Ridley Corporation Limited · ASX:RIC

Ridley — FY2015 Earnings Presentation

39 slides from Ridley's earnings presentation, Aug 20, 2015

1. Slide 1: Ridley Corporation Limited Investor Presentation

   For personal use only RIDLEY CORPORATION LIMITED INVESTOR PRESENTATION

2. Slide 2: Ridley

   For personal use only RIDLEY RIDLEY | INVESTOR PRESENTATION | 2015 FINANCIAL YEAR 2

3. Slide 3: Financial Highlights

   For personal use only FINANCIAL HIGHLIGHTS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Consolidated  AgriProducts result of $50.4m, FY15 FY14 FY13 FY12 FY11 result - in $m up $10.3m on prior year (25.7%) through continued EBIT - focus on efficient delivery of 50.4 40.1 28.1 27.2 24.9 AgriProduc

4. Slide 4: Financial Highlights

   For personal use only FINANCIAL HIGHLIGHTS RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK Consolidated  Net finance expense - consistent FY15 FY14 FY13 FY12 FY11 result - in $m with prior year  Tax expense reflects ongoing Operating result 35.2 28.9

5. Slide 5: Safety

   For personal use only SAFETY RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK Injury Frequency Rates: 4 year rolling LTIFR and TRFR history and trend 25 LTIFR: Lost Time Injury Frequency Rate – number Rolling LTIFR of injuries incurring lost 20 Rolling

6. Slide 6: AgriProducts

   For personal use only AGRIPRODUCTS RIDLEY | INVESTOR PRESENTATION | 2015 FINANCIAL YEAR 6

7. Slide 7: Financial Highlights

   For personal use only FINANCIAL HIGHLIGHTS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  EBIT result for agribusiness of $50.4m - up $10.3m with no normalising adjustments  Poultry - reliable year on year performance, with slight reduction in volume from feed conversion performance improvement

8. Slide 8: Strategic Site Acquisition

   For personal use only STRATEGIC SITE ACQUISITION RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK 5.3Ha in North East outskirts of Geelong, Victoria  Location - the site is ideally located to service a broad region targeted for significant growth in livestock p

9. Slide 9: Strategic Site Acquisition

   For personal use only STRATEGIC SITE ACQUISITION RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK Well placed to source grain from growing regions of Wimmera, Western Districts & Mallee Animal meal protein source at Ridley Laverton site 5.3Ha in NE Geel

10. Slide 10: Strategic Site Acquisition

    For personal use only STRATEGIC SITE ACQUISITION RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK Aerial view of NE Geelong site Title #1 1105 15x silos providing Princes Highway ~21,000 tonnes of grain storage and major utilities already in place Large

11. Slide 11: Property

    For personal use only PROPERTY RIDLEY | INVESTOR PRESENTATION | 2015 FINANCIAL YEAR 11

12. Slide 12: Property – Dry Creek

    For personal use only PROPERTY – DRY CREEK RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK  Site closure - agreement formalised with the government on the Plan for Environment Protection and Rehabilitation (PEPR) of the site. Continuing to work throug

13. Slide 13: Property - Other

    For personal use only PROPERTY - OTHER RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK  Major coastal site at Nelson Cove (near Geelong):  Refining of plans to develop c.500 hectares of low lying land subject to securing land tenure and rezoning approvals  R

14. Slide 14: Nelson Cove - Concept

    For personal use only NELSON COVE - CONCEPT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Solution for flood prone 2,000 construction and 1,100+ acres of wetland neighbouring residential permanent jobs for the bird sanctuary preserved areas region forever “55Ha Geelong Lara migratory sports centra

15. Slide 15: Consolidated Financials

    For personal use only CONSOLIDATED FINANCIALS RIDLEY | INVESTOR PRESENTATION | 2015 FINANCIAL YEAR 15

16. Slide 16: Balance Sheet - Assets

    For personal use only BALANCE SHEET - ASSETS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Balance Sheet June June June  Assets held for sale / - in $m 2015 2014 2013 Investment property - $34.1m comprises former mill at Dandenong Assets held for sale 34.1 1.4 0.7 ($0.7m) plus Dry Creek site real

17. Slide 17: Balance Sheet - Liabilities

    For personal use only BALANCE SHEET - LIABILITIES RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK Balance Sheet June June June  Payables - reflects $21.5m - in $m 2015 2014 2013 increase in drawdown of trade payables facility Current payables 158.7 12

18. Slide 18: Cash Flow

    For personal use only CASH FLOW RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK Consolidated Cash flow - in $m FY15 FY14 FY13  Strong core business EBITDA Consolidated EBITDA 51.0 41.0 39.2 performance of $51.0m, up $10.0m (24%) Movement in working ca

19. Slide 19: Financial Summary

    For personal use only FINANCIAL SUMMARY RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK Consolidated results - in $m FY15 FY14 FY13 FY12 FY11 Core business EBITDA (before Property segment 56.4 45.1 36.4 29.7 28.0 & non-recurring items) Depreciation & A

20. Slide 20: Outlook

    For personal use only OUTLOOK RIDLEY | INVESTOR PRESENTATION | 2015 FINANCIAL YEAR 20

