A2 Milk Company Limited · NZX:ATM
A2 Milk — A2 — Shareholder Meeting (November 2011)
16 slides from A2 Milk's shareholder meeting presentation, Nov 22, 2011
Slide 1: A2 Corporation Presentation to AGM
A2 Corporation Presentation to AGM 22 November 2011 Geoffrey Babidge
Slide 2: Presentation Agenda
Presentation Agenda • Overview • 2011 Financials • Key Results • Growth Strategy • Australian business • International • Outlook for 2012 2
Slide 3: Overview
Overview During 2011, A2C progressed the new strategic agenda adopted in 2010 • Australia: Growth in sales and profitability of the Australian business Commencement of green-field fresh milk processing project in Sydney • New Zealand: Management of ANZ activities merged • International: Implemented
Slide 4: 2011 Financial Summary
2011 Financial Summary $’000 2011 2010 Trading Revenue $42,297 - Gross Margin $14,527 - EBITDA $2,816 $(2,351) NPAT $2,116 $(2,194) Equity $25,183 $7,267 EPS 0.40 (0.58) Current Ratio 2.67 5.50 ROE 8.4% (30.2)% Shares on Issue at August 31, 2011 - 590,666,979 4
Slide 5: Key Results
Key Results • Group Profit after Tax for 2011 of $2,115,567, a maiden profit for A2C • An additional Foreign Currency Translation Gain was recorded of $424,604 • Group EBITDA was $2,816,167. The Australian business contributed operational profit well ahead of budget and the prior year • Non cash sha
Slide 6: A2C growth strategy
A2C growth strategy The A2C strategic growth agenda incorporates 3 key elements: • Building the beverage business in Australia and New Zealand • Capturing niche shares in global milk markets, and • Developing an infant formula business in highly prospective markets The Strategic Agenda draws on: • T
Slide 7: Australian Business
Australian Business • a2 Milk™ is positioned on a broad health platform focusing on digestive wellbeing • In Australia, 23% of consumers have perceived dairy intolerances. Only 5% of the population are medically diagnosed as lactose intolerant* • Product positioning: “My family drinks a2 Milk™ becau
Slide 8: Australian Business
Australian Business • a2 Milk™ sales volume increased to 21.6 m litres, a 43% YOY increase • 2011 Operational Profit well ahead of budget and last year • Estimated market share by value in grocery channel at year end: 4.2% • Strengthening brand equity through communication strategies and new marks •
Slide 9: The A2 Sales Journey
The A2 Sales Journey 11,259 10,053 675% Growth in 8,466 8,373 8,512 4 Years 7,641 6,640 6,353 6,520 5,338 4,216 4,200 4,122 3,644 2,802 2,871 1,668 Qt r T o Qt r T o Qt r T o Qt r T o Qt r T o Qt r To Qt r T o Qt r T o Qt r To Qt r t o Qt r t o Qt r To Qt r t o Qt r t o Qt r t o Qt r t o Qt r t o 30
Slide 10: "Thank you A2" communication
Australian Business: “Thank you A2” communication Go to Australian Business website: a2milk.com.au, media, to view TVC 10
Slide 11: Smeaton Grange - NSW Factory in Progress
Smeaton Grange - NSW Factory in Progress
Slide 12: International
International • A2C announced on 15 November 2011 the planned market entry of a2 Milk™ into the United Kingdom & Ireland through a 50:50 joint venture with Robert Wiseman Dairies PLC • This key initiative is consistent with the strategy to seek profile partners to introduce a2 Milk™ as a value added
Slide 13: Robert Wiseman Dairies
Robert Wiseman Dairies • Robert Wiseman Dairies: the leading fresh milk dairy company in the UK • Established in 1947 in East Kilbride, Scotland; listed on London Stock Exchange • Has 6 major processing facilities,14 distribution depots, 4800 employees The processing facilities are state of the art
Slide 14: Robert Wiseman Dairies and Depots
Robert Wiseman Dairies and Depots Every postcode covered…
Slide 15: Outlook for 2012
Outlook for 2012 • Continue to build the a2 Milk™ brand as a premium priced value added dairy product in the Australian milk market • Successfully commission the fresh milk processing facility in Sydney • Support the market entry of a2 Milk™ in the UK and Ireland in association with our partner Robe
Slide 16: Thank You
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