Slide 1: GrainCorp 2009 Half Year Results Briefing announcement
For personal use only Company announcement GrainCorp Limited ABN 60 057 186 035 Date: 18 May 2009 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com ANNOUNCEMENT Contents for immediate release: GRAINCORP 2009 HALF YEAR RESULTS BRIEFING Betty Ivanoff General Couns
Slide 2: GrainCorp 2009 Half Year Results Briefing
For personal use only 18 May 2009 GRAINCORP 2009 HALF YEAR RESULTS BRIEFING Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 1
Slide 3: Financial Results at 31 March 2009
Financial Results at 31 March 2009 For personal use only Revenue Up by $52 M Results HY08 HY09 $ million $ million EBITDA Up by $50 M Revenue 806 858 EBITDA 32 82 NPAT Up to $32 M Net profit / (loss) (6) 32 after Tax Free Cash flow 2 (34) 61 Gearing1 Down to 48% Key financial results show the transf
Slide 4: Transformation of GrainCorp
Transformation of GrainCorp For personal use only Commenced in 2006 with adoption of new strategic plan • $20 million of cost savings • Industry structural changes including removal of the bulk wheat export monopoly • New revenue from bulk wheat exports and rail services • Efficiencies from better r
Slide 5: Business Drivers at March 2009
Business Drivers at 31 March 2009 For personal use only Carry-in Up by 1.0 mmt HY08 HY09 mmt mmt Receivals Up by 4.2 mmt Grain carry-in 1.2 2.2 Grain receivals 4.6 8.8 Grain Exports Up by 1.4 mmt Domestic out load 2.0 2.3 Grain exports 0.5 1.9 Grain carry out 4.0 7.2 Return to average or above avera
Slide 6: Key Financial Indicators at March 2009
Key Financial Indicators at 31 March 2009 For personal use only EBITDA - $ M NPAT - $ M 80 60 40 30 40 82 20 32 20 10 0 0 -10 HY 05 HY 06 HY 07 HY 08 HY 09 HY 05 HY 06 HY 07 HY 08 HY 09 OPERATING CASH FLOW - $ M CAPEX - $ M 80 60 40 40 80 30 20 20 10 20 0 0 -20 HY 05 HY 06 HY 07 HY 08 HY 09 HY 05 HY
Slide 7: Earnings Bridge - HY08 to HY09
Earnings Bridge - HY08 to HY09 For personal use only 4.9 (14.3) 50.0 7.6 (14.3) 26.1 40.0 4.1 (1.4) 32.3 30.0 26.1 20.0 10.0 (6.5) 0.0 (8.0) Corporate Office & Allied Mills Equity H1 07/08 NPAT H1 08/09 NPAT Trading EBITDA Ports EBITDA Merchandise S&L EBITDA Income Tax Other EBIT Interest EBITDA Pro
Slide 8: Balance Sheet
Balance Sheet For personal use only Comments HY08 HY09 $ million $ million • Current borrowings largely Cash $45 $12 secured against inventory Inventories/Trade Debtors $640 $572 • Inventory and Trade Debtors Other current assets $74 $61 lower due to lower grain Non current assets $634 $636 prices T
Slide 9: Debt Profile
Debt Profile For personal use only • Debt structure 700 600 – Non current - $223 M 500 – Current - $351 M 400 • Non Current (core long term) 300 debt matures in 2011 200 • Current (Working Capital and 100 Inventory Funding) varies with 0 HY05 FY05 HY06 FY06 HY07 FY07 HY08 FY08 HY09 grain volumes / p
Slide 10: Business Unit Performance
For personal use only BUSINESS UNIT PERFORMANCE Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 9
Slide 11: Performance by Business Unit
Performance by Business Unit For personal use only Business Unit HY08 HY09 HY08 HY09 Revenue $ million 1 Revenue1 EBITDA EBITDA Storage & Logistics 65 159 15 41 Trading 2 683 636 18 22 Ports 24 40 3 30 Merchandise 3 33 22 2 (12) Allied Mills 4 - - 5 4 Corporate, Head Office and Other 5 1 1 (11) 6 (3
Slide 12: Storage and Logistics
Storage and Logistics For personal use only HY08 HY09 Grain Receivals - mmt Carry in 1.2 mmt 2.2 mmt 14.0 Revenue $65 M $159 M 12.0 10.0 EBITDA $15 M $41 M 8.0 6.0 EBIT $3 M $30 M 4.0 2.0 CAPEX $10 M $12 M 0.0 2005 2006 2007 2008 HY 09 • Half year receival total 8.8 mmt Business Drivers • YTD receiv
Slide 13: Ports
Ports For personal use only HY08 HY09 Grain Export Handled - mmt Revenue $24 M $40 M 3.0 EBITDA $3 M $30 M 2.5 2.0 EBIT $(2) M $24 M 1.5 CAPEX $2 M $3 M 1.0 0.5 • Better price signals for grain storage at 0.0 terminals HY 05 HY 06 HY 07 HY 08 HY 09 • Woodchip export demand reduced by fall in global
Slide 14: Trading
