Slide 1: FY20 Results
FY20 RESULTS Business Reset and Ready to Grow with our Cus tomers Quinton Hildebrand, CEO 26 August 2020
Slide 2: Business reset executed
INTRODUCTION Business reset executed Issues addressed: Progress announced: • Large overhead structure, • New organisational structure slow to meet customer needs • Changes to leadership team • Underutilisation of Murray • Wellsford feedmill construction Bridge feedmill complete and northern Victoria
Slide 3: Business reset in numbers
INTRODUCTION Business reset in numbers EBITDA Lease Accounting 1H Reset 2H Reset Impairment Reset NPAT (from ongoing operations) Closure of Northern Victoria Novacq™ (AASB 16) Rationalisation Murray Bridge $21.6m $7.2m $7.0m (non-cash) $64.3m ($4.4m non-cash) Restructure $2.9m ($5.6m non-cash) Simpl
Slide 4: Agenda
AGENDA Financial Business Growth Market Outlook Results Update Strategy Disclosure Silo bank - Wellsford Feedmill
Slide 5: Financial Results
Financial Results. Strong operating performance. RIDLEY | FY20 RESULTS | 26 AUGUST 2020
Slide 6: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result - in ($m) FY20 FY19 Analysis of result EBITDA – Ongoing operations before significant 64.3 59.4 Full year EBITDA result from Operations before significant items up $4.9m on prior year. items New standard generates favourable impact at EBITDA level which reve
Slide 7: Profit & Loss Significant Items
PROFIT & LOSS SIGNIFICANT ITEMS Consolidated Result - in ($m) FY20 FY19 Analysis of significant items Aggregate estimated financial impact of closing the former feedmill, including demolition, Murray Bridge feedmill closure (7.2) - remediation, asset removal and rezoning for ultimate divestment. Agg
Slide 8: Balance Sheet Assets
BALANCE SHEET ASSETS June June Balance Sheet - in $m Analysis of balances 2020 2019 Closing balance is a function of timing of receipts/payments and draw down/repayment of bank funding. 30 Cash & cash equivalents 45.8 17.5 June 2020 balance includes $20.0m in an At Call account as COVID-19 related c
Slide 9: Balance Sheet Liabilities
BALANCE SHEET LIABILITIES June June Balance Sheet - in $m Analysis of balances 2020 2019 Current payables 161.3 158.8 Reflects timing of creditor payments within agreed trading terms. - Accounting standard requirement to report borrowings as current. Refer below. - Increase in borrowings reflects co
Slide 10: Cash Flow
CASH FLOW Consolidated Cash flow - in $m FY20 FY19 Analysis of movement Consolidated EBIT (9.9) 35.4 Consolidated EBIT (Operations less Corporate) after significant items. Depreciation and amortisation (DA) 26.2 18.9 Aggregate Depreciation and amortisation charges to profit and loss for the year. Co
Slide 11: Business Update
Business Update. Resilient through change. RIDLEY | FY20 RESULTS | 26 AUGUST 2020
Slide 12: Record Safety Performance
RECORD SAFETY PERFORMANCE Engaging our people on the journey to operational excellence Focus on accountability and planning to promote: • Safer working conditions • Improved quality performance • Environmental leadership • Efficient operations Embedding world-class safety at Wellsford Feedmill RIDLE
Slide 13: COVID-19 Response
COVID-19 RESPONSE Well prepared to manage the risks Customer impact • Ongoing consumer requirement for animal proteins • Some reduction in feed volumes by those customers more reliant on the Food Service channel or directly affected by temporary abattoir closures in Victoria Operational impact and p
Slide 14: Commercialising Novacq
COMMERCIALISING NOVACQ™ Continual progress in scaling up production R&D PRODUCTION SALES Proven efficacy by CSIRO, • Focus on continuous improvement • All available Novacq™ committed third-party testing and on-farm • Making quantum shifts in pond for sale in Ridley feed for the Novacq™ diet producti
Slide 15: Impairment of the Novacq Cash Generating Unit (CGU)
