Slide 1: Ridley Corporation FY2010 Results Presentation
RIDLEY CORPORATION FY2010 RESULTS PRESENTATION INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Group NPAT off $29.1m, G $29 1 up $8.8m $8 8 or 43% Consolidated result 2010 2009 on 2009 before significant items; up $m $m $16.2m or 125% after significant items Sales Revenue 728.0 819.4 Second successive reco
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Sale Includes Ridley Inc. Inc Post Ridley Inc. ROFE in FY06 FY07 FY08 FY09 # FY10f FY10a double figures for ROFE ((%)) 8.2% 6.7% 3.2% 4.7% 9.2 – 9.8% 10.4% first time EBITDA ($m) 81.5 74.4 48.3 41.3 54 - 59 58.5 NPAT
Slide 4: Ridley AgriProducts Results Presentation
RIDLEY AGRIPRODUCTS RESULTS PRESENTATION INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 5: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Record R d EBIT result l off $29.0m, $29 0 b business i wellll positioned ii d ffor ffurther h growth Clifton mill recommissioned to service Queensland demand from new long term Inghams and Darwalla poultry contracts Imp
Slide 6: Sales Volumes
SALES VOLUMES INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK S t Sector 2010 2009 Poultry: growth from new long term customer contracts contracts, market growth of chicken consumption and growth in niche (kt) (kt) turkey and duck sectors Poultry 764 708 Aqua-feed: sales growth an
Slide 7: Financial Summary
FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Profit & Loss 2010 2009 Record R d EBIT result lt off $29.0m $29 0 is i $m $m sustainable and the business is well positioned for further growth Sales 620.0 716.9 Sales decline largely g y reflect loss EBITDA 36.6 3
Slide 8: Cash Flow
CASH FLOW INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK 2010 2009 $5.5m $5 5 (18%) iimprovementt iin Cash flow EBITDA over 2009 $m $m EBIT 29.0 24.4 Net working capital movement increase of $2.5m in FY10 Depreciation 7.6 6.7 to reflect inventory positions at year end; EBITDA 3
Slide 9: Segment Outlook
SEGMENT OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Macro ac o Economic co o c Environment o e t Different drivers to broader economy Limits to the availability of arable land and increased focus on intensive feeding 2050 world growth requirements#: 70% increase in
Slide 10: Growth Prospects
GROWTH PROSPECTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Growing poultry market Increasing consumer preference for fresh white meat products Increasing g Ridley y market p penetration supported pp by y long g term contracts Growing market for aquaculture products Increas
Slide 11: Segment Strategy
SEGMENT STRATEGY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Strategic Actions for FY11 Aligning Ridley poultry focus to regional growth areas in South Australia and South East Queensland Securing additional Aqua-feed volumes through continuous improvement of specialised diets
Slide 12: Cheetham Salt Results Presentation
CHEETHAM SALT RESULTS PRESENTATION INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Slide 13: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK EBIT result lt off $16 $16.8m, 8 up $3 $3.9m 9 or 30% on 2009 Steady growth in Joint Venture NPAT to $7.2m, with major expansion in progress in New Zealand Robust domestic sales with growth across most sectors C Contin
Slide 14: Sales Volumes
SALES VOLUMES INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK S t Sector 2010 2009 Soda Ash volumes ol mes do down n slightl slightly due d e to weaker eaker (kt) (kt) demand from Penrice Chemical includes one additional chlor-alkali Soda Ash 566.8 580.4 water treatment shipment C
Slide 15: Financial Summary
FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Profit & Loss 2010 2009 Sales revenue growth of 6.3% in line with $m $m 5.8% volume increase Sales 107.9 101.5 No one-off crude salt losses or ERP implementation costs in 2010 (2009: $4.8m) EBITDA (excl. JVs) 21.3 1
Slide 16: Financial Summary (cont'd)
FINANCIAL SUMMARY (cont’d) INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Balance sheet 2010 2009 Dominion Salt JV has retained $m $m funds to internally finance major capital works rather than distribute Cheetham Funds Employed 188.2 187.2 cash from after tax p profits, thereby y
Slide 17: Segment Outlook
SEGMENT OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK M Macro Economic E i Environment E i t Salt demand typically grows in line with population growth and GDP Cost C t pressures mirror i those th in i the th mining i i and d ttransportt iindustries d ti Market Environme
Slide 18: Property
PROPERTY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Strategy Strategy remains to unlock the potential value of land close to urban centres and surplus to operating requirements Some small initial sales but with potential larger scale sites the focus is on delivery of longer t
Slide 19: Lara
LARA INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Lara Salt Avalon Fields Airport Avalon air strip 912ha site adjacent to Avalon airport, Vic Preliminary discussions on re-zoning held Medium term 1-3 years Land available now Carrying value ~$0.5m 19
Slide 20: Dry Creek Salt Field
DRY CREEK SALT FIELD INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Lara Salt Development Avalon of the Dry Creek Fields site Airport is consistent with Government’s 30 year plan for Ad l id Adelaide. Ridley Ridl is i working ki with ith Salt condensing ponds being the all stakeholde
Slide 21: Profit and Loss
PROFIT AND LOSS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK P fit and Profit d lloss 2010 2009 Group NPAT of $29.1m $29 1m slightly above $m $m midpoint of guidance of $28-$30m given at half year Sales Revenue 728.0 819.4 Second successive record result for EBIT - AgriProducts
Slide 22: Balance Sheet
BALANCE SHEET INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Balance Sheet 2010 2009 IIncrease in i Current C t Assets A t reflecting fl ti cash h on hand of $7.0m, $10.2m reduction in $m $m debtors offset by $11.3m of inventory build Total Current Assets 179.6 173.6 $17.1m of P,
Slide 23: Working Capital
WORKING CAPITAL INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Working g Capital p 2010 2009 Increased focus on credit limit $m $m management & timely debt Cash 7.0 0.3 collection Trade Debtors 77.7 88.4 Inventoryy increase of $11.3m Other Debtors and prepayments 4.4 3.9 reflects
Slide 24: Capital Expenditure
CAPITAL EXPENDITURE INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Items Agri Salt Total $7.3m $7 3 off d development l t capital it l expenditures in Cheetham Salt, $m $m $m primarily to complete the refinery Bajool Refinery - 4.8 4.8 upgrade program $5.5m ERP implementation wit
Slide 25: Cash Flow
CASH FLOW INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Strong operating cash flow of $49.4m; C h fl Cash flow 2010 2009 2009 inflated by working capital $m $m reduction from high opening debtor and Operating Cash flow before 49.4 58.1 inventory positions dividends received, inter
Slide 26: Financial Ratios
FINANCIAL RATIOS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK 2010 2009 Gearing stable at 25% $m $m * Very strong debt servicing Net Debt 72.0 69.1 capacity Equity 285.1 276.2 ROE has improved significantly to exceed 10% for the first time Total Assets 484.3 468.6 EPS growt
Slide 27: Conclusions
CONCLUSIONS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK 2009 was a watershed year for simplifying the business that has enabled the 2010 result to have transparency and simplicity Focus on our core business of processing value added agricultural products is generating rewards
Slide 28: Outlook
OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Recovery in Dairy has commenced, will take 12-24 months, but will see uplift in volume and earnings for Ridley Continued growth in poultry and Aqua-feed Aqua feed volumes Continued volatility in raw material input prices
Slide 29: Questions and Answers
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK QUESTIONS AND ANSWERS 29