Ridley Corporation Limited · ASX:RIC

Ridley — FY2007 Earnings Presentation

38 slides from Ridley's earnings presentation, Aug 21, 2007

1. Slide 1: Ridley Corporation Ltd 2007 Full Year Results Presentation

   For personal use only RIDLEY CORPORATION LTD 2007 FULL YEAR RESULTS PRESENTATION

2. Slide 2: 2007 Full Year Results

   2007 Full Year Results For personal use only ƒ Results and Highlights ƒ Divisional Summaries ƒ Financial Performance ƒ 2008 Business Conditions

3. Slide 3: Main Features

   Main Features For personal use only ƒ Australia Feeds ↑ 16% • 3rd year of significant growth ƒ Cheetham Salt ↑ 1% • Well positioned / significant development plans ƒ North America ↓ 20% • Weakness in Canada ƒ Input costs

4. Slide 4: Results

   Results For personal use only A$m F2007 % to LY Sales Revenue 1,439.8 ↑ 14% Operating EBITDA 79.6 ↓ 6% Operating EBIT 56.9 ↓ 9% Net Operating Profit 26.7 ↓ 9% Net Profit 22.7 ↓ 18% Dividends 7.0 cps unchanged

5. Slide 5: Non-Operating Items

   * Non-Operating Items For personal use only Plant closures / capacity optimisation $(3.0)m Canada - $1.9m Australia - $1.1m Canadian legal case $(1.0)m Total non-operating items $(4.0)m * Net of tax and minority interest

6. Slide 6: Net Profit

   Net Profit For personal use only A$m 35 30 2.5 0.2 6.5 25 3.1 3.0 1.3 27.7 20 22.7 15 2006 Australia Cheetham North Unallocated Interest Plant 2007 Feeds Salt America Costs Tax & MI Closures * * Net of tax and minority interest

7. Slide 7: Sales by Division

   Sales by Division For personal use only A$m 1,800 1,600 1,400 35 33 175 4 1,200 1,440 1,259 1,000 800 2006 Australia Cheetham North Currency 2007 Feeds Salt America

8. Slide 8: Australia Feeds

   For personal use only Australia Feeds

9. Slide 9: Australia Feeds

   For personal use only Australia Feeds

10. Slide 10: Australia Feeds

    Australia Feeds For personal use only A$m F2007 % to LY Sales 667 ↑ 36% Tonnes (000's) 1,823 ↑ 8% EBIT 18 ↑ 16% Features + ─ ƒ Monogastrics ƒ Supplements ƒ Aquafeed ƒ Grain prices / ƒ Animal health Working capital ƒ Capacity utilisation ƒ Labour availability

11. Slide 11: Australia Feeds - Volume

    Australia Feeds - Volume For personal use only 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - ds Beef y rt e d r Pig try p ts afee Dai r Expo Hor s uid Fee Ot he Poul Shee pplem en Aqu L iq Su F2006 F2007

12. Slide 12: Australia Feeds - EBIT

    Australia Feeds - EBIT For personal use only A$m 32 28 24 3.7 3.1 20 1.7 2.9 0.7 16 12 18.4 15.9 8 4 2006 Volume Margins Mfg Selling Admin 2007 Costs & Dist & Other

13. Slide 13: Cheetham Salt

    For personal use only Cheetham Salt

14. Slide 14: Cheetham Salt

    For personal use only Cheetham Salt

15. Slide 15: Cheetham Salt

    Cheetham Salt For personal use only A$m F2007 % to LY Sales 91 ↑ 5% Tonnes (000's) 1,155 ↓ 4% EBIT 23 ↑ 1% Features + ─ ƒ Cost recovery / ƒ Chlorine / water margins improving softeners / pool ƒ Queensland ƒ Increasing returns agricultural sector from Indonesia ƒ Soda-ash

16. Slide 16: Cheetham Salt - EBIT

    Cheetham Salt - EBIT For personal use only A$m 27 25 0.1 1.4 1.1 23 0.3 0.3 23.1 23.3 21 19 2006 Chlor Alkali Mfg Goods Mag Brine Soda Ash Equity Profits 2007

17. Slide 17: North America

    For personal use only North America

18. Slide 18: North America

    For personal use only North America

19. Slide 19: North America

    North America For personal use only US$m F2007 % to LY Sales 532 ↑ 5% Tons (000's) 1,512 ↓ 3% EBIT 20 ↓ 16% Features + ─ ƒ US Feeds ƒ Canada ƒ Low moisture ƒ Weather blocks

20. Slide 20: North America - EBIT

    North America - EBIT For personal use only US$m 34 26 1.0 5.0 0.0 18 24.2 20.2 10 2006 US Feeds Canada Feeds RNS 2007

