Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Shareholder Meeting (February 2010)
43 slides from Graincorp Limited Class A's shareholder meeting presentation, Feb 24, 2010
Slide 1: GrainCorp Annual General Meeting Presentation
For personal use only Company announcement GrainCorp Limited ABN 60 057 186 035 Date: Wednesday, 24 February 2010 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com PUBLIC ANNOUNCEMENT GRAINCORP ANNUAL GENERAL MEETING PRESENTATION Betty Ivanoff General Counsel an
Slide 2: GrainCorp Limited 2010 Annual General Meeting
For personal use only 24th February 2010 GRAINCORP LIMITED 2010 ANNUAL GENERAL MEETING Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 1
Slide 3: Agenda
Agenda For personal use only 1. Chairman’s Address 2. Attendance and Apologies 3. Ordinary Business 4. Business Report 5. Shareholder Questions Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 2
Slide 4: Chairman's Address
For personal use only GrainCorp Limited 2010 Annual General Meeting CHAIRMAN'S ADDRESS Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 3
Slide 5: FY Financial Results - Overview
FY 09 Financial Results - Overview For personal use only EBITDA Up by $114 M Results FY09 FY08 $ million $ million Free Cash Flow Up by $227 M Revenue 1,730 1,534 EBITDA 165 51 NPAT Up to $63 M Net profit / (loss) 63 (20) after Tax Free Cash flow 181 (46) Highlights Improved financial performance in
Slide 6: Attendance and Apologies
For personal use only GrainCorp Limited 2010 Annual General Meeting ATTENDANCE AND APOLOGIES Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 5
Slide 7: Ordinary Business
For personal use only Mr Don Taylor - GrainCorp Chairman ORDINARY BUSINESS Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 6
Slide 8: Ordinary Business
Ordinary Business For personal use only Minutes of the previous AGM - 25th February 2009 Item 1 Financial Statements and Reports Item 2 Adoption of Remuneration Report Item 3 Election of Directors Business Report Results of Remuneration Report adoption poll Shareholder Questions Grain Storage and Lo
Slide 9: Minutes of the previous AGM
Minutes of the previous AGM For personal use only The minutes of the previous AGM held on 25th February 2009 tabled by the Chairman Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 8
Slide 10: Remuneration Report Poll to Follow
For personal use only GrainCorp Limited 2010 Annual General Meeting REMUNERATION REPORT POLL TO FOLLOW Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 9
Slide 11: Election of Directors
For personal use only GrainCorp Limited 2010 Annual General Meeting ELECTION OF DIRECTORS Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 10
Slide 12: Election of Directors – Mr Donald Taylor
Election of Directors – Mr Donald Taylor For personal use only Item 3(a) To consider, and if thought appropriate, pass the following ordinary resolution: “That for the purposes of ASX Listing Rule 14.4, article 11.3(a) of the Constitution and for all other purposes, Mr Donald Taylor, retiring by rot
Slide 13: Election of Directors – Mr Donald Taylor: Proxy Votes
Election of Directors – Mr Donald Taylor For personal use only Item 3(a) Re-election of Mr Donald Taylor Proxy Votes For Against Open Total Resolution 3(a) 86,224,138 572,640 1,069,483 87,866,261 % vote 98.13 0.65 1.22 Chairman 86,108,081 541,075 860,477 87,509,633 voting (included in the total abov
Slide 14: Election of Directors – Mr David Trebeck
Election of Directors – Mr David Trebeck For personal use only Item 3(b) To consider, and if thought appropriate, pass the following ordinary resolution: “That for the purpose of ASX Listing Rule 14.4 and article 11.3(a) of the Constitution and for all other purposes, Mr David Trebeck, retiring by r
Slide 15: Election of Directors – Mr David Trebeck: Proxy Votes
Election of Directors – Mr David Trebeck For personal use only Item 3(b) Re-election of Mr David Trebeck Proxy Votes For Against Open Total Resolution 3(b) 72,347,859 12,339,356 1,132,439 85,819,654 % vote 84.3 14.38 1.32 Chairman 72,244,072 12,295,521 923,433 85,463,026 voting (included in the tota
Slide 16: Election of Directors – Mr Donald McGauchie
