Slide 1: Investor Presentation – Half Year to 31 December 2016
RIDLEY CORPORATION LIMITED For personal use only INVESTOR PRESENTATION – HALF YEAR TO 31 DECEMBER 2016 1
Slide 2: Half year highlights
RIDLEY For personal use only Positive growth in Poultry and Pig sectors. Fish and white meat rendering strong first half, offset by lower supply of red meat. Tough first half year in Dairy and Aquafeed, but stronger second half year predicted for both sectors after rally in November and Decemb
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS AgriProducts half year result of $22.9m For personal use only Consolidated result 1H 1H 1H FY16 FY15 in a period of difficult trading conditions - in $m FY17 FY16 FY15 in a couple of key Ridley sectors. EBIT - AgriProducts 22.9 27.7 25.6 53.7 50.4 Property costs - controllin
Slide 4: AgriProducts
AGRIPRODUCTS For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2016 HALF YEAR 4
Slide 5: Financial Highlights – AgriProducts
FINANCIAL HIGHLIGHTS EBIT result for agribusiness of $22.9m - below the long term growth trend path as For personal use only Dairy and Aquafeed sectors confront severe economic and commercial issues. Poultry - reliable year on year performance, with slight increases in volume reflective of consu
Slide 6: Wasleys Rebuild
WASLEYS REBUILD Wasleys feedmill (Pinery bushfire Nov 2015) Wasleys rejuvenation (Nov 2016) For personal use only Site decimated by bushfire, with extensive damage to storage, New for old replacement of fixed assets, with premix, grain intake facilities. insurance proceeds recorded as sundry
Slide 7: Events Post Balance Date
EVENTS POST BALANCE DATE 1 OF 2 Tasmania feedmill (20 Jan 2017) NovacqTM technology (16 Jan 2017) For personal use only Site secured post balance date at Westbury for new feedmill to service NovacqTM harvesting and production technology Tasmanian salmon industry. secured on exclusive basis.
Slide 8: Lara feedmill
EVENTS POST BALANCE DATE 2 OF 2 New meal silos Existing silo storage New tower capping – For personal use only early Aug’16 Lara feedmill Outloading and Official launch on 6 February weighbridge 2017. State of the art facility incorporating latest developments in feedmilling technology. Can no
Slide 9: Novacq
NOVACQTM For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2016 HALF YEAR 9
Slide 10: Novacq – Our Competitive Advantage
NOVACQTM – OUR COMPETITIVE ADVANTAGE HOW TO CSIRO Licence For personal use only IMPROVE THE “JAWS OF Crustacean – Australia, Thailand, Indonesia, Malaysia & Philippines Licence Livestock VALUE” WITH We are endeavouring to extend our existing NOVACQTM licences to new territories and applications Yiel
Slide 11: Novacq – The Size of the Prize
NOVACQ™ - THE SIZE OF THE PRIZE Estimated shrimp/prawn feed requirement assuming 1.3 standard FCR # In '000 metric tonnes For personal use only 7,000 CSIRO is yet to license NovacqTM for Rest of China and Vietnam World, excluding China and VietNam. 6,000 Rest of the World Ridley can sell Ridley lice
Slide 12: Novacq – A Revolution in Feed
NOVACQ™ - A REVOLUTION IN FEED Lab-based trials over the past 4 years in both Australia and Thailand, For personal use only Harvested consistently demonstrated Biomass improvements of 40% or more. NovacqTM to be dewatered Trials also exhibit improvements in animal well-being via enhanced and dri
Slide 13: Yamba – Last Six Months
YAMBA - LAST SIX MONTHS 7.5Ha of prawn ponds in Yamba, NSW secured for NovacqTM production For personal use only Ponds have been lined, silos erected and bunded, and site secured. Equipment has been developed for continuous cycle of production and harvest, with ongoing refinements to further imp
Slide 14: Yamba – Next Twelve Months
YAMBA - NEXT TWELVE MONTHS Strategy for Yamba: For personal use only Continuous improvement in all facets of production cycle is critical for environmental sustainability and optimisation of Service the Australian market. shareholder returns. Export trial quantities to Thailand to expedite in-
Slide 15: Chanthaburi – Last Six Months
CHANTHABURI – LAST SIX MONTHS Developing engineering design For personal use only for a blending operation to produce a prawn feed pre-mix combining NovacqTM with Proteins, Vitamins & Minerals. Approval received to build two Current Feedmill, with 30kt blending facilities with c.140kt capacity.
