Slide 1: FY21 Results
FY21 RESULTS Growth Strategy Delivering Improved Earnings Quinton Hildebrand, CEO Alan Boyd, CFO Richard Betts, CFO Designate 25 August 2021
Slide 2: FY21 Highlights
FY21 HIGHLIGHTS Improvement in all financial metrics EBITDA NPAT Health and safety performance (underlying) (reported) • Resilience to COVID-19 challenges • Maintained focus on safety: 2.38 LTIFR (pcp 1.41) $69m $25m Strong earnings and cash generation +16% YOY growth pcp loss $11m • Growth Strategy
Slide 3: Financial Results
Financial Results. Strong operating performance. RIDLEY | FY21 RESULTS | 25 AUGUST 2021
Slide 4: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result - in ($m) FY21 FY20 Analysis of result EBITDA - Bulk Stockfeeds 32.5 34.3 See Segment Performance Reporting (slide 8) EBITDA - Packaged Feeds and Ingredients 46.5 35.1 See Segment Performance Reporting (slide 9) EBITDA – Ongoing operations before significant
Slide 5: Balance Sheet
BALANCE SHEET June June Balance Sheet - in $m Analysis of balances and movements 2021 2020 Cash & cash equivalents 39.9 45.8 Balance is a function of timing of receipts/payments and draw down/repayment of bank funding. $22.6m reduction in inventory through effective management and reduction of COVID
Slide 6: Cash Management & Net Debt
CASH MANAGEMENT & NET DEBT The increased earnings, a reduction in inventory and disciplined Net Debt capital expenditure management has generated an operating cash flow of $82.4m at cash conversion ratio of 119%. $64M 160 This has resulted in a $64m reduction in net debt and a leverage ratio 140 Ear
Slide 7: Segment Performance
Segment Performance. New reporting segments from 1 July 2020. RIDLEY | FY21 RESULTS | 25 AUGUST 2021
Slide 8: Bulk Stockfeeds
BULK STOCKFEEDS Comprising the Group’s premium quality, high performance animal nutrition stockfeed solutions delivered in bulk. FY21 FY20 1 Variance • A stronger performance in 2H as higher asset utilisation EBITDA before significant has lowered the operating cost base through: 32,481 34,331 5% ite
Slide 9: Packaged Feeds & Ingredients
PACKAGED FEEDS & INGREDIENTS Comprising the Group’s premium quality, high performance animal nutrition feed and ingredient solutions delivered in packaged form from 1 tonne bulka bag down to 3kg bags, and includes the Aquafeed Business Unit. • Significant increase in rendering returns attributable e
Slide 10: Growth Strategy
Growth Strategy. A focus on improvements in core business, whilst growing sales. RIDLEY | FY21 RESULTS | 25 AUGUST 2021
Slide 11: Growth Strategy
GROWTH STRATEGY A focus on improvements in core business, whilst growing sales EARNINGS GROWTH POTENTIAL • NovacqTM operational efficiencies • NovacqTM international sales EXPANSION / • New range of Packaged Products INNOVATION • Rendering product development • Acquisitions • Westbury utilisation /
Slide 12: Growth Strategy: Expansion / Innovation
GROWTH STRATEGY EXPANSION / INNOVATION – Earnings Growth Contributors in FY22 Rendering New Range of Novacq™ Product Packaged Development products Progress in production efficiencies Tripled production from same footprint in FY21 $4m plant commissioning in • Launched “Food for Dogs” in Sales 1H FY22
Slide 13: Growth Strategy: Sales Growth
GROWTH STRATEGY SALES GROWTH – Earnings Growth Contributors in FY22 Monogastric* Aquafeed Growth Reset • Increasing market share with pig • Narangba facility expansion (+20%) successfully completed 19 July 2021 and poultry customers • Increased asset utilisation with • Westbury facility sold 2 Augus
Slide 14: Growth Strategy: Optimisation
GROWTH STRATEGY OPTIMISATION – Earnings Growth Contributors in FY22 Supply Raw Material Chain Sourcing Rationalisation Ridley Direct Establishing an ingredients sales desk Specialists engaged to: selling to livestock producers who mix feed • improve scheduling and asset utilization on farm: • reduce
