Slide 1: Ridley Corporation F2008 Full Year Results Presentation
For personal use only RIDLEY CORPORATION LTD F2008 FULL YEAR RESULTS PRESENTATION
Slide 2: Agenda
F'08 Full Year Results Presentation Agenda For personal use only Results and Highlights Divisional Summaries Financial Performance Strategic Initiatives and Business Update Immediate Priorities
Slide 3: Results
F'08 Full Year Results Presentation Results For personal use only A$m F'08 % to LY Sales revenue 1,546.6 ↑ 7% Operating EBITDA * 80.0 ↑ 1% Operating EBIT * 60.1 ↑ 6% Net operating profit * 26.8 ↑ 1% Significant items (net) (16.3) Net profit 10.5 ↓ 54% Dividends (cps) 3.50 Unfranked * Before signific
Slide 4: Discontinued Operations
F'08 Full Year Results Presentation Discontinued Operations For personal use only Ridley Inc is shown as discontinued operations and as a business held for sale. As the business was held for the entire year all results discussed are on a comparative basis to the previous year.
Slide 5: Results: continuing and discontinued operations
F'08 Full Year Results Presentation Results For personal use only A$m Continuing operations Sales revenue 837.6 ↑ 10% Net operating profit 15.9 ↓ 4% Significant items (net) (10.4) Net profit 5.5 ↓ 64% Discontinued operations Sales revenue 709.0 ↑ 4% Net operating profit 10.9 ↑ 20% Significant items
Slide 6: Sales by Division
F'08 Full Year Results Presentation Sales by Division For personal use only A$m 1,700 1,600 4 28 1,500 75 1,400 1,547 1,440 1,300 1,200 F'07 Ridley Cheetham Ridley F'08 AgriProducts Salt Inc
Slide 7: Net Profit
F'08 Full Year Results Presentation Net Profit For personal use only A$m 30 0.3 4.3 25 7.1 3.4 20 1.5 13.4 15 22.7 10 10.5 5 F'07 Ridley Cheetham Ridley Unallocated Interest Significant F'08 AgriProducts Salt Inc Costs Tax & MI Items * * Net of tax and minority interest
Slide 8: Significant Items
F'08 Full Year Significant Items* Results Presentation For personal use only A$m Canadian legal case 4.6 Corporate restructure 2.2 Plant closures and impairment Australia 7.5 Ridley Inc 0.8 Takeover defence 1.2 16.3 * Net of tax and minority interest
Slide 9: Ridley AgriProducts
F'08 Full Year Results Presentation For personal use only Ridley AgriProducts
Slide 10: Ridley AgriProducts
F'08 Full Year Results Presentation Ridley AgriProducts For personal use only A$m F'08 % to LY Sales 742.3 ↑ 11% Tonnes (000's) 1,610 ↓ 12% EBIT* 15.0 ↓ 18% Features + ─ Margins Ruminant volumes Aquafeed Supplements * Before significant items Commodity prices
Slide 11: Ridley AgriProducts: tonnes by species
F'08 Full Year Results Presentation Ridley AgriProducts For personal use only Tonnes 700,000 F'08 F'07 600,000 500,000 400,000 300,000 200,000 100,000 - F'07 F'08 Poultry Pig Dairy Beef Other Horse Aqua Supp's Sheep
Slide 12: Ridley AgriProducts EBIT
F'08 Full Year Results Presentation Ridley AgriProducts For personal use only EBIT - A$m 25 20 0.5 1.3 2.2 15 14.0 14.6 10 18.4 15.0 5 F'07 * Volume Margins Mfg Costs R&D Overheads F'08 * Before significant items
Slide 13: Cheetham Salt
F'08 Full Year Results Presentation For personal use only Cheetham Salt
Slide 14: Cheetham Salt
F'08 Full Year Results Presentation Cheetham Salt For personal use only A$m F'08 % to LY Sales 95.3 ↑ 5% Tonnes (000's) 1,221 ↑ 6% EBIT* 24.8 ↑ 6% Features + ─ Pool salt Queensland Indonesia stockfeed * Includes equity profits, before significant items
Slide 15: Cheetham Salt EBIT
F'08 Full Year Results Presentation Cheetham Salt For personal use only EBIT - A$m 30 1.6 3.4 25 0.9 0.6 20 24.8 23.3 15 F'07 Volume/Margin Mfg Costs Overheads Equity Profits F'08 * Before significant items
Slide 16: Ridley Inc
F'08 Full Year Results Presentation For personal use only Ridley Inc
Slide 17: Ridley Inc
F'08 Full Year Results Presentation Ridley Inc For personal use only US$m F'08 % to LY Sales 633 ↑ 19% Tons (000's) 1,479 ↓ 2% EBIT * 24.9 ↑ 54% Features + ─ US businesses Canada producer Rising ingredient economics markets Strong Canadian * Before significant items dollar
Slide 18: Ridley Inc EBIT
F'08 Full Year Results Presentation Ridley Inc For personal use only EBIT - US$m 30 25 3.4 20 3.8 0.3 3.1 1.3 15 24.9 10 16.2 5 F'07 Canada US Feeds RFI RNS Other F'08 * Before significant items Feeds
Slide 19: F'08 Financial Performance
F'08 Full Year Results Presentation For personal use only F'08 Financial Performance
Slide 20: Cashflow
F'08 Full Year Results Presentation Cashflow For personal use only A$m F'08 F'07 EBITDA * 80 77 Significant items (5) - Capex (35) (29) Borrowing costs (16) (15) Tax (12) (10) Dividends (12) (9) Other (6) (3) Working capital (23) (15) Cash generated (29) (4) Acquisitions (1) - Net cash outflow (30)
