Ridley Corporation Limited · ASX:RIC

Ridley — FY2014 Earnings Presentation

41 slides from Ridley's earnings presentation, August 2014

1. Slide 1: Ridley Corporation Limited Investor Presentation 2014 Financial Year

   RIDLEY CORPORATION LIMITED INVESTOR PRESENTATION 2014 FINANCIAL YEAR Australia’s leading producer of premium quality, high performance animal nutrition solutions

2. Slide 2: Financial Highlights

   FINANCIAL HIGHLIGHTS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  AgriProducts result of $40.1m, Consolidated result FY14 FY13 FY12 FY11 up $12.0m on prior year and - in $m including a full 12 months of Laverton rendering EBIT - AgriProducts 40.1 28.1 27.2 24.9  Multi-year investment in nutrit

3. Slide 3: Financial Highlights

   FINANCIAL HIGHLIGHTS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Consolidated result  Net profit after tax of $17.6m FY14 FY13 FY12 FY11 - in $m for restructured business with low gearing and capacity for Operating result 28.9 23.9 23.2 22.1 growth  Net finance expenses reflects Net Finance Ex

4. Slide 4: Corporate

   CORPORATE RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Corporate costs - $8.6m of head office costs reflects the change in business model and increased investment in project management and IT systems to extract incremental value from operations  Finance costs - reflect lower levels of debt (pr

5. Slide 5: Financial Highlights

   FINANCIAL HIGHLIGHTS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  EBIT result for agribusiness of $40.1m - up $12.0m with full year contribution from Laverton rendering business (FY13: 6 months)  Poultry – long-term take or pay contract boosted volume and plant utilisation in a sector of susta

6. Slide 6: Safety

   SAFETY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK 25 Injury Frequency Rates: 3 year LTIFR & TRFR history and trend LTIFR: Lost Time Injury Frequency LTIFR 20 Rate – number of injuries TRFR incurring lost time per million hours worked Linear (LTIFR) 15 TRFR: Number of medical Linear (TRFR) treat

7. Slide 7: Strategic site acquisition

   Strategic site acquisition RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Details  Strategic parcel of land acquired on 7 August 2014  5.3 hectares on north east outskirts of Geelong (“NE Geelong”)  Logistics - frontage to the Princes Highway, providing easy access to:  Highways to key grain gr

8. Slide 8: Strategic site acquisition

   Strategic site acquisition RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Location  Strategy - first step in mill modernisation and expansion program announced last year  Customer Focus - anticipates long-term (pig & poultry – “monogastric”) customer growth and feed requirement west of Melbourne

9. Slide 9: Strategic site acquisition

   Strategic site acquisition RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Location Golden Plains Food Production Precinct at Lethbridge – 4,000 Ha designated for intensive farming and livestock New Site acquired on 7 Aug 2014 9

10. Slide 10: Strategic site acquisition

    Strategic site acquisition RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Aerial view Title #1 1105 Princes Highway Viterra soybean shed Title #2 30 Old Melbourne Road (truck parking) Princes Highway 10

11. Slide 11: Property – Dry Creek

    PROPERTY – DRY CREEK RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Salt production - salt operating segment ceased on 1 July 2013 & all FY14 Dry Creek activity reported in Property segment  Earnings - $0.4m current period net loss (after land sales) incurred to maintain the site pending closure

12. Slide 12: Property – Other

    PROPERTY – OTHER RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Major coastal sites at Moolap (near Geelong):  Proposal submitted to State Government to secure land tenure and rezoning approvals  Environmental Effects Statement commenced in 2H FY14  Development partner with strong track record

13. Slide 13: Moolap - Concept Layout

    MOOLAP - CONCEPT LAYOUT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK N LaraSanctuary Salt Living selected as Avalon Fields development partner with Airport vision to revitalise Moolap and Geelong Avalon air strip CORIO BAY PORT OF GEELONG Geelong CBD <3km 13 138 17

14. Slide 14: Consolidated Financials

    RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK CONSOLIDATED FINANCIALS 14

