A2 Milk Company Limited · NZX:ATM
A2 Milk — The a2 Milk Company — H1 2013 Earnings Presentation
12 slides from A2 Milk's earnings presentation, Feb 27, 2013
Slide 1: A2 Corporation 1H13 results presentation
A2 Corporation 1H13 results presentation 27 February 2013 Geoffrey Babidge Managing Director & CEO
Slide 2: Disclaimer
Disclaimer This presentation dated 27 February 2013 provides additional comment on the market release of 27 February 2013 and the Half-Year Report. As such, it should be read in conjunction with, and subject to, the explanations and views in those documents. This presentation is provided for informa
Slide 3: 1H13 result highlights
1H13 result highlights Successful Strong sales Strategic Positive capital growth plan on track outlook raising • Strong growth in sales, up 57% on the corresponding prior half year • Strategic review completed and implementation now in progress • Increased market share in Australia to 6.9% by value
Slide 4: Financial highlights
Financial highlights NZ$m 1H12 1H13 % change • Sales of $44,281,000 (+57% cpp) Sales 28.3 44.3 +57% • EBITDA before share of associate earnings and non-recurring items of EBITDA 2.2 3.5 +54% $3,459,000 (+54% cpp) EBIT 2.2 2.9 +31% • Share of costs associated with A2 Milk (UK) JV of $1,480,000 Other
Slide 5: Financial highlights (cont'd.)
Financial highlights (cont'd.) 1H13 EBITDA (NZ$m) 6.2 2.4 3.8 0.3 3.5 0.8 2.7 Australia EBITDA Intercompany Australia EBITDA Corporate Group EBITDA Non-recurring Group EBITDA before charges after intercompany expenses after items after non-recurring intercompany charges royalty and items charges int
Slide 6: Strategic review update
Strategic review update • A comprehensive strategic review of the Company (commenced April 2012) was completed and announced to the market in October 2012 • The outcome of the review is that the Company will dedicate additional resources to initiatives previously announced and prioritise opportuniti
Slide 7: Australasian sales continue strong growth
Australasian sales continue strong growth • a2™ sales continued to show strong growth (+57% cpp) – ongoing investment in marketing and communication (e.g. successful “thank-you a2” media campaign, increasing social media engagement etc.) – further gains in distribution also aided sales • a2™ brand f
Slide 8: UK launch commenced, with momentum building
UK launch commenced, with momentum building • The UK launch commenced in October 2012, with three major supermarket chains listing a2™ brand milk in approximately 700 outlets nationwide (Tesco, Morrisons and Budgens) • From the end of January 2013, ranging of a2™ brand milk has been extended to two
Slide 9: Communicating the a2™ message in the UK
Communicating the a2™ message in the UK • "a2™ can change your life" • A2C is executing different tactical messages, in different ways, in different channels, to convey this overarching statement A positive story Signposting benefit The science of A2 • Celebrity testimonials • Press / outdoor • PR /
Slide 10: Infant formula strategy in place
Infant formula strategy in place • In October 2012, A2C announced the appointment of China State Farm (or CSF) as the exclusive distributor of a2™ brand infant formula for Greater China – as part of the agreement, A2C and CSF have formed a joint marketing structure to support the development and imp
Slide 11: Feel the difference™
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Slide 12: The story so far…
The story so far… July 2010 October 2010 June 2011 November 2011 March 2012 September 2012 December 2012 Acquired the Developed the new Formally developed Formed 50 / 50 Commissioned Reported record FY12 Successfully remaining 50% it did strategic agenda the ‘The A2 JV with Robert milk revenue of NZ