Slide 1: FY22 Results
ASX: RIC FY22 RESULTS Creating Shareholder Value Quinton Hildebrand MD & CEO Richard Betts CFO LEADING ANIMAL NUTRITION F Y 2 2 R E S U LT S | 18 August 2022 1 18 August 2022
Slide 2: FY22 Financial Highlights
FY22 FINANCIAL HIGHLIGHTS NPAT EBITDA (underlying) Delivered Earnings Growth --- 16% YOY EBITDA growth from ongoing operations $42.4m $80.1m --- both reporting sectors grew organically +70% YoY growth +16% YoY growth Operating Cash Flow ROFE (underlying) Strengthened the Balance Sheet --- net debt r
Slide 3: Progress in FY22
PROGRESS IN FY22 During the year Ridley successfully : --- delivered the FY20 – FY22 Growth Plan, --- operated safely through COVID-19 challenges, --- delivered for customers despite disrupted supply chains, --- proactively managed volatile commodity markets, --- increased asset utilisation and adde
Slide 4: Packaged Feeds & Ingredients Segment
PACKAGED FEEDS & INGREDIENTS SEGMENT FY22 ($m) FY21 ($m) Variance % EBITDA before significant items 58.0 46.5 +25% EBIT 47.9 33.2 +44% Segment Assets 269.8 305.4 Segment Liabilities (66.4) (60.1) Segment Net Assets 203.4 245.3 (17%) EBITDA ROFE 28.5% 19.0% +50% • Improved returns from our Ingredient
Slide 5: Bulk Stockfeeds Segment
BULK STOCKFEEDS SEGMENT FY22 ($m) FY21 ($m) Variance % EBITDA before significant items 34.4 32.5 +6% EBIT 18.7 16.3 +15% Segment Assets 280.2 258.6 Segment Liabilities (161.5) (132.3) Segment Net Assets 118.7 126.3 (6%) EBITDA ROFE 29.0% 25.7% +13% • Increased market share across all major species,
Slide 6: Financial Results
FINANCIAL RESULTS LEADING ANIMAL NUTRITION F Y 2 2 R E S U LT S | 18 August 2022 6
Slide 7: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result ($m) FY22 FY21 Analysis of Result EBITDA – Packaged Feeds & Ingredients 58.0 32.5 See Segment performance Reporting (slide 4) EBITDA – Bulk Stockfeeds 34.4 46.5 See Segment performance Reporting (slide 5) EBITDA – Ongoing operations before significant items
Slide 8: Balance Sheet
BALANCE SHEET Consolidated Result ($m) June 2022 June 2021 Analysis of balances and movements Cash & cash equivalents 27.1 39.9 Balance is a function of timing of receipts / payments and draw down / repayment of bank funding Increase in inventory, includes a strategic build of ~$21m and the remainde
Slide 9: Cash Flow
CASH FLOW Consolidated Cash flow ($m) FY22 FY21 Analysis of movement Consolidated EBIT 63.3 39.5 Consolidated EBIT after significant items Depreciation and amortisation 25.8 29.6 Reduction in depreciation following the sale of Westbury Consolidated EBITDA 89.1 69.1 Consolidated EBITDA after $8.9m of
Slide 10: Net Debt, Gearing & Leverage
NET DEBT, GEARING & LEVERAGE Net debt and gearing ($m) FY22 FY21 Analysis of movements Gross debt 50.0 123.0 $73m of gross debt retired in period Less: cash and cash equivalents 27.1 39.9 Reported net debt 22.9 83.1 $60.2m net debt retired in FY21 Total equity 316.0 287.5 Total Equity per Consolidat
Slide 11: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Delivered in FY22: • Strong operating result underpinned cashflow Operating Cash Flow • Decision to hold inventory to mitigate supply chain Maintenance & ESG Capital (~60 – 80% of Depreciation) disruptions increased working capital; maintenance / ESG and Working Capital
Slide 12: Growth Strategy
GROWTH STRATEGY LEADING ANIMAL NUTRITION F Y 2 2 R E S U LT S | 18 August 2022 12
Slide 13: Proven Pillars of Earnings Growth
PROVEN PILLARS OF EARNINGS GROWTH $80.1m In this Plan period, we reset the business to… --- focus on the customer $69.1m --- increase asset utilisation --- optimise the connected business units $59.5m --- drive accountability for performance $48.1m … and have delivered year on year earnings growth.
