Slide 1: 1H FY20 Results
1H FY20 RESULTS The journey to long-term, sustainable growth
Slide 2: The journey so far
INTRODUCTION The journey so far Issues addressed: Progress announced: • Overhead structure and its • New organisational structure impact on cost • Appointment of Novacq™ CEO competitiveness • Completed acquisition of • Underutilisation of Murray production facilities in Thailand Bridge feedmill • We
Slide 3: Financial journey in numbers
INTRODUCTION Financial journey in numbers EBITDA Lease Accounting Closure of Murray Headcount reductions Baiada legal claim NPAT (from ongoing operations) (AASB 16) Bridge with an annual resolved effected with cost saving of annual cost saving of $1.5m $5.0m $30.7m following a strong performance in
Slide 4: Agenda
AGENDA Financial Business Growth Outlook Appendix 1 Results 2 Update 3 Strategy 4 5 RIDLEY | 1H FY20 RESULTS | 26 FEBRUARY 2020 4
Slide 5: Financial Results
Financial Results. Solid operating performance. RIDLEY | 1H FY20 RESULTS | 26 FEBRUARY 2020
Slide 6: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result - in ($m) 1H FY20 1H FY19 EBITDA – Ongoing operations 30.7 30.6 Half year EBITDA result from Operations of $30.7m, marginally up on corresponding prior year period, representing an improved second quarter performance after a soft first quarter. Corporate Cos
Slide 7: Balance Sheet: Assets
BALANCE SHEET Assets Balance Sheet - in $m Dec 2019 Jun 2019 Analysis of movement Cash & cash equivalents 39.8 17.5 Closing balance is a function of timing of receipts/payments and draw down/repayment of bank funding. Inventory 89.4 83.8 Reflects prawn feed stock build to service greater demand plus
Slide 8: Balance Sheet: Liabilities
BALANCE SHEET Liabilities Balance Sheet - in $m Dec 2019 Jun 2019 Current payables 172.1 158.8 Reflects timing of creditor payments within agreed trading terms. Current provisions 17.1 16.0 Mostly comprises employee entitlements. Current tax liabilities - 2.0 Period end tax receivable asset. Brought
Slide 9: Cash Flow
CASH FLOW Consolidated Cash flow - in $m 1H FY20 1H FY19 Consolidated group EBITDA before non- 24.9 24.9 EBITDA from Operations less Corporate. recurring items Less: non-recurring items (9.4) 6.4 Aggregate EBITDA impact of non-recurring items described on slide 6. Consolidated EBITDA 15.5 31.3 After
Slide 10: Business update
Business update. Emerging from change, focused on growth. RIDLEY | 1H FY20 RESULTS | 26 FEBRUARY 2020
Slide 11: Issues addressed: Modernising our assets and moving ahead
ISSUES ADDRESSED Modernising our assets and moving ahead Underutilisation of Murray Bridge feedmill Resolution of the Baiada legal claim Reduction in costs without loss of sales A positive outcome 1H FY20 financial impact of achieved $7.2m • Settlement reached, proceedings terminated. • Costs fully
Slide 12: Progress announced: New organisational structure
PROGRESS ANNOUNCED New organisational structure 5x business units Customer-centric operational efficiency Novacq™ Stockfeed supplements Packaging & Aqua Rendering • Fewer layers of management, clearer lines of reporting and accountability. • Delegated decision-making to increase responsiveness to cu
Slide 13: The commercialisation of Novacq
PROGRESS ANNOUNCED The commercialisation of Novacq™ • CEO Sid Jain appointed to commercialise Novacq™. • Secured control of Thailand operations for expansion – c.50 Ha of land and 100% control of feedmill. • Improvements in production yields at Yamba. • All production has been sold to Australian cus
Slide 14: Growth Strategy
Growth Strategy. A focus on improvements in our core business, whilst embedding innovation. RIDLEY | 1H FY20 RESULTS | 26 FEBRUARY 2020
Slide 15: Growth Strategy
GROWTH STRATEGY Optimisation Sales growth Expansion / innovation There are significant The new structure provides In time, our pipeline of opportunities within Ridley a single point of innovation opportunities (of to simplify the business, accountability for both the which NovacqTM is the most insta
Slide 16: Growth Strategy: earnings growth potential
GROWTH STRATEGY A focus on improvements in our core business, while embedding innovation EARNINGS GROWTH POTENTIAL • NovacqTM operational efficiencies • NovacqTM international sales EXPANSION / • New range of Packaged Products INNOVATION • Rendering product development • Acquisitions • Westbury util
Slide 17: Outlook
Outlook. Strong and sustainable earnings growth. RIDLEY | 1H FY20 RESULTS | 26 FEBRUARY 2020
Slide 18: The path to growth
THE PATH TO GROWTH • The recent rain will have little impact on national grain supply, so prices are expected to remain firm. • With a diversified customer base we are well placed to manage the anticipated shifts in demand. • The Growth Strategy should begin to deliver in this 2H FY20 period. • The
Slide 19: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer The material in this presentation is general background information about the activities of Ridley Corporation Limited and its related entities (Ridley), current at the date of this presentation, unless otherwise stated. It is information given in summary f
Slide 20: Appendix
Appendix. Supporting information. RIDLEY | 1H FY20 RESULTS | 26 FEBRUARY 2020
Slide 21: Profit and Loss Summary
PROFIT AND LOSS SUMMARY 1H 1H 1H 1H 1H 2H Consolidated Result - in ($m) FY19 FY20 FY19 FY18 FY17 FY16 FY19 Half year EBITDA result from Operations of $30.7m, marginally up EBITDA – Ongoing operations 30.7 30.6 on corresponding prior year period, representing an improved 31.8 30.0 35.2 54.3 23.7 seco
Slide 22: Balance Sheet: Assets
BALANCE SHEET Assets Dec Jun Dec Jun Jun Jun Balance Sheet - in $m Analysis of movement 2019 2019 2018 2018 2017 2016 Closing balance is a function of timing of receipts/payments and draw Cash & cash -equivalents 39.8 17.5 17.1 23.4 16.5 28.5 down/repayment of bank funding. Reflects prawn feed stock
Slide 23: Balance Sheet: Liabilities
BALANCE SHEET Liabilities Balance Sheet - in $m Dec 2019 Jun 2019 Dec 2018 Jun 2018 Jun 2017 Jun 2016 Current payables 172.1 158.8 Reflects timing of creditor payments within agreed trading terms. 155.9 155.9 148.6 145.9 Current provisions 17.1 16.0 Mostly comprises employee entitlements. 14.7 14.6
Slide 24: Cash Flow
CASH FLOW Consolidated Cash flow - in $m 1H FY20 1H FY19 1H FY18 1H FY17 1H FY16 FY19 2H FY19 Consolidated group EBITDA before 24.9 24.9 27.7 23.4 34.2 54.3 29.8 EBITDA from Operations less Corporate. non-recurring items Less: non-recurring items (9.4) 6.4 Aggregate EBITDA impact of non-recurring it
Slide 25: Contact details
Contact details Quinton Hildebrand Chief Executive Officer E: Quinton.Hildebrand@ridley.com.au P: +61 3 8624 6529 Ridley Corporation Limited ABN 33 006 708 765 Level 4, 565 Bourke Street Melbourne, VIC. 3000 Australia ridley.com.au ASX: RIC