Slide 1: FY23 1H Results: Delivering the Growth Plan
ASX: RIC FY23 1H RESULTS Delivering the Growth Plan Quinton Hildebrand MD & CEO Richard Betts CFO LEADING ANIMAL NUTRITION 16 February 2023 FY23 1H RESULTS | 16 February 2023 1
Slide 2: FY23 1H Financial Highlights
FY23 1H FINANCIAL HIGHLIGHTS EBITDA (underlying) $44.1m +13% YoY growth Ongoing Earnings Growth --- 13% YoY EBITDA (underlying) growth from ongoing operations NPAT(underlying) NPAT (reported) --- 20% YoY NPAT (underlying) growth* --- momentum underpinning both reporting sectors $21.0m $21.0m +20% Yo
Slide 3: Packaged Feeds & Ingredients Segment
PACKAGED FEEDS & INGREDIENTS SEGMENT FY23 1H FY22 1H • Improved returns from our Ingredient Recovery Variance% $m $m business due to: EBITDA before significant items 33.0 27.1 22% EBIT 28.0 21.8 28% • access to premium markets with differentiated Segment Assets 271.2 252.0 8% products. Segment Liabi
Slide 4: Bulk Stockfeeds Segment
BULK STOCKFEEDS SEGMENT FY23 1H FY22 1H Variance • Increased market share across all major species; ($m) ($m) % EBITDA before significant items 17.9 18.6 (4%) • 2% monogastric volume increase due to modest EBIT 10.3 10.6 (3%) poultry growth. Segment Assets 284.4 270.8 6% • 9% ruminant volume increas
Slide 5: Financial Results
FINANCIAL RESULTS LEADING ANIMAL NUTRITION 5
Slide 6: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result ($m) FY23 1H FY22 1H Analysis of result EBITDA – Packaged Feeds and Ingredients 33.0 27.1 See segment performance reporting – p3 EBITDA – Bulk Stockfeeds 17.9 18.6 See segment performance reporting – p4 EBITDA – Ongoing operations before significant items 50
Slide 7: Balance Sheet
BALANCE SHEET Balance sheet ($m) Dec 22 June 22 Analysis of balances and movements Balance is a function of timing of receipts / payments and draw down / repayment of bank Cash & cash equivalents 39.3 27.1 funding Decrease of inventory, held to manage the challenging supply chain in prior periods, t
Slide 8: Working Capital
WORKING CAPITAL Working Capital ($m) Dec 22 June 22 Prior strategic inventory build Current receivables 144.6 133.1 reduced in FY23 1H Inventory 111.0 117.1 120 Less Accounts Payables (218.3) (202.2) 100 Working Capital 37.3 48.0 80 • Inventory values decreased as the business shortened its 60 hold
Slide 9: Cash Management
CASH MANAGEMENT Consolidated Cash flow ($m) FY23 1H FY22 1H Analysis of movement Consolidated EBIT 31.5 33.3 Consolidated EBIT after significant items Depreciation and amortisation 12.6 13.2 Depreciation reduced following the sale of Westbury Consolidated EBITDA 44.1 46.5 EBITDA in the prior year in
Slide 10: Project Boost on Track
PROJECT BOOST ON TRACK Project Targets 18 MONTH SCORECARD (announced July 2021) New Capability De- bottlenecking Operational Efficiency Total to Date Projects approved (#) 4 10 16 30 $15m FY22-23 Targeted Capital Expenditure Approved spend $3.8m $3.4m $6.9m $14.1m Spend to date $1.3m $2.3m $4.6m $8.
