SML - Synlait Milk Ltd

[RupertBear]

Been there, listened to the presentation and had as well a chat with the chair, the new CEO (Leon Clement) and some of the directors.

First impression of the new CEO: He is tall, speaks Maori (at least he introduced himself in Te Reo) is rather soft spoken and seems to have some of the "softer" traits John Penno potentially was lacking a bit (like focus on brand, logo, mission and lots of fluffy big picture stuff).

What did I learn? Well, pink is the new blue ... the new logo - white "milky" letters on a pink background. That's what new CEO's do - change the logo, right?

They do have a new motto as well: "Doing milk differently for a healthier world". Shareholders are encouraged to share this motto to others (Tick - done)

Leon talked a lot about soft(-er) subjects like health and safety, environmental impact, diversity (in relation to Maori, but as well looking at gender). Some of them obviously important and others good for the soul.

Still - great that Nigel (the CFO) had a wee intermezzo talking about boring old revenue, margins and inceasing the profits per metric ton. More my type of man ; Love this stuff ... and good as well to learn (more from the discussions afterwards) that they are still thinking about ways to improve the margin: Ready to drink infant formula might be in the wings ...

The cynics in me says that if the CEO is introducing himself in Te Reo and talking mainly about safety, environmental impact, diversity, a new motto and a new logo, than this might be his most important priorities. To be fair - he talked as well about diversification of customers and products.

And hey - the company did need a bit more of some of the above - and this is just the catalyst to turn a great team into an outstanding team?

Hard to say at this stage ... but we certainly can't blame the board for looking for a copy of John Penno. Synlait is a great and high performing team ... and I do hope that they found the right CEO to continue their success story, but yes, maybe I can see why they picked him. Time will tell.

Not too many difficult questions.

They did acknowledged that the newly purchased cheese factory (did I hear the word opportunistic?) as well as the deal with Foodstuffs is unlikely to add new margins, but both are considered as a good fit - diversification and reliable base load.

Last years numbers seemed to have made most (all) shareholders happy and content with themselves and life ...

Catering (after the meeting) was healthy and tasty (though cookies in the new Synlait colour pink looked a bit odd, but tasted much better than they looked) ... and numbers - I'd say something like 70 ot 80 shareholders.

Thanks for sharing BP

[minimoke]

Catering (after the meeting) was healthy and tasty (though cookies in the new Synlait colour pink looked a bit odd, but tasted much better than they looked) ... and numbers - I'd say something like 70 to 80 shareholders.

Out of interest how did shareholder diversity look. All pale male? or were there some Maori or other races in there as well?

[BlackPeter]

Out of interest how did shareholder diversity look. All pale male? or were there some Maori or other races in there as well?

Don't forget that the cornerstone shareholder is a Chinese company which did send a number of representatives ... this added clearly to racial diversity ; As well - quite a number of female investors. Not sure about Maori ... but honestly ... I didn't really put focus on race recognition, but I am sure that more people in the room would have understood the CEO if he would have introduced himself in English rather than in Te Reo ....

[minimoke]

Don't forget that the cornerstone shareholder is a Chinese company which did send a number of representatives ... this added clearly to racial diversity ; As well - quite a number of female investors. Not sure about Maori ... but honestly ... I didn't really put focus on race recognition, but I am sure that more people in the room would have understood the CEO if he would have introduced himself in English rather than in Te Reo ....

Well, that is all very disappointing. VERY!

I'm going to hazard a guess and figure less than 2% of the audience were fluent in Te Reo.

Management Communication 101. Communicate in a manner and style that your audience understands, FAIL

Lean Manufacturing 101. Every single thing you do must add productive value. FAIL

Corporate Diplomacy and Respect 101. Greet your (major) stakeholders in their native language (even the Princess chick manages this. FAIL. And I think this is more than a fail - its offensive that he would not show a small courtesy to our Chinese fellow owners.

I see big RED FLAGS of corporate bloat swaying stiffly in the wind. We now get an understanding of Fonteras woes.

