Slide 1: Slide 1
Slide 2: Main Features
Main Features Operating EBIT up 15% before legal costs Strong recovery in Canada Continuing improvement in Australian Feed Dry Creek acquisition performing well Ongoing Canadian legal costs Borrowing costs & tax expense higher Full year dividend increased to 7.0 cps
Slide 3: Results
Results ASm F2006 Sales Revenue 1,259 EBITDA 82 EBIT before legal costs 63 EBIT 60 Net Profit 28 Dividends * 7.0 cps * Interim & Final 3.5 cps 50% franked ra Note - all prior year numbers restated for AIFRS % to LY 9% 12% 15% 12% (31%) 8%
Slide 4: EBIT bridge 2005 to 2006
2005 ~—=iLegal Net * Before Significant items: ee Z ie Australia Cheetham = =JS Feeds Salt Feeds Canada Feeds RNS Corp Costs Net interest 1ax& Mi 2006
Slide 5: EBIT by segment and currency
a oe ve y 2005 Australia Cheetham US Currency Feeds Salt Feeds
Slide 6: Australia Feeds
RIDLEY AcsiPobvcts Australia Feeds Agm Sales EBIT Tonnes (000's) Features F2006 % to LY 492 11% 16 2% 1,695 9% Operating earnings up 9% increase in dairy & poultry volumes Bolt on acquisitions Specific focus on Supplements business increasing direct farm purchasing
Slide 7: Australia Feeds - Volume
Rte 6~Australia Feeds - Volume Acquisitions Dany
Slide 8: Australia Feeds - EBIT
PGkrccc Australia Feeds - EBIT Wig 4a 2005 Acquisitions Volume Margins Labour & ‘Mig Froont & selling & F2005 2006 Energy Obeads Other Admin WV
Slide 9: Cheetham Salt
e2 Cheetham Salt ASm Sales EBIT Tonnes (000's) Features F2006 % to LY 87 21% 23 22% 1,201 87% Dry Creek performing well Lower volumes to Qld ag sector Energy, labour, transport & packaging cost increases Cost recovery / margins improving
Slide 10: Cheetham Salt - EBIT
62 Cheetham Salt - EBIT Dry Creak Qid Ag Other Operating dapan & Sectors Costs indonesia
Slide 11: US Feeds
US Feeds RIDLEY. A$m US$m Sales 395 4% 293 3% EBIT 17 13% 13 12% Tons (000's) 897 (1%) Features ® Customer environment stable improved margins Cost reduction program benefits
Slide 12: US Feeds - EBIT
US Feeds - EBIT 2005 Volume Margins Production — Freight Selling FOSPlant = £08 Claim 2006 Cosis B Admin Sale Settlements
Slide 13: Canada Feeds
Canada Feeds RIDLEY Ag$m Cc$m Sales 176 10% 150 1% EBIT 10 115% 9 103% Tonnes (000's) 460 5% Features * Improved margins and volumes * Cost reduction program benefits * Border re-opened
Slide 14: Canada Feeds - EBIT
Canada Feeds - EBIT Volume Margns Production — Freight Selling FOiBad F05 Plant 2008 Costs & Admin Debts Closure
Slide 15: Ridley Nutrition Solutions
(mt ley Nutrition Solutions RIDEEY A$m Uus$m Sales 110 11% 82 10% EBIT 10 (13%) 7 (14%) Tons (000's) 163 9% Features * Molasses availability / prices * Hurricanes ~ transport disruption (1° half) * Energy costs * New Equine mill — start up phase
Slide 16: RNS - EBIT
RNS - EBIT RIDLEY Nuttition Solutions Block New Equine Operations Mill
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Slide 18: AIFRS Impact 2005
AIFRS Impact 2005 A$m June 2005 AGAAP 34.6 Goodwill - Including Associates 4.6 Share based payments (0.6) Tax 2.0 Minority Interest (0.6) June 2005 AIFRS 40.0
Slide 19: AIFRS Impact 2005
AIFRS Impact 2005 A$m AGAAP Impact AIFRS Australia Feeds 14.6 1.0 15.6 Cheetham Salt 18.1 0.9 19.0 US Feeds 14.4 0.8 15.2 Canada Feeds 3.9 0.8 4.7 RNS 9.7 1.3 11.0 Unallocated (11.4) (0.7) (12.1) Total EBIT 49.3 4.0 53.4
Slide 20: Cashflow
Cashflow A$m EBITDA Capex Borrowing costs Tax Dividends Working capital & other Cash generated Acquisitions Net F2006 F2005 82 74 (26) (23) (12) (9) (7) (14) (10) (12) (23) 23 3 38 (10) (79) (7) (41)
Slide 21: Working Capital
Working Capital A$m F2006 F2005 F2004 Trade Receivables 105 92 91 Inventory 128 110 106 Payables (136) (132) (111) Other & Provisions 1 5 6 Total 99 76 91 Days Sales outstanding 29 29 29
Slide 22: EBITDA
EBITDA A$m Australia Feeds Salt Operations US Feeds Canada Feeds RNS Corporate & Other Total F2006 F2005 22 22 27 22 23 21 13 7 12 13 (15) (11) 82 74
Slide 23: Corporate & Unallocated Costs
Corporate & Unallocated Costs A$m F2006 F2005 Corporate Costs 12 10 Canadian Legal Costs 3 1 Project Costs 1 1 Total 16 12
Slide 24: Debt Movement
Debt Movement A$m Net Debt - June 2005 Acquisition funding Repayments Net Debt - June 2006 164 10 (3) 171
Slide 25: Gearing
Gearing A$m Net Debt Equity Ratio F2006 F2005 F 2004 171 164 3 394 351 396 43.5% 46.7% 37.8%
Slide 26: Net Debt
Net Debt A$m Australia Ridley Inc. Total F2006 F2005 F2004 144 113 69 27 51 54 171 164 123
Slide 27: Key Ratios
Key Ratios AS Net Debt / EBITDA EBITDA / Net Interest EBIT / Net Interest ROSF * ROFE * EPS * (fully diluted) ra * Before Significant tems F2006 2.4 6.4 4.6 8.6% 10.1% 10.0 F2005 2.2 8.2 5.9 10.5% 9.8% 11.3 F2004 1.7 7.2 5.3 9.9% 9.5% 8.8
Slide 28: Currency Impact
Currency Impact Jun ‘06 Avg Exchange Rate A$ - US$ 0.7434 A$ - C$ 0.8631 Jun ‘05 0.7495 0.9158
Slide 29: Banking Facility
Banking Facility ¢ Facility restructured July 2006 - Term extended to July 2009 « Reduced interest margins & improved covenants * Increased to $335m from $270m
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Slide 31: Legal Claims - Status
Legal Claims - Status Ciaims against Ridley Corporation at an end in all provinces Claims against Canadian Govt. and 69% subsidiary Ridley Inc. continue, but still at an early stage: e Merits of claims not yet considered in any province e Claims not yet certified as class actions and defences not ye
Slide 32: Legal Claims - Status
Legal Claims - Status Later this year likely hearings are: e In Ontario, appeals by all parties including Canadian Govt. and Ridley Inc. against the decision not to strike out the claims; and e In Quebec, application for certification of the claims as a class action
Slide 33: Legal Claims - Management
Legal Claims - Management « Minimal impact on the day to day business: « Ridley Corporation no longer a party to any action in Canada « Dedicated staff to manage the litigation & costs « Controlled legal costs e Costs within budget this year to 30 June 2006 « Disciplined approach will continue e« St