Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Shareholder Meeting (February 2009)
43 slides from Graincorp Limited Class A's shareholder meeting presentation, Feb 25, 2009
Slide 1: Company announcement: AGM presentation to Shareholders
Company announcement GrainCorp Limited ABN 60 057 186 035 Date: 25 February 2009 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com PUBLIC ANNOUNCEMENT Contents for immediate release: Please find the following the AGM presentation to Shareholders Betty Ivanoff Co
Slide 2: Annual General Meeting
For personal use only 25 February 2009 ANNUAL GENERAL MEETING Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hunter Grain | Allied Mills 1
Slide 3: Welcome
For personal use only Welcome GrainCorp Chairman Mr Don Taylor Hyama Star loading wheat for Cargill Port Kembla terminal 23 December ‘08 Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hunter Grain | Allied Mills 2
Slide 4: Agenda
Agenda For personal use only 1. Chairman's address 2. Ordinary and Special Business 3. Attendance and Apologies 4. Business Report 5. Questions Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hunter Grain | Allied Mills 3
Slide 5: Chairman's Address - FY Results
Chairman’s Address ‐ FY 08 ‐ Results For personal use only • EBITDA Financial Results FY 08 FY 07 movements FY 07 to FY 08 million million – Storage and Logistics – up 68.8% Revenue $1,534.2 $824.9 – Port Terminals – up 84.2% – Marketing and Hunter Grain – up EBITDA $51.3 $31.9 17.8% • Marketing PBT
Slide 6: Chairman's Address
Chairman’s Address For personal use only • 2007‐08 results – second successive loss due to drought • Current financial year –return to profitability • Agriculture’s resilience • New export wheat marketing arrangements • GrainCorp’s rail initiatives • GrainCorp finances are in place • Recent share pr
Slide 7: Ordinary and Special Business
For personal use only Ordinary and Special Business GrainCorp Chairman Mr Don Taylor Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hunter Grain | Allied Mills 6
Slide 8: Attendance and Apologies
For personal use only Attendance and Apologies GrainCorp container packing facility Fisherman Islands Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hunter Grain | Allied Mills 7
Slide 9: Ordinary and Special Business
Ordinary and Special Business For personal use only • Minutes of the previous AGM, 27 February 2008 • Discussion of Financial Statements and Reports • Shareholder questions • Adoption of Remuneration Report • Election of Directors • Adoption of new GrainCorp Constitution Grain Storage | Supply Chain
Slide 10: Minutes of the Previous AGM
Minutes of the Previous AGM For personal use only The minutes of the previous AGM held on 27th February 2008 tabled by the Chairman. Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hunter Grain | Allied Mills 9
Slide 11: Financial Statements and Reports
For personal use only Financial Statements and Reports GM canola – Canowindra NSW – October ‘08 Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hunter Grain | Allied Mills 10
Slide 12: Shareholder Questions
Shareholder Questions For personal use only 1. How can GrainCorp reduce its high debt? 2. When will the company return to profit? 3. Recently we have had no dividends paid. One expects some return from investments. (We have held shares in GrainCorp since they were first listed on the stock exchange)
Slide 13: Shareholder Questions
Shareholder Questions For personal use only 4. If a person nominates to become a director of GrainCorp Limited, he or she should be deemed to be dedicated to work for the company without the need of incentives and bonuses. Why should shareholders who might need the money miss out on dividends when a
Slide 14: Shareholder Questions
Shareholder Questions For personal use only 6. When will GrainCorp supply fit/hang electronic weigh scales under outloading augers filling road transports, to correct under/overloading and much shorter leading time of trucks? To start off I suggest 30 units to each state x 3 states this year and add
Slide 15: Adoption of Remuneration Report
Adoption of Remuneration Report For personal use only Item 2 ‐ To consider, and if thought appropriate, pass the following ordinary resolution: “That the Remuneration Report for the financial year ended 30 September 2008 set out in the Directors’ Report be adopted.” Note: The vote on this resolution
Slide 16: Adoption of Remuneration Report - Proxy Votes