Election of Directors – Mr Donald McGauchie For personal use only Item 3(c) To consider, and if thought appropriate, pass the following ordinary resolution: “That for the purpose of ASX Listing Rule 14.4, section 201H(3) of the Corporations Act, article 11.3(c) of the Constitution and for all other
Slide 17: Election of Directors – Mr Donald McGauchie: Proxy Votes
Election of Directors – Mr Donald McGauchie For personal use only Item 3(c) Election of Mr Donald McGauchie Proxy Votes For Against Open Total Resolution 3(c) 85,911,233 925,731 1,110,289 87,947,253 % vote 97.68 1.05 1.26 Chairman 85,819,910 864,432 906,283 87,590,625 voting (included in the total a
Slide 18: Adoption of Remuneration Report
Adoption of Remuneration Report For personal use only Item 2 To consider, and if thought appropriate, pass the following ordinary resolution: “That the Remuneration Report for the financial year ended 30 September 2009 set out in the Directors’ Report be adopted.” Grain Storage and Logistics | Grain
Slide 19: Adoption of Remuneration Report: Proxy Votes
Adoption of Remuneration Report For personal use only Item 2 Adoption of Remuneration Report Proxy Votes For Against Open Total Resolution 2 29,473,371 52,166,093 1,146,513 82,785,977 % vote 35.6 63.01 1.38 Chairman 29,378,848 52,110,844 939,657 82,429,349 voting (included in the total above) The Ch
Slide 20: Business Report
For personal use only Mr Ian Wilton – Interim CEO BUSINESS REPORT Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 19
Slide 21: 2009 Year in Review – Highlights
2009 Year in Review – Highlights For personal use only March Official opening of Allied Mills $97 million – 230,000 TPA Picton (NSW) flour mill April Established GrainCorp Marketing Services field merchant network July Share Purchase Plan and Institutional Placement raises $198 million July GrainCor
Slide 22: FY Year in Review – Financial Overview
FY 09 Year in Review – Financial Overview For personal use only Receivals 10.7 mmt FY09 FY08 (incl. ports and ex-other Traders) mmt mmt Grain carry-in 2.2 1.2 Grain exports handled 5.2 mmt (incl. containers) Country network 9.6 5.8 grain receivals Bulk wheat exports 1.3 mmt Grain received at port 1.
Slide 23: FY Financial Indicators at September 2009
FY 09 Financial Indicators at 30 September 2009 For personal use only EBITDA - $ M Receivals - (Million tonnes) NPAT - $ M 180 10.8 12 80 160 9.3 9.6 10 60 140 120 8 40 100 5.8 63.2 6 20 80 165.2 31.7 13.5 60 120.9 4 0 92.2 2.3 -19.8 -19.9 40 -20 51.3 2 20 31.9 0 0 -40 FY 05 FY 06 FY 07 FY 08 FY 09
Slide 24: FY Year in Review – Storage and Logistics
FY 09 Year in Review – Storage and Logistics For personal use only FY09 FY08 Country Network Grain Receivals – mmt 12 Carry in 2.2 1.2 10 Revenue 281 120 8 EBITDA 66 22 6 10.8 9.3 9.6 4 EBIT 44 (1) 5.8 2 2.3 CAPEX 17 8 0 FY05 FY06 FY07 FY08 FY09 Highlights Business Drivers 9.6 mmt grain received int
Slide 25: FY Year in Review – Ports
FY 09 Year in Review – Ports For personal use only FY09 FY08 Grain Exports Handled - mmt 6.0 Revenue 131 52 5.0 EBITDA 78 11 4.0 3.0 EBIT 65 (2) 4.7 5.3 5.2 2.0 CAPEX 7 5 1.0 1.0 1.0 0.0 FY05 FY06 FY07 FY08 FY09 Highlights 2.5 Non Grain Exports Handled - mmt • 1.1 mmt grain received from 2.0 ex-farm
Slide 26: FY Year in Review – Trading
FY 09 Year in Review – Trading For personal use only FY09 FY08 30 Profit Before Tax - $ M Revenue 1,243 1,270 25 EBITDA 39 28 20 PBT 25 4 15 25 10 20 17 Highlights 14 5 • > 1.5 mmt total grain exports 4 • Total tonnes traded (all grains) similar 0 to last year FY05 FY06 FY07 FY08 FY09 • Earnings imp
Slide 27: FY Year in Review – Merchandise
FY 09 Year in Review – Merchandise For personal use only FY09 FY08 Revenue 73 89 EBITDA (23) 4 Business Drivers • $(23) million loss including • $11.3 million inventory write down of fertiliser and chemicals • Asset impairment charge of $3.2 million Review of Business • Decision to wind down operati
Slide 28: FY Year in Review – Allied Mills
FY 09 Year in Review – Allied Mills For personal use only FY09 FY08 60 EBITDA - $ M Revenue 535 527 50 40 EBITDA 48 43 30 Equity profit 10 11 51.8 47.5 20 42.8 Net Asset 29.6 211 195 10 25.8 value 0 CAPEX 11 98 FY05 FY06 FY07 FY08 FY09 Business Drivers • The new Picton mill was commissioned in Janua
Slide 29: GrainCorp Malt