15. Slide 15: Balance Sheet - Assets

    BALANCE SHEET - ASSETS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Balance Sheet June June  Assets held for sale at 30 - in $m 2014 2013 June of $1.4m - former mills at Dalby and Dandenong; Dalby sale Assets held for sale 1.4 0.7 settled on 11 August 2014 Other Current Assets 180.1 169.6  Othe

16. Slide 16: Balance Sheet - Liabilities

    BALANCE SHEET - LIABILITIES RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Balance Sheet June June  Payables - decrease reflects - in $m 2014 2013 $23.1m capital return paid in July 2013 & fully accrued last year Current payables 129.4 152.6  Tax - tax payable on current year Current provisions 1

17. Slide 17: Cash Flow

    CASH FLOW RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Consolidated Cash flow in $m FY14 FY13  Strong EBITDA performance of core business (FY13 includes 8 months of Consolidated EBITDA 41.0 39.2 Cheetham Salt) Movement in working capital (5.5) 26.4  Negative movement in working Maintenance cape

18. Slide 18: Financial Summary

    FINANCIAL SUMMARY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Consolidated excluding Property & Salt segments FY14 FY13 FY12 FY11 FY10 in $m RAP EBIT 40.1 28.1 27.2 24.9 29.0 Corp EBIT (8.6) (5.7) (6.7) (5.5) (6.8) RAP + Corp EBIT (excl. Cheetham Salt & Property) 31.5 22.4 20.5 19.4 22.2 Consoli

19. Slide 19: Outlook - Dividends

    OUTLOOK - DIVIDENDS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Final dividend - Ridley Board will consider final dividend in October 2014 based on retained profits, forecast earnings, cash flow conversion, availability of franking credits, and capital requirements at that time  Interim - Rid

20. Slide 20: Outlook - Operations

    OUTLOOK - OPERATIONS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Poultry - positive outlook based on compounding year on year growth in poultry demand  Dairy - FY14 recovery to continue through FY15 with current milk pricing and outlook for grain prices set to maintain positive milk:feed rati

21. Slide 21: Outlook - Strategy

    OUTLOOK - STRATEGY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Strategic land acquisition - continue discussions with Government, key customers and suppliers to optimise development opportunity at new site acquired post year end on north east outskirts of Geelong  Western VIC - consolidate No

22. Slide 22: Outlook - Strategy

    OUTLOOK - STRATEGY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Rendering - focus on moving up the value chain:  Secure adjacent land and restructure Laverton site traffic management  Commence plant investigations to extract high protein concentrates from fish offal - $1m investment in FY14 t

23. Slide 23: Outlook - Property

    OUTLOOK - PROPERTY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Complete Expressions of Interest to test the market appetite to acquire Lara and Dry Creek sites  Secure the land tenure required for Moolap development and work with partner and regulatory bodies towards formal rezoning event at

24. Slide 24: Outlook - Regional Growth

    A lift OUTLOOK - Rin Australian EGIONAL livestock production will GROWTH support local population growth & regional RIDLEY AGRIPRODUCTS demand...FINANCIALS PROPERTY OUTLOOK • Dairy In 2012-13, Australian farms produced:- • Beef • $13.2 bn of livestock (for meat) • Animal meals and fats • $6.9 bn of

25. Slide 25: Outlook – Ridley Investment

    OUTLOOK – RIDLEY INVESTMENT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Ridley Sector Local or Species Position Growth Global?* in Sector Potential Salmon – Ridley well Local Aqua Strong (#2) High Attractive positioned Prawn – Global blend of in key local and growth Dairy Strong (#1) High Global

26. Slide 26: Outlook – Ridley Investment

    OUTLOOK - RIDLEY INVESTMENT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Ridley well positioned for long term growth in the agribusiness feed sector:  strong balance sheet  bank facility rolled over for a further five years  long term history of cash conversion  independent of harvest volum

