Ridley Corporation Limited · ASX:RIC

Ridley — H1 FY2015 Earnings Presentation

29 slides from Ridley's earnings presentation, Feb 17, 2015

1. Slide 1: Investor Presentation – Half Year to 31 December 2014

   For personal use only RIDLEY CORPORATION LIMITED INVESTOR PRESENTATION HALF YEAR TO 31 DECEMBER 2014 Australia’s leading producer of premium quality, 1 high performance animal nutrition solutions

2. Slide 2: Introduction

   Introduction For personal use only 1. Financial performance 2. Financial highlights 3. Dry Creek 4. Nelson Cove 5. Consolidated financials – assets, liabilities, cash flows 6. Next twelve months focus 7. Ridley Business Background history appendices 2

3. Slide 3: Financial performance

   Financial performance For personal use only Consolidated result 1H 1H  AgriProducts half result of $25.6m, up - in $m FY15 FY14 FY14 $4.9m (24%) on comparable prior year earnings EBIT - AgriProducts 25.6 20.7 40.1  Continuing focus on providing effective Property costs - customer solutions through

4. Slide 4: Financial highlights

   Financial highlights For personal use only  Record half year result from core business - EBIT increase of $4.9m to $25.6m (FY14: $20.7m).  Dairy sector - strong performance in Western Vic and consistent result in Gippsland after slow start to season; volumes up on prior period.  Aquafeed performa

5. Slide 5: Legacy Landholdings

   Legacy Landholdings For personal use only  Dry Creek (pictured)  Expression of Interest process concluded in late 2014 with strong levels of interest registered  All 4 sections of the residual Dry Creek site in SA are currently being tendered for sale  Nelson Cove  Working through exclusive Gov

6. Slide 6: Consolidated Financials – Half Year to Dec 2014

   For personal use only CONSOLIDATED FINANCIALS HALF YEAR TO 31 DEC 2014 6

7. Slide 7: Balance sheet - Assets

   Balance sheet - Assets For personal use only Balance Sheet Dec June Dec  Assets held for sale - Dandenong site - in $m 2014 2014 2013 reclassified as Investment Property from Held for sale & Dalby sold in the period Assets held for sale - 1.4 -  Other Current Assets:  Inventories - up by $12.9m w

8. Slide 8: Balance sheet - Liabilities

   Balance sheet - Liabilities For personal use only Balance Sheet Dec June Dec - in $m 2014 2014 2013  Current payables - up $13.7m reflective of increased trading activity & higher inventory Current payables 143.1 129.4 127.7 holdings  Current provisions - Current provisions 14.4 13.1 12.2 reclassi

9. Slide 9: Cash flow performance

   Cash flow performance For personal use only Cash flow in $m 1H 1H  Working capital - reflects balance FY15 FY14 FY14 sheet movements Consolidated EBITDA 26.0 21.0 41.0  Maintenance capex - remains Movement in working capital (12.9) (19.5) (5.5) within aggregate DA Maintenance capex (5.7) (5.3) (11

10. Slide 10: Next twelve months focus

    Next twelve months focus For personal use only  Safety - continuing journey to improve safety at Ridley  New feedmill at NE Geelong - with the site acquired & Government grant funding now in place, secure the volume, freight, and development approvals required for the new poultry and pig feedmill

11. Slide 11: Ridley Business

    Ridley Business Australia’s leading producer of premium quality, high For personal use only performance animal nutrition solutions  Realise incremental value from existing assets, recent investments and acquisitions  Contract new volumes and freight arrangements to achieve Ridley financial hurdles

12. Slide 12: Tim Hart, Managing Director and CEO

    Tim Hart Managing Director and Chief Executive Officer For personal use only Ridley Corporation Limited Tel +61 3 8624 6500 ABN 33 006 708 765 Fax +61 3 8624 6514 Level 4, 565 Bourke Street Mobile +61 404 480 542 Melbourne, VIC. 3000 Web www.ridley.com.au Australia Email tim.hart@ridley.com.au 12

13. Slide 13: Appendices – Background History

    For personal use only APPENDICES BACKGROUND HISTORY 13

14. Slide 14: Corporate snapshot

    Corporate snapshot Corporate focus: Australia’s leading supplier of premium quality, high performance animal nutrition solutions For personal use only ASX – as at close of RIC 1 year RIC share price performance benchmarked to Small Ords: business on 13 Feb 2015 Share price $1.075 Shares on issue 307

