Slide 1: 2013 Results Presentation
RIDLEY CORPORATION 2013 RESULTS PRESENTATION RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK
Slide 2: Ridley - Year of Restructure
RIDLEY - YEAR OF RESTRUCTURE RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Year of restructure - non-recurring events and transactions overlaying solid operating result for continuing operations Capital Return - 7.5c per share, approved by shareholders on 24 June 2013, paid on 5 July 2013; no
Slide 3: Safety
SAFETY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Embed proactive behaviours Develop and implement a safety management system Find engineering solutions for physical safety hazards LTIFR of 3.65, an 18% improvement in rate of incidents incurring lost time from prior year 4.46 TRFR dow
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Consolidated result - in $m FY13 FY12 ^ FY11 $23.9m EBIT before non-recurring items and Discontinued Operation EBIT - AgriProducts 28.1 27.2 24.9 AgriProducts result of $28.1m, up $0.9m Salt (FY11 inc Cheetham Salt) 3.4 3.4 21.
Slide 5: Other Costs – Non-recurring
OTHER COSTS – Non-recurring RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Items in $m FY13 Acquisition costs - costs incurred to acquire Laverton rendering 3.2 business, including $2.4m of stamp duty Goodwill - write off of goodwill associated with 2005 acquisition of 5.0 Dry Creek operation Impai
Slide 6: Discontinued Operation
DISCONTINUED OPERATION RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Items in $m FY13 Post-tax profit from eight months of Cheetham Salt operations 7.0 Transaction related expenses, including costs to transfer Lara, (9.5) Moolap, Bowen and Dry Creek to Ridley ownership Foreign currency translation
Slide 7: Compensation - For Early Termination of Salt Supply Agreement
COMPENSATION - FOR EARLY TERMINATION OF SALT SUPPLY AGREEMENT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Contract for package of compensation for early termination executed with Penrice on 28 June 2013 but remains subject to receipt of final bank approval Dry Creek salt operation ceased on
Slide 8: Corporate Snapshot
CORPORATE SNAPSHOT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Corporate focus: Australia’s leading producer of Premium Quality High Performance Animal Nutrition Solutions ASX RIC Price and volume (at 15/8/13) 8.0 1.2 7.0 Share price $0.83 6.0 1.0 Share price ($) 5.0 Volume (m) 4.0 0.9 Shares on
Slide 9: Ridley Agriproducts Results Presentation
RIDLEY AGRIPRODUCTS RESULTS PRESENTATION RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK 9
Slide 10: Highlights
HIGHLIGHTS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Purchase of BPL rendering business - entry into Victorian market and mammalian rendering to complement the existing business at Maroota, NSW Construction of new Pakenham mill - commissioned in December 2012 and delivering against capex a
Slide 11: Sector Analysis
SECTOR ANALYSIS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Sector FY13 FY12 Outlook Poultry: Outlook remains positive for white (kt) (kt) meat consumption despite some volume switching in FY13 Poultry 872 933 Aqua-feed: volumes stabilised and operations reconfigured to lower outlook Aqua-fe
Slide 12: Financial Summary
FINANCIAL SUMMARY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Agriproducts ($m) FY13 FY12 EBIT result of $28.1m - uplifted by six Sales ($) 706.3 626.0 months earnings from new rendering business EBIT (Earnings Before Interest & Tax) 28.1 27.2 Working capital - $13.6m of working + Depreciati
Slide 13: Property
INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK PROPERTY 13
Slide 14: Surplus Property
SURPLUS PROPERTY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Major coastal sites at Lara and Moolap (on Corio Bay near Geelong, Victoria) Discussions with relevant State and Federal Government departments are underway Environmental Effects Statement and rezoning process will commence upon
Slide 15: Lara & Moolap
LARA & MOOLAP RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK AVALON AIRSTRIP Larasite 912 hectare Salt at Lara - preliminary Avalon Fields planning and investigations completed Airport Lara redevelopment potential for industrial Melbourne and airport-related uses ~60km 912ha site adjacent to Av
Slide 16: Dry Creek
DRY CREEK RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Excluded from Cheetham Salt sale and ownership retained by Ridley 316.1 Ha in prime location with proximity to Adelaide CBD, included within SA Government’s 30 Year Plan >4,800 Ha of coastal strip further north available for sale Salt
Slide 17: Dry Creek
DRY CREEK RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Lara Salt Development of the Dry Creek site is N Avalon Fields Airport consistent with Government’s 30 year plan for Adelaide. Ridley is working Former salt with all stakeholders to establish a condensing pathway to address the outstanding po
Slide 18: Consolidated Financials
INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK CONSOLIDATED FINANCIALS 18
