Ridley Corporation Limited · ASX:RIC
Ridley — H1 FY2013 Earnings Presentation
28 slides from Ridley's earnings presentation, Feb 20, 2013
Slide 1: Ridley 31 Dec 2012 Half Year Results Presentation
RIDLEY 31 DEC 2012 HALF YEAR RESULTS PRESENTATION For personal use only RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 2: Steps to Unlock Shareholder Value
STEPS TO UNLOCK SHAREHOLDER VALUE RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Focus on optimising business and structure to deliver shareholder value Execution of transaction opportunity - outright sale of Cheetham Salt business, excluding Dry Creek operation
Slide 3: Stable Underlying Result
STABLE UNDERLYING RESULT RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only $12.2 million net profit from operations for period before non-recurring transactions - up $0.3m on prior period (see following slide) Robust operations - diversification of business sectors p
Slide 4: Financial Highlights - Analysis
FINANCIAL HIGHLIGHTS - ANALYSIS RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Consolidated result - in $m 1H 1H Net profit from Operations of $12.2m for FY13 FY12 period up from $11.9m EBIT - AgriProducts 15.5 14.9 AgriProducts result of $15.5m, up $0.6m, EBIT –
Slide 5: Ridley AgriProducts Results Presentation
RIDLEY AGRIPRODUCTS RESULTS PRESENTATION For personal use only RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 6: Highlights
HIGHLIGHTS RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Animal meals - acquisition on 31 December 2012 of Victoria’s leading rendering business Animal meals - acquisition of business to import tuna meal from pacific Islands import business EBIT result of $15.5
Slide 7: Sector Analysis
SECTOR ANALYSIS RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Sector 1H 1H Outlook Poultry: loss of sales volume to competitor offset FY13 FY12 by improved margin through cycle of rising raw (kt) (kt) material; outlook remains positive based on projected bird numbe
Slide 8: Financial Summary
FINANCIAL SUMMARY For personal use only RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Agriproducts ($m) 1H 1H FY13 FY12 EBIT & EBITDA - consistent overall Sales ($) 341.1 322.3 despite significant movements within EBIT 15.5 14.9 sectors Depreciation & Amortisation (DA) 4.3 4.3 Net wor
Slide 9: Outlook
OUTLOOK RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Macro Economic Environment Concentration of Ridley presence into key regional growth areas, with the new mill at Pakenham to service the Gippsland Dairy sector Restoration of confidence required in the Dairy s
Slide 10: Cheetham Salt Results Presentation
CHEETHAM SALT RESULTS PRESENTATION For personal use only RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 11: Highlights
HIGHLIGHTS RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only EBIT result excluding JVs of $6.2m - domestic base business up $0.3m offset by Japan ($0.1m) and Indonesia ($0.5m) Indonesia - down $0.5m on last year due to delay in receipt of import licence and margin im
Slide 12: Sector Analysis
SECTOR ANALYSIS RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Sector 1H 1H Outlook Soda Ash: excluded from Cheetham Salt sale FY13 FY12 transaction and expected to cease at 30 June 2013 (kt) (kt) Soda Ash 261 261 Chemical: slightly higher demand from key chlor-al
Slide 13: Financial Summary
FINANCIAL SUMMARY RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Cheetham (A$m) - 1H FY13 Dec 12 Dec 12 Dec 11 Inc DC Dry Creek Operations pre JVs - base Sales ($) 56.4 4.9 56.0 business up $0.3m but overall down by $0.3m due to Japan ($0.1m) and EBIT (excl. JV NPAT
Slide 14: Joint Ventures
JOINT VENTURES RIDLEY AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK For personal use only Cheetham Joint Ventures Dec Dec JVs disclosed in Income (JVs) in A$m 2012 2011 Statement as equity accounted NPAT of $3.6m, EBITDA 5.8 5.5 100% repatriated by way of Depreciation and amortisation (0.6) (0.4) divid
Slide 15: Outlook
