Slide 1: Half Year Results Presentation
RIDLEY CORPORATION INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM RESOLUTIONS OUTLOOK HALF YEAR RESULTS PRESENTATION 31 DECEMBER 2009 23 February 2010
Slide 2: Agenda
AGENDA INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM SALT PROPERTY FINANCIALS OUTLOOK 2
Slide 3: Ridley Transformed
RIDLEY TRANSFORMED INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Sale of Ridley Inc. - clean, lowly geared balance sheet Cheetham capital upgrades nearing completion – uplift in earnings in FY11 Record Ridley AgriProducts result for first half – FY10 follows record result for
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Profit & Loss 1H 1H Group NPAT of $14.9m FY09 FY10 $12.6m or 555% increase EBIT - Agriproducts 10.3 13.7 over same period last year EBIT - Cheetham 9.4 9.5 No significant items for first time in five years Salt
Slide 5: Ridley AgriProducts Results Presentation
RIDLEY AGRIPRODUCTS RESULTS PRESENTATION INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 6: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK 1H FY10 highlights: Poultry: Inghams contract, plus reopening of Clifton Mill Aqua: Inverell mill opening, Tassal, Huon and Clean Seas contracts Dairy: down $6.0m on an annualised basis Supplements: pushing hard for br
Slide 7: Market Segments
MARKET SEGMENTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Poultry: growth from Inghams relationship, growth Segment (kt) 1H FY09 ∆ 1H FY10 of second tier independent broiler processors, market growth of chicken consumption and growth in niche turkey, layer and duck market sect
Slide 8: Financial Summary
FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK AgriProducts (A$m) 1H 1H Fall in sales reflects FY09 FY10 downturn in Dairy Sales ($) 399.5 324.9 Record six monthly EBIT EBIT 10.2 13.7 result of $13.7m Depreciation 3.5 3.3 EBITDA 13.7 17.0 Working capital decre
Slide 9: Cheetham Salt Results Presentation
CHEETHAM SALT RESULTS PRESENTATION INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 10: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK 1H FY10 highlights: Port Alma salt harvest returns to normal cycle Bajool refinery upgrade fine tuning to be completed by March 2010 Indonesian refinery commenced operating in February 2010 Growth over the next 3 years f
Slide 11: Market Segments
MARKET SEGMENTS INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Segment- 1H ∆ 1H Salt demand: typically grows in line with Tonnes population growth and GDP FY09 FY10 Soda Ash 289k 290k Soda Ash: influenced by Penrice demand Chemical 85k 90k Chemical: influenced by chlor-alkali d
Slide 12: Financial Summary
FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Cheetham (A$m) 1H 1H Stable EBIT result of $9.5m before FY09 FY10 JV’s, up 2% on same period in Sales ($) 52.3 56.9 prior year but impacted by $1.5m EBIT (excl. JV NPAT) 9.3 9.5 of start up costs of Bajool refinery De
Slide 13: Property: Dry Creek and Lara
PROPERTY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK DRY CREEK 316ha located 12kms from Adelaide CBD LARA 912ha site at Lara adjacent to Avalon airport
Slide 14: Dry Creek
DRY CREEK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Background Key asset is the potential Dry Creek redevelopment, 12kms from Adelaide CBD. Site area of 980ha of which Ridley owns 316ha with the balance owned by the South Australian Government’s Land Management Corporation (
Slide 15: Financials
FINANCIALS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK PROFIT AND LOSS NON TRADING ITEMS BALANCE SHEET WORKING CAPITAL CAPITAL EXPENDITURE CASHFLOW DEBT BRIDGE FINANCIAL RATIOS 15
Slide 16: Profit and Loss
PROFIT AND LOSS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Profit & Loss (A$m) 1H 1H Corporate cost savings realised of FY09 FY10 $1.9m over the same prior year period after additional $0.5m FY10 spend on Revenue 451.8 381.8 property development EBIT - Agriproducts 10.3 13.7
Slide 17: Balance Sheet
BALANCE SHEET INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Balance Sheet (A$m) 1H 1H Reduction in Total Current Assets FY09 FY10 reflecting the significant working Total Current Assets 206.3 186.2 capital reduction Total Current Liabilities 133.1 112.2 PPE (and net assets) decr
Slide 18: Working Capital
WORKING CAPITAL INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Working Capital (A$m) 1H 1H Reduction in inventory a FY09 FY10 combination of lower input Cash 4.2 10.0 prices, less sites and tighter control over inventory levels Trade Debtors 101.2 89.5 Other Debtors, Prepayments an
Slide 19: Capital Expenditure
CAPITAL EXPENDITURE INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Items (A$m) Agri Salt Total $5.6m of development capital expenditures in Cheetham Bajool refinery - 3.8 3.8 comprising mostly two major new Indonesia refinery - 1.4 1.4 refineries to come fully on stream in 2H FY10
Slide 20: Cash Flow
CASH FLOW INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Group Cash flow (A$m) 1H 1H FY09 FY10 Operating Cashflow of $21.5m, Sales ($) 451.8 381.8 representing strong EBITDA to cash conversion of 86% before Joint Ventures EBIT (excl. JV NPAT) 15.6 19.5 Capex of $15.0m for the six
Slide 21: Debt Bridge Jun to Dec 2009
DEBT BRIDGE JUN TO DEC 2009 INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK 100.0 10.7 3.6 3.5 16.1 80.0 2.9 11.4 0.9 60.0 95.4 40.0 81.2 78.4 69.1 20.0 0.0 Opening PPE Capex Intangibles Sale Before Interest Dividends Before Net Receipts Salt JVs Closing 30/06/2009 Capex Proceeds Fina
Slide 22: Financial Ratios
FINANCIAL RATIOS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Items 1H 1H Gearing at a low 27.9% FY09 FY10 Dividend of 3.5c or $10.8m paid Net Debt $m 69.4 78.4 fully in cash from retained profits Equity $m 276.2 281.5 with DRP indefinitely suspended Total Assets $m 468.6 486.5
Slide 23: Outlook
OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Guidance for FY10 is an NPAT range of $28m to $30m Forecast earnings growth in FY11 from new contracts, Aquafeed expansion, new salt refinery efficiencies, recovery in Dairy sector, with partial offset by pig volume loss and
Slide 24: Ridley Transformation
RIDLEY TRANSFORMATION INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Includes results Sale Excludes of Ridley Inc. Ridley Inc.. FY05 FY06 FY07 FY08 FY09 # FY10f EBIT growth 3% 12% -13% -30% 1% 42 - 59% EBIT ($m) 53.4 59.7 51.7 36.3 30.2 43 - 48 NPAT ($m) 40.0 27.7 22.7 10.4 12.9 28 -
Slide 25: Questions and Answers
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK QUESTIONS AND ANSWERS 25