Slide 1: Analysts Presentation – Annual Results Part 1
RIDLEY 26 August 2003 Australian Stock Exchange Limited Company Announcements Office Level 6 20 Bridge Street SYDNEY NSW 2000 Total Number of Pages: 62 Dear Sir, Analysts Presentation — Annual Results - Part 1 Please find attached the Analysts Presentation (in three parts) ~ Annual Results 2003 for
Slide 2: Ridley Corporation
RIDLEY CORPORATION
Slide 3: Group results summary
Sales EBITDA EBIT Net Operating Profit Net Profit Dividends AS million 1411 99 71 37 31 5.75cps
Slide 4: US Feed & Canadian Feed earnings, receivables, currency, Cotswold
US Feed & Canadian Feed earnings I we Receivables Currency translation impact Cotswold losses and divestment
Slide 5: Currency impact on earnings
(82) Currency (33) Cotswold Salt 31 74 Feed USA Feed Australia
Slide 6: EBIT bridge A$ million
A$ million 32.2 a” (7.4) y 7 ~ 47 Feed "3 1) WV y Xx 42 Borrowing costs Prior year (1.0) 1.6 Feed Australiia Feed Canada _ sait
Slide 7: Feed Australia sales and EBIT
Sales EBIT Features AS million. 556 20 - 1 half vs 2"¢ half - QLD and NSW particularly strong - Swine / dairy volumes lower in VIC and - Receivables
Slide 8: Feed Australia sales volumes (tonnes 000's)
Slide 9: Feed Australia EBIT bridge
A$ million 16.0 —, — N 1.7 (1.2) 4 A Consulting Receivables 1.8 (1.0) SBU CPP (1.0) 3.9 Insurance Margins / mix
Slide 10: Feed USA sales and EBIT
USS million Sales 317 EBIT oy) 8%. Features - Increased volumes due to drought and government programs - Blocks record sales volume - Average feed margins down - Receivables
Slide 11: Feed USA sales and EBIT in A$
AS million Sales 551 EBIT 39 -16% Features - Currency impact of A$4.0 million
Slide 12: Feed USA EBIT bridge
46.8 yy (4.0) WW y N Currency (3.9) Receivables {1.1) Insurance 1.6 Volume / Margin mix 39.4
Slide 13: Feed Canada sales and EBIT
C$ million Sales 185 EBIT 10 Features - Reduced swine volume BSE / border closure Receivables Improved margins
Slide 14: Feed Canada in A$
AS million Sales 213 EBIT 11 Features: - Currency impact of $0.7 million
Slide 15: Feed Canada EBIT bridge
A$ million 12.1 (0.7) ny W. y N Currency (0.4) Insurance (0.5) 0.6 Receivables Shamrock contribution
Slide 16: Cheetham Salt sales and EBIT
A$ million Sales 73 EBIT 22 Features - Improved domestic margins and manufacture - Increased Japanese export volumes - Lower dairy and hide volumes
Slide 17: Cheetham Salt EBIT bridge
20.4 A$ million (0.4) 7 Mm Indonesia 2.3 formation costs (0.7) Australia Other price and volume
Slide 18: Cotswold operating losses and significant items
AS million F2003 > Cotswold Operating Losses (9.7) Significant items (net) (5.9)
Slide 19: Ridley Corporation
RIDLEY CORPORATION
Slide 20: Cash flow A$ million
AS Million F2003, — F2002 EBITDA 99 107 Capex & acquisitions (23) Borrowing costs (12) Tax (19) Dividends (12) Working capital (12) Options & other 8 Net funds generated 29
Slide 21: Funds by business unit
Feed Australia Cheetham Salt Feed USA Feed Canada Cotswold Other TOTAL
Slide 22: Net debt movement
A$ Million Net Debt - June 2002 Repayments Currency translation Net Debt - June 2003
Slide 23: Financial ratios
F2003 Net Debt/EBITDA 1.5 “F2002 F2001 EBITDA/Net Interest 7.6 6.0 EBIT/Net Interest 5.3 4.3 ROSF* 12.0% 11.1% ROFE* 13.1% 12.9% EPS (fully diluted)* 13.9 12.9 * Before significant items
Slide 24: Net debt and equity
AS Million F2003 = F2002 Net Debt 151 Equity 365 Ratio 0.41:1 F2001
Slide 25: Funds employed by region
A$ million... F2003 F2002 Australia 69 719 Ridley Inc 82 114 173 Total 151 193 292
Slide 26: Working capital
AS Million. “Ss SS , % F2003 F2002 2001 Receivables 120 136 — Inventory 107 116 Accounts Payable (117) (143) Other & Provisions (5) (5) Total 105 104 Days Sales Outstanding 30 31
Slide 27: Business unit ROFE and EBIT
