Farm Pride Foods Li i dLi mited 2014 Annual …2014 Annual General For personal use only Meeting Peter BllBell (Ch i )(Chairman) welcomes you to our ... • All Farm Pride sites have

id d Li i dFarm Pride Foods Limited

2014 Annual General2014 Annual General Meeting

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P B ll (Ch i )Peter Bell (Chairman)welcomes you to our

Annual General Meeting of Farm Pride Foods Ltd.

Farm Pride Foods Ltd

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Farm Pride Foods Limited Board

Peter BellPeter BellChairman & Non‐executive Director

MalcolmWardMalcolm WardNon‐executive Director

Bruce De LacyInterim CEO / Company Secretary/ CFO


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Items of business

• Receive and consider the Financial Report, Directors Report,

notes to Financial Statements and Auditors Report for the year

ended 30 June 2014.

• Re‐election of Mr. Peter Bell as a director of the company.

• Election of Mr. Bruce De Lacy as a director of the company.

Ad i f R i R f h d d 30 J• Adoption of Remuneration Report for the year ended 30 June

2014.


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Item 1: Financial statements

To consider and receive the Financial Report, Directors Report and Auditors Report for the Company for the year ended 30 June 2014.


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Item 2: Election of directors

2.1 Peter Bell is to retire by rotation and being eligible, offers himself for re‐election as a director of the Company.

For Against Open TOTAL Abstain

37,979,560 92,402 570,379 38,642,341 16,440

98 28 % 0 24% 1 48%98.28 % 0.24% 1.48%


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Item 2: Election of directors

2.2 Bruce De Lacy who was appointed to fill a casual vacancy offers himself for re‐election.


37,979,560 92,402 570,379 38,642,341 16,440

98.28 % 0.24% 1.48%


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Item 3: Adoption of remuneration report

To adopt the Remuneration Report for the Company for the year ended 30 June 2014.


7,607,785 235,656 571,379 8,414,820 18,668

90.41 % 2.80% 6.79%


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Interim Chief Executive Officer Update


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FY14 overview

• Statutory NPAT $2.17million.

• Fulfilled commitment to undertake a major review of overhead costs in response to shareholder concerns.

• Second review undertaken in Q1FY15.

F th i t b d t k b t Q2FY15 d Q4FY15• Further reviews to be undertaken between Q2FY15 and Q4FY15.

• Better placed to meet the challenges of an industry over supply.


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Results FY13 vs. FY14

2013$’000

2014$’000 %

Profit after income tax 604 2,169 259.1

Current liabilities 32,858 26,575 (19.1)

Current assets 24,233 21,296 (12.1)

( )Earnings per share (cents) 1.09 3.93 260.6


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Delivering on strategyg gy

Year on year:• Borrowings reduced by 19%Borrowings reduced by 19%• EBITDA increased by 24%• Net cash flow provided by operating activities

i d b 53%increased by 53% • Further debt reduction and improving profitability

now key focus for enhancing shareholder value


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Borrowings ‐ Bank + Lease Finance Bank + RPL

$18.0

$20.0

Leases

$14.7 $11.5

$10 0

$12.0

$14.0

$16.0

on $

$9.8

$4.0

$6.0

$8.0

$10.0

Millio

$4.1$6.1

$4.4

$0.0

$2.0


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Net Tangible Assets Net Cash Flow from Operating Activities

$21.8

$22.0

$22.2

$5.0

$6.0

$22.1$21.2

$21.4

$21.6

Million $

$3.0

$4.0

Millions

$20.9

$21.9

$20.6

$20.8

$21.0

$2.9 $3.1

$4.8

$2.0

M

$20.2

$20.4

FY12 FY13 FY14$‐

$1.0

FY12 FY13 FY14


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FY14 Performance highlights• First half loss $52 000 Second half profit• First half loss $52,000. Second half profit

$2.224 million.

• EBITDA first half $2 415 million Second halfEBITDA first half $2.415 million. Second half $4.917 million.

• Net cash provided by operating activities p y p g

first half $2.11 million. Second half $2.65 million.

• Net cash used in financing activities first half $0.86 million. Second half $1.39 million.

