Ann: Investor Presentation - FY20, page-58

Hi All,
Wanted to provide some general information for those who have a mild/moderate understanding of dairy and the market FF is in & want more information on what to look for when investing
Firstly (46m) 2020 EBITDA - means the business needs to make save/make between 10-15c on every milk litre sold or make growth in LF sales in order to break even.
- UHT margin grown- probably unlikely. The protein standard of most FF products is well below others within the market.
- LF sells for ~$1500/kg, is this price stable? Prob not, competition is continuing to ramp up with Beston's, Koroit etc
- Operation efficiencies/expenditure - id say yes, definitely less external storage costs?
- Cost of borrowings, financial risk = more costly financing
- Cost of Milk - most likely will increase? Shepparton is based in the north of Victoria with far less rain, with lots of competition for milk, dont see the milk price going down.
- Management: the captain may be gone, but it takes more than 1 person to sink a shi? Directors don't visit sites? little concerning

if the business has no chance of returning a profit then 1c is pretty fair - didn't Tiger sell to Virgin for $1 total value