Ridley Corporation Limited · ASX:RIC

Ridley — Phillip Capital Agribusiness Conference 2013

15 slides from Ridley's conference presentation, Apr 11, 2013

  1. Slide 1: Agribusiness Conference

    Ridley RidleyCorporation Corporation For personal use only Agribusiness Conference 11 April 2013

  2. Slide 2: Introduction

    Introduction For personal use only 1 Ridley’s Strategy 2 World macro factors driving demand for animal proteins 3 Derived demand for poultry feed is strong 4 Dairy milk to feed price ratio at historic low levels but recovering 5 Rendered animal protein meals give Ridley greater exposure to Asian mar

  3. Slide 3: Ridley's Strategy

    Ridley’s Strategy For personal use only Strengthen Ridley’s position in AgriProducts by enabling it to pursue significant organic and inorganic growth opportunities post the sale of Cheetham Salt and through the progressive rezoning and sale of surplus land assets  Australia’s premier provider of n

  4. Slide 4: World macro factors driving demand for animal proteins

    World macro factors driving demand for animal proteins For personal use only Demographic factors increasing the demand for animal proteins, Agricultural production needs to especially in developing countries increase by 60% over the next 40 • Population years to meet the rising demand for • Urbanisa

  5. Slide 5: Food price increases but greater volatility

    For personal use only 50.0 70.0 90.0 110.0 130.0 150.0 170.0 190.0 210.0 230.0 1/1990 9/1990 5/1991 1/1992 9/1992 5/1993 1/1994 Oils Price Index 9/1994 Food Price Index Dairy Price Index Meat Price Index 5/1995 Cereals Price Index 1/1996 9/1996 5/1997 1/1998 9/1998 5/1999 1/2000 9/2000 5/2001 1/2002

  6. Slide 6: Asia a key driver of consumption, with China ~50% of this

    Asia a key driver of consumption, with China ~50% of this* For personal use only ). Real value of world agrifood consumption, by region, 2007 and 2050 (reference scenario) * Source: ABARES Global Food Production and Prices to 2050 6

  7. Slide 7: Derived demand fundamentals for poultry feed are strong

    Derived demand fundamentals for poultry feed are strong For personal use only * Source: Australian Chicken Meat Federation 7

  8. Slide 8: Australian retail price of chicken flat whilst others have risen

    Australian retail price of chicken flat whilst others have risen For personal use only * Source: Australian Chicken Meat Federation 8

  9. Slide 9: Australian milk production has fallen since 2002 but is forecast to increase

    Australian Milk production has fallen since 2002 but is forecast to steadily increase For personal use only World v Australian Milk Production (million litres) 1,000,000 14,000 World Milk Production 900,000 Australian Milk Production 12,000 800,000 700,000 10,000 600,000 8,000 500,000 6,000 400,000

  10. Slide 10: Australian milk production concentrated in Victoria

    Australian milk production is concentrated in Victoria which is where most of Ridley’s ruminant production is based For personal use only Australian Milk Production 12,000 Total NSW VIC QLD SA WA TAS 10,000 Milk Production (million litres) 8,000 6,000 4,000 2,000 0 FY02 FY03 FY04 FY05 FY06 FY07 FY08

  11. Slide 11: Dairy milk-to-feed price ratio has been at historic lows

    Dairy milk-to-feed price ratio has been at historic lows Milk price RAP feed cost Milk price: feed price For personal use only 46 1.5 44 1.4 42 Milk price (c/l) and feed cost (c/kg) 1.3 40 38 1.2 36 1.1 34 1.0 32 0.9 30 28 0.8 11

  12. Slide 12: Dairy prices recovering

    Dairy prices recovering For personal use only ... 12

  13. Slide 13: Rendering exposes Ridley to Asian growth potential

    Rendering exposes Ridley to Asian growth potential* Uses of Animal Protein Meals For personal use only Uses of Animal Fats Australian Australian Domestic Pet Food, 5% Domestic Domestic pet Aquaculture, biofuels, 3% acquaculture food, 5% Other, 0% 5% , 3% Domestic intensive animal, 7% Australian Dome

  14. Slide 14: Ridley's Recent History and Outlook

    Ridley’s Recent History and Outlook For personal use only Outlook FY2013  Full 12 months of Bartlett tuna meal business  Bartlett tuna meal acquisition in Aug 2012  Full 12 months of new dairy  New Dairy Mill completed Dec 2012 mill FY2012  Melbourne rendering acquisition  Full 12 months of co

  15. Slide 15: Conclusions

    Conclusions For personal use only  The outlook for the macro fundamentals remains strong  Dairy market fundamentals pointing towards an improvement in FY14, though farmers will be still recovering from a tumultuous year  Rendering growth gives good exposure to the growing Asian markets  Benefits

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