Slide 1: Ridley Corporation 2012 Results Presentation
RIDLEY CORPORATION 2012 RESULTS PRESENTATION INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK
Slide 2: Ridley Strong Finish to Year
RIDLEY STRONG FINISH TO YEAR INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK $19.3 million NPAT - strong finish to the year, particularly in poultry and rendering Strong cash conversion - operating cash flow of $51.9m after maintenance capex (FY11: $36.7m) Final Dividend - 3.75c per shar
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Consolidated result FY12 FY11 FY10 Group NPAT of $19.3m - in $m AgriProducts result of $27.2m, up $2.3m, with a full year Camilleri Sales Revenue 734.7 723.7 728.0 contribution EBIT - AgriProducts 27.2 24.9 29.0 Cheetha
Slide 4: Ridley AgriProducts Results Presentation
RIDLEY AGRIPRODUCTS RESULTS PRESENTATION INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK
Slide 5: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Overhead restructure - $1.0m of costs incurred in FY12 to deliver annualised savings of $1.8m Sale of Corowa mill and Wacol site - generated small profits, $7.9m proceeds, and liberated working capital Purchase of LNT and Monds &
Slide 6: Sector Analysis
SECTOR ANALYSIS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Sector FY12 FY11 * FY10* Outlook Poultry: 4% growth reflects market growth (kt) (kt) (kt) of chicken and other white meat consumption Poultry 933 900 764 Aqua-feed: lower biomass and feed volumes in all three sectors of salmon
Slide 7: Financial Summary
FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Agriproducts ($m) FY12 FY11 EBIT result of $27.2m - uplifted by full Sales ($) 637.4 616.4 year Camilleri earnings offset by reduction in Aqua-feeds EBIT 27.2 24.9 Working capital - $11.6m of working + Depreciation & amortis
Slide 8: Cheetham Salt Results Presentation
CHEETHAM SALT RESULTS PRESENTATION INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK
Slide 9: Highlights
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK EBIT result of $11.1m, down $2.6m on corresponding period (exc JVs). Factors affecting FY12 operating result: Higher salt costs from harvest delays and yield reductions from prior year weather events Bajool refinery - factors a
Slide 10: Sector Analysis
SECTOR ANALYSIS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Soda Ash - major customer had a slightly improved Sector FY12 FY11 Out- year, but below historical levels (kt) (kt) look Chemical reflects one more chlor-alkali bulk Soda Ash 541 529 shipment compared to last year (& next year
Slide 11: Financial Summary
FINANCIAL SUMMARY INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Cheetham (A$m) FY12 FY11 EBIT result before JV’s of $11.1m - down $3.1m on FY11 due to high salt Sales ($) 108.7 107.3 and supply chain costs EBIT (excl. JV NPAT) 11.1 14.2 Depreciation & amortisation 5.2 5.6 Working capital
Slide 12: Joint Ventures
JOINT VENTURES INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Cheetham Joint Ventures FY12 FY11 JVs disclosed in Income (JVs) in A$m Statement as equity EBITDA 10.9 11.1 accounted NPAT of $6.8m, 100% repatriated by way of Depreciation and amortisation (1.2) (0.8) dividends EBIT 9.7 10.3 Int
Slide 13: Consolidated Financials
INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK CONSOLIDATED FINANCIALS 13
Slide 14: Balance Sheet
BALANCE SHEET INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Balance Sheet in $m FY12 FY11 Working capital movements & P,P&E Total Current Assets 176.8 193.7 additions discussed on separate Total Current Liabilities 106.3 108.5 slides Current borrowings * 40.7 1.9 $4.4m of land & building
Slide 15: Cash Flow
CASH FLOW INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Cash flow in $m FY12 FY11 Strong EBITDA performance of $50.1m inc $6.8m JV NPAT EBITDA (inc JV NPAT’s) 50.1 54.1 dividends received Movement in working capital 14.8 (7.7) Positive $14.8m movement in Maintenance capex (13.0) (9.7) wo
Slide 16: Working Capital
WORKING CAPITAL INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Working Capital in $m FY12 FY11 Decrease in working capital of Cash 7.2 13.2 $14.8m (2011: increase $7.7m) Trade Debtors 80.9 85.9 Decrease in trade debtors of Other Debtors and prepayments 3.4 3.1 $5.0m through continued focu
Slide 17: Capital Expenditure
CAPITAL EXPENDITURE INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Items in $m Agri Salt FY12 FY11 New Pakenham mill construction well advanced at year end, with Other 1.6 1.0 2.6 3.4 commissioning targeted by end of 1H FY13 New Pakenham 8.0 - 8.0 - Achieved stated objective to keep Mill
Slide 18: Financial Ratios
FINANCIAL RATIOS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Financial KPI’s FY12 FY11 Slight reduction in gearing through $3.9m reduction in net Net Debt - in $m 98.2 102.1 debt down to $98.2m Equity - in $m 290.5 291.0 Strong debt servicing capacity net Gearing (Net Debt / Equity) 33
Slide 19: Outlook
OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Cheetham Salt divestment update Property realisation - value generation from surplus properties Feed business - improve operational performance Cheetham Salt - reduction in salt and freight costs through return to normal harvest c
Slide 20: Cheetham Salt Divestment
CHEETHAM SALT DIVESTMENT INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Cheetham Salt divestment: Stage 2 has commenced Select parties undertaking due diligence No decision until binding offers received To proceed to sale execution will require an offer that recognises the strong fund
Slide 21: Property Realisation
PROPERTY REALISATION INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Objective to generate shareholder value through realisation of opportunities for surplus properties Dandenong mill held for sale - potential residential development opportunity in heart of fast growing region Former salt
Slide 22: Lara & Moolap
LARA & MOOLAP INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK AVALON AIRSTRIP Lara site 912 hectare Saltat Lara - preliminary Avalon Fields planning and investigations completed Airport Melbourne Redevelopment potential for industrial ~60km and airport-related uses 912ha site adjacent to A
Slide 23: Feed Business
FEED BUSINESS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Improving performance of feed business: Supplements restructure - closure and sale of Wacol operation & site, acquisition of LNT, consolidation to Townsville, full year round product offering Monds & Affleck acquisition - entry
Slide 24: Salt Business
SALT BUSINESS INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Improving performance of salt business: Salt cost reduction - current unusually high salt costs to average down through progressive sales and return to more traditional harvest cycles, supported by above-expectation results of rec
Slide 25: Business Growth
BUSINESS GROWTH INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Business growth activity: Rendering capacity expansion - major capital project underway at Camilleri to increase production capacity Acquisition of tuna meal supply stream - recent purchase of Pacific Island business to augmen
Slide 26: Conclusion
CONCLUSION INTRODUCTION AGRIPRODUCTS CHEETHAM FINANCIALS OUTLOOK Aim is to continually and actively enhance the business to maximise long term shareholder value Improvement in results for FY13 Expect to provide trading update with release of half year results 26
Slide 27: Ridley Corporation A compelling proposition
Ridley Corporation A compelling proposition