Ricegrowers Ltd. Class B · ASX:SGLLV
Ricegrowers Ltd. Class B — Investor Presentation (June 2009)
40 slides from Ricegrowers Ltd. Class B's investor presentation, Jun 15, 2009
Slide 1: SunRice Capital Raising
SunRice Capital Raising 15 June 2009 1
Slide 2: Chairman’s Introduction
Chairman’s Introduction 2
Slide 3: Agenda
Your Company I Your Future Agenda • Business Update. • Capital Raising Offer. • Share Offer Mechanics. • Chairman’s Close. • Questions. 3
Slide 4: Business Update
Business Update Gary Helou 4
Slide 5: C09 – The Riverina drought continues
Your Company I Your Future C09 – The Riverina drought continues 1744 Paddy Delivered, '000 tons 1381 1241 1088 1040 529 390 305 166 19 65 99 00 01 02 03 04 05 06 07 08 C09 Crop Years 5
Slide 6: SunRice continues to perform very strongly
Your Company I Your Future SunRice continues to perform very strongly..... Full Year Group Results, 2006-08 6
Slide 7: C2008 and Beyond
Your Company I Your Future C2008 and Beyond • Despite the ongoing Riverina drought, we continue to deliver strong results through: – Global Trading. – Rice Foods: Meals and Snacks. – Investments: Riviana and CopRice. 7
Slide 8: Global Trading: Source of Profit and Growth
Your Company I Your Future Global Trading: Source of Profit and Growth • SunRice brands are being drought-proofed: – Flexible and global supply network. – Strategic Investments and Alliances: – US Investment: SunFoods securing supply of MG rice. – Supply Alliances in China, Thailand, Vietnam and Egy
Slide 9: Global Rice Markets: World medium and long grain prices
Your Company I Your Future Global Rice Markets: World medium and long grain prices $1,400 $1,200 $1,000 Medium Grain US No.1 FOB Sacramento $800 Long Grain Thai 100% B $600 FOB Bangkok $400 $200 Apr 04 Apr 05 Apr 06 Apr 07 Apr 08 Apr 09 Jul 04 Oct 04 Jan 05 Jul 05 Oct 05 Jan 06 Jul 06 Oct 06 Jan 07
Slide 10: Continued Focus on Value Add via Marketing Innovation
Your Company I Your Future Continued Focus on Value Add via Marketing Innovation Table Rice Packaging Ultra Convenience Meals Snacking Innovation
Slide 11: Australian operations today
Your Company I Your Future Australian operations today • A re-configured business structure. • Retention of core skills and infrastructure in Australia. • Integrated into flexible and global supply network.
Slide 12: Our global presence
Your Company I Your Future Our global presence USA/Canada Asia Middle East Pacific Australia/NZ 12
Slide 13: SunRice needs to address its Capital Structure in order to fund growth
Your Company I Your Future SunRice needs to address its Capital Structure in order to fund growth .... • It is important that SunRice develop and grow its permanent share capital base to: – Reduce reliance on short term funding. – Reduce overall debt. – Reduce gearing ratio. – Fund its growing rice
Slide 14: Consolidated Group Debt Evolution: 2005-09
Your Company I Your Future Consolidated Group Debt Evolution: 2005-09 14
Slide 15: Consolidated Group Capital Evolution: 2005-09
Your Company I Your Future Consolidated Group Capital Evolution: 2005-09 15
Slide 16: Consolidated Group Gearing Ratios
Your Company I Your Future Consolidated Group Gearing Ratios Gearing Ratio Target of 70% 16
Slide 17: Gearing Ratio Reduction
Your Company I Your Future Gearing Ratio Reduction • Gearing Ratio (Debt/Equity) is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus borrowed funds. Gearing is a key financial benchmark in today’s credit squeezed financial mark
Slide 18: Capital Raising Offer
Capital Raising Offer Grant Latta 18
Slide 19: Capital Raising Prospectus
Your Company I Your Future Capital Raising Prospectus • SunRice Capital Raising Prospectus allows you to subscribe for B Class Shares via: – Cash – Rice Bonds – July 2009 RMB Equity Rollover Payment. – A new voluntary RMB Equity Conversion Offer allowing you to convert ALL of your RMB Equity into a
Slide 20: RMB Equity Conversion Offer
Your Company I Your Future RMB Equity Conversion Offer Discounted at a rate of 10% Cash 9% to reflect the time Pay Out value of money RMB Equity Issued at escalating (2009-2016) 90% share prices based on B Class Shares the maturity date of your RMB Equity to reflect the time value of money 20
Slide 21: The Time Value of Money
Your Company I Your Future The Time Value of Money • $100 today is worth $55 in seven years time, discounted at 9% pa. Maturity NPV of $100 @ Date 9% 2009 100 2010 92 2011 84 2012 77 2013 71 2014 65 2015 60 2016 55 21
Slide 22: Cash Component Calculation
Your Company I Your Future Cash Component Calculation • 10% of your RMB Equity (2009-2016). • Amounts payable from 2010 will be discounted at the net present value (NPV) rate of 9%. • This reflects the time value of money. 22
Slide 23: Share Issue Component
Your Company I Your Future Share Issue Component • 90% of your RMB Equity (2009-2016) will be converted to B Class Shares. • Share prices will range depending on your RMB Equity maturity date Year of Maturity Share Issue Price 2009 $2.140 2010 $2.365 2011 $2.590 2012 $2.815 2013 $3.040 2014 $3.265 2
