Noumi Limited · ASX:NOU
Noumi — Freedom Foods Group — FY2014 Earnings Presentation
37 slides from Noumi's earnings presentation, August 2014
Slide 1: Investor Presentation: Review of Full Year Results FY 2014
Investor Presentation Review of Full Year Results FY 2014 Rory Macleod Managing Director 1
Slide 2: Making Food Better
Making Food Better We believe that people’s needs have moved towards safer, nutrient rich, longer life convenient foods. All our products have a purpose of bringing value to consumers lives through best nutrition and innovative convenience 2
Slide 3: Leading Company Value Adding Australia's Unique Food Capabilities
We aim to be a leading Company Value Adding Australia’s Unique Food Capabilities Premium Allergen Free Non GMO Grains Global Value Added Application Long Life Dairy Value Added Long Life Food & Beverage
Slide 4: Building Global Collaborative Partners
Building Global Collaborative Partners to Value Add Australia's Food Capabilities We have shown capability to build a network of key collaborative partners focussed on developing key category and product channels across global target markets • Bright Dairies China • New Hope Dairies, China • Yihaodi
Slide 5: Business Units and Investments
Business Units and Investments Freedom Foods Pactum Specialty Seafood Brands A2 Corporation (17.9%) 5
Slide 6: Overview of Full Year 2014
freedom, czour Overview of Full Year 2014
Slide 7: Financial Year 2014
Financial Year 2014 Successful year building on the Company’s capability and capacities for profitable growth, investing in our brands and establishing key customer relationships in Asia and North America. 7
Slide 8: Financial Summary – FY 2014
Financial Summary – FY 2014 • Group gross sales growth of 6.3% to $122.7 million (pre consolidation elimination) • Operating EBDITA of $16.6 million, an increase of 43%. • Net Operating Profit was $12.5 million, an increase of 97% (against PYP), inclusive of a decrease in operating tax expense from
Slide 9: Financial Summary – Financial Year 2014
Financial Summary – Financial Year 2014 12 months to 30th June 2014 2013 % Change $’000 $’000 Gross Sales Revenues (Note) 122,722 115,516 +6.3% Net Sales Revenues (Note) 104,616 98,718 +6.0% EBDITA (Operating) (Note) 16,611 11,600 +43.2% EBITA (Operating) (Note) 13,868 8,972 +54.6% Equity Associates
Slide 10: Freedom Foods
Freedom Foods • Building momentum, investing significantly in capability and capacities for future growth including capital expenditure at Leeton and increase in brand marketing. • Total sales growth of 15% – Focus on core Cereal, Cereal Snacks and Non Dairy Beverage – Growth in Cereals assisted Lee
Slide 11: Pactum Food & Beverage
Pactum Food & Beverage • Building momentum , investing significantly in capability and capacities for future growth including the new Pactum Dairy Group (PDG) facility at Shepparton and investment in additional value added format capability. • Pactum’s non-dairy production volumes increased during t
Slide 12: Pactum Dairy
Pactum Dairy • Pactum Dairy (PDG) was established in 2013 to operate UHT dairy milk operations for supply into both the domestic and export markets. PDG is a joint venture between Pactum and Australian Consolidated Milk (ACM), a major Australian dairy milk supply group. • The facility was establishe
Slide 13: Specialty Seafood
Specialty Seafood • Brunswick maintained its No 1 Brand leadership position in Australia / New Zealand • In salmon, the Paramount brands full year sales result was impacted by SKU ranging reductions implemented during 2nd half FY 2013, although the effect on profitability of these reductions was red
Slide 14: a2 Milk Company Limited (17.9% shareholding)
a2 Milk Company Limited (17.9% shareholding) • a2™ branded milk is the fastest growing milk brand in the Australian market and the major driver of category growth nationally, accounting for approximately 9% of grocery channel market share by value. • a2MC also markets a2™ Platinum™ infant formula to
Slide 15: Issued Capital and Shareholding Base
Issued Capital and Shareholding Base • Issued Capital – 150.7m Ordinary Shares – 0.1m CRPS (9% Yield) (Buyback rights now available) • Growth in Institutional shareholder base from capital raising and market trading • Top 10 Register below as at 29th August 2014 1 ARROVEST PTY LTD 86,000,000 57.06%
Slide 16: Looking forward into 2015
freedom, GROUP Looking forward into 2015
Slide 17: Freedom Foods Australasia
