Slide 1: Ridley Corporation FY2009 Results Presentation
RIDLEY CORPORATION FY2009 RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 2: Agenda
AGENDA For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM SALT PROPERTY FINANCIALS OUTLOOK 2
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Continuing Op’s 2009n Adj 2009 Group NPAT from G f continuing ti i operations ti off $20.3m Sales Revenue 819.4 - 819.4 EBIT - Agriproducts 1 26.4 2.0 24.4 Continuing normalised NPAT of $28.
Slide 4: Operational Highlights
OPERATIONAL HIGHLIGHTS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Sale of Ridley Inc Debt reduction and extension of banking facilities Restructuring of Australian businesses Consolidation of Corporate, Agriproducts and Cheetham offices in Melbourne
Slide 5: Ridley Agriproducts Results Presentation
RIDLEY AGRIPRODUCTS RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 6: Highlights
HIGHLIGHTS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Record R d EBIT resultl off $24.4m $24 4 normalised li d to $26.4m $26 4 iis sustainable i bl and d the h business is well positioned for further growth Sales of Wondai, Rockhampton, Pills and Atherto
Slide 7: Sales Volumes
SALES VOLUMES For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK S Species i (kt) 2009 2008 Poultry: growth from Inghams relationship, relationship growth of second tier independent broiler processors, market Poultry 746 678 growth of chicken consumption and growt
Slide 8: Profit and Loss
PROFIT AND LOSS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Profit & Loss 2009n 2009 2008 Record R d EBIT result lt off $24.4m $24 4 is i sustainable and the business is well Sales 716.9 716.9 742.3 positioned for further growth EBITDA before add-backs 31.1
Slide 9: Financial Summary
FINANCIAL SUMMARY For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Balance Sheet 2009n 2009 2008 Funds F d employed l d reduced d d in i line li with ith working capital reduction following a Funds Employed 129.9 129.9 156.8 fall in commodity prices from high RO
Slide 10: Segment Outlook
SEGMENT OUTLOOK For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK M Macro E Economic i EEnvironment i t Different drivers to broader economy Increasing world population Increasing demand for protein Limits to the availability of arable land Increasing foo
Slide 11: Segment Strategy
SEGMENT STRATEGY For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK St t i Actions Strategic A ti for f FY10 Focus on intensive industries Re-opening Re opening of Clifton mill supported by contracted relationship with Inghams Expansion of Aquafeed capacity
Slide 12: Cheetham Salt Results Presentation
CHEETHAM SALT RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 13: Highlights
HIGHLIGHTS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Underlying EBIT result of $17 $17.7m 7m impacted by abnormally large costs of $4 $4.8m 8m pairing the result back to $12.9m Continued steady growth of after tax Joint Venture distributions from $6.9m
Slide 14: Sales Volumes
SALES VOLUMES For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK S Segment t 2009 2008 Soda Ash volumes grew only slightly Soda Ash 580.4 574.3 Chemical volumes down with one less bulk shipment Chemical 143.4 172.1 Food down slightly with reduced use of salt i
Slide 15: Profit and Loss
PROFIT AND LOSS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Profit & Loss 2009n 2009 2008 Sales growth of 6.5% 6 5% despite a 1.5% fall in volumes as a result of Sales 101.5 101.5 95.3 an improved margin management EBITDA before add-backs 17.6 17.6 22.1 C
Slide 16: Returns and Cashflow
RETURNS AND CASHFLOW For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK C Consolidated C Cheetham 2009 2009n 2009 2008 Funds F d Employed E l d decreased d d with ith a devaluation of the salt fields by $22.8m Cheetham Funds Employed 187.2 187.2 205.3 Salt JV Inve
Slide 17: Segment Outlook
SEGMENT OUTLOOK For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Macro Economic Environment Salt demand typically grows in line with population growth and GDP Cost pressures mirror those in the mining and transport industries Market Environment Increasing de
Slide 18: Property
PROPERTY For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Strategy Unlocking the potential value of land close to urban centres and surplus to operating requirements Some small initial sales with potential larger sales offering more significant longer term rev
Slide 19: Lara
LARA For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Lara Salt Avalon Fields Airport Avalon air strip 19
Slide 20: Dry Creek Salt Field
DRY CREEK SALT FIELD For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Lara Salt Avalon Fields Airport Avalon air strip Potential PropertyDevelopment Area 20
Slide 21: Dry Creek Development Area
DRY CREEK DEVELOPMENT AREA For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Aerial view of Dry Creek Crystalliser Ponds 21
Slide 22: Dry Creek
DRY CREEK For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Key asset is the potential Dry Creek redevelopment, redevelopment 12kms from Adelaide CBD In May 2008 Ridley entered into a Heads of Agreement with Delfin Lend Lease to investigate the feasibility of r
Slide 23: Next Steps
NEXT STEPS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Initial Phase 1 feasibility complete More detailed Phase 2 feasibility expected to be complete by December 2009 Land Management Corporation committed to feasibility extension Detailed investigatio
Slide 24: Financials
FINANCIALS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK PROFIT AND LOSS NON TRADING ITEMS BALANCE SHEET WORKING CAPITAL CAPITAL EXPENDITURE CASHFLOW DEBT BRIDGE FINANCIAL RATIOS 24
Slide 25: Profit and Loss
PROFIT AND LOSS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK C ti i Continuing Operations O ti 2009 2009n 2009 2008 Group NPAT before significant items Sales Revenue 819.4 819.4 838.4 from continuing operations toward the high end of market guidance EBIT - A
Slide 26: Profit and Loss
PROFIT AND LOSS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Continuing Operations 2009n 2009 2008 Minimal equity issues other than DRP Net Profit pre sig. items 28.1 20.3 15.9 EPS of 4.3, however on a normalised basis Significant items after tax (7.4) (7.