21. Slide 21: Outlook - Operations

    For personal use only OUTLOOK - OPERATIONS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Poultry - positive outlook based on compounding year on year growth in demand for poultry products, plus rejuvenation of eggs as a protein source  Pig - technical expertise now in place to aggressively targ

22. Slide 22: Outlook - Strategy

    For personal use only OUTLOOK - STRATEGY RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK  Strategic land acquisition - commit key customers and suppliers to long term commitments to underwrite the approval to develop the new feedmill site on the North East out

23. Slide 23: Outlook - Property

    For personal use only OUTLOOK - PROPERTY RIDLEY RIDLEY AGRIPRODUCTS AGRIPRODUCTS PROPERTY FINANCIALS FINANCIALS OUTLOOK OUTLOOK  Dry Creek - aim to finalise current negotiations and due diligence phase to develop a commercial solution for the entire Dry Creek site  Moolap - work proactively to ass

24. Slide 24: Contact Details

    CONTACT DETAILS For personal use only Tim Hart Managing Director and Chief Executive Officer Email: Tim.Hart@ridley.com.au Tel: +61 3 8624 6500 Fax: +61 3 8624 6414 Mobile: + 61 404 480 542 Ridley Corporation Limited ABN 33 006 708 765 Level 4, 565 Bourke Street Melbourne, VIC. 3000 Australia www.ri

25. Slide 25: Appendices

    For personal use only APPENDICES

26. Slide 26: Outlook – Regional Growth

    For personal use only OUTLOOK – REGIONAL GROWTH RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK • Dairy In 2012-13, Australian farms produced:- • Beef • $13.2 bn of livestock (for meat) • Animal meals and fats • $6.9 bn of livestock products (wool, dairy etc) • High-performance raw materials • $2.3

27. Slide 27: Outlook – Regional Investment

    For personal use only OUTLOOK – REGIONAL INVESTMENT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Ridley well positioned for long term growth in the agribusiness feed sector:  strong balance sheet  bank facility rolled over for a further five years  long term history of cash conversion  inde

28. Slide 28: Outlook – Ridley Investment

    For personal use only OUTLOOK – RIDLEY INVESTMENT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Ridley Sector Local or Species Position Growth Global? * in Sector Potential Salmon – Local Aqua Strong (#2) High Ridley well Prawn – Global Attractive blend positioned in key of local and growth sector

29. Slide 29: Corporate Snapshot

    For personal use only CORPORATE SNAPSHOT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Corporate focus: Australia’s leading supplier of premium quality, high performance animal nutrition solutions ASX – as at 12 August 2015 RIC Share price $1.25 Shares on issue 307.8m Market cap. $384.75m 52 week

30. Slide 30: Sector History

    For personal use only SECTOR HISTORY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Sector FY15 FY14 FY13 FY12 FY11 FY10 (kt) (kt) (kt) (kt) (kt) (kt) Outlook Poultry 1,013 1,019 872 933 900 764 Aqua-feed 65 50 42 47 50 47 Packaged 83 90 90 85 84 90 Dairy 291 275 251 260 236 215 Pig 168 178 184 197

31. Slide 31: Brands and Customers

    For personal use only BRANDS AND CUSTOMERS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK 31

32. Slide 32: Locations and Sectors

    For personal use only LOCATIONS AND SECTORS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK 32

33. Slide 33: Rendering

    For personal use only RENDERING RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Key component of sustainable agriculture  One third to one half of every animal produced in Australia for meat, milk, egg & fibre food products is not consumed by humans  Process by which low economic value matter fr

34. Slide 34: Growth Opportunities

    For personal use only GROWTH OPPORTUNITIES RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Capture market share with Long term, cost effective customer value proposition & surety of highest quality innovative protein sources to supply to provide solutions extend the superior product, for customer ex

35. Slide 35: Dry Creek

    For personal use only DRY CREEK RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK N Lara Salt Fields Ridley is working through a Avalon Airport competitive tender sale process to deliver a divestment transaction Former salt condensing ponds being the dark land Avalon air strip masses extending north w

36. Slide 36: Lara and Moolap

    For personal use only LARA AND MOOLAP RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK AVALON AIRSTRIP Larasite  912 hectare Salt at Lara – part available Avalon Fields offset as migratory bird for environmental Airport sanctuary Melbourne  Balance of Lara site earmarked for potential ~60km redevel

37. Slide 37: Outlook - Risks

    For personal use only OUTLOOK - RISKS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Cyclical fluctuations - diversified portfolio spreads the individual sector risk  Influence of domestic harvest - management of raw material price fluctuations through procurement practices and customer ownershi

38. Slide 38: Outlook Strategy

    For personal use only OUTLOOK STRATEGY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Business Focus - being Australia’s leading producer of premium quality, high performance animal nutrition solutions  Strategy - six platforms for delivery:  Safety  Our People  Customer Focus  Operational E

39. Slide 39: Outlook – Ridley Investment

    For personal use only OUTLOOK – RIDLEY INVESTMENT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Organic growth through rising populations, land constraints, demand for protein and heightened concerns for food security #  Further sector consolidation opportunities  Risk mitigation through secto

Ridley — FY2015 Earnings Presentation on 6ix