IMPAIRMENT OF THE NOVACQ™ CASH GENERATING UNIT (CGU) ASX Disclosure: 13 August 2020 Although the efficacy of Novacq™ in the production of prawns has been well demonstrated and the product is being sold commercially, delays in the development and installation or processing technology have hindered th
Slide 16: Growth Strategy
Growth Strategy. A focus on improvements in core business, whilst growing sales. RIDLEY | FY20 RESULTS | 26 AUGUST 2020
Slide 17: Growth Strategy
GROWTH STRATEGY A focus on improvements in core business, whilst growing sales 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 busines
Slide 18: Growth Strategy: Earnings Growth Potential
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 SA
Slide 19: Sales Growth – Bulk Stockfeed Mills
SALES GROWTH – BULK STOCKFEED MILLS Capacity to grow with our customers FY20 OPTIMISATION OF PRODUCTION FOOTPRINT Closure of 3 feedmills and opening of 1 large feedmill; realising cost savings whilst retaining capacity for growth STOCKFEEDS PRODUCTION UTILITY Utilisation Capacity Ridley has a compet
Slide 20: Sales Growth – Extrusion Facilities
SALES GROWTH – EXTRUSION FACILITIES Well positioned to support industry growth AUSTRALIAN AQUA INDUSTRY DIVERSIFIED 8% CUSTOMER BASE CAGR to FY25 Companion Tropical Narangba FY19 FY20 FY21 FY22 FY23 FY24 FY25 RIDLEY EXTRUSION FACILITIES Westbury Temperate Utilisation Capacity Ridley has a competitiv
Slide 21: Market Disclosure
Market Disclosure. Board appointments and capital management. RIDLEY | FY20 RESULTS | 26 AUGUST 2020
Slide 22: Board Update / Dividend
BOARD UPDATE / DIVIDEND ASX Disclosure : 24 August 2020 Board of Directors update • Retirement of Dr. Gary Weiss AM as previously announced. • Appointment of Mick McMahon as a Director and Ridley Chair from 27 August 2020. • Appointment of Rhys Jones as a Director from 27 August 2020. Suspension of
Slide 23: Outlook
Outlook. Strong and sustainable earnings growth. RIDLEY | FY20 RESULTS | 26 AUGUST 2020
Slide 24: Outlook
OUTLOOK • We are well prepared to manage the employee welfare and business interruption risks presented by the COVID-19 pandemic. • As an ‘essential service’ with a diversified customer base, we expect demand for our products to be resilient despite the impact of the pandemic on the economy. • The b
Slide 25: 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 26: Appendix
Appendix. Supporting information. RIDLEY | FY20 RESULTS | 26 AUGUST 2020
Slide 27: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result - in ($m) FY20 FY19 Analysis of result FY18 FY17 FY16 EBITDA – Ongoing operations before Full year EBITDA result from Operations before significant items up $4.9m 64.3 59.4 60.8 61.0 69.1 significant items on prior year. EBITDA impact of lease accounting New
Slide 28: Balance Sheet – Assets
BALANCE SHEET Assets June June Jun Jun Jun Balance Sheet - in $m Analysis of balances 2020 2019 2018 2017 2016 Closing balance is a function of timing of receipts/payments and draw down/repayment Cash & cash equivalents 45.8 17.5 of bank funding. 30 June 2020 balance includes $20.0m in an At Call ac
Slide 29: Balance Sheet – Liabilities
BALANCE SHEET Liabilities June June June June June Balance Sheet - in $m Analysis of balances 2020 2019 2018 2017 2016 Current payables 161.3 158.8 Reflects timing of creditor payments within agreed trading terms. 155.9 148.6 145.9 - Accounting standard requirement to report borrowings as current. R
Slide 30: Cash Flow
CASH FLOW Consolidated Cash flow - in $m FY20 FY19 Analysis of movement FY18 FY17 FY16 Consolidated EBIT (9.9) 35.4 Consolidated EBIT (Operations less Corporate) and after significant items. 26.4 39.2 46.1 Depreciation and amortisation 26.2 18.9 Aggregate Depreciation and amortisation charges to pro
Slide 31: 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