Slide 1: Ridley Corporation
RIDLEY CORPORATION
Slide 2: Continuing strong cash flow
Continuing strong cash flow Significant Item - Tax Consolidation Canadian legal claims
Slide 3: Sales, EBITDA, EBIT, Net Profit, Dividends
Sales EBITDA EBIT Net Operating Profit Net Profit (after significant items) Dividends * Interim 3.25cps unfranked *Final 3.25cps 50% franked
Slide 4: A$ million
A$ million 1) SS ~ TWHUENE Feed Discontinued Currency Australia Operations
Slide 5: EBIT by division
Pitt AS million EBIT Feed Australia EBIT Feed USA EBIT Feed Canada epBir EBIT EBIT EBIT EBIT —_ Borrowing Significant RNS Salt Discontinued Legaland Corporate costs, Ttems Operations restructuring Costs —_tax,outside costs equity 2005
Slide 6: Feed Australia
eat AS million Sales EBIT Features - Improvement in poultry, beef and supplements vo - Flat grain markets - Costs contained - Industry consolidation - JV’s / acquisitions
Slide 7: a a Te
a a Te . Sheep Bd = S E 2 =a = a Poultry
Slide 8: Overheads
Ree. queen ua Overheads A$ million 2 A| So he a =
Slide 9: Cheetham Salt
AS millio Sales 72 EBIT 18 Features - Volumes up / product mix - Dry Creek - Energy / transport / packaging - Export — freight availability
Slide 10: Cheetham Salt EBIT movement
Gwar en | Dry Creek Japan/Other AS million Freight, Packaging 2 Z =I oe & = a a Manufactured Product
Slide 11: Feed USA
A$m Sales 380 -7% EBIT 14-18% Features - Trade environment - Volume - Margins - Volatile ingredient market - Cost reductions
Slide 12: Overheads
Overheads Claims Settlement Receivables Restructuring USS million 22 a: So Ca Margins
Slide 13: Sweetlix / Feed USA
A$m USS$m Sales 99 +58% 74 +66% EBIT 10 +15% Features - Sweetlix acquisition July 2004 - Hurricanes / transport disruption / plant shutdo - Ongoing border closure ~ US border closed 26 m - Molasses - ethanol / margins
Slide 14: Sweetlix
fo Sweetlix Overheads USS million “a =I = po = a 2
Slide 15: Feed Canada
A$m Sales 159 -11% EBIT Operating 5 -33% 4 Plant Closure (1) (1) Features - Lower volumes - Volatile ingredient markets - Cost reduction programme - Plant closure
Slide 16: C$ million
C$ million Volume Margins Volatile Restructuring Overheads Plant Closure Ingredient markets SS -
Slide 17: C$ million
C$ million P2003 |
Slide 18: Ridley Corporation
RIDLEY CORPORATION
Slide 19: Cash flow
A$ Million EBITDA Capex Borrowing costs Tax Dividends Working capital & other Cash generated Acquisitions Net a F2005 2004 val (20) 0)
Slide 20: Feed Australia, Cheetham Salt, Feed USA, Feed Canada
Feed Australia Cheetham Salt Feed USA Feed Canada RNS Discontinued Operations Other TOTAL
Slide 21: Net debt movement
A$ Millio Net Debt - June 2004 Acquisition funding Repayments Currency translation Net Debt — June 2005
Slide 22: Gearing ratios
F2005 F200 164 123 382 369 0.43:1 0.33:1
Slide 23: Australia and Ridley Inc
F2005 F2004 Australia 113 69 Ridley Inc 51 54 164 123
Slide 24: Working capital
A$ Million F2005 Receivables 107 Inventory 110 Accounts Payable (131) Other & Provisions (6) Total 80 Days Sales Outstanding 29
Slide 25: Financial ratios
F2005 © Net Debt/EBITDA 2.2 EBITDA/Net Interest 7A EBIT/Net Interest 5.0 ROSF* 7.8% ROFE* 9.0% EPS (fully diluted)* 9.3 * Before significant items
Slide 26: Currency impact
As reported At F2004 rates Variance Ridley Inc - EBIT 26 - Net to Ridley Corp 10 Exchange Rate 7495 . 6964
Slide 27: Slide 27
Slide 28: Canadian BSE legal claims
In 2003 a BSE infected cow was identified in Alberta Legal claims made against the Cana Federal Government, Ridley Inc and Ridley Corporation Alleged Ridley Inc supplied feed contamin: BSE Alleged Ridley Corporation responsible for t its subsidiary At all times Ridley complied with relevant regul in
Slide 29: Defending the claims
Both Ridley Inc and Ridley Corporation are strenuously defending the claims ~ The claims are ‘novel’ and not readily re under Canadian law Canadian Federal Government, Ridley Inc an Ridley Corporation have sought to have the Ontario action struck out before trial — due November 2005
Slide 30: Legal costs and insurance
Legal costs - $1.1m F2005; est - $4,2m in F2006 - Impact net earnings est - $2.3m in F2006 Potential exposure presently remains unk Insurance — discussions continuing with insur Management
Slide 31: Slide 31
Slide 32: Cheetham Salt Limited
Slide 33: Dry Creek Salt Field
-—+——_+ @ Amcor Glass Plant Seale: 10kins of (35kms from Penrice) “DRY CREEK SALT FIELD , PENRICE PLANT @ ADELAIDE CBD
Slide 34: Dry Creek Salt Field overview
Location: Dry Creek Salt Field is lotated on 9,000 Ha of land on the outskirts of Adelaide. History: Established in the 1930’s, the field hasva long history of salt production. Capacity: The salt field is the largest solar salt op Eastern Australia producing an average of 650,000 saleable salt p.a.
Slide 35: Acquisition benefits
Cash Generative Acquisition: orecast to earn $7.0m EBITDA in F2006 with minimal capex requi ements. Security of Supply: The ‘Take or Pay’ Penrice underpins approximately 80% of yearl Contract Details: Contract signed with Penrice fo ops with option to renew. Salt supply price inc Synergies: Potentia
Slide 36: Purchase price
Purchase Price Stamp Duty Legal & Incidental Costs Total Acquisition Cost Goodwill Component EBITDA F2006 Depreciation
Slide 37: Penrice business viability
>» Viability of the Penrice business is nderwritten by the following key factors: « Only domestic manufacturer of Soda A Bicarbonate — vital ingredients in products’s glass, detergents and stock feed. # Strategically located near to both suppliers of re materials and major customers. "= Domestic mar
Slide 38: Ridley
RIDLEY