Calving 1000 Heifers - Unlisted

Calving 1000 Heifers - Unlisted

Earnings Update 19 April 2013

Updated Outlook for 2013 Season

• Synlait Farms joined Unlisted in March

• The local and global dairy environment has changed markedly

over the last six weeks

• GDT milk prices have increased ~40% in the last month

• Milk supply from New Zealand has been negatively impacted

by severe dry conditions in most regions

• Synlait Milk has increased the forecast for final milk price from

$5.40 to $5.80 for the 2013 season

• Major banks are predicting a milk price in the range

$6.20 - $6.50 for 2014

Updated Outlook for 2013 Season

• SFL has reduced the impact of the dry climatic conditions

through the efficient use of irrigation

• SFL will produce ~ 5.4 million kgs MS this season

• Revenue is likely to increase ~ $2m with the forecast

improvement in milk price

• SFL expenditure is in line with budget

• Upward movement in dairy land values as represented by

recent transactions may be reflected in SFL farm valuations

• SFL will provide an earnings update in late June

Updated Outlook for 2013 Season

Relevant readings listed below

• ANZ February Update

• ANZ April Update

• BNZ Market Outlook April

Why Invest in Synlait Farms?

Attractive Investment Proposition

Strong Cash Flow


Strong Industry


High quality scale

asset portfolio

Cost competitive farming operations generating strong cash

flows. Operating cash flow $14.4 million for the 2012 season.

Direct exposure to the growing global demand for high quality

food products sourced from sustainable farming operations

Located on some of the most productive farm land in NZ and

globally cost competitive with well invested infrastructure.

Productivity growth Identified plans to improve production by 10%+

Growth opportunities

Well positioned with

major customer


management team

Irrigation development investment and acquisitions where

management can improve performance

Strategic relationship with Synlait Milk Limited, with

competitive tension from other major milk processors

Track record of developing and managing large scale, irrigated

dairy farming operations in Canterbury to create value

Trading in Synlait Farms Shares

• Synlait Farms shares are available on Unlisted trading

platform and normal brokerage fees apply

• Synlait Farms is a Takeover Code company

• Given the predominantly NZ shareholder base, ability

for foreign investors to accumulate a meaningful

investment without requiring OIO approval

Contact Details

Juliet Maclean

Chief Executive Officer

Synlait Farms Limited

Tel : +643 373 3013



Brenda Morton

Group Financial Controller

Synlait Farms Limited

Tel : +643 373 3022




More magazines by this user
Similar magazines