Ridley Corporation Limited · ASX:RIC

Ridley — BBY 2011 Agriculture, Clean Technology & Energy Conference

32 slides from Ridley's conference presentation, Oct 19, 2011

  1. Slide 1: BBY 2011 Agriculture, Clean Technology & Energy Conference

    Ridley RidleyCorporation Corporation For personal use only BBY 2011 Agriculture, Clean Technology gy & Energygy Conference 18-19 October 2011 1

  2. Slide 2: Ridley Corporation

    Ridley Corporation For personal use only Ridley Corporation Limited (RIC) is an ASX listed processor of agricultural products. Ridley comprises:  Ridley Agriproducts Pty Ltd – Australia’s l largestt animal i l ffeed d supplier, li iincluding l di tto th the poultry, dairy, fish, pig, cattle, sheep,

  3. Slide 3: Ridley reported profits

    Ridley reported profits For personal use only @ Ridley required to Profit & Loss FY08 FY09 FY10 FY11 report JV earnings as AgriProducts EBIT 15.0 24.4 29.0 24.9 NPAT Cheetham Salt EBIT (before JV’s) 17.9 12.9 16.8 14.2  Sale of Ridley Inc. S lt JV’s Salt JV’ NPAT 69 6.9 71 7.1 72 7.2 70@ 7.0 occurr

  4. Slide 4: Ridley resilient in FY11

    Ridley resilient in FY11 For personal use only 4

  5. Slide 5: AgriProducts

    AgriProducts For personal use only Pellets, meals, concentrates and premixes for dairy cattle, pigs, poultry, A range of products, advice horses, laboratory animals and and services that reflects our lifestyle pets at all stages of life. concern not just for our c stomer but customer b t for our o r

  6. Slide 6: AgriProducts market segments

    AgriProducts market segments For personal use only Sector (kt) FY08 FY09 FY10 FY11  Barastoc B t P lt Poultry: l long t term customer t contracts t t Poultry 640 708 764 900 with major clients such as Baiada, Inghams, Aqua-feed 29 37 47 50 LaIonica, Hazeldene and Luv-a-Duck supported by market grow

  7. Slide 7: AgriProducts Financial Summary

    AgriProducts Financial Summary For personal use only AgriProducts ($m) FY10 FY11  EBIT result of $24.9m, affected by adverse weather conditions with Sales ($) $ 620.0 616.4 estimated impact of $3m in Dairy, EBIT # 29.0 24.9 $2m in Supplements, and $6.6m in total Add back dep’n & amort’n 7.6 8.6  R

  8. Slide 8: Cheetham Assets

    Cheetham Assets For personal use only Cheetham owns  11 solar l saltlt fi fields ld with ith combined production capacity of ~1.4mt  5 refineries (one in Indonesia) including a flake salt plant  ~70% domestic market share Joint Venture interests  Salpak: JV with Cerebos in Australian retail salt

  9. Slide 9: Cheetham

    Cheetham For personal use only Mermaid is the core Cheetham solar salt Mermaid Finest is the premier quality salt for . brand. Products include cooking salt, use in pools. A totally natural product iodized salt, manufacturing salt, rock and obtained by solar evaporation, Mermaid flake salt as well a

  10. Slide 10: Cheetham market segments

    Cheetham market segments For personal use only Sector (kt) FY08 FY09 FY10 FY11  Soda Ash: pperformance linked to the demand from Penrice and in turn the derived demand from glass Soda Ash 574 581 567 529 manufacturers in Australia Chemical 172 143 165 132  Chemical: performance linked to Chlor-alk

  11. Slide 11: Cheetham Financial Summary

    Cheetham Financial Summary For personal use only Cheetham (A$m) FY10 FY11  Sales revenue maintained despite 10.5% volume decrease Sales ($) $ 107.9 107.3 EBIT (excl. JV NPAT) 16.8 14.2  EBIT result before JV’s of $14.2m, down Depreciation 4.5 5.6 $2.6m on FY10 EBITDA (excl. JVs) 21.3 19.8  Higher