Adoption of Remuneration Report For personal use only Item 2 Adoption of Remuneration Report Proxy Votes ____________________________________________________________________ FOR AGAINST OPEN TOTAL _____________________________________________________________________________ RESOLUTION 2 13,308,678 3
Slide 17: Election of Directors
Election of Directors For personal use only Item 3A ‐ To consider, and if thought appropriate, pass the following ordinary resolution: “That for the purposes of ASX Listing Rule 14.4, article 10.5(b) of the Constitution and for all other purposes, Mr. David Groves, retiring by rotation, being eligib
Slide 18: Election of Directors - Item 3A Proxy Votes
Election of Directors For personal use only Item 3A – Election of Mr David Groves Proxy Votes ____________________________________________________________________ FOR AGAINST OPEN TOTAL _____________________________________________________________________________ RESOLUTION 3A 16,028,693 808,207 2,7
Slide 19: Election of Directors (cont)
Election of Directors (cont) For personal use only Item 3B ‐ To consider, and if thought appropriate, pass the following ordinary resolution: B. “That for the purpose of article 10.4B of the Constitution and for all other purposes, Mr. Daniel Mangelsdorf, retiring by condition of the removal of the
Slide 20: Election of Directors - Item 3B Proxy Votes
Election of Directors (cont) For personal use only Item 3B – Election of Mr Daniel Mangelsdorf Proxy Votes ____________________________________________________________________ FOR AGAINST OPEN TOTAL _____________________________________________________________________________ RESOLUTION 3B 16,424,08
Slide 21: Election of Directors (cont)
Election of Directors (cont) For personal use only Item 3C ‐ To consider, and if thought appropriate, pass the following ordinary resolution: C. “That for the purposes of ASX Listing Rule 14.4, section 201H(3) of the Corporations Act, article 10.5(c) of the Constitution and all other purposes, Mr. P
Slide 22: Election of Directors - Item 3C Proxy Votes
Election of Directors (cont) For personal use only Item 3C – Election of Mr Peter Housden Proxy Votes ____________________________________________________________________ FOR AGAINST OPEN TOTAL _____________________________________________________________________________ RESOLUTION 3C 16,412,472 394
Slide 23: Election of Directors (cont)
Election of Directors (cont) For personal use only Item 3D ‐ To consider, and if thought appropriate, pass the following ordinary resolution: D. “That for the purposes of ASX Listing Rule 14.4, section 201H(3) of the Corporations Act, article 10.5(c) of the Constitution and all other purposes, Mr. S
Slide 24: Election of Directors - Item 3D Proxy Votes
Election of Directors (cont) For personal use only Item 3D – Election of Mr Simon Tregoning Proxy Votes ____________________________________________________________________ FOR AGAINST OPEN TOTAL _____________________________________________________________________________ RESOLUTION 3D 16,416,292 3
Slide 25: GrainCorp Constitution
GrainCorp Constitution For personal use only Item 4 ‐ “That the document submitted to the meeting, and for the purpose of identification signed by the Chairman of the meeting, is adopted as the new Constitution of GrainCorp Limited in substitution for the present Constitution of GrainCorp Limited, w
Slide 26: GrainCorp Constitution - Proxy Votes
GrainCorp Constitution For personal use only Item 4 – Adoption of New Constitution Proxy Votes ____________________________________________________________________ FOR AGAINST OPEN TOTAL _____________________________________________________________________________ RESOLUTION 4 16,535,044 254,134 2,8
Slide 27: Business Report
Business Report For personal use only Mr Mark Irwin Managing Director Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hunter Grain | Allied Mills 26
Slide 28: Year in Review
Year in Review For personal use only • Global – Grain prices spiked to record highs late 2007 and into early 2008 – Record Northern Hemisphere grain crop and recovery in global stocks from record low levels – Grain prices returned to near average by end ‘08 • Eastern States of Australia – Record 200
Slide 29: Year in Review - Our Company
Year in Review – Our Company For personal use only • Year of major change 9Emerging from 2 years of drought 9Entry into bulk wheat export market 9Take‐or‐pay trains in NSW and Victoria 9Organisational realignment 8 Record low grain carry in – 1.2 mmt 8 Below average receival and exports 8 Unsuccessf
Slide 30: Year in Review - Storage and Logistics
