Ridley Corporation Limited · ASX:RIC
Ridley — 2009 BBY Agriculture Cleantech & Energy Conference
39 slides from Ridley's conference presentation, Sep 21, 2009
Slide 1: Ridley Corporation presentation to BBY Conference
RIDLEY CORPORATION For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK ASX Release – RIC Presentation by Mr John Murray, CEO Ridley Corporation Limited, to the 2009 BBY Agriculture Cleantech & Energy Conference, 3.00pm 21st September 2009
Slide 2: Ridley Corporation
RIDLEY CORPORATION For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK 21st September 2009
Slide 3: Agenda
AGENDA For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK INTRODUCTION FINANCIALS C S AGRIPRODUCTS CHEETHAM SALT PROPERTY OUTLOOK APPENDICES 3
Slide 4: Ridley Corporation Limited overview
RIDLEY For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Ridley Corporation Limited (RIC) is: a processor of value-added Agricultural products Australia’s largest processor of stockfeed products (Ridley Agriproducts) Australia’s largest producer and refiner o
Slide 5: FY2009 Highlights
FY2009 HIGHLIGHTS For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Normalised NPAT from continuing operations of $28.1m, up 77% Sale of Ridley Inc Debt reduction and extension of banking facilities Record result in Agriproducts and positioned for strong or
Slide 6: Strong Profit Growth
STRONG PROFIT GROWTH For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Normalised EBITDA of $55.8m $55 8m (+27%) Normalised NPAT of $28.1m $28 1m (+77%) EBITDA EBITDA NPAT(pre NPAT (presig sigitems) items) Agriproducts Cheetham Corporate Salt JVs 35 0 35.0 80 0
Slide 7: Strong EPS Growth
STRONG EPS GROWTH For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Normalised EPS of 9.3cps 9 3cps underlines ability to pay dividends from Australian earnings EPS (pre sig items) 12.0 +72% 10.0 8.0 +26% 6.0 9.3 4.0 6.8 5.4 2.0 - F08 F09 F09n 7 7
Slide 8: Strong Cashflow
STRONG CASHFLOW For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Operating cashflow $53.0m EBITDA 2008 2009 2009n following a net reduction in net EBIT* 32.2 37.6 44.4 workingg capital p of $21m Depreciation 11.8 11.4 55.8 EBITDA* 44.0 49.0 55.8 Ungeared pre t
Slide 9: Low Gearing
LOW GEARING For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Gearing reduced from 54% to 25% Cash Conversion 2008 2009 2009n Net Debt 199 69 69 Interest cover ratios show the low debt level relative to earnings g Equity 369 276 276 Total Assets 568 345 345 R
Slide 10: For personal use only
For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK 10
Slide 11: Agriproducts Overview
AGRIPRODUCTS OVERVIEW For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK 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
Slide 12: Market Segments
MARKET SEGMENTS For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Poultry: accelerated growth due to newly S Species i (kt) 2008 2009 2010 contracted business Poultry 678 746 Pig: feed market reflects the fresh pork market Pig 375 332 Dairy 323 293 Dairy: fir
Slide 13: A Less Volatile Business
A LESS VOLATILE BUSINESS For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK An increasing proportion of An increasing proportion of volumes from the less seasonal volumes are contracted giving poultry markets greater certainty a lower proportion from more Th
Slide 14: FY2009 Financial Highlights
FY2009 FINANCIAL HIGHLIGHTS For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Record EBIT result of $24.4m $ Agriproducts 2008 2009 2009n normalised to $26.4m is sustainable and the business is well positioned for EBIT ($m) 15.0 24.4 26.4 further growth EBITDA ($
Slide 15: Outlook
OUTLOOK For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Benefit from actions of the last 12 months Sales of underperforming assets and organisational restructuring Cost reductions of ~$5m – full year benefits in FY10 First Half FY2010 Re-opening of Clifton
Slide 16: For personal use only
For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK 16
Slide 17: Cheetham Overview
CHEETHAM OVERVIEW For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK 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 18: Market Segments
MARKET SEGMENTS For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Salt demand: typically grows in line with population Segment 2008 2009 2010 growth and GDP Soda Ash 574.3 580.4 Soda Ash: influenced by Penrice demand Chemical 172.1 143.4 Chemical: influenced
Slide 19: FY2009 Financial Highlights
FY2009 FINANCIAL HIGHLIGHTS For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Underlying EBIT result of $17.7m impacted by abnormally large costs of $4.8m pairing Cheetham 2008 2009 2009n the result back to $12.9m Revenue 95.3 101.5 101.5 Continued steady growt
Slide 20: Outlook
OUTLOOK For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Benefit from actions of the last 12 months Reopening of Port Alma Salt field – benefits to flow from F11 onwards Corio refinery y relocation to Sea Lake Implementation of new ERP system Absence of un
Slide 21: Property
