Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — 2010 BBY Agriculture, Cleantech & Energy Conference
20 slides from Graincorp Limited Class A's conference presentation, Sep 14, 2010
Slide 1: GrainCorp presentation to the 2010 BBY Agriculture, Cleantech & Energy Conference
Company announcement For personal use only GrainCorp Limited ABN 60 057 186 035 Date: Tuesday, 14 September 2010 To: The Manager Announcements Company announcements office PUBLIC ANNOUNCEMENT GRAINCORP PRESENTATION TO THE 2010 BBY AGRICULTURE, CLEANTECH & ENERGY CONFERENCE Betty Ivanoff General Coun
Slide 2: GrainCorp Malt – Update
BBY ACE Conference – 14 September 2010 For personal use only GRAINCORP MALT – UPDATE Ian Wilton – President and Chief Executive – GrainCorp Malt Angelo Di Petta – President – Barrett Burston Malting 14/09/2010 1
Slide 3: Today's presentation will cover...
Today’ss presentation will cover... Today cover For personal use only • Update on integration progress • Overview of international malt market fundamentals • GrainCorp Malt’s response to international market dynamics • Development, efficiency and sustainability initiatives 14/09/2010 2
Slide 4: Malt's diversified footprint
GrainCorp Malt Malt’ss diversified footprint For personal use only • Four operating companies across Canada, the US, UK and Australia • 15 plants – total capacity approx. approx 1.2 1 2 mmt(1) • Blue chip customer base – short and long term supply relationships Australia Barrett Burston Malting Ca
Slide 5: Integration is well progressed and on track
Integration is well progressed and on track For personal use only Priority •Progress Update Integration • Implement controls, policies and systems Approach • Maintain well established independent brands Integration • Management appointments including Ian Wilton (President and CEO – GrainCorp Activit
Slide 6: International barley supply trending lower
International barley supply trending lower For personal use only MMT International Barley Production and Plantings million Ha 180 Production (mmt) LHS Area Planted (million Ha) RHS 70 • Lower 2010‐2011 plantings due to early 160 65 season price signals and adverse weather 140 60 • Lower estimated 20
Slide 7: Malting barley price recently higher
Malting barley price recently higher For personal use only Market Price Movements (US$/t) FOB Geelong Barley Prices (€/t) • Malting barley prices 500 260 450 240 increased 45% to €197t in the 400 350 220 Feed Barley Malting Barley 3 months to 31‐Aug‐10 200 300 250 180 • Supply concerns in central 20
Slide 8: Rising international consumption
Rising international consumption For personal use only International Beer Consumption 3,000 • ~95% of malt is used for beer production 2 500 2,500 • International beer consumption has olitres ‘millions 2,000 grown steadily over the past 15 years 1,500 • Forecast to rise in the next 10 years Hecto 1,
Slide 9: International malt production capacity
International malt production capacity For personal use only • International malt production capacity of ~25 mmt • Malt demand of ~22 mmt • International capacity utilisation of 85% – Excess E capacity i predominantly d i l iin Europe E and d China Chi Europe • ~40% of international production and ~
Slide 10: Malt's strategic response
GrainCorp Malt Malt’ss strategic response For personal use only Certainty C t i t off Providing Pro idin certainty ertaint of supply s ppl through thro h short and long‐term long term ssupply ppl Supply agreements and production located in malt barley growing regions Customer Maintain long term cust
Slide 11: Provide certainty of supply
Provide certainty of supply For personal use only • Market M k t trends t d encourage customers t to t seekk quality lit and d tonnage t supply l certainty t i t • Relationships with customers are on‐going – not just focused on ‘sales’ • Involves significant levels of quality focused technical inter
Slide 12: Customer relationships and diversity of sales
Customer relationships and diversity of sales For personal use only • R Reputation t ti ffor producing d i hi high h quality lit malt lt that th t meets t customers’ t ’ product d t specifications and supply chain requirements • W Working ki with ith customers t tto provide id malt lt th thatt meets
Slide 13: Efficiency and sustainability initiatives
Efficiency and sustainability initiatives For personal use only • Canada Malting Co (CMC) has entered a heat and Bonnybrook Energy Centre ((artist’s impression) p ) reclaimed water sharing agreement with energy provider Waste Water ENMAX at its Calgary malt facility / Heat • CMC will reclaim its eff
Slide 14: Arbroath development complete
Arbroath development complete For personal use only • New capacity of 57,000 tonnes, officially opened in April 2010 • Total project cost of £23m • Modernisation of germination vessels and conveying equipment • Reduced water and energy consumption • Ideally placed to manage an integrated supply chai
Slide 15: Pinkenba development on track
Pinkenba development on track For personal use only • A new development of 85,000 tonnes capacity • Scheduled completion early 2011 • Total BBM project cost ~A$85m • Automated A t t d plant l t with ith hi high h energy efficiency ffi i • Location adjacent to GrainCorp Pinkenba • Portside location m
Slide 16: Pinkenba development on track
Pinkenba development on track For personal use only Basement of the Barley Silos Germination Vessel 14/09/2010 15
Slide 17: Vancouver (WA) capex projects identified
Vancouver (WA) capex projects identified For personal use only • Port of Vancouver (WA) to retake land from GWM • GWM to receive US$32.6m compensation over 5 years • Funds will be used to replace assets and undertake several other GWM capital projects • GWM has until April 2013 to move off the new r
Slide 18: In Summary
In Summary Summary... For personal use only GrainCorp Malt Integration • Was a ‘bolt on’ so integration is close to completion International Market Dynamics y • Prepared for international malting barley supply and demand trends, malting barley price variations, growth in malt demand, and malting cap
Slide 19: Thank you – Q&A
For personal use only THANK YOU Q&A 14/09/2010 18
Slide 20: 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. T
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