Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — J P Morgan A Day At The Farm (June 2009)
21 slides from Graincorp Limited Class A's conference presentation, Jun 23, 2009
Slide 1: Company announcement: GrainCorp presentation to JP Morgan conference
For personal use only Company announcement GrainCorp Limited ABN 60 057 186 035 Date: Tuesday, 23 June 2009 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com PUBLIC ANNOUNCEMENT Contents for immediate release: GrainCorp presentation to JP Morgan ‘A Day at the Fa
Slide 2: J P Morgan – A Day At The Farm
For personal use only J P Morgan – A Day At The Farm 23 June 2009 Mr Ian Wilton – Chief Financial Officer GRAINCORP LIMITED Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 1
Slide 3: Our place in the World
Our place in the World For personal use only • Rising consumption in the Asia - Pacific and Middle East regions driven by – Increasing per capita grain consumption and – Young population and speed of population growth over the next 2 decades • Australia has a sea freight advantage to the key wheat a
Slide 4: GrainCorp Focus on Eastern States
GrainCorp Focus on Eastern States For personal use only Eastern States production > 15 mmt/PA Average Annual National Production (Selected grains) 31 mmt/PA Queensland Wheat – 1.1 Barley – 0.2 APH Sorghum – 1.2 Total – 2.5 New South Wales APW AH Wheat – 5.8 ASW Barley – 1.5 Sorghum – 0.8 Durum Weste
Slide 5: GrainCorp Overview
GrainCorp Overview For personal use only Employees • GrainCorp has approx. 800 permanent employees • Up to 2500 ‘harvest casuals’ employed each year between Nov. and Feb. Financial • Retain FY 09 profit forecast range of $37 to $42 million Current Market Capitalisation • $560 million Grain Storage |
Slide 6: GrainCorp Supply Chain Footprint
GrainCorp Supply Chain Footprint For personal use only • 284 operational country grain receival sites • 20 mmt storage capacity – Vertical concrete silos – Steel silos and sheds – Grain bunkers • 4 ‘branch line’ trains in NSW • 8 leased ‘main line’ trains in NSW and Victoria • Total rail haulage cap
Slide 7: GrainCorp Ports Footprint
GrainCorp Ports Footprint For personal use only GrainCorp operates 7 bulk grain terminals Mackay Gladstone Fisherman Islands (Brisbane) Carrington (Newcastle) Portland Port Kembla Geelong • Shipping capacity up to 20 mmt PA • Annual exports avg. > 4 mmt Grain Storage | Supply Chain Logistics | Grain
Slide 8: GrainCorp Trading
GrainCorp Trading For personal use only • Trading > 3 mmt of grain and meal PA – > 1.5 mmt bulk grain exports – > 2.0 mmt domestic grain market – > 0.2 mmt soybean meal • Grains traded – Wheat – Barley – Canola – Sorghum – Pulses • Entered the bulk wheat export sector in Dec. 2008 • On target to exc
Slide 9: HY09 Results Recap
For personal use only HY09 RESULTS RECAP Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 8
Slide 10: Financial Results at March 2009
Financial Results at 31 March 2009 For personal use only Revenue Up by $52 M Results HY08 HY09 $ million $ million EBITDA Up by $50 M Revenue 806 858 EBITDA 32 82 NPAT Up to $32 M Net profit / (loss) (6) 32 after Tax Free Cash flow 2 (34) 61 Gearing1 Down to 48% Key financial results show the transf
Slide 11: Business Drivers at March 2009
Business Drivers at 31 March 2009 For personal use only Carry-in Up by 1.0 mmt HY08 HY09 mmt mmt Receivals Up by 4.2 mmt Grain carry-in 1.2 2.2 Grain receivals 4.6 8.8 Grain Exports Up by 1.4 mmt Domestic out load 2.0 2.3 Grain exports 0.5 1.9 Grain carry out 4.0 7.2 Return to average or above avera
Slide 12: Performance by Business Unit
Performance by Business Unit For personal use only Business Unit HY08 HY09 HY08 HY09 Revenue $ million 1 Revenue1 EBITDA EBITDA Storage & Logistics 65 159 15 41 Trading 2 683 636 18 22 Ports 24 40 3 30 Merchandise 3 33 22 2 (12) Allied Mills 4 - - 5 4 Corporate, Head Office and Other 5 1 1 (11) 6 (3
Slide 13: Transformation of GrainCorp
Transformation of GrainCorp For personal use only In the last 6 months • Significant internal restructure of business units and senior management to achieve clearer customer focus • Successfully became a leading participant in the bulk wheat export market • Providing open access at port terminals fo
Slide 14: Developments Post HY Results
For personal use only DEVELOPMENTS POST HY RESULTS Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 13
Slide 15: Capital Raising – Share Placement
Capital Raising – Share Placement For personal use only Share Placement • 9.6 million shares placed raising $60 m – Placement announced 18 May – Significantly oversubscribed • Institutions bidding – 81 • Existing institutions – 34 • New institutions – 47 • Shares on issue now over 74 million Grain S
Slide 16: Capital Raising - SPP
Capital Raising - SPP For personal use only Share Purchase Plan – Individual shareholders can apply for up to $15,000 worth of shares – SPP open until 29 June 2009 • Register now has > 27 600 shareholders – Top 20 shareholders > 52% of shares Strengthened Balance Sheet • Capital raised from Placemen
Slide 17: Outlook
For personal use only OUTLOOK Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 16
Slide 18: Outlook FY09
Outlook FY09 For personal use only Estimated receivals FY09 9.2 to 9.4 mmt Actual receivals YTD 9.3 mmt Estimated exports handled > 4.0 mmt Actual exports YTD 3.2 mmt Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 17
Slide 19: Seasonal Outlook
Seasonal Outlook For personal use only • ABARE June Crop Report • 2009/10 forecast production of major grains in Queensland, NSW and Victoria Crop Forecast Tonnage (mmt) Wheat 11.2 Barley 3.4 Canola 0.66 Sorghum 1.9 Total 17.6 Source – ABARE Australian Crop Report. 16 June 2009. Grain Storage | Supp
Slide 20: Key Messages
Key Messages For personal use only GrainCorp has successfully capitalised on removal of the bulk wheat export monopoly Mainline and branch line trains have strengthened supply chain integration and increased efficiency Continuing focus on reducing costs and increasing service delivery across s
Slide 21: Thank You
For personal use only THANK YOU Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 20