Slide 1: Ridley Corporation Limited Investor Presentation – 2019 Financial Year
RIDLEY CORPORATION LIMITED INVESTOR PRESENTATION – 2019 FINANCIAL YEAR 1
Slide 2: New CEO and Managing Director appointment
RIDLEY As announced to the market on 19 August 2019, Ridley has appointed Mr Quinton Hildebrand as its new Chief Executive Officer and Managing Director effective from 26 August 2019. Mr Hildebrand will now give a brief introduction to attendees, following which the investor presentation in resp
Slide 3: FY19 highlights
RIDLEY First year of Yamba NovacqTM commercial operation. All 14 ponds at Thailand NovacqTM facility producing by year end. Strong growth in Ruminant, with uplift in drought feeding for Beef & Sheep, in Laverton Rendering and in Packaged Products. Improved performance in Aquafeed and Supplem
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated $54.3m Ridley Consolidated EBITDA and result - in FY19 FY18 FY17 FY16 FY15 Ridley Operations result of $40.5m achieved AUD$million ($m) for the year. Increase in DA reflective of higher levels of EBITDA # 54.3 55.3 50.1 57.1 53.7 capital expenditure in recent ye
Slide 5: Operations
OPERATIONS RIDLEY | INVESTOR PRESENTATION | 2019 FINANCIAL YEAR 5
Slide 6: Ridley Journey
RIDLEY JOURNEY Agri/Salt Rendering Animal Nutrition Solutions - Animal Nutrition mixed becomes market core focus on stabilising & growing core Solutions / Value message competency animal nutrition business add Ingredients 2013 2014 2015 2016 2017 2018 2019 2020 M&A: Purchase of 2nd M&A: Looking for
Slide 7: Ridley Mission
RIDLEY MISSION Compliance & Safety TRFR/LTIFR/MTI - Medically Treated Injuries of 3 for the year a 2nd successive all Livestock time Ridley low Yield / Performance Tasmanian extrusion Improvement in New additives tried, quality of Rendering tested and efficacy “Our Mission is to plant built & Bendig
Slide 8: Financial Highlights - Operations
FINANCIAL HIGHLIGHTS - OPERATIONS EBIT result for Ridley Operations of $40.5m - Dairy, Beef and Sheep, Laverton Rendering, Packaged Products and Supplements all enjoyed growth in a year impacted by a drop in Poultry and Pig volumes and fall in raw material intake volumes at Maroota Rendering follo
Slide 9: Sector Volume History – in '000 Tonnes
SECTOR VOLUME HISTORY – IN ‘000 TONNES Sector FY19 FY18 FY17 FY16 FY15 FY14 FY13 Long term Industry Outlook Poultry 1,054 1,207 1,155 1,044 1,013 1,019 872 Aqua-feed 38 32 35 54 65 50 42 Packaged 73 75 75 78 83 90 90 Dairy 276 312 267 324 334 303 280 Pig 160 185 193 177 168 178 184 Rendering 167 159
Slide 10: Novacq
NOVACQTM RIDLEY | INVESTOR PRESENTATION | 2019 FINANCIAL YEAR 10
Slide 11: Novacq
NOVACQTM Establish product efficacy - process of continuous improvement to improve bioactivity. Scale up Australian production - Yamba production at full capacity with upgrade in electricity supply secured during FY19. Dewatering and drying approaching expected throughput rates. Commercialise in Aus
Slide 12: Novacq
NOVACQTM Scale up Thailand production - looking to secure land adjacent to existing operation to establish the next 36 production ponds. Commercialise in Thailand - entering final year as applied R&D project with commercialisation planned for FY21. Secure import approval - Australian and Thai Novacq
Slide 13: Consolidated Financials
CONSOLIDATED FINANCIALS RIDLEY | INVESTOR PRESENTATION | 2019 FINANCIAL YEAR 13
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated result Net finance expense - increase consistent with FY19 FY18 FY17 FY16 FY15 - in $m banking facility drawdown offset by $0.8m unwind of deferred interest revenue on land EBIT before non- 35.4 38.0 34.9 42.1 38.8 sale proceeds receivable. recurring items Net Fin
