Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — UBS Emerging Companies Conference Series: Food & Agribusiness 2016
19 slides from Graincorp Limited Class A's conference presentation, Nov 29, 2016
Slide 1: ASX cover letter: UBS Emerging Companies Conference
29 November 2016 The Manager For personal use only Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 GRAINCORP LIMITED: GNC UBS Emerging Companies Conference Series: Food & Agribusiness Please find attached a presentation being delivered by GrainCorp Managing Director & CEO,
Slide 2: UBS Food & Agribusiness Conference
UBS Food & Agribusiness Conference 30 November 2016 Mark Palmquist, Managing Director & CEO For personal use only
Slide 3: 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. T
Slide 4: Agenda
For personal use only Agenda: • 2016 financial results – summary • Global themes and industry trends • Grains businesses • GrainCorp Oils • GrainCorp Malt 3
Slide 5: 2016 financial results: Solid result in challenging year
2016 financial results: Solid result in challenging year For personal use only UNDERLYING EBITDA(1) ($M) UNDERLYING NPAT(1) ($M) Malt Oils Allied Mills (NPAT) Marketing (EBITDA) S&L 414 Fiscal 2H 395 Fiscal 1H 205 350 172 175 293 83 256 66 235 84 212 160 95 80 34 63 34 27 122 53 109 45 31 88 21 10 5
Slide 6: Global themes and industry trends in agribusiness and food
Global themes and industry trends in agribusiness and food For personal use only Global themes Global commodity markets operating in disinflationary pricing environment Access to supply and food security Increasing demand for food quality and transparency Fragmenting of mass markets to better meet n
Slide 7: Grains businesses
For personal use only Grains businesses
Slide 8: Disinflationary pricing environment
Disinflationary pricing environment For personal use only CHICAGO BOARD OF TRADE – WHEAT CRUDE OIL (USD/BARREL) (USD/MT) 1000 120 900 100 800 80 700 60 600 40 500 400 20 300 0 Jul/2012 Jul/2013 Jul/2014 Jul/2015 Jul/2016 Jan/2013 Jan/2014 Jan/2015 Jan/2016 INDEXED EXCHANGE RATES (V USD) BALTIC DRY I
Slide 9: Strengthening and shaping our grain supply chain
Strengthening and shaping our grain supply chain Network Scale For personal use only Capability Business value Customer value • 175 country silos • Scale economies • Manage variability Primary Silo • 7 port terminals • Geographic • Access to grain Port Terminal coverage • 3 box packers Container Pac
Slide 10: Broadening our grain origination
Broadening our grain origination For personal use only Europe Canada • Diversified sourcing of barley and wheat • Joint venture with Zen-Noh • Increasing exposure to SE Asian customers WA & SA • Increasing origination and exports • Enhanced service offering to existing customers 9
Slide 11: Expanding our origination in Canada
Expanding our origination in Canada For personal use only • A 50/50 joint venture between GrainCorp and Zen-Noh Grain Corporation (USA). • Will expand each JV partner’s grain origination footprint in Canada and enable multi-origin service offering to existing and new customers in Asia and MENA • CAD
Slide 12: GrainCorp Oils
For personal use only GrainCorp Oils
Slide 13: Growing consumption of oils in Asia
Growing consumption of oils in Asia For personal use only Increasing demand for oils – growing middle class and larger focus on health CANOLA OIL CONSUMPTION INFANT FORMULA CONSUMPTION (KMT) – ASIA(1) (KMT) – ASIA(2) 12,000 3,000 10,000 2,500 8,000 2,000 6,000 1,500 4,000 1,000 2,000 500 0 0 Austral
Slide 14: Optimising our edible oils network
Optimising our edible oils network For personal use only OILSEEDS CRUSHING/REFINING, FOODS PACKING/REFINING, WEST NUMURKAH, VIC FOOTSCRAY, VIC • $125 million investment to strengthen Australian edible oils manufacturing operations • Allows greater integration of operations - located close to oilseed
Slide 15: GrainCorp Malt
For personal use only GrainCorp Malt
Slide 16: Growth of craft beer
Growth of craft beer For personal use only TOTAL BEER CONSUMPTION US BEER CONSUMPTION BY REGION (‘000 HL) (‘000 HL) 2,500,000 250,000 20% 245,000 2,000,000 16% 240,000 1,500,000 12% 235,000 230,000 1,000,000 8% 225,000 500,000 4% 220,000 215,000 0% 2010 2012 2014 2016F 2018F 2020F 2010 2011 2012 201
Slide 17: Expanding our malting capacity
Expanding our malting capacity For personal use only Opportunity • Increasing production capacity at GrainCorp’s malting plant in Pocatello, Idaho by 120kmt (total plant capacity 220kmt after expansion) • Scheduled for completion in mid 2017 Rationale • Reliable barley production region • Low cost s
Slide 18: Expanding our craft distribution
Expanding our craft distribution For personal use only • Existing warehouses: • Vancouver, WA • San Franscisco, CA • Calgary, AB • Denver, CO • Chicago, IL • Hickory, NC • Champlain, NY • New warehouses (FY16): • Vancouver, BC • San Diego, CA • Dallas, TX • Toronto, ON • Warehouses around North Amer
Slide 19: Questions
For personal use only Questions
GrainCorp — UBS Emerging Companies Conference Series: Food & Agribusiness 2016 on 6ix