Slide 1: Fresh ideas for improving ROI in Agribusiness
PAC Partners Presentation For personal use only Fresh ideas for improving ROI in Agribusiness Australia’s leading producer of premium quality, high performance animal nutrition solutions 28 April 2015
Slide 2: ROI in Australian agribusiness
ROI in Australian agribusiness For personal use only 1. Opportunities 2. Ridley’s approach to improving ROI 3. Conclusions & thoughts 2 2
Slide 3: Strong regional food growth opportunity
Strong regional food growth opportunity For personal use only In 2012-13, Australian farms produced:- • Dairy & beef • $13.2 bn of livestock (for meat) • Animal meals and fats • $6.9 bn of livestock products (wool, dairy etc) • High-performance raw • $2.3 bn of fish and other marine produce material
Slide 4: Australian agribusiness well resourced to exploit food demand growth opportunity
Australian agribusiness well resourced to exploit food demand growth opportunity For personal use only DEMAND LAND World population >9 bn by 2050, income & food demand growing faster Australia enjoys huge advantage in arable land vs peers 350 2.00 300 Index 2007 = 100 Hectares of arable land per
Slide 5: Australian agribusiness – an exciting proposition relative to other industries
Australian agribusiness – an exciting proposition relative to other industries Deloitte Access Economics has Australian agribusiness as one of its ‘Fantastic 5’ For personal use only growth industries Australian agribusiness enjoys a combination of: - strong natural advantages relative to overseas c
Slide 6: Ridley has two key areas of focus to improve its returns
Ridley has two key areas of focus to improve its returns For personal use only 1 Focus on those sectors with high growth potential and higher-value returns: aquaculture dairy poultry rendering 2 Focus on Ridley’s Customer Value Proposition to: deliver a compelling value proposition to the c
Slide 7: Aquaculture approach to improved returns
Aquaculture approach to improved returns For personal use only Global Compound Aquafeed Forecast to 2020 Some Facts & Figures Challenge: • Asia is home to ~90% of reduce this global aquaculture gap by production improving • Farmed fish expected to feed exceed wild catch by 2018 conversion Source: FA
Slide 8: Dairy approach to improved returns
Dairy approach to improved returns For personal use only Significant regional demand for imported milk ... and a latent milk production opportunity in into China.... Australia Fonterra’s view of the size of the market in China Milk production 1995 to 2012 (bn litres) represents imported volume (bn l
Slide 9: Poultry approach to improved returns
Poultry approach to improved returns For personal use only • Chart shows consumption Constraint: per capita in Australia of BROILER BROILER(meat) not subject to same various meat types chickens (meat) chicken constraints as other • Chicken meat showing key Ridley sectors consistent 3% p.a. compound
Slide 10: Rendering approach to improved returns
Rendering approach to improved returns DEMAND SUPPLY For personal use only Demand for rendered Constraint: Constraint: Supply of raw material is a products as a protein source - periodic overseas - freshness of raw material function of livestock harvest is a function of export focused growth for liv
Slide 11: Ridley well positioned within agribusiness
Ridley well positioned within agribusiness For personal use only Location & Ridley Sector Supply chain Nutrition & Species Position Growth Local or -1.8mt on 2 technical Global?* in Sector Potential way logistics excellence - reliability of - Industry-leading Salmon – Local supply knowledge of Aqua
Slide 12: Ridley ROI outcomes and targets
Ridley ROI outcomes and targets For personal use only Positive trend in recent years through disciplined approach to allocation of capital & project hurdle rates Targeting long term asset return improvement through efficiencies, technologies, innovation & rolling program of mill modernisation ROFE c
Slide 13: Conclusions & thoughts
Conclusions & thoughts For personal use only • Invest in value not volume - deli not smorgasbord • Invest in human capital - harness talent to create quality and value that the customer is prepared to pay for • Invest in supply chain - optimise logistics to share cost savings & infrastructure - leve