  12. Slide 12: Cheetham Joint Ventures

    Cheetham Joint Ventures For personal use only Cheetham Joint Ventures FY10 FY11  JVs disclosed in Income (JVs) in A$m St t Statement t as equity it EBITDA 11.1 11.1 accounted NPAT of $7.0m Depreciation and amortisation (0.6) (0.8)  Income Statement conceals EBIT 10.5 10.3 JJV ta tax,, interest te

  13. Slide 13: Cheetham in Indonesia

    Cheetham in Indonesia For personal use only New Cilegon Refinery  1996 - Cheetham Salt establishes Jakarta office ffi  1997 - Discussion with PT Garam commence  1998 - Field study undertaken with salt field improvement opportunities identified  1998 – wholly owned subsidiary established  2000 -

  14. Slide 14: Property Strategy

    Property Strategy For personal use only  The property strategy is to unlock the potential value of significant parcels of 316ha located 12kms from Adelaide CBD land close to urban centres and Longer term 5 years+ surplus to operating requirements Salt field relocation required  Key sites held by C

  15. Slide 15: Some key points about Ridley

    Some key points about Ridley For personal use only  Ridley is diversified across salt and the intensive industries of poultry, aquafeed, dairy and pork, pork for all of which high performance feeding is critical to success  Unique agrisector position with relatively low exposure to all but extreme

  16. Slide 16: Strategic Priorities FY12

    Strategic Priorities FY12 For personal use only Strategic priorities announced in August 2011: 1. Agribusiness consolidation 2. Asian expansion 3. Feedstock operational improvement 4. Property redevelopment 16

  17. Slide 17: Agribusiness Consolidation

    Agribusiness Consolidation For personal use only Against a backdrop of:  Playing a vital role in the global food supply chain  Providing key inputs for food products for human and livestock consumption  Agribusiness industry consolidation occurring with loss of domestic ownership Objectives to: 

  18. Slide 18: Asian Expansion

    Asian Expansion For personal use only Against a backdrop of:  Existing E i ti saltlt refinery fi and d business b i in i Indonesia, I d i locally l ll staffed t ff d  Large, growing, and increasingly middle class population in closest proximity to Australia  Strong existing relationships with loc

  19. Slide 19: Feedstock Operational Improvement

    Feedstock Operational Improvement For personal use only Against a backdrop of:  Implementation of ERP system over the last 18 months  Improved performance over the last three years but further gains achievable  Program of mill and operations rationalisation in 2008/2009 Objectives to:  Uplift U

  20. Slide 20: Property Redevelopment

    Property Redevelopment For personal use only Against a backdrop of:  Dry Creek redevelopment deferral  Another harvest loss at Bowen due to weather  Completion of Cheetham refinery upgrade program Objectives to:  Undertake U d t k ffeasibility ibilit studies t di for f Lara L andd Moolap M l sal

  21. Slide 21: Total Shareholder Return - from July 2009

    Total Shareholder Return - from 1 July 2009 For personal use only $1.80 $1.60 $1.40 55% $1 20 $1.20 37% $1.00 $0.80 Ridley TSR 14% $0.60 16% Ridley Share Price $0.40 ASX 200 Accum. Index (based to Ridley) $0.20 Smallll Ords d Accum. Index d (based (b d to Ridley) dl ) $‐ Source: IRESS 21

  22. Slide 22: Ridley Corporation: A compelling proposition

    Ridley For personal use only Corporation A compelling proposition

  23. Slide 23: Appendix - Financials

    Ridley RidleyCorporation Corporation For personal use only Appendix - Financials 23

  24. Slide 24: Summary of Earnings - gross up of Joint Venture NPAT to EBIT

    Summary of Earnings - gross up of Joint Venture NPAT to EBIT For personal use only Profit & Loss FY08 FY09 FY10 FY11 Contribution to Earnings g A iP d t EBIT AgriProducts 15 0 15.0 24 4 24.4 29 0 29.0 24 9 24.9 Cheetham Salt EBIT (before JV’s) 17.9 12.9 16.8 14.2 Salt JV’s EBIT 10.3 10.1 10.5 10.3 S