Slide 14: FY23-FY25 Growth Plan: Bulk Stockfeeds
FY23 - FY25 GROWTH PLAN : BULK STOCKFEEDS Ridley’s Virtuous Cycle Bulk Stockfeed Increase Capacity Key Initiatives and Efficiency Strategy Growth Leverage the flywheel • increase mill utilisation Invest in Better Delivery Infrastructure and Reliability • de-bottleneck sites effects of scale, extend
Slide 15: FY23-FY25 Growth Plan: Packaged & Ingredients
FY23 – FY25 GROWTH PLAN : PACKAGED & INGREDIENTS Packaged Aqua Ingredient Recovery (formerly Rendering) Products (Feed / Sector Support) NovaqPro™ Strategy Strategy Strategy Strategy “climbing the wall of value” Invest in processing Product Extend our rural market Share in the growth of Continue cap
Slide 16: Ridley Sustainability Pathway
RIDLEY SUSTAINABILITY PATHWAY We’re working with our partners to deliver real value in sustainable ways, focusing on: SMARTER INGREDIENTS OPTIMISED PRODUCTION EFFECTIVE SOLUTIONS MEANINGFUL PARTNERSHIPS Sourcing high-quality raw materials that are Optimising our manufacturing and supply chain Develo
Slide 17: Growth Plan FY23-FY25
GROWTH PLAN FY23 – FY25 Key Initiatives FY22 FY23 FY24 FY25 --- NovaqPro™ international sales --- Growing with aqua customers --- Companion animal sales --- Premiumisation of rendered products --- Tallow & protein meal trading EBITDA Earnings Growth Packaged & --- NovaqPro™ operating efficiencies In
Slide 18: Ridley's Growth Platform
RIDLEY’S GROWTH PLATFORM • Australian farm gate output is forecast to continue increasing. • Ridley’s position as market leader in the animal nutrition sector provides scale benefits and the capacity to employ specialists and adopt technology. • Ridley’s capability and products can deliver profitabl
Slide 19: Outlook
OUTLOOK LEADING ANIMAL NUTRITION 19
Slide 20: Outlook
OUTLOOK Ridley expects to grow earnings and cashflow in the year ahead by: • increasing sales as we support the growth of our existing customers and win market share; • implementing cost savings and efficiency initiatives; and • executing on the Growth Plans in place for each business unit. Cash gen
Slide 21: Important notice and 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 summary form and does not purport to be com
Slide 22: Historical Financial Information
HISTORICAL FINANCIAL INFORMATION LEADING ANIMAL NUTRITION F Y 2 2 R E S U LT S | 18 August 2022 22
Slide 23: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result ($m) FY22 FY21 Analysis of Result FY20 FY19 FY18 EBITDA – Ongoing operations before significant items 92.4 79.0 Up $13.4m, or 17.0% on prior year period 69.4 59.4 60.8 Corporate Costs (12.2) (9.9) Additional accruals for employee LTIs, linked to improved res
Slide 24: Balance Sheet - Assets
BALANCE SHEET - ASSETS Balance Sheet ($m) June 22 June 21 Analysis of balances June 20 June 19 June 18 Balance is a function of timing of receipts/payments and draw down/repayment of bank Cash & cash equivalents 27.1 39.9 45.8 17.5 23.4 funding Increase in inventory, includes a strategic build of ~$
Slide 25: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Balance Sheet ($m) June 22 June 21 Analysis of balances June 20 June 19 June 18 Reflects timing of creditor payments within agreed trading terms and increased commodity Current payables 202.2 165.5 161.3 158.8 155.9 prices Current provisions 15.1 17.3 Includes current emp
Slide 26: Cash Flow
CASH FLOW Consolidated Cash flow ($m) FY22 FY21 Analysis of movement FY20 FY19 FY18 Consolidated EBIT 63.3 39.5 Consolidated EBIT after significant items (11.0) 35.4 26.4 Depreciation and amortisation 25.8 29.6 P&L charges for the year, reduction based on the sale of Westbury 26.2 18.9 17.3 Consolid
Slide 27: Net Debt, Gearing & Leverage
NET DEBT, GEARING & LEVERAGE Net debt and gearing ($m) FY22 FY21 Analysis of movements FY20 FY19 FY18 Gross debt 50.0 123.0 $73m of gross debt retired in period 193.0 118.9 76.2 Less: cash and cash equivalents 27.1 39.9 45.8 17.5 23.4 Reported net debt 22.9 83.1 $60.2m net debt retired in FY21 147.2
Slide 28: Contact Details
CONTACT DETAILS Quinton Hildebrand Managing Director and Chief Executive Officer quinton.hildebrand@ridley.com.au +61 3 8624 6529 LEADING ANIMAL NUTRITION F Y 2 2 R E S U LT S | 18 August 2022 28