ARC Funds Limited · ASX:ARC
ARC Funds — Australian Rural Capital — Investor Presentation (February 2015)
12 slides from ARC Funds's investor presentation, Feb 4, 2015
Slide 1: Chairman's Letter to Shareholders
Chairman’s Letter to Shareholders Dear Fellow Shareholders, For personal use only Welcome to my first letter as Chairman of Australian Rural Capital, which I will refer to as ARC. The presentation to shareholders at the AGM in September 2014 (which is available on the ASX platform) identified the pa
Slide 2: For personal use only
We continue to believe the current capital structure does not serve as the most appropriate or efficient capital structure for Namoi Cotton to capture the significant growth and consolidation opportunities in the Cotton Industry. These opportunities could be beneficial to all industry stakeholders a
Slide 3: Seek to pay an annual dividend; The Landscape
Seek to pay an annual dividend (subject to distributable profits ) We will commence paying dividends on an annual basis once we have distributable profits and this For personal use only will be a function of the performance of our investments and the growth of our income streams from our proposed fu
Slide 4: Summary
Summary ARC is in a solid financial position, we continue to progress our initiatives to grow the business with vigour. Opportunities continue to be presented on both sides of the equation, as investments and For personal use only sources of capital. We remain patient, prudent, and consistent to our
Slide 5: Investment Approach and Process
For personal use only INVESTMENT APPROACH AND PROCESS James Jackson, Executive Chairman February 2015
Slide 6: Disclaimer
Disclaimer For personal use only This presentation is for general information purposes, it does not purport to provide recommendations or advice or opinions in relation to specific investments or securities. The presentation (in whole or part) is being supplied for information purposes only and not
Slide 7: How we seek out opportunities
How we seek out opportunities For personal use only • Identify economically sustainable production and regions, low cost producers or product with a point of difference - high growth, product in demand • Assess strategic infrastructure (we call them Agristructure assets), processing, packing, storag
Slide 8: The Investment Themes
The Investment Themes For personal use only • Ownership of strategic hard assets at discount to replacement costs • Sector ownership fragmentation creates consolidation opportunities both vertically and horizontally • Increasing capacity utilisation drives value uplift • Recognition of pronounced cy
Slide 9: Expected Returns from these Assets
Expected Returns from these Assets For personal use only • Agristructure/processing assets should provide income of 10-12% per annum and cash flow (after stay –in business capex) of 8% per annum. • Generally low growth in nature, however the investments will be selected based on the opportunity to:
Slide 10: Basic Investment Screens
Basic Investment Screens For personal use only 1. Quality and nature of the assets and/or business model must be strategic and sustainable both economically and environmentally 2. A strategy and path to create and/or unlock value and enable growth 3. Low levels of debt within the investment or busin
Slide 11: Investment Types
Investment Types For personal use only • Equity or quasi-equity in listed public companies and co- operatives • Equity or shares in unlisted public companies and co- operatives • Equity in private companies with public company governance standards • Convertible Bonds (particularly in private compani
Slide 12: Investors in Agribusiness and Agristructure
For personal use only “Investors in Agribusiness and Agristructure”
Australian Rural Capital — Investor Presentation (February 2015) on 6ix