Trading For personal use only HY08 HY09 Revenue $683 M $636 M Profit Before Tax - $ M EBITDA $18 M $22 M 16.0 PBT $5 M $14 M 14.0 12.0 • Result demonstrates positive impact of 10.0 entry this year into bulk wheat export 8.0 market 6.0 • Hunter Grain soybean trading, systems 4.0 2.0 and process now i
Slide 15: Merchandise
Merchandise For personal use only HY08 HY09 Revenue $33 M $22 M EBITDA $2 M $(12) M • Record decline in price and demand for fertiliser and chemicals in late 2008 • 2009 / 10 cropping season indicates average consumption of inputs in Northern NSW and Queensland • Inventory write down to market value
Slide 16: Allied Mills
Allied Mills For personal use only HY08 HY09 EBITDA - $ M Revenue $248 M $275 M 25.0 EBITDA $20 M $18 M 20.0 Equity profit $5 M $4 M Net Asset 15.0 $186 M $201 M value CAPEX $19 M $7 M 10.0 • Margins reduced due to mill 5.0 commissioning and final Albury and Summer Hill shutdown transition 0.0 • Fro
Slide 17: GrainCorp Transformation
For personal use only GRAINCORP TRANSFORMATION Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 16
Slide 18: Transformation of GrainCorp
Transformation of GrainCorp For personal use only Commenced in 2006 with adoption of new strategic plan In the last 6 months • Significant internal restructure of business units and senior management to achieve clearer customer focus • Hunter Grain fully integrated into Trading • Successfully became
Slide 19: FY 2009 Outlook
For personal use only FY 2009 OUTLOOK Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 18
Slide 20: Outlook FY09
Outlook FY09 For personal use only Estimated receivals FY09 9.2 to 9.4 mmt Estimated exports handled FY09 > 4.0 mmt HY 09 NPAT $32.3 M FY 09 NPAT range $37 to $42 M Free cash flow range $65 to $70 M Dividend • No interim dividend declared • Full year dividend for FY09 will be considered by the Board
Slide 21: NPAT Forecast Sensitivity
NPAT Forecast Sensitivity For personal use only • Trading – Guidance assumes costs covered for remainder of year – Higher than normal market volatility may impact NPAT • Ports – 3.9 to 4.4 mmt grain shipments will deliver NPAT within guidance • Storage and Logistics – Receival of 9.2 to 9.4 mmt will
Slide 22: Appendix
For personal use only APPENDIX Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 21
Slide 23: Transformation - Trading Growth
Transformation - Trading Growth For personal use only • Removal of the bulk wheat export monopoly in July 2008 has created new revenue opportunities – Exporting wheat in bulk in own right – Accumulation of grain on behalf of exporters – Build on Supply Chain strength • Logistics service ‘packaging’
Slide 24: Transformation - Cultural Initiatives
Transformation - Cultural Initiatives For personal use only • Right People – Succession planning – Increase skills – Autonomy, accountability, empowerment • Right service – Supply chain solutions for customers – Local solutions • Right time – Post harvest of first year of deregulation – Customer nee
Slide 25: Transformation - Business Growth
Transformation - Business Growth For personal use only • Competitive supply chain and rail services for grain • Extend our grain supply chain to overseas customers • Become the partner of choice for the domestic stock feed market • Alignment of people, systems, processes to meet customer requirement
Slide 26: Six New Regions
Six New Regions For personal use only • Queensland • Northern NSW • Central NSW • Southern NSW • East Victoria • West Victoria Grain Storage | Supply Chain Logistics | Grain Trading |Port Terminals | Merchandise | Allied Mills 25
Slide 27: Business Overview
Business Overview For personal use only Storage and Logistics Rail Ports Trading Merchandise 20 MMT grain storage 8 mainline take- 7 bulk grain ports 2 - 3 mmt grain 27 operational capacity or-pay trains and 250 kt sites in Sth. Qld., soybean meal NSW, Vic. traded PA Business Unit Summary 280 operat
Slide 28: Disclaimer
Disclaimer For personal use only – This presentation includes both information that is historical in character and 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.