Refined strategy and roadshow

LIC Roadshow, 28 April – 14 May 2021

Where When
Nelson

Rutherford Hotel, 27 Nile St Wednesday 28
th
April
10.00am – 1.15pm
Hokitika

Beachfront Hotel, 111 Revell St Wednesday 28
th
April
6.30pm – 9.00pm
Culverden

St John Culverden, 23 Montrose Ave Thursday 29
th
April
11.45am – 2.15pm
Ashburton

Hotel Ashburton, 11/35 Racecourse Road Thursday 29
th
April
6.30pm – 9.00pm
Dunsandel

Dunsandel Community Centre, 1456 Tramway Road Friday 30
th
April
9.45am – 12.15pm
Invercargill

Invercargill Workingmens Club, 154 Esk St Thursday 6
th
May
11.00am – 1.15pm
Mosgiel

Hotel Taieri, 6 Gordon Road, Mosgiel Thursday 6
th
May
6.15pm – 8.45pm
Oamaru

Brydone Hotel, 115 Thames St Friday 7
th
May
9.15am – 11.45am
Pahiatua

Bush Multisport Centre, 57 Huxley Street Monday 10
th
May
11.00am - 2pm
Palmerston North

Copthorne Hotel, 110 Fitzherbert Ave Monday 10
th
May
6.30pm – 9.00pm
Hawera

TSB Hub, Camberwell Road Tuesday 11
th
May
10.30am – 1.30pm
New Plymouth

Plymouth International, 220 Courtenay St Tuesday 11
th
May
6.30pm – 9.00pm
Whakatane

Acacia House Conerence Centre, 19 Louvain Street Wednesday 12
th
May
11.45am – 2.15pm
Rotorua

Novotel, Rotorua, Lake End, Tutanekai Street Wednesday 12
th
May
6.30pm – 9.00pm
Okoroire

Okoroire Hot Springs Hotel, 18 Somerville Road Thursday 13
th
May
10.00am – 1.15pm
Morrinsville

Golf Club, Links Road Thursday 13
th
May
6.00pm – 8.30pm
Whangarei

Semenoff Stadium, 51 Okara Drive Friday 14
th
May
10.15am – 1.15pm

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——
LIC 2021

Strategy
Refinement
——

Why we exist
To deliver superior genetics and technological
innovation to help you sustainably farm a
profitable animal.
What is our strategy
in service of?
Building a strong sustainable co-operative,
leading the world in our field and delivering
outstanding value for our customers,
shareholders and industry, next year,
in 5 years and f
or another 100 years.
We have a clear purpose
and ambition informing
our refined strategy

Thanks, here’s what
we’ve achieved together
Over the past 5 years with the support of
shareholders we’ve transformed LIC into a
modern, progressive co-operative with a focus
on the core NZ Dairy Industry.
20162017201820182020 2021
Separation of LIC
Herd Improvement
and Agritech
TransformationSimplificationStrategy Refresh
Governance &
Representation
Strategy
Refinement
A strong platform for future growth
CompleteCompleteCompleteCompleteCompleteWe are here
Strategy Roadmap

LIC is now in a position of strength
Deep
customer
relationships
World
leading
capabilities

A strong
balance
sheet
Forecast
ongoing
growth
Key
assets
A proven
history

However, LIC must now respond to local and global shifts impacting on
our customers, the industry and our co-operative
Consumer
Changing consumer
expectations and behaviours,
driven by sustainability and
health
COVID-19
Long term shifts accelerated
by COVID-19, including the
role of the primary sector in
rebuilding our economy
Industry
The changing shape
of the dairy industry
Technology
Rapid technology shifts
bringing challenges and
opportunities
Regulation
Increasing regulatory
requirements are leading
to pressure and uncertainty
on farm
12345

To respond effectively, our refined
business strategy builds on our
strengths, our clear differentiating
capabilities and key assets.

