NAMOI COTTON LIMITED Annual General Meeting
FY2022
CEO & CFO Presentation
Business performance and outlook
STRENGTHEN, STRATEGY & EXECUTION
19 July 2022 - Authorised for release by Namoi Cotton's Board of Directors
Disclaimer
Forward looking statements
This presentation has been prepared by and concerns Namoi Cotton Limited (Namoi) and consists of these slides and any accompanying commentary. By reviewing/attending this presentation, you acknowledge the following statements / information in this disclaimer.
The information contained in this presentation is for informational purposes only. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Namoi, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this presentation. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies.
Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.
Non-International Financial Reporting Standards (Non-IFRS) information
This presentation may make reference to certain non-IFRS financial information. This information is used by management to measure the operating performance of the business and has been presented as this may be useful for investors. This information has not been reviewed by the Group's auditor.
Notes
Numbers in this document are subject to rounding and stated in Australian dollars unless otherwise noted.
References to "Namoi" or the "Company", are references to Namoi Cotton Limited ABN 76 010 485 588, or its subsidiaries.
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Our purpose and values
We are Australia's leading and pioneer cotton agribusiness providing growers an independent pathway to market
Common purpose and values
Safety
We place safety and health first
Teamwork
We build strong partnerships with our customers and each other
Integrity
We keep our promises
Excellence
We are efficient and effective and get the job done
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Business performance
Business highlights
Positive EBITDA in FY2022 with increased volume and preparing for above average FY2023 volume
FY2022 vs FY2021 Highlights
Ginned Bales(1) | NPAT(6) | EBITDA(4) | Core Debt(7) | LTIFR(8) | |||||||||
0.49mb 0.12mb | $(4.4)m $(14.4)m | $1.6m $(12.7)m | $45.1m $49.9m | 15 9 | |||||||||
Positive EBITDA | Executing 4PP Strategy | Positive outlook for FY2023 | |||||||||||
Volume | Strategic initiatives | • Above average cotton production | |||||||||||
• | 0.49 million bales ginned(1) | • | Strengthen ginning network | of 5.6 million bales 2022 season(3) | |||||||||
- 40% below average(2) | - | Increase productivity | • Forecast ginning volume | ||||||||||
Earnings | - New sources of revenue | - | 1.1-1.2m bales | ||||||||||
• | $1.6m EBITDA(4) | • Innovative solutions for growers | - Expect similar volume in 2023 | ||||||||||
given current water availability | |||||||||||||
• | $2.8m Gross EBITDA(5) | Northern Australia | |||||||||||
• Gin-ready preparation in FY2022 | |||||||||||||
Debt | • | Kimberley gin discussions | |||||||||||
- | $8.5m additional expenditure | ||||||||||||
• | $4.7m reduction in core debt(7) | • North QLD gin opportunities | |||||||||||
- Staff to operate 24 hours/day | |||||||||||||
(1) | Include 100% of bales at joint venture gin ('mb' is million bales) | ||||||||||||
(2) | Average of 830,000 bales based on 10 year moving average of total ginning volume | ||||||||||||
(3) | ABARES forecast for cotton production in QLD and NSW (June 2022) | ||||||||||||
(4) | EBITDA is a non-IFRS and unaudited measure defined as earnings before interest, tax, depreciation and amortisation including share of profit from joint ventures and associates excluding impairments and decrements | ||||||||||||
(5) | Gross EBITDA is EBITDA plus add back share of NCA depreciation and interest (i.e. share of NCA EBITDA) less Jobkeeper payment | ||||||||||||
(6) | Net Profit after Tax | ||||||||||||
(7) | Core debt is total interest-bearing liabilities less cash and cash equivalents and less cottonseed inventory | 5 | |||||||||||
(8) | Lost Time Injury Frequency Rate |
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Disclaimer
Namoi Cotton Ltd. published this content on 19 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 July 2022 07:53:06 UTC.
