Slide 1: Investor Presentation – Half Year to 31 December 2015
RIDLEY CORPORATION LIMITED For personal use only INVESTOR PRESENTATION – HALF YEAR TO 31 DECEMBER 2015 1
Slide 2: Half year highlights
RIDLEY For personal use only Third successive record core business result of $27.7m. Generating business case returns on Terang and Cherry Lane blending and storage facility investments. New feedmill approvals secured and construction commenced at NE Geelong. Site for domestic production of
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated result - 1H 1H AgriProducts half year result of For personal use only FY15 FY14 in AUD$million ($m) FY16 FY15 $27.7m, up $2.1m on same period prior year (8%). EBIT - AgriProducts 27.7 25.6 50.4 40.1 Dry Creek Property costs - see Property costs - Slide 5; all co
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated result Net finance and tax expense (exc Dry Creek) – For personal use only 1H 1H FY15 FY14 - in $m FY16 FY15 each consistent with prior year. $13.1m post-tax operating result before Operating result 20.4 18.5 35.2 28.9 non-recurring items, up $2.0m (18%) on same
Slide 5: Financial Highlights – Dry Creek
FINANCIAL HIGHLIGHTS – DRY CREEK Zero Dry Creek costs in FY17 and thereafter! For personal use only Consolidated result FY17 2H FY16 1H FY16 1H FY15 FY15 FY14 - in AUD$m forecast forecast Property costs - Dry Creek - < $1.0 (3.5) (1.6) (3.6) (2.9) Dry Creek incremental costs for 1H FY16 reflect:
Slide 6: AgriProducts
AGRIPRODUCTS For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2015 HALF YEAR 6
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS EBIT result for agribusiness of $27.7m - up $2.1m (8%) on same period last For personal use only year with no normalising adjustments. Poultry - reliable year on year performance, with slight increases in volume from return to traditional broiler lifecycles and small margin
Slide 8: Strategic Domestic Site Secured (1)
STRATEGIC DOMESTIC SITE SECURED (1) 7.5Ha of prawn ponds in Yamba, NSW secured# for NovacqTM production For personal use only Location - the site is ideally located to produce NovacqTM and is adjacent to the Tru-Blu Prawn farm. Strategy - facilitates the scale up to production of commercial quan
Slide 9: Strategic Domestic Site Secured (2)
For personal use only STRATEGIC DOMESTIC SITE SECURED (2) 315km to Aquafeed site at Narangba Byron Bay Ballina Grafton Yamba township Coffs Harbour 9
Slide 10: Strategic Offshore Site Secured (1)
STRATEGIC OFFSHORE SITE SECURED (1) 49% interest in Thailand feedmill acquired for AUD$1.1 million# For personal use only Location - the feedmill site is ideally located in the prawn growing region of Chanthaburi, Thailand, adjacent to the Sureerath Prawn Farm (SPF) owned and operated by the co-ow
Slide 11: Strategic Offshore Site Secured (2)
STRATEGIC OFFSHORE SITE SECURED (2) Biofuel boiler house For personal use only On-site staff accommodation Neighbouring prawn farm ponds Facility perimeter security Administration building & training facility 11 11
Slide 12: Strategic Offshore Site Secured (3)
For personal use only STRATEGIC OFFSHORE SITE SECURED (3) The feedmill at Chanthaburi Adjacent Sureerath Prawn Farm Existing 30kt capacity with infrastructure in place to expand to 55kt. Full extrusion plant. Modern design. Less than five years old. Immaculate condition. Located in prime
Slide 13: Global Prawn (Shrimp) Production
GLOBAL PRAWN (SHRIMP) PRODUCTION The opportunity in Asia is substantial and growing fast For personal use only Global shrimp production growth (kt) Insights 4,190 4,338 4,455 GLOBAL Asia accounts for 85% of global shrimp production 3,779 CAGR 577 605 663 90-13 • China the largest producer with 38% o
Slide 14: NE Geelong Feedmill
NE GEELONG FEEDMILL Construction has commenced For personal use only at the 5.3Ha NE Geelong site Mill tower for a new poultry and pig Existing silo storage feedmill located in a key growth Outloading and area with proximity to: Additives weighbridge (i) major grain growing region, (ii) Port of Geel
Slide 15: Property
PROPERTY For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2015 HALF YEAR 15
