Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — 22nd Australasian AgFood Conference 2024
18 slides from Graincorp Limited Class A's conference presentation, May 29, 2024
Slide 1: ASX Announcement: Australasian AgFood Conference Presentation
GrainCorp Limited ABN 60 057 186 035 Level 20, Tower 2, International Towers 200 Barangaroo Avenue Barangaroo NSW 2000 Australia 29 May 2024 t +61 2 9325 9100 f +61 2 9325 9180 graincorp.com.au ASX Announcement | Australasian AgFood Conference Presentation GrainCorp Limited (ASX:GNC) (Company) wishe
Slide 2: Robert Spurway, Managing Director & CEO - 22nd Australasian AgFood Conference
For personal use only Robert Spurway Managing Director & CEO 22nd Australasian AgFood Conference 29 May 2024
Slide 3: Disclaimer
Disclaimer This presentation includes both information that is historical in character and For personal use only 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
Slide 4: Agenda
Agenda For personal use only • About GrainCorp • 1H24 results recap • Strategy • Outlook and conclusion GrainCorp Silo Art in Thallon, QLD GrainCorp acknowledges Aboriginal and Torres Strait Islander peoples as the First Peoples of Australia and embraces the spirit of reconciliation, working towards
Slide 5: Our network of assets
Our network of assets For personal use only 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 > 4 >
Slide 6: 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. For personal use only We develop innovative solutions to create high quality and sustainable products across
Slide 7: 1H24 highlights
1H24 highlights Resilient performance as conditions normalise For personal use only Return on invested capital Underlying net profit after tax 1 Underlying EBITDA2 (ROIC)3 $57m (1H24: statutory NPAT: $50m) $164m (1H24: EBITDA: $154m) 7.4% (1H23: 22.7%) (1H23: statutory NPAT: $200m) (1H23: EBITDA: $3
Slide 8: Balance sheet strength
Balance sheet strength Disciplined capital management; consistent dividend profile through-the-cycle Dividends (cents per share) For personal use only Core cash / (debt) ($m) Ordinary dividend 30 30 495 Special dividend 24 24 24 16 16 349 12 10 10 177 200 10 7 8 129 12 14 14 14 14 8 10 7 (1) FY20 fi
Slide 9: Strategy aligned to macro trends
Strategy aligned to macro trends For personal use only Population growth Decarbonisation Disrupted global Technology/digital / changing and sustainability supply chains acceleration demographics • Multi-origin strategy • Sustainability and • Resilient, end-to-end • Progressing digital innovation emb
Slide 10: Executing on strategy; strengthening our integrated supply chain
Executing on strategy; strengthening our integrated supply chain For personal use only Strengthen the core Targeted growth opportunities 9
Slide 11: Progress on strategic initiatives in 1H24 continues
Progress on strategic initiatives in 1H24 continues Focus on improving our business and investing for growth Strengthen the Core Targeted Growth Opportunities For personal use only Record oilseed crush Additional crush capacity assessment • 282kmt oilseed crush volumes largest delivered in a • Feasi
Slide 12: Feasibility study ongoing for new oilseed crush plant
Feasibility study ongoing for new oilseed crush plant Agri-energy remains a significant opportunity for Australian agriculture • APAC renewable fuels demand forecast to grow at 19% CAGR Federal Government Commitment to Net Zero through to 2050 to meet decarbonisation commitments For personal use onl
Slide 13: Acquisition of Performance Feeds and Nutrition Service Australia
Acquisition of Performance Feeds and Nutrition Service Australia Enhancing GrainCorp’s capabilities in Animal Nutrition • Closed acquisition of XF Australia1 on 2 April 2024; financial Cattle on feedlot as proportion of total cattle herd size is growing3 For personal use only contribution from 2H24
Slide 14: GrainCorp Ventures
GrainCorp Ventures Recently expanded portfolio of Digital and AgTech investments to include Peptobiotics Four key investment areas Our portfolio About First invested For personal use only Developed antimicrobial peptides for livestock, as an alternative to antibiotics. Analytics and optimisation Pep
Slide 15: FY24 outlook
FY24 outlook Challenging margin environment for FY24; positive conditions for 2024/25 winter plant Australian rainfall deciles - 3 months to 30 April 20241 • Previously announced FY24 guidance For personal use only – Underlying EBITDA of $250-280 million – Underlying NPAT of $60-80 million – Exclude
Slide 16: Significant operating leverage in large ECA crop years
Significant operating leverage in large ECA crop years Confidence in through-the-cycle average earnings as long-term crop production improves EBITDA ($m)1 10-year rolling average of Total ECA Winter Crop Production4 For personal use only 25 703 20 Average Underlying EBITDA FY20-24e (since UMG 565 15
Slide 17: Investment proposition
Investment proposition Conclusion For personal use only Positive long-term macroeconomic fundamentals Strong operational execution across our integrated network Increased through-the-cycle average EBITDA to $320m Continued assessment of growth opportunities Balance sheet with significant flexibility
Slide 18: GrainCorp Limited - Investor contact
For personal use only GrainCorp Limited Level 20, Tower 2, International Towers 200 Barangaroo Avenue Barangaroo NSW 2000 w: graincorp.com.au Investor contact Dan Jones - Investor Relations Manager m: 0484 341 492 e: dan.jones@graincorp.com.au 17