Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Investor Presentation (June 2009)
15 slides from Graincorp Limited Class A's investor presentation, June 2009
Slide 1: Shareholder and Investor Background and Update
GRAINCORP LIMITED SHAREHOLDER AND INVESTOR BACKGROUND AND UPDATE JUNE 2009 Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 1
Slide 2: GrainCorp's place in the World
GrainCorp’s place in the World • GrainCorp is well positioned, following removal of the bulk wheat export monopoly, to export 1 to 1.5 mmt of bulk wheat PA • Rising consumption in the Asia - Pacific and Middle East regions is driven by – Increasing per capita grain consumption linked to raised stand
Slide 3: GrainCorp Focus - Eastern States
GrainCorp Focus - Eastern States Eastern States Average Annual Grain Production (Selected grains) > 15 mmt Wheat Grade Legend Queensland APH – Australian Prime Hard Wheat – 1.1 AH – Australian Hard APW – Australian Premium White Barley – 0.2 ASW – Australian Standard White Sorghum – 1.2 APH Durum AH
Slide 4: GrainCorp Overview
GrainCorp Overview Employees • GrainCorp has approx. 800 permanent employees • Up to 2500 ‘harvest casuals’ employed each year between Nov. and Feb. Financial • Retain current FY 09 profit forecast range of $37 to $42 million Current Market Capitalisation • $560 million @ 23 June 2009 Grain Storage
Slide 5: GrainCorp Supply Chain Footprint
GrainCorp Supply Chain Footprint • 284 operational country grain receival sites • 20 mmt storage capacity – Vertical concrete silos – Steel silos and sheds – Grain bunkers • 4 ‘branch line’ trains in NSW • 8 leased ‘main line’ trains in NSW and Victoria • Total rail haulage capacity > 3 mmt PA Grain
Slide 6: GrainCorp Ports Footprint
GrainCorp Ports Footprint GrainCorp operates 7 open access bulk grain terminals Mackay Gladstone Fisherman Islands (Brisbane) Portland Carrington (Newcastle) Port Kembla Geelong • Shipping capacity up to 20 mmt PA • Annual grain exports avg. > 4 mmt • Annual non-grain exports > 1.5 mmt Grain Storage
Slide 7: GrainCorp Trading
GrainCorp Trading • Trading > 3 mmt of grain and meal PA – Up to 1.5 mmt bulk grain exports – Up to 2.0 mmt domestic market – > 0.2 mmt soybean meal • Grains traded – Wheat – Barley – Canola – Sorghum – Pulses • Entered the bulk wheat export sector in Dec. 2008 • On target to exceed 1 mmt sales Grai
Slide 8: Transformation of GrainCorp
Transformation of GrainCorp Supporting implementation of the 2006 Strategic Plan In the last 6 months • A significant internal restructure of business units and senior management • Clearer customer focus • Successfully became a leading participant in the bulk wheat export market • Providing open acc
Slide 9: HY09 Results Recap as at 31 March 2009
HY09 Results Recap as at 31 March 2009 Revenue Up by $52 M Results HY08 HY09 $ million $ million EBITDA Up by $50 M Revenue 806 858 EBITDA 32 82 NPAT Up to $32 M Net profit / (loss) (6) 32 after Tax Free Cash flow 2 (34) 61 Gearing1 Down to 48% Key financial results show the transformation of GrainC
Slide 10: HY09 Business Drivers as at 31 March 2009
HY09 Business Drivers as at 31 March 2009 Carry-in Up by 1.0 mmt HY08 HY09 mmt mmt Receivals Up by 4.2 mmt Grain carry-in 1.2 2.2 Grain receivals 4.6 8.8 Grain Exports Up by 1.4 mmt Domestic out load 2.0 2.3 Grain exports 0.5 1.9 Grain carry out 4.0 7.2 Return to average or above average Non-grain e
Slide 11: Capital Raising – Share Placement
Capital Raising – Share Placement Share Placement • 9.6 million shares placed raising $60 m – Placement announced 18 May – Significantly oversubscribed – Institutions bidding – 81 – Existing institutions – 34 • New institutions – 47 • Over 74 million shares on issue Grain Storage | Supply Chain Logi
Slide 12: Capital Raising - SPP
Capital Raising - SPP Share Purchase Plan – Individual shareholders can apply for up to $15,000 worth of shares – SPP close on 29 June 2009 • Register now has over 27 000 shareholders – Top 20 shareholders > 52% of shares Use of Capital Raised • Strengthen the balance sheet • Position GrainCorp for
Slide 13: FY09 Outlook
FY09 Outlook Forecast receivals FY09 9.2 to 9.4 mmt Actual receivals YTD * 9.3 mmt Forecast exports handled > 4.0 mmt Actual exports handled YTD * 3.2 mmt * As at 23 June 2009 Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 13
Slide 14: Seasonal Outlook
Seasonal Outlook • ABARE June Crop Report • 2009/10 forecast production of major grains in Queensland, NSW and Victoria Crop Forecast Tonnage (mmt) Wheat 11.2 Barley 3.4 Canola 0.66 Sorghum 1.9 Total 17.6 Source – ABARE Australian Crop Report. 16 June 2009. Grain Storage | Supply Chain Logistics | G
Slide 15: Key Messages
Key Messages GrainCorp has successfully capitalised on removal of the bulk wheat export monopoly Mainline and branch line trains have strengthened supply chain integration and increased efficiency Continuing focus on reducing costs and increasing service delivery across storage, logistics and