Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Shareholder Meeting (February 2007)
39 slides from Graincorp Limited Class A's shareholder meeting presentation, Feb 22, 2007
Slide 1: GrainCorp Annual General Meeting February 2007
GrainCorp Annual General Meeting 22 February 2007 GrainCo
Slide 2: Welcome by the Chairman
Welcome by the Chairman Mr Don Taylor Chairman GrainCorp Limited :
Slide 3: Attendance and Apologies
Attendance and Apologies / ©
Slide 4: Minutes of previous meeting February 2006
Minutes of previous meeting 22 February 2006 : © :
Slide 5: Rules for participation
Rules for participation Shareholders and Proxy Holders must state their name and show their voting form to be entitled to speak at the meeting :
Slide 6: Chairman's address
Chairman’s address Copies of the Chairman’s address will be available at the back of the room at the conclusion of the meeting |
Slide 7: FY06 results & highlights
FY06 results & highlights Net profit after tax ‘$39.5m_ 5m_ | $13.5m 4 193% (before RPS distribution) | epove $34 orn forecast Grain receivais ex tarm 10. om tonnes 93mt A 16% Exported grain a 3m tonnes _ . 47mt ®& 13% Tonnes traded 3 Amitonnes | 2am 11% Allied Mills co 6m | 4.3m 77% JV contribution
Slide 8: History of Industry Consolidation
History of Industry Consolid ig, Processing, Merchandisin: Year 19911992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 [Ee =} of Megan } [GHA GENSW. of econ SranCorp. -—>_GrainCorp Bunge Mills : CO Sorghum Board ]) [Groce PINE O ENSW Barney Bcord |] | [SSWGBE ] NSW. Oats Board = N
Slide 9: Questions
Questions Gralnlorp z
Slide 10: Ordinary Business — voting instructions
Ordinary Business — voting instructions The Chairman will * state each resolution - allow for questions on each resolution ¢ show the proxy votes ¢ put the resolution to the floor by a show of hands. :
Slide 11: Item 1. Financial reports and statements
Item 1. Financial reports and statements Shareholder questions Questions to auditor Remuneration Report |
Slide 12: Questions from shareholders
Questions from shareholders Board 1. Why does GrainCorp’s board have more directors than other companies and therefore incur additional costs? The director's payments and fees seem excessive - how are they determined? 2. How is the remuneration and nomination committee appointed? Remuneration 3. The
Slide 13: Questions
Questions Silos and infrastructure maintenance 5. There is concern about the country storage network and what will happen to sites that are not in use. What are the future plans for the network, including capital expenditure? How is the capital expenditure program determined and what did it deliver
Slide 14: Questions
Questions 8. Would GrainCorp consider trading other commodities? Financial 9. What cost management programs are in place? 10. Why is there a difference between the control and equity in the Allied Mills joint venture? 11. What is GrainCorp’s dividend policy and should this be varied given seasonal i
Slide 15: Questions
Questions Gralnlorp z
Slide 16: Item 2. Adoption of Remuneration Report
Item 2. Adoption of Remuneration Report “That the Remuneration Report as set out in the Report of the Directors be adopted” |
Slide 17: Item 2. Adoption of Remuneration Report
Item 2. Adoption of Remuneration Report Remuneration Report Proxy Votes FOR AGAINST UNDIRECTED ABSTAIN TOTAL RESOLUTION 1 7,466,026 863,296 1,015,715 290,798 9,635,835 % vote of available 13.08 1.81 1.78 0.51 CHAIRMAN 6,542,998 817,988 640,882 290,798 §&,292,666 VOTING (included in total above)* Gra
Slide 18: Item 2. Adoption of Remuneration Report
Item 2. Adoption of Remuneration Report Questions from the floor of the Annual General Meeting :
Slide 19: Item 2. Adoption of Remuneration Report
Item 2. Adoption of Remuneration Report “That the Remuneration Report as set out in the Report of the Directors be adopted” |
Slide 20: Item 3. Election of Directors
Item 3. Election of Directors Gralnlorp z
Slide 21: Item 3. Resolution 3a Election of Directors
