Slide 1: Ridley Corporation 2011 Results Presentation
RIDLEY CORPORATION 2011 RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK
Slide 2: Ridley Resilient
RIDLEY RESILIENT INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only $0.2 million uplift in NPAT - lower operating result boosted by lower tax and with strong underlying cash generation preserved Strong cash conversion - $48.3 million before interest, tax and
Slide 3: Ridley Resilient: rainfall backdrop
RIDLEY RESILIENT INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Government rainfall chart for 2010 provides the backdrop for FY11 operations Sustained periods of rainfall in dry season led to highest levels recorded on east coast for up to 50 years prior
Slide 4: Ridley Resilient
RIDLEY RESILIENT INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only 4 4
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Consolidated result FY11 FY10 Group NPAT of $29.3m. - in $m EBIT result for AgriProducts of $24.9m Sales Revenue 723.7 728.0 includes: $0.3m contribution from liquid EBIT - AgriProducts
Slide 6: Ridley AgriProducts Results Presentation
RIDLEY AGRIPRODUCTS RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK
Slide 7: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only EBIT result of $24.9m - estimated weather-related impact of $6.6m, mostly in Dairy and Supplements, to generate a resilient result Aqua-feeds - although insulated from on-land adverse weather event
Slide 8: Sector Analysis
SECTOR ANALYSIS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Sector FY11 FY10 Outlook Poultry: 18% growth from ramp up of long term customer contracts, market growth of chicken (kt) (kt) consumption, and growth in niche turkey and duck sectors Poultry 900
Slide 9: Financial Summary
FINANCIAL SUMMARY For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK Agriproducts ($m) FY11 FY10 EBIT result of $24.9m, affected by adverse weather conditions with Sales ($) 616.4 620.0 estimated impact of $3m in Dairy, EBIT # 24.9 29.0 $2m in Supplements, and
Slide 10: Cheetham Salt Results Presentation
CHEETHAM SALT RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK
Slide 11: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only EBIT result of $14.2m, down $2.6m on corresponding period excluding Joint Ventures. $1.9m adverse impact of severe weather events: 27% volume fall in stockfeed sector $0.6m in Queensland salt f
Slide 12: Sector Analysis
SECTOR ANALYSIS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Sector FY11 FY10 Out- Soda Ash volumes down due to an unscheduled look plant shutdown at Penrice, coupled with reduced (kt) (kt) demand for soda ash Soda Ash 529 567 Chemical reflects one less
Slide 13: Financial Summary
FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Cheetham (A$m) FY11 FY10 Sales revenue maintained despite 10.5% volume decrease Sales ($) 107.3 107.9 EBIT (excl. JV NPAT) 14.2 16.8 EBIT result before JV’s of $14.2m, Depreciation 5.6 4.5 d
Slide 14: Joint Ventures
JOINT VENTURES INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Cheetham Joint Ventures FY11 FY10 JVs disclosed in Income (JVs) in A$m Statement as equity EBITDA 11.1 11.1 accounted NPAT of $7.0m Depreciation and amortisation (0.8) (0.6) Income Statement co
Slide 15: Dry Creek
DRY CREEK INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Redevelopment into a residential community is financially viable but not currently feasible due to current contractual commitments to Penrice Potential to create significant long term shareholder va
Slide 16: Lara
LARA INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only AVALON AIRSTRIP Lara site 912 hectare Saltfeatured in Govt’s Avalon “MelbourneFields @ 5 million” blueprint Airport Melbourne To benefit from expansion of ~60km Avalon airport and Port of Geelong 912ha s
Slide 17: Balance Sheet
BALANCE SHEET INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Balance Sheet in $m FY11 FY10 Working capital movements & P,P&E additions discussed on separate Total Current Assets 193.7 179.6 slides Total Current Liabilities 109.4 117.3 $12.2m of fair value
Slide 18: Cash Flow
CASH FLOW INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Cash flow in $m FY11 FY10 Strong EBITDA performance despite severity of adverse weather conditions EBITDA (inc JV NPAT’s) 54.2 58.5 Working capital and capex covered Movement in working capital (7.7
Slide 19: Working Capital
WORKING CAPITAL INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Working Capital in $m FY11 FY10 Increase in cash only a timing issue in conjunction with borrowings Cash 13.2 7.0 Trade Debtors 85.9 77.7 Increase in trade debtors of $8.2m Other Debtors and p
Slide 20: Capital Expenditure
CAPITAL EXPENDITURE INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Items in $m Agri Salt FY11 FY10 Completion of Cheetham refinery rationalisation strategy in prior Bajool & Indonesian - - - 6.9 year Refineries Except for $0.7m in FY11, ERP Other 2.2 0.5
Slide 21: Joint Venture Gross Up
JOINT VENTURE GROSS UP INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only JV result reported in Income Financial KPI’s FY11 FY10 FY09 Statement at NPAT level as required by equity accounting standard Result from Operations 39.9 46.2 37.6 Individual JV tax and
Slide 22: Financial Ratios
FINANCIAL RATIOS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Financial KPI’s FY11 FY10 Gearing stable reduced to 26.2% pre- Camilleri acquisition (35.1% Net Debt - in $m 102.1 72.0 post) with strong debt servicing Equity - in $m 291.0 285.1 capacity Gear
Slide 23: Camilleri Acquisition Metrics
CAMILLERI ACQUISITION METRICS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Acquisition consideration in $’000: Cash 31,162 1 Equity instruments 1,000 2 Contingent cash consideration 2,860 3 Total consideration 35,022 Fair values of net assets at
Slide 24: Camilleri Rationale
CAMILLERI RATIONALE For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK Acquisition completed 1 March 2011 Camilleri represents an ideal bolt on for Ridley: Manageable size and wholly debt fundable EPS accretive (at least 5%) with robust reliable earnings
Slide 25: Camilleri Aerial Site View
CAMILLERI AERIAL SITE VIEW For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK Hawkesbury River Wiseman’s Ferry Old Northern Rd 65km from Sydney CBD Site access road Adjacent sand quarry 25 25
Slide 26: Strategic Priorities
STRATEGIC PRIORITIES INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only 2008 strategy to: Sell Ridley Inc. Improve performance of Ridley Agriproducts - asset rationalisation, overhead reduction, centralisation of key functions 2 consecutive record res
Slide 27: Strategic Priorities
STRATEGIC PRIORITIES INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only 2011 priorities: Agribusiness consolidation Asian expansion Feedstock operational improvement Property redevelopment 27
Slide 28: Agribusiness Consolidation
AGRIBUSINESS CONSOLIDATION INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Against a backdrop of: Playing a vital role in the global food supply chain Providing key inputs for food products for human and livestock consumption Agribusiness industry consol
Slide 29: Asian Expansion
ASIAN EXPANSION INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Against a backdrop of: Existing salt refinery and business in Indonesia, locally staffed Large, growing, and increasingly middle class population in closest proximity to Australia Strong exi
Slide 30: Feedstock Operational Improvement
FEEDSTOCK OPERATIONAL IMPROVEMENT INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Against a backdrop of: Implementation of ERP system over the last 18 months Improved performance over the last three years but further gains achievable Program of mill and
Slide 31: Property Redevelopment
PROPERTY REDEVELOPMENT INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Against a backdrop of: Dry Creek redevelopment deferral Another harvest loss at Bowen due to weather Completion of Cheetham refinery upgrade program Objectives to: Undertake feasibi
Slide 32: Ridley Corporation
Ridley Corporation For personal use only A compelling proposition