%
30%
38% 41%
48%
55%
Engagement up 15% in FY1420%
10%
FY12 FY13 FY14
DME
0%
FY11 FY12 FY13 FY14
Employee Engagement %
7
Progress made in core businesses
Growth in Baking Top Line Arrested sales decline with Baking revenue up 3%
Market leadership Dressings & Mayo Reversed declines in Dressings & Mayo through product/consumer innovation
Harnessing UHT Opportunity $25m investment to expand UHT
capacity at Christchurch
Re-launch of Meadow Fresh brand Successfully re-launched Meadow
Fresh brand in NZ
Recovery of Fiji Poultry Poultry volumes up 16% in FY14
8
Our values driving
our business
In the community We provided $3.8m in product and community donations in FY14
The GF Cares Trust in NZ and our support for Foodbank and Open Family Australia provide much needed support to feed the hungry
Our people donate their time to help support our charitable partners
In the environment Our energy efficiency improved by 11% and our greenhouse gas emissions reduced by
8% in FY14
We reduced our waste to landfill by 12% and now use recycled PET in our packaging
We started sourcing Certified Sustainable Palm Oil (CSPO) - over 80% of Palm Oil used in our branded products in Australia/NZ is mass balance CSPO
9
FY15 outlook
Outlook remains consistent with commentary provided at FY14 results announcement:
Market conditions remain competitive Baking and Grocery markets (Aust/NZ) remain challenging from competitor and private label competition
Carefully assessing introduction of discounted private label bread in Australia and New Zealand
Reduction in farmgate milk price expected to assist in earnings improvement in NZ Dairy business
Continued reinvestment in R&D/Innovation to drive core category growth Further increase in marketing and innovation spend to strengthen brand equity and category growth
Strengthened NPD pipeline with new products launching in Spreads, Baking Mixes, Flour, Baking
Focus on strengthening our competitive positionOrganisational restructure in 4th qtr FY14 provides a more cost efficient and streamlined structure
Engagement with major customers on key issues of improving daily fresh delivery model, new product development and consumer insights
10
ANNUAL GENERAL MEETING 2014
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goodman
fielder
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