Slide 1: Ridley Half Year Results Presentation
RIDLEY HALF YEAR RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 2: Steps to Unlock Shareholder Value
STEPS TO UNLOCK SHAREHOLDER VALUE INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Focus on optimising business and structure to deliver shareholder value Sub-optimal ownership structure – inadequate recognition of Cheetham Salt’s unique attributes: Irreplac
Slide 3: Diversity Delivers Solid Result
DIVERSITY DELIVERS SOLID RESULT INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only $0.3 million uplift in EBIT to $20.9m Robust operations - Camilleri acquisition provides additional risk mitigation and stability whilst meeting all performance targets Ridley A
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Consolidated result 1H 1H Group EBIT of $20.9m, up $0.3m - in $m FY12 FY11 AgriProducts result of $14.9m, up $2.1m with Camilleri contribution Sales Revenue 378.3 373.6 meeting acquisition m
Slide 5: Ridley AgriProducts Results Presentation
RIDLEY AGRIPRODUCTS RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 6: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only EBIT result of $14.9m - positive contribution from Camilleri to improve result by $2.1m despite lower core business sector earnings Aqua-feeds - reduction in Australian prawn and kingfish production a
Slide 7: Sector Analysis
SECTOR ANALYSIS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Sector 1H 1H Outlook Poultry: plateau of volume growth from long term FY12 FY11 customer contracts; half year impacted by temporary reduction in industry bird numbers (kt) (kt) Aqua-feed: expansi
Slide 8: Financial Summary
FINANCIAL SUMMARY For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Agriproducts ($m) 1H FY12 1H FY11 Operations - 1H FY12 result bolstered by Camilleri contribution Sales ($) 322.3 318.5 Capex - $4.1m maintained within EBIT 14.9 12.8 DA of $4.3m with new Paken
Slide 9: Outlook
OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Macro Economic Environment Abundant pasture from prior year rains has not been burnt off by summer season, slowing the rate of return to historical Ridley Dairy volumes and margins Concentration of Ridle
Slide 10: Strategy
STRATEGY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Strategic Actions for 2H FY12 Poultry - provision of seamless and quality service to key customers and ensuring sufficient capacity to manage additional volumes in South Australia and SE Queensland region
Slide 11: Cheetham Salt Results Presentation
CHEETHAM SALT RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 12: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only EBIT result of $10.0m, down $1.3m Adverse impact of prior year severe weather events: higher salt cost of sales from weather-driven harvest delays, poor evaporation and reduced yields higher suppl
Slide 13: Sector Analysis
SECTOR ANALYSIS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Sector 1H 1H Outlook Soda Ash: continuing low volumes FY12 FY11 dependent upon demand from Penrice (kt) (kt) Chemical: reduction due to plant Soda Ash 261 260 maintenance shut down at major custo
Slide 14: Financial Summary
FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Cheetham (A$m) 1H FY12 1H FY11 Operations - EBIT result before Sales ($) 56.0 55.2 JV’s of $6.5m, down $1.3m on prior period due to higher salt & logistics EBIT (excl. JV NPAT) 6.5 7.8 costs Depr
Slide 15: Outlook
OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Macro Economic Environment Domestic food salt demand stable as reductions in the salt content of food products is being offset by population growth Salt remains a low cost, essential ingredient/constitue
Slide 16: Strategy
STRATEGY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Strategic Actions for 2H FY12 Sell the higher cost Queensland inventory over the coming months and replace with lower cost base inventory Plan and execute an efficient harvest strategy to deliver signif
Slide 17: Property
PROPERTY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Lara and Moolap - pursue land tenure discussions with the Government to secure the approvals necessary to redevelop the sites Dandenong - look to secure sale in 2H FY12 Wacol - satisfy all conditions
Slide 18: JV Earnings Gross Up & EBITDA
JV EARNINGS GROSS UP & EBITDA INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Financial KPI’s 1H 1H in $m FY12 FY11 JV NPAT reported in 3.5 3.5 Income Statement Reported EBIT result in 20.9 20.6 Income Statement JV Interest and tax 1.6 1.7 EBIT 22.5 22.3 DA exclu
Slide 19: Balance Sheet
BALANCE SHEET INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Balance Sheet in $m 31/12 31/12 30/6 Current Assets at 31/12/11 includes 2011 2010 2011 assets held for sale of $5.3m formerly Total Current Assets 206.1 190.9 193.7 in P,P&E & prior year tax receiva
Slide 20: Working Capital
WORKING CAPITAL INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Working Capital in $m 31/12 31/12 30/6 Reduction in creditors 2011 2010 2011 reflects transition to new Trade debtors 90.2 89.8 85.9 trade payables facility Other debtors & prepayments 4.4 4.2 3.1
Slide 21: Capital Expenditure
CAPITAL EXPENDITURE INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Items in $m Agri Salt Total New Pakenham mill development approval Other 0.4 0.3 0.7 received in period and plant Pakenham Mill 1.0 - 1.0 manufacture commenced; activity to ramp up in 2H Total
Slide 22: Cash Flow
CASH FLOW INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Cash flow in $m 31/12 31/12 30/6/ Consistent EBITDA performance 2011 2010 2011 Working capital - $11.9m impact of EBITDA (inc JV NPAT’s) 27.7 27.8 54.2 transition to new facility Working capital moveme
Slide 23: Financial Ratios
FINANCIAL RATIOS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Financial KPI’s 31/12 31/12 30/6/ Debt and cash flow KPI’s impacted 2011 2010 2011 by temporary increase in working Net Debt - in $m 120.0 75.8 102.1 capital to transition to new trade payables fa
Slide 24: Dividend History
DIVIDEND HISTORY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Financial % Interim # Tax Final # Tax Payout year franked effected effected ratio FY07 50% 3.50 2.98 3.50 2.98 88% FY08 50% 3.50 2.98 3.50 2.98 195% FY09 - 3.50 2.45 3.50 2.45 75% FY10 - 3.50 2.45 3
Slide 25: Half Year Conclusions
HALF YEAR CONCLUSIONS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Positive Camilleri contribution cushioned weather related impacts Half year result impacted by the weather events of the prior year - Dairy and Supplements stockfeed sectors and Hide and St
Slide 26: Operational Outlook
OPERATIONAL OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Construct new mill at Pakenham to facilitate implementation of Gippsland Dairy strategy Implement new trade payables facility and continue to focus on effective management of working capital
Slide 27: Outlook
OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Actively pursue tenure with the Indonesian Government for the new salt field on the island of Flores, Indonesia Examine opportunities and secure the necessary approvals to redevelop the Lara and Moolap s
Slide 28: Ridley Corporation
Ridley Corporation For personal use only A compelling proposition