Slide 1: CEO Presentation to Sustainable Productivity Conference
ASX Release – ASX: RIC For personal use only RIDLEY CORPORATION LIMITED CEO PRESENTATION TO SUSTAINABLE PRODUCTIVITY CONFERENCE 11th March 2010
Slide 2: Sustainable Productivity Conference
RIDLEY CORPORATION For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST SUSTAINABLE PRODUCTIVITY CONFERENCE 11th March 2010
Slide 3: Introduction: Ridley Corporation Limited overview
RIDLEY CORPORATION For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Ridley Corporation Limited (RIC) is: a processor off value-added l dd d agricultural i lt l products Australia’s A t li ’ llargestt processor off stockfeed t kf d products (Ridley Agrip
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST FY10 NPAT guidance of $29m (+/- Profit & Loss FY09a FY10f $1.0m) up by 125% from FY09 EBIT - Agriproducts 24.4 28.0 Agriproducts EBIT up 14.8% EBIT - Cheetham 12.9 18.0 Cheetham EBI
Slide 5: Ridley Transformed 2008-2010
RIDLEY TRANSFORMED 2008-2010 For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Sale of Ridley Inc - clean, lowly geared balance sheet Cheetham capital upgrades nearing completion – uplift in earnings in FY11 and FY12 Ridley Agriproducts growing from re
Slide 6: Financial Transformation
FINANCIAL TRANSFORMATION For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Sale Post Includes Ridley y Inc. Ridley Inc. Inc FY05 FY06 FY07 FY08 FY09 # FY10f ROFE ((%)) 10.0% 8.2% 6.7% 3.2% 4.7% 9.2 – 9.8% EBITDA ($m) 72.9 81.5 74.4 48.3 41.3 54 - 59 NPAT to
Slide 7: Agriproducts Overview
OVERVIEW For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Market ~12mt of animal feed consumed annually in Australia ~6mt freely traded and the other 50% oowned ned bby integrators integrators, feedlots etc Ridley has ~1.5mt (25%) of the freely traded
Slide 8: Agriproducts Overview: Segment Volumes
OVERVIEW For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Aqua 3% Segment 1H ∆ 1H Supp's 3% Packaged 6% (kt) FY09 FY10 Poultry 354 371 Other 4% Aqua 16 24 Beef & Sheep 2% P k Packaged d 59 48 Dairy 166 110 Dairy 14% Poultry 47% Pig 167 163 Supplements 13 21
Slide 9: Competitive Position
COMPETITIVE POSITION For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Competitive Advantages 9 Southern and Eastern Australia spread of assets, meaning larger national customers can deal with one supplier 9 Lower L volatility l tilit th through h sector t d
Slide 10: Growth Prospects
GROWTH PROSPECTS For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Growing poultry market 9 Increasing consumer preference for fresh white meat products 9 Increasing Ridley market penetration supported by long term contracts – e.g I h Inghams 4 year contract
Slide 11: Cheetham Overview
OVERVIEW For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Cheetham owns: 11 solar salt fields with combined production capacity of ~1.4mt 5 refineries (one in Indonesia) including a flake salt plant ~70% domestic market share Joint Venture interests:
Slide 12: Cheetham Overview: Segment Tonnes
OVERVIEW For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Segment- Tonnes 1H FY09 ∆ 1H FY10 Indonesia 5% Other 2% Soda Ash 289k 290k Export 10% Chemical 85k 90k Food 49k 50k Stockfeed 4% Pool 36k 38k Hide 36k 30k Hide 5% Soda Ash 46% Stockfeed 23k 26k Expor
Slide 13: Competitive Position
COMPETITIVE POSITION For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Competitive Advantages 9 Irreplaceable salt field assets a barrier to entry 9 Market share, price leader and sector diversification 9 Majority of the business secured with long term contr
Slide 14: Growth Prospects
GROWTH PROSPECTS For personal use only INTRODUCTION TRANSORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Projects leading to above GDP profit growth over the next 3 years 9 Recent consolidation of refineries 9 Recent reopening of Port Alma salt field due to increased demand 9 Recent upgrading of
Slide 15: Property – Unrealised Value
PROPERTY – UNREALISED VALUE For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST LARA 912ha site at Lara adjacent to A l airport, Avalon i t Vi Vic Medium term 1-3 years Land available now DRY CREEK 316ha located 12kms from Adelaide CBD Longer term 5
Slide 16: Why Invest in Ridley
WHY INVEST IN RIDLEY For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST Agri-sector stock but focused on diversified intensive feed solutions driven by Australian domestic food consumption Not exposed to single sector, less reliant on climate, high cash f
Slide 17: Ridley Corporation
RIDLEY CORPORATION For personal use only INTRODUCTION TRANSFORMATION AGRIPRODUCTS CHEETHAM PROPERTY WHY INVEST We ffeed the ffood that ends upp on y your pplate Premium Solar Salt 16 Ridley transformed and now a compelling proposition