Slide 11: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Delivered in 1H FY23: • Increase in operating result / effective cash conversion Operating Cash Flow • Maintenance / ESG capital at ~53% of depreciation Maintenance & ESG Capital (~60 – 80% of Depreciation) Inventory reduced as supply chain pressures alleviate and Workin
Slide 12: Growth Plan
GROWTH PLAN LEADING ANIMAL NUTRITION FY23 1H RESULTS | 16 February 2023 12
Slide 13: 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 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 effects of scale, extend our Infrastructure and Reliability • de-bottleneck si
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 capa
Slide 16: Resourcing Our FY23-FY25 Growth Plan
RESOURCING OUR FY23-FY25 GROWTH PLAN To sharpen the focus on execution of our Growth Plan we are transitioning our organisational structure. Key drivers for this change are to: • service growth in our monogastric volumes with a dedicated focus; • resource growth in our ruminant business; LEAD • grow
Slide 17: Bulk Stockfeeds: Delivering the Growth Plan
BULK STOCKFEEDS Delivering the Growth Plan To resource our future growth we are: 1. Restructuring our Bulk Stockfeeds customer service model into a dedicated: • Monogastric focus (5 feedmills); and • Ruminant focus (8 feedmills) This will increase our responsiveness to customers and drive growth opp
Slide 18: Packaged & Ingredients: Delivering on the Growth Plan
PACKAGED & INGREDIENTS Delivering on the Growth Plan To resource our future Packaged and Aqua growth we are: 1. Integrating our Packaged Product, Aqua and Ruminant businesses to: • align the packaged production facilities to the sales teams. • maximise value from our existing extrusion capacity. • d
Slide 19: 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 20: Outlook
OUTLOOK LEADING ANIMAL NUTRITION FY23 1H RESULTS | 16 February 2023 20
Slide 21: Outlook
OUTLOOK Second half earnings (EBITDA before significant items) are expected to improve on the previous corresponding period with the business well positioned to grow earnings through; • the momentum in the underlying business segments, • increased asset utilisation from de-bottlenecking solutions, a
Slide 22: Important notice and disclaimer
The material in this presentation is general background information about the activities of Ridley Corporation Limited (ACN 006 708 765) and its related entities (Ridley), current as at the date of this presentation, unless otherwise stated. The content is information given in summary form and does
Slide 23: Historical Financial Information
HISTORICAL FINANCIAL INFORMATION LEADING ANIMAL NUTRITION FY23 1H RESULTS | 16 February 2023 23
Slide 24: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result ($m) FY23 1H FY22 1H Analysis of Result FY21 1H FY20 1H FY19 1H EBITDA – Ongoing operations before significant items 50.8 45.7 Up $5.1m, or 11.2% on pcp 37.6 33.3 30.6 Corporate Costs (6.7) (6.5) Additional accruals for STI’s and salary increases (5.2) (5.8)
Slide 25: Balance Sheet - Assets
BALANCE SHEET - ASSETS Balance Sheet ($m) Dec 22 June 22 Analysis of balances Dec 21 June 21 June 20 Balance is a function of timing of receipts / payments and draw down / repayment Cash & cash equivalents 39.3 27.1 27.8 39.9 45.8 of bank funding. Decrease of inventory, held to manage the challengin
Slide 26: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Balance Sheet ($m) Dec 22 June 22 Analysis of balances Dec 21 June 21 June 20 Reflects timing of creditor payments within agreed trading terms and increased Current payables 218.3 202.2 173.4 165.5 161.3 commodity prices Current provisions 15.3 15.1 Includes current emplo
Slide 27: Cash Management
CASH MANAGEMENT Consolidated Cash flow ($m) FY23 1H FY22 1H Analysis of movement FY21 1H FY20 1H FY19 1H Consolidated EBIT 31.5 33.3 Consolidated EBIT after significant items 17.0 2.6 15.4 Depreciation and amortization 12.6 13.2 Depreciation reduced following the sale of Westbury 15.0 12.9 9.1 Conso
Slide 28: Net Debt, Gearing & Leverage
NET DEBT, GEARING & LEVERAGE Major capital projects ($m) FY23 1H FY22 1H Analysis of movements FY21 1H FY20 1H FY19 1H Development capital expenditure 8.5 3.4 Includes both de-bottlenecking and Boost projects 2.6 24.8 23.7 Maintenance capital expenditure 6.7 2.7 Prioritised in line with the capital
Slide 29: LEADING ANIMAL NUTRITION FY23 1H RESULTS 16 February 2023
LEADING ANIMAL NUTRITION FY23 1H RESULTS | 16 February 2023 29