  25. Slide 25: Summary of Earnings - normalised for Camilleri Stockfeeds acquisition

    Summary of Earnings - normalised for Camilleri Stockfeeds acquisition For personal use only Profit & Loss FY10 FY11 FY10(n) ( ) FY11(n) ( ) AgriProducts EBIT 29.0 24.9 36.0 29.3 Cheetham Salt EBIT (before JV’s) 16.8 14.2 16.8 14.2 Salt JV’s EBIT 10.5 10.3 10.5 10.3 Property Development Costs (0.6) (

  26. Slide 26: Segment Earnings - normalised for Camilleri & gross up of JV NPAT

    Segment Earnings - normalised for Camilleri & gross up of Joint Venture NPAT to EBIT For personal use only Segment FY10 FY11 FY10(n) FY11(n) EBIT AgriProducts 29.0 24.9 36.0 29.3 Salt JV’s s Stockfeeds acquisition Cheetham Salt (before JV’s) 16.8 10.5 14.2 10.3 16.8 10.5 14.2 10.3 Property Developme

  27. Slide 27: Balance Sheets

    Balance Sheets For personal use only Balance Sheet – in $m FY08 FY09 FY10 FY11 Total Current Assets 207.2 173.6 179.6 193.7 Total Current Liabilities 120.2 121.1 117.1 109.4 Net Current Assets 87.0 52.5 62.5 84.3 P Property, t plant l t & equipment i t 256 7 256.7 224 8 224.8 225 2 225.2 233 4 233.4

  28. Slide 28: Capital Expenditure

    Capital Expenditure For personal use only Items in $m Agri Salt Total FY10  Completion of Cheetham refinery FY11 FY11 FY11 rationalisation strategy in prior Bajool & Indonesian - - - 6.9 year Refineries  Except for $0.7m in FY11, ERP Other 2.2 0.5 2.7 3.9 capitalisation largely concluded in FY10.

  29. Slide 29: Cash flow – Receipts and Payments

    Cash flow – Receipts and Payments For personal use only Cash flow FY08 FY09 FY10 FY11 Receipts 902.4 922.5 804.3 812.9 Payments (894.5) (864.4) (754.9) (769.6) Salt Joint Venture distributions 7.4 7.6 5.4 5.4 Net interest paid (14 1) (14.1) (13 2) (13.2) (8 6) (8.6) (9 1) (9.1) Tax payments received

  30. Slide 30: Cash flow – from EBITDA

    Cash flow – from EBITDA For personal use only Cash flow in $m FY10 FY11 Cash flow in $m FY10 FY11 EBITDA - Agriproducts 36.6 33.5 Cash flow before acquisition (2.9) 2.6 EBITDA – Cheetham before salt JVs 21.3 19.9 Camilleri acquisition - (32.7) Salt Joint Venture NPAT 7.2 7.0 Net Cash flow (2.9) (30.

  31. Slide 31: Financial Ratios

    Financial Ratios For personal use only Financial FY09 FY10 FY11 * Includes JV EBIT, Cash 03 0.3 70 7.0 13 2 13.2 EBITDA and d Current Borrowings (2.0) (2.1) (1.9) Interest and is Non Current Borrowings (67.4) (76.9) (113.4) normalised to Net Debt 69.1 72.0 102.1 exclude Equity 276.2 285.2 291.0 impa

  32. Slide 32: Segment Summary

    Segment Summary For personal use only Segment Financial FY08 FY09 FY10 FY11 Tonnes (kt) 1,610 1,573 1,570 1,593 EBIT 15.0 24.4 29.0 24.9 Depreciation 7.6 6.5 7.6 8.6 EBITDA 22.6 30.9 36.6 33.5 EBITDA / tonne $14.04 $19.64 $23.31 $21.03 Funds Employed 156.8 129.9 135.7 167.4 ROFE 9 6% 9.6% 18 8% 18.8

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