Slide 1: Ridley Corporation Limited Investor Presentation – 2018 Financial Year
RIDLEY CORPORATION LIMITED INVESTOR PRESENTATION – 2018 FINANCIAL YEAR 1
Slide 2: Ridley
RIDLEY Yamba-produced NovacqTM included in domestic commercial prawn feed trials. Thailand NovacqTM production facility established and production commenced. Growth in Ruminant and Poultry with uplift in drought feeding for beef & sheep. Improved Laverton Rendering result but Maroota impacte
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated Full year Ridley operating result of $43.3m result - in FY18 FY17 FY16 FY15 FY14 achieved after c.$7.3m loss of Red Lea AUD$million ($m) raw material supply to Maroota rendering EBIT – Ridley business reported during the year. operations before 43.3 45.8 53.7 50.4
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated result Net finance expense - consistent with FY18 FY17 FY16 FY15 FY14 - in $m prior year. EBIT before non- Reduction in effective tax rate on 38.0 34.9 42.1 38.8 29.3 recurring items operations to 23.3% reflects prior year Net Finance Expense (4.6) (5.0) (5.4) (
Slide 5: Operations
OPERATIONS RIDLEY | INVESTOR PRESENTATION | 2018 FINANCIAL YEAR 5
Slide 6: Ridley Journey
RIDLEY JOURNEY Agri/Salt Rendering Animal Nutrition Solutions - Animal Nutrition mixed becomes market core focus on stabilising & growing core Solutions / Value message competency animal nutrition business add Ingredients 2013 2014 2015 2016 2017 2018 2019 2020 M&A: Purchase of 2nd M&A: Looking for
Slide 7: Ridley Mission
RIDLEY MISSION Compliance & Safety TRFR/LTIFR/MTI - Medically Treated Injuries of 4 for the year an all time equal Ridley low Livestock Yield / Performance Tasmanian extrusion Chilling of offal, Supply agreements removal of paunch, for high performing “Our Mission is to plant & Bendigo Feedmill segr
Slide 8: Financial Highlights - Operations
FINANCIAL HIGHLIGHTS - OPERATIONS EBIT result for agribusiness of $43.3m before non-recurring items - Dairy, Poultry, Beef and Sheep, Supplements and Laverton Rendering all enjoyed growth in a year impacted by the loss of Maroota’s largest supplier of poultry raw material and by inventory legacy i
Slide 9: Adverse Events in FY18
ADVERSE EVENTS IN FY18 MAROOTA The MD’s 2017 AGM address noted that “Reduced intake volumes from major poultry supplier to Maroota is a concern” and this was followed up in the half year investor presentation with “Sharp reduction in Q2 poultry raw material intake at Maroota rendering plant.”
Slide 10: Sector Volume History – in '000 Tonnes
SECTOR VOLUME HISTORY – IN ‘000 TONNES Sector FY18 FY17 FY16 FY15 FY14 FY13 FY12 FY11 FY10 Long term Industry Outlook Poultry 1,207 1,155 1,044 1,013 1,019 872 933 900 764 Aqua-feed 32 35 54 65 50 42 47 50 47 Packaged 75 75 78 83 90 90 85 84 90 Dairy 260 226 284 291 275 251 260 236 215 Pig 186 193 1
Slide 11: Novacq
NOVACQTM RIDLEY | INVESTOR PRESENTATION | 2018 FINANCIAL YEAR 11
Slide 12: Novacq - Year Ahead of Original Plan
NOVACQTM - 1 YEAR AHEAD OF ORIGINAL PLAN CSIRO Licence Crustacean – All the world secured in FY17 except for China and Vietnam. For all other non-human species – all the world secured in FY17. Implications of feeding 5% inclusion rate & Replacement of fish meal protein Improvement of 37% in NovacqTM
Slide 13: Yamba - Last Twelve Months
YAMBA - LAST TWELVE MONTHS Ongoing process of continuous improvement to further improve Harvested yield and drive down the cost of production. Increase in power NovacqTM to be supply has facilitated uplift in aeration and consequently yield. dewatered and dried Dewatering and drying solution ach
Slide 14: Chanthaburi - Last Twelve Months
CHANTHABURI - LAST TWELVE MONTHS Ten year lease - 14 former prawn ponds now converted and local production of NovacqTM has commenced at Chanthaburi, with infrastructure established (power, concrete pad, site office, storage silos, access road, water intake, etc.). Lay out of existing 14 ponds Powe
Slide 15: CSIRO Alliance - Last Twelve Months
