Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — Investor Presentation (May 2025)
51 slides from Graincorp Limited Class A's investor presentation, May 15, 2025
Slide 1: 1H25 Results
1H25 Results For the six months ending 31 March 2025 15 May 2025 This release has been authorised by the Board of GrainCorp Limited
Slide 2: Disclaimer
Disclaimer This presentation includes both information that is historical in character and information that consists of forward-looking statements. Forward-looking statements are based on current expectations of future results or events. The forward-looking statements are subject to risks, stakehold
Slide 3: Acknowledgement of Country
Acknowledgement of Country GrainCorp acknowledges Aboriginal and Torres Strait Islander peoples as the First Peoples of Australia and embraces the spirit of reconciliation, working towards the equality of outcomes and ensuring an equal voice. This artwork was created by Lani Balzan, a proud Aborigin
Slide 4: Agenda
Agenda Speakers Contents Robert Spurway 1H25 highlights Managing Director and CEO Strategy and growth 1H25 financial performance Ian Morrison Chief Financial Officer Balance sheet and capital management Outlook and conclusion Appendices GrainCorp receival site in Biniguy, New South Wales Photo by Br
Slide 5: Our investment proposition
Our investment proposition Providing exposure to the growing global demand for high-quality food, feed and agri-energy products Attractive long-term fundamentals Strategic infrastructure assets Supply chain resilience Strong balance sheet Disciplined capital management Track record of shareholder re
Slide 6: 1H25 highlights
1H25 highlights Financial metrics Operating metrics Balance sheet & capital management Underlying EBITDA(1) Total grain handled(4) Core cash $202m (1H25 EBITDA: $187m) 29.5mmt (1H24 25.4mmt) $296m (FY24: $337m) (1H24 EBITDA: $154m) Underlying NPAT(2) Oilseed crush volumes Interim dividends $69m (1H2
Slide 7: Health and safety
Health and safety Focus on continuous improvement as we strive for ‘zero-harm’ Health and safety performance • Recordable injury frequency rate(1) of 5.5 • Lost time injury frequency rate(2) of 1.9 • Focus areas in 1H25 include - Prevention of critical incidents with a targeted focus on confined spa
Slide 8: Sustainability
Sustainability Sustainable initiatives are creating long-term shareholder value GrainCorp Next Reducing GrainCorp’s emissions Jet Zero Council • GrainCorp Next is an initiative to build an • Diverted almost 300,000kg of tarps from end-to-end low-emission (and nature- • GrainCorp is a leading Austral
Slide 9: Strategy and growth
Strategy and growth
Slide 10: GrainCorp's vision and strategy
GrainCorp’s vision and strategy Delivering sustainable growth through-the-cycle 10
Slide 11: Macro trends supporting GrainCorp's strategy
Macro trends supporting GrainCorp’s strategy Attractive long-term fundamentals underpinning demand and earnings growth Population growth and changing demographics Diverse and attractive end markets Forecast population growth of Australia’s 20 largest grain Australian grain industry export destinatio
Slide 12: Global operating environment
Global operating environment GrainCorp is well positioned to adapt to disrupted trade flows Market update • GrainCorp and the broader agriculture sector has a long history of effectively managing tariff and non-tariff barriers • GrainCorp has demonstrated agility across its network by adapting quick
Slide 13: Our strategy in action
Our strategy in action Positioning GrainCorp for success today and into the future Enhance Driving returns from our • Completed upgrade at Condobolin to improve rail integrated footprint of loading capability infrastructure and processing assets • Increased margins in non-grain volumes at our ports
Slide 14: Investing in efficiencies across our network
Investing in efficiencies across our network Strengthening our grains supply chain; improving efficiency East Coast Australia • Delivering on program to increase ECA network efficiency • Invested $7m in Condobolin rail upgrade expected to boost grain freight efficiency(1) - Expand Condobolin’s rail
Slide 15: Expanding Animal Nutrition portfolio
Expanding Animal Nutrition portfolio Supporting continued growth in Animal Nutrition Animal Nutrition • XFA1 acquisition completed on 2 April 2024 with integration well progressed • EBITDA contribution of $14m for initial 12-months post-acquisition; outperforming business case expectations of $10m •
Slide 16: Progressing the development of a renewable fuel supply chain
Progressing the development of a renewable fuel supply chain Partnering with Australian industry to decarbonise hard-to-abate transport sectors Agri-energy • Progressing work with MOU partners Ampol and IFM Investors; continued engagement with re-elected Government on policy framework • Targeting fr
Slide 17: Business Transformation Program
Business Transformation Program Release 1 implementation underway Business transformation investment • Business-wide transformation program to unlock $m FY24 1H25 efficiencies and drive returns across our integrated value chain Planning and design Program Operating expenditure 9 - Overview • Opportu