OUTLOOK RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Ridley Outlook for Cheetham Salt Actively working through all Conditions Precedent to achieve a 28 February 2013 Completion Retention of Dry Creek by Ridley necessitates active engagement with Penrice to achie
Slide 16: Property
PROPERTY RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Lara and Moolap Federal Environment Minister has confirmed the Project is a ‘controlled action’ requiring assessment under the Environment Protection Biodiversity Conservation Act 1999. State Planning Minis
Slide 17: Financial Highlights - Statutory
FINANCIAL HIGHLIGHTS - STATUTORY RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Consolidated result - in $m 1H 1H Net profit from comparable operations FY13 FY12 of $12.5m consistent with prior period Operating profit before tax, 12.5 12.6 $12.6m finance, transactio
Slide 18: Transaction Costs
TRANSACTION COSTS RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Consolidated result - in $’000 1H FY13 Acquisition: Acquisition of rendering business: Stamp duty paid in all relevant states of operation Stamp duty 2,417 Insurance provides surety on vendor Legal,
Slide 19: Balance Sheet - Assets
BALANCE SHEET - ASSETS RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Increase in Assets held for sale reflects Balance Sheet Dec June as a single line item, $155.5m of total - in $m 2012 2012 Cheetham Salt assets held for sale at Dec # 2012 Assets held for sale 158
Slide 20: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only $11.5m of Cheetham liabilities held for Balance Sheet Dec June sale - in $m 2012 2012 Current borrowings of $80m reflects # minimum bank facility repayment from Liabilities held for sale 11
Slide 21: Working Capital
WORKING CAPITAL RIDLEY AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK For personal use only Working Capital Dec June Increase in cash reflects timing of - in $m 2012 2012 half year end receipts Cash 22.8 7.2 Trade Debtors 74.1 80.9 Decreases in trade debtors & inventory reflect exclusion of Other Debt
Slide 22: Capital Expenditure
CAPITAL EXPENDITURE RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Items - in $m Agri Salt Total Other 1.4 2.5 3.9 Other includes NSW rendering capacity increase and salt Pakenham Mill 4.5 - 4.5 palletiser/bagger heads Total Devt Capex 5.9 2.5 8.4 New Pakenham mil
Slide 23: Shareholders' Funds
SHAREHOLDERS’ FUNDS RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Items - in $m Total $12.2m Change of Accounting Policy for Land and Buildings Reported Equity at 30 June 2012 290.5 from fair value to cost , restating prior period balance Accounting Policy Change (
Slide 24: Cash Flow
CASH FLOW RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Cash flow - in $m Dec Dec June Consistent EBITDA result 2012 2011 2012 Working capital movement EBITDA (inc JV NPAT’s) 28.1 27.7 50.1 includes Cheetham Salt Working capital movement (2.0) (14.7) 14.8 balan
Slide 25: Financial Ratios
FINANCIAL RATIOS RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Financial KPI’s Dec Dec June Net debt and Gearing temporarily 2012 2011 2012 increased by rendering acquisition on 31 Dec 2012. Will reduce by minimum Net Debt - in $m 183.8 120.0 98.2 $80m of Cheetham
Slide 26: Outlook - Operations
OUTLOOK - OPERATIONS RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Second half year - 2 months of Cheetham Salt results, 6 months of both Dry Creek and newly acquired rendering facility operations New mill at Pakenham to facilitate implementation of Gippsland Dai
Slide 27: Outlook - Structure
OUTLOOK - STRUCTURE RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Completion of Cheetham Salt sale at end Feb 2013 Retire minimum $80m of debt to restore sustainable gearing Resolution of shareholder distribution Take steps to protect Ridley position in light
Slide 28: Ridley - The Future
RIDLEY – THE FUTURE RIDLEY AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK For personal use only Focussed agribusiness Australia’s premier supplier of nutrients, ingredients and feed for the safe and sustainable production of food from livestock Organic growth and consolidation opportunities