Slide 1: Ridley Corporation Limited Investor Presentation – 2016 Financial Year
RIDLEY CORPORATION LIMITED INVESTOR PRESENTATION – 2016 FINANCIAL YEAR 1
Slide 2: Ridley
RIDLEY Third successive record core business result, up from $50.4m EBIT to $53.7m Dry Creek sold for $35m, and no further costs to incur NovacqTM production site secured at Yamba, NSW, lined, infrastructure installed, and production commenced Investment in Thailand feedmill to produce shrim
Slide 3: Financial Highlights
FINANCIAL HIGHLIGHTS AgriProducts full year result of Consolidated result - FY16 FY15 FY14 $53.7m, a third successive record in AUD$million ($m) and $3.3m on prior year (6.5%). Property - Dry Creek - reflected EBIT - AgriProducts 53.7 50.4 40.1 next slide as a Discontinued Operation. Property co
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Consolidated result Net finance expense - consistent with prior FY16 FY15 FY14 year, with refinancing of facility in the year. - in $m $2.9m increase in tax payable reflects $0.9m Operating result 42.1 38.8 29.3 on improved operating result & prior year under-provision of $0
Slide 5: AgriProducts
AGRIPRODUCTS RIDLEY | INVESTOR PRESENTATION | 2016 FINANCIAL YEAR 5
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS EBIT result for agribusiness of $53.7m - up $3.3m (6.5%) on last year with no normalising adjustments. Poultry - population & white meat consumption growth, coupled with high performing diets & nutrition support, continue to generate reliable year on year performance & great
Slide 7: Ridley Business
RIDLEY BUSINESS: “Our Mission is to improve the cost of feed to yield ratio for our customers” Safety - TRFR/LTIFR lead indicators – year end Compliance Livestock LTIFR at record low of 2.2 Yield / Performance Nutrition – Ridley’s Mission is to Quality - DIFOTIS, Innovation - diet formulation, maxim
Slide 8: Yamba Novacq Production Site (1)
YAMBA NOVACQTM PRODUCTION SITE (1) 7.5Ha of prawn ponds in Yamba, NSW secured for NovacqTM production # Strategy - facilitates the scale up to production of extensive feed trial quantities of NovacqTM for domestic requirements and overseas trials. Ponds have been lined, silos have been erected a
Slide 9: Yamba Novacq Production Site (2)
YAMBA NOVACQTM PRODUCTION SITE (2) 315km to Aquafeed site 3 Ponds lined and at Narangba actively producing Tru Blu NovacqTM Prawn farm Byron Bay Ballina Grafton Ridley site office Bunded silos & Yamba township Coffs Harbour & facilities shed storage shed 9
Slide 10: Chanthaburi Feedmill (1)
CHANTHABURI FEEDMILL # (1) Feedmill Feedmill co-owner’s residence and Gulf of Thailand prawn farm headquarters Ideally located in a major prawn growing region of Chanthaburi, Thailand Strategy - feedmill to service the local & domestic prawn feed markets with a full product offering, with inclus
Slide 11: Chanthaburi Feedmill (2)
CHANTHABURI FEEDMILL (2) 49% interest acquired in FY16 to jointly operate with co-owner using Ridley diets, knowhow & nutrition. Existing 30kt capacity with infrastructure in place to expand to 55kt. Full extrusion plant, unique to Thailand feedmillers. Modern design, with high safety standa
Slide 12: Lara Feedmill
LARA FEEDMILL New meal silos Existing silo storage New tower capping – early Aug’16 Commissioning targeted Outloading and for mid FY17 weighbridge 5.3Ha site in Lara for a new poultry and pig feedmill located in a key growth area with proximity to: (i) major grain growing region, (ii) Port of Ge
Slide 13: Property
PROPERTY RIDLEY | INVESTOR PRESENTATION | 2016 FINANCIAL YEAR 13
Slide 14: Property – Dry Creek
PROPERTY – DRY CREEK Site sold - sale of Ridley Dry Creek Pty Ltd announced on 6 November 2015 was completed on 2 June 2016. Sale details - 100% of the share capital sold for $35m, receivable $19m by Completion, & the $16m balance receivable in tranches up to 31 December 2017, secured by a first
Slide 15: Property - Other
PROPERTY - OTHER Major coastal site at Nelson Cove (near Geelong): “MOOLAP coastal strategic framework PLAN Discussion Paper” released in July 2016 by the Victorian state government (PLAN). The PLAN refers to 7 different concept outcomes, none of which incorporate the latest Ridley/Sanctuary L
Slide 16: Nelson Cove Coastal Solution
NELSON COVE COASTAL SOLUTION Solution for flood 2,000 construction 1,100+ acres of bird prone neighbouring and permanent jobs sanctuary preserved residential areas for the region forever Low lying Ridley-owned Lara shoreline land available for subject to sale inundation, sea level rise, and stormwat
Slide 17: Consolidated Financials
CONSOLIDATED FINANCIALS RIDLEY | INVESTOR PRESENTATION | 2016 FINANCIAL YEAR 17
Slide 18: Balance Sheet - Assets
BALANCE SHEET - ASSETS Assets held for sale - prior year comprises Balance Sheet June June June June Dry Creek and Dandenong, both sold in FY16. - in $m 2016 2015 2014 2013 Other current assets - includes $9.8m Assets held for sale - 34.1 1.4 0.7 present value of $10m of Dry Creek deferred consi
Slide 19: Balance Sheet - Liabilities
BALANCE SHEET - LIABILITIES Balance Sheet June June June June Payables - reflects timing of creditor - in $m 2016 2015 2014 2013 payments within agreed terms. Current payables 145.9 158.7 129.4 152.6 Tax - tax payable on current year profits inflated by net tax of $4.8m payable on Dry Creek dive
Slide 20: Cash Flow
CASH FLOW Consolidated Cash flow - in $m FY16 FY15 FY14 FY13 Strong core business EBITDA performance of $53.5m, up $2.5m Consolidated EBITDA 53.5 51.0 41.0 39.2 (5%). Movement in working capital (19.3) 7.0 (5.5) 26.4 $19.3m increase in working capital, Maintenance capex (14.9) (12.8) (11.4) (11.
