Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — RBS Morgans Conference 2009
26 slides from Graincorp Limited Class A's conference presentation, Sep 17, 2009
Slide 1: Company announcement: GrainCorp September 2009 Investor Presentation (Revised)
Company announcement GrainCorp Limited ABN 60 057 186 035 Date: Thursday, 17 September 2009 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com PUBLIC ANNOUNCEMENT Contents for immediate release: GrainCorp September 2009 Investor Presentation (Revised) NOTE - Revi
Slide 2: Investor Presentation September 2009
For personal use only September 2009 INVESTOR PRESENTATION Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 1
Slide 3: Business Transformation Achievements
Business Transformation Achievements For personal use only Improved capital structure Business transformation achievements Revitalisation of Board and appointment of new management team Business improvement initiatives (e.g. Project Shine) Generation of new earnings streams (e.g. bulk wheat
Slide 4: Transformation has driven Business Growth
Transformation has driven Business Growth For personal use only Underlying profitability has improved – Forecast FY09 NPAT is $53 – 63m driven by: NPAT and Receivals FY05 vs. FY09F (A$ millions) Cost savings and margin improvement in excess of $20 million achieved Forecast NPAT range Significant
Slide 5: Compelling Australian Agriculture Exposure
Compelling Australian Agriculture Exposure… For personal use only GrainCorp is the second largest ASX-listed agribusiness Increased liquidity and demand for GrainCorp stock reflects recent equity raising and industry consolidation activity Market capitalisation of ASX listed agribusinesses (A$ m
Slide 6: Debt Profile Post Placement and SPP
Debt Profile Post Placement and SPP For personal use only Semi-annual current debt, non-current debt and grain inventory stocks (A$ millions, unless otherwise stated. FYE 30 September) 700 600 500 400 300 200 100 0 HY04 FY04 HY05 FY05 HY06 FY06 HY07 FY07 HY08 FY08 HY09 Pro forma Short-term debt (-)
Slide 7: Planning for Further Growth
Planning for Further Growth For personal use only GrainCorp’s 2009 Strategic Plan focuses on the following 6 key strategic areas: Strategic area Description 1 Reduce gearing Capital management to provide long-term financial security, flexibility to fund grain inventory and company growth 2 Competiti
Slide 8: GrainCorp Investment Highlights
GrainCorp Investment Highlights For personal use only Leading supply chain company in the Australian grain industry Unique portfolio of infrastructure assets which cannot be easily replicated Compelling Australian agriculture exposure, with strongest balance sheet in the sector Captures substant
Slide 9: GrainCorp Supply Chain
For personal use only GRAINCORP SUPPLY CHAIN Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 8
Slide 10: GrainCorp Supply Chain Business Model
GrainCorp Supply Chain Business Model For personal use only New earnings Grain Storage fee per week Storage fee per month growers ‘Take or pay’ trains Contracted road transport Outloading fee Road Receival fee Export Ports markets Country silos Rail Receival fee Outloading Trading drives demand Trad
Slide 11: Storage and Logistics
For personal use only STORAGE AND LOGISTICS Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 10
Slide 12: Business Unit Overview
Business Unit Overview For personal use only • Storage and Logistics (“S&L”) is the leading provider of grain storage and transport services in eastern Australia • Operates the largest grain silo network in Australia – 284 country receival sites with 20 Mt capacity – 60% of east coast grain producti
Slide 13: Flexible Operating Model
Flexible Operating Model For personal use only One of the ‘business transformation’ initiatives was to rationalise country silos, creating an operating model that is flexible for drought conditions Flexible operating model implemented which allows for better management of costs during drought cond
Slide 14: Storage and Logistics Highlights
Storage and Logistics Highlights For personal use only Largest grain storage network on the east coast of Australia Managing over 3 million tonnes of rail and 1 million tonnes of road haulage PA Leading market position with >60% east coast production market share Integrated business model, s
Slide 15: Ports
For personal use only PORTS Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 14
Slide 16: Unparalleled Port Footprint
Unparalleled Port Footprint For personal use only •GrainCorp operates nine bulk ports on the east coast Mackay –Ports replacement value in excess of $1bn •7 bulk grain ports Gladstone –Total ship loading capacity of over 15Mt per annum Brisbane –Qld: Mackay, Gladstone, Fisherman Islands (Brisbane),
Slide 17: Ports Highlights
Ports Highlights For personal use only Ports form a critical part of GrainCorp supply chain Ports inter-connected with the up-country operations Owns and manages 7 out of 8 east coast bulk grain ports Ports have replacement value >$1bn and cannot be easily replicated Ongoing business transforma
Slide 18: Trading
For personal use only TRADING Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 17
Slide 19: Value from Bulk Wheat Exports
Value from Bulk Wheat Exports For personal use only Removal of the AWB Ltd export monopoly has enabled the expansion of GrainCorp’s supply chain to ship wheat directly to international customers Competitive position Trade destinations Trading currently manages c. 35% of bulk GrainCorp has develo
Slide 20: Trading Risk Management
Trading Risk Management For personal use only GrainSmart manages administration Tight system Separation of front and back office Risk management framework controls Limited open positions by commodity Tight risk Established loss limits controls Regular Position and MTM Reports Regular str
Slide 21: Trading Highlights
Trading Highlights For personal use only Major grain trader with significant competitive advantages Trading is profitable and adds significant value to the storage and logistics network by drawing grain into receival sites Removal of wheat export monopoly enabled expansion of supply chain into bu
Slide 22: Allied Mills
For personal use only ALLIED MILLS Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 21
Slide 23: Leading Australian Flour Miller
Leading Australian Flour Miller For personal use only The Australian flour milling market is dominated by three major players (Allied, Manildra and Weston) representing a combined 90% of industry wheat milling capacity National network 7 flour mills c. 25% market share National network Int
Slide 24: Recent growth initiatives
Recent growth initiatives For personal use only New Picton Mill (Sydney) Frozen doughnut plant acquisition New $97 million mill commissioned in Factory, located in Yatala, Qld, acquired in December 2008, located in Picton, NSW December 2008 for $9.5 million Three flexible mills 10-year suppl
Slide 25: Allied Mills Highlights
Allied Mills Highlights For personal use only More than flour – value-added products deliver high margins and lock-in customers Operates Australia’s largest flour mill network Selectively pursues targeted growth opportunities Services a large number of quality large and high margin small custome
Slide 26: Crop production outlook
Crop production outlook For personal use only Australia • ABARE* is predicting a 22 million tonne Australia wheat crop and exports of 15.5 million tonnes, and a total winter crop of 35.9 million tonnes. • In the Eastern States, ABARE is predicting a 10.4 million tonne wheat crop, and a total winter