LIC: Building a world scale agri-tech company by 2025

LIC: Our History1910 Small regional milk testing Co-ops

1930’s Milk testing throughout New Zealand

1940’s Artificial insemination of dairy cows begins

1950’s Further consolidation of regional Co-ops

1970’s Widespread use of AI in cows

1980’s Wider range of products and services from LIC

1996 Farmer meetings support return of

ownership from NZDB to Users

2002 LIC returned to Users as a Co-operative

under DIRA

2004 LIC issues Investment Shares and lists on the

NZAX – first Co-operative in NZ to list on a Stock

Exchange

LIC at a GlanceFarm Information• Dairy animal recording (MINDA)• Herd testing (milk) – dairy & goats

- Milk analysis centres (NI & SI)• Goats, beef and deer recording and

traceability• Industry statistics

Farm Systems• Automation products - Protrack • Heat detection devices – EZ Heat• On-farm consultancy – FarmWise

LIC at a Glance• Dairy genetics

- 2000 bulls screened (including genomics)

- Liquid and frozen semen technology- Extensive nation-wide field service

• International business - UK, Ireland, China, Latam, Australia,

South Africa • Deer genetics (venison)

Diagnostics

• DNA analysis• Animal health testing and management

Operational OverviewInseminations - NZ 5,000,000

Inseminations – International 800,000

Data transactions 100,000,000

Active Animal records 6,000,000

Electronic software customers 10,500

Milk sample analysed 11,700,000

DNA tests 260,000

Automation systems 1700

AI technicians 950

Field sales team 130

LIC Strategy

Delivering on our Strategy

Currently $232 million revenue, 10% growth last year. Where will growth come from?

• Domestic BAU growth• New product launches• Domestic acquisitions• International growth • International acquisitions

Delivering on our Strategy

• With 105 developers one of NZ’s largest IT development shops

• R&D and product development $26 million in 2014/15

• Over 11% of revenue – very high by NZ primary sector standards

• Growing patent portfolio

Building a world scale company

• Medium sized genetics company, but only 12% of genetics revenue from exports

• Market leading software and hardware in NZ

• Very little export of software and hardware

Strategy for international growth

• Partnership/JV• OEM• Software as a service• Direct sale (where we have a

market presence)• Acquisition

Acquisitions to date

• Dairy Automation Limited (now part of LIC Automation)

• Investment in Figured on Farm• Lely Sensortec• CRV Australia• DD underway on another

acquisition• JV in negotiation• More to follow…..

Strategic Partnerships

LIC is moving from an approach of doing everything our way to a partnership model

• SCR

• Lely

• CRV (in other markets)

• GEA

• Potentially DeLaval and Alta