Slide 1: FY23 Results
ASX: RIC FY23 RESULTS CONTINUED EARNINGS GROWTH Quinton Hildebrand - MD & CEO Richard Betts - CFO 17 August 2023 LEADING ANIMAL NUTRITION FY23 RESULTS | 17 August 2023 1
Slide 2: FY23 Financial Highlights
FY23 FINANCIAL HIGHLIGHTS 1 EBITDA (underlying) Earnings Growth $88.5m 2 +10.5% YoY growth --- 10% YoY EBITDA growth from ongoing operations --- Both reporting sectors contributing NPAT (reported) NPAT (underlying) Disciplined Capital Management $41.8m $41.8m --- Effective cash conversion --- Orderl
Slide 3: Packaged Feeds & Ingredients Segment
PACKAGED FEEDS & INGREDIENTS SEGMENT FY23 ($m) FY22 ($m) Variance EBITDA before significant items 65.8 58.0 +13% EBIT 56.5 47.9 +18% Segment Assets 250.6 269.8 Segment Liabilities (55.7) (66.4) Segment Net Assets 195.0 203.4 -4% EBITDA ROFE 34% 29% • Improved returns from Ingredient Recovery due to:
Slide 4: Bulk Stockfeeds Segment
BULK STOCKFEEDS SEGMENT FY23 ($m) FY22 ($m) Variance EBITDA before significant items 36.0 34.4 +5% EBIT 20.6 18.7 +10% Segment Assets 299.8 280.2 Segment Liabilities (171.3) (161.5) Segment Net Assets 128.5 118.7 +8% EBITDA ROFE 28% 29% • Improved 2H performance after delayed harvest impacted 1H • G
Slide 5: Financial Results
FINANCIAL RESULTS LEADING ANIMAL NUTRITION FY23 RESULTS | 17 August 2023 5
Slide 6: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result ($m) FY23 FY22 Analysis of Results EBITDA – Packaged Feeds and Ingredients 65.8 58.0 See segment performance reporting – p3 EBITDA – Bulk Stockfeeds 36.0 34.4 See segment performance reporting – p4 EBITDA – Ongoing operations before significant items 101.8 9
Slide 7: Balance Sheet
BALANCE SHEET Balance sheet ($m) June 2023 June 2022 Analysis of balances and movements Balance is a function of timing of receipts / payments and draw down / repayment of bank Cash & cash equivalents 43.0 27.1 funding Inventory 107.0 117.1 Decrease in inventory with normalisation of supply chains R
Slide 8: Working Capital
WORKING CAPITAL Working Capital ($m) June 23 June 22 Working capital by year ($’m) Current receivables 133.0 133.1 Inventory 107.0 117.1 80 Less Accounts Payables (205.2) (202.2) 70 Working Capital 34.8 48.0 60 50 • Working capital was reduced in the period 40 • Receivables balance remained in line
Slide 9: Cash Management
CASH MANAGEMENT Consolidated Cash flow ($m) FY23 FY22 Analysis of movement Consolidated EBIT 63.7 63.3 Consolidated EBIT after significant items Reduced depreciation as Maroota assets acquired through acquisition 10 years ago now Depreciation and amortisation 24.8 25.8 fully depreciated Consolidated
Slide 10: Capital Management
CAPITAL MANAGEMENT Net Debt ($’m) 160 The increased operating cash flow of $105.3m (FY22: $72.2m) supported the delivery of: 140 • $23.0m of growth capital including de-bottlenecking and 120 Boost projects to support the future profitability of the business 100 • $7.0m to complete an on market buy-b
Slide 11: Project Boost Well Progressed
PROJECT BOOST WELL PROGRESSED SCORECARD (30 JUNE 2023) Project Targets New De- Operational Total (announced July 2021) Capability bottlenecking Efficiency to Date Projects approved (#) 4 10 18 32 Approved spend $3.8m $3.4m $8.6m $15.8m $15m FY22-23 Targeted Capital Expenditure Spend to date $3.7m $2
Slide 12: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Delivered in FY23: • Increase in operating result / very healthy cash conversion Operating Cash Flow • Maintenance / ESG capital was prioritised Maintenance & ESG Capital (~60 – 80% of Depreciation) Inventory reduced as supply chain normalised and Working Capital • Net D
Slide 13: Growth Plan Update
GROWTH PLAN UPDATE LEADING ANIMAL NUTRITION FY23 RESULTS | 17 August 2023 13
Slide 14: Growth Plan FY23 – FY25
GROWTH PLAN FY23 – FY25 Key Initiatives FY22 FY23 FY24 FY25 --- NovaqPro™ international sales --- Growing with aqua customers --- Companion animal sales --- Premiumisation of rendered products --- Tallow & protein meal trading EBITDA Earnings Growth Packaged & --- NovaqPro™ operating efficiencies In
Slide 15: FY23 – FY25 Growth Plan: Packaged & Ingredients
FY23 – FY25 GROWTH PLAN : PACKAGED & INGREDIENTS Ingredient Recovery (formerly Rendering) Ingredient Recovery Update Strategy “climbing the wall of value” Product • Renewed key raw materials supply contracts onto multi- • Invest in processing year agreements capability to produce Freeze Dried Produc
Slide 16: FY23 – FY25 Growth Plan: Packaged & Ingredients
FY23 – FY25 GROWTH PLAN : PACKAGED & INGREDIENTS Packaged Products Update Packaged Aqua NovaqPro® • Narangba packing line on schedule for December Products (Feed / Sector Support) 2023 completion (also unlocks an additional 10% Strategy Strategy Strategy in extrusion capacity) • Launched the Barasto
Slide 17: FY23 - FY25 Growth Plan: Bulk Stockfeeds
