Slide 1: FY21 1H Results
FY21 1H RESULTS Growth Strategy Delivering Improved Earnings Quinton Hildebrand, CEO Alan Boyd, CFO 24 February 2021
Slide 2: FY21 1H Highlights
FY21 1H HIGHLIGHTS Strong earnings and cash generation EBITDA FROM ONGOING OPERATIONS BEFORE SIGNIFICANT ITEMS 12.9% (pcp) increase in earnings 40 driven by the execution of the 35 30 $37.6 Growth Strategy 25 million 20 Growth Strategy Group portfolio demonstrates $ Millions 15 10 5 resilience to se
Slide 3: Delivering Operational Excellence
DELIVERING OPERATIONAL EXCELLENCE Record Safety Performance and Improved Engagement 25 Incidents per million hours worked 20 15 10 5 Safe Working 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY20 H1 Environments LTIFR TRFR Linear (LTIFR) Linear (TRFR) Improved Efficient Stakeholder Operations Conf
Slide 4: Segment Performance
Segment Performance. New reporting segments from 1 July 2020.
Slide 5: Bulk Stock Feeds
BULK STOCK FEEDS Comprising the Group’s premium quality, high performance animal nutrition stockfeed solutions delivered in bulk. • Reduction in beef, sheep and dairy sales volumes with FY21 1H FY20 1H Variance cessation of drought feeding and abundance of pasture. EBITDA before individually 14,553
Slide 6: Packaged Feeds & Ingredients
PACKAGED FEEDS & INGREDIENTS Comprising the Group’s premium quality, high performance animal nutrition feed and ingredient solutions delivered in packaged form from 1 tonne bulka bag down to 3kg bags. • Record operational efficiency in rendering due to improved FY21 1H FY20 1H Variance plant reliabi
Slide 7: Financial Results
Financial Results. Strong operating performance.
Slide 8: Profit & Loss Summary
PROFIT & LOSS SUMMARY 1 Consolidated Result - in ($m) FY21 1H FY20 1H Analysis of FY21 1H result EBITDA - Bulk Stockfeeds 14.6 18.2 See Reporting Segment (slide 5). EBITDA - Packaged Feeds and Ingredients 23.0 15.1 See Reporting Segment (slide 6). EBITDA – Ongoing operations before significant items
Slide 9: Balance Sheet Assets
BALANCE SHEET ASSETS Balance Sheet - in $m Dec June Analysis of balances at 31 December 2020 2020 2020 Cash & cash equivalents 35.2 45.8 Balance is a function of timing of receipts/payments and draw down/repayment of bank funding. Reflects utilisation of 30 June 2020 stock build for prawn growing se
Slide 10: Balance Sheet Liabilities
BALANCE SHEET LIABILITIES Dec June Balance Sheet - in $m Analysis of balances at 31 December 2020 2020 2020 Current payables 158.3 161.3 Reflects timing of creditor payments within agreed trading terms. Current borrowings - 193.0 Accounting standard requirement to report borrowings as current as not
Slide 11: Cash Flow
CASH FLOW Consolidated Cash flow - in $m FY21 1H FY20 1H Analysis of cash flows for FY21 1H Consolidated EBIT 19.1 2.6 After accounting for Individually significant items. Depreciation and amortisation (DA) 15.1 12.9 Aggregate depreciation and amortisation charges to profit and loss for the half yea
Slide 12: Net Debt, Gearing and Leverage
NET DEBT, GEARING AND LEVERAGE Major capital projects - in $m FY21 1H FY20 2H FY20 1H FY19 FY18 Development capital expenditure 1 2.6 18.1 24.8 60.0 21.1 Maintenance capital expenditure 6.4 4.8 8.5 13.3 15.1 Net debt and gearing - in $m 31 DEC 2020 30 JUN 2020 31 DEC 2019 30 JUN 2019 30 JUN 2018 Gro
Slide 13: Growth Strategy
Growth Strategy. A focus on improvements in core business, whilst growing sales.
