Ridley Corporation Limited · ASX:RIC
Ridley — FY2004 Earnings Presentation
31 slides from Ridley's earnings presentation, August 2004
Slide 1: Ridley Corporation 2004 Annual Results Presentation
RIDLEY CORPORATION 2004 ANNUAL RESULTS PRESENTATION
Slide 2: Main Features
Main Features • Post drought impact • Disease issues in North America. US/Canadian border still closed • Cotswold exit • Currency translation impact • Debt reduction continues • Sweetlix acquisition
Slide 3: Results
Results A$ million O Sales 1,179 -16% O EBITDA 71 -28% O EBIT 47 -34% O Net Profit 18* -43% O Dividends 5.75cps Unchanged * Net profit before 2004 significant item - down 35%
Slide 4: Sales By Division
Sales By Division A$ million 1,411 (115) 34 (23) Feed (6) 1,179 Feed USA Australia Feed Salt Canada (122) Currency 2003 2004
Slide 5: Net Operating Profit
Net Operating Profit A$ million 37.2 20.5 (13.4) Feed USA (13.2) 7.4 Feed Australia Borrowing (3.9) 1.0 costs, tax and Corporate outside equity Feed Canada (2.4) 7.8 costs Salt Cotswold 2003 2004
Slide 6: Feed - Australia
Feed - Australia A$ million Sales 441 -21% EBIT 7 -65% Features - Rapid decline in grain prices in first half - Dairy market – very slow recovery - Poor season for supplements - Competitive pressure due to volume decline - Cost reductions
Slide 7: Feed – Australia Sales Volumes
Feed – Australia Sales Volumes Tonnes 000’s 1,541 (35) 1,433 Supplements (29) Beef (64) Dairy (6) 26 Other Poultry 2003 2004
Slide 8: Feed – Australia EBIT
Feed – Australia EBIT A$ million 20.2 (5.6) 7.0 Volume (9.3) Margins (0.8) 2.5 Costs Redundancy payments 2003 2004
Slide 9: Feed - USA
Feed - USA US$ million Sales 331 +4% EBIT 18 -19% Features - Swine margins under pressure / customer consolidation - Ongoing PRRS outbreak - Other disease issues - Higher corn/meal price - Supplements volumes low / high cattle prices / border closure - Turbulent operating environment
Slide 10: Feed - USA (A$)
Feed - USA A$ million Sales 478 -13% EBIT 26 -34% Features - Currency impact of A$4 million
Slide 11: Feed – USA EBIT
Feed – USA EBIT US$ million 22.3 18.0 (1.0) 0.7 Receivables (4.0) Costs Volume / Margin mix 2003 2004
Slide 12: Feed - Canada
Feed - Canada C$ million Sales 165 -11% EBIT 7 -31% Features - BSE / border closure - Cattle prices - Currency CAD strength against USD - Receivables
Slide 13: Feed - Canada (A$)
Feed - Canada A$ million Sales 178 -16% EBIT 7 -35% Features: - Currency impact of $0.4 million
Slide 14: Feed – Canada EBIT
Feed – Canada EBIT C$ million 9.7 (0.1) Costs 6.7 (1.1) Receivables (1.4) Volume and price 2003 2004
Slide 15: Cheetham Salt
Cheetham Salt A$ million Sales 66 -9% EBIT 20 -11% Features - Lower stockfeed and hide volumes following drought - Japanese initiative on target - Currency and freight crimp exports
Slide 16: Cheetham Salt EBIT
Cheetham Salt EBIT A$ million 22.0 19.6 (3.1) 0.3 Australian volume 0.5 Japan (0.1) JV Costs Equity Profits 2003 2004
Slide 17: Salt Australian Volumes
SALT AUSTRALIAN VOLUMES Queensland Total 6.3% Agricultural Sector 22.2% Other 77.8% (31.0% ) New South Wales Change on F03 3.4% 3.7% (22.5% ) (16.5% ) South Australia 2.2% Victoria 7.8% Agricultural sector includes (24.4% ) stockfeed, casings and hides (5.9% )
Slide 18: Cotswold
Cotswold A$ million F2004 F2003 Cotswold Operating Losses (1.9) (9.7) * Exit to be completed November 2004
Slide 19: Ridley Corporation Financial Performance
RIDLEY CORPORATION 2004 FINANCIAL PERFORMANCE
Slide 20: Cashflow
Cashflow A$ Million F2004 F2003 EBITDA 71 99 Capex (20) (19) Acquisitions (7) (4) Borrowing costs (10) (12) Tax (5) (19) Dividends (12) (12) Working capital & other 10 (4) Net funds generated 27 29
Slide 21: EBITDA
EBITDA A$ Million F2004 F2003 Feed Australia 14 27 Cheetham Salt 22 25 Feed USA 37 51 Feed Canada 11 15 Cotswold (2) (8) Corporate Costs (9) (11) TOTAL 71 99
Slide 22: Debt Reduction
Debt Reduction A$ Million Net Debt - June 2003 151 Repayments (27) Currency translation (1) Net Debt – June 2004 123
Slide 23: Gearing
Gearing F2004 F2003 F2002 Net Debt 123 151 193 Equity 369 365 352 Ratio 0.33:1 0.41:1 0.55:1
Slide 24: Net Debt
Net Debt A$ million F2004 F2003 F2002 Australia 69 69 79 Ridley Inc 54 82 114 Total 123 151 193
Slide 25: Working Capital
Working Capital A$ Million F2004 F2003 F2002 Receivables 103 120 136 Inventory 106 107 116 Accounts Payable (111) (117) (143) Other & Provisions (4) (5) (5) Total 94 105 104 Days Sales Outstanding 29 30 31
Slide 26: Working Capital
Working Capital F2004 F2003 F2002 Feed Australia (A$ million) 15 21 22 Cheetham Salt (A$ million) 25 23 22 Feed USA (US$ million) 13 17 14 Feed Canada (C$ million) 15 19 20
Slide 27: Key Ratios
Key Ratios F2004 F2003 F2002 Net Debt/EBITDA 1.7 1.5 1.8 EBITDA/Net Interest 6.6 7.6 6.0 EBIT/Net Interest 4.4 5.3 4.3 ROSF* 6.4% 12.0% 11.1% ROFE* 8.8% 13.1% 12.9% EPS (fully diluted)* 7.6 13.9 12.9 * Before significant items
Slide 28: Currency Impact
Currency Impact A$ Million F2004 As reported At F2003 rates Variance Ridley Inc - EBIT 20 25 (5) - Net to Ridley Corp 7 9 (2) Exchange Rate .6964 .5651
Slide 29: Currency Impact
Currency Impact A$ Million F2004 As reported Stronger A$ Variance Ridley Inc - EBIT 20 18 (2) - Net to Ridley Corp 7 6 (1) Exchange Rate .6964 .7500
Slide 30: Currency Impact
Currency Impact A$ Million F2004 As reported Weaker A$ Variance Ridley Inc - EBIT 20 22 +2 - Net to Ridley Corp 7 8 +1 Exchange Rate .6964 .6500
Slide 31: Ridley
N RIDLEY