Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Shareholder Meeting (February 2017)
35 slides from Graincorp Limited Class A's shareholder meeting presentation, Feb 24, 2017
Slide 1: Annual General Meeting – FY16
Annual General Meeting – FY16 24 February 2017 For personal use only
Slide 2: Disclaimer
Disclaimer For personal use only This presentation includes both information that is historical in character and information that consists of forward looking statements. Forward looking statements are not based on historical facts, but are based on current expectations of future results or events. T
Slide 3: Agenda
Agenda For personal use only 1. Chairman’s Address (Mr Don Taylor) 2. Business of the Annual General Meeting (Mr Don Taylor) • Resolutions • Shareholder Questions • Poll Voting 3. CEO’s Presentation (Mr Mark Palmquist) 4. Results of Polls (Mr Don Taylor) 5. Meeting Closed (Mr Don Taylor) 3
Slide 4: Chairman’s Address
For personal use only Chairman’s Address
Slide 5: Business of the AGM
Business of the AGM Slides 6 – 18: Procedural Instructions & Voting Mr Don Taylor For personal use only
Slide 6: Business of the AGM
Business of the AGM For personal use only For Consideration Item 1: Consideration of Financial Statements and Reports Ordinary Resolutions Item 2: Adoption of the Remuneration Report Item 3: Election of Directors 3.1 Re-election of Mr Peter Housden 3.2 Re-election of Mr Simon Tregoning Item 4: Grant
Slide 7: Voting Cards & Visitors
Voting Cards & Visitors For personal use only GrainCorp Limited GrainCorp Limited Annual General Meeting Annual General Meeting 24 February 2017 24 February 2017 Non-Voting Shareholder Admission Card SHAREHOLDER/PROXYHOLDER Sample Only ADMISSION/VOTING CARD As a non-voting Shareholder you are remind
Slide 8: Item 1: Consideration of the Financial Statements and Reports
Item 1: Consideration of the Financial Statements and Reports For personal use only To receive and consider the Financial Statements and the Report of the Directors and Auditor for the year ended 30 September 2016. 8
Slide 9: Item 2: Adoption of the Remuneration Report
Item 2: Adoption of the Remuneration Report For personal use only To consider and, if thought appropriate, pass the following ordinary resolution: “That the Remuneration Report (which forms part of the Directors’ Report) of GrainCorp Limited for the financial year ended 30 September 2016 set out on
Slide 10: Proxy & direct votes
Proxy & direct votes For personal use only Item 2: Adoption of the Remuneration Report PROXY & DIRECT FOR OPEN AGAINST TOTAL VOTES Item 2 175,099,889 351,060 1,204,590 176,655,539 77.2% of % vote 99.1% 0.2% 0.7% issued capital The Chairman of the Meeting will be voting open proxies in favour of the
Slide 11: Item 3: Re-election of Directors
Item 3: Re-election of Directors For personal use only MR PETER J HOUSDEN MR SIMON L TREGONING BCom, FCPA, FAICD BCom, FAICD NON-EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR 11
Slide 12: Item 3.1: Re-election of Mr Peter J Housden
Item 3.1: Re-election of Mr Peter J Housden For personal use only 3.1) To consider and, if thought appropriate, pass the following ordinary resolution: “That for the purposes of ASX Listing Rule 14.4, article 11.3(a) of the Constitution and for all other purposes, Mr Peter Housden, retiring by rotat
Slide 13: Proxy & direct votes
Proxy & direct votes For personal use only Item 3.1: Re-election of Director – Mr Peter J Housden PROXY & DIRECT FOR OPEN AGAINST TOTAL VOTES Item 3.1 175,845,733 375,121 2,253,882 178,474,736 78.0% of % vote 98.5% 0.2% 1.3% issued capital The Chairman of the Meeting will be voting open proxies in f
Slide 14: Item 3.2: Re-election of Mr Simon L Tregoning
Item 3.2: Re-election of Mr Simon L Tregoning For personal use only 3.2) To consider and, if thought appropriate, pass the following ordinary resolution: “That for the purposes of ASX Listing Rule 14.4, article 11.3(a) of the Constitution and for all other purposes, Mr Simon Tregoning, retiring by r
Slide 15: Proxy & Direct Votes
Proxy & Direct Votes For personal use only Item 3.2: Re-election of Director – Mr Simon L Tregoning PROXY & DIRECT FOR OPEN AGAINST TOTAL VOTES Item 3.2 177,895,032 365,392 224,259 178,484,683 78.0% of % vote 99.7% 0.2% 0.1% issued capital The Chairman of the Meeting will be voting open proxies in f
Slide 16: Item 4: Grant of Performance Rights to Managing Director and CEO
Item 4: Grant of Performance Rights to Managing Director and CEO Mr Mark Palmquist For personal use only To consider and, if thought appropriate, pass the following ordinary resolution: “That approval be given for all purposes for the grant of Performance Rights under the Company’s equity incentive
Slide 17: Proxy & Direct Votes
Proxy & Direct Votes Item 4: Grant of Performance Rights to Managing Director and CEO For personal use only PROXY & DIRECT FOR OPEN AGAINST TOTAL VOTES Item 4 176,146,126 342,690 1,906,029 178,394,845 78.0% of % vote 98.7% 0.2% 1.1% issued capital The Chairman of the Meeting will be voting open prox
