Rural Funds Group · ASX:RFF
Rural Funds — Rural Funds Management — Corporate Update (September 2018)
18 slides from Rural Funds's corporate update, September 2018
Slide 1: RFM Almond Funds (AF06, AF07 & AF08) Annual Grower and Adviser update
RFM Almond Funds Managed by: (AF06, AF07 & AF08) Annual Grower and Adviser update September 2018
Slide 2: Disclaimer
Managed by: Disclaimer RFM AFSL 226701 as Responsible Entity (RE) for RFM Almond Fund 2006 (ARSN 117 859 391), RFM Almond Fund 2007 (ARSN 124 998 527) and RFM Almond Fund 2008 (ARSN 127 947 960), has prepared this presentation based on information available to it. Although all reasonable care has be
Slide 3: Agenda
Managed by: Agenda RFM presenters 1. Harvest and operational Andrea Lemmon update Executive Manager – Funds Management 2. FY18 Grower results and invoice Daryl Winter National Manager - Horticulture 3. Cash flow matrices James Powell General Manager - Investor Relations & Marketing 3
Slide 4: Harvest and operational update
Harvest and operational update 1 Almond flowers in full bloom, Mooral almond orchard, Hillston, NSW, September 2018
Slide 5: Harvest and operational update
Managed by: Harvest and operational update The FY18 season benefitted from good growing conditions and produced a crop ranging between 3.6 to 3.8 tonnes per hectare across the Funds. AF06 AF07 AF08 Notes FY17 • Biennial bearing (see page 6), combined with poor conditions during flowering and pollina
Slide 6: Pruning program
Managed by: Pruning program RFM has completed a three-year orchard pruning program which seeks to reduce the yield variance attributable to biennial bearing. • The alternation of large and small crops is referred to as ‘biennial bearing’: – Perennial fruit crops initiate flower buds for next seasons
Slide 7: Frost fans
Managed by: Frost fans RFM has installed additional frost fans in the orchard to further protect yield. • 14 frost fans were installed in the orchard between 2014-16. The fans have been effective in minimising the impact of frosts for the RFM Almond Funds in the areas where they are situated. • An a
Slide 8: FY18 Grower results and invoice
2 FY18 Grower results and invoice Harvested almonds drying on the ‘headlands’, Mooral almond orchard, Hillston, NSW, February 2018
Slide 9: Pre-adjusted FY18 Grower result
Managed by: Pre-adjusted FY18 Grower result FY18 returns are positive for AF06 and AF08, with AF07 slightly impacted by quality downgrades. AF061 AF071 AF081 Harvest proceeds from 2017 crop2 $6,561 $5,691 $5,626 Less fees and costs (inc. GST): Processing cost ($388) ($527) ($507) Interest cost ($67)
Slide 10: FY18 Grower invoice
Managed by: FY18 Grower invoice The FY17 shortfall funding and FY19 forecast shortfall3 will be included in this invoice. RFM will provide a management fee rebate of 50% and interest cost rebate for FY18. AF061 AF071 AF081 FY18 result per Grove (inc. GST) ($111) ($523) ($444) Interest cost rebate $6
Slide 11: Timeline
Managed by: Timeline Growers need to be registered for GST to claim back a portion of their return. Growers are strongly encouraged to seek advice about claiming their GST refund. GST reporting frequency Event Date and corresponding reporting date Invoices dispatched 19 September 2018 Monthly Quarte
Slide 12: Conclusion
Managed by: Conclusion RFM continues to actively manage the farming operations and identify cost savings to reduce the impact of shortfalls due to low yields. • FY18 returns are positive for AF06 and AF08, with AF07 slightly impacted by quality downgrades. • RFM has adjusted the FY18 invoices to inc
Slide 13: Cash flow matrices
Cash flow matrices A ‘sweeper’ windrowing almonds , Mooral almond orchard, Hillston, NSW, February 2018 3
Slide 14: Cash flow matrices
Managed by: Cash flow matrices • Pages 15 to 17 present return matrices based on different price and yield scenarios, using estimated costs for FY19. • The matrices demonstrate that in years where price and / or yields are low, a shortfall may be payable by Growers. A shortfall is represented by bra
Slide 15: AF06 Grower position scenarios (inc. GST return)
Managed by: AF06 Grower position scenarios (inc. GST return) Yield (t/ha) Low Medium High 2.50 3.50 4.00 Low $7.00 $(1,745.87) $(148.14) $650.72 Price ($/kg) Medium $7.50 $(1,433.37) $289.36 $1,150.72 High $8.50 $(808.37) $1,164.36 $2,150.72 The information included in the matrices is not a financia
Slide 16: AF07 Grower position scenarios (inc. GST return)
Managed by: AF07 Grower position scenarios (inc. GST return) Yield (t/ha) Low Medium High 2.50 3.50 4.00 Low $7.00 $(1,746.59) $(358.97) $334.84 Price ($/kg) Medium $7.50 $(1,476.84) $18.68 $766.44 High $8.50 $(937.34) $773.98 $1,629.64 The information included in the matrices is not a financial for
Slide 17: AF08 Grower position scenarios (inc. GST return)
Managed by: AF08 Grower position scenarios (inc. GST return) Yield (t/ha) Low Medium High 2.50 3.50 4.00 Low $7.00 $(1,633.15) $(251.20) $439.77 Price ($/kg) Medium $7.50 $(1,363.40) $126.45 $871.37 High $8.50 $(823.90) $881.75 $1,734.57 The information included in the matrices is not a financial fo
Slide 18: Managing good assets with good people
Rural Funds Management Ltd ACN 077 492 838 AFSL 226701 Canberra Office Level 2, 2 King Street Deakin ACT 2600 Telephone: +61 2 6203 9700 Facsimile: +61 2 6281 5077 Website: ruralfunds.com.au Managing good assets with good people For further information: For media enquiries: Investor relations enquir
Rural Funds Management — Corporate Update (September 2018) on 6ix