PROPERTY For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Strategy Unlocking the potential value of land close to urban centres Net valuation of $81.85m underpinned by independent value from Savills Some small initial sales (eg. Corio $2.5m) with potential l
Slide 22: Dry Creek Development Area
DRY CREEK DEVELOPMENT AREA For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Aerial view of Dry Creek Crystalliser Ponds 22
Slide 23: Lara
LARA For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Lara Salt Avalon Fields Airport Avalon air strip 23
Slide 24: Macro Environment
MACRO ENVIRONMENT For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Agriproducts Unique position in the Agri-sector with relatively: 9 Low exposure to climatic conditions 9 Low exposure to the size of the crop 9 Stable cashflows and strong conversion of EBITDA to
Slide 25: Conclusions
CONCLUSIONS For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK FY09 a watershed year for simplifying and restructuring the business New management team now established in Melbourne Strong growth evident in underlying results Strategic initiatives are well on
Slide 26: Questions and Answers
For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK QUESTIONS AND ANSWERS 26
Slide 27: Appendices
APPENDICES For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK PROFIT AND LOSS NON TRADING ITEMS BALANCE SHEET WORKING CAPITAL CAPITAL EXPENDITURE CASHFLOW DEBT BRIDGE SEGMENT SUMMARY PROPERTY VALUATION 27
Slide 28: FY2009 Profit Highlights
FY2009 PROFIT HIGHLIGHTS For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK Group NPAT from continuing operations of Continuing Op’s 2008 2009 2009n $20.3m, normalised to $28.1m for large Sales Revenue 838.4 819.4 819.4 adjustments EBIT - Agriproducts 1 15.0 24.4
Slide 29: Profit and Loss
PROFIT AND LOSS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Continuing Operations 2008 2009 2009n Minimal equity issues other than DRP Net Profit pre sig. items 15.9 20.3 28.1 EPS of 4.3, however on a normalised basis Significant items after tax (10.4) (7
Slide 30: Profit and Loss
PROFIT AND LOSS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK A$ A$m 2008 2009 Ch Change Continuing NPAT result of $12.9 $12 9 reflected earlier NPAT from continuing Loss of $52.4m associated with the 15.9 20.3 27.6% operations before sale of Ridley Inc as
Slide 31: Significant Items
SIGNIFICANT ITEMS For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK A$m 2008 2009 Corporate restructuring costs of $1.2m Corporate Restructuring Costs 2.5 1.2 associated with relocation of Sydney (pre tax) corporate head office to Melbourne Takeover Defence Costs
Slide 32: Balance Sheet
BALANCE SHEET For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Balance Sheet (A$m) 2008 2009 Reduction R d ti in i Net N t Current C tA Assetst reflecting fl ti the significant working capital reduction Total Current Assets 207.2 175.7 Total Current Liabilities
Slide 33: Working Capital
WORKING CAPITAL For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Working g Capital p (A$m) ( $ ) 2008 2009 Increased focus on timely Cash 1.8 0.3 debt collection Trade Debtors 102.2 88.4 A combination of lower input Other Debtors, Prepay’ts and Div’s Receivabl
Slide 34: Capital Expenditure
CAPITAL EXPENDITURE For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK C Capex ($ ) ($m) 2009 2010* $7.1m $7 1 off d development l t capital it l Sea Lake 3.3 0.4 expenditures in salt, with $5.2m in FY10 to complete these projects Bajool Refinery 0.9 2.6 Port Alma
Slide 35: Cashflow
CASHFLOW For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Continuing Operations A$m 2009 2008 Operating Cashflow of $58.1m $ Operating Cashflow before dividends 58.1 7.9 Salt joint venture distributions increase received, interest and tax in line with inflatio
Slide 36: Cashflow
CASHFLOW For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Continuing Operations A$m 2009 2008 Proceeds from sale of Ridley Inc. of Operating Cashflow after Net Capex 36.6 (23.6) A$91.6m applied as part of the debt retirement for the year Net Proceeds from Sale o
Slide 37: Debt Bridge F08 to F09
DEBT BRIDGE F08 TO F09 For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK 200.0 150.0 91.6 13.7 5.1 5 57 9 57.9 13 2 13.2 100.0 14.2 2.9 182.9 7.6 134.6 7.6 107.7 50.0 69 1 69.1 0.0 Opening Ridley Inc PPE Intangibles Sale Before Interest Dividends Before Net Salt JV
Slide 38: Segment Summary
SEGMENT SUMMARY For personal use only INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK Segment g 2009n 2009 2008 Agriproducts - Tonnes (kt) 1,573 1,573 1,610 - EBIT 26.4 24.4 15.0 - Depreciation 67 6.7 67 6.7 76 7.6 - EBITDA 33.1 31.1 22.6 - Funds Employed 129.9 129.9 156.8 - ROFE 20.3
Slide 39: Property Valuation
PROPERTY VALUATION For personal use only INTRODUCTION FINANCIALS AGRIPRODUCTS CHEETHAM PROPERTY OUTLOOK As disclosed in section 4 and Annexure 1 of Ridley’s Ridley s Target Statement on 17 July 2008 2008, property valuer Savills’ provided an indicative valuation of significant land holdings that Rid
Ridley — 2009 BBY Agriculture Cleantech & Energy Conference on 6ix