Slide 24: Dividend Entitlements
Your Company I Your Future Dividend Entitlements • All new shares will be issued as fully paid, and eligible for dividends, including the fully franked dividend just announced for 08-09: – 22.5 cents per B Class Share 24
Slide 25: Conversion Offer Benefits
Your Company I Your Future Conversion Offer Benefits • The Offer releases non-interest bearing future equity into: – Immediate Cash, and – Tradeable B Class Shares, delivering: • A liquid instrument you can trade. • Access to an annual dividend stream. • An instrument you may be able to borrow again
Slide 26: Conversion Offer Benefits
Your Company I Your Future Conversion Offer Benefits 10% RMB Equity Conversion Cash Component Payable end July 09 On average, the value of your + Dividends from new B = maturing July 2009 RMB Equity Rollover payment Class Shares Payable end July 09 26
Slide 27: Conversion Offer Risks
Your Company I Your Future Conversion Offer Risks • The Offer may bring forward a tax event. • Thinly traded shares on the NSX. • Future Dividend is not guaranteed. 27
Slide 28: Share Offer Mechanics
Share Offer Mechanics Claude Cassar 28
Slide 29: Your Capital Raising Pack
Your Company I Your Future Your Capital Raising Pack • Personalised letter detailing what the Offer means to you. • Prospectus, including full details of the Offer. • KPMG Independent Experts Report. • Colour coded application forms and detailed instructions based on your category. • Dividend Reinve
Slide 30: How to Participate: Determine Your Category and follow the Instruction Form
Your Company I Your Future How to Participate: Determine Your Category and follow the Instruction Form 1. RMB Equity Holders participating in the Conversion Proposal: – 1(a): Existing Shareholders. – 1(b): Non Shareholders. 2. RMB Equity Holders who want to acquire shares in other ways – Cash, Rice
Slide 31: RMB Equity Holders participating in the Conversion Proposal
Your Company I Your Future RMB Equity Holders participating in the Conversion Proposal 10% RMB Equity Conversion Cash Component Payable end July 09 On average, the value of your + Dividends from new B = maturing July 2009 RMB Equity Rollover payment Class Shares Payable end July 09 31
Slide 32: RMB Equity Holders participating in the Conversion Proposal
Your Company I Your Future RMB Equity Holders participating in the Conversion Proposal • Your personalised RMB Equity Holder Acceptance Form (pink) sets out the conversion proposal. RMB EQUITY HELD BY ANON GROWER (1) (2) (3) (8) (4) (5) (6) (7) (8) Total Face Share Year of Discounted 10% 90% Shares
Slide 33: RMB Equity Holders participating in the Conversion Proposal
Your Company I Your Future RMB Equity Holders participating in the Conversion Proposal • Existing Shareholders - Pink Form: – Page 1 – Overview. – Page 2 – Acceptance. – Page 3 – Nomination of shareholding. – Page 4 – NA. – Pages 5 & 6 – RMB Deed of Release. – Page 7 – Checklist. 33
Slide 34: RMB Equity Holders participating in the Conversion Proposal
Your Company I Your Future RMB Equity Holders participating in the Conversion Proposal • Non Shareholders - Pink Form: – Page 1 – Overview. – Page 2 – Acceptance. – Page 3 – NA. – Page 4 – New Shareholder Information. – Pages 5 & 6 – RMB Deed of Release. – Page 7 – Checklist. 34
Slide 35: RMB Equity Holders and Shareholders using Rice Bonds, Cash & 09 RMB Equity Rollover
Your Company I Your Future RMB Equity Holders and Shareholders using Rice Bonds, Cash & 09 RMB Equity Rollover • For those who want to acquire shares using Cash, Rice Bonds and 2009 RMB Equity Rollover Payment. • Blue Form – Complete, regardless of whether you are an existing shareholder. • Green an
Slide 36: Dividend Reinvestment Plan participation
Your Company I Your Future RMB Equity Holders and Shareholders who want to participate in the Dividend Reinvestment Plan • Grey Dividend Reinvestment Form: – Complete if you wish to participate in the Dividend Reinvestment Plan. 36
Slide 37: Next Steps
Your Company I Your Future Next Steps • You should consider the Prospectus and consult your financial advisor before applying for B Class Shares under the Offer. • All applications will need to be made on the application forms in the Prospectus. • Contact Grower Services for assistance. • Closing Da
Slide 38: Chairman’s Close
Chairman’s Close 38
Slide 39: Your Company. Your Future.
Your Company I Your Future Your Company. Your Future. • This Capital Raising Offer is important to shareholders, RMB Equity Holders, and SunRice. • The RMB Equity Conversion Offer is a significant opportunity for all, delivering: – A liquid instrument you can trade. – Access to an annual dividend st
Slide 40: Questions
Questions 40
Ricegrowers Limited (SunRice) — Investor Presentation (June 2009) on 6ix