Ridley Corporation Limited · ASX:RIC
Ridley — Credit Suisse & FNZC F&B Focus Day 2017
24 slides from Ridley's conference presentation, Apr 6, 2017
Slide 1: Ridley Presentation: Creating Value in Volatile Markets
RIDLEY PRESENTATION CREDIT SUISSE & FNZC F&B FOCUS DAY CREATING VALUE IN VOLATILE MARKETS 6 April 2017
Slide 2: Agenda
AGENDA Ridley Overview and Mission Statement Case studies of Value Creation in Volatile Markets Packaged Products - Stable, growing earnings Novacq™ - High growth global potential 2
Slide 3: Ridley Overview: Locations and Sectors
RIDLEY OVERVIEW | ¢ RIDLEY | RIDLEY LOCATIONS AND SECTORS jausiness Unit [structure o Monogastric Ruminant Packaged Products Aquateeds Supplemonts cavern e Monogastric Ruminant Supplements | Rendering Q ‘ z — 2 eS r ——
Slide 4: Creating Value in Volatile Markets
CREATING VALUE IN VOLATILE MARKETS: “Our Mission is to improve the cost of feed to yield ratio for our customers” CURRENT CORE BUSINESS ‘JAWS OF VALUE’ Safety – TRFR & Livestock LTIFR lead indicators Compliance Yield / Performance Nutrition – Quality - Ridley’s Mission is to DIFOTIS, Innovation - di
Slide 5: Case Study 1: Packaged Products - Stable, Growing Earnings
CASE STUDY 1 PACKAGED PRODUCTS - STABLE, GROWING EARNINGS 5
Slide 6: Packaged Products Overview
PACKAGED PRODUCTS OVERVIEW Packaged Products Business Unit contribution has gone from a minor sector to one of Ridley’s top 3 sectors. Encompasses Equine, Poultry, and Canine and includes key Ridley brands Barastoc, Cobber and Rumevite. Building brand equity across the range from a continuous
Slide 7: Understanding the Market
UNDERSTANDING THE MARKET Unlocking insights for a more powerful positioning and marketing mix… Real world consumer Market Intelligence for context research Understanding the consumer shopping experience Animal nutrition and palatability
Slide 8: Our New Packaging
OUR NEW PACKAGING Applying market insights to our Packaging Who is Cobber & what Tom & Jet. Kelpies will this product do? – synonymous with Australia’s outback. Strong, alert & Iconography – focused. providing more in depth detail Refreshed Cobber Meaty, bone shape for logo – strong strong teeth. re
Slide 9: The Challenge
THE CHALLENGE Creating brand awareness and recruiting new users Cobber dog products our most profitable packaged product, with room for growth. New packaging and innovative marketing campaign to promote and position Cobber as the Australian rural dog brand. Created The Cobber Challenge to outl
Slide 10: The Challenge: Significant Insight and Interest Generated
THE CHALLENGE Significant insight and interest generated Print and online media coverage in significant rural media with an estimated value of $250,000. Total sales and distribution up 5% with further activity to support growth over next 12 months. Significant flagship store estimate Cobber Wo
Slide 11: Barastoc Poultry Market Development
BARASTOC POULTRY MARKET DEVELOPMENT Making our poultry packaging work harder in store. Out with the old… In with the new… Point of Sale Product Development Consumer Promotions Advertising Online Applications
Slide 12: Barastoc Equine Market Development
BARASTOC EQUINE MARKET DEVELOPMENT New look equine range... Sponsored Riders Product Development Point of Sale Advertising Campaigns
Slide 13: Case Study 2: Novacq - High Growth Global Potential
CASE STUDY 2 NOVACQ™ - HIGH GROWTH GLOBAL POTENTIAL
Slide 14: What is Novacq?
CASE STUDY 2: NOVACQ™ What is Novacq™? Novacq™ is a patented CSIRO technology. It is a microbial biomass ingredient produced from the use of a carbon stream. Launch informative video 14
Slide 15: Ridley Novacq - Our Competitive Advantage
RIDLEY NOVACQTM – OUR COMPETITIVE ADVANTAGE HOW TO IMPROVE THE “JAWS OF VALUE” CSIRO Licence Livestock WITH NOVACQTM Yield / We have just extended our existing Performance licences to new territories and applications Enhanced Disease Optimum resistance to efficacy & diet viral/bacterial Brood stock
Slide 16: Yamba Novacq R&D Production Site
YAMBA NOVACQTM R&D PRODUCTION SITE 315km to Aquafeed site at Narangba 3 Ponds lined and actively producing Tru Blu Prawn NovacqTM farm Project milestones at Yamba: Ridley invested c.A$2m in calendar 2016 at Yamba to develop NovacqTM production, including pond preparation and fit-out, infrastructur
Slide 17: Chanthaburi, Thailand Joint Venture
CHANTHABURI, THAILAND JOINT VENTURE In addition to the existing feedmill, we have received approval to build two Current Feedmill, with 30,000 tonne blending facilities with p.a. capacity. 2nd line possible to increase to 55,000 tonnes within combined capacity of same 4 walls. c.140,000 tonnes (t)
Slide 18: Novacq Differentiation
NOVACQ™ DIFFERENTIATION 3 Potential Value Streams Growth - Improved Feed Conversion Ratio Prawn feed product trials including the Novacq™ ingredient consistently demonstrating growth rate improvements in the vicinity of 40% or more and improvement in FCR of 20-30%. Health - Enhance resistance
Slide 19: 37% Increase in Survival Rate
RECENT NOVACQ™ AUSTRALIAN TRIAL RESULTS On 3 April 2017, Ridley advised the market that in recent prawn trials at Mackay, a 37% improvement in prawn survival rates had been achieved with NovacqTM diets compared to the control ponds. 37% INCREASE IN SURVIVAL RATE * The survival rate of the Novacq
Slide 20: Global Estimated Shrimp Feed Demand
GLOBAL ESTIMATED SHRIMP FEED DEMAND By securing the licence from CSIRO for Rest of World, addressable market is in line with China and Vietnam market size, with Ecuador and India the largest outside of our original licensed territories. We can also sell into China and Vietnam while those licence hol
Slide 21: Key CSIRO Relationship
KEY CSIRO RELATIONSHIP Commercialising Australian science on a global stage. Initial licence agreement with CSIRO was specific to crustaceans Covered production and distribution of Novacq™ in Australia, Thailand and Indonesia, with distribution rights in Malaysia and Philippines. As of 28 Marc
Slide 22: Next Steps
NEXT STEPS Continue to develop value proposition: Validate prawn performance in tank and commercial trials. CSIRO Strategic Research Alliance: Initial 5 year research plan investigating potential Novacq™ applications, including across other species; Ridley has option to extend for a further
Slide 23: Summary
SUMMARY Thinking outside the box: Adding value and growth through both stable and new streams. New initiatives and key strategic partnerships. Access to markets on a global scale. 23
Slide 24: Contact Details
CONTACT DETAILS Tim Hart Managing Director and Chief Executive Officer Email: Tim.Hart@ridley.com.au Tel: +61 3 8624 6500 Fax: +61 3 8624 6414 Mobile: +61 404 480 542 Ridley Corporation Limited ABN 33 006 708 765 Level 4, 565 Bourke Street Melbourne, VIC. 3000 Australia www.ridley.com.au