Slide 1: Company announcement: GrainCorp FY 08/09 Investor Presentation attached
For personal use only Company announcement GrainCorp Limited ABN 60 057 186 035 Date: Wednesday, 25 November 2009 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com PUBLIC ANNOUNCEMENT GRAINCORP FY 08/09 INVESTOR PRESENTATION ATTACHED Betty Ivanoff General Counse
Slide 2: GrainCorp 2009 Full Year Results Briefing
For personal use only 25 November 2009 GRAINCORP 2009 FULL YEAR RESULTS BRIEFING Grain Storage | Grain Logistics | Grain Trading | GrainCorp Malt | Allied Mills 1
Slide 3: Financial Results - Detail
For personal use only FINANCIAL RESULTS - DETAIL Grain Storage | Grain Logistics | Grain Trading | GrainCorp Malt | Allied Mills 2
Slide 4: FY 2008/09 Financial Results - Overview
FY 2008/09 Financial Results - Overview For personal use only EBITDA Up by $114 M Results FY09 FY08 $ million $ million Free Cash Up by $227 M Revenue 1,730 1,534 Flow EBITDA 165 51 NPAT Up to $63 M Net profit / (loss) 63 (20) after Tax Free Cash flow 1 181 (46) Highlights Improved financial perform
Slide 5: Business Drivers at September 2009
Business Drivers at 30 September 2009 For personal use only Receivals 10.7 mmt FY09 FY08 (incl. ports and ex-other BHC’s) mmt mmt Grain exports Grain carry-in 2.2 1.2 5.2 mmt handled (incl. containers) Country network 9.6 5.8 grain receivals Bulk wheat 1.3 mmt Grain received at port 1.1 0.7 exports
Slide 6: Key Financial Indicators at September 2009
Key Financial Indicators at 30 September 2009 For personal use only EBITDA - $ M NPAT - $ M 80 180 150 60 120 40 63.2 90 20 31.7 165.2 13.5 60 120.9 0 92.2 -19.8 -19.9 30 51.3 -20 31.9 0 -40 FY 05 FY 06 FY 07 FY 08 FY 09 FY 05 FY 06 FY 07 FY 08 FY 09 OPERATING CASH FLOW - $ M CAPEX- $ M 250 50 200 4
Slide 7: Earnings Bridge – NPAT FY08 to FY09
Earnings Bridge – NPAT FY08 to FY09 For personal use only $M 100 11 (27) 16 (39) 67 11 80 (1) 63 60 40 44 20 0 (20) (20) Trading Allied Mills Equity FY 07/08 Logistics Income Tax FY 08/09 Ports Interest Storage and Merchandise Profit Corporate Office and Other Grain Storage | Grain Logistics | Grain
Slide 8: Notable Financial Impacts
Notable Financial Impacts For personal use only Major one-off benefits in FY 08/09 • Corporate Office relocation of $4.5 M • Higher exports led to rail earnings above budget estimates • Additional port storage and service fees related to managing multiple grades from wet Sth. Qld. and Nth. NSW wheat
Slide 9: Lower Debt Profile at September 2009
Lower Debt Profile at 30 September 2009 For personal use only 700 600 Debt structure • Non current - $105 M 600 500 • Non Current (core long term) debt 500 matures in 2011 228 223 400 • Current - $89 M 400 • Current (Working Capital and Inventory 229 224 300 300 Funding) varies with grain volumes /
Slide 10: Significantly Stronger Balance Sheet at Sept 2009
Significantly Stronger Balance Sheet at 30 Sept 2009 For personal use only • Current borrowings largely FY09 FY08 secured against inventory $ million $ million Cash 161 9 • Inventory and Trade Inventories/Trade Debtors 255 381 Debtors lower due to Other current assets 54 70 lower grain prices Non cu
Slide 11: FY 2008/09 Dividend
FY 2008/09 Dividend For personal use only • The GrainCorp Board has declared a dividend for the financial year ended 30th September 2009 • The dividend is $0.0727 per share • The ‘ex’ date for eligible shareholders is 30th November 2009 • The record date will be 4th December 2009 • Proposed payment
Slide 12: Business Unit Performance
For personal use only BUSINESS UNIT PERFORMANCE Grain Storage | Grain Logistics | Grain Trading | GrainCorp Malt | Allied Mills 11
Slide 13: GrainCorp Supply Chain Business Model
GrainCorp Supply Chain Business Model For personal use only GrainCorp generates revenue from the entire grain supply chain, from grain storage, grain transport to port, grain trading, and ship loading Grain growers ‘Take or pay’ trains Contracted road transport Road Export Country storage Port eleva
Slide 14: Performance by Business Unit
Performance by Business Unit For personal use only Business Unit FY09 FY08 FY09 FY08 $ million Revenue1 Revenue1 EBITDA EBITDA Storage & Logistics 281 120 66 22 Ports 131 52 78 11 Trading 1,243 1,270 39 28 Merchandise 73 89 (23) 4 Allied Mills 2 - - 10 11 Corporate, Head Office and - - (5) (24) Othe
Slide 15: Storage and Logistics
Storage and Logistics For personal use only FY09 FY08 Country Network Grain Receivals – mmt 12 Carry in 2.2 1.2 10 Revenue 281 120 8 EBITDA 66 22 6 10.8 9.3 9.6 4 EBIT 44 (1) 5.8 2 2.3 CAPEX 17 8 0 FY05 FY06 FY07 FY08 FY09 Highlights Business Drivers 9.6 mmt full year country network grain • Increas
Slide 16: Ports