27. Slide 27: Contact Details

    CONTACT DETAILS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Tim Hart Managing Director and Chief Executive Officer Ridley Corporation Limited Tel +61 3 8624 6500 ABN 33 006 708 765 Fax +61 3 8624 6514 Level 4, 565 Bourke Street Mobile +61 404 480 542 Melbourne, VIC 3000 Web www.ridley.com.au Aus

28. Slide 28: Appendices

    RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK APPENDICES 28

29. Slide 29: Corporate Snapshot

    CORPORATE SNAPSHOT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Corporate focus: Australia’s leading supplier of premium quality, high performance animal nutrition solutions ASX – as at 15 August RIC 2014 Share price $0.82 Shares on issue 307.8m Market cap. $252m 52 week range $0.715 – $0.945 Num

30. Slide 30: Sector History

    SECTOR HISTORY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Sector FY14 FY13 FY12 FY11 FY10 Outlook (kt) (kt) (kt) (kt) (kt) Poultry 1,019 872 933 900 764 Aqua-feed 50 42 47 50 47 Packaged 90 90 85 84 90 Dairy 275 251 260 236 215 Pig 178 184 197 224 325 Supplements 21 22 22 22 30 Beef & Sheep 58

31. Slide 31: Brands & Customers

    BRANDS & CUSTOMERS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Brand Overview Customers / market position Barastoc offers a range of pellets, meals, concentrates and premixes specifically for- Bulk customers range from the small independ- mulated to meet the nutritional requirements of dairy cat

32. Slide 32: Locations & Sectors

    LOCATIONS & SECTORS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK 32

33. Slide 33: Rendering

    RENDERING RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Key component of sustainable agriculture  One third to one half of every animal produced in Australia for meat, milk, egg & fibre food products is not consumed by humans  Process by which low economic value matter from meat & food process

34. Slide 34: Growth Opportunities

    GROWTH OPPORTUNITIES RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Capture market share with Long term, cost effective, customer value proposition & surety of highest quality innovative protein sources to supply to provide solutions extend the superior product, for customer expansion safety & serv

35. Slide 35: Dry Creek

    DRY CREEK RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  316.1 Ha in prime location with proximity to Adelaide CBD, included within SA Government’s 30 Year Plan  Lease surrender achieved in the year which enabled sale on 30 June 2014 of coastal strip north of the former saltfield  Delays experi

36. Slide 36: Dry Creek

    DRY CREEK RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Lara Salt Development Avalon of the Dry Creek site is N Fields consistent withAirport Government’s 30 year plan for Adelaide. Ridley is working with all stakeholders to establish a pathway to address the outstanding Former salt condensing iss

37. Slide 37: Lara & Moolap

    LARA & MOOLAP RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK AVALON AIRSTRIP Larasite  912 hectare Salt at Lara - preliminary Avalon Fields planning and investigations completed Airport  Lara redevelopment potential for industrial Melbourne and airport-related uses ~60km 912ha site adjacent to Av

38. Slide 38: Moolap

    MOOLAP INTRODUCTION AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK Partner contracted for theAIRSTRIP AVALON Lara Salt Avalon project. Port Henry smelter redevelopment Fields Airportland tenure, Process to secure Melbourne rezoning and redevelopment ~60km approvals continues 912ha site adjacent to Avalon

39. Slide 39: Outlook - Risks

    OUTLOOK - RISKS RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Cyclical fluctuations - diversified portfolio spreads the individual sector risk  Influence of domestic harvest - management of raw material price fluctuations through procurement practices and customer ownership of raw materials  I

40. Slide 40: Outlook - Strategy

    OUTLOOK - STRATEGY RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Business Focus - being Australia’s leading producer of Premium Quality, High Performance Animal Nutrition Solutions  Strategy - six platforms for delivery:  Safety  Our People  Customer Focus  Operational Excellence  Communit

41. Slide 41: Outlook - Ridley Investment

    OUTLOOK - RIDLEY INVESTMENT RIDLEY AGRIPRODUCTS PROPERTY FINANCIALS OUTLOOK  Organic growth through rising populations, land constraints, demand for protein and heightened concerns for food security #  Further sector consolidation opportunities  Risk mitigation through sector diversification  Si

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