Slide 1: Investor Presentation – Half Year Ended 31 December 2018
RIDLEY CORPORATION LIMITED INVESTOR PRESENTATION – HALF YEAR ENDED 31 DECEMBER 2018 1
Slide 2: Ridley
RIDLEY Sales of Yamba-produced NovacqTM-inclusive feed for domestic growing season. All 14 ponds of Thailand NovacqTM production facility operational by period end. Strong Ruminant result with sales volume increases in sustainable core business and drought related beef and sheep. Poultry vol
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated result 1H 1H 1H 2H FY18 FY17 - in $m FY19 FY18 FY17 FY18 Ridley Operations - half year EBIT EBIT - Operations 21.5 22.8 22.9 43.3 20.5 45.8 result of $21.5m achieved. Property Property - reflects two Lara property 6.4 0.3 (0.5) 4.2 3.9 (1.0) Revenue/(Costs) sale
Slide 4: Operations
OPERATIONS RIDLEY | INVESTOR PRESENTATION | HALF YEAR ENDED 31 DECEMBE R 2018 4
Slide 5: Ridley Journey
RIDLEY JOURNEY Agri/Salt Rendering Animal Nutrition Solutions - Animal Nutrition mixed becomes market core focus on stabilising & growing core Solutions / Value message competency animal nutrition business add Ingredients 2013 2014 2015 2016 2017 2018 2019 2020 M&A: Looking for strategic & complemen
Slide 6: Financial Highlights - Operations
FINANCIAL HIGHLIGHTS - OPERATIONS EBIT result for agribusiness of $21.5m - Dairy, Beef and Sheep, Supplements and Laverton Rendering all enjoyed growth in the period. The cessation of Maroota Rendering raw material supply from Red Lea in April 2018 will take time to replace. Poultry - positive v
Slide 7: Sector Volume History – In '000 Tonnes
SECTOR VOLUME HISTORY – IN ‘000 TONNES Sector FY19 FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 Long term Industry 1H Outlook Poultry 576 1,207 1,155 1,044 1,013 1,019 872 933 900 764 Aqua-feed 19 32 35 54 65 50 42 47 50 47 Packaged 40 75 75 78 83 90 90 85 84 90 Dairy 117 260 226 284 291 275 251 260
Slide 8: Novacq TM
NOVACQTM Establish product efficacy Scale up Australian production Commercialise in Australia Develop Australian sales price strategy 100% prawn farmer penetration in Australia -------------------------------------- Scale up Thailand production Commercialise in Thailand -----------------------------
Slide 9: Novacq TM @ Yamba
NOVACQTM @ YAMBA First commercial sales of NovacqTM-inclusive feed achieved in the period. Ongoing process of continuous improvement to further improve yield and drive down the cost of production. Further increase in power supply is being scoped to improve aeration and product yield. Dewater
Slide 10: Novacq TM @ Thailand
NOVACQTM @ THAILAND Ten year lease - 14 former prawn ponds now converted and all producing NovacqTM. Dewatering and Drying - working through approval process to locate the dewatering and drying equipment within the feedmill. Pond testing - dedicated pond established with 48 test cages plus 6 I
Slide 11: CSIRO Alliance & Novacq TM Acceleration
CSIRO ALLIANCE & NOVACQTM ACCELERATION CSIRO ALLIANCE Management Committee and Science & Operational Committee - both fully functional, with regular meetings, agendas, minutes and venue rotations. CSIRO - Bribie Island providing trial populations and undertaking test program. Clayton bioreactor
Slide 12: Consolidated Financials
CONSOLIDATED FINANCIALS RIDLEY | INVESTOR PRESENTATION | HALF YEAR ENDED 31 DECEMBER 2018 12
Slide 13: Balance Sheet - Assets
BALANCE SHEET - ASSETS Balance Sheet Dec June June June June Cash and cash equivalents - closing balance is a function of - in $m 2018 2018 2017 2016 2015 timing of receipts/payments and draw down/repayment of bank funding. Cash & equivalents 17.1 23.4 16.5 28.5 35.0 Inventory - reflects raw mat
Slide 14: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Balance Sheet Dec June June June June Payables - reflects timing of creditor - in $m 2018 2018 2017 2016 2015 payments within agreed terms. Tax - period end tax receivable after Current payables 155.9 155.9 148.6 145.9 158.7 finalisation of 2018 income tax return and
Slide 15: Cash Flow
CASH FLOW Consolidated Cash flow FY19 FY18 FY17 FY16 FY15 #Consolidated group EBITDA of - in $m 1H $24.5m excludes $6.8m profit on Consolidated group EBITDA # 24.5 43.7 54.4 61.1 51.0 disposal of 2 Lara properties. Movement in working capital (15.0) 15.3 (2.6) (19.3) 7.0 Increase in working capita
Slide 16: Property
PROPERTY RIDLEY | INVESTOR PRESENTATION | HALF YEAR ENDED 31 DECEMBER 2018 16
Slide 17: Property
PROPERTY LARA • Sale of Lots A & C for aggregate proceeds of $9.5m in July 2018, LARA generating $6.8m of profit before tax plus $1.4m of deferred interest receivable, to be released to profit and loss over the coming three years. LOT A - SOLD JULY 2018 • Lot D under option agreement for land-based
Slide 18: Outlook
OUTLOOK RIDLEY | INVESTOR PRESENTATION | HALF YEAR ENDED 31 DECEMBER 2018 18
Slide 19: Outlook - Animal Nutrition Solutions
OUTLOOK - ANIMAL NUTRITION SOLUTIONS Poultry and Pig - our Commercial Feeds team is working to generate new sales customers and feed volumes in an industry which has maintained its positive long term outlook for many consecutive years. Ridley’s growth prospects will be boosted by the new 350kt cap
Slide 20: Extrusion Plant at Westbury, Tasmania
EXTRUSION PLANT AT WESTBURY, TASMANIA Spare capacity to target new and returning customers & industry growth. Salmon production to transfer to Tasmania - improved supply chain, lead times, diet testing capability & customer collaboration. Extrusion capacity for Petfood & Aquafeed. 50,000t an
Slide 21: Feedmill at Wellsford, Central Victoria
FEEDMILL AT WELLSFORD, CENTRAL VICTORIA xxx xxx Site secured, development approvals obtained, project kicked off on 17 Dec 2018. Contracts tendered and placed for equipment supply and installation, mills, presses, liquid tanks, weighbridge and power supply. Underpinned by 10 year supply agreem
Slide 22: Outlook - Novacq TM
OUTLOOK - NOVACQTM NovacqTM Australia First year of commercial operation commenced on 1 July 2018, one year ahead of original 5 year timeline; Increase electrical power supply to the site to improve aeration and product yield; Implement and refine dewatering and drying process; Establish p
Slide 23: Outlook - Strategy
OUTLOOK - STRATEGY Poultry - Commercial Feed team to execute the plan to secure new poultry and pig volume based on customer value proposition. New extrusion plant and feedmill - commission the new Tasmanian extrusion plant in Q4 and be well advanced in construction of new Central Victorian poul
Slide 24: Contact Details
CONTACT DETAILS 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.ridley.com.au ASX: RIC R