Ricegrowers Ltd. Class B · ASX:SGLLV
Ricegrowers Ltd. Class B — IPO Roadshow (June 2009)
35 slides from Ricegrowers Ltd. Class B's IPO roadshow presentation, June 2009
Slide 1: SunRice Capital Raising
SunRice Capital Raising June 2009 1
Slide 2: Chairman's Introduction
Chairman’s Introduction 2
Slide 3: Agenda
Your Company I Your Future Agenda • Business Update. • Capital Raising Offer. • Share Offer Mechanics. • Chairman’s Close. • Questions. 3
Slide 4: Business Update
Business Update Gary Helou 4
Slide 5: C09 – The Riverina drought continues
Your Company I Your Future C09 – The Riverina drought continues 1744 Paddy Delivered, '000 tons 1381 1241 1088 1040 529 390 305 166 19 65 99 00 01 02 03 04 05 06 07 08 C09 Crop Years 5
Slide 6: SunRice continues to perform very strongly.....
Your Company I Your Future SunRice continues to perform very strongly..... Half Year Group Results, May-Oct 08 Revenue, millions Net Profit, millions $60 $457 $356 $354 $8 $7 1H C07 2H C07 1HC08 1H C07 2H C07 1HC08 6
Slide 7: C2008 and Beyond
Your Company I Your Future C2008 and Beyond • Despite the ongoing Riverina drought, we continue to deliver strong results through: – Global Trading. – Rice Foods: Meals and Snacks. – Investments: Riviana and CopRice. 7
Slide 8: Global Trading: Source of Profit and Growth
Your Company I Your Future Global Trading: Source of Profit and Growth • SunRice brands are being drought-proofed – Flexible and global supply network. – Strategic Investments and Alliances: – US Investment: SunFoods securing supply of MG rice. – Supply Alliances in China, Thailand, Vietnam and Egyp
Slide 9: Global Rice Markets: World medium and long grain prices
Your Company I Your Future Global Rice Markets: World medium and long grain prices $1,400 $1,200 $1,000 Medium Grain US No.1 FOB Sacramento $800 Long Grain Thai 100% B $600 FOB Bangkok $400 $200 Apr 04 Apr 05 Apr 06 Apr 07 Apr 08 Apr 09 Jul 04 Oct 04 Jan 05 Jul 05 Oct 05 Jan 06 Jul 06 Oct 06 Jan 07
Slide 10: Continued Focus on Value Add via Marketing Innovation
Your Company I Your Future Continued Focus on Value Add via Marketing Innovation Table Rice Packaging Ultra Convenience Meals Snacking Innovation
Slide 11: Our Brands are not in drought.....
Your Company I Your Future Our Brands are not in drought..... In C2008 we: • Maintained supply of our brands in the face of extreme price and supply volatility in global rice markets. • Upgraded Table Rice packaging. • Executed new value-added product launches: – Middle East. – Retort family packs.
Slide 12: Australian operations today
Your Company I Your Future Australian operations today • A re-configured business structure. • Retention of core skills and infrastructure in Australia. • Integrated into flexible and global supply network.
Slide 13: Our global presence
Your Company I Your Future Our global presence USA/Canada Asia Middle East Pacific Australia/NZ 13
Slide 14: SunRice needs to address its Capital Structure in order to fund growth
Your Company I Your Future SunRice needs to address its Capital Structure in order to fund growth .... • It is important that SunRice develop and grow its permanent share capital base to: – Reduce reliance on short term funding. – Reduce overall debt. – Reduce gearing ratio. – Fund its growing rice
Slide 15: Consolidated Group Debt Evolution: 2005-09
Your Company I Your Future Consolidated Group Debt Evolution: 2005-09 Consolidated Group Debt Evolution : 2005-09 $450.0 $400.0 $350.0 $97.5 $- $87.7 $77.6 $300.0 $59.0 $42.7 $250.0 $28.3 $19.0 $200.0 $- $67.8 $150.0 $252.2 $246.5 $239.0 $243.8 $100.0 $136.2 $50.0 $- 2005 2006 2007 2008 2009 Bank De
Slide 16: Consolidated Group Capital Evolution: 2005-09
Your Company I Your Future Consolidated Group Capital Evolution: 2005-09 Consolidated Group Capital Evolution : 2005-09 $250.0 $200.0 $16.8 $25.8 $150.0 $58.1 $5.2 $20.1 $4.6 $100.0 $5.1 $20.0 $4.6 $19.9 $22.6 $54.2 $39.6 $31.5 $31.0 $112.3 $50.0 $46.9 $53.3 $36.6 $38.3 $- 2005 2006 2007 2008 Oct. 2
Slide 17: Consolidated Group Gearing Ratios
Your Company I Your Future Consolidated Group Gearing Ratios Consolidated Group Gearing Ratios 400% 348% 350% 321% 300% 267% 250% 220% 200% 160% 150% Gearing Ratio Target of 70% 100% 50% 0% 2005 2006 2007 2008 2009 Current Borrowings 17
Slide 18: Gearing Ratio Reduction
Your Company I Your Future Gearing Ratio Reduction • Gearing Ratio (Debt/Equity) is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus borrowed funds. Gearing is a key financial benchmark in today’s credit squeezed financial mark
Slide 19: Capital Raising Offer
Capital Raising Offer Grant Latta 19
