Joe White Maltings Gary Hughes, General Manager 24 March, 2009
2 Joe White Maltings - overview Australia s s largest maltster One of largest maltsters in the world Annual production of 500,000t 400,000t export 100,000t domestic use Expansion of malthouse capacity - Minto (NSW) plant development will add further 20% Eight plants strategically positioned across Australia Supply malt to blue chip breweries
3 JWM Vision Pre-eminent eminent intercontinental export maltster Natural supplier to North/South East Asia Specialty malt plants Full range of malt types Accessing prime barley growing regions World s best practice operations Capital investment to improve production efficiencies New kiln for Port Adelaide drum plant Growth through carefully planned expansion Minto project (110,000t plant in south-east Sydney) Carefully managed customer service
4 ABB s integrated business model
5 Introduction to Joe White Maltings Began producing malt in Ballarat, Victoria in 1858 Commenced exporting in 1924 Acquired MaltCo. in 2001 Merged with Adelaide Malting Company in 2002 (AusBulk) Became part of ABB Grain Ltd in 2004 Largest malting company in Australia
6 Yesterday
7 Today
8 JWM Business Overview Production capacity 500,000t 000t (8 plants) Assets $270m Sales 20% Domestic / 80% Export (Asia) Revenue $220m Malt Barley Requirement 600,000t 25% Australian Crop
10 Production Capacity Capacity Location Design Malt Market 000mt Perth 200 Circular GV Export/Domestic Adelaide Pt Adelaide 80 GK 60%, Drums 40% Export/Domestic Cavan 96 GK 30%, Saladin Boxes 70% Export/Domestic Ballarat Lake Gardens 36 Saladin Box Export Delacombe 3 Export/Domestic Drums, 2 x Roasters 9 Export/Domestic ti Devonport 6 Drums Domestic Tamworth 45 Drums, Saladin Box Export/Domestic Brisbane 25 Drums (Steep Germinator) Domestic TOTAL CAPACITY 500
11 Brewing in Australia Total Production 17.2mil hl (2007) Carlton United Breweries 11mil hl capacity at three breweries (Victoria, Qld, Tas) Lion Nathan Australia 8mil hl capacity at four major breweries (WA, SA, NSW, Qld) Coopers 1.2mil hl capacity at one brewery in SA includes 0.6mil hl beer and the remainder malt extract J Boags & Sons (LNA) 0.8 mil hl capacity at one brewery in Tasmania
Joe White Maltings 13 Logistics from malthouse to brewery - Geographic advantage
14 JWM research & development Market optimization and targeting of the fermentability of Australian malting barley varieties Assuring the microbial safety and quality of Australian malt and barley Investigating the biochemistry and genetics of protein modification Reducing water and utility (gas and electricity) use in the malthouse Investment in the University of Adelaide barley breeding program Sponsorship of various grower and agronomist driven projects
15 Timetable for malting barley supplies Dec 2009 EU plantings Mar 2010 Australian harvest over Canadian plantings Jun 2010 EU harvest starts Australian plantings Canadian harvest starts Sep 2010 Australian harvest starts Dec 2010
16 International malt demand Growth in Asian malt market has been 5-9% over the last three years Growth is still forecast for 2009 Minto, outer Sydney, to feature a 110,000t capacity malt house and a grain container packing facility Increase JWM s total capacity to 610,000t This project has been designed with an international focus to capture growth in Asian demand Expected to be completed 2H 2010 An artist s impression i of the Minto facility
17 Australian barley production and malting barley export (million t) 6 5 4 3 2 1 0 2004/05 2005/06 2006/07 2007/08 2008/09 malting feed malting barley export Source: ABARE and e-malt.com
18 World barley production (million t) 160 155 150 154 145 140 135 130 135 143 138 139 138 125 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 Source: e-malt.com
19 World barley trade (million t) 20 16 16.99 17.43 16.76 14.83 14.42 15.24 18.41 12 8 4 0 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09f Source: e-malt.com
20 World malting barley exports 2007/08 Other 32.4% Australia 21.6% Total: 3.7 million t USA 2.7% EU 13.5% Canada 29.7% Source: e-malt.com
21 World malting barley exports 2008/09f Other 20.0% Total: 4.0 million t USA 2.5% Australia 32.5% EU 17.5% Canada 27.5% Source: e-malt.com
22 Australian malting barley export destinations South America 43% Vietnam/Thailand 4.7% Korea 4.3% 15% 1.5% 5 year average Japan 10.6% China 78.8% Source: e-malt.com
23 World Beer Production (billion hl) 1.31 1.37 1.39 1.42 1.44 1.48 1.55 16 1.6 1.7 1.79 1.83 1.83 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009f Source: e-malt.com
24 Malt manufacture sales volumes ( 000s t) 600 500 400 395 405 408 502 463 300 336 200 100 0 2003 2004 2005 2006 2007 2008
Thank you Questions?