Slide 27: Profit and Loss
PROFIT AND LOSS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK A$ A$m 2009 2008 Ch Change Continuing NPAT result of $12.9 $12 9 reflected earlier NPAT from continuing operations before 20.3 15.9 27.6% Loss of $52.4m associated with the significant items sale
Slide 28: Significant Items
SIGNIFICANT ITEMS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK A$m 2009 2008 Corporate restructuring costs of $1.2m Corporate Restructuring 1.2 2.5 associated with relocation of Sydney Costs (pre tax) corporate head office to Melbourne Takeover Defence Costs
Slide 29: Balance Sheet
BALANCE SHEET For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Balance Sheet (A$m) 2009 2008 Reduction R d ti in i Net N t Current C tA Assetst reflecting fl ti the significant working capital reduction Total Current Assets 175.7 207.2 Total Current Liabilities
Slide 30: Working Capital
WORKING CAPITAL For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Working g Capital p (A$m) ( $ ) 2009 2008 Increased focus on timely Cash 0.3 1.8 debt collection Trade Debtors 88.4 102.2 A combination of lower input Other Debtors, Prepay’ts and Div’s Receivabl
Slide 31: Capital Expenditure
CAPITAL EXPENDITURE For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Items ($m) Agri Salt Total $7.1m $7 1 off d development l t capital it l expenditures in salt Sea Lake - 3.3 3.3 Bajool Refinery - 0.9 0.9 $5.1m of ERP related capital Port Alma - 1.5 1.5 exp
Slide 32: Cashflow
CASHFLOW For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Continuing Operations A$m 2009 2008 Operating Cashflow of $58.1m $ Operating Cashflow before dividends 58.1 7.9 Salt joint venture distributions increase received, interest and tax in line with inflatio
Slide 33: Cashflow
CASHFLOW For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Continuing Operations A$m 2009 2008 Proceeds from sale of Ridley Inc. of Operating Cashflow after Net Capex 36.6 (23.6) A$91.6m applied as part of the debt retirement for the year Net Proceeds from Sale o
Slide 34: Debt Bridge F08 to F09
DEBT BRIDGE F08 TO F09 For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK 200.0 150.0 91.6 13.7 5.1 5 57 9 57.9 13 2 13.2 100.0 14.2 2.9 182.9 7.6 134.6 7.6 107.7 50.0 69 1 69.1 0.0 Opening Ridley Inc PPE Intangibles Sale Before Interest Dividends Before Net Salt JV
Slide 35: Financial Ratios
FINANCIAL RATIOS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK 2009n 2009 2008 Gearing reduced from 54% to 25% Net Debt 69 69 199 Interest cover ratios show the low Equity 276 276 369 debt level relative to earnings Total Assets 345 345 568 ROE has improv
Slide 36: Conclusions
CONCLUSIONS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK FY09 a watershed year for simplifying the business Strong gggrowth in underlying y g results Focus on our core business of processing value added agricultural products Strategic initiatives are w
Slide 37: Outlook
OUTLOOK For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Full year benefit of cost reduction in Agriproducts Absence of unusually large costs impacting on Cheetham Full year benefit of Corporate cost reductions offset by increase in property related costs
Slide 38: Questions and Answers
For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK QUESTIONS AND ANSWERS 38
Slide 39: Appendices
APPENDICES For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK SEGMENT SUMMARY INPUT PRICES 39
Slide 40: Segment Summary
SEGMENT SUMMARY For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Segment g 2009n 2009 2008 Agriproducts - Tonnes (kt) 1,573 1,573 1,610 - EBIT 26.4 24.4 15.0 - Depreciation 67 6.7 67 6.7 76 7.6 - EBITDA 33.1 31.1 22.6 - Funds Employed 129.9 129.9 156.8 - ROFE 20.3
Slide 41: Input Prices
INPUT PRICES For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK % Australia* 2006 2007 2008 2009 Change Feed Wheat 204 310 440 280 (36%) Barley 184 320 390 225 (42%) Canola 400 540 790 550 (30%) Fish Meal 1,371 , 1,890 , 1,200 , 1,700 , 42% % United States 2006 2007