Year in Review ‐ Storage and Logistics For personal use only • Operations – Record low carry in – 5.8 mmt grain received into storage network – Management of 8 take or pay trains – logistics challenges and opportunities – Record sorghum crop ‐ 2.1 mmt handled in QLD and northern NSW • Financial – EB
Slide 31: Year in Review - Port Terminals
Year in Review ‐ Port Terminals For personal use only • Operations FY 08 FY 07 Comment Grain Exports Handled 0.8 mmt 1.0 mmt Ð 200 kt Non Grain Exports Handled 2.1 mmt 1.8 mmt Ï 300 kt Grain Imports Handled 280 kt 288 kt Ð 8 kt Grain Exported in Containers 321 kt 80 kt Ï 241 kt • Financial – EBITDA
Slide 32: Year in Review - Marketing
Year in Review ‐ Marketing For personal use only • Record wheat prices and inventory financing costs • High interest rates • Strong performance from wheat desk offset by disappointing performance on coarse grains • Bulk wheat export accreditation – Appointment of key staff – Export accreditation suc
Slide 33: Year in Review - Merchandise
Year in Review ‐ Merchandise For personal use only • Highlights – Record fertiliser and chemical prices – Record gross margin increase across all categories – Increased fertiliser tonnes sold – Network optimisation • Horsham ‐ fully integrated, new premises opened Feb 08 • Narrabri ‐ new facility op
Slide 34: Year in Review - Hunter Grain
Year in Review ‐ Hunter Grain For personal use only • Highlights – 285 kt soymeal imported and sold in Australia and New Zealand – 300 kt grains and oilseeds traded – Increasingly competitive sector with margins under pressure • Financial – EBITDA $11.0 M – PBT $4.7 M Grain Storage | Supply Chain Lo
Slide 35: Year in Review - Allied Mills
Year in Review ‐ Allied Mills For personal use only • Highlights – 50% share of the Australian human consumption flour market – New $97 M Picton wheat and maize flour mill – largest in Australia ‐ commenced production November 08 – Tonnages for bulk flour remain under pressure – increasing growth in
Slide 36: Bulk Wheat Export Monopoly Removal
Bulk Wheat Export Monopoly Removal For personal use only • Removal of the bulk wheat export monopoly July 08 • New revenue streams – Exporting wheat in bulk and accumulation of grain on behalf of exporters – Export alliances – Supply chain service ‘packaging’ – silo to port – Rail freight services f
Slide 37: FY 08/09 - Corporate Initiatives
FY 08/09 ‐ Corporate Initiatives For personal use only • Organisation structure changes July 2008 – Outcome ‐ Improved customer focus • New retention share scheme and alignment of KPIs across whole company • Additional structural review commenced – Focusing on efficiency of corporate functions and r
Slide 38: Grain Receival Update
Grain Receival Update For personal use only Grain Receivals • Total winter crop receivals 14.0 7.83 mmt 12.0 • Sorghum receivals 10.0 YTD 457 kt Million Tonnes 8.0 • Total grain receivals YTD 8.28 mmt 6.0 • Forecast sorghum crop 4.0 receival range 2.0 0.7 to 1 mmt ‐ 2004 2005 2006 2007 2008 2009 YTD
Slide 39: Grain Export Update
Grain Export Update For personal use only • Grain exported through Grain Exports Handled 7.0 GrainCorp terminals YTD 1.04 mmt 6.0 • GrainCorp wheat 5.0 exports YTD over 600 kt 4.0 3.0 • Forecast grain exported through GrainCorp 2.0 terminals expected to 1.0 exceed 3.0 mmt* ‐ * Subject to timing of e
Slide 40: Non Grain Export Update
Non Grain Export Update For personal use only • Non grain exports 2.5 Non Grain Exports Handled YTD 534 kt 2.0 1.5 1.0 0.5 ‐ 2004 2005 2006 2007 2008 2009 F Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hunter Grain | Allied Mills 39
Slide 41: Earnings Guidance - FY09
Earnings Guidance – FY 09 For personal use only • Good performance from Storage and Logistics, Ports 30.0 and Marketing 28.0 • Merchandise and Hunter 20.0 Grain below target 31.7 25.7 23.0 • Strong performance 10.0 $ Million compared to 10 mmt 13.5 receivals in 2005 ‐ 2004 2005 2006 2007 2008 2009F
Slide 42: Business Initiatives
Business Initiatives For personal use only • Further supply chain opportunities in the agriculture sector • Domestic grain market share growth • Growth in bulk wheat exports • Business excellence initiatives Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hun
Slide 43: Shareholder Questions
For personal use only SHAREHOLDER QUESTIONS M V Intrepid loading wheat for GrainCorp Port Kembla terminal - 19 February ‘09 Grain Storage | Supply Chain Logistics | Grain Marketing |Port Terminals | Merchandise | Hunter Grain | Allied Mills 42