FY23 - FY25 GROWTH PLAN : BULK STOCKFEEDS Ridley’s Virtuous Cycle Bulk Stockfeed Increase Capacity Key Initiatives and Efficiency Strategy Growth • increase mill utilisation Invest in Better Delivery Infrastructure and Reliability • de-bottleneck sites Leverage the flywheel effects • new product off
Slide 18: Wasleys Feedmill de-bottleneck projects completed
FY23 Wasleys Feedmill, South Australia 4 de-bottleneck projects completed +10% Bulk Stockfeeds 2 capacity year sales growth runway increase St Arnaud (Monogastric) Feedmill project completed October 2022 Terang (Ruminant) Feedmill project completed November 2022 Wellsford (Monogastric) Feedmill proj
Slide 19: Pakenham Feedmill, Victoria
FY24 Pakenham Feedmill, Victoria +5% 2 De-bottleneck projects underway Bulk Stockfeeds capacity increase Pakenham (Ruminant) Feedmill project planned completion November 2023 Clifton (Monogastric) Feedmill expansion project planned completion June 2024 LEADING ANIMAL NUTRITION FY23 RESULTS | 17 Augu
Slide 20: Sustainability
SUSTAINABILITY LEADING ANIMAL NUTRITION FY23 RESULTS | 17 August 2023 20
Slide 21: Strategy and Implementation Process
STRATEGY AND IMPLEMENTATION PROCESS Below is a summary of the six phases of the strategy development process and the associated timeframe. The preliminary results from Phases 1-4 are presented on the following slides. PHASE 3: PHASE 1: PHASE 2: PHASE 4: PHASE 5: IDENTIFY ACTIVITIES AND STOCKTAKE DEV
Slide 22: Ridley Sustainability Pillars
RIDLEY SUSTAINABILITY PILLARS¹ Working with our partners, we have identified four pillars to deliver real value in sustainable ways: SMARTER INGREDIENTS OPTIMISED PRODUCTION EFFECTIVE SOLUTIONS MEANINGFUL PARTNERSHIPS Sourcing high-quality raw materials that are produced Optimising our manufacturing
Slide 23: Ridley Sustainability Framework
RIDLEY SUSTAINABILITY FRAMEWORK PILLARS FOCUS OF COMMITMENTS BEING DEVELOPED SMARTER INGREDIENTS Support the reduction of deforestation and conversion free supply chains Reduce CO2-e per tonne of finished product from energy consumption OPTIMISED PRODUCTION Focus on sustainable packaging for outgoin
Slide 24: Outlook
OUTLOOK LEADING ANIMAL NUTRITION FY23 RESULTS | 17 August 2023 24
Slide 25: Ridley's Growth Platform
RIDLEY’S GROWTH PLATFORM • With a well-defined Growth Plan, strong balance sheet and disciplined approach to capital management, Ridley is well positioned to execute on opportunities to create shareholder value. • Ridley’s position as market leader in the animal nutrition sector provides scale benef
Slide 26: Outlook
OUTLOOK Ridley expects ongoing earnings growth for the year ahead by delivering: • further premiumisation for the petfood sector in the Packaged & Ingredients segment; and • volume increases in the Bulk Stockfeeds segment enabled by the de-bottlenecking projects. Macro-economic conditions are expect
Slide 27: Important notice and disclaimer
The material in this presentation is general background information about the activities of Ridley Corporation Limited (ACN 006 708 765) and its related entities (Ridley), current as at the date of this presentation, unless otherwise stated. The content is information given in summary form and does
Slide 28: Historical Financial Information
HISTORICAL FINANCIAL INFORMATION LEADING ANIMAL NUTRITION FY23 RESULTS | 17 August 2023 28
Slide 29: Profit & Loss Summary
PROFIT & LOSS SUMMARY Consolidated Result ($m) FY23 FY22 Analysis of Result FY21 FY20 FY19 EBITDA – Ongoing operations before significant items 101.8 92.4 Up $9.5m, or 10.2% on prior year period 79.0 69.4 59.4 Includes CEO retention bonus of $1m, underlying costs well Corporate Costs (13.3) (12.2) (
Slide 30: Balance Sheet - Assets
BALANCE SHEET - ASSETS Balance Sheet ($m) FY23 FY22 Analysis of Result FY21 FY20 FY19 Balance is a function of timing of receipts / payments and draw down / repayment Cash & cash equivalents 43.0 27.1 39.9 45.8 17.5 of bank funding. Decrease of inventory, held to manage the challenging supply chain
Slide 31: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Balance Sheet ($m) FY23 FY22 Analysis of Result FY21 FY20 FY19 Reflects timing of creditor payments within agreed trading terms and increased Current payables 205.2 202.2 165.5 161.3 158.8 commodity prices Current provisions 15.6 15.2 Includes current employee entitlement
Slide 32: Cash Management
CASH MANAGEMENT Consolidated Cash flow ($m) FY23 FY22 Analysis of Result FY21 FY20 FY19 Consolidated EBIT 63.7 63.3 Consolidated EBIT after significant items 39.5 (11.0) 35.4 Depreciation and amortization 24.8 25.8 29.6 26.2 18.9 Consolidated EBITDA 88.5 89.1 EBITDA in the prior year included signif
Slide 33: Net Debt, Gearing & Leverage
NET DEBT, GEARING & LEVERAGE Major capital projects ($m) FY23 FY22 Analysis of Result FY21 FY20 FY19 Development capital expenditure 23.0 10.9 Includes both de-bottlenecking and Boost projects 10.4 42.9 60.0 Maintenance capital expenditure 11.3 12.9 Prioritised in line with the capital allocation mo
Slide 34: LEADING ANIMAL NUTRITION FY23 RESULTS
LEADING ANIMAL NUTRITION FY23 RESULTS | 17 August 2023 34