Ridley Corporation Limited · ASX:RIC
Ridley — H1 2005 Earnings Presentation
31 slides from Ridley's earnings presentation, Feb 14, 2005
Slide 1: Ridley Corporation 2005 Half Year Results Presentation
RIDLEY CORPORATION 2005 HALF YEAR RESULTS PRESENTATION
Slide 2: Main Features
Main Features • Recovery in Australian Feeds • Ridley Inc – significant improvement in 2nd quarter – Sweetlix acquisition • Cashflow remains strong • Dividend increased • Guidance unchanged
Slide 3: Results
Results 6 months to December 2004 A$ million • Sales 603 -2% • EBITDA 36 -10% • EBIT 24 -15% • Net Profit 12 -3% • Dividend 3.25cps +30%
Slide 4: Sales By Division
Sales By Division A$ million 618 (13) 603 Currency (10) Cotswold (11) 8 Feed (9) 20 Feed Australia Feed RNS - USA Canada Sweetlix 2004 2005
Slide 5: Net Profit
Net Profit A$ million 12.7 12.4 (4.5) 3.8 Feed Canada Borrowing (3.0) 1.4 Feed USA costs, tax Cotswold (1.2) 0.4 and Salt 3.3 RNS outside (0.5) equity Corporate Feed costs Australia 2004 2005
Slide 6: 2005 Quarterly Earnings EBIT
2005 Quarterly Earnings EBIT A$ million 1Q 2Q Australia 6.1 7.1 Ridley Inc (1.7) 12.4 4.4 19.5
Slide 7: Feed - Australia
Feed - Australia A$ million Sales 226 -5% EBIT 7 +82% Features - Improvement in poultry, beef and supplements sectors - Dairy market yet to respond to higher milk prices - Benign grain markets - Costs contained - Industry consolidation
Slide 8: Feed – Australia Sales Volumes
Feed – Australia Sales Volumes Tonnes 000’s 785 4 (10) Swine Dairy 6 Supplements 17 721 20 Other Beef 27 Poultry 2004 2005
Slide 9: Feed – Australia EBIT
Feed – Australia EBIT A$ million 7.3 4.0 1.0 3.1 (1.8) 1.0 JV Volume Margins Costs 2004 2005
Slide 10: Cheetham Salt
Cheetham Salt A$ million Sales 36 +4% EBIT 9 -11% Features - Volumes up / product mix - Timing of bulk shipments - Japanese costs
Slide 11: Cheetham Salt EBIT
Cheetham Salt EBIT A$ million 10.6 (1.3) Product mix 0.9 9.4 Volume (0.8) Japan 2004 2005
Slide 12: Ridley Inc EBIT
Ridley Inc EBIT A$ million 1Q 2Q Feed USA (0.3) 6.9 Feed Canada (1.5) 1.5 Ridley Nutrition Solutions 1.3 4.7 Other (1.2) (0.7) (1.7) 12.4
Slide 13: Feed - USA
Feed - USA A$ million Sales 203 -1% EBIT 7 -31% Features - Volatile ingredient markets - Margins - Cost reduction programme - Improved 2nd quarter
Slide 14: Feed – USA EBIT
Feed – USA EBIT A$ million 9.7 (3.6) Margin / Mix (1.5) Volatile ingredient (0.6) markets Restructuring 2.0 6.6 Receivables 0.6 Other 2004 2005
Slide 15: Feed - Canada
Feed - Canada A$ million Sales 84 -10% EBIT - operating 1.5 - restructuring (1.5) Features: - Lower volumes / border closure - Volatile ingredient markets - Cost reduction programme - Plant closure - Receivables
Slide 16: Feed – Canada EBIT
Feed – Canada EBIT A$ million 4.5 (0.6) Receivables (1.5) 0.0 Restructuring (0.7) Volatile (3.0) 1.3 ingredient Volume Other markets 2004 2005
Slide 17: Ridley Nutrition Solutions
Ridley Nutrition Solutions • Newly formed business segment • High margin feed supplements • Nine facilities • Low moisture blocks • Sweetlix • Equine • Specialty products / companion animals
Slide 18: Ridley Nutrition Solutions
Ridley Nutrition Solutions Funds employed (US$) 52 million Tonnes – annualised 195,000 ROFE – annualised 20% plus Employees 169
Slide 19: Ridley Nutrition Solutions
Ridley Nutrition Solutions A$ million Sales 52 +52% EBIT 6 +7% Features - Sweetlix acquisition - Transport disruption / plant shutdown - Mild winter - Ongoing border closure
Slide 20: Ridley Nutrition Solutions EBIT
Ridley Nutrition Solutions EBIT A$ million 5.5 6.0 (0.2) Currency (0.7) RBO (0.4) 1.6 volume costs Sweetlix 2004 2005
Slide 21: Ridley Inc - Margins
Ridley Inc - Margins 1Q 2Q % USFO (US$/ton) 51 63 +23 CFO (C$/tonne) 59 72 +21
Slide 22: Ridley Inc – Cost Reduction Programme
Ridley Inc – Cost Reduction Programme US$ million F05 Annualised Restructuring costs (0.7) Manpower (81 reduction) 3.2 4.8 Overheads 3.5 3.5 Total benefit 6.0 8.3
Slide 23: Ridley Corporation Financial Performance
RIDLEY CORPORATION 2005 FINANCIAL PERFORMANCE
Slide 24: EBITDA
EBITDA A$ Million Dec 04 Dec 03 Feed Australia 11 8 Cheetham Salt 11 12 Feed USA 10 14 Feed Canada 2 6 RNS 8 7 Other (6) (6) TOTAL 36 41
Slide 25: Cashflow
Cashflow A$ Million Dec 04 Dec 03 EBITDA 36 41 Capex (10) (10) Acquisitions (25) (7) Borrowing costs (5) (5) Tax (3) (1) Dividends (7) (8) Working capital & other 3 0 Net (11) 10
Slide 26: Net Debt
Net Debt A$ Million Net Debt - June 2004 123 Acquisition funding 25 Repayments (14) Currency translation (5) Net Debt - December 2004 129
Slide 27: Net Debt
Net Debt A$ million Dec 04 Dec 03 Dec 02 Australia 74 73 85 Ridley Inc 55 61 96 Total 129 134 181
Slide 28: Key Ratios
Key Ratios Dec 04 Dec 03 Net Debt/EBITDA* 1.8 1.7 EBITDA/Net Interest 7.9 8.2 EBIT/Net Interest 4.8 5.1 ROSF 3.9% 4.0% ROFE 4.5% 5.3% EPS (fully diluted) 4.6 4.7 * Annualised EBITDA
Slide 29: Working Capital
Working Capital A$ Million Dec 04 Jun 04 Dec 03 Receivables 107 103 106 Inventory 109 106 106 Accounts Payable (118) (111) (114) Other & Provisions (2) (4) (1) Total 96 94 97 Days Sales Outstanding 28 29 28
Slide 30: Working Capital
Working Capital Dec 04 Dec 03 Feed Australia (A$ million) 25 25 Cheetham Salt (A$ million) 31 28 Feed USA (US$ million) 13 14 Feed Canada (C$ million) 9 14 RNS (US$ million) 6 3
Slide 31: Currency Impact
Currency Impact A$ Million F2005 As reported At F2004 rates Variance Ridley Inc - EBIT 11 12 -1 - Net to Ridley Corp 4 4 Exchange Rate .7294 .6867