He better buck his ideas up or I will be selling out, retaining a handful in reserve to give me entry to next years AGM where I would not expect a repeat of such poor performance.

[nizzy]

pleased to see the new CEO emphasising both the company's NZ'ness & demonstrating forward looking nature by his use of Te Reo. Positions SML ahead of the pack while at same time quietly underemphasising the Chinese majority owner, which is a red flag to NZ Inc if they actually knew.

[minimoke]

demonstrating forward looking nature by his use of Te Reo. .

Lets put the hyperbole aside. Its a dying language (in, no doubt the same way coal is a dying energy source) and thus investing corporate time in it is not forward looking (2001 25% of Maori spoke Te Reo, 2006, 24%, 2013 21%) The Te Kupenga study suggests most of those fluent are aged over 65. Now look at mortality rate of Maori.

[Ggcc]

Lets put the hyperbole aside. Its a dying language (in, no doubt the same way coal is a dying energy source) and thus investing corporate time in it is not forward looking (2001 25% of Maori spoke Te Reo, 2006, 24%, 2013 21%) The Te Kupenga study suggests most of those fluent are aged over 65. Now look at mortality rate of Maori.

I am not Maori, but I encourage nz companies to use New Zealand Maori language/culture to their advantage. As far as I heard the language is on the decline yes, but no need to kick it in the butt. It sets us aside from countries. Foreigners I speak to love the Maori culture. Although if no one understands you, or there are no subtitles it’s pointless.

[minimoke]

I am not Maori, but I encourage nz companies to use New Zealand Maori language/culture to their advantage.

Well, that is just offensive. Maori culture belongs to Maori and shouldn't be appropriated by business for their own commercial gain

That is aside from the fact Maori culture is not steeped in cows, milk or farming.

When I jump into my Santa Fe or turn on my Samsung phone I'll wonder at the emersion in Korean culture I'l experience.

As far as I heard the language is on the decline yes, but no need to kick it in the butt. It sets us aside from countries. Foreigners I speak to love the Maori culture. Although if no one understands you, or there are no subtitles it’s pointless.

I am not suggesting we should kick the language in the butt. But I am clear - it is not the role of listed companies to keep an indigenous language alive. Especially when that company has a reducing share price with no dividend on the horizon. Its a worry if the best they can come up with is a @pinking@ of the brand (WTF!) and an intro to an AGM that no-one understands.

[winner69]

Well, that is just offensive. Maori culture belongs to Maori and shouldn't be appropriated by business for their own commercial gain

That is aside from the fact Maori culture is not steeped in cows, milk or farming.

When I jump into my Santa Fe or turn on my Samsung phone I'll wonder at the emersion in Korean culture I'l experience.

[/FONT][/COLOR][COLOR=#222222][FONT=Verdana]I am not suggesting we should kick the language in the butt. But I am clear - it is not the role of listed companies to keep an indigenous language alive. Especially when that company has a reducing share price with no dividend on the horizon. Its a worry if the best they can come up with is a @pinking@ of the brand (WTF!) and an intro to an AGM that no-one understands.

That pinking is terrible ...from a graphics point of view I mean

Nice of pink though ...very strong

[Ggcc]

Well, that is just offensive. Maori culture belongs to Maori and shouldn't be appropriated by business for their own commercial gain

That is aside from the fact Maori culture is not steeped in cows, milk or farming.

When I jump into my Santa Fe or turn on my Samsung phone I'll wonder at the emersion in Korean culture I'l experience.

[/FONT][/COLOR][COLOR=#222222][FONT=Verdana]I am not suggesting we should kick the language in the butt. But I am clear - it is not the role of listed companies to keep an indigenous language alive. Especially when that company has a reducing share price with no dividend on the horizon. Its a worry if the best they can come up with is a @pinking@ of the brand (WTF!) and an intro to an AGM that no-one understands.

Hey you have your opinion I have mine. Lets agree to disagree and hope this company performs above expectations in the future 😊