Ridley Corporation Limited · ASX:RIC

Ridley — FY2007 Earnings Presentation

38 slides from Ridley's earnings presentation, August 2007

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

    RIDLEY CORPORATION LTD 2007 FULL YEAR RESULTS PRESENTATION

  2. Slide 2: 2007 Full Year Results

    2007 Full Year Results ƒ Results and Highlights ƒ Divisional Summaries ƒ Financial Performance ƒ 2008 Business Conditions

  3. Slide 3: Main Features

    Main Features 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 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 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 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 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

    Stralia Feeds ry 4, >

  9. Slide 9: Australia Feeds

    Australia Feeds MANUFACTURING & DISTRIBUTION @ DISTRIBUTION ONLY OMONOUBRWNE 20 21 ATHERTON TOWNSVILLE ROCKHAMPTON WONDAI DALBY NARANGBA TOOWOOMBA WACOL CLIFTON TAMWORTH TAREE WETHERILL PARK WAGGA WAGGA COROWA MOOROOPNA MAFFRA PAKENHAM DANDENONG GUNBOWER ST ARNAUD BENDIGO 22 TERANG 23 24 COLAC MURRA

  10. Slide 10: Australia Feeds

    Australia Feeds 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 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 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

    Cheetham Salt

  14. Slide 14: Cheetham Salt

    Cheetham Salt PRODUCTION & REFINERY REFINERY O SALES OFFICE 4 PRODUCTION NOORBWNE BOWEN BAJOOL PORT ALMA BRISBANE SYDNEY WAKOOL CORIO, LARA & MOOLAP SEA LAKE DRY CREEK PRICE LOCHIEL KEVIN ESPERANCE FREMANTLE INDONESIA MOUNT MAUNGANUI LAKE GRASSMERE TOKYO

  15. Slide 15: Cheetham Salt

    Cheetham Salt 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 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

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  18. Slide 18: North America

    North America PRIMARY FEED PLANTS MACRO PREMIX PLANTS RETAIL STORE ONLY MICRO PREMIX, MACRO PREMIX, PRIMARY FEED PLANT, RETAIL STORE @ RIDLEY FEED INGREDIENTS A SWEETLIX © MCCAULEY BROS INC, @ RIDLEY EQUINE CENTER @ RIDLEY BLOCK OPERATIONS 4 ROCKY MOUNTAIN HOUSE, ALBERTA 3 LINDEN, ALBERTA 4 FORT MAC

  19. Slide 19: North America

    North America 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 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

    2007 Financial Performance

  22. Slide 22: Cashflow

    Cashflow 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 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 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$ / bushel ^ US$ / short ton

  25. Slide 25: EBITDA

    EBITDA 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 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 A$m Net Debt - June 2006 171 Cash outflow 4 Currency translation (3) Net Debt - June 2007 172

  28. Slide 28: Gearing

    Gearing 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 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 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

    Canadian Legal Claims Update

  32. Slide 32: Legal Claims - Status

    Legal Claims - Status 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 end

  33. Slide 33: Legal Claims - Status

    Legal Claims - Status 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 • Court will establish a

  34. Slide 34: Legal Claims - Status

    Legal Claims - Status 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 • Court will then est

  35. Slide 35: 2008 Business Conditions

    2008 Business Conditions

  36. Slide 36: Australia Feeds

    Australia Feeds 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 high

  37. Slide 37: Cheetham Salt

    Cheetham Salt 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 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