Slide 16: Property – Dry Creek (1)
PROPERTY – DRY CREEK (1) Site sold - sale of Ridley Dry Creek Pty Ltd announced on 6 November 2015, scheduled For personal use only for Completion on 31 March 2016. Sale details - 100% of the share capital sold for $35m, receivable $7m on contract Execution, $12m at Completion, & the $16m balanc
Slide 17: Dry Creek (2)
DRY CREEK (2) FY16 the last year of legacy costs ($3.5m in FY15; $2.8m in FY14 before land sales). For personal use only 30+kms of coastline to maintain under myriad of strict regulations - passes with sale. Redundancy and transaction costs brought to account in half year result; Q3 costs <$1m
Slide 18: Property - Other
PROPERTY - OTHER Major coastal site at Nelson Cove (near Geelong): For personal use only Refining of plans to develop c.500 hectares of low lying land subject to securing land tenure and rezoning approvals. Ridley in unique position to add value to former salt field site and bring substantial
Slide 19: Nelson Cove
NELSON COVE Solution for flood 2,000 construction 1,100+ acres of bird For personal use only prone neighbouring and permanent jobs sanctuary preserved residential areas for the region forever Ridley working with the Govt to assist in its strategic review. Ridley-owned Lara Rate of spend to “55Ha Gee
Slide 20: Consolidated Financials
CONSOLIDATED FINANCIALS For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2015 HALF YEAR 20
Slide 21: Balance Sheet - Assets
BALANCE SHEET - ASSETS Assets held for sale / Investment For personal use only Balance Sheet Dec June June June - in $m 2015 2015 2014 2013 property - comprises Dry Creek site; movement reflects Dandenong sale Assets held for sale 33.5 34.1 1.4 0.7 on 30 Nov 2015. Other Current 247.8 217.7 180.1 1
Slide 22: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Payables - $2.7m reduction For personal use only Balance Sheet Dec June June June - in $m 2015 2015 2014 2013 reflects lower drawdown of trade payables facility & timing of Current payables 156.0 158.7 129.4 152.6 payments within trading terms. Current provisions 13.1 1
Slide 23: Cash Flow
CASH FLOW Consolidated Cash flow - in $m 1H 1H FY15 FY14 Strong core business performance, For personal use only FY16 FY15 EBITDA of $27.9m, up $1.9m (7%). Consolidated EBITDA 27.9 26.0 51.0 41.0 $35.6m increase in working capital Movement in working capital (35.6) (12.9) 7.0 (5.5) temporarily i
Slide 24: Outlook
OUTLOOK For personal use only RIDLEY | INVESTOR PRESENTATION | 31 DEC 2015 HALF YEAR 24
Slide 25: Outlook - Operations
OUTLOOK - OPERATIONS For personal use only Poultry - keeping the internal focus on extracting operational efficiencies and servicing major customer growth expected for both broiler (meat) and layer (egg) based on consumer demand for healthy, value for money meat protein source. Pig - leveraging
Slide 26: Outlook - Strategy
OUTLOOK - STRATEGY NE Geelong feedmill - construct the new poultry and pig feedmill on the 5.3Ha site For personal use only acquired on the North East outskirts of Geelong, to commence operations in the first quarter of calendar 2017. New feedmills - continue discussions to secure additional vol
Slide 27: Outlook - Property
OUTLOOK - PROPERTY Dry Creek - minimise third quarter holding costs and transition to Completion on 31 For personal use only March 2016 to terminate all site based activity forever. Moolap - (i) continue dialogue with Victorian State Government to assist in its review of the Corio Bay peninsula,
Slide 28: Contact Details
CONTACT DETAILS For personal use only Tim Hart Managing Director and Chief Executive Officer Email: Tim.Hart@ridley.com.au Tel: +61 3 8624 6500 Fax: +61 3 8624 6414 Mobile: + 61 404 480 542 Ridley Corporation Limited ABN 33 006 708 765 Level 4, 565 Bourke Street Melbourne, VIC. 3000 Australia www.ri
Slide 29: Appendices
For personal use only APPENDICES
Slide 30: Ridley Strategy
RIDLEY STRATEGY “Our Mission is to improve the cost of For personal use only feed to yield ratio for our customers” Execution of our Mission will Our 6 Strategic Platforms enable us to enable us to achieve our deliver on our Mission Vision to be: Australia’s leading producer of premium quality, high
