Ridley Corporation Limited · ASX:RIC
Ridley — Shareholder Meeting (October 2005)
31 slides from Ridley's shareholder meeting presentation, Oct 31, 2005
Slide 1: Ridley
RIDLEY ll
Slide 2: Introduction
Introduction * Ridley Nutrition Solutions — Sweetlix — acquired July 04 - US$16.7m * Cheetham Salt — Dry Creek — acquired May 05 - A$54.5m
Slide 3: Ridley Nutrition Solutions
Ridley Nutrition Solutions
Slide 4: RNS Business Units
RNS Business Units Block Equine Operations Nutrition Specialty Products * Characteristics of RNS range are: * Sustainable high margin sales * Packaged delivery format rather than bulk * Nutritional supplements rather than base diet
Slide 5: Ridley Nutrition Solutions — "RNS"
Ridley Nutrition Solutions — "RNS" « Established as a separate business in 2005 * RNS is a significant part of our business. In FY05, it accounted for: * 17% of Ridley Inc. sales * 31% of Ridley Inc. EBITDA * Strong market position — leading "free choice" supplements provider in North America * Sign
Slide 6: RNS Focus
RNS Focus * Focus on beef, dairy and equine « "Free choice" supplements, which provide proteins and minerals to complement pasture « Feed blocks provide a controlled intake of nutrients, which helps producers control costs « Large range of patented products
Slide 7: Key growth drivers for RNS
Key growth drivers for RNS « Research and Development effort « Extensive product training for staff and distributor network * Strong platform for margin protection. Brand led rather than commodity-based * Geographical coverage and product reach « Leverage existing customer relationships and distribu
Slide 8: Ridley Block Operations
Ridley Block Operations RIDLEY BLOCK OPERATIONS
Slide 9: Ridley Block Operations
Ridley Block Operations * Ridley Block Operations is the largest low-moisture block manufacturer in North America * CRYSTALYX® is the most recognized brand of livestock supplements in North America * CRYSTALYX® can help limit the time cattle graze on environmentally sensitive areas * CRYSTALYX® has
Slide 10: Locations
Locations
Slide 11: Sweetlix
Sweetlix Sweetlix LIVESTOCK SUPPLEMENT SYSTEM
Slide 12: Sweetlix acquisition
Sweetlix acquisition * Acquired July 2004 « Market share increased to 23% from 16% « New products — broader range * Strong brand portfolio to complement existing brands « Improved geographic spread and access to new customers for existing business « Marketing and cost synergies « Experienced managem
Slide 13: The Sweetlix Product Range
The Sweetlix Product Range aignlenne
Slide 14: Geographic spread — Sweetlix facilities
Geographic spread — Sweetlix facilities... Fort Worth Texas er Sweetlix Facilities
Slide 15: ... complement existing RBO facilities
... complement existing RBO facilities ih Stockton _Fort Worth ie Buffalo _ : tke Sweetlix facilities 2, RBO Facilities
Slide 16: Ridley Equine Nutrition
Ridley Equine Nutrition
Slide 17: Ridley Equine Nutrition
Ridley Equine Nutrition * Dedicated mills for the manufacture of equine products. Removes cross-contamination risk * Located in Kentucky and Pennsylvania, areas with high concentration of performance horses « Modern facilities
Slide 18: US Horse Population — Equine facilities
US Horse Population — Equine facilities Number of Horses BB over 200,000 109,000 to 200,000 5,000 te 100,000 Less than 5,000
Slide 19: Ridley Specialty Products
Ridley Specialty Products Pa RIDLEY SPECIALTY PRODUCTS
Slide 20: Ridley Specialty Products
Ridley Specialty Products * Target consumer is the hobby farmer « New area for RNS. Just moving out of start up phase * Private label distributed to mass market via rural stores * Attractive margins and potential to grow tonnage in different market sector
Slide 21: RNS growth
250 - RNS growth 90 « A ‘= * Bars show tonnes (left axis) + 80 g 2 200 + Lines show $USm (right axis) | 70 oO * Compound annual growth in tonnes of 34% a + 60 150 4 o ~ 50 c c S ~ 40 2 100 + 3} - 30 50 - > 20 + 10 0! Lo 2002 2003 2004 2005 (—] Tonnes C—| Sweetlx om Sales
Slide 22: Plans for RNS
Plans for RNS * Continue to grow business * Synergies with Ridley Feed Operations * Capitalise on distribution channels and customer reach « Continue to develop and enhance products « Pursue export opportunities: *« Mexico * France * Chile « Japan * S Korea * Ireland * South Africa * Brazil
Slide 23: Cheetham Salt
Cheetham Salt &) Cheetham
Slide 24: Ne SS — — oo |
Ne SS — — oo |
Slide 25: Dry Creek Financials
Dry Creek Financials Purchase Price $ 54.5m Stamp Duty $ 3.0m Legal & Incidental Costs $ 0.7m Total Acquisition Cost $ 58.2m EBITDA FY06 $ 7.0m
Slide 26: Dry Creek Salt Field is located on the outskirts of Adelaide
Dry Creek Salt Field is located on the outskirts of Adelaide, close to the Penrice plant e. Amcor Glass Plant _ /, (35kms from Penrice) “ & DRY CREEK SALT FIELD PENRICE |] . ; * 9000 ha of land, 4,500 ha salt field «10 km brine pipeline to Penrice BN 2 Ol (ACI) Glass Plant (10kms from Penrice) @ ADE
Slide 27: of
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Slide 29: Supply 600,000 tonnes p.a to Penrice under a take or pay contract
Slide 30: Penrice Soda Holdings
Penrice Soda Holdings * Penrice is the domestic market leader — 77 per cent of Soda Ash market; 75 per cent of Sodium Bicarbonate market * Sole domestic manufacturer of Soda Ash and Sodium Bicarbonate — core ingredients in glass, detergents and stockfeed
Slide 31: Cheetham Final uses/products
@ Cheetham @ Final uses/products * glass (eg wine bottles) coin en * detergents & soaps « chemical manufacture * mining & metals mp Australia * animal feed * baking soda (food) * industrial mm Japan. bath additives * kidney dialysis * food =) Other overseas markets LEY