CSIRO ALLIANCE - LAST TWELVE MONTHS Management Committee - fully functional, with meetings held at CSIRO Brisbane office, CSIRO facilities on Bribie Island, Clayton in Victoria, and at Yamba operating site in NSW. Science & Operational Committee - similarly functioning effectively, with detailed
Slide 16: Novacq - Options to Accelerate Growth
NOVACQTM - OPTIONS TO ACCELERATE GROWTH On 25 May 2018 Ridley announced the appointment of Investec to explore options to accelerate the growth of NovacqTM into new markets. Acceleration includes acquisition of production land in Thailand, pond conversion and equipment, corporatisation of Novacq
Slide 17: Consolidated Financials
CONSOLIDATED FINANCIALS RIDLEY | INVESTOR PRESENTATION | 2018 FINANCIAL YEAR 17
Slide 18: Balance Sheet - Assets
BALANCE SHEET - ASSETS Balance Sheet June June June June June Cash and cash equivalents - closing balance is a function of - in $m 2018 2017 2016 2015 2014 timing of receipts/payments and draw down/repayment of bank funding. Cash & equivalents 23.4 16.5 28.5 35.0 19.2 Inventory - reflects write
Slide 19: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Balance Sheet June June June June June Payables - reflects timing of creditor - in $m 2018 2017 2016 2015 2014 payments within agreed terms. Tax - tax payable on current year profits is Current payables 155.9 148.6 145.9 158.7 129.4 fully covered by instalment payment
Slide 20: Cash Flow
CASH FLOW Consolidated group EBITDA of $43.7m Consolidated Cash flow - FY18 FY17 FY16 FY15 FY14 after non-recurring item of $11.6m. in $m $15.3m improvement in working capital Consolidated group EBITDA 43.7 54.4 61.1 51.0 41.0 includes $8.4m non-cash write off of Movement in working capital 15.3
Slide 21: Return on Funds Employed
RETURN ON FUNDS EMPLOYED Consolidated results - in $m FY18 FY17 FY16 FY15 FY14 FY13 Consolidated group EBITDA 43.7 54.4 61.1 51.0 41.0 37.9 Add back: Property - (profit)/loss (4.2) 1.0 2.0 2.7 2.2 1.9 Non-recurring items (inc Dry Creek FY13-16) 11.6 (4.3) (4.0) 2.7 1.9 (3.4) Core business EBITDA 51.
Slide 22: Property
PROPERTY RIDLEY | INVESTOR PRESENTATION | 2018 FINANCIAL YEAR 22
Slide 23: Property
PROPERTY LARA • $6.1m of property sale proceeds generated in FY18 from 3 LARA separate sale transactions, generating Property segment EBIT of $4.2m. • Further $9.5m raised in July 2018 LOT A - SOLD for sale of Lots A & C, for EBIT of JULY 2018 c.$8.2m. • Lot D under option agreement for land-based a
Slide 24: Outlook
OUTLOOK RIDLEY | INVESTOR PRESENTATION | 2018 FINANCIAL YEAR 24
Slide 25: Outlook - Animal Nutrition Solutions
OUTLOOK - ANIMAL NUTRITION SOLUTIONS Poultry and Pig - we are working to mitigate the loss of Ingham volume from mid-October 2018 with other incremental volume. The positive long term outlook for poultry remains unchanged and will be supported by the new 350kt capacity feedmill in Central Victoria
Slide 26: Bendigo & Tasmania
BENDIGO & TASMANIA New poultry and pig feed mill announced in September 2017, BENDIGO with final site preparation being undertaken by the vendor to facilitate completion of land acquisition & project commencement. Underpinned by 10 year supply agreement with Hazeldene’s Chickens, with capacity t
Slide 27: Ridley Footprint
RIDLEY FOOTPRINT NovacqTM ingredients business established at Chanthaburi New feedmill to construct at Bendigo and phase out existing mill New extrusion plant under construction at 27 Westbury
Slide 28: Outlook - Novel Feed Ingredient Novacq
OUTLOOK - NOVEL FEED INGREDIENT NOVACQTM NovacqTM Australia Move to commercial status from 1 July 2018, one year ahead of original five year timeline; Implement dewatering & drying process using the preferred technology solution; Establish pricing model for 2018/19 Australian growing season
Slide 29: Outlook - Strategy
OUTLOOK - STRATEGY Poultry - newly appointed General Manager to lead Commercial Feed team to execute plan to secure new poultry and pig volume (i) based on customer value proposition from Lara feedmill and (ii) to replace Ingham volume expected to be withdrawn in October 2018. New extrusion plan
Slide 30: 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 ASX: RIC R