Freedom Foods Australasia • Focus into 2015 remains on increasing sales in Australia through building on its category leadership in the health channel and further growth in distribution channels • Exciting innovation pipeline has been developed which will be launched into 2015, through new products
Slide 18: Driving Awareness and Engagement in the Freedom Brand
Driving Awareness and Engagement In the Freedom Brand 18
Slide 19: Allergen Free, Nutrition and Taste
Packaging Repositioning Taste & Nutrition Product Innovation Allergen Free, Nutrition and Taste 19
Slide 20: Australia's Own Brand
Australia’s Own Brand Delivering Best of Australian Food & Beverage to Australian and Asian Consumers 20
Slide 21: Almond Milk Category Growth vs USA
Almond Milk (Australia) Category Growth vs USA Aug-13 Aug-14 USA Almond Milk Share Almond (USA) 70.0% 19.0% Almond 30.0% 60.0% Soy 50.0% 14.5% Rice 11.8% 6.5% Other 8.2% 21
Slide 22: Freedom Foods North America
Freedom Foods North America • Focused on building sales within a core base of retail distribution that has been established in in 2014, largely intoSpecialty / Natural Products Retailers • Current ranging in excess of 3,000 Stores that is either on shelf or due to be ranged over the next few months
Slide 23: Free From Market is Large and Growing in North America
Free From Market is Large and Growing in North America Source,Kehe 23
Slide 24: Presence in Market
freedom Presence in Market WIGH FIBER, Low SALT THE NUTRITIOVS, ALLERGEN FREE AND GREAT TASTING IREAKFAST SolUTIoNl News Feed Freedom Foods Hey! We are from Watertown, NY and while shopping in Syracuse last week, I found your cereal and bought 3 different kinds. Our kids love fun cereal. But with fo
Slide 25: Pactum Food & Beverage
Pactum Food & Beverage • Expectation for increased non-dairy production volumes to support the growth of the Australia’s Own and Blue Diamond brands, as well as external private label requirements in the fast growing almond beverage category. • Further capital expenditure in FY 15 to improve almond
Slide 26: New Food and Beverage Facility in South West Sydney
New Food and Beverage Facility in South West Sydney • Planned new facility in Ingleburn in South West Sydney will provide for significant expansion in capacity and efficiency improvements, including providing more efficient and lower cost warehousing and logistics compared to current arrangements. •
Slide 27: Ingleburn Site
Ingleburn Site (66,000 Sqm adjacent to key National Transport Routes) 27
Slide 28: Pactum Dairy Group
Pactum Dairy Group • Strong demand from customers for 1 Litre and Portion pack volume from South East Asia and China, with Australian milk products providing highest quality and safety at a comparative cost advantage compared to locally sourced milk. • Key relationships including Bright Dairy (Shang
Slide 29: Shepparton Site
freedom Shepparton Site
Slide 30: freedom
freedom eennes From Australia 100% Pure Milk RE aS Fri a °F «ram 30
Slide 31: Specialty Seafood
Specialty Seafood • Positioning for driving the business towards value added products reflecting consumer demand for convenience and superior health benefits • Revitalised packaging for the Brunswick and Paramount Brands to launch into 2014 31
Slide 32: a2 Milk Company Limited – 17.9% Strategic Investment
a2 Milk Company Limited – 17.9% Strategic Investment • Australian business continues to drive growth in milk and infant formula. This is expected to support the ongoing development of China and market entry strategy for USA. • Competitor activity (and recognition of a2) confirms strength of a2 busin
Slide 33: You can avoid the A1 protein
You can avoid the Al protein freedom, GROUP in regular cows’ milk by drinking a2 Milk™ “ane 2 “a 100% , ain , A2 protein i ae ( } , 86fY a 4 te . Pura milk TM ae I Bazsten heat that naturally it comes from ee GO that of Aland A2 protein. f ' @ ) PLATINUM PLATINUM PLATINUM | Full Cream Milk Fa Srv Y
Slide 34: Outlook
Outlook • The Company will continue to build on its capability and capacities for growth, investing in our brands and establishing key customer relationships in Asia and North America through its Freedom Foods and Pactum businesses. • Growth from capital investment program will impact earnings over
Slide 35: Questions
freedom, crour Questions
Slide 36: 36
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Slide 37: Financial Summary by Business – Financial Year 2014
Appendices Financial Summary by Business – Financial Year 2014 Business Unit Freedom Pactum Seafood Net Sales 44,243 46,438 13,239 EBDITA 7,131 9,748 2,431 EBDITA Margins 16.1% 21.0% 18.4% Funds Employed * 41,897 21,864 18,414 Return on Funds Employed (EBDITA) 17.0% 44.6% 13.2% * Excludes FY 14 Capi