For personal use only GRAINCORP MALT Barrett Burston Malting - Geelong Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 28
Slide 30: An international operating footprint
An international operating footprint For personal use only • Four operating companies - Canada Malting - Canada - Great Western Malting - USA - Bairds Malt - UK - Barrett Burston Malting - Australia • 15 plants located in four countries • Located near malting barley production • Access to bulk and c
Slide 31: A blue chip customer base
A blue chip customer base... For personal use only Some of the leading brewers and distillers we supply Anheuser-Busch Asahi Breweries Chivas Brothers John Dewar & Diageo InBev Sons Carlton & Kirin Heineken SABMiller Molson Coors United Breweries Sabeco Suntory Sapporo FEMSA Yuengling Breweries Sing
Slide 32: And regional sales diversification
And regional sales diversification... For personal use only Approximate Sales by Region • We have more than 800 customers world wide… Australia 9% Latin America • Across the following sectors 15% - Large international brewers and distillers Asia 17% USA / Canada - Micro and regional brewers 36% - Re
Slide 33: Integration progress report
Integration progress report For personal use only Initiated... • International barley risk management strategy project • Australian barley procurement, storage, handling integration • Transfer of Omaha (NE) office functions to Vancouver (WA) Continuing... • Financial systems integration • Centralisa
Slide 34: Update and Guidance
For personal use only UPDATE AND GUIDANCE Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 33
Slide 35: FY Update – GrainCorp Malt
FY 10 Update – GrainCorp Malt For personal use only • To date we have forward Contracted Sales Volumes sold Long term supply agreements 100% • 96% of FY 10 production 90% 80% • 66% of FY 11 production 70% 60% • 45% of FY 12 production 50% 40% 30% 20% 10% 0% FY06A FY07A FY08A FY09A FY10A Grain Storag
Slide 36: FY Update – Grain Export Handling
FY 10 Update – Grain Export Handling For personal use only • Forecast export grain 6 Grain Exports Handled - mmt elevation for FY 10 is 5 5.3 5.2 3 mmt 4 3 4.7 3.0 • YTD 1.01 mmt 2 1 1.0 1.0 1.0 0 • Corresponding period last FY05 FY06 FY07 FY08 FY09 FY10 FY10 F year 1.1 mmt YTD 2.5 Non Grain Exports
Slide 37: FY Update – Grain Receival
FY 10 Update – Grain Receival For personal use only • Total grain received Grain Receivals - mmt since 1st October 2009 is 11 7 mmt 10 9 • Forecast FY 10 grain 8 receivals between 7 7 to 8.5 mmt 6 10.8 • Receivals for the remainder 5 9.6 9.3 of 2010 will be influenced by 4 7.0 • Sorghum crop size 3
Slide 38: FY – Outlook
FY 10 – Outlook For personal use only • Significant quantities of grain still stored on-farm • Est. approx. 25 to 30% of the total Victorian harvest • Est. > 1 mmt in northern NSW • Last year GrainCorp received > 1 mmt ex-farm post harvest • Adjustment of port receival fees in early February should
Slide 39: FY - Outlook
FY 10 - Outlook For personal use only • Current seasonal conditions indicate improved planting prospects particularly for southern Queensland, northern NSW and Victoria... • And are positive for the earlier sown central Queensland winter crop • Price outlook for feed grains is likely to boost planti
Slide 40: FY Earnings Guidance - Overview
FY 10 Earnings Guidance - Overview For personal use only EBITDA outlook range $180 to $210 million GrainCorp Malt 10 ½ month contribution to total $100 to $120 million company EBITDA • This guidance is unchanged from 22 December 2009 • Accounting valuation of the GrainCorp Malt assets will be finali
Slide 41: Business Report Questions
For personal use only BUSINESS REPORT QUESTIONS Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 40
Slide 42: Results of Adoption of Remuneration Report Poll
For personal use only RESULTS OF ADOPTION OF REMUNERATION REPORT POLL Results will be released to the ASX following the meeting Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 41
Slide 43: Shareholder Questions
For personal use only GrainCorp Limited 2010 Annual General Meeting SHAREHOLDER QUESTIONS Great Western Malting – Pocatello, Idaho Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 42