Slide 31: Ridley Business
RIDLEY BUSINESS “Our Mission is to improve the cost of feed to yield ratio for our customers” For personal use only Livestock Yield / Performance Nutrition – diet formulation, Quality - better feed Ridley’s Mission is to DIFOTIS, Innovation - conversion maximise sector profitability – delivery in fu
Slide 32: Outlook – Regional Growth
OUTLOOK – REGIONAL GROWTH For personal use only • Dairy In 2012-13, Australian farms produced:- • Beef • $13.2 bn of livestock (for meat) • Animal meals and fats • $6.9 bn of livestock products (wool, dairy etc) • High-performance raw materials • $2.3 bn of fish and other marine produce … all foreca
Slide 33: Outlook – Regional Investment
OUTLOOK – REGIONAL INVESTMENT Ridley well positioned for long term growth in the agribusiness For personal use only feed sector: strong balance sheet bank facility rolled over for a further five years long term history of cash conversion independent of harvest volumes paucity of Australi
Slide 34: Outlook – Ridley Investment
OUTLOOK – RIDLEY INVESTMENT For personal use only Ridley Sector Local or Species Position Growth Global? * in Sector Potential Salmon – Ridley well Aqua Strong (#2) High Local positioned in key Prawn – Global Attractive blend growth sectors of local and Dairy Strong (#1) High Global global markets P
Slide 35: Corporate Snapshot
CORPORATE SNAPSHOT Corporate focus: Australia’s leading supplier of premium quality, high performance For personal use only animal nutrition solutions ASX – as at 15 February 2016 RIC Share price $1.35 Shares on issue 307.8m Market cap. $415,5m 52 week range $0.98 - $1.68 Number of shareholders 7,43
Slide 36: Sector History
For personal use only SECTOR HISTORY Sector 1H FY15 FY14 FY13 FY12 FY11 FY10 FY16 (kt) (kt) (kt) (kt) (kt) (kt) Outlook (kt) Poultry 520 1,013 1,019 872 933 900 764 Aqua-feed 30 65 50 42 47 50 47 Packaged 39 83 90 90 85 84 90 Dairy 151 291 275 251 260 236 215 Pig 84 168 178 184 197 224 325 Supplemen
Slide 37: Brands and Customers
BRANDS AND CUSTOMERS Brand Overview Customers / market position For personal use only Barastoc offers a range of pellets, meals, concentrates and premixes specifically for- Bulk customers range from the small independents to mulated to meet the nutritional requirements of dairy cattle, pigs, poultry
Slide 38: Locations and Sectors
For personal use only LOCATIONS AND SECTORS Closed Closed 38
Slide 39: Rendering
RENDERING Key component of sustainable agriculture. For personal use only One third to one half of every animal produced in Australia for meat, milk, egg & fibre food products is not consumed by humans. Process by which low economic value matter from meat & food processing is transformed throu
Slide 40: Growth Opportunities
GROWTH OPPORTUNITIES For personal use only Capture market share with Long term, cost effective customer value proposition & surety of highest quality innovative protein sources to supply to provide solutions extend the superior product, for customer expansion safety & service offering and capital co
Slide 41: Lara and Moolap
LARA AND MOOLAP For personal use only AVALON AIRSTRIP Larasite 912 hectare Salt at Lara – part available Avalon Fields offset as migratory bird for environmental Airport sanctuary Melbourne Balance of Lara site earmarked for potential ~60km redevelopment for industrial and airport- related uses
Slide 42: Outlook - Risks
OUTLOOK - RISKS For personal use only Cyclical fluctuations - diversified portfolio spreads the individual sector risk. Influence of domestic harvest - management of raw material price fluctuations through procurement practices and customer ownership of raw materials. Influence of natural past
Slide 43: Outlook – Ridley Investment
OUTLOOK – RIDLEY INVESTMENT Organic growth through rising populations, land constraints, demand for For personal use only protein and heightened concerns for food security. # Further sector consolidation opportunities. Risk mitigation through sector diversification. Significant value generat