Feed Australia (A$ million) Cheetham Salt (A$ million) Feed USA (US$ million) Feed Canada (C$ million)
Slide 28: Net borrowing costs
A$ Million. Total interest paid Interest income Amort of borrowing costs Net borrowing costs
Slide 29: Ridley Inc as reported vs prior-year exchange rate
As reported At F2002 rai Variance Ridley Inc - EBIT 36 40 -Net to Ridley Corp 10 12 Exchange Rate 5651 5165
Slide 30: Ridley Inc EBIT and exchange rate
Ridley Inc - EBIT - Net to Ridley Corp Exchange Rate As reported At cun . Variance 10 7 3651 .6500
Slide 31: Slide 31
Slide 32: Ridley AgriProducts Analysts Presentation
Ridley AgriProducts Analysts Presentation August 2003 c | ¢ Ree Paik RIDLEY
Slide 33: Ridley AgriProducts
( RIDLEY AGRIPRODUCTS RIDLEY AGRIPRODUCTS ¢ Australia’s largest stockfeed producer ¢ Produces over 1.5m tonnes of specialised animal feed rations ¢ Diverse customer base ¢ Key competition includes national ‘integrators’, regional players with multiple mills and local, single site, family owned mille
Slide 34: Locations
RIDLEY AGRIPRODUCTS High Perforanetce Animal Natrition. LOCATIONS Ae therton PAEEEPY cmocnmannaad rihara St "Arnaud w hanes w Aste . voc cHCCHENy \Dandenang Camphelifietd” f° , 4 # Fokerihugn RIDLEY
Slide 35: Profile
AGRIPRODUCTS ( RIDLEY PROFILE ¢ Milling -bulk - 1.3m tonnes -packaged - 131k tonnes ¢ Non milling -supplements — 31k tonnes -concentrates, premix, additives -aquafeeds — 14k tonnes RIDLEY
Slide 36: Sales revenue
600,000 550,000 - Dollars Thousands 350,000 | 300,000 + RIDLEY SALES REVENUE 500,000 - 450,000 + 400,000 | 2000 2001 2002 2003 (Saks - Turnover $ = Wheat $ Tonne 300 + 250 + 200 + 150 + 100 Dollar Per Tonne
Slide 37: Sales tonnes
1,700,000 5 1,500,000 7 1,300,000 7 Tonnes 900,000 + 700,000 + 500,000 = RIDLEY 1,100,000 5 RIDLEY AGRiPRopucts High Pectosneanee Animal Netrision). SALES TONNES 2000 2001 2002 2003
Slide 38: EBIT 2003 by segment
(fetes EBIT 2003 Bulk Beef Bulk Other 11% 6% Bulk Pig 12% Small Business Units 36% Bulk Poultry 21% RIDLEY
Slide 39: Business results 2003
( RIDLEY AGRIPRODUCTS BUSINESS RESULTS 2003 ¢ Record sales volume 1.54m tonnes. * Record sales $556m. ¢ Improved EBIT $20.2m. ¢ Improved ROFE 18.1%. * Funds generated $22.9m. RIDLEY
Slide 40: Business results
( RIDLEY Ace Proc. BUSINESS RESULTS 2000 2001 2002 2003 ($millions) ($millions) Gmillions) —_ ($millions) EBIT 9.8 12.4 16.0 20.2 Working Capital 16.2 26.8 22.1 21.4 Fixed Assets 75.9 75.0 70.4 69.4 Intangibles 13.3 12.5 11.4 10.3 Funds Employed 105.4 114.3 103.9 101.1 ROFE 9.2% 10.5% 14.3% 18.1% RI
Slide 41: Operating environment F04
AGRIPRODUCTS ( RIDLEY OPERATING ENVIRONMENT F04 ¢ Immediate future will be dominated by effects of the drought ¢ Volatile grain prices ¢ Shift in demand by region and by market (species) ¢ Customers balance sheets weakened RIDLEY
Slide 42: Wheat prices
WHEAT PRICES (January 2002 to June 2003) —e— Victoria —s— Queensland NSW é-. South Australia Dollars per tonne j oe w2z & c pF F Eo fF PD FEE 5 Ss <€ TG € FS SF EC YF 6o6 8 6&6 6 & & & B eC) nv Ny ®& B©8 © Month RIDLEY
Slide 43: Market sector – Dairy
RIDLEY ( RIDLEY AGRIPRODUCTS MARKET SECTOR - DAIRY Cow numbers —down 3.5% to 2.053m Mil Rec Hig Cas k production —down 8.4% to 10.3bL overy in global prices h cost inputs -supplementary feed hflow Opening prices for milk 10-12% up Irrigation - water allocation issues
Slide 44: Milk price to feed wheat price ratio
( High Pecfornnntee Avi MILK PRICE TO FEED WHEAT PRICE RATIO 25 = \ [\— X11 ae X/ 4.5 1 05 ————- Milk / Feed Price Ratio ‘Average 7 S) ‘ .) s S) $ ‘) s ‘J < 3 FS S) ‘ PY s S) $ 3 s Ff : S eS FF g » Sg ¢ ia e e Aa o Aa ¢ ¢ a Pa se £ ¢& ra s of ¥ s gs 5 Fw 4 Py s x a ar FF s ¢# s 4 s 8
Slide 45: Market sector – Pig
AGRIPRODUCTS ( RIDLEY MARKET SECTOR - PIG ¢ Decrease in herd by 8-10% ¢ Net supply to market increased 11% ¢ Low prices ¢ High feed costs ¢ Cashflow negative ¢ Consolidation/rationalisation RIDLEY
