Ricegrowers Ltd. Class B · ASX:SGLLV
Ricegrowers Ltd. Class B — SunRice — 2015 RGA Annual Conference
15 slides from Ricegrowers Ltd. Class B's conference presentation, Aug 7, 2015
Slide 1: 2015 RGA Annual Conference SunRice Update
2015 RGA Annual Conference SunRice Update Mr. Laurie Arthur SunRice Chairman 7 August 2015
Slide 2: Agenda
Agenda § C15 Outlook § Global rice market dynamics § C16 Prospects § Capital Structure Review Update
Slide 3: C15 Outlook: Our business and industry continues to be in a strong position
C15 Outlook: Our business and industry continues to be in a strong position § Delivered outstanding full year result in 2014/15 § We continue to target 950,000 tonnes of rice annually and have markets available for 1.15 million tonnes § SunRice growth strategy delivering results, maximising grower r
Slide 4: Paddy Price
Paddy Price § Delivered more than $330 million in payments to our growers in C14 § Strong price driven by performance of our Rice Pool business: − Impressive sales and profit growth across international markets − Improved milling yields for the C14 crop − Strong global pricing § C15 outlook: − Harve
Slide 5: Global rice market dynamics
Global rice market dynamics § Overall, stable global market conditions currently for Australian rice § Branded Medium Grain market is holding firm, with cautious outlook for commodity market: − Medium Grain market is holding high inventory − California likely to be in drought − Other MG exporters em
Slide 6: Global Pricing – Medium Grain and Long Grain
Global Pricing – Medium Grain and Long Grain 6
Slide 7: C14 government tender markets - falling prices for Californian rice supplied to Japan
C14 government tender markets - falling prices for Californian rice supplied to Japan U.S. U.S. COFCO COFCO U.S. COFCO U.S. Sun Rice -------------------------------U.S.------------- 7
Slide 8: The California drought – some key statistics
The California drought – some key statistics § California now entering its 4th year of drought § YTD rainfall showing slight improvement on last year’s figure of 17% of normal levels § YTD snowpack in Northern Sierra continues at an abysmal 5% of normal § Water allocation cut by 25%-35% but Californ
Slide 9: Foreign exchange movements delivering mixed results
Foreign exchange movements delivering mixed results 9
Slide 10: C16: Rice an attractive prospect in a difficult environment
C16: Rice an attractive prospect in a difficult environment § Water availability is expected to result in a substantially smaller C16 crop § However global outlook means price prospects are positive § SunRice is focused on supporting Riverina rice growers and encouraging production via: − Pricing si
Slide 11: Capital Structure Review Update
Capital Structure Review Update § The potential structure represents a significant opportunity: − To change the way we fund SunRice’s future growth − Build an Australian-controlled food company of scale that can more effectively compete in global markets to benefit all growers and shareholders − Imp
Slide 12: About the potential model
About the potential model § The Board believes this is a strong workable model that can equip SunRice and its growers and shareholders for the future § The potential model preserves the following fundamental elements of the SunRice business: ‒ The SunRice Board would continue to comprise a majority
Slide 13: Next Steps
Next Steps § Your input will determine the next steps in the process and whether or not it proceeds to a shareholder vote § We urge all growers and shareholders to have your say in determining SunRice’s future: § Access the Update Booklet, presentations, video and FAQs in the investor section of www
Slide 14: SunRice Annual General Meeting
SunRice Annual General Meeting Friday 21 August 10.30am Jerilderie Civic Hall, Jerilderie We urge you to attend for an update on: - Business Performance - SunRice Group Strategy and the case for capital - Capital Structure Review 14
Slide 15: Questions
Questions