Investor Presentaiton
CAPITAL MANAGEMENT OUTCOMES
DISCIPLINED APPROACH TO CAPITAL MANAGEMENT DURING BUSINESS RECOVERY PHASE
Cashflow from
operations
Cashflow from strategic
activities
Cashflow from
interest and tax
Strong cash generation
Sustaining capital¹
Annual spend range of approximately 75-90% of depreciation pre AASB 16
Maintaining a strong balance sheet
Target leverage² (underlying pre AASB 16) of 1.0x to 2.0x
Reliable dividends to shareholders
Dividend payout ratio 60-80% of Underlying NPAT
INGHAM'S
Always Good
Cashflow from operations of $140.3M, a decline of $46.3M on
PCP due to a decline in 1H EBITDA pre AASB 16 on lower
trading performance, higher Business Transformation costs,
and an increase in Working Capital due to growth in Biological
assets (cycling higher feed costs) and Trade Receivables (ASP
growth for total poultry and external feed sales)
Capex spend of $14.2M (53% of depreciation pre AASB 16)
Leverage of 2.5 times, above top of target range due to
lower rolling 12-month EBITDA result
Extended key debt facilities for a further 2 years to
November 2025
Interim dividend of 4.5 cps, representing a payout ratio of
63% of Underlying NPAT
Investing in growth opportunities & major projects
Where aligned with strategy and expected to deliver returns in excess of specified hurdles
Additional returns to shareholders
Capital returns / special dividends / share buybacks
Maximise shareholder value
Over time the objective is to deliver a return on invested capital in excess of WACC
Growth and major project capex of $9.3M on NSW Breeder
Triangle
1.
Sustaining capital includes maintenance, replacement, regulatory and stay-in-business capital
2.
Leverage = Net Debt / LTM Underlying EBITDA pre AASB 16, Net Debt comprises of borrowing facilities less cash and cash equivalents
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