Ridley Corporation Limited · ASX:RIC
Ridley — UBS Emerging Companies Conference (May 2015)
15 slides from Ridley's conference presentation, May 26, 2015
Slide 1: UBS Emerging Companies Conference
UBS Emerging Companies Conference For personal use only Food and Agribusiness Australia’s leading producer of premium quality, high performance animal nutrition solutions 26 May 2015
Slide 2: An update on Ridley in 2015
An update on Ridley in 2015 • Cheetham Salt business was divested in 2013 For personal use only • Proceeds used to pay down debt, and also acquire a 2 rendering businessnd (Ridley now Australia’s #1 service renderer) • Salt sale excluded some large-scale land assets which are now being actively dive
Slide 3: Strong regional food growth opportunity
Strong regional food growth opportunity For personal use only In 2012-13, Australian farms produced:- • Dairy & beef • $13.2 bn of livestock (for meat) • Animal meals and fats • $6.9 bn of livestock products (wool, dairy etc) • High-performance raw • $2.3 bn of fish and other marine produce material
Slide 4: Australian agribusiness well resourced to exploit food demand growth opportunity
Australian agribusiness well resourced to exploit food demand growth opportunity For personal use only DEMAND LAND World population >9 bn by 2050, income & food demand growing faster Australia enjoys huge advantage in arable land vs peers 350 2.00 300 Index 2007 = 100 Hectares of arable land per
Slide 5: Australian agribusiness – an exciting proposition relative to other industries
Australian agribusiness – an exciting proposition relative to other industries Deloitte Access Economics has Australian agribusiness as one of its ‘Fantastic 5’ For personal use only growth industries Australian agribusiness enjoys a combination of: - strong natural advantages relative to overseas c
Slide 6: In which parts of the food chain can Ridley provide and extract value?
In which parts of the food chain can Ridley provide and extract value? For personal use only Grains & Vitamins & Vegetable Meat • Innovation in diets Oilseeds Minerals Proteins Proteins and raw materials (e.g. Novacq) Animal Nutrition Solutions Rendering • 17 feedmills • 2 rendering plants Dairy • 1
Slide 7: Where are Ridley's operations in Australia?
Where are Ridley’s operations in Australia? For personal use only 7
Slide 8: Ridley has two areas of key focus to improve its returns
Ridley has two areas of key focus to improve its returns For personal use only 1 Focus on those sectors with high growth potential and higher-value returns: aquaculture dairy poultry rendering 2 Focus on Ridley’s Customer Value Proposition to: deliver a compelling value proposition to the c
Slide 9: Aquaculture approach to improved returns
Aquaculture approach to improved returns For personal use only Global Compound Aquafeed Forecast to 2020 Some Facts & Figures Challenge: • Asia is home to ~90% of reduce this global aquaculture gap by production improving • Farmed fish expected to feed exceed wild catch by 2018 conversion Source: FA
Slide 10: Dairy approach to improved returns
Dairy approach to improved returns For personal use only Significant regional demand for imported milk ... and a latent milk production opportunity in into China.... Australia in China represents imported volume (bn litres) Source: Horizon 2020 Source: Horizon 2020 Constraint: Approach: - land, wate
Slide 11: Poultry approach to improved returns
Poultry approach to improved returns For personal use only • Chart shows consumption Constraint: per capita in Australia of BROILER BROILER(meat) not subject to same various meat types chickens (meat) chicken constraints as other • Chicken meat showing key Ridley sectors consistent 3% p.a. compound
Slide 12: Rendering approach to improved returns
Rendering approach to improved returns DEMAND SUPPLY For personal use only Demand for rendered Constraint: Constraint: Supply of raw material is a products as a protein source - periodic overseas - freshness of raw material function of livestock harvest is a function of export rates, influenced by f
Slide 13: Ridley well positioned within agribusiness
Ridley well positioned within agribusiness For personal use only Location & Ridley Sector Supply chain Nutrition & Local or Species Position Growth -1.5mt on 2 technical Global?* in Sector Potential way logistics excellence - reliability of - Industry-leading Salmon – Local supply knowledge of Aqua
Slide 14: Recent financial performance trending the right way
Recent financial performance trending the right way For personal use only Consolidated excluding Property & Salt segments FY10 FY11 FY12 FY13 FY14 in $m RAP EBIT 29.0 24.9 27.2 28.1 40.1 Corp EBIT (6.8) (5.5) (6.7) (5.7) (8.6) RAP + Corp EBIT (excl. Cheetham Salt & Property) 22.2 19.4 20.5 22.4 31.5
Slide 15: Ridley ROI outcomes and targets
Ridley ROI outcomes and targets For personal use only Positive trend in recent years through disciplined approach to allocation of capital & project hurdle rates Targeting long term asset return improvement through efficiencies, technologies, innovation & rolling program of mill modernisation ROFE c
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