Ridley Corporation Limited · ASX:RIC
Ridley — Shareholder Meeting (2005)
31 slides from Ridley's shareholder meeting presentation, 2005
Slide 1: Ridley
RIDLEY RIDLEY
Slide 2: Introduction
Introduction • Ridley Nutrition Solutions – Sweetlix – acquired July 04 - US$16.7m • Cheetham Salt – Dry Creek – acquired May 05 - A$54.5m
Slide 3: Ridley Nutrition Solutions
Ridley Nutrition Solutions RIDLEY
Slide 4: RNS Business Units
RNS Business Units RNS Block Equine Specialty Operations Sweetlix Nutrition Products • Characteristics of RNS range are: • Sustainable high margin sales • Packaged delivery format rather than bulk • Nutritional supplements rather than base diet
Slide 5: Ridley Nutrition Solutions – "RNS"
Ridley Nutrition Solutions – "RNS" • Established as a separate business in 2005 • RNS is a significant part of our business. In FY05, it accounted for: • 17% of Ridley Inc. sales • 31% of Ridley Inc. EBITDA • Strong market position – leading "free choice" supplements provider in North America • Sign
Slide 6: RNS Focus
RNS Focus • Focus on beef, dairy and equine • "Free choice" supplements, which provide proteins and minerals to complement pasture • Feed blocks provide a controlled intake of nutrients, which helps producers control costs • Large range of patented products
Slide 7: Key growth drivers for RNS
Key growth drivers for RNS • Research and Development effort • Extensive product training for staff and distributor network • Strong platform for margin protection. Brand led rather than commodity-based • Geographical coverage and product reach • Leverage existing customer relationships and distribu
Slide 8: Ridley Block Operations
Ridley Block Operations RIDLEY BLOCK OPERATIONS RIDLEY
Slide 9: Ridley Block Operations
Ridley Block Operations • Ridley Block Operations is the largest low-moisture block manufacturer in North America • CRYSTALYX® is the most recognized brand of livestock supplements in North America • CRYSTALYX® can help limit the time cattle graze on environmentally sensitive areas • CRYSTALYX® has
Slide 10: Locations
Locations Ridley Block Operations 500 Mile Radius in 100 Mile Increments Alberta WORTHINGTON WHITEWOOD S Dakota Minnesota STOCKTON California BUFFALO Texas
Slide 11: Sweetlix
Sweetlix Sweetlix. LIVESTOCK SUPPLEMENT SYSTEM “2 RIDLEY
Slide 12: Sweetlix acquisition
Sweetlix acquisition • Acquired July 2004 • Market share increased to 23% from 16% • New products – broader range • Strong brand portfolio to complement existing brands • Improved geographic spread and access to new customers for existing business • Marketing and cost synergies • Experienced managem
Slide 13: The Sweetlix Product Range
The Sweetlix Product Range 2 Seanresesti | <¢ Sweetlix RIDLEY
Slide 14: Geographic spread – Sweetlix facilities
Geographic spread – Sweetlix facilities… Syracuse Indiana Montgomery Fort Worth Alabama Texas Sweetlix Facilities
Slide 15: … complement existing RBO facilities
… complement existing RBO facilities Whitewood Worthington Syracuse Stockton Fort Worth Montgomery Buffalo Sweetlix facilities RBO Facilities
Slide 16: Ridley Equine Nutrition
Ridley Equine Nutrition
Slide 17: Ridley Equine Nutrition
Ridley Equine Nutrition • Dedicated mills for the manufacture of equine products. Removes cross-contamination risk • Located in Kentucky and Pennsylvania, areas with high concentration of performance horses • Modern facilities
Slide 18: US Horse Population – Equine facilities
US Horse Population – Equine facilities
Slide 19: Ridley Specialty Products
Ridley Specialty Products ra RIDLEY SPECIALTY PRODUCTS RIDLEY
Slide 20: Ridley Specialty Products
Ridley Specialty Products • Target consumer is the hobby farmer • New area for RNS. Just moving out of start up phase • Private label distributed to mass market via rural stores • Attractive margins and potential to grow tonnage in different market sector
Slide 21: RNS growth
250 RNS growth 90 US $m 000 tonnes per annum • Bars show tonnes (left axis) 80 200 • Lines show $USm (right axis) 70 • Compound annual growth in tonnes of 34% 60 150 50 40 100 30 50 20 10 2005 0 0 2002 2003 2004 2005 Tonnes Sw eetlix Sales
Slide 22: Plans for RNS
Plans for RNS • Continue to grow business • Synergies with Ridley Feed Operations • Capitalise on distribution channels and customer reach • Continue to develop and enhance products • Pursue export opportunities: • Mexico • France • Chile • Japan • S Korea • Ireland • South Africa • Brazil
Slide 23: Cheetham Salt
Cheetham Salt 2) Cheetham RIDLEY
Slide 24: Cheetham Salt Limited
Cheetham Salt Limited • Ridley now operates 12 solar salt fields • 330 employees • Produces 1.4 million tonnes per annum Bowen • Safety record – top 10% in Australia Port Alma • Developing export markets Bajool WSR (JV) Kevin Lochiel Price Wakool DRY CREEK Sea Lake Corio Salt Field Moolap Lara Refin
Slide 25: Dry Creek Financials
Dry Creek Financials Purchase Price $ 54.5m Stamp Duty $ 3.0m Legal & Incidental Costs $ 0.7m Total Acquisition Cost $ 58.2m EBITDA FY06 $ 7.0m
Slide 26: Dry Creek Salt Field is located on the outskirts of Adelaide
Dry Creek Salt Field is located on the outskirts of Adelaide, close to the Penrice plant Amcor Glass Plant (35kms from Penrice) PENRICE DRY CREEK SALT FIELD • 9000 ha of land, 4,500 ha salt field brine pipeline • 10 km brine pipeline to Penrice OI (ACI) Glass Plant (10kms from Penrice) ADELAIDE CBD
Slide 27: The field was established in the 1930's
The field was established in the 1930’s, with the intention of supplying the soda ash industry with salt
Slide 28: Largest solar salt operation in Eastern Australia
It is the largest solar salt operation in Eastern Australia, producing an average of 650,000 tonnes of product per annum
Slide 29: Supply 600,000 tonnes p.a to Penrice under take or pay contract
Supply 600,000 tonnes p.a to Penrice, via the brine pipeline, under a ‘take or pay’ contract
Slide 30: Penrice Soda Holdings
Penrice Soda Holdings • Penrice is the domestic market leader – 77 per cent of Soda Ash market; 75 per cent of Sodium Bicarbonate market • Sole domestic manufacturer of Soda Ash and Sodium Bicarbonate – core ingredients in glass, detergents and stockfeed
Slide 31: Soda Ash Salt from Dry Creek
Final uses/products • glass (eg wine bottles) • detergents & soaps Soda Ash • chemical manufacture • mining & metals Australia • animal feed • baking soda (food) Salt from Sodium Dry Creek Bicarbonate • industrial Japan • bath additives • kidney dialysis • food Other overseas markets