Beston Global Food : Investor Roadshow Presentation

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Investor

Roadshow

June 2022

Roger Sexton AM	Fabrizio Jorge
Chairman	Chief Executive

This ASX Release was approved and authorised for release by the Board of BFC

1. Recap on our journey so far …..

What? : Our Mission
onlyWhy?	: Strategy
useHOW? TEN YEAR BUSINESS PLAN
How?	: Ten Year
personalr	Business Plan

To be a leading, Australia based supplier of clean, healthy protein products to the worlds growing consumer markets, particularly Asia, by building a

RATIONALE FINANCIAL IMPACT

reputation for quality, innovation and integrity.

To capitalize on the secular global themes around the supply of protein to "feed the world" (with a global population increasing to 10 billion by 2050 and a rapidly expanding middle income class) and an increasing focus on health, nutrition, food safety and food security.

Phase 1		Phase 2		Phase 3

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2. Milestones Achieved in Phases 1 & 2

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Year-on-year growth in revenues of 111% per annum over the five years to June 2021
(recognized as the fastest growing food and beverage company in Australia and second
fastest in the Asia Pacific region in a Financial Times survey)	RATIONALE FINANCIAL IMPACT

Built milk pool from 17 million litres in 2015 to circa 155 million litres currently (ie year-on- year growth of 135% pa). Well placed to meet 155-175 million litres forecast in FY23, consolidating its position as largest Dairy processor in South Australia

Built capability and capacity in mozzarella production, tripling production output since 2019 from 4,400MT pa to 16,000MT pa currently

Won 161 major industry awards for quality since 2015 both in Australia and overseas

Acquired a dairy nutraceutical plant in 2016 and expanded the plant in 2021 (from 4MT pa capacity to 25MT pa)

Only one of ten manufacturers in the world with installed capacity to produce 5% of the worlds demand for Lactoferrin

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3. Stayed the course to realise value in Phase 3

Value has been created through a consistent focus on five strategic imperatives

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1. MILK SUPPLY	•	FY22 milk supply c. 155ML.
	• Security of supply (contracts with dairy farms)
	•	Sourcing ~30% of South Australian milk. Targeting further growth.

use	Increasing
returns per
kg of milk
solids

2. SALES PIPELINE

3. CAPACITY UTILISATION

• 1H22 Group sales up approximately 15% on 2H21, and continuing strong in 2H22
• 3 significant mozzarella contracts with high quality customers
• Mix of domestic and export customers in different market segments
• Strong demand in 2H22 and FY23 for dairy products with prices strengthening
• Mozzarella production increased by ~28% in FY22 v FY21 on higher milk supply and reliable plant operations with quality gains
• Capacity utilisation at Jervois now at around 90% : stable plant operations enabling yield and unit cost efficiency gains

4. PRODUCT MIX

5. DAIRY NUTRACEUTICALS

• Transitioning to higher margin product mix with addition of Lactoferrin to FY22 sales. Gross margins increased v 1H21 and improving.
• Lactoferrin plant commissioned 4Q21 on budget and operating well. FY22 production will be around 16T - 19T.
• Lactoferrin range expanded to produce for Japanese market specifications in addition to China market. We now export to China, USA, Japan, South Korea, India and EU.
• Innovating with aim to produce higher spec Lactoferrin for niche markets
• Developing capability to extract other nutraceuticals

Outlook is

strengthening

Covid-19 impacts	Dairy commodity	Lactoferrin sales
receding across	prices rising	increasing in a
the world		soft market

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4. Beston Global Food Co: Today

We are a dairy, dairy nutraceuticals and meat processing company based in South Australia We provide Australian and global customers with healthy choice dairy and meat proteins

235 Beston direct employees, inc. 180 Beston Pure Dairies

DAIRY

Jervois and Murray Bridge, South Australia 90% of group revenue - Circa $150m Sales

	Mozzarella			Lactoferrin		Milk supply from
•	15,500k mt
	•	$13.5m Project		South Australian dairy
•	$90m sales				farmers
	•	17-20mt Vol
Whey powder			•	155m litres
	•	$17-20m Sales
	Cream			•	$90m Spend
		•	130mg per litre
	Butter			•	46 farms
	Cheddar					• 30%+ of SA Milk

Extracting more value from every litre of milk

processed

MEAT

Shepparton, Victoria 10% of group revenue

Dice and grind

ingredients

Premium hamburgers,

meatballs

Retail products eg

lamb shanks

Alternative meats

Growth

potential

Technology: Core operating assets supported by proprietary authentication and traceability software

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