Slide 19: Balance Sheet
BALANCE SHEET INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Balance Sheet in $m FY13 FY12 Balance Sheet movements between years reflect rendering business acquisition and Total Current Assets 170.3 176.8 salt business divestment Total Current Liabilities 165.4 106.3 FY13 current liabilit
Slide 20: Cash Flow
CASH FLOW INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Cash flow in $m FY13 FY12 Strong EBITDA performance of EBITDA (inc JV NPAT’s) 39.2 50.1 $38.0 reflects 8 months of Cheetham Salt and 6 months of new Movement in working capital 26.4 14.8 rendering business Maintenance capex (11.3) (13
Slide 21: Working Capital
WORKING CAPITAL INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Working Capital in $m FY13 FY12 Working capital movements Cash ^ 16.9 7.2 between years reflect rendering acquisition and salt divestment Trade Debtors 83.1 80.9 Other Debtors and prepayments 8.8 3.4 Increase in cash purely ti
Slide 22: Capital Expenditure
CAPITAL EXPENDITURE INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Items in $m Agri Salt Corp FY13 FY12 Salt column reflects 8 months of Cheetham Salt activity Other 2.2 3.1 - 5.3 2.6 prior to 28 February 2013 sale New 5.6 - - 5.6 8.0 New Pakenham mill was Pakenham Mill commissioned in De
Slide 23: Financial Ratios
FINANCIAL RATIOS INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Financial KPI’s FY13 FY12 Gearing reduction - application of sale proceeds to business Net Debt - in $m 17.9 98.2 acquisition and debt retirement Equity - in $m 207.6 278.4 Strong debt servicing capacity, Gearing (Net Debt /
Slide 24: Outlook
INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK OUTLOOK 24
Slide 25: Outlook
OUTLOOK INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Business Focus - being Australia’s leading producer of Premium Quality High Performance Animal Nutrition Solutions Strategy - six platforms for delivery: Safety Our People Customer Focus Operational Excellence Community and
Slide 26: Outlook - Risks
OUTLOOK - RISKS INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Cyclical fluctuations - diversified portfolio spreads the individual sector risk Influence of domestic harvest - management of raw material price fluctuations through procurement practices and customer ownership of raw materia
Slide 27: Business Growth
BUSINESS GROWTH INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Business growth activity: New Pakenham mill - full year of operation in the Gippsland and Tasmanian markets with delivery of production cost savings to assist Dairy sector recovery Rendering capacity expansion - new volumes to
Slide 28: Business Growth
BUSINESS GROWTH INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Capture market Long term, cost effective, share - superior surety of quality supply to product & service provide customer offering expansion and capital constraint solutions Ridley 1.5mt Domestic annual feed Freely traded consumpt
Slide 29: Investment Summary
INVESTMENT SUMMARY INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Australia’s leading producer of Premium Quality High Performance Animal Nutrition Solutions Organic growth through rising populations, land constraints, demand for protein and heightened concerns for food security # Further
Slide 30: Tim Hart
Tim Hart Managing Director and Chief Executive Officer Ridley Corporation Limited Tel +61 3 8624 6500 ABN 33 006 708 765 Fax +61 3 8624 6514 Level 4, 565 Bourke Street Mobile +61 404 480 542 Melbourne, VIC 3000 Web www.ridley.com.au Australia Email tim.hart@ridley.com.au 30
Slide 31: Appendices
INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK APPENDICES 31
Slide 32: Five Year Sector History
FIVE YEAR SECTOR HISTORY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Sector FY13 FY12 FY11 FY10 FY09 Outlook (kt) (kt) (kt) (kt) (kt) Poultry 872 933 900 764 746 Aqua-feed 42 47 50 47 37 Packaged 90 85 84 90 98 # Dairy 251 260 236 215 293 Pig 184 197 224 325 332 Supplements 22 22 22 30 24 Beef &
Slide 33: Five Year Financial Summary
FIVE YEAR FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Agriproducts ($m) FY13 FY12 FY11 FY10 FY09 Sales ($) 706 626 616 620 717 EBIT 28.1 27.2 24.9 29.0 24.4 Depreciation & Amortisation (DA) 12.9 8.5 8.6 7.6 6.7 EBITDA 41.0 35.7 33.5 36.6 31.1 Net Working Capital Change 13
Slide 34: Locations & Sectors
LOCATIONS & SECTORS INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Operationally, the business is structured to support its six key market sectors: Monogastric Pellets, meals, concentrates and premixes for poultry and pigs. Ruminant Pellets, meals, concentrates and premixes for dairy cattle,
Slide 35: Brands & Customers
BRANDS & CUSTOMERS INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Brand Overview Customers / market position Barastoc offers a range of pellets, meals, concentrates and pre- Bulk customers range from the small mixes specifically formulated to meet the nutritional requirements independents to