Slide 1: Ridley Corporation Limited Investor Presentation – 2017 Financial Year
RIDLEY CORPORATION LIMITED INVESTOR PRESENTATION – 2017 FINANCIAL YEAR 1
Slide 2: Ridley FY17 highlights
RIDLEY Resilient operating result of $45.8m EBIT in light of Dairy, Aquafeed and energy headwinds. World class pig and poultry mill commissioned at Lara, Victoria. Worldwide licence secured for NovacqTM for all non-crustacean & non-human species, with previously unlicensed crustacean markets a
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated result Full year Ridley operating result of - in AUD$million FY17 FY16 FY15 FY14 $45.8m achieved in difficult ($m) trading conditions in key sectors of Dairy and Aquafeed. EBIT – Ridley operations before non- 45.8 53.7 50.4 40.1 Last three year Ridley operating,
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated result Net finance expense - consistent with FY17 FY16 FY15 FY14 - in $m prior year. Operating result 34.9 42.1 38.8 29.3 $5.3m decrease in tax payable reflects prima facie tax on lower operating Net Finance Expense (5.0) (5.4) (5.0) (5.4) result and prior year
Slide 5: Operations
OPERATIONS RIDLEY | INVESTOR PRESENTATION | 2017 FINANCIAL YEAR 5
Slide 6: Our Mission is to improve the cost of feed to yield ratio
“Our Mission is to improve the cost of feed to yield ratio for our customers” Compliance & Safety TRFR/LTIFR/MTI - Medically Treated Injuries of 4 for the year is an all time Ridley low Livestock Yield / Lara Feedmill PPC # Improved diets Performance Nutrition - Ridley’s Mission is to Quality - DIFO
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS EBIT result for agribusiness of $45.8m - down on prior year’s record $53.7m but positive performance given Dairy and Aquafeed sector headwinds and no dry season for Supplements blocks. Poultry - sales volumes grew 111kt (10.6%) for the year to 1,155kt on the back of continui
Slide 8: Sector Volume History
SECTOR VOLUME HISTORY Sector FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 Long (kt) (kt) (kt) (kt) (kt) (kt) (kt) (kt) term Outlook Poultry 1,155 1,044 1,013 1,019 872 933 900 764 Aqua-feed 35 54 65 50 42 47 50 47 Packaged 75 78 83 90 90 85 84 90 Dairy 226 284 291 275 251 260 236 215 Pig 193 177 168 178
Slide 9: Novacq
NOVACQTM RIDLEY | INVESTOR PRESENTATION | 2017 FINANCIAL YEAR 9
Slide 10: Novacq – Our Competitive Advantage
NOVACQTM – OUR COMPETITIVE ADVANTAGE CSIRO Licence 37% improvement in prawn survival rates Replacement of fish Crustacean – All the meal protein source achieved in Mackay trials with NovacqTM world secured in with NovacqTM diets compared to control ponds. FY17 except for reduces nitrogen China and V
Slide 11: Novacq - Australia
NOVACQTM - AUSTRALIA Yamba - positive progress made during the year on all aspects of production, harvesting, drying and dewatering to increase yield and reduce cost. Production tonnes from the site have been used in trial diets and exported to Thailand for inclusion in trial diets under local con
Slide 12: Novacq - Thailand
NOVACQTM - THAILAND Ten year lease - 14 former prawn ponds now lined and pond sets being introduced to commence local production of NovacqTM at Chanthaburi, with infrastructure established (power, concrete pad, site office, storage silos, access road, water intake, etc.). Lay out of 14 ponds Power
Slide 13: Consolidated Financials
CONSOLIDATED FINANCIALS RIDLEY | INVESTOR PRESENTATION | 2017 FINANCIAL YEAR 13
Slide 14: Balance Sheet - Assets
BALANCE SHEET - ASSETS Balance Sheet June June June June Cash and cash equivalents - the closing balance is a function of timing of receipts/ - in $m 2017 2016 2015 2014 payments and draw down/repayment of bank funding. Cash & equivalents 16.5 28.5 35.0 19.2 Inventory - task force in place to pr
Slide 15: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Balance Sheet June June June June Payables - reflects timing of creditor - in $m 2017 2016 2015 2014 payments within agreed terms. Current payables 148.6 145.9 158.7 129.4 Tax - tax payable on current year profits covered by instalment payments based on low 24.7% effe
Slide 16: Cash Flow
CASH FLOW Consolidated group EBITDA of $54.4m, Consolidated Cash flow - in $m FY17 FY16 FY15 FY14 with operating cash flow up $10.7m to $37.6m. Consolidated group EBITDA 54.4 61.1 51.0 41.0 $2.6m increase in working capital, with Movement in working capital (2.6) (19.3) 7.0 (5.5) $9.9m increase
Slide 17: 5 Year Financial Summary
5 YEAR FINANCIAL SUMMARY Consolidated results - in $m FY17 FY16 FY15 FY14 FY13 Consolidated group EBITDA 54.4 61.1 51.0 41.0 37.9 Add back: Property 1.0 2.0 2.7 2.2 1.9 Non-recurring items (inc Dry Creek FY13-16) (4.3) (4.0) 2.7 1.9 (3.4) Core business EBITDA 51.1 59.1 56.4 45.1 36.4 Depreciation &
Slide 18: Property
PROPERTY RIDLEY | INVESTOR PRESENTATION | 2017 FINANCIAL YEAR 18
Slide 19: Property
PROPERTY Surplus property holding costs - reduced down to c.$1.0m p.a. for former salt field sites at Lara and Moolap. Lara - subdivision of site approved to facilitate small plot sales, with new land titles expected to be issued post balance date. Moolap - release of Victorian State Governmen
Slide 20: Outlook
OUTLOOK RIDLEY | INVESTOR PRESENTATION | 2017 FINANCIAL YEAR 20
Slide 21: Outlook - Operations