LIC is a world leader in pasture
based dairy genetics and herd
management.
• Pasture dairy genetics
• Genomics R&D
• Customer reach and scale
• Data acquisition
World leading capabilities

• Genetic and genomic data set
• MINDA database
• MINDA software
• Market leadership in key areas of genetics, software and testing
• Co-operative structure
• International reputation
•Trusted brand with farmers
• Deep,
long term customer relationships
• High throughput capacity (milk testing, animal health, DNA lab)
•Team, talent and passion
• Liquid semen production system
Key assets
Over our history LIC has
built up a portfolio of key
assets that have allowed
for successful outcomes
for our customers.

But we’re also clear on the challenges we face
to respond to change and deliver on our strategy
Weakness in
customer
sentiment
Challenged
shareholder
engagement
Digital and data
capabilities
Focusing on the
right things that
drive value for
farmers

We’ve listened to you, our shareholders.
To overcome our challenges we must
sharpen our focus, strengthen our core
and enhance our capabilities.

Our Farmers
Deepen our understanding of the
current and future needs of all of
our farmers.
Animal
Most sustainable & efficient animal.
Highest value products.
Data & Digital
Modernising the animal
data & digital capabilities.
LIC 2021
Strategy
Doing what we are good at.
Playing to our strengths.
Innovation
Research & development.
Responsive innovation.

What are our foundations?
Sustainable
Co-operative
This means fully leveraging our
co-operative strength and potential for the
long term sustainability of our farmers, our
environment & our industry in New Zealand.
We have a responsibility to our farmers &
shareholders to ensure LIC is strong next year,
in five years and over the next 100 years.

People
We invest in our people to develop
their talent and foster a culture that
embraces change, builds capabilities
and drives results to deliver greater
customer value.
What are our foundations?

Environment
We help farmers to meet the current and
future challenges, in particular water
quality and methane. We will focus our
research and investment and provide tools
to help farmers meet these challenges.

What are our foundations?

Partnership
We will work with others to deliver to
farmers’ needs, partnering with other
companies in our sector to deliver a
seamless service to farmers. This will
require more focus on relationships
with other sector companies such as
processors, fertiliser companies and
device companies.
What are our foundations?

How we will drive value for farmers?
Our Farmers
Deepen our understanding of the current and
future needs of all of our farmers.
• Keep our farmers and future farmers at the
heart of what we do.
• Operational excellence - Continuously improve
our operational excellence for our current and
future farmers by doing the basics right the
first time, every time.

How will it drive value for farmers?
Animal
Most sustainable & efficient animal.
Highest value products.
Support our farmers through genetics,
genomics, milk testing and diagnostics to
produce the most sustainable and efficient
animals and the highest value product.

Data & Digital
Modernising the animal
data & digital capabilities.
Data and digital means investing in and
modernising the animal data & digital
capabilities of our business to enrich our
products, and support enhanced
customer value.
How will it drive value for farmers?

Innovation
Research & development.
Responsive innovation.
Using our capabilities and assets to
develop new products, services and
technology that drive long term and
sustainable customer value.
How will it drive value for farmers?

What is at the heart of our strategy?
Value for our Farmer
Shareholders
Drive value, innovate and deliver a positive
impact for our customers and shareholders
by: Focussing on helping our farmers optimise
value from their livestock by enabling them to
produce the most sustainable and efficient
animals and the highest value product.

What’s going to be different?
Key areas of change
Sharpen our focus
and play to our strengths
Strengthen our core
and improve our ability to
respond to change
Enhance our capabilities
and find new opportunities for
innovation and growth

• Develop world class talent and culture
• Focus only on what really drives customer value
• Better understand consumers and sustainability
• Truly understand our customers
• Do fewer things better
• Engage our shareholders
• Enable our customers’ licence to operate
• Do the basics right, every time
• Continually improve data and digital capabilities
How will we do it?

Our three commitments
to you
Operational
Excellence
We commit to getting the basics right and
delivering for you, on time, every time.
Faster Genetic
Improvement
We commit to having your back when it comes to
helping you meet the environmental challenges
you face, in particular animal efficiency, and
nitrogen and methane mitigation.
Software Reliability
and Performance
We commit to being better at delivering our
software to you. We renew our commitment to
continuous improvement and transparency
around delivery of new features.
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2
3
We will be guided by our primary
focus of delivering value for our
farmer shareholders