Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — 7th Annual Austock 'Sustainable Productivity' Conference 2010
20 slides from Graincorp Limited Class A's conference presentation, Mar 11, 2010
Slide 1: GrainCorp presentation to the 7th Annual Austock Conference
For personal use only Company announcement GrainCorp Limited ABN 60 057 186 035 Date: Thursday, 11 March 2010 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com PUBLIC ANNOUNCEMENT GRAINCORP PRESENTATION TO THE 7th ANNUAL AUSTOCK CONFERENCE Betty Ivanoff General
Slide 2: 7th Annual Austock 'Sustainable Productivity' Conference
For personal use only Ian Wilton - Interim CEO 7TH ANNUAL AUSTOCK ‘SUSTAINABLE PRODUCTIVITY’ CONFERENCE 11TH MARCH 2010 Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 1
Slide 3: Today's presentation
Today's presentation... For personal use only Covering... • GrainCorp’s strategic responses to market changes not covered in the 3rd February 2010 investor day presentations • And an outline of how GrainCorp is... • Changing the way we interact with growers and buyers • Determined to become an ‘easi
Slide 4: Our Business
For personal use only OUR BUSINESS Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 3
Slide 5: We are more than just a 'bulk handler'
We are more than just a ‘bulk handler’... For personal use only We offer a range of sophisticated grain accumulation, storage, transport and quality management services that reduce supply and transaction risks for growers, buyers and grain consumers We use our assets, knowledge and experience of...
Slide 6: Our Evolving Company
For personal use only OUR EVOLVING COMPANY Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 5
Slide 7: 2009 - A year of evolution
2009 - A year of evolution... For personal use only • Raised $198 million... • Reduced underlying gearing from over 50% to 17% • Raised $600 million and used a $200 million debt facility... • To acquire United Malt Holdings for $757 million... • Diversified our earnings potential... • FY 10 10 ½ mon
Slide 8: Responding to Market Challenges
For personal use only RESPONDING TO MARKET CHALLENGES Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 7
Slide 9: Our aim is to...
Our aim is to... For personal use only Become the first choice for supplying, storing and handling grain in eastern Australia... But how do we achieve this? Focus on better delivery of GrainCorp’s diverse range of services to growers, buyers and domestic and export customers Become a company tha
Slide 10: Responses to rapidly changing markets
Responses to rapidly changing markets... For personal use only To compete more effectively, GrainCorp has 6 focus points... 1. Simplify our service delivery 2. Demonstrate more clearly GrainCorp’s grower / buyer value proposition 3. Build on current bulk grain export market share 4. Continue to dive
Slide 11: Simpler service delivery
1 – Simpler service delivery... For personal use only Warehousing Cash prices Pools Contracts Warehouse Cash Flow Bulk and Container CLEAR Rail and Road transport Port elevation Quality testing exports • We offer many sophisticated services to buyers and growers...but our service delivery is a legac
Slide 12: Clearer value proposition
2 – Clearer value proposition... For personal use only • The services we offer potentially add a lot of value to our grower and buyer customers... • But we need to more clearly demonstrate our value proposition • At GrainCorp sites, our customers can access... Grain accumulation services Transpo
Slide 13: For example...
For example... For personal use only • With on-farm storage - all risk for grain quality and produce loss rests with the grower / buyer • GrainCorp guarantees out-turn of quality and quantity • This means that growers and buyers using our network only have to manage their own price risk – not qualit
Slide 14: Build on bulk export sales success
3 - Build on bulk export sales success... For personal use only • Our value proposition for export customers... • Supply certainty • Backed by our infrastructure assets • Grain quality, and timely and reliable service • Backed by our storage and handling expertise • Our market share grew rapidly to
Slide 15: Diversify ports earnings
4 - Diversify ports earnings... For personal use only GrainCorp has achieved targeted $5 m PA extra non-grain EBITDA • To further increase non-grain EBITDA we are... • Investing ~$9 million to increase woodchip tonnage capacity at Portland • By mid 2010, handling additional woodchip related products
Slide 16: Compete more effectively
5 - Compete more effectively... For personal use only • We have equalised port rail and road intake fees at Geelong and Portland to attract more ex-farm grain during and after harvest • Aligned receival fees at all ports for grain accumulated from non-GrainCorp storages and ex-farm • Simplifies fee
Slide 17: Create more pathways to market
6 - Create more pathways to market... For personal use only • Growth in container exports to around 2 mmt PA is sustainable... but has been at the expense of bulk exports • Strategic response... Expand containerisation capacity in NSW with a new facility at Cooks River in Sydney • ~$11 million inves
Slide 18: Summary
For personal use only SUMMARY Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 17
Slide 19: In summary...
In summary... For personal use only GrainCorp’s current business focus is... Integration of the malt business Better delivery of GrainCorp’s diverse range of services to growers, buyers and domestic and export customers Become a company that is easier to do business with Develop and offer ne
Slide 20: Thank you
For personal use only THANK YOU Grain Storage and Logistics | Grain Trading | GrainCorp Malt | Allied Mills 19
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