OUTLOOK - OPERATIONS Poultry and Pig - a full year of operation of the new Lara feedmill to contribute positively to poultry and pig performance in FY18 through operational efficiencies and winning new business, with continued support provided to accommodate industry growth based on consumer deman
Slide 22: Outlook - Strategy
OUTLOOK - STRATEGY NE Geelong feedmill - Commercial Feed team to implement plan to secure new poultry and pig volume based on unrivalled customer value proposition for the region and world class facility. New feedmills - currently awaiting the requisite development approvals for the new Tasmania
Slide 23: Contact Details
CONTACT DETAILS Tim Hart Managing Director and Chief Executive Officer Email: Tim.Hart@ridley.com.au Tel: +61 3 8624 6500 Fax: +61 3 8624 6414 Mobile: + 61 404 480 542 Ridley Corporation Limited ABN 33 006 708 765 Level 4, 565 Bourke Street Melbourne, VIC. 3000 Australia www.ridley.com.au RIDLEY | I
Slide 24: Appendices
¢ RIDLEY APPENDICES
Slide 25: Ridley Strategy
RIDLEY STRATEGY “Our Mission is to improve the cost of feed to yield ratio for our customers” Execution of our Mission Our 6 Strategic Platforms enable us to will enable us to achieve deliver on our Mission our Vision to be: Australia’s leading producer of premium quality, high performance animal nu
Slide 26: Outlook – Regional Growth
OUTLOOK – REGIONAL GROWTH • Dairy In 2012-13, Australian farms produced:- • Beef • $13.2 bn of livestock (for meat) • Animal meals and fats • $6.9 bn of livestock products (wool, dairy etc) • High-performance raw materials • $2.3 bn of fish and other marine produce … all forecast to have strong expo
Slide 27: Growth Opportunities
GROWTH OPPORTUNITIES Capture market share with Long term, cost effective customer value proposition & surety of highest quality innovative protein sources to supply to provide solutions extend the superior product, for customer expansion safety & service offering and capital constraints Ridley 1.9mt
Slide 28: Brands and Customers
BRANDS AND CUSTOMERS Brand Overview Customers / market position Barastoc offers a range of pellets, meals, concentrates and premixes specifically for- Bulk customers range from the small independents to mulated to meet the nutritional requirements of dairy cattle, pigs, poultry, horses, the largest
Slide 29: Corporate Snapshot
CORPORATE SNAPSHOT Corporate focus: Australia’s leading supplier of premium quality, high performance animal nutrition solutions $2.00 Ridley TSR ASX – as at close of business on Ridley Share Price ASX 200 Accumulation Index (based to Ridley) 22 August 2017 - RIC $1.75 Small Ords Accumulation Index
Slide 30: Locations and Sectors
LOCATIONS AND SECTORS RIDLEY Monogastric meals, concentrates and premixes for poultry Ruminant ellets, r ends, concentrate Packaged Products Aquafeeds —_| Extruded and steam pelleted products for all major (3) | fin-fish an s, and novel feed ingredient: intention °
Slide 31: Nelson Cove Coastal Solution Concept
NELSON COVE COASTAL SOLUTION CONCEPT Solution for flood 2,000 construction 1,100+ acres of bird prone neighbouring and permanent jobs sanctuary preserved residential areas for the region forever Low lying Ridley-owned Lara shoreline land available for subject to sale inundation, sea level rise, and
Slide 32: Novacq - A Revolution in Feed
NOVACQ™ - A REVOLUTION IN FEED Lab-based trials over the past 4 years in both Australia and Thailand, Harvested consistently demonstrated Biomass improvements of 40% or more. NovacqTM to be dewatered Trials also exhibit improvements in animal well-being via enhanced and dried resistance to viral
Slide 33: Novacq - Yamba Production Site
NOVACQTM - YAMBA PRODUCTION SITE 7.5Ha of prawn ponds in Yamba, NSW secured for NovacqTM production Strategy - facilitates the scale up to production of commercial feed quantities of NovacqTM for domestic requirements and overseas trials. Ponds have been lined, silos have been erected and bunded
Slide 34: Chanthaburi Feedmill (1)
CHANTHABURI FEEDMILL (1) 49% interest acquired in FY16 to jointly operate with co-owner using Ridley diets, knowhow & nutrition. Existing 30kt capacity with infrastructure in place to expand to 55kt. Full extrusion plant, unique to Thailand feedmillers. Modern design, with high safety standa
Slide 35: Chanthaburi Feedmill (2)
CHANTHABURI FEEDMILL (2) Feedmill Feedmill co-owner’s residence and Gulf of Thailand prawn farm headquarters Ten year lease secured on 14 former prawn ponds to produce NovacqTM Ideally located in a major prawn growing region of Chanthaburi, Thailand Strategy - feedmill to service the local & dom
Slide 36: Chanthaburi and Trat Region
CHANTHABURI AND TRAT REGION Capacity to expand NovacqTM production by securing other ponds within the current farm The Chanthaburi and Trat region has a high concentration of prawn farms, & good logistics to service other prawn growing Exsting regions. Feedmill Trat already has 4 lane highway >
Slide 37: Global Prawn (Shrimp) Production
GLOBAL PRAWN (SHRIMP) PRODUCTION The opportunity in Asia is substantial and growing fast Global shrimp production growth (kt) Insights 4,190 4,338 4,455 GLOBAL Asia accounts for 85% of global shrimp production 3,779 CAGR 577 605 663 90-13 • China the largest producer with 38% of global production an