Slide 1: 2007 Half Year Results Presentation
RIDLEY
Slide 2: 2007 Half Year Financial Performance
Slide 3: Main Features
Main Features Operating EBIT * Australia Feeds up 13% * Cheetham Salt up 9% * North America down 10% Higher global grain prices Plant closures / capacity optimisation Canadian legal case Guidance
Slide 4: Results
Results Ag$m Sales Revenue Operating EBITDA Operating EBIT Net Operating Profit Net Profit Dividends ra * Interim Dividend 3.5 cps 50% franked F2007 716 46 34 15 12 3.5 cps
Slide 5: Non-Operating Items
Non-Operating Items * Plant closures / capacity optimisation $(3.1)m Canada - $2.1m Australia - $1.0m * Canadian legal case $(0.6)m * Discontinued operations $0.3m * Total non-operating items $(3.3)m ra * Net of tax and minority interest
Slide 6: Operating EBIT movement by segment
—— ee - 1 2006 Austalla Cheetham North Unallocated Interest! Net Non Feeds Salt America Costs Tax & Mi Operating
Slide 7: Australia Feeds
Be ROI. Australia Currency Feeds
Slide 8: Australia Feeds
RIDLEY AcRI JPRODUCTS IS Australia Feeds A$m Sales Tonnes (000's) EBIT Features e F2007 % to LY 313 28% 939 12% 9 13% Drought conditions Volumes higher - especially beef Higher grain prices Working capital
Slide 9: Australia Feeds Volume by Product
Wish Porfovssnae Anil Nevriton PUR Tonnes 000's Le Sheep Dairy Pour Supos & Liguids
Slide 10: Australia Feeds - EBIT
PQs Australia Feeds - EBIT Nolume Margins
Slide 11: Cheetham Salt
e2 Cheetham Salt A$m Sales Tonnes (000's) EBIT Features F2007 % to LY 48 10% 620 4% 13 9% Volumes up for pool, food and Qid ag sectors Cost recovery / margins improving increasing returns from Indonesia
Slide 12: Cheetham Salt - EBIT
62 Cheetham Salt - EBIT Food & Pool Indonesia Equity Profits
Slide 13: North America
| North America RIDLEY Inc Ag$m US$m Sales 356 3% 268 4% Tons (000's) 850 = (2%) EBIT 17 (10%) 13. (9%) Features » US Feeds earnings stable * Canada down due to lower sales of high margin ingredient products * No hurricane disruptions * Mild weather conditions effected volumes ra * Higher corn price
Slide 14: North America - EBIT
PQ North America - EBIT RIDLEY Inc. US Feeds £06 Claim Canada Feeds
Slide 15: Slide 15
Slide 16: Cashflow
Cashflow Ag$m EBITDA Capex Borrowing costs Tax Dividends Working capital & other Cash generated Acquisitions Net Dec 2006 Dec 2005 45 (16) (9) (7) (5) 42 (8) (6) (2) (6) (10)
Slide 17: Working Capital
Working Capital Ag$m Trade Receivables Inventory Payables Other & Provisions Total Days Sales outstanding Dec 2006 Dec 2005 Dec 2004 136 110 91 155 127 109 (206) (172) (137) 24 15 20 109 79 83 31 30 27
Slide 18: EBITDA
EBITDA A$m Australia Feeds Cheetham Salt North America Corporate & Other Canadian Legal Claim Total Dec 2006 Dec 2005 13 11 15 14 23 25 (5) (6) (1) (2) 45 42
Slide 19: Unallocated Costs
Unallocated Costs Ag$m F2007 F2006 Corporate Costs - Australia 4 4 - North America 4 4 Canadian Legal Costs 1 2 Total 6 7
Slide 20: Debt Movement
Debt Movement A$m Net Debt - June 2006 Acquisition funding Borrowings Currency translation Net Debt - December 2006 171 182
Slide 21: Gearing
Gearing Ag$m Net Debt Equity Ratio Dec 2006 Jun 2006 Dec 2005 182 390 46.7% 171 394 43.5% 167 385 43.3%
Slide 22: Key Ratios
Key Ratios Dec 2006 Dec 2005 Dec 2004 Net Debt / EBITDA 2.0 1.9 1.9 EBITDA / Net Interest 6.5 6.9 7.6 EBIT / Net Interest 49 5.3 5.4 ROSF 9.1% 9.8% 8.2% ROFE 11.4% 12.4% 9.4% EPS (fully diluted) 5.3 5.7 4.7 Note: Before nor-operating Items ROSF & ROFE have been annualised
Slide 23: Currency Impact
Currency Impact Avg Exchange Rate A$ - US$ A$ - C$ Dec 2006 Dec 2005 0.7543 0.7471 0.8493 0.8853
Slide 24: Canadian Legal Claims Update
Slide 25: Legal Claims - Status
Legal Claims - Status The actions against Canadian Government and 69% subsidiary Ridley Inc continue, but still at an early stage in all provinces: e merits of claims not yet considered by the Courts e claims are not yet authorised or certified as class actions e defences not yet filed The actions a
Slide 26: Legal Claims - Status
Legal Claims - Status « In Ontario, appeals against different aspects of the decision not to strike out the claims are being heard 13 and 14 February 2007 « In Quebec, application for authorisation of the claims as a class action was heard in October, 2006. No decision has yet been handed down « Act
Slide 27: Outlook
Slide 28: Australia Feeds
Australia Feeds Drought related demand to continue for next 2 - 3 months Dairy demand gradual reduction Lower visibility 6 months out Grain price is the key Earnings expected to be higher than last year Working capital requirements
Slide 29: Cheetham Salt
Cheetham Salt Relatively stable outlook Earnings improvement to continue Focus on incremental growth Dry weather in south will result in good salt harvest
Slide 30: North America
North America Mild winter has impacted US Feeds and Block volumes Reduced earnings due to Canada Feeds Positive RNS earnings Good cost control Customer economics dependent on long term prices of corn and other feed grains Minimal working capital impact
Slide 31: Earnings Guidance Summary
Earnings Guidance Summary Australian businesses to be ahead of last year North America lower Higher funding costs due to grain prices Canadian legal costs - $1.5m net Net Operating Profit $26 - $29 million Net Profit after tax $21 - $24 million Year end Net Debt - $175m @ current grain prices
Slide 32: RIDLEY
RIDLEY