Ridley Corporation Limited · ASX:RIC
Ridley — H1 FY2018 Earnings Presentation
24 slides from Ridley's earnings presentation, Feb 14, 2018
Slide 1: Investor Presentation – Half Year to 31 December 2017
RIDLEY CORPORATION LIMITED For personal use only INVESTOR PRESENTATION – HALF YEAR TO 31 DECEMBER 2017 1
Slide 2: Ridley half year highlights
RIDLEY Yamba-produced NovacqTM included in domestic commercial prawn diets. For personal use only Thailand NovacqTM production facility established and production commenced. Growth in Ruminant, Poultry and Pig sectors. Steady performance in Packaged Products. Positive recovery in Supplemen
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Operating half year result of $22.8m impacted by For personal use only Consolidated result 1H 1H 1H c.$2.6m of Huon inventory legacy issues. FY17 FY16 - in $m FY18 FY17 FY16 Growth recorded in Dairy, Poultry & Pig sectors. Steady performance in Packaged Products. EBIT - Op
Slide 4: Financial Highlights - Operations
FINANCIAL HIGHLIGHTS - OPERATIONS EBIT result for agribusiness of $22.8m - Dairy, Poultry, Pig and Supplements sector growth impacted by Rendering raw material supply issues in both NSW and Victoria and c.$2.6m of Huon inventory legacy issues. For personal use only Poultry - reliable year on yea
Slide 5: Sector Volume History
For personal use only SECTOR VOLUME HISTORY Sector FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 Long (kt) (kt) (kt) (kt) (kt) (kt) (kt) (kt) term Outlook 1H Poultry 602 1,155 1,044 1,013 1,019 872 933 900 Aqua-feed 16 35 54 65 50 42 47 50 Packaged 36 75 78 83 90 90 85 84 Dairy 124 226 284 291 275 251 260
Slide 6: Ridley Operations
RIDLEY OPERATIONS 2018: Bendigo & Tasmania Production of high NovacqTM included in Livestock For personal use only feedmill approval value PPC (protein domestic prawn diets processes in motion meal) commenced for summer season Yield / Performance Nutrition - “Our Mission is to Quality - DIFOTIS, Inn
Slide 7: Novacq
NOVACQTM For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2017 HALF YEAR 7
Slide 8: Novacq – Year Ahead of Original Plan
NOVACQTM – 1 YEAR AHEAD OF ORIGINAL PLAN CSIRO Licence Crustacean – All the world secured in FY17 except for China and Vietnam. For all other non-human species – all the world secured in FY17. For personal use only Implications of feeding 5% inclusion rate & Replacement of fish meal protein Improvem
Slide 9: Yamba - Last Six Months
YAMBA - LAST SIX MONTHS 7.5Ha of former prawn ponds in Yamba, NSW fully operational for NovacqTM production For personal use only Ongoing process of continuous improvement to further improve yield and drive down the cost of production. Power supply currently restricting aeration capacity - to addr
Slide 10: Chanthaburi Last Six Months
CHANTHABURI LAST SIX MONTHS Ten year lease - 14 former prawn ponds now lined and pond sets introduced to commence For personal use only local production of NovacqTM at Chanthaburi, with infrastructure established (power, concrete pad, site office, storage silos, access road, water intake, etc.). L
Slide 11: CSIRO Research Alliance - Last Six Months
CSIRO RESEARCH ALLIANCE - LAST SIX MONTHS Management Committee - fully functional, with meetings held at CSIRO facilities on Bribie Island and at For personal use only Clayton, Victoria. Science & Operational Committee - similarly functioning effectively, with detailed Position Descriptions in p
Slide 12: Property
PROPERTY For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2017 HALF YEAR 12
Slide 13: Property
PROPERTY MOOLAP coastal strategic framework PLAN – Designated the LARA For personal use only “Saltworks and Wetlands Precinct” Lot A (417.7 Ha) and Lot B (237 Ha) not part “Environmental with complementary tourism” for Crown land (shaded of subdivision & currently marketed for sale. green and lo
Slide 14: Consolidated Financials
CONSOLIDATED FINANCIALS For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2017 HALF YEAR 14
Slide 15: Balance Sheet - Assets
BALANCE SHEET - ASSETS Assets held for sale / Investment property - For personal use only Balance Sheet Dec Dec Dec June June formerly comprised equity accounted JV - in $m 2017 2016 2015 2017 2016 investment disposed of in January 2017. Assets held for sale - 2.3 33.5 - - Receivables - movement
Slide 16: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Payables - $5.0m reduction reflects a For personal use only Balance Sheet Dec Dec Dec June June 2017 2016 2015 2017 2016 $9.4m lower drawdown of trade payables - in $m facility from $48.6m to $39.2m & timing of payments within trading terms. Current payables 143.6 123.0
Slide 17: Cash Flow
CASH FLOW Consolidated Cash flow - 1H 1H 1H FY17 FY16 In another challenging trading period, a For personal use only in $m FY18 FY17 FY16 steady consolidated EBITDA of $27.7m. Consolidated EBITDA 27.7 26.9 27.9 54.4 56.1 Maintenance capex of $8.3m contained Movement in working capital (3.8) (26.
Slide 18: Outlook
OUTLOOK For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2017 HALF YEAR 18
Slide 19: Outlook – Animal Nutrition Solutions
OUTLOOK– ANIMAL NUTRITION SOLUTIONS Poultry and Pig - a full year of operation of the new Lara feedmill to contribute positively to poultry and pig performance in FY18 through operational efficiencies and winning new business. Construction of new Central For personal use only Victorian feedmill to
Slide 20: Central Victorian Feedmill
CENTRAL VICTORIAN FEEDMILL xxxxxx For personal use only xxx xxx xxxxxx New poultry and pig feed mill announced in September 2017, with land acquisition under contract and planning approval process well underway. Underpinned by 10 year supply agreement with Hazeldene’s Chickens, with capacity to
Slide 21: Tasmanian Extrusion Plant
TASMANIAN EXTRUSION PLANT For personal use only New state of the art Extrusion Plant announced in January 2017, with land acquisition completed. All development approvals received January 2018; commence on site in March 2018. World class extrusion facility to service all aquafeed species, to t
Slide 22: Outlook - Novel Feed Ingredient Novacq
OUTLOOK - NOVEL FEED INGREDIENT NOVACQTM NovacqTM Australia For personal use only optimise dewatering and drying process using preferred technology solution; increase power supply to improve aeration and optimise pond yield; establish pricing model for 2018 Australian growing season based on
Slide 23: Outlook - Strategy
OUTLOOK - STRATEGY Lara feedmill - Commercial Feed team to execute plan to secure new poultry and For personal use only pig volume based on customer value proposition for the region and world class facility. New plant and feedmill - construction of the new Tasmanian Extrusion Plant to commence n
Slide 24: Contact Details
CONTACT DETAILS For personal use only Tim Hart Managing Director and Chief Executive Officer Email: Tim.Hart@ridley.com.au Tel: +61 3 8624 6500 Fax: +61 3 8624 6414 Mobile: + 61 404 480 542 Ridley Corporation Limited ABN 33 006 708 765 Level 4, 565 Bourke Street Melbourne, VIC. 3000 Australia www.ri