ltem 3. Resolution 3a Election of Directors “That Mr Don Taylor be elected as Elected Director of the Company” :
Slide 22: Item 3. Election of Directors
Item 3. Election of Directors Election of Mr Don Taylor Proxy Votes FOR AGAINST UNDIRECTED ABSTAIN TOTAL RESOLUTION 1 7,994,221 519,640 962,676 159,298 9,635,835 % vote of available 14.01 0.91 1.69 0.28 CHAIRMAN 7,096,301 438,666 596,993 158,978 8,290,938 VOTING (included in total above)* Grantor i
Slide 23: Item 3. Resolution 3b Election of Directors
Item 3. Resolution 3b Election of Directors “That Mr David Trebeck be elected as Elected Director of the Company” :
Slide 24: Item 3. Election of Director
Item 3. Election of Director Election of Mir David Trebeck Proxy Votes FOR AGAINST UNDIRECTED ABSTAIN TOTAL RESOLUTION 1 7,903,207 582,343 991,308 158,977 9,635,835 % vote of available 13.88 1.02 1.74 0.28 CHAIRMAN 7,003,122 §02,234 626,925 158,657 8,290,938 VOTING (included in total above)* Grantor
Slide 25: Business presentation
Business presentation Tom Keene Managing Director 22 February 2007 GrainCorp —
Slide 26: Company overview
Company overview * Infrastructure * 250 silos * 9 port terminals * 21 million tonne capacity * Customers * 10,000 grain growers * Over 100 end users and traders ¢ Dynamic grain market ¢ Market share « 55% storage on east coast * 20% grain trading « 50% human consumption flour ©
Slide 27: Operational highlights
Operational highlights Financial * $39.5 million profit (NPAT) Productivity * $10 million p.a. cost savings Growth * Wheat Australia - 350,000 tonnes to Iraq * Allied Mills strong performance + Domestic & international grain marketing + Ethanol agreement Strategic Plan 2006-2009 ©)
Slide 28: The challenges
The challenges ¢ Variable grain receivals and earnings ¢ Changing markets » Increased domestic * Decreased exports * Stable production ¢« Competition |
Slide 29: Support businesses
Support businesses Network Plus additional productivity Domestic EBITDA from market fe © deregulation eae | «GMOs $114.0m +$26m new EBITDA Gaintorp Base / Not to scale
Slide 30: Low cost business model
Low cost business mode * Lower fixed cost base ° Staff reductions « Removed management layer * Consolidated storage network ¢ Centralised common services ° Administration & logistics “Streamlined business processes ¢ integrated IT platform : © :
Slide 31: Activities
Activities: - Extend service and product range - Improved customer service - . . . Gantop - Secure business with domestic feed users
Slide 32: Increase network productivity
Increase network oroductivit Focus: Targeted capex & cost reduction Activities: - Rail capabilities - Storage receival/outload capability - Business systems development
Slide 33: Increase port earnings
Increase port earnings Focus: Asset utilisation Activities: - Co-location - Increase volume of existing commodities - Secure new bulk, dry commodities for export or import .
Slide 34: Allied Mills
Allied Mills Focus: Earnings growth Allied Mills contribution to GNC Construction of new mill Grow market opportunities Reduce cost base Gralnlorp 2005 i @ interest @ Profit interes tax after tax
Slide 35: Expand trading
Expand tradine Focus: Geographic expansion Activities: - International opportunities - Capitalise regulatory changes - Expand in WA & SA - Expand non grain trading eg wool FY06 international trading . Vietnam 3% Grantor z
Slide 36: Outlook 2006/2007
Outlook 2006/2007 Significant drought impact — $20-30 million loss — remain cash flow positive Receivals Strategies winter 1. Cost management in S&H summer 2-4 mi lorecast 2.1 million actual 300-500,000 ~ Labour ~ Capex — Network efficiency —~ Corporate overhead reduction 2. Revenue generation « Tra
Slide 37: Support businesses
Support ROE 2 10% businesses Profit = $40m Domestic market share 250% Ports Network productivity Domestic market $140.0m Fyog sue «— +$26m new EBITDA —— Not to scale Plus additional EBITDA from « deregulation «GMOs Gralnlorp z
Slide 38: Questions
Questions Gralnlorp z
Slide 39: GrainCorp Annual General Meeting February 2007
GrainCorp Annual General Meeting 22 February 2007 GrainCo