Ports For personal use only FY09 FY08 Grain Exports Handled - mmt 6.0 Revenue 131 52 5.0 EBITDA 78 11 4.0 3.0 EBIT 65 (2) 4.7 5.3 5.2 2.0 CAPEX 7 5 1.0 1.0 1.0 0.0 FY05 FY06 FY07 FY08 FY09 Highlights 2.5 Non Grain Exports Handled - mmt • 1.1 mmt grain received from 2.0 ex-farm and other BHC’s 1.5 •
Slide 17: Trading
Trading For personal use only FY09 FY08 30 Profit Before Tax - $ M Revenue 1,243 1,270 25 EBITDA 39 28 20 PBT 25 4 15 25 10 20 17 Highlights 14 5 • > 1.5 mmt total grain exports 4 • Total tonnes traded (all grains) similar 0 to last year FY05 FY06 FY07 FY08 FY09 • Earnings improved from ability to e
Slide 18: Merchandise
Merchandise For personal use only FY09 FY08 Revenue 73 89 EBITDA (23) 4 Business Drivers • Operating loss of $(23) M1 • Record decline in price for fertiliser and chemicals in late 2008 • $11.3 M inventory write down to market value of fertiliser and chemicals Strategic Review of Business • Strategi
Slide 19: Allied Mills
Allied Mills For personal use only FY09 FY08 60 EBITDA - $ M Revenue 535 527 50 40 EBITDA 43 42 30 Equity profit 10 11 51.8 47.5 20 42.8 Net Asset 29.6 211 195 10 25.8 value 0 CAPEX 11 98 FY05 FY06 FY07 FY08 FY09 Note FY07 EBITDA includes one off sale of $3.9 million for asset sales Business Drivers
Slide 20: Transformation of GrainCorp
For personal use only TRANSFORMATION OF GRAINCORP Grain Storage | Grain Logistics | Grain Trading | GrainCorp Malt | Allied Mills 19
Slide 21: Company Transformation
Company Transformation For personal use only Adoption of the 2006 Strategic Plan and 2008 cost reduction initiatives led to >$20 million cost savings Increased NPAT / Tonnes received, stored and handled in FY 2008/09 Additional earnings from provision of rail services Provision of more servi
Slide 22: Liquidity and Market Capitalisation
Liquidity and Market Capitalisation For personal use only 1,800 Market Capitalisation - Nov '08 to Nov '09 $12 GrainCorp ASX Trading History 12% AUD million 1,616 Nov '08 to Nov '0 1,600 18-Nov-08 18-Nov-09 $10 Daily volume traded (% of shares outstanding) Share price 10% 1,400 1,293 1,278 1,200 $8
Slide 23: Acquisition of United Malt
For personal use only ACQUISITION OF UNITED MALT Grain Storage | Grain Logistics | Grain Trading | GrainCorp Malt | Allied Mills 22
Slide 24: Forming an International Agribusiness
Forming an International Agribusiness For personal use only The Acquisition transforms GrainCorp into an Australian based international agribusiness, with operations in Australia, the United States, Canada and the United Kingdom Australia Largest grain storage network on the east United Kingdom co
Slide 25: A Strategic Fit
A Strategic Fit For personal use only Storage and Logistics Grain Trading Grain Processing Existing GrainCorp Business • Grain infrastructure assets • Grain trader domestic and • Milling wheat for flour export bulk wheat, barley and other grains GrainCorp Malt • Grain infrastructure in • Barley proc
Slide 26: GrainCorp Malt Integration
GrainCorp Malt Integration For personal use only Brand • Canada Malting Company, Great Western Malting, Barrett Burston Malting and Bairds Malt, and related business names will be retained, in recognition of the fact they are all well known and protection highly respected brands • To ensure we prote
Slide 27: GrainCorp Malt Management Structure
GrainCorp Malt Management Structure For personal use only • UMH renamed GrainCorp Malt • Will operate as a new Business Unit of GrainCorp, led by Jim Anderson • GrainCorp Malt businesses will be led by the present malt company Presidents GrainCorp Board Managing Director Mark Irwin GrainCorp GrainCo
Slide 28: General Management Structure
General Management Structure For personal use only • GrainCorp general management restructured to ensure effective strategic and operational leadership • The key change is bringing in Ports and Account Management into Storage and Logistics to create a full Australian supply chain business unit New b
Slide 29: Outlook
For personal use only OUTLOOK Grain Storage | Grain Logistics | Grain Trading | GrainCorp Malt | Allied Mills 28
Slide 30: Outlook FY 2009/10
Outlook FY 2009/10 For personal use only Storage and Logistics • YTD grain receivals 4.5 mmt • Country network grain receivals forecast – 8 to 9 mmt • Grain export elevation forecast – 3 to 4 mmt • Increased sale of rail service tonnage = lower ‘take or pay’ risk and returns Malt • Nov. 14th ’09 to
Slide 31: Disclaimer
Disclaimer For personal use only • This presentation includes both information that is historical in character and information that consists of forward looking statements. Forward looking statements are not based on historical facts, but are based on current expectations of future results or events.