Fonterra Co-operative Group Limited · NZX:FCG
Fonterra Co-operative — Q1 FY2021 Earnings Presentation
14 slides from Fonterra Co-operative's earnings presentation, Dec 4, 2020
Slide 1: Fonterra Q1 FY21 Results, 4 December 2020
Fonterra) Dairy forlife 4 a
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements and projections. There can be no certainty of outcome in relation to the matters to which the forward-looking statements and projections relate. These forward-looking statements and projections involve known and unknown risks, uncer
Slide 3: Q1 FY21 highlights
• Narrowed and lifted the lower end of forecast Farmgate Milk Price range • Normalised EBIT up on same time last year, which was before we felt the impact of COVID-19 ¹ • Maintained forecast earnings per share range ² • Uncertainty remains around future impact of COVID-19 ³ • Progressing on our envi
Slide 4: Q1 financial performance
¹ ² ∆³ • Similar volumes sold reflecting continued strong customer demand for dairy and careful management of supply chain • Increased Gross Profit due to improved margins and higher volumes in Foodservice and Consumer in Greater China and South East Asia • Stable performance in Ingredients overall.
Slide 5: Strategic progress and balance sheet strengthening
Strengthening our Expanded Partnering with balance sheet Continuously releasing new China Foodservice Land O’Lakes innovative ways of using our China Farms’ into 13 new cities to accelerate demand products in local Chinese sales agreement taking total to for our Foodservice products cuisine, with 54
Slide 6: Supporting our people and community
Supporting the NZ Government’s Taking new approach Supporting our people skills initiatives by increasing the to community nutrition during COVID-19 remains number of apprenticeship roles in programmes, growing our number one priority engineering and dairy processing KickStart Breakfast and partneri
Slide 7: Environmental progress and sustainability
All Fonterra farmers in NZ now have Launched Anchor Installed solar panels at 2 sites access to unique farm greenhouse plant-based bottle as part in Malaysia and Indonesia, gas emissions profiles of our goal to have all packaging which will power up to 25% – the first time such a tool has been reusa
Slide 8: Farmgate Milk Price and earnings guidance
per kgMS cents per share • Narrowed and lifted the lower end of forecast Farmgate • Maintained full year forecast normalised earnings per Milk Price range to $6.70-$7.30 per kgMS share range of 20-35 cents • Assumes no significant impact on product pricing • Currently tracking above midpoint of rang
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Slide 10: New Zealand milk collections
90 Volume (m litres/day) • Season to date collection, June – October, 80 was 527.5 million kgMS, up 0.5% on 70 last season • Good early season conditions have 60 contributed to collections being slightly ahead 50 of last season • Poor pasture quality impacted milk production 40 across parts of the c
Slide 11: Five-year Q1 financial trends
930 805 831 832 4.2 4.2 841 783 3.8 4.0 3.9 746 758 660 641 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Sales Volume ('000 MT) Revenue ($ billion) Gross Profit ($ million) ¹² 621 636 656 252 250 552 523 178 (648) 72 (671) (610) (845) 21 (1,245) 2017 2018 2019 2020 2021
Slide 12: Segment reporting under new operating model
• At our half year announcement we will include detailed segment reporting under the new customer- led operating model • To provide further performance insights and transparency, the new segment reporting will include both geographical and product channel, that is Ingredients, Foodservice and Consum
Slide 13: Board Statement of Intentions update
The Board Statement of Intentions sets out the Board’s intentions for the performance and operations of Fonterra for FY21. In accordance with the Constitution of Fonterra, Fonterra is required to provide a regular overview to the Fonterra Shareholders’ Council of actual achievements, compared with t
Slide 14: Definitions
The price for milk supplied in New Zealand to Fonterra by Gearing ratio is calculated as economic net interest-bearing farmer shareholders. debt divided by total capital. Total capital is equity excluding the hedge reserves, plus economic net interest-bearing debt. Kilogram of milk solids, the measu
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