Slide 46: Baconer prices to feed ratio
AGRIPROD ( RIDLEY BACONER PRICES TO FEED RATIO Source: AWR and DPI ——— Baconer Ratio Average a a a ae a ed ve ¢C EE gE EE PEE oF RIDLEY
Slide 47: Market sector – Poultry
AGRIPRODUCTS ( RIDLEY MARKET SECTOR - POULTRY ¢ Broiler prices static during 02/03. ¢ Recent price increases achieved ¢ Adverse terms of trade ¢ Increased feed costs — up by over 50% Consolidation / rationalisation RIDLEY
Slide 48: Chicken meat price to feed wheat price ratio
( High Pecfornnntee Avi CHICKEN MEAT PRICE TO FEED WHEAT PRICE RATIO 0.25 02 0.15 tS a4 ‘= 0.05 ——— Chicken Meat Ratio — Average
Slide 49: Market outlook
RIDLEY ( RIDLEY AGRIPRODUCTS MARKET OUTLOOK Reduced visibility For all species, contraction in livestock numbers Terms of trade recovering but still weak Grain prices trending down but remaining volatile
Slide 50: Issues, challenges
( RIDLEY AGRIPRODUCTS ISSUES, CHALLENGES ¢ Maintaining high returns post drought; rate of market recovery uncertain ¢ Customers response to a normalised trading environment ¢ Credit management given cashflow pressures * Quality, OH&S, and supply chain management initiatives ¢ Continuing to raise RAP
Slide 51: Quality endorsed company
ce " of : Quality Endorsed Company 180 9002 Lic 3636 Lit fo, i alin gi
Slide 52: Cheetham Salt
Cheetham Salt * Established 1888 * Acquired by Ridley 1992 * Operations * Australia * Cheetham Salt « Western Salt Refinery (JV) « Salpak (JV) * New Zealand * Dominion Salt (JV) * Indonesia « PT Cheetham Garam * Japan RIDLEY « Branch Office
Slide 53: Cheetham Salt locations
Port Alma Brisbane Fremantle NEW ZEALAND Darminion Sait Esperance Mount Maunganui Cheetham Salt Locations Sea Lake Corio, Lara & Ge Moolap Lake Grassmere
Slide 54: Profile
Profile 62 ¢ Operates 11 solar salt fields throughout Australasia * Produces 700,000 tonnes annually * Customer focused « ISO 9002 accredited * HACCP certified food production facilities * High Quality products and service * Over 2,000 customers Significant market share RIDLEY
Slide 55: Business results
Business Results 1999 2000 2001 2002 2003 Cheetham Sait ($M) ($M) ($M) ($M) ($M) EBIT 17.5 18.6 16.2 16.0 17.3 Funds Employed 58.7 1227 1262 1245 1274 ROFE 16.2% 16.0% 13.0% 12.8% 13.7% Investments Equity Profits 2.8 3.0 3.5 44 47 Investments in Associates 49.2 48.3 47.5 46.5 45.6 Total Earnings 20.
Slide 56: Sales volumes by segment
Sales Volumes by Segment Textile Stockfeed 1% 11% Bulk export 19% Bulk Chemical 31% Manufactured export 4% RIDLEY
Slide 57: Sales revenue by industry segment
S 2 Sales Revenue by Industry Segment Bulk export 4% Textile Stockfeed 1% Bulk Chemical 14% 15% Pool Manufactured export 10% 7% Hide 11% Food 38% RIDLEY
Slide 58: Reliability
Reliability 62 * Over 40% of revenue locked in contracts typically 1 to 3 years * For example contracts with major customers * Orica * Burns Philp * Bunnings * Aoiumi & S & B Foods ( Japan) * Elite Chemicals * Cerebos Cc Profit Broadly Spread RIDLEY
Slide 59: Business drivers
Business Drivers 62 * GDP * Population growth * Regional economic growth * Demand for Australian food products in Asia RIDLEY
Slide 60: Strategic direction
Strategic Direction 62 ¢ Maintain market share and profitability * Focused regional expansion * Japan * SE Asia ¢ Export natural products ¢ Leverage strong customer and logistics base * Targeted acquisitions RIDLEY
Slide 61: Conclusion
Conclusion 62 * Experienced and focused management * Customer and quality focused * Diverse customer base * Strategically located production facilities * Consistent and stable earnings * Growth opportunities RIDLEY
Slide 62: Quality endorsed company
ce " of : Quality Endorsed Company 180 9002 Lic 3636 Lit fo, i alin gi