Slide 15: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Embedding greater discipline Operating Cashflow The Capital Allocation Framework: • prioritises maintenance & ESG capital Maintenance & ESG Capital (FY22 $12m) and working capital and Working Capital requirements; • supports the growth strategy through Strong Balance She
Slide 16: Project Boost
PROJECT BOOST A capital reinvestment program to drive profitable growth $15M A collection of smaller (less than $2.5m) capital projects have been identified that will extend Ridley’s product FY22-23 Targeted Capital Expenditure offering, debottleneck capacity and reduce cost: $9M Investment in new c
Slide 17: Summary
SUMMARY Business gaining momentum • Progress in safety, operational performance and asset utilisation • Cash generation and earnings growth (14.1% CAGR¹) • Strong balance sheet (<1.2x leverage) and disciplined capital management • Key strategic initiatives delivering • Resumption of shareholder divi
Slide 18: Outlook
Outlook. On track to deliver improved earnings. RIDLEY | FY21 RESULTS | 25 AUGUST 2021
Slide 19: Outlook
OUTLOOK The FY20 restructure established a new platform to drive accountability and operational efficiencies whilst ensuring a more customer orientated company. This has created sustainable improvements in the underlying performance of the business which continues to gain in momentum. Ridley conside
Slide 20: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer The material in this presentation is general background information about the activities of Ridley Corporation Limited and its related entities (Ridley), current at the date of this presentation, unless otherwise stated. The content is information given in
Slide 21: Appendix
Appendix Supporting information
Slide 22: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result - in ($m) FY21 FY20 Analysis of FY22 Budget FY19 FY18 FY17 EBITDA – Ongoing operations before significant items 79.0 69.4 Up $9.6m, or 13.8% on prior year period. 59.4 60.8 61.0 Corporate Costs (9.9) (9.9) Consistent between reporting periods. (11.3) (9.5) (
Slide 23: Balance Sheet: Assets
BALANCE SHEET Assets June June June Jun Jun Balance Sheet - in $m Analysis of balances 2021 2020 2019 2018 2017 Balance is a function of timing of receipts/payments and draw down/repayment of bank Cash & cash equivalents 39.9 45.8 17.5 23.4 16.5 funding. $22.6m reduction in inventory through effecti
Slide 24: Balance Sheet: Liabilities
BALANCE SHEET Liabilities June June June June June Balance Sheet - in $m Analysis of balances 2021 2020 2019 2018 2017 Current payables 165.5 161.3 Reflects timing of creditor payments within agreed trading terms. 158.8 155.9 148.6 Includes provision for site closure and maintenance costs of $2.4m (
Slide 25: Cash Flow
CASH FLOW Consolidated Cash flow - in $m FY21 FY20 Analysis of movement FY19 FY18 FY17 Consolidated EBIT 39.5 (11.0) 1 Consolidated EBIT after significant items. 35.4 26.4 39.2 Depreciation and amortisation 29.6 26.2 P&L charges for the year. 18.9 17.3 15.2 Consolidated EBITDA 69.1 15.2 Consolidated
Slide 26: Net Debt, Gearing and Leverage
NET DEBT, GEARING AND LEVERAGE Major capital projects – in $m FY21 FY20 Analysis of movements FY19 FY18 FY17 FY20 reflects completion of Westbury extrusion plant and Development capital expenditure 10.4 42.9 60.0 21.1 19.6 bulk of construction costs for Wellsford feedmill. FY21 reflects expensing of
Slide 27: FY20 Restatement: SaaS
FY20 RESTATEMENT : SaaS Change of accounting policy Cloud Computing Criteria The customer does not have possession of the underlying software. Software accessed and used over the internet. Increasingly common, cost-effective platform for new software applications, such as end to end Enterprise Resou
Slide 28: 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