Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — 21st Australasian AgFood Conference 2023
16 slides from Graincorp Limited Class A's conference presentation, May 30, 2023
Slide 1: Presentation to the Australasian AgFood Conference (ASX cover letter)
30 May 2023 The Manager, Companies Australian Securities Exchange Companies Announcement Centre 20 Bridge Street For personal use only SYDNEY NSW 2000 Dear Sir/Madam, GrainCorp Limited – Presentation to the Commonwealth Bank / AgFood / PAC Partners ‘Australasian AgFood Conference’ Please see attache
Slide 2: 21st Australasian AgFood Conference
Robert Spurway, Managing Director and CEO 21st Australasian AgFood Conference CBA / AgFood / PAC Partners For personal use only 30 May 2023
Slide 3: Disclaimer
Disclaimer For personal use only This presentation includes both information that is historical in character and information that consists of forward looking statements. Forward looking statements are not based on historical facts, but are based on current expectations of future results or events. T
Slide 4: About GrainCorp
About GrainCorp For personal use only GrainCorp is a leading Australian agribusiness and processing company, with integrated operations across four continents and a proud history of delivering for customers for more than 100 years. > > 3
Slide 5: Agenda
Agenda For personal use only • 1H23 results recap • Capital management • Outlook • Strategy update • Conclusion 4
Slide 6: Outstanding 1H23 performance
Outstanding 1H23 performance Excellent operational and financial results; strong balance sheet For personal use only 5
Slide 7: Balance sheet strength
Balance sheet strength Strong cash generation to end half-year at $200m core cash For personal use only Core cash / (debt) ($m) Debt and liquidity profile Components 31 Mar 2023 30 Sep 2022 31 Mar 2022 200 177 Term debt Inventory and working capital 129 financing Cash Net debt Commodity inventory (1
Slide 8: Delivering strong returns
Delivering strong returns Creating a consistent dividend profile through-the-cycle For personal use only Dividends (cents per share) Ordinary dividend Special dividend 16 10 12 • 1H23 interim dividend: total 24cps, fully franked • Ordinary dividend reflects Board’s confidence in through-the-cycle ea
Slide 9: Positive near-term and long-term outlook
Positive near-term and long-term outlook For personal use only FY23 guidance – upgraded on 11 May 20231,2: Good rainfall in most areas through March and April has supported ECA grower planting • EBITDA $500-560m2 (from $470 – 530m) • NPAT $220-260m2 (from $180 – 220m) Outlook – near-term: • Expect f
Slide 10: Average earnings through-the-cycle lifted to $310 million
Average earnings through-the-cycle lifted to $310 million Structural improvements and leverage to ECA crops drive higher average earnings For personal use only Average EBITDA through-the-cycle ($m) • GrainCorp’s average earnings through-the-cycle1 has risen to ~$310m due to: ― Increase in oilseed cr
Slide 11: Strategy aligned to macro trends
Strategy aligned to macro trends For personal use only Population growth / Decarbonisation and Disrupted global Technology/digital changing demographics sustainability supply chains acceleration • Multi-origin strategy • Sustainability and • Resilient, end-to-end • Progressing digital capability inn
Slide 12: Strategic priorities driving higher return on invested capital
Strategic priorities driving higher return on invested capital For personal use only Strengthen the core Targeted growth opportunities 11
Slide 13: Evaluating new oilseed crush plant
Evaluating new oilseed crush plant Opportunity to build on GrainCorp’s position as a leading supplier of renewable fuel feedstocks For personal use only GrainCorp’s existing integrated portfolio of feedstocks Used Cooking Oil (UCO) Canola oil Tallow • Assessing options for new oilseed crush capacity
Slide 14: GrainCorp Ventures
GrainCorp Ventures Investing to build long-term sustainable growth in Australian agriculture Four key investment areas: For personal use only Zetifi Analytics and optimisation • Announced December 2022 Optimising the value and quality of • Provides last-mile connectivity for vehicles, machinery and
Slide 15: Conclusion
Conclusion Conclusion For personal use only Outstanding 1H23 performance Strong balance sheet with significant flexibility Progressing strategy FY23 EBITDA guidance recently upgraded to $500-560m Average earnings through-the-cycle lifted from $240m to $310m Delivering strong financial returns GrainC
Slide 16: GrainCorp Corporate Office
GrainCorp Corporate Office: For personal use only Level 28 175 Liverpool Street Sydney NSW 2000 Australia Postal address: PO Box A268 Sydney South NSW 1235 Australia graincorp.com.au 15