Slide 1: Ridley Half Year Results Presentation
RIDLEY HALF YEAR RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK
Slide 2: Ridley Resilient
RIDLEY RESILIENT INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Period of severe adverse weather conditions - sustained periods of widespread and unseasonally high rainfall Stress testing of businesses - wet weather contingency plans actioned $1.0 milli
Slide 3: Ridley Resilient
RIDLEY RESILIENT INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Sustained periods of rainfall in dry season led to highest levels recorded on east coast for up to 50 years prior to onset of widespread flooding around half year end Abundance of natural pas
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Group NPAT of $15.9m, up $1.0m or 6% Consolidated result 1H 1H FY11 FY10 on 1H FY10 - in $m EBIT result for AgriProducts of $12.8m Sales Revenue 373.6 381.8 includes $0.4m contribution fr
Slide 5: Ridley AgriProducts Results Presentation
RIDLEY AGRIPRODUCTS RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK
Slide 6: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only EBIT result of $12.8m - temporary deviation from longer term growth path but highly resilient result in stressful period for the business Aqua-feeds - insulated from on-land adverse weather events
Slide 7: Sector Analysis
SECTOR ANALYSIS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Poultry: 24% growth from ramp up of long term Sector 1H 1H Outlook customer contracts, market growth of chicken FY11 FY10 consumption and growth in niche turkey and duck sectors (kt) (kt) Aqua
Slide 8: Financial Summary
For personal use only FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK Agriproducts ($m) 1H FY11 1H FY10 EBIT result of $12.8m recorded despite adverse weather Sales ($) 318.5 324.9 conditions. EBIT 12.8 14.1 # EBITDA maintained at 2010 level, Depreciation 4.3
Slide 9: Outlook
OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Macro Economic Environment 2H FY11 impact of widespread flooding too early to predict with sufficient precision to issue guidance at the present time Existence of abundant pasture through the summer s
Slide 10: Strategy
STRATEGY INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Strategic Actions for 2H FY11 Poultry - continue long term strategy to secure additional volumes in regional growth areas in South Australia and South East Queensland Aqua-feeds - continue to develop
Slide 11: Cheetham Salt Results Presentation
CHEETHAM SALT RESULTS PRESENTATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK
Slide 12: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only EBIT result of $11.3m, down $2.0m on corresponding period $2.0m adverse impact of severe weather events: ¾ 36% volume fall in stockfeed sector ¾ delays in reaching nameplate production capacity ¾ l
Slide 13: Sector Analysis
SECTOR ANALYSIS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Sector 1H 1H Soda Ash volumes down due to lower offtake FY11 FY10 by Penrice. (kt) (kt) Chemical FY10 comparative included the Soda Ash 260k 290k one off sale of low grade, prior year harvest
Slide 14: Financial Summary
FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Cheetham (A$m) 1H FY11 1H FY10 Sales revenue fall of only 3.0% despite 6.5% volume decrease Sales ($) 55.2 56.9 EBIT (excl. JV NPAT) 7.8 9.5 EBIT result before JV’s of $7.8m, Depreciation 2.
Slide 15: Outlook & Strategy
OUTLOOK & STRATEGY INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Macro Economic Environment The impact of the floods and subsequent restocking program uncertain at the present time, but flat overall volumes are likely for FY11 Salt demand typically grows
Slide 16: Dry Creek
DRY CREEK INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Feasibility study with Delfin Lend lease concluded in half year 22 October 2010 ASX release confirmed redevelopment of the Dry Creek site into a residential community is financially viable Redevel
Slide 17: Lara
LARA INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Lara Salt Avalon Fields Airport 912ha site adjacent to Avalon airport, Vic Medium term 1-3 years Land available now, carrying value ~$0.5m Avalon air strip Ecological & geotechnical assessments in progress P
Slide 18: Balance Sheet
BALANCE SHEET INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Balance Sheet in $m 1H 1H Increase in Current Assets from FY11 FY10 Dec 2009 reflects $9.6m increase Total Current Assets 190.9 186.2 in inventory due to higher grain prices offset by $3.8m decrea
Slide 19: Working Capital
WORKING CAPITAL INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Working Capital in $m 1H 1H FY11 FY10 Continued focus on credit limit management & timely debt Cash 10.8 10.0 collection Trade Debtors 89.8 89.5 Other Debtors and prepayments 4.2 8.4 Inventory
Slide 20: Capital Expenditure
CAPITAL EXPENDITURE INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Items in $m Agri Salt Total Completion of Cheetham refinery rationalisation strategy in prior Bajool Refinery - 0.3 0.3 year. ERP capitalisation largely Other 0.8 0.2 1.0 concluded by 30 J
Slide 21: Cash Flow
CASH FLOW INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Cash flow in $m 1H 1H Strong EBITDA performance despite FY11 FY10 severity of adverse weather conditions. EBITDA (inc JV NPAT’s) 27.8 29.3 Working capital and capex already covered. Final dividend
Slide 22: Financial Ratios
FINANCIAL RATIOS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Financial KPI’s 1H 1H FY11 FY10 Gearing stable reduced to 26.2% pre- Camilleri acquisition (33.5% Net Debt - in $m 75.8 78.4 post) with strong debt servicing Equity - in $m 288.9 281.5 capacity
Slide 23: Camilleri Stockfeeds
CAMILLERI STOCKFEEDS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK Acquisition of Camilleri Stockfeeds announced on 21 Jan 2011 Expected to complete around end of February 2011 following licence transfers etc Ideal complementary “bolt on” opportunity i
Slide 24: Camilleri Stockfeeds
CAMILLERI STOCKFEEDS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Poultry and fish only – low exposure to weather and seasonal fluctuation Significant blending capacity Export licences and only holder of EU licence, AQIS accredited for importing Imp
Slide 25: Sydney Basin Location
SYDNEY BASIN LOCATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK Proximity to Sydney + yet distanced from urban growth corridors 25 25
Slide 26: Aerial Site View
For personal use only AERIAL SITE VIEW INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK Hawkesbury River Old Northern Rd Adjacent sand quarry 26 26
Slide 27: Conclusions & Outlook
CONCLUSIONS & OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Half year result - weather impacted, delayed the returns to come from capital projects, but delivered strong operational cash flows despite sharp and sustained rises in grain prices Impa
Slide 28: Conclusions & Outlook
CONCLUSIONS & OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK For personal use only Integrate Camilleri acquisition to ensure EPS accretive in first 12 months Maintain strong cash conversion and recent dividend streams Manage capital expenditure within depreciation an
Slide 29: Ridley Corporation
RIDLEY CORPORATION For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS ACQUISITION OUTLOOK We feed the food that ends up on your plate Premium Solar Salt Ridley transformed and now a compelling proposition