21. Slide 21: 2007 Financial Performance

    For personal use only 2007 Financial Performance

22. Slide 22: Cashflow

    Cashflow For personal use only A$m F2007 F2006 EBITDA * 77 81 Capex (29) (26) Borrowing costs (15) (12) Tax (10) (7) Dividends (9) (10) Other (3) (3) Working capital (15) (16) Cash generated (4) 6 Acquisitions - (10) Net (4) (4) * Includes Equity profits

23. Slide 23: Working Capital

    Working Capital For personal use only A$m F2007 F2006 F2005 Trade Receivables 123 105 92 Inventory 140 128 110 Creditors & Provisions (179) (164) (151) Other & Prepayments 15 15 17 Total 99 84 68 Days Sales outstanding 30 29 29

24. Slide 24: Input Prices

    Input Prices For personal use only Jun '05 Jun '06 Jun '07 % Inc Australia * Wheat 206 204 310 52% Barley 204 184 320 74% Canola 348 400 540 35% Fish meal 1041 1,371 1,890 38% United States US Corn + 2.62 2.80 4.00 43% Soybean + 6.95 5.85 8.25 41% Soymeal ^ 219 178 226 27% * A$ / tonne + US$ / bushe

25. Slide 25: EBITDA

    EBITDA For personal use only A$m F2007 F2006 Australia Feeds 26 22 Cheetham Salt * 27 27 North America 37 44 Corporate & Other (11) (9) Canadian Legal Claim (2) (3) Total 77 81 * Includes Equity profits

26. Slide 26: Unallocated Costs

    Unallocated Costs For personal use only A$m F2007 F2006 Corporate Costs - Australia 9 8 - North America 2 1 Canadian Legal Costs 2 3 Total 13 12

27. Slide 27: Debt Movement

    Debt Movement For personal use only A$m Net Debt - June 2006 171 Cash outflow 4 Currency translation (3) Net Debt - June 2007 172

28. Slide 28: Gearing

    Gearing For personal use only A$m F2007 F2006 F2005 Net Debt 172 171 164 Equity 388 394 351 Ratio 44.2% 43.5% 46.7%

29. Slide 29: Key Ratios

    Key Ratios For personal use only F2007 F2006 F2005 Net Debt / EBITDA 2.4 2.1 2.2 EBITDA / Net Interest 5.4 6.3 8.1 EBIT / Net Interest 3.7 4.6 5.9 ROSF 6.7% 8.6% 13.6% ROFE 7.7% 10.1% 9.8% EPS (fully diluted) 7.9 10.0 14.7

30. Slide 30: Currency Impact

    Currency Impact For personal use only Jun 2007 Jun 2006 Avg Exchange Rate A$ - US$ 0.7798 0.7434 A$ - C$ 0.8892 0.8630 Operating EBIT $1.2m down Operating Net Profit $0.5m down

31. Slide 31: Canadian Legal Claims Update

    For personal use only Canadian Legal Claims Update

32. Slide 32: Legal Claims - Status

    Legal Claims - Status For personal use only ƒ The actions against Canadian Government and 69% subsidiary Ridley Inc continue, but still at an early stage in all provinces: • merits of claims not yet considered by the Courts • defences not yet filed ƒ The actions against Ridley Corporation are at an

33. Slide 33: Legal Claims - Status

    Legal Claims - Status For personal use only ƒ In Ontario: • Court of Appeal upheld decision of Superior Court not to entirely strike out the plaintiffs claims, but upheld earlier decision to strike some • Plaintiff is now seeking to have his surviving claims certified as a class action in Ontario •

34. Slide 34: Legal Claims - Status

    Legal Claims - Status For personal use only ƒ In Quebec: • Plaintiff authorised to proceed with his class actions against Ridley Inc and Government of Canada • The plaintiff is expected to now file a Statement of Claim, and then Ridley Inc and Government of Canada will be able to file their defences

35. Slide 35: 2008 Business Conditions

    For personal use only 2008 Business Conditions

36. Slide 36: Australia Feeds

    Australia Feeds For personal use only ƒ Dairy prices at record highs. Herd numbers rebuilding post drought. Processors competing for milk supply. ƒ Pig producers impacted by high A$ and feed costs. Global demand high ƒ Outlook for beef, sheep and poultry positive ƒ Grain prices remain relatively hig

37. Slide 37: Cheetham Salt

    Cheetham Salt For personal use only ƒ Overall business conditions positive ƒ Capital expenditure projects including- • Port Alma Salt Field $5.1m • Bajool Refinery $1.1m • Indonesia Refinery $2.1m

38. Slide 38: North America

    North America For personal use only ƒ US producer economics are generally favourable ƒ High input prices continuing ƒ Drought easing in southern states ƒ Canada remains difficult

Ridley — FY2007 Earnings Presentation on 6ix