Ridley Corporation Limited · ASX:RIC
Ridley — UBS Australasian Conference and Wilsons Rapid Insights 2022
15 slides from Ridley's conference presentation, Nov 14, 2022
Slide 1: UBS Australasian Conference and Wilsons Rapid Insights 2022
UBS Australasian Conference Sydney, 14 November 2022 and Wilsons Rapid Insights 2022 Melbourne, 17 November 2022 LEADING ANIMAL NUTRITION 1
Slide 2: Ridley's Growth Platform
RIDLEY’S GROWTH PLATFORM Ridley delivered against its FY20-FY22 Growth Plan by: • achieving an EBITDA CAGR of 18.6%; • implementing a disciplined capital allocation framework; • investing growth capex in both reporting segments; • selling under-performing assets; and • realising a total shareholder
Slide 3: Ridley's Growth Platform
RIDLEY’S GROWTH PLATFORM • Australian farm gate output is forecast to continue increasing. • Ridley’s position as market leader in the animal nutrition sector provides scale benefits and the capacity to employ specialists and adopt technology. • Ridley’s capability and products can deliver profitabl
Slide 4: Growth Plan FY23 – FY25
GROWTH PLAN FY23 – FY25 KEY INITIATIVES • NovaqPro™ international sales FY22 FY23 FY24 FY25 • Growing with aqua customers • Companion animal sales • Premiumisation of rendered products • Tallow & protein meal trading Earnings Growth Packaged & • NovaqPro™ operating efficiencies Ingredients • Energy
Slide 5: FY23-FY25 Growth Plan: Bulk Stockfeeds
FY23 - FY25 GROWTH PLAN : BULK STOCKFEEDS Ridley’s Virtuous Cycle Bulk Stockfeed Increase Capacity Key Initiatives and Efficiency Strategy Growth Leverage the flywheel • increase mill utilisation Invest in Better Delivery Infrastructure and Reliability • de-bottleneck sites effects of scale, extend
Slide 6: Bulk Stockfeeds: Delivering on the Growth Plan
BULK STOCKFEEDS Delivering on the Growth Plan GROWTH - Growing with our customers - Sales volumes up 4% in Q1 on pcp - Investment in debottlenecking projects at five feedmills will increase installed capacity by >10% for FY24 GROWTH - New product offerings - Launch of Ridley ‘smart blends’ range of
Slide 7: Impact of Wet Conditions
IMPACT OF WET CONDITIONS Widespread rainfall / flooding through Eastern Australia in recent months has affected our Bulk Stockfeeds operations. • Sites sustained very minor flood damage. • Supply to customers disrupted due to restricted road access which: • stopped the mills for short periods due to
Slide 8: FY23–FY25 Growth Plan: Packaged & Ingredients
FY23 – FY25 GROWTH PLAN : PACKAGED & INGREDIENTS Packaged Aqua Ingredient Recovery (formerly Rendering) Products (Feed / Sector Support) NovaqPro™ Strategy Strategy Strategy Strategy “climbing the wall of value” Invest in processing Product Extend our rural market Share in the growth of the Continue
Slide 9: Packaged & Ingredients: Delivering on the Growth Plan
PACKAGED & INGREDIENTS Delivering on the Growth Plan Growth : Tallow & protein meal trading - Increased bulk meal storage in Q1 at NSW facility to enhance trading opportunities. - VIC facility licensed for EU market access Growth : Companion Animal Sales - Packaged Product sales volumes up 3% in Q1
Slide 10: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK • The Board remains committed to the Capital Allocation Framework and the Operating Cash Flow disciplined use of shareholders capital. • On 18 August 2022, the Board announced Maintenance & ESG Capital and Working Capital its intent to conduct an on-market share ~60 – 80
Slide 11: Sustainability Pathway
SUSTAINABILITY In order to lead animal nutrition in Australia, Ridley must embed a sustainable food supply system. Working with our partners at each stage of the food and farming ecosystem better prepares us to take on challenges such as PATHWAY scarce resources, emissions and climate change. Theref
Slide 12: Outlook
OUTLOOK LEADING ANIMAL NUTRITION INSERT PRESENTATION TITLE | 7/5/22 12
Slide 13: Outlook
OUTLOOK Outlook unchanged with first half earnings (EBITDA) expected to improve on the previous corresponding period through a mix of: • positive contributions from the Growth Plan initiatives across the business. • the Packaged & Ingredients segment benefiting from ongoing favourable tallow and mea
Slide 14: Important notice and disclaimer
The material in this presentation is general background information about the activities of Ridley Corporation Limited and its related entities (Ridley), current at the date of this presentation, unless otherwise stated. The content is information given in summary form and does not purport to be com
Slide 15: Thank You
THANK YOU LEADING ANIMAL NUTRITION 15
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