Slide 21: Financial Summary
FINANCIAL SUMMARY Consolidated results - in $m FY16 FY15 FY14 FY13 FY12 FY11 Core business EBITDA (before Property 59.1 56.4 45.1 36.4 29.7 28.0 segment & non-recurring items) Depreciation & Amortisation 15.0 14.9 13.6 14.0 9.2 8.6 RAP EBIT 53.7 50.4 40.1 28.1 27.2 24.9 Corp EBIT (9.6) (8.9) (8.6) (
Slide 22: Outlook
OUTLOOK RIDLEY | INVESTOR PRESENTATION | 2016 FINANCIAL YEAR 22
Slide 23: Outlook - Operations
OUTLOOK - OPERATIONS Poultry - keeping the internal focus on extracting operational efficiencies & servicing major customer growth expected for both broiler (meat) & layer (egg) based on consumer demand for healthy, value for money meat protein source. Pig - leveraging the technical expertise in
Slide 24: Outlook - Strategy
OUTLOOK - STRATEGY NE Geelong feedmill - commission the new Lara Feedmill for poultry & pig to commence operations in mid-FY17 and target new volume. New feedmills - continue discussions to secure additional volume and/or freight savings required for new mill project opportunities to achieve hur
Slide 25: Contact Details
CONTACT DETAILS Tim Hart Managing Director and Chief Executive Officer Email: Tim.Hart@ridley.com.au Tel: +61 3 8624 6500 Fax: +61 3 8624 6414 Mobile: + 61 404 480 542 Ridley Corporation Limited ABN 33 006 708 765 Level 4, 565 Bourke Street Melbourne, VIC. 3000 Australia www.ridley.com.au RIDLEY | I
Slide 26: Appendices
( RIDLEY APPENDICES
Slide 27: Ridley Strategy
RIDLEY STRATEGY “Our Mission is to improve the cost of feed to yield ratio for our customers” Execution of our Mission Our 6 Strategic Platforms enable us to will enable us to achieve deliver on our Mission our Vision to be: Australia’s leading producer of premium quality, high performance animal nu
Slide 28: Outlook – Regional Growth
OUTLOOK – REGIONAL GROWTH • Dairy In 2012-13, Australian farms produced:- • Beef • $13.2 bn of livestock (for meat) • Animal meals and fats • $6.9 bn of livestock products (wool, dairy etc) • High-performance raw materials • $2.3 bn of fish and other marine produce … all forecast to have strong expo
Slide 29: Outlook – Ridley Investment
OUTLOOK – RIDLEY INVESTMENT Ridley Sector Local or Species Position Growth Global? * in Sector Potential Salmon – Local Aqua Strong (#2) High Ridley well Prawn – Global Attractive blend positioned in key of local and growth sectors Dairy Strong (#1) High Global global markets Poultry - Strong (#1) M
Slide 30: Corporate Snapshot
CORPORATE SNAPSHOT Corporate focus: Australia’s leading supplier of premium quality, high performance animal nutrition solutions ASX – as at 25 August 2016 RIC Share price $1.43 Shares on issue 307.8m Market cap. $440.15m 52 week range $1.20 - $1.68 Number of shareholders 7,456 Top 20 shareholders 7
Slide 31: Sector History
SECTOR HISTORY Sector FY16 FY15 FY14 FY13 FY12 FY11 FY10 (kt) (kt) (kt) (kt) (kt) (kt) (kt) Outlook Poultry 1,044 1,013 1,019 872 933 900 764 Aqua-feed 54 65 50 42 47 50 47 Packaged 78 83 90 90 85 84 90 Dairy 284 291 275 251 260 236 215 Pig 177 168 178 184 197 224 325 Supplements 20 15 21 22 22 22 3
Slide 32: Brands and Customers
BRANDS AND CUSTOMERS Brand Overview Customers / market position Barastoc offers a range of pellets, meals, concentrates and premixes specifically for- Bulk customers range from the small independents to mulated to meet the nutritional requirements of dairy cattle, pigs, poultry, horses, the largest
Slide 33: Locations and Sectors
LOCATIONS AND SECTORS Closed 33
Slide 34: Growth Opportunities
GROWTH OPPORTUNITIES 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 & service offering and capital constraints Ridley 1.9mt
Slide 35: Global Prawn (Shrimp) Production
GLOBAL PRAWN (SHRIMP) PRODUCTION The opportunity in Asia is substantial and growing fast Global shrimp production growth (kt) Insights 4,190 4,338 4,455 GLOBAL Asia accounts for 85% of global shrimp production 3,779 CAGR 577 605 663 90-13 • China the largest producer with 38% of global production an
Slide 36: Lara and Moolap
LARA AND MOOLAP AVALON AIRSTRIP 912 hectare site at Lara – part available LaraSalt Avalon Fieldsas migratory bird for environmental offset Airport sanctuary Melbourne Balance of Lara site earmarked for sale with ~60km potential redevelopment for industrial and airport-related uses 912ha site adj
Slide 37: Outlook – Regional Investment
OUTLOOK – REGIONAL INVESTMENT 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 volumes paucity of Australian listed agribusiness