Slide 16: Chanthaburi – Next Twelve Months (1)
For personal use only CHANTHABURI - NEXT TWELVE MONTHS (1) Feedmill Feedmill co-owner’s residence and Fallow prawn ponds for Gulf of Thailand Sureerath Prawn Farm headquarters potential lease & conversion to NovacqTM production With import licence now secured, start to produce new feed range inclu
Slide 17: Chanthaburi – Next Twelve Months (2)
FINANCIAL HIGHLIGHTS From the Chanthaburi and Trat, region has a high concentration of prawn farms Capacity to expand For personal use only and good logistics. NovacqTM Trat already has 4 lane highway access, production by an airport, & a deep water port being built securing other to promote the
Slide 18: Property
PROPERTY For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2016 HALF YEAR 18
Slide 19: Nelson Cove Coastal Solution
NELSON COVE COASTAL SOLUTION Publication of State Government’s master plan for the Corio Bay peninsula overdue - For personal use only Resheduled from December 2016 to “early 2017” due to its strategic importance for the region. Will give insight into nature & timing of development opportunity f
Slide 20: Consolidated Financials
CONSOLIDATED FINANCIALS For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2016 HALF YEAR 20
Slide 21: Balance Sheet - Assets
BALANCE SHEET - ASSETS Assets held for sale / Investment property - For personal use only Balance Sheet Dec Dec June June - in $m 2016 2015 2016 2015 comprises equity accounted JV investment disposed of on 31 January 2017 for $3.3m Assets held for sale 2.3 33.5 - 34.1 gross cash proceeds and book
Slide 22: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Payables - $33.0m reduction reflects For personal use only Balance Sheet Dec Dec June June 2016 2015 2016 2015 lower drawdown of trade payables facility - in $m & timing of payments within trading terms. Current payables 123.0 156.0 145.9 158.7 Tax - final FY2016 tax
Slide 23: Cash Flow
CASH FLOW Consolidated Cash flow - in $m 1H 1H FY16 FY15 In a challenging trading period, a For personal use only FY17 FY16 strong consolidated EBITDA of Consolidated EBITDA 26.9 27.9 53.5 51.0 $26.9m. Movement in working capital (26.1) (35.6) (19.3) 7.0 Working capital affected by delay in Main
Slide 24: Outlook
OUTLOOK For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2016 HALF YEAR 24
Slide 25: Next Twelve Months Focus
NEXT TWELVE MONTHS FOCUS Safety - continue our journey to improve safety at Ridley. For personal use only Organic growth - extract further earnings uplifts from existing assets in other sectors through process of continuous improvement & strategic asset investment. Lara feedmill - expedite the
Slide 26: Next Twelve Months – Dairy & Aquafeed
NEXT TWELVE MONTHS - DAIRY & AQUAFEED Dairy Aquafeed For personal use only Dairy farmer confidence jolted by sharp falls in milk Significant percentage of production volume was for Huon, price in May/June, causing downturn in the most although 2016 earnings impacted by warm water and El cycl
Slide 27: Outlook – Operations
OUTLOOK - OPERATIONS Poultry - keep working harder to improve customer returns by providing a premium quality For personal use only and service and supporting the ongoing industry growth in both broiler (meat) and layer (egg) based on consumer demand for healthy, value for money meat protein sourc
Slide 28: Contact Details
CONTACT DETAILS For personal use only 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.ri