Ridley Corporation Limited · ASX:RIC
Ridley — 19th Australasian AgFood Conference 2021
13 slides from Ridley's conference presentation, Jul 28, 2021
Slide 1: Sustainable & Scalable Cash Flow
19th Australasian AgFood Conference 28 July 2021 Sustainable & Scalable Cash Flow Quinton Hildebrand MD & CEO
Slide 2: Australia's Leading Provider of High Performance Animal Nutrition Solutions
Australia’s Leading Provider of High Performance Animal Nutrition Solutions 18 sites Meaningful market share across wide range of sectors Diverse Customer Base Earnings Momentum EBITDA pre significant items 70 60 50 40 $M 2M 30 20 10 Tonnes - production FY17 FY18 FY19 FY20 FY21 Results to be release
Slide 3: Introduction: Sustainable & Scalable Cash Flow at Ridley
INTRODUCTION Sustainable & Scalable Cash Flow at Ridley Today’s presentation will provide insight into Ridley’s… 1. plans to grow earnings and cash 2. emerging Capital Allocation Framework …which aim to provide a sustainable and scalable cash flow. PAC PARTNERS & WESTPAC AGFOOD CONFERENCE | 28 JULY
Slide 4: Growth in Earnings
Growth in Earnings Ongoing Growth Strategy & Launch of Project Boost
Slide 5: Growth Strategy
GROWTH STRATEGY Ongoing delivery of improvements in core business, whilst focused on sales growth EARNINGS GROWTH POTENTIAL • NovacqTM operational efficiencies • NovacqTM international sales EXPANSION / • New range of Packaged Products INNOVATION • Rendering product development • Acquisitions • West
Slide 6: Aquafeed Reset
AQUAFEED RESET Consolidation of aquafeed production into Narangba Facility to improve earnings Narangba, QLD extrusion plant upgrade Aquafeed Westbury, TAS extrusion plant sold Pet food project ($4.5M) : for $54.85M : • plant was underutilised • completed 19 July 2021 Narangba • limited Tasmanian sa
Slide 7: Supply Chain Rationalisation
SUPPLY CHAIN RATIONALISATION End to end review underway with savings expected to commence in FY22 External Current Supply Chain metrics Supply 55% of freight contracted direct Chain DEMAND by customers Specialists Engaged to: TRANSPORT >$40M Ridley freight spend with100+ carriers • improve schedulin
Slide 8: Project Boost
PROJECT BOOST A capital reinvestment program to drive profitable growth $15M 15 small, low risk capital projects have been identified that will extend Ridley’s product offering, de-bottleneck capacity FY22-23 additional capital expenditure and reduce cost: $9M Investment in new capability in: De-bot
Slide 9: Emerging Capital Allocation Framework
Emerging Capital Allocation Framework Driving Shareholder Value
Slide 10: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Embedding greater discipline Post the Westbury sale Ridley’s Operating Cashflow Net Debt will be approximately $30M (< 0.5x leverage ratio). Maintenance & ESG Capital The Capital Allocation Framework aims to: and Working Capital • prioritise maintenance and working capit
Slide 11: Summary
SUMMARY Delivering a sustainable and scalable cash flow Ridley is well placed to grow earnings and cash through: • continued momentum in the underlying business segments; • the ongoing delivery of the Growth Strategy; and • the expected returns of Project Boost. The development of a Capital Allocati
Slide 12: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Disclaimer The material in this presentation is general background information about the activities of Ridley Corporation Limited and its related entities (Ridley), current at the date of this presentation, unless otherwise stated. The content is information given in
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