Ridley Corporation Limited · ASX:RIC
Ridley — 20th Australasian AgFood Conference (May 2022)
17 slides from Ridley's conference presentation, May 31, 2022
Slide 1: Sustainability & Scalable Cash Flow
20 Australasian AgFood Conference th Sustainability & Scalable Cash Flow LEADING ANIMAL NUTRITION 31st May 2022 1
Slide 2: Our purpose is to lead animal nutrition
OUR PURPOSE IS TO LEAD ANIMAL NUTRITION By solving the food production challenges of today and tomorrow through smart animal nutrition BECAUSE WE BELIEVE Meaningful change happens Feed needs to be viewed ANIMAL NUTRITION through meaningful as part of an is the key to more sustainable PARTNERSHIPS EN
Slide 3: Proven pillars of earnings growth
PROVEN PILLARS OF EARNINGS GROWTH In this Plan period, we reset the business to… • focus on the customer • increase asset utilisation • optimise the connected business units • drive accountability for performance … and have delivered year on year earnings growth. LEADING ANIMAL NUTRITION 3
Slide 4: Ridley's core competency
RIDLEY’S CORE COMPETENCY HOW WE CREATE AND CAPTURE VALUE SELECT Select Sourcing SOURCING • Largest domestic consumer of grains & protein meals • Direct procurement of a wide range of raw materials • Quality control system Data • Own production of animal meat proteins & tallows Economies analysis of
Slide 5: Ridley's diversified system
RIDLEY’S DIVERSIFIED SYSTEM INGREDIENTS Manufacturing and Procurement at Scale By scaling our core competencies INGREDIENT RECOVERY NOVAQPRO™ ( x 2 plants ) ( x 1 site ) across a diverse mix of species, geographies and channels, FEED FORMULATION & NUTRITIONAL SCIENCE we operate a diversified system
Slide 6: FY23 - FY25 Growth Plan
FY23 - FY25 GROWTH PLAN LEADING ANIMAL NUTRITION 6
Slide 7: FY23 - FY25 Growth Plan: Bulk Stockfeeds
FY23 - FY25 GROWTH PLAN : BULK STOCKFEEDS Ridley’s Virtuous Cycle Bulk Stockfeed Increase Capacity Key Initiatives and Efficiency Strategy Growth Leverage the flywheel • increase mill utilisation Invest in Better Delivery Infrastructure and Reliability • de-bottleneck sites effects of scale, extend
Slide 8: FY23 - FY25 Growth Plan: Packaged & Ingredients
FY23 – FY25 GROWTH PLAN : PACKAGED & INGREDIENTS Aqua Packaged Ingredient Recovery (formerly Rendering) (Feed / Sector Support) Products Strategy Strategy Strategy “climbing the wall of value” Invest in processing Product Share in the growth of Extend our rural market capability to produce the tropi
Slide 9: FY23 - FY25 Growth Plan: Packaged & Ingredients (Cont'd)
FY23 – FY25 GROWTH PLAN : PACKAGED & INGREDIENTS (CONT’D) Current Option Accelerated Option NovaqPro™ Strategy Continue commercialising Opportunity Opportunity Leverage the success of NovaqPro™ in early Leverage the market access and distribution NovaqPro™ : lifecycle diets in Australia to launch ea
Slide 10: Ridley Sustainability Pathway
RIDLEY SUSTAINABILITY PATHWAY We’re working with our customers and suppliers to deliver real value in sustainable ways, focusing on: SMARTER INGREDIENTS OPTIMISED PRODUCTION EFFECTIVE SOLUTIONS MEANINGFUL PARTNERSHIPS Sourcing high-quality raw materials that are produced Optimising our manufacturing
Slide 11: Growth Plan FY23 - FY25
GROWTH PLAN FY23 – FY25 Key Initiatives FY22 FY23 FY24 FY25 • NovaqPro™ international sales • Growing with aqua customers • Companion animal sales • Premiumisation of rendered products • Tallow & protein meal trading Earnings Growth Packaged & • NovaqPro™ operating efficiencies Ingredients • Energy
Slide 12: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK The Capital Allocation Framework has been reinforced by: Operating Cash Flow • the planned organic capital expenditure underpinning the FY23- FY25 Growth Maintenance & ESG Capital and Working Capital Plan being funded out of operating cash ~60 – 80% of Depreciation flows
Slide 13: Summary
SUMMARY • Building on three years of successive earnings growth, the FY23 - FY25 Growth Plan supports the ongoing earnings momentum of the business. • Ridley’s Sustainability Pathway embeds animal nutrition as a key contributor to more sustainable and profitable farming. • The Capital Allocation Fra
Slide 14: Appendix
APPENDIX LEADING ANIMAL NUTRITION 14
Slide 15: Sustainability Pathway
SUSTAINABILITY In order to lead animal nutrition in Australia, Ridley must embed a sustainable food supply system. Working with our partners at each stage of the food and farming ecosystem better prepares us to take on challenges such as scarce resources, emissions and climate change. Therefore, the
Slide 16: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer The material in this presentation is general background information about the activities of Ridley Corporation Limited (ACN 006 708 765) and its related entities (Ridley), current as at the date of this presentation, 31 May 2022, unless otherwise stated. Th
Slide 17: Thank You
THANK YOU LEADING ANIMAL NUTRITION 17
Ridley — 20th Australasian AgFood Conference (May 2022) on 6ix