Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Bell Potter 'Home Grown' Agriculture Conference 2022
17 slides from Graincorp Limited Class A's conference presentation, Jun 8, 2022
Slide 1: Bell Potter 'Home Grown' Agriculture Conference
Robert Spurway Managing Director and CEO Bell Potter ‘Home Grown’ Agriculture Conference 8 June 2022 A shared passion.
Slide 2: Disclaimer
WORK IN PROGRESS DRAFT Disclaimer 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.
Slide 3: GrainCorp at a glance
WORK IN PROGRESS DRAFT GrainCorp at a glance High quality strategic infrastructure assets servicing customers worldwide International: GrainsConnect Canada JV: Global network of offices, originating grain, State-of-the-art grain supply chain connecting pulses and oilseeds from different regions and
Slide 4: Agenda
WORK IN PROGRESS DRAFT Agenda HY22 result recap Outlook – FY22 and FY23 Strategic priorities Focus area: Alternative Protein Focus areas: Alternative Protein, AgTech, Carbon Conclusion 4
Slide 5: Record first half result in HY22
WORK IN PROGRESS DRAFT Record first half result in HY22 Outstanding financial and operational performance EBITDA NPAT Return on invested capital (ROIC)1 $427m from $140m $246m from $51m 25.7% 2 from 11.1% (Sep 21) Total grain handled3 Oilseed crush volumes Core cash / (debt) $129m from ($90m) 38.0mm
Slide 6: On track for exceptional FY22 result
WORK IN PROGRESS DRAFT On track for exceptional FY22 result Strong global demand; favourable ECA conditions for 2022/23 Underlying EBITDA ($m) FY22 earnings guidance1 590-670 Underlying EBITDA $590-$670 million 331 Underlying NPAT $310-$370 million 1082 FY23 outlook FY20 FY21 FY22 (guidance) H
Slide 7: Strong potential for third consecutive bumper crop in FY23
WORK IN PROGRESS DRAFT Strong potential for third consecutive bumper crop in FY23 ECA winter grain production (mmt) 30.4 30.4 First ABARES forecast for 28.2 the season (June) 24.7 10-year average1 20mmt 18.1 17.0 17.3 16.8 12.2 8.5 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021
Slide 8: ECA production rising since deregulation started
WORK IN PROGRESS DRAFT ECA production rising since deregulation started ECA winter grain production1 / 10-year rolling average (mmt) 2.3% CAGR2 20.4 Average: 14.9 2013/14 – 2022/23 Average: 1999/00 – 2008/09 Total ECA winter 10-year rolling (mmt) average (ECA winter) 1. 2022/23 is based on ABARES’ 7
Slide 9: Sustainability at the core of GrainCorp
WORK IN PROGRESS DRAFT Sustainability at the core of GrainCorp Following our clear roadmap of actions for sustainable growth Environment Social Governance • Leading supplier of renewable fuel • GrainCorp Community Foundation • Aligning with GRI1 and UNSDG2 feedstocks (used cooking oil, tallow, appro
Slide 10: Macro themes supporting strategic priorities
WORK IN PROGRESS DRAFT Macro themes supporting strategic priorities Global Supply Chain Pressure Index1 Projected average GDP growth rates (2022-33)3 (%) 5.00 5.0 4.00 3.00 Reinforces 4.0 2.00 importance of supply 3.0 Australia well located 2.0 1.00 chain ownership, 1.0 to service Asia – 0.00 -1.00
Slide 11: Strategic priorities delivering shareholder value
WORK IN PROGRESS DRAFT Strategic priorities delivering shareholder value VISION Lead sustainable and innovative agriculture through another century of growth PURPOSE Proudly connect with customers and rural communities to deliver value through innovation and expertise STRATEGIC Strengthen the core T
Slide 12: Driving utilisation of supply chain assets
WORK IN PROGRESS DRAFT Driving utilisation of supply chain assets ECA port throughput (mmt) 12 10 8 Bulk materials 6 Grain imports 4 Grain exports1 2 0 FY18 FY19 FY20 FY21 FY22 forecast GrainCorp bulk port terminal, Port Kembla, NSW Oilseed crush volumes – first half (kmt) 36% Since 20192 126 170 19
Slide 13: Exploring opportunities in fast-growing plant protein market
WORK IN PROGRESS DRAFT Exploring opportunities in fast-growing plant protein market Alternative protein supporting a healthy, secure and sustainable food system for the future Alternative protein playing key role in meeting rising global demand for protein Shift to plant proteins expected to hav
Slide 14: Supporting long-term sustainable growth in Australian Agriculture
WORK IN PROGRESS DRAFT Supporting long-term sustainable growth in Australian Agriculture Investing up to $30 million into AgTech over next three years Four key investment areas: Analytics and optimisation Optimising the value and quality of agricultural commodities from the farmgate Smart supply cha
Slide 15: AgTech driving carbon reduction in agriculture
WORK IN PROGRESS DRAFT AgTech driving carbon reduction in agriculture GrainCorp well positioned to support growers in carbon sequestration 15% investment in Hone, an Australian AgTech start- Australian carbon company that has developed a up that tests grain, soil and crop samples through a micro
Slide 16: Conclusion
WORK IN PROGRESS DRAFT Conclusion Record financial result in HY22; on track for exceptional FY22 result Favourable ECA conditions supporting FY23 outlook Strategy delivering shareholder value Innovation and technology integral to growth initiatives GrainCorp playing key role in long-term sustainable
Slide 17: Proudly connecting with customers and rural communities
Proudly connecting with customers and rural communities to deliver www.graincorp.com.au value through innovation and expertise
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