Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Credit Suisse Asian Investment Conference 2015
23 slides from Graincorp Limited Class A's conference presentation, Mar 26, 2015
Slide 1: Investor Presentation ASX cover letter
26 March 2015 The Manager For personal use only Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 GRAINCORP LIMITED: GNC INVESTOR PRESENTATION The attached Investor Presentation will be used by GrainCorp for the purpose of investor meetings at the Credit Suisse Asian Investme
Slide 2: Investor Presentation March 2015
Investor Presentation March 2015 For personal use only
Slide 3: Disclaimer
Disclaimer For personal use only This presentation includes both information that is historical in character and information that consists of forward looking statements. Forward looking statements are not based on historical facts, but are based on current expectations of future results or events. T
Slide 4: Strong platform created though focus on corporate objectives
Strong platform created though focus on corporate objectives For personal use only Manage variability Deliver growth Improve returns EBITDA by segment(1) $M EBITDA and NPAT(2) $M Return on Equity % FY09 FY14 6yr Avg FY09Malt Annual ROE % 0% Allied 304 13% 293 Rolling 5 yr avg ROE % 14.4% Marketing 1
Slide 5: Earnings profile highlighting benefits of diversification along the grain chain
Earnings profile highlighting benefits of diversification along the grain chain For personal use only EBITDA(1) $M NPAT(1) $M Malt Fiscal 1H Oils 414 395 Fiscal 2H 205 Allied Marketing 350 172 175 S&L 293 83 212 66 84 95 160 80 63 34 28 122 31 109 88 53 61 32 FY09 FY10 FY11 FY12 FY13 FY14 FY09 FY10
Slide 6: Commitment to values driving positive outcomes
Commitment to values driving positive outcomes For personal use only Safety Performance(1) Employee Engagement Values 12.0 88% 10.7 59% 7.0 FY12 FY13 FY14 Engagement Score Participation Rate Safety People • 34% reduction in Lost Time Injury • Sustained employee engagement Frequency Rate(1) across th
Slide 7: Strength of our integrated business model
Strength of our integrated business model For personal use only Global grains traded(1) • Wheat, barley, canola → representing Other 35% of global traded grains and 8% Wheat 30% oilseeds Three core Corn grains • Focus on “drier climate” grains where 23% Barley we have a comparative advantage 3% thro
Slide 8: Grain storage and logistics assets and capabilities
Grain storage and logistics assets and capabilities For personal use only Our eastern Australia grain network Assets and capabilities • Project Regeneration announced June 2014 focussed investment to reduce complexity and better serve customer – targeting $5/t reduced rail costs • Investment in ne
Slide 9: Global portfolio of grain processing and complementary facilities
Global portfolio of grain processing and complementary facilities For personal use only • Produce ~35% of Australia’s malt • Produce ~35% of Australia's flour(1) • Produce ~40% of Australia’s canola oil and ~40% of Australasia’s refined edible oil • Import and export ~40% of Australasia’s edible oil
Slide 10: Significant program of strategic initiatives across the business
Significant program of strategic initiatives across the business For personal use only Storage & Logistics Marketing Malt Oils Customer Operations Network service Customer excellence footprint focussed growth Network Liquid Initiatives Non-grain rationalisation Global model terminals opportunities a
Slide 11: Strong and flexible balance sheet
Strong and flexible balance sheet For personal use only Core Debt(1) $M • Core debt increasing as expected and in line with Short-term 89 debt less 9 79 71 Marketing implementation of strategic and Oils 132 26 inventories initiatives 43 565 558 595 593 601 Long-term • FY14 Core Debt(1) of $483M 342
Slide 12: Near-term focus
Near-term focus For personal use only Strategic initiatives • Delivering the program of strategic initiatives previously announced • Project Regeneration fundamental to long-term performance of Storage & Logistics • Flexibility to refine the plan if necessary and enhance capabilities further Capital
Slide 13: FY15 Outlook & Guidance
FY15 Outlook & Guidance For personal use only
Slide 14: Grains outlook – lower grain production eastern Australia
Grains outlook – lower grain production eastern Australia For personal use only Market fundamentals GrainCorp FY15 outlook • Eastern Australian crop production estimate of • Carry-in: 1.9mmt significantly lower than recent 16.2mmt(1) is below normal (FY14: 17.2mmt) years (FY14: 2.3mmt) • Domestic de
Slide 15: Below normal grain production resulting in lower S&L volumes
Below normal grain production resulting in lower S&L volumes For personal use only FY15 FY15 Drivers (mmt) FY14 FY15 Outlook YTD(1) Outlook Eastern Australia Grain • Grain production forecast below normal and 17.2 16.2(2) lower than prior year Production • Below average and lower than recent years G
Slide 16: Processing outlook – well placed through strong competitive position
Processing outlook – well placed through strong competitive position For personal use only Market fundamentals GrainCorp FY15 outlook • Global barley crop production ~140mmt(1) • Forward sales of 1.2mmt YTD (FY14: 145mmt) • Malt sales volume: ~1.27mmt • Weather related barley production issues in •
Slide 17: FY15 Earnings Guidance
FY15 Earnings Guidance For personal use only EBITDA NPAT • EBITDA (before significant items): • Underlying NPAT (before significant items): Guidance $240M – $270M $45M – $60M • Includes 60% share of Allied Mills NPAT before • Depreciation & Amortisation: ~$135M significant items • Tax: ~26% Assumpti
Slide 18: Winter crop post harvest review
Winter crop post harvest review For personal use only Production & Receivals • Lower than average grain production in northern regions • Winter receivals of 6.7mmt to end February, representing upcountry market share of ~46% good performance given smaller crop • Export program later than expected
Slide 19: Appendices
For personal use only Appendices
Slide 20: Commodities inventory funded with specific commodity inventory facilities
Commodities inventory funded with specific commodity inventory facilities For personal use only Commodities inventory(1) ($M) Marketing and Oilseed funding strategy Marketing & Oils grain and oilseed inventory Short-term debt 829 792 • Marketing’s grain trading activities and Oils’ oilseed and tallo
Slide 21: Capex supporting safety, network efficiencies and strategic initiatives
Capex supporting safety, network efficiencies and strategic initiatives For personal use only Capex(1) $M Depreciation & Amortisation $M Depreciation Stay-in-business 167 127 Amortisation Growth 119 141 24 24 122 91 112 96 106 71 78 18 72 53 63 17 63 16 103 95 73 56 61 70 71 53 59 49 FY10 FY11 FY12
Slide 22: Capex plan supporting strategic initiatives
Capex plan supporting strategic initiatives For personal use only Strategic initiatives capex plan by business unit ($M) FY13 and FY15 Business Capex Capex Initiatives announced and FY14 Capex Unit Balance Total underway Capex Plan • Customer service Storage & 16 ~4 – 10 ~24 – 30 ~50 • Non-grain opp
Slide 23: Eastern Australia competitive landscape
Eastern Australia competitive landscape For personal use only Upcountry Storage Capacity Upcountry Storage GrainCorp ~20mmt Competitors Competitors ~10mmt On-farm ~10mmt Ports Total GrainCorp Ports ~40mmt Competing Ports Announced Port Production / Exports Eastern Australia grain ~18mmt production Q
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