Slide 14: Growth Strategy
GROWTH STRATEGY A focus on improvements in core business, whilst growing sales Optimisation Sales growth Expansion / innovation There are significant The new structure provides In time, our pipeline of opportunities within Ridley a single point of innovation opportunities (of to simplify the busines
Slide 15: Growth Strategy: Earnings Growth Potential
GROWTH STRATEGY A focus on improvements in core business, whilst growing sales EARNINGS GROWTH POTENTIAL • NovacqTM operational efficiencies • NovacqTM international sales EXPANSION / • New range of Packaged Products INNOVATION • Rendering product development • Acquisitions • Westbury utilisation SA
Slide 16: Optimising the Core Business
OPTIMISING THE CORE BUSINESS Ridley’s service offering covers the entire spectrum of animal nutrition services, with scale and key ILLUSTRATIVE ingredients providing competitive advantage SUPPLY CHAIN Domestic Export Building on our competitive Sales Sales Meat Vitamins & Grains & Vegetable Novacq™
Slide 17: Successful Change Management
SUCCESSFUL CHANGE MANAGEMENT The team responsible for transitioning the business BULK PACKAGED / INGREDIENTS STOCKFEEDS People, CEO Safety & Quality Daniel Cox Quinton Hildebrand 6y3m 1y6m Merchandising CFO Michael Reeves Alan Boyd 9y9m 11y10m Nutrition & General Technical Counsel & Company Packaged
Slide 18: Outlook
Outlook. On track to deliver improved earnings. 18
Slide 19: Outlook
OUTLOOK Ridley considers that it has controls in place to manage employee welfare and potential business interruption from the ongoing risk of COVID-19. Second half earnings are expected to be supported by: • an improvement in the performance of the Bulk Stockfeeds segment; • the ongoing strength in
Slide 20: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer The material in this presentation is general background information about the activities of Ridley Corporation Limited and its related entities (Ridley), current at the date of this presentation, unless otherwise stated. The content is information given in
Slide 21: Appendix
Appendix. Supporting information.
Slide 22: Profit & Loss Summary
PROFIT & LOSS SUMMARY FY19 FY18 FY17 Consolidated Result - in ($m) FY21 1H FY20 1H Analysis of FY21 1H result 1H 1H 1H EBITDA – Ongoing operations before Individually significant items 37.6 33.3 Up $4.3m, or 12.9% on prior year period. 30.6 31.8 30.0 Corporate Costs (5.2) (5.8) $0.6m reduction in to
Slide 23: Balance Sheet: Assets
BALANCE SHEET Assets 31 Dec June 31 Dec June Jun Jun Balance Sheet - in $m Analysis of balances at 31 December 2020 2020 2020 2019 2019 2018 2017 Balance is a function of timing of receipts/payments and draw down/repayment Cash & cash equivalents 35.2 45.8 39.8 17.5 23.4 16.5 of bank funding. Reflec
Slide 24: Balance Sheet: Liabilities
BALANCE SHEET Liabilities 31 Dec June 31 Dec June June June Balance Sheet - in $m Analysis of balances at 31 December 2020 2020 2020 2019 2019 2018 2017 Current payables 158.3 161.3 Reflects timing of creditor payments within agreed trading terms. 172.1 158.8 155.9 148.6 Accounting standard requirem
Slide 25: Cash Flow
CASH FLOW Consolidated Cash flow - in $m FY21 1H FY20 1H Analysis of movement FY19 1H FY18 1H FY17 1H Consolidated EBIT 19.1 2.6 Consolidated EBIT (Operations less Corporate) after individually significant items. 15.4 18.7 19.8 Depreciation and amortisation (DA) 15.1 12.9 Aggregate depreciation and
Slide 26: Contact Details
Contact details Quinton Hildebrand Chief Executive Officer E: Quinton.Hildebrand@ridley.com.au P: +61 3 8624 6529 Ridley Corporation Limited ABN 33 006 708 765 Level 4, 565 Bourke Street Melbourne, VIC. 3000 Australia ridley.com.au ASX: RIC