Slide 18: Strong execution in a challenging global environment
Strong execution in a challenging global environment GrainCorp continues progressing strategy and maintaining balance sheet flexibility 1H25 performance Progressing strategy Delivering shareholder value • 1H25 underlying EBITDA(1) of $202m • Continued investment in ECA • Balance sheet remains strong
Slide 19: 1H25 financial performance
1H25 financial performance oa”
Slide 20: 1H25 financial performance
1H25 financial performance Strong production volumes in East Coast Australia Business segment EBITDA ($m) 1H25 1H24 • Agribusiness result higher year-on-year, driven by strong ECA production volumes • Nutrition and Energy reflects lower crush margins, partially offset by mark-to-market timing benefi
Slide 21: Agribusiness
Agribusiness Strong operational execution across our network East Coast Australia (ECA) Agribusiness • ECA crop production of 33.8mmt in 2024-25 compared to 26.0mmt in $m 1H25 1H24 2023-24(1) Revenue EBITDA − Above average production in Queensland and New South Wales in contrast to Victoria, where A
Slide 22: Agribusiness
Agribusiness Challenging global margin environment International(1) • Year-on-year increase in contracted grain sales reflects large Western Australian crop Contracted grain sales (mmt) – Western Australia winter crop production of 23.0mmt in 2024-25(2) International ECA − 55% above 2023-24 crop; 23
Slide 23: Nutrition and Energy
Nutrition and Energy Executing well across our processing facilities Human Nutrition Nutrition and Energy $m 1H25 1H24 • First half crush volumes of 283kmt, compared to 282kmt in 1H24 Revenue • Increase in edible oils sales volumes due to improved domestic demand EBITDA EBIT • Transitioned processin
Slide 24: Nutrition and Energy
Nutrition and Energy Positive underlying fundamentals driving growth in Animal Nutrition Animal Nutrition Animal Nutrition sales volumes (kmt) • 1H25 sales volumes of 370kmt includes contribution from XFA of 118kmt Non-XFA volumes XFA Volumes 370 • Increase in New Zealand feeds sales volumes as a re
Slide 25: Corporate
Corporate Disciplined investment in growth and transformation projects Corporate Corporate • Underlying corporate in line with 1H24 $m 1H25 1H24 • Growth projects spend includes costs associated with ongoing oilseed crush Underlying corporate feasibility study Growth projects • Business transformati
Slide 26: Balance sheet and capital management
Balance sheet and capital management
Slide 27: Balance sheet strength
Balance sheet strength Maintaining balance sheet flexibility while returning capital to shareholders Core cash / (debt) ($m) Debt and liquidity profile 495 Components 31 Mar 2025 30 Sep 2024 31 Mar 2024 349 Term debt 337 296 Inventory and working capital financing 177 200 129 Cash Net cash / (debt)
Slide 28: Capital allocation discipline
Capital allocation discipline Year-on-year increase in sustaining capex reflecting larger crop year Capex and investments ($m)(1) Depreciation & Amortisation (D&A) ($m)(2) Sustaining Growth Investments Business transformation D&A AASB 16 depreciation 117 117 119 86 95 92 107 4 81 6 36 36 42 1 1 28 2
Slide 29: Delivering consistently strong shareholder returns
Delivering consistently strong shareholder returns Returned over $520m to shareholders since FY21 Dividend history (cents per share) 30 30 • Total interim dividend of 24cps Ordinary dividend 24 24 24 24 24 Special dividend 16 16 − Ordinary dividend of 14cps, fully franked 12 10 10 10 10 10 − Special
Slide 30: Outlook and conclusion
Outlook and conclusion
Slide 31: Outlook
Outlook Positive production outlook in challenging margin environment FY25 earnings guidance upgraded Australian rainfall deciles – 3 months to 30 April 20251 • Underlying EBITDA of $285-325 million Highest on record • Underlying NPAT of $65-95 million Very much above average Above average Average M
Slide 32: Conclusion
Conclusion Strong execution delivering $202m of EBITDA in 1H25 Continuing to invest in the growth of our business Core cash balance of $296m at 31 March 25 Dividends of 24cps and share buy-back increased to $75m Upgraded FY25 EBITDA guidance to $285-$325m 32
Slide 33: Appendices
| 1 ; ppendices
Slide 34: Our network of assets
Our network of assets GrainCorp is a leading Australian agribusiness and processing company, with integrated operations across four continents and a proud history of delivering for customers for more than 100 years 34
Slide 35: How we operate
How we operate We partner with growers to maximise the value of their crops, connecting them to domestic and global marketplaces through our end-to-end supply chain and infrastructure assets. We develop innovative solutions to create high-quality and sustainable products across Human Nutrition, Anim
Slide 36: Agri-energy is a significant opportunity for Australian Agriculture