• Gearing well within banking covenants.


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Shell business


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Eggs Sold (excluding product egg)

400

450

250

300

350

Millions

100

150

200

Dozen

s ‐M

0

50

100

FY 10 FY 11 FY 12 FY 13 FY 14


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Eggs sold by category (doz.)

25,000,000

30,000,000 Cage

FR

Barn

15,000,000

20,000,000

5,000,000

10,000,000

‐FY 10 FY 11 FY 12 FY 13 FY 14


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Product business


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Sales of Manufactured Egg Products ‐ kgs

Kg

5 000 000

6,000,000

Kg

3,000,000

4,000,000

5,000,000

1,000,000

2,000,000

0FY 10 FY 11 FY 12 FY 13 FY 14


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Manufactured egg products• Processes streamlined resulting in

d d l f d(L/K )• Additional procedures

i l d f h dreduced volumes of water used(L/Kg) implemented to further reduce risk of contamination (E.coli).

• Installation of controllers on Average Water usage ( L/Kg output)equipment to reduce foaming of egg product and energy used.

• Smart meters installed to allow11.00

12.00

13.00

• Smart meters installed to allow monitoring of electricity usage to assist in cost analysis and increased savings.8.00

9.00

10.00

L/Kg

5.00

6.00

7.00

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014


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What’s new?

• On‐pack promotion to coincide with movie / DVD

What s new?

p plaunch.

• Prize supplied by movie house creates a lot of• Prize supplied by movie house, creates a lot of consumer interest and point of difference versus other free range brands.


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Walking with Dinosaurs

Our most recent promotion, with

i l disocial media activity and happy winners


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Next....... The Hobbit ‐ The Battle of Five Armies

This promotion will run from Nov to Jan to celebrate the s p o o o u o o o a o ce eb a e eDec 26 release in movies


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Carton Packaging plant has been manufacturing green egg cartons for all our free range egg carton brands.

Nowmanufacturing pink colouredNow manufacturing pink coloured egg cartons for McGrath Foundation “pink” free range and barn laid eggs.


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Due to community concerns about food quality in generalabout food quality in general, Farm Pride will shortly launch a range of smaller frozen 950ml egg hi lk d h lwhite, egg yolk and whole egg.

Aimed at smaller bakeries foodAimed at smaller bakeries, food service customers and distributors who can’t defrost current 10kg product and use within shelf life.


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Quality assurance

• All Farm Pride sites have now achieved annual audit status for SQF 2000 Food Safety Standard.

• In the past 12 months improvements made in d i t i ti i k i ireducing contamination risk in processing areas.

Including:

– Improved sanitation program.

Changes in policies to provide further protection– Changes in policies to provide further protection from carry over from contaminated areas.

– Foot dips at all entries.

– Further staff trainingFurther staff training

• Improved systems and analysis of data means improved quality of end product and reduced customer complaints and rejections.


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Health and safety

• Safety is a priority for our business and improvements to processes d i t l land equipment are regularly

reviewed.

• Staff training and focus on health• Staff training and focus on health and safety has increased.

• New WinOHS software allows usNew WinOHS software allows us to better report and monitor incidents that have occurred across various areas of the b ibusiness.


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Outlook• Industry conditions weakening reflecting impact of increased egg production.

• Average egg prices expected to ease over the next 6 to 8 months.

• Continuing to assess opportunities to remove cost and increase profit by better utilising capacities at each site.

• Free Range and Cage Free demand remains strong and increasing. Additional capital requirements for transition to more cage free production.

• Continuation of easing demand for cage eggs. May rebound if economic conditions tighten.

• 1H15 EBITDA expected to be similar to 2H14.

• Weaker volumes.

• Downward price pressure increases 2Q15.

• 2H15 EBITDA expected to benefit from full impact of cost savings.p p g

• Further progress and focus on increasing EBITDA and reducing net debt.


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QUESTIONS ?

THANK YOU


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Documents

Farm Pride Foods Li i dLi mited 2014 Annual …2014 Annual General For personal use only Meeting Peter BllBell (Ch i )(Chairman) welcomes you to our ... • All Farm Pride sites have