Slide 21: Working Capital
F'08 Full Year Results Presentation Working Capital For personal use only A$m Jun '08 Jun '07 Jun '06 Trade Receivables 138 123 105 Inventory 162 140 128 Creditors & Provisions (198) (179) (164) Other & Prepayments 20 15 15 Total 122 99 84 Days sales outstanding 31 30 29
Slide 22: Input Prices
F'08 Full Year Results Presentation Input Prices For personal use only Jun '06 Jun '07 Jun '08 % Inc Australia * Feed Wheat 204 310 440 42% Barley 184 320 390 22% Canola 400 540 790 46% Fish meal 1,371 1,890 1,200 (37%) United States US Corn + 2.80 4.00 7.24 81% Soybean + 5.85 8.25 16.05 95% Soymeal
Slide 23: EBITDA
F'08 Full Year Results Presentation EBITDA For personal use only A$m F'08 F'07 Ridley AgriProducts 23 26 Cheetham Salt 29 27 Ridley Inc 35 32 Other (7) (8) 80 77 * Includes equity profits, before significant items
Slide 24: Debt Movement
F'08 Full Year Results Presentation Debt Movement For personal use only A$m Net Debt - Jun '07 172 Cash outflow 30 Currency translation (3) Net Debt - Jun '08 199
Slide 25: Gearing
F'08 Full Year Results Presentation Gearing For personal use only A$m Jun '08 Jun '07 Jun '06 Net Debt 199 172 171 Equity 369 388 394 Ratio 53.9% 44.3% 43.5%
Slide 26: Key Ratios
F'08 Full Year Results Presentation Key Ratios For personal use only Jun '08 Jun '07 Jun '06 Net Debt / EBITDA * 2.5 2.2 2.0 EBITDA / Net Interest * 4.8 6.0 6.5 EBIT / Net Interest * 3.6 4.3 4.8 ROE* 7.1% 6.8% 7.6% ROE 2.8% 5.8% 7.1% EPS (fully diluted) 3.6 7.9 10.0 * Before significant items
Slide 27: Franking Capacity
F'08 Full Year Results Presentation Franking Capacity For personal use only No franking for F’08 final or F’09 interim dividend F’09 final dividend limited franking F’10 onwards franking capacity to improve depending on the timing and outcome of Ridley Inc sale Significant items impact frank
Slide 28: Currency Impact
F'08 Full Year Results Presentation Currency Impact For personal use only A$ - US$ F'08 F'07 Avg Exchange Rate 0.8934 0.7798 Period End Rate 0.9631 0.8483 A$m Operating EBIT 4.1 down Operating Net Profit 1.1 down
Slide 29: Strategic Initiatives and Business Update
F'08 Full Year Results Presentation For personal use only Strategic Initiatives and Business Update
Slide 30: Strategic Initiatives
F'08 Full Year Results Presentation Strategic Initiatives For personal use only Sale of Ridley Inc Unlock unrealised value in land holdings Address underperforming business units in Ridley AgriProducts
Slide 31: Ridley Inc
F'08 Full Year Results Presentation Ridley Inc For personal use only Sale of Ridley Inc • Process ongoing Business conditions for Ridley Inc generally stable
Slide 32: Canadian Legal Claims
F'08 Full Year Results Presentation Canadian Legal Claims For personal use only Settlement agreement reached with plaintiffs, Feb 08 – C$6.0m (A$4.6m net) Approved by Quebec Court in May 2008 Ontario Court ruling expected October 2008 Final settlement expected in early 2009
Slide 33: Land Development
F'08 Full Year Results Presentation Land Development For personal use only Land Development •Opportunities in SA, Vic and Qld •Alliance with Delfin Lend Lease •Dry Creek potential development 316 hectares •Value to be realised over time
Slide 34: Ridley AgriProducts: Restructure
F'08 Full Year Results Presentation Ridley AgriProducts For personal use only Restructure • Closure of northern region mills • Supplements business simplified Overhead review
Slide 35: Ridley AgriProducts outlook
F'08 Full Year Results Presentation Ridley AgriProducts For personal use only •Poultry volumes and margins stable •Pig sector - improving outlook •Dairy sector- growth constrained •Continuing low beef / sheep volumes
Slide 36: Cheetham Salt outlook
F'08 Full Year Results Presentation Cheetham Salt For personal use only Generally stable outlook Strategic plan rollout •Sales and marketing initiatives improving results •Field and refinery upgrades well underway •Commencement of new Indonesian refinery
Slide 37: Immediate Priorities
F'08 Full Year Results Presentation For personal use only Immediate Priorities
Slide 38: Immediate Priorities
F'08 Full Year Results Presentation Immediate Priorities For personal use only Takeover distraction over Management changes – flatter structure Ridley Inc sale Debt reduction Improvement in core business Overhead review
Slide 39: Ridley Corporation Ltd
F'08 Full Year Results Presentation For personal use only RIDLEY CORPORATION LTD