Ricegrowers Ltd. Class B · ASX:SGLLV
Ricegrowers Ltd. Class B — SunRice — 2012 RGA Conference
29 slides from Ricegrowers Ltd. Class B's conference presentation, Aug 9, 2012
Slide 1: 2012 RGA Conference
2012 RGA Conference Rob Gordon, CEO, SunRice “The return of Australian rice to the world” Thursday 9th August 2012
Slide 2: SunRice today
SunRice today • Return of the Australian rice industry • Global rice market challenges and opportunities • Our strategic outlook • Roadmap for growth 3
Slide 3: Australian rice industry recovery
Australian rice industry recovery • 963,000 tonnes harvested • 11,427 truck movements in one week • 1,500 farms
Slide 4: Reactivation of operations footprint
Reactivation of operations footprint • $2.5 million Deniliquin Mill reactivation • 450 people employed across the company • Deniliquin to Melbourne rail link re-established • Coleambally Mill fully operational in November 2012
Slide 5: Returning to the world
Returning to the world • 8,000 tonnes sent to port weekly • Close to 400,000 tonnes exported • One of the top five exporters of containers through the Port of Melbourne
Slide 6: Outstanding export sales
Outstanding export sales 10% 65% 40% 115% Sales volume increases from 2009 –2011
Slide 7: Beyond re-establishment
Beyond re-establishment
Slide 8: Strategic outlook
x tegic outloo ~ Stra
Slide 9: Global outlook for rice
Global outlook for rice Million tonnes milled rice 600 Additional rice needed: 550 116 million tonnes by 2035 500 450 1.3% annual growth 2010 global rice production 400 350 300 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 27 29 31 33 35 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20
Slide 10: Global supply and demand
Global supply and demand Long grain comprises 85% of total rice production and 92% of globally traded rice. Japonica comprises 15% and 8% respectively Total World Production (464 million MT) Total Rice Exports (36 million MT) Japonica 71 MMT (15%) Japonica 3 MMT (8%) Long Grain Long Grain 393 MMT (8
Slide 11: Emerging Japonica grain exporters
Emerging Japonica grain exporters Traditional Japonica Exporters Emerging Exporters 1. US 970,000 T 1. Morocco – investment 2. Egypt 600,000 T (but over the last decade has current ban on exports) increased volumes 3. Australia 450,000 T 2. Sudan – Nile water & UAE investment 4. EU 245,000 T 3. Russ
Slide 12: Medium grain yields
Medium grain yields China India Source: US Department of Agriculture 13
Slide 13: Medium grain pricing linked to Australian crop size
14 US $ FOB per MT $- $1,000.00 $1,200.00 $1,400.00 $200.00 $400.00 $600.00 $800.00 01 May 98 01 Sep 98 Crop98 01 Jan 99 01 May 99 01 Sep 99 01 Jan 00 Crop99 01 May 00 crop size 01 Sep 00 Crop00 01 Jan 01 01 May 01 01 Sep 01 Crop01 01 Jan 02 01 May 02 01 Sep 02 01 Jan 03 Crop02 01 May 03 01 Sep 03 0
Slide 14: Effect of crop size on paddy price
Effect of crop size on paddy price High Premium consumer markets & products Sales Price $/t Mid contribution markets Lower value Medium commodity markets Paddy Price Paddy Price Low 0 Small Medium Large Very Large Crop Size Ideal crop size < 1 million tonnes Incremental volumes sold into lower contr
Slide 15: USA Medium Grain milled rice
US $ FOB per MT $150 $350 $550 $750 $950 $1,150 $1,350 Feb 00 May 00 Aug 00 Nov 00 Feb 01 May 01 Aug 01 Nov 01 Feb 02 May 02 Aug 02 Nov 02 Feb 03 May 03 Aug 03 Nov 03 Feb 04 May 04 Aug 04 Nov 04 Feb 05 May 05 Aug 05 Nov 05 Feb 06 May 06 Aug 06 Nov 06 Feb 07 May 07 Aug 07 Nov 07 Feb 08 USA Medium Gra
Slide 16: Long Grain milled rice
US$ FOB per MT $150 $350 $550 $750 $950 $1,150 $1,350 Feb 00 May 00 Aug 00 Nov 00 Feb 01 May 01 Aug 01 Nov 01 Feb 02 May 02 Aug 02 Nov 02 Feb 03 May 03 Aug 03 Nov 03 Feb 04 May 04 Aug 04 Nov 04 Feb 05 May 05 Aug 05 Nov 05 Long Grain milled rice Feb 06 May 06 Aug 06 Nov 06 Feb 07 May 07 Aug 07 Nov 07
Slide 17: Outlook in summary
Outlook in summary • Increasing global rice consumption • Some opportunities in premium markets • Tough pricing environment, impacted by the strong AUD, rising electricity prices and other factors 18
Slide 18: Roadmap for growth
Roadmap for growth • Research and development • Operations and supply chain • Consumer brands and innovation 19
Slide 19: Capital investment
Capital investment 35,000 1,800 1,600 30,000 1,400 25,000 1,200 20,000 1,000 Capital Spend / Crop Size Depreciation (thousand ($ thousands) tonnes) 800 15,000 600 10,000 Depreciation double capital spend 400 over the period 2003-2011 5,000 200 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20
Slide 20: Balancing varieties and volume
Balancing varieties and volume Retail and Food Service 21
Slide 21: Meeting the market
Meeting the market The biggest selling Consumers are varietal in Australia is moving to more Jasmine aromatic varieties
Slide 22: Role of research and development
Role of research and development • Investment in breeding programs to increase yields for long, short and fragrant varieties 23
Slide 23: Consumer research in Australia shows rice is positioned for growth
Consumer research in Australia shows rice is positioned for growth
Slide 24: Health and wellbeing
Health and wellbeing • Australians taking control of food choices • Rice is a natural fit for the health and wellbeing space • Low GI Brown Rice just launched
Slide 25: Exotic and adventurous
Exotic and adventurous • Consumers experimenting with their cooking experiences • Black Rice launched • Premium Australian Jasmine Rice launched
Slide 26: Convenience
Convenience • Ready when you are • Making lunchtime an occasion • Healthy alternative for a quick dinner 27
Slide 27: Opportunities
Opportunities • Leverage trends • Increase our relevance to consumers • Target high margin opportunities and market share • Invest in innovation and brands 28
Slide 28: Conclusion
Conclusion • SunRice in good shape • Positive outlook • Ready to face future challenges 29
Slide 29: Questions
Questions