Agri-energy is a significant opportunity for Australian Agriculture Low carbon liquid fuels demand expected to be strong Compelling fundamentals GrainCorp’s right to win • Rising global demand for low carbon liquid fuels to meet • A leading Australia-based feedstock supplier (canola oil, UCO, decarb
Slide 37: GrainCorp Ventures
GrainCorp Ventures Investing in opportunities that support long-term agricultural sustainability and productivity GrainCorp Ventures Portfolio Levur • Focused on developing sustainable, nature- identical oils through microbial fermentation Calice New Investments 111 • Leverages AI and integrative ge
Slide 38: Average ECA grain production continues to improve
1. 2. 30.0 20.0 25.0 35.0 0.0 5.0 10.0 15.0 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 Based on ABARES’ March 2025 Crop Report 1998-99 1999-00 2000-01 Total ECA Winter Crop Production(1) 2001-02 2002-03 CAGR based on 10-year rolling average from 1998-99 to 2024-25e 2003-
Slide 39: ECA tonnes handled
ECA tonnes handled mmt FY21 FY22 FY23 FY24 FY25 ABARES – total ECA winter + sorghum production(1) 34.3 33.9 32.8 26.0 33.8 Carry-in 0.7 4.3 4.9 3.9 2.5 Receivals(2) 16.5 16.3 13.9 10.1 12.5 – 13.5 Imports (trans-shipments) - - - - - Domestic outload 5.0 6.4 6.4 5.9 5.5 – 6.5 Exports(3) 7.9 9.2 8.3 5
Slide 40: Delivering sustainable earnings through the cycle
Delivering sustainable earnings through the cycle GrainCorp earnings profile since FY20(1) Underlying EBITDA ($m) CPC Impact (excluding premium)(2) (87) 703 (77) 565 (65) 423 (35) 378 331 (55) 3054 320 268 98(3) 53 FY20 FY21 FY22 FY23 FY24 FY25e Average underlying Average underlying Average EBITDA E
Slide 41: Building blocks of $320m EBITDA in average earnings through-the-cycle
Building blocks of $320m EBITDA in average earnings through-the-cycle Key drivers - Agribusiness Agribusiness – TTC contribution ECA International • ECA crop production (winter & summer) • Western Australia and Canada crop production Agribusiness • Total grain handled ~66% • Contracted grain sales v
Slide 42: Crop Production Contract
Crop Production Contract Smoothing GrainCorp’s cash flows through-the-cycle About the Crop Production Contract (CPC) Crop Production Contract (CPC) – payments(3) • CPC was critical in facilitating demerger of GrainCorp and United Malt $70m gross payment based on 29.5mmt • 10-year contract (started F
Slide 43: Crop Production Contract
Crop Production Contract GrainCorp has reached $270m cap following the FY25 payment Crop Production Contract – payments to date(1) Crop Production Contract – payments to date (cumulative)(1) Counterparty payment cap: $270m FY20 Received $58m based on 11.4mmt crop FY21 Paid $70m based on 30.4mmt FY22
Slide 44: Underlying EBITDA bridge: 1H24 to 1H25
Underlying EBITDA bridge: 1H24 to 1H25 18 7 41 1 202 (17) (3) (4) (3) (2) 164 1H24 Higher ECA CPC Impact(1) Lower GCC XFA Human Agri-energy UMG Corporate – 1H25 underlying volumes International earnings (6 months) Nutrition Impact(2) Growth underlying EBITDA offsetting margins projects EBITDA lower
Slide 45: Cash flow
Cash flow ($m) 31 March 2025 31 March 2024 EBITDA 187 154 Net Interest (38) (27) Income taxes paid (41) (85) Changes in working capital and other related items (32) 76 Net operating cash flow excl inventory funding & commodity inventory 75 119 Proceeds for bank loans – inventory funding 989 296 Comm
Slide 46: Working capital movements
Working capital movements Larger ECA crop requiring increased working capital Net Working Capital (NWC)(1) • Year-on-year increase reflects: 800 - higher commodity inventory and values 700 - Increased export activity associated with larger ECA crop 600 • Seasonal second-half unwind expected due 500
Slide 47: Core cash / (debt) bridge: FY24 – 1H25
Core cash / (debt) bridge: FY24 – 1H25 131 3 187 (90) (23) (80) (30) • Core cash position at 31 March 2025 of (38) 1 $296m, compared to $337m at 30 September 337 (41) 2024 (53) 296 (8) • Dividends comprise FY24 final ordinary dividend of 14cps and FY24 final special dividend of 10cps • Increase in w
Slide 48: Reconciliation of underlying earnings
Reconciliation of underlying earnings Reconciliation of NPAT to underlying NPAT $m 1H25 1H24 NPAT 58.1 49.6 Business transformation costs 15.2 9.8 Less tax on business transformation costs (4.5) (2.9) Underlying NPAT 68.8 56.5 Reconciliation of EBITDA to underlying EBITDA $m 1H25 1H24 EBITDA 186.5 1
Slide 49: Capital management framework
Capital management framework Service debt • Target minimal core debt obligations • Debt finance commodity inventory and working capital Sustaining capital expenditure • Target $40–50m p.a. Dividends • Payout ratio = 50-70% of NPAT through-the-cycle • Capital investment in growth Surplus cash flow pr
Slide 50: Glossary
Glossary Term Definition Term Definition AASB Australian Accounting Standards Board LTIFR Lost Time Injury Frequency Rate ABARES Australian Bureau of Agricultural and Resource Economics mmt Million metric tonnes CAGR Compound Annual Growth Rate Net debt Total debt less cash Carry-in Grain inventory
Slide 51: GrainCorp Limited
GrainCorp Limited Level 20, Tower 2, International Towers 200 Barangaroo Avenue Sydney NSW 2000