Slide 18: Poll Voting
Poll Voting For personal use only GrainCorp Limited Annual General Meeting 24 February 2017 SHAREHOLDER/PROXYHOLDER ADMISSION/VOTING CARD Sample Only POLL VOTING In a poll, please mark a box below to indicate your voting intention. Ordinary Resolutions For Against Abstain Resolution 2 Adoption of th
Slide 19: CEO Presentation
CEO Presentation Mr Mark Palmquist For personal use only
Slide 20: Agenda
Agenda For personal use only 1 Recap: FY16 2 Strategy update 3 FY17 guidance 20
Slide 21: FY16: Solid performance in a challenging year
FY16: Solid performance in a challenging year For personal use only FY16 FY15 Underlying EBITDA(1) $256 million $235 million Underlying NPAT(2) $53 million $45 million Statutory NPAT(3) $31 million $32 million Total Dividend 11 10 (cents per share) • Malt: operational improvements, strong demand for
Slide 22: Effectiveness of diversification
Effectiveness of diversification For personal use only UNDERLYING EBITDA(1) ($M) S&L Marketing (EBITDA) Allied Mills (NPAT) Oils Malt 414 395 350 293 256 235 212 160 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 2H 78 100 177 179 168 127 99 122 1H 82 112 173 235 227 166 136 134 Malt and Oils earnings plat
Slide 23: Focus on safety is fundamental
Focus on safety is fundamental For personal use only LOST TIME INJURY RECORDABLE INJURY FREQUENCY RATE(1) FREQUENCY RATE(2) 11.9 10.7 38.8 36.1 7.0 21.6 3.8 13.9 2.7 11.3 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 • 29% reduction in Lost Time Injury Frequency Rate(1) • 19% reduction in Record
Slide 24: Strategy update: priorities
Strategy update: priorities For personal use only Strategic priorities Outcomes Growth and diversification Deliver on strategic 1 growth initiatives in earnings and cashflow; stronger returns Disciplined approach to Maintain strong credit 2 capital management profile Earnings growth through Growth a
Slide 25: Delivering strategic growth initiatives
Delivering strategic growth initiatives For personal use only Focus on successful execution of growth projects Oils Oils S&L Malt Marketing Edible Oils network optimisation – Bulk liquid Re-shaping of Malt capacity 50-50 JV in Footscray and Numurkah, Victoria storage capacity country network expansi
Slide 26: Growth & portfolio optimisation
Growth & portfolio optimisation For personal use only • Sale of Allied Mills announced 31 January 2017: – GrainCorp 60% share of equity value: $190 million(1) – Equates to Allied Mills enterprise value: $455 million(2) – Subject to usual regulatory approvals – Expect to complete during 1H17 • Sale o
Slide 27: Grains outlook: above-average harvest leading to strong FY17 export program
Grains outlook: above-average harvest leading to strong FY17 export program For personal use only Market fundamentals • Record Eastern Australian crop production estimate of 28.0mmt(1) for FY17 (FY16: 18.6mmt) • 2017 sorghum crop impacted by poor seasonal conditions – current estimate 1.3mmt(2) (FY1
Slide 28: Increased grain production driving higher S&L and Marketing volumes
Increased grain production driving higher S&L and Marketing volumes For personal use only Drivers (mmt) FY16 FY17 Comments • Wheat, barley, canola, chickpeas and sorghum Eastern Australia grain 18.6 28.0 (current FY17 sorghum production estimate production(1) 1.3mmt(2)) Storage & Logistics • Close t
Slide 29: Eastern Australia - Winter crop post harvest review
Eastern Australia - Winter crop post harvest review For personal use only Production and receivals • Well above average grain production in eastern Australia with sound quality • ~160 silos operated during harvest with average receivals per site of ~70,000mt; compared to ~180 sites in FY16 with ~40,
Slide 30: Malt outlook – continued strong demand and high utilisation
Malt outlook – continued strong demand and high utilisation For personal use only Market fundamentals GrainCorp FY17 outlook • Global barley crop production • Forward sales of 1.2mmt YTD ~144.1mmt(1) (FY16: 148.7mmt) • Malt sales volume: ~1.3mmt (FY16: • Beer demand in mature markets 1.3mmt) continu
Slide 31: Oils outlook – competitive food ingredients sector
Oils outlook – competitive food ingredients sector For personal use only Market fundamentals GrainCorp FY17 outlook • Australian canola crop production • Strong competition across food estimate of 4.2mmt(1) (FY16: 2.9mmt) ingredients sector – pressure on volume – favourable for crush margins and mar
Slide 32: FY17 Earnings Guidance
FY17 Earnings Guidance For personal use only EBITDA NPAT • Underlying EBITDA (before significant • Underlying NPAT (before significant items): Guidance items): $385M – $425M $130M – $160M Variables • Depreciation & Amortisation: ~$150M Assumptions / Variables • 2H17 volumes: sorghum receivals; direc
Slide 33: Results of Polls
Results of Polls Mr Don Taylor For personal use only
Slide 34: Meeting Closed
For personal use only Meeting Closed
Slide 35: Annual General Meeting – FY16
Annual General Meeting – FY16 24 February 2017 For personal use only