Slide 1: Company announcement
Company announcement For personal use only GrainCorp Limited ABN 60 057 186 035 Date: 19 November 2008 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com PUBLIC ANNOUNCEMENT Contents for immediate release: Please find attached the GrainCorp Limited 2008 Financial
Slide 2: Full Year Financial Results Presentation
GrainCorp Full Year Financial Results Presentation For personal use only 19 November 2008 1
Slide 3: GrainCorp Vision and Strategy
GrainCorp Vision and Strategy For personal use only • Our Vision is to be Australasia’s leading handler and supplier of agriproducts and bulk products • We will focus on capturing value through – The implementation of a range of supply chain initiatives – Business and process improvements 2
Slide 4: FY Year In Review
FY 08 ‐ Year In Review For personal use only • Global – Record grain prices and volatile credit markets • Australia – Record summer crop harvest and poor winter crop harvest – Second consecutive year of drought in eastern states • Company – Record grain prices led to higher inventory funding costs –
Slide 5: FY Results
FY 08 ‐ Results For personal use only FY 07 FY 08 Comment million million Business Drivers Grain carry‐in 4.9 MT 1.2 MT Drought impact = lower receivals from 2006/07 Grain receivals 3.0 MT 6.5 MT Record sorghum harvest ‐ 2.1MMT. Grower receivals 5.8 MMT. Grain exports 1.0 MT 0.8 MT Drought reducing
Slide 6: FY Business Units
FY 08 ‐ Business Units For personal use only Business Unit FY07 FY07 FY08 FY08 Movement $ million Revenue EBITDA Revenue EBITDA EBITDA % Storage & 159.4 12.8 186.5 21.6 68.8% Logistics Port 43.9 5.7 51.8 10.5 84.2% Terminals Marketing & 605.9 24.1 1,291.2 28.4 17.8% Hunter Grain4 Merchandising 56.8
Slide 7: FY08 NPAT Bridge
For personal use only 0.0 4.0 $m (8.0) (4.0) (20.0) (16.0) (12.0) FY07 (19.8) 8.8 S&L EBITDA Ports EBITDA 4.8 Marketing 4.3 EBITDA FY 08 ‐ NPAT Bridge Merchandise & 5.5 Other EBITDA Corporate (0.9) Office EBITDA Net Profit After Tax Allied Mills (3.1) Equity Profit FY 2006/07 to FY 2007/08 Interest
Slide 8: FY Balance Sheet
FY 08 ‐ Balance Sheet For personal use only FY07 FY08 Comments $ million $ million Inventories/Trade Debtors 309.1 381.0 Inclusion of Hunter Grain Other current assets 205.1 78.9 Commodity purchase and sales contracts reduced Non current assets 624.6 638.4 Total assets 1,138.8 1,098.3 Current borrow
Slide 9: Operating Cash Flow and CAPEX
Operating Cash Flow and CAPEX For personal use only – Impact of two successive droughts visible – Operating cashflow at 30 September 2008 was $(15.9)M Operating & Capex Cashflows 2004‐2008 $m 80 60 40 20 0 2004 2005 2006 2007 2008 (20) (40) Operating CF HY Operating CF FY Capex CF FY FY 08 CAPEX inc
Slide 10: Long Term Funding Facilities - Status
Long Term Funding Facilities ‐ Status For personal use only • Term debt – Facility of $223 M fully utilised – Maturity 2011 • Key banking relationships – Rabobank – ANZ – NAB • Term debt is unsecured, with standard bank covenants 9
Slide 11: Seasonal Funding Facilities - Status
Seasonal Funding Facilities ‐ Status For personal use only • Current short term debt – Working capital facility $218 M – Current harvest facility $180 M • Rollover short term debt – Additional facility added – Credit approval from the 3 banks – Final stage of documentation – Grain specific up to $50
Slide 12: FY08 Inventory and short term debt
FY08 – Inventory and short term debt For personal use only • Higher short‐term debt at full year 08 – Inclusion of Hunter Grain reflected in higher debt and inventory Short‐term Debt, Inventory & Grain Price 2005‐2008 $495/t $M 500 $425/t $358/t 400 $289/t $277/t 300 $183/t $191/t $184/t 200 100 0 H
Slide 13: FY Allied Mills Highlights
FY 08 ‐ Allied Mills For personal use only • Highlights – 50% share of the Australian human consumption flour market – New $97 M ‘state of the art’ wheat and maize flour mill at Picton with 200 KT PA grain processing capacity • Commercial operations to commence late November 08 • Decommissioning 120
Slide 14: FY Allied Mills Results
FY 08 Allied Mills Results For personal use only Profit FY08 Balance FY08 & Loss $ million Sheet $ million Revenue 527.0 Current assets 190.0 EBITDA * 42.2 Non current assets 237.3 Depreciation (8.8) Total assets 427.3 Interest (external) (6.2) Other liabilities 175.1 Interest (shareholders) (3.0) E
Slide 15: Removal of Bulk Wheat Export Monopoly
Removal of Bulk Wheat Export Monopoly For personal use only • A new grain export desk has been created – Head of export trading commenced November 08 – Also responsible for developing export of other grains • The domestic cash trading desk has been restructured – Head trader appointed – Reduced posi
Slide 16: Removal of Bulk Wheat Export Monopoly
Removal of Bulk Wheat Export Monopoly For personal use only • Development of the following revenue streams – Exporting wheat in bulk – Accumulation of grain on behalf of exporters – FIS and FOB – Export alliances – e.g. CHS Inc. durum and wheat – Supply chain service ‘packaging’ – silo to port – Rai
Slide 17: FY09 Business Unit Strategy
FY09 – Business Unit Strategy For personal use only Storage and Logistics • Operate competitive, integrated export and domestic supply chain • Increasing business of storage based solutions for growers • Supply chain management implementation Port Terminals • Export grain – New shipping protocols •
Slide 18: FY09 Business Unit Strategy
FY09 – Business Unit Strategy For personal use only Marketing • Secure significant share of bulk wheat exports in own right via export alliances • Grain accumulation (FIS & FOB) and grain logistics services for other exporters and domestic customers – ROCE target 15%, underpins ToP trains and access
Slide 19: FY09 Business Unit Strategy
FY09 – Business Unit Strategy For personal use only Hunter Grain • Protect and grow soymeal market position – Grow NZ market share for soymeal • Multi‐origin soymeal supply chain Allied Mills • Secure benefits from Picton Mill from 2H FY09 – Increased flour capacity to service Sydney and export mark
Slide 20: FY 08/09 Corporate Initiatives
FY 08/09 – Corporate Initiatives For personal use only • Highlights – New organisation structure July 2008 • New business unit ‘Ports and New Business’ • Storage and Handling became Storage and Logistics following incorporation of AG Haul • New road and rail supply chain management team • Close of 3
Slide 21: Seasonal Conditions
Seasonal Conditions For personal use only – Good 08 harvest prospects Qld., north and central NSW – Poor 08 harvest conditions southern NSW and Victoria – Overall below ‘average’ eastern states crop production Eastern Australia grain cropping area and production 20 Million Tonnes 10 Million Hectares
Slide 22: GrainCorp Financial Outlook
GrainCorp Financial Outlook FY 09 For personal use only • Receival forecast 7.5 – 10 MMT • Winter crop received to date – 3.5 MMT • Good prospects for 09 sorghum crop Nth NSW & Qld. • Return to profitability • No guidance on the FY 09 NPAT until harvest is further advanced 21
Slide 23: Forward Looking Statements
Forward Looking Statements 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 re