Slide 15: Balance Sheet - Assets
BALANCE SHEET - ASSETS Balance Sheet June June June June June Cash and cash equivalents - closing balance is a function of - in $m 2019 2018 2017 2016 2015 timing of receipts/payments and draw down/repayment of bank funding. Cash & equivalents 17.5 23.4 16.5 28.5 35.0 Inventory - reflects higher
Slide 16: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Balance Sheet June June June June June Payables - reflects timing of creditor payments within - in $m 2019 2018 2017 2016 2015 agreed trading terms, noting the higher raw material prices versus the prior year. Provisions - all current and non-current provisions Curren
Slide 17: Cash Flow
CASH FLOW Consolidated Cash flow - in $m FY19 FY18 FY17 FY16 FY15 Consolidated group EBITDA of $54.3m, up $10.6m on FY18 $43.7m after non- Consolidated group EBITDA # 54.3 43.7 54.4 61.1 51.0 recurring items. Movement in working capital (7.3) 15.3 (2.6) (19.3) 7.0 $7.3m increase in working capit
Slide 18: Return on Funds Employed
RETURN ON FUNDS EMPLOYED FY19 FY18 FY17 FY16 FY15 FY14 Consolidated results - in $m Consolidated group EBITDA 54.3 43.7 54.4 61.1 51.0 41.0 Add back: Property - (profit)/loss (6.2) (4.2) 1.0 2.0 2.7 2.2 Non-recurring items (inc Dry Creek FY14-16) - 11.6 (4.3) (4.0) 2.7 1.9 Core business EBITDA 48.1
Slide 19: Property
PROPERTY RIDLEY | INVESTOR PRESENTATION | 2019 FINANCIAL YEAR 19
Slide 20: Property
PROPERTY LARA • $6.2m of property segment profits generated in FY19 from sales of Lots LARA A and C (Lot B having been sold in June 2018) plus $1.8m of deferred interest receivable on present valuing the consideration due in future years. LOT A - SOLD • $5.0m of proceeds received in FY19 JULY 2018 w
Slide 21: Outlook
OUTLOOK RIDLEY | INVESTOR PRESENTATION | 2019 FINANCIAL YEAR 21
Slide 22: Outlook - Animal Nutrition Solutions
OUTLOOK - ANIMAL NUTRITION SOLUTIONS Poultry and Pig - Poultry volumes are expected to improve in the coming year as the industry reverts to the traditional bird life cycle and given that the positive long term outlook for poultry remains unchanged. Pig breeder inventories are expected to increase
Slide 23: Westbury, Tasmania
WESTBURY, TASMANIA First commercial feed delivered in June 2019 with official opening on 24 July 2019. World class extrusion facility to service all aquafeed species, to target new and returning salmon customers & industry growth, and expand in- house pet food capability. From design concept to
Slide 24: Wellsford, Central Victoria
WELLSFORD, CENTRAL VICTORIA Design concept Construction commenced with Engineering, Procurement and Construction (EPC) orders placed, and $21.2m expended in FY19 . Underpinned by 10 year supply agreement with Hazeldene’s Chickens, with capacity to facilitate retirement of existing Bendigo mill a
Slide 25: Ridley Footprint
RIDLEY FOOTPRINT NovacqTM ingredients business established at Chanthaburi. Expansion of 36 more production ponds targeted New feedmill under for FY20 construction at Wellsford, Bendigo and phase out existing mill New extrusion plant opened at Westbury on 24 July 2019 25
Slide 26: Outlook - Strategy
OUTLOOK - STRATEGY CEO - the Board’s emphasis for the incoming CEO and Managing Director is to concentrate on domestic growth plans, leverage Ridley’s state of the art facilities, and accelerate the commercialisation of its NovacqTM franchise internationally. Fin fish and Poultry - the Aquafeed
Slide 27: Contact Details
CONTACT DETAILS David Lord Interim Chief Executive Officer Email: David.Lord@ridley.com.au Tel: +61 3 8624 6510 Fax: +61 3 8624 6414 Mobile: + 61 419 342 545 Ridley Corporation Limited ABN 33 006 708 765 Level 4, 565 Bourke Street Melbourne, VIC. 3000 Australia www.ridley.com.au ASX: RIC RIDLEY | IN