15. Slide 15: Sector sales volume history

    Sector sales volume history For personal use only Sector FY15 FY14 FY13 FY12 FY11 FY10 Long (kt) (kt) (kt) (kt) (kt) (kt) term outlook 1H Poultry 514 1,019 872 933 900 764 Aqua-feed 33 50 42 47 50 47 Packaged 43 90 90 85 84 90 Dairy 158 275 251 260 236 215 Pig 83 178 184 197 224 325 Supplements 10 2

16. Slide 16: Brands and customers

    Brands and customers Brand Overview Customers / market position For personal use only Barastoc offers a range of pellets, meals, concentrates and premixes specifically for- Bulk customers range from the small independ- mulated to meet the nutritional requirements of dairy cattle, pigs, poultry, hors

17. Slide 17: Locations & sectors

    Locations & sectors For personal use only 17

18. Slide 18: Introduction to Rendering

    Introduction to Rendering For personal use only  Key component of sustainable agriculture  One third to one half of every animal produced in Australia for meat, milk, egg & fibre food products is not consumed by humans  Process by which low economic value matter from meat & food processing is tra

19. Slide 19: Growth opportunities

    Growth opportunities For personal use only Capture market share with Long term, cost effective, customer value proposition & surety of highest quality innovative protein sources to supply to provide solutions extend the superior product, for customer expansion safety & service offering and capital c

20. Slide 20: Dry Creek

    Dry Creek  Process being run to sell the 4 sections of the residual Dry Creek site in SA For personal use only  Opens up opportunities for horticulture, aquaculture, carbon capture, spoil disposal, salt production, tourism and leisure, and urban development  Ridley working through submissions wit

21. Slide 21: Nelson Cove

    Nelson Cove Ridley and partner Sanctuary Living working together to: For personal use only  secure the balance of the Moolap land through the exclusive Government negotiation process  conclude the engineering studies to confirm project construction feasibility  proceed with Environmental Effects

22. Slide 22: Nelson Cove

    Nelson Cove For personal use only A fully integrated, master planned, waterfront community within 3kms from Geelong will:  create thousands of jobs for decades  stimulate capital investment in new businesses  have extensive wetlands, open space and recreational land  inject significant economic

23. Slide 23: Lara

    Lara For personal use only AVALON AIRSTRIP  912 hectare site at Lara - planning and investigations completed  Site available for purchase  Lara redevelopment potential for industrial and airport-related uses LARA SITE Melbourne  Minimal holding costs with expected ~60km upside for Ridley shareho

24. Slide 24: Outlook - Risks

    Outlook - Risks For personal use only  Cyclical fluctuations - diversified portfolio spreads the individual sector risk  Influence of domestic harvest - management of raw material price fluctuations through procurement practices and customer ownership of raw materials  Influence of natural pastur

25. Slide 25: Outlook - ANZ agriculture

    Outlook - ANZ agriculture For personal use only An increase in meat consumption of 16% by 2022 across key Asian Challenges: export markets of China, Japan,  Rising production costs Korea, Indonesia, Malaysia,  Market access Philippines, Thailand and Vietnam #  Logistics & infrastructure  Regulat

26. Slide 26: Outlook – Regional growth

    Outlook – Regional growth • Dairy & beef For personal use only • Animal meals and fats In 2012-13, Australian farms produced:- • High-performance raw materials • $13.2 bn of livestock (for meat) … all forecast to have strong export • $6.9 bn of livestock products (wool, dairy etc) growth • $2.3 bn o

27. Slide 27: Outlook – Ridley investment

    Outlook – Ridley investment For personal use only Ridley Sector Local or Species Position Growth Global?* in Sector Potential Salmon – Ridley well Local positioned in Aqua Strong (#2) High Prawn – Attractive blend of key Global local and global growth markets sectors Dairy Strong (#1) High Global Po

28. Slide 28: Outlook - Strategy

    Outlook - Strategy For personal use only Australia’s leading producer of premium quality, high performance animal nutrition solutions Ridley’s six pillar strategy for execution:  Safety  Our people  Customer focus  Operational excellence  Growth and asset renewal  Community / Sustainability 28

29. Slide 29: Outlook - an investment in Ridley

    Outlook - an investment in Ridley For personal use only  Organic growth through rising populations, land constraints, demand for protein and heightened concerns for food security #  Further sector consolidation opportunities  Risk mitigation through sector diversification  Significant value gene

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