Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Shareholder Meeting (February 2008)
24 slides from Graincorp Limited Class A's shareholder meeting presentation, Feb 27, 2008
Slide 1: Company announcement
For personal use only Company announcement GrainCorp Limited ABN 60 057 186 035 Date: 7 February 2008 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com PUBLIC ANNOUNCEMENT Please find attached for immediate release the Managing Director’s presentation to the Ann
Slide 2: Annual General Meeting 27 February 2008
For personal use only ANNUAL GENERAL MEETING 27 FEBRUARY 2008
Slide 3: Business Presentation
Business Presentation For personal use only Tom Keene Managing Director
Slide 4: 2006/07 – the year in review
2006/07 – the year in review For personal use only GrainCorp, like most agribusinesses, has been impacted by drought. • Lower grain receivals in Storage & Handling; EBITDA of $17.9m Diversification strategy has benefited the business • Allied Mills $15.8 m contribution, exceeding ROI target. • E
Slide 5: Strategic plan on track
Strategic plan on track For personal use only FY09 Targets: ROE ≥ 10% Support businesses Profit ≥ $40m $5m Domestic market share ≥ 50% Allied Mills $6.1m + $12.4m $3m Ports by FY09 $6m -$1.1m Network $8.8m productivity $3m Domestic $4.5m market $1.5m $26m new share $9m $3m EBITDA $13.6m $4.6m FY07 $
Slide 6: Strong growth outlook for core business areas
Strong growth outlook for core business areas For personal use only Storage & Handling • Widespread rainfall since December 2007 with expectations of a good summer and winter cropping season • A number of non-grain port projects come on line in 2008 • GrainCorp expects to be involved in rail opera
Slide 7: Storage & Handling – leveraging the network
For personal use only Storage & Handling – leveraging the network
Slide 8: GrainCorp has a sustainable network to service domestic & international markets
GrainCorp has a sustainable network to service domestic & international markets For personal use only Infrastructure • 284 silos, 9 port terminals • 21 million tonne capacity Domestic & export customers • Grain & other bulk dry commodities • 10,000 grain growers • Over 100 end users and traders
Slide 9: The challenge is to manage the variable grain task and increase network utilisation
The challenge is to manage the variable grain task and increase network utilisation. For personal use only 30 KEY STRATEGIES: 25 •Ports diversification •Network productivity 20 •Domestic market Million tonnes Carryover into next yr 15 Outloadings - international Outloadings - domestic Total receival
Slide 10: Increasing port utilisation – on track for 10-15% increase by 2009
Increasing port utilisation – on track for 10-15% increase by 2009 For personal use only Significant port opportunities in the pipeline at various stages of evaluation Compatibility with soft commodity terminals •Specialist resources for port development employed Long lead times for infrastructure p
Slide 11: Grain Marketing – domestic & international trading expansion
For personal use only Grain Marketing– domestic & international trading expansion
Slide 12: Marketing EBITDA of $24.1m (up 6%)
Marketing EBITDA of $24.1 m (up 6%) For personal use only FY07 EBITDA contribution • Strong EBITDA performance – Growth in pools and pool finance products in non-traditional states Wool Pools (WA/SA) 9% 13% – Container export program 200,000 tonnes in 2007/08 (75,000 in FY07) Trading – Improved marg
Slide 13: Bulk wheat export markets
BULK WHEAT EXPORT MARKETS For personal use only 50,000 tonne bulk permit granted (Feb 2008) Federal Govt reform policy from mid 2008 Global environment • Optimistic price outlook • Soft commodity boom • Global grain stocks shortages Australian wheat exports of up to 10-15 million
Slide 14: Allied Mills – diversification through value added products
For personal use only Allied Mills – diversification through value added products
Slide 15: FY07 solid performance from Allied Mills
FY07 solid performance from Allied Mills For personal use only Strong contribution of $15.8 m & 16% return on original GNC investment Strong performance in sales and service Target Robust cost management Completion of Summer Hill sale Well positioned for growth
Slide 16: Allied Mills is not just a flour miller…
Allied Mills is not just a flour miller… For personal use only Flour represents 80% of volume, 55% EBIT
Slide 17: Outlook for 2008 and beyond
For personal use only Outlook for 2008 and beyond
Slide 18: Outlook for 2007/08
Outlook for 2007/08 For personal use only Grain receivals • Forecast of 4-5 million tonnes (winter & summer crop) • Winter: 3.7 million tonnes • Summer: 0.5 million tonnes to date Low carry in stock • 1.2 million tonnes carry into FY08 (4.9 million in FY07) Forecast similar financial performan
Slide 19: GrainCorp - ready for new opportunities: further growth
GrainCorp - ready for new opportunities For personal use only 1. In 2008, there will be further growth of the business supported by capital raising in December 2007 Non-grain Domestic International markets markets • Rail freight operations will strengthen the grain supply Rail freight chain and supp
Slide 20: GrainCorp - ready for new opportunities: Hunter Grain
GrainCorp - ready for new opportunities For personal use only 2. In 2008, GNC’s product offering will expand through Hunter Grain to non-grain domestic market. HUNTER GRAIN Non-grain Number 1 soybean meal trader in Australia Hunter Importer of meals and other products Grain Strong position in
Slide 21: GrainCorp - ready for new opportunities: bulk wheat markets
GrainCorp - ready for new opportunities For personal use only 3. In 2008, GrainCorp will participate in bulk wheat markets GNC has the credentials and ability to leverage existing skills, systems and experience to expand grain marketing Customers Solid customer base, who are seeking to buy wheat fr
Slide 22: GrainCorp - ready for new opportunities
GrainCorp - ready for new opportunities For personal use only 1. In 2008, there will be further growth of the business 2. In 2008, GrainCorp’s product offering will expand through Hunter Grain 3. In 2008, GrainCorp will participate in bulk wheat markets
Slide 23: Questions
For personal use only QUESTIONS
Slide 24: GrainCorp Limited
For personal use only GrainCorp Limited Tower 1, Level 17, 201 Sussex Street, Darling Park Sydney NSW 2000 PO Box A268, Sydney South NSW 1235 Telephone: (02) 9325 9100 Facsimile: (02) 9325 9180 www.graincorp.com.au