Ricegrowers Ltd. Class B · ASX:SGLLV
Ricegrowers Ltd. Class B — Shareholder Meeting (August 2016)
16 slides from Ricegrowers Ltd. Class B's shareholder meeting presentation, Aug 5, 2016
Slide 1: 2016 SunRice Update
2016 SunRice Update Laurie Arthur, SunRice Chairman RGA Annual General Meeting 5 August 2016
Slide 2: Agenda
Agenda • FY 16 Performance • Growth Strategy Update • Key Focus Areas in FY17 • FY17 Outlook & Global Market • Capital Restructure Update • Vesting/SEEL Review • Questions 2
Slide 3: Another Strong Performance in FY16
Another Strong Performance in FY16 REVENUE $1.27 1.9% billion increase NET PROFIT AFTER TAX $52.0 5.8% million increase DIVIDEND PER B CLASS SHARE 33.0 6.5% cents increase PADDY PRICE $403.60 2.3% Medium Grain (Reiziq) increase 3
Slide 4: Strategy Continues to Deliver Results
Strategy Continues to Deliver Results • FY16 result: - Demonstrated that increased revenue scale and profitability levels in FY15 have been maintained - In line with expectations: continued track record of keeping market accurately informed - $288 million paid to growers for C15 • Continued growth o
Slide 5: Track Record of Delivery
Track Record of Delivery • Strong track record of accurate market guidance for A and B Class Shareholders • Demonstrated ability to balance the needs of both shareholder classes since converting to a company in 2005 • Between FY11-FY16, for B Class Shares: - 278% increase in earnings per share - 83%
Slide 6: Growth Strategy has Delivered Results
Growth Strategy has Delivered Results NSV (A$ Billion) NPAT (A$m) 1.40 55 52.00 49.20 1.27 50 1.30 1.25 45 1.20 1.15 40 36.00 1.07 35 1.10 1.00 30 3yr CAGR of 6% 33.50 1.00 3yr CAGR of 13% 25 22.70 0.90 20 APR 12 APR 13 APR 14 APR 15 APR 16 APR 12 APR 13 APR 14 APR 15 APR 16 Share Price ($) & TSR NT
Slide 7: Key Focus Areas in FY17
Key Focus Areas in FY17 • Pursue growth in Asian branded markets, including China market entry • Leverage identified global trends, especially those in emerging consumer markets - Preference for ‘healthy’ (low GI) - Meal convenience (microwave) - Sushi revolution • Working capital management - Manag
Slide 8: FY17 (C16) Outlook
FY17 (C16) Outlook • Challenging trading environment in world rice markets • Impacts in dairy industry affecting domestic sales for CopRice • Potential PNG issues being monitored: - Weakening economy, with poor outlook - Increasing in-market competition - Exchange rate movements (Kina has declined 2
Slide 9: C16 Global Pricing – Medium Grain
• In June, FAO’s Japonica Rice C16 Global pricing – Price Index declined by 7 points to Medium Grain 223 points due to weakness in the California short/medium grain market. 21-Month Cash Paddy Prices Between January – June, the FAO Cash Rice Network / Cal Rice Exchange 650 Index had declined by 13%
Slide 10: C16 Global Pricing – Long Grain
• El Nino weather pattern has C16 Global pricing – Long Grain ended and there are predications of 60% likelihood of La Nina building over 2016, which will be associated with heavy rainfall Thai Long Grain Pricing - US $ / mt benefitting both main and 700 secondary season crops this 600 year. 500 • F
Slide 11: World Market Outlook
World Market Outlook • Overall, a more challenging trading environment, particularly for Medium Grain (MG) as prices come off • Conversely, Thailand’s drought is driving Long Grain (LG) prices up - Could benefit performance in markets where MG and LG are direct competitors • SunRice’s intensifying g
Slide 12: Capital Restructure Update
Capital Restructure Update • The Capital Restructure is designed to equip SunRice and all growers and shareholders for the future, enabling the company to: - Invest for growth; - Better manage business risk; and - Have greater resilience to benefit all growers and shareholders • Significant time and
Slide 13: Capital Restructure Update
Capital Restructure Update • Timing continues to be impacted by developments with a partner that is reviewing it all of its JV arrangements • We will be progressing with the Capital Restructure once the JV issue is resolved • Timetable for vote will also take into account the need to re-establish th
Slide 14: Rice Vesting/SEEL Review
Rice Vesting/SEEL Review • Fundamental to NSW rice industry success - Vesting and SEEL maintain a competitive advantage for NSW-grown rice • Allows consolidation of export channels, maximisation of sales and marketing scale and supply chain efficiencies - NSW rice growers compete in international ma
Slide 15: Summary
Summary • FY16 result underpinned by the continued growth of branded sales and operational improvements • Continue to deliver on our strategy for growth across several markets and to secure non-Australian sources of supply • FY17 will be challenging given several issues in PNG, current global market
Slide 16: Questions
Questions 16
SunRice (Ricegrowers Limited) — Shareholder Meeting (August 2016) on 6ix