Slide 20: Capital Raising Rationale
Your Company I Your Future Capital Raising Rationale • In the current financial climate, SunRice requires a solid base of share capital to: – Ensure its financial strength and stability by: • Reducing its reliance on short term funding and debt. • Improving its gearing ratio. – Provide the flexibili
Slide 21: Capital Raising Offer
Your Company I Your Future Capital Raising Offer • A Prospectus will reach you shortly detailing an opportunity to subscribe for B Class Shares, which can be purchased via: • Cash, Rice Bonds, and the RMB Equity Rollover Payment due to be paid in July 2009 (as in previous offers). • A new RMB Equity
Slide 22: RMB Equity Conversion Offer
Your Company I Your Future RMB Equity Conversion Offer The Prospectus is accompanied by: • A personalised letter detailing what the offer means to you; and • An independent expert’s report, prepared by KPMG, assessing the fairness of the RMB Equity Conversion Offer. The Offer comprises: • A cash com
Slide 23: Share Price Calculation
Your Company I Your Future Share Price Calculation • Under the RMB Equity Conversion Offer, share prices will range from $2.14 for RMB Equity maturing in 2009, through to $3.715 for RMB Equity maturing in 2016. Year of Maturity Share Issue Price 2009 $2.140 2010 $2.365 2011 $2.590 2012 $2.815 2013 $
Slide 24: Share Price Calculation
Your Company I Your Future Share Price Calculation • The annual escalation in the price of the B Class Shares reflects the time value of money, as non interest bearing RMB Equity repayable over the next 7 years is being exchanged for tradeable B Class Shares with an immediate entitlement to particip
Slide 25: Cash Flow Impact
Your Company I Your Future Cash Flow Impact • The RMB Equity Conversion Offer has been designed to ensure growers have cash flow arising from the offer in July 2009. • This cash flow would come from: – The 10% cash component; and – The dividends you will receive from new shares. • On average, this a
Slide 26: Share Offer Mechanics
Share Offer Mechanics Claude Cassar 26
Slide 27: The Offer
Your Company I Your Future The Offer Shares are offered for subscription by: • Existing B Class Shareholders or their Approved Entities i.e. Super Funds; and • RMB Equity Holders: – Who wish to accept the RMB Conversion Offer and convert all of their RMB Equity into B Class Shares; or – Who wish to
Slide 28: Offer to Existing B Class Shareholders
Your Company I Your Future Offer to Existing B Class Shareholders For B Class Shareholders who do not participate in the RMB Equity Conversion Offer: • The issue price of the shares will be $2.14/share. • Flexible Payment Options, including any combination of: – Cash (cheque or EFT). – Rice Bonds (a
Slide 29: Existing B Class Shareholders Application and Allocation
Your Company I Your Future Existing B Class Shareholders Application and Allocation • The Prospectus contains an Application Form which covers the use of any or all of the forms of payment previously mentioned. • You make the selection and we will calculate the number of shares to be issued and the
Slide 30: The RMB Equity Conversion Offer
Your Company I Your Future The RMB Equity Conversion Offer • As previously presented, the Conversion Offer has both a cash and share component. • RMB Equity Holders who accept the Conversion Offer will acquire B Class Shares by: • The conversion of 90% of their RMB Equity into shares in accordance w
Slide 31: RMB Equity Conversion
Your Company I Your Future RMB Equity Conversion • If you’re an RMB Equity Holder, your Application and Acceptance Form includes a calculation of the cash payment and the number of B Class Shares that you would receive if you accept the Conversion Offer. • If you require any assistance, please conta
Slide 32: Chairman's Close
Chairman’s Close 32
Slide 33: Your Company. Your Future.
Your Company I Your Future Your Company. Your Future. • This Capital Raising Offer is important to shareholders, RMB Equity Holders, and SunRice. • The RMB Equity Conversion Offer releases non-interest bearing equity into tradeable B Class Shares, with immediate dividend entitlements, while investin
Slide 34: Your Company. Your Future.
Your Company I Your Future Your Company. Your Future. • This Capital Raising Offer is important and we are seeking a strong response. • Please read the Prospectus and consult your financial advisor before applying. • Hear more at our Investor Road Shows, to be held at 10am in Deniliquin and 2pm in D
Slide 35: Questions
Questions 35
Ricegrowers Limited (SunRice) — IPO Roadshow (June 2009) on 6ix