TasFoods : 2021 Investor Presentation

only	FY 2021 Results &
Resetting Strategic Focus
use
ersonal

Scott Hadley - Chief Executive Officer

Shona Croucher - Chief Financial Officer

FY21 Results Presentation & Strategic Outlook | February 2022

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PREMIUM

EVERYDAY

LUXURY

MAINSTREAM / VALUE

Our Brand Portfolio & Customer Channels

Brands & Product Strategy

Brands that reflect artisan provenance & heritage, targeted at food lovers seeking provenance behind the product

Brands that provide a piece of indulgence for everyday life, targeted at national retail & export markets

Brands that support local markets with local produts, providing profitable volume to underpin the operations

Sales Channels

Retail

Distributors

Food Service

Consumer Direct

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FY21 Profit & Loss

$000's

Income

Revenue from operations onlyOther income

Total income

Expenses

Fair value adjustment of biological assets Impairment of goodwill

Raw materials used

Employment and contractor expense useFreight

Occupancy costs Depreciation and amortisation Finance costs

Travel and accommodation Legal and professional fees Marketing and event expenses

ersonalRepairs and maintenance Research and development Investment expenses Other expenses

Loss before income tax

Income tax benefit/(expense)

Net Loss after tax for the year from continuing operations

FY21		FY20		% Change
69,441		66,911	3.8%
626		526	19.2%
70,067		67,436		3.9%
(76)		(1,300)	94.1%
(3,907)		(3,500)	(11.6%)
(40,840)		(39,193)	(4.2%)
(20,230)		(17,487)	(15.7%)
(5,048)		(4,516)	(11.8%)
(1,422)		(1,446)	1.7%
(2,037)		(2,107)	3.3%
(314)		(346)	9.4%
(72)		(71)	(1.3%)
(637)		(472)	(34.9%)
(730)		(514)	(42.1%)
(1,091)		(889)	(22.7%)
(27)		(25)	(11.4%)
-		(15)	100.0%
(4,377)		(3,265)	(34.1%)
(10,741)		(7,709)		(39.3%)
-		1,302	100.0%
(10,741)		(6,407)		(67.6%)

• Revenue from operations increased by 3.8% on the back of increased volume in Nichols, MVD and Pyengana
• Betta milk volume faced competitive headwinds in the core white milk business
• Raw material costs increases of 4% were predominately felt in milk, cream and wheat (major component of poultry feed)
• Employment cost comparison to prior years is significantly impacted by the one-off benefit received in 2020 of circa $1.2m relating to Payroll Tax relief and JobKeeper payments.
• Freight and distribution costs increased as a result of higher fuel, insurance and supply chain inefficiencies
• The increase in marketing on last year was as a result of developing the new organic brand, Isle & Sky
• Repairs & Maintenance increased due to catch up with maintenance program
• Other expenses have risen predominately due to increases in insurance costs and IT related expenditure (including ERP related costs)
• The goodwill impairment charge of $3.9m is attributable to Dairy ($2.8m) and Poultry ($1.1m). Brand valuation remain intact.

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FY21 Balance Sheet

$000's

Current Assets

Cash & Cash Equivalents

Trade & Other Receivables Biological Assets

onlyInventory Prepayments

Total Current Assets

Non-Current Assets

Property, Plant & Equipment

Right of Use Assets

Intangible Assets

Biological Assets

Total Non-Current Assets useTotal Assets

Current Liabilities

Trade & Other Payables

Borrowings

Lease Liabilities

Provisions

Total Current Liabilities

Non-Current Liabilities

Borrowings

ersonalLease Liabilities Provisions

Total Non-Current Liabilities

Total Liabilities

Net Assets

Equity

Contributed Equity

Reserves

Accumulated Losses

Total Equity

FY21		FY20
1,450		7,635
4,973		4,493
2,145		2,338
4,646		4,504
976		905
14,191		19,877
25,904		25,308
1,418		968
7,195		10,953
30		38
34,547		37,267
48,738		57,144
9,605		9,175
1,047		539
193		327
1,365		1,172
12,210		11,214
6,422		5,278
1,339		1,258
169		153
7,930		6,688
20,140		17,903
28,598		39,241
61,053		61,053
691		594
(33,146)		(22,406)
28,598		39,241

• The Group is supported by a balance sheet with a net asset position of $28.6m (including property, plant and equipment balances of $25.9m)
• Cash position reduced compared to 2020 with $1.4m cash at
  bank. $2.5m of unused finance facility available to be drawn upon if required.
• During 2021 the group invested $2.4 million into fixed assets including $1.6 million for new organic chicken farming sheds. These were later recapitalised through a funding arrangement of $1.5 million
• After the goodwill impairment charge, the intangible assets solely relate to the brand values in Dairy and Poultry business units
• All other elements of the balance sheet are relatively consistent with last year

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FY21 Cash Flow

$000's	FY21	FY20
Cash flows from operating activities
Receipts from customers	69,587	67,342
Payments to suppliers and employees	(73,969)	(68,225)
only
Interest received	1	2
Interest paid	(127)	(339)
Expenditure incurred in the pursuit of acquisitions and inv. opportunities	-	(15)
I come taxes received	-	-
Other	51	712
Net cash used in operating activities	(4,457)	(523)
Cash flows from investing activities
Payments for property, plant and equipment	(2,436)	(1,082)
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Payments for leases	(196)	-
Payments for other non-current assets	(159)	(16)
Proceeds from disposal of property, plant, and equipment	-	23
Net cash used in business combination	-	-
Net cash used in investing activities	(2,791)	(1,075)
Cash flows from financing activities
Proceeds from issue of shares	-	7,134
Cost of issuing shares	(14)	(125)
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Proceeds from borrowings	2,136	1,123
Principal elements of borrowing payments	(450)	-
Principal elements of lease payments	(196)	(732)
Transaction costs related to borrowings	(23)	(1)
Net cash provided by financing activities	1,453	7,399
Net (decrease)/increase in cash held	(5,795)	5,801
Cash and cash equivalents at the beginning of the year	7,245	1,444
Cash and cash equivalents at the end of the year	1,450	7,245

• Net cash outflows from operating activities were $4.4 million which is reflective of the increased input costs including grain costs associated with feed, substantial increases in milk purchases, increased labour processing costs and significant increases in freight and distribution costs
• We invested $2.4 million into fixed assets including $1.6 million for new organic chicken farming sheds and other smaller projects
• The business conducted capital raises last year of $7.1m which was not replicated in 2021
• The proceeds from borrowings increase in 2021 relates to the recapitalisation of the organic sheds of $1.5m

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