Graincorp Limited Class A · ASX:GNC
Graincorp Limited Class A — JPMorgan A Day at the Farm Annual Agricultural Corporate Access Day 2008
24 slides from Graincorp Limited Class A's conference presentation, Jun 19, 2008
Slide 1: Company announcement
For personal use only Company announcement GrainCorp Limited ABN 60 057 186 035 Date: Thursday, 19 June 2008 To: The Manager Announcements Company announcements office Lodged via www.asxonline.com PUBLIC ANNOUNCEMENT Contents for immediate release: Presentation to the JP Morgan “A Day at the Farm” A
Slide 2: A Day at the Farm - JPMorgan Annual Agricultural Corporate Access Day
For personal use only “A Day at the Farm” JPMorgan Annual Agricultural Corporate Access Day 19th June 2008
Slide 3: Forward looking statements
Forward looking statements For personal use only This presentation includes both information that is historical in character and information that consists of forward looking statements. Forward looking statements are not based on historical facts, but are based on current expectations of future re
Slide 4: GrainCorp Vision
GrainCorp Vision For personal use only Our vision is to be Australasia’s leading handler and supplier of bulk agriproducts. • GrainCorp operates 250 silos and nine port terminals on the Australian eastern seaboard handling grain and other bulk products • We have a national and international grain an
Slide 5: GrainCorp – Snapshot
GrainCorp – Snapshot For personal use only Enterprise Value • GrainCorp is a publicly listed company with 12,000 shareholders with an EV of $1 billion Storage and Handling • Our grain receival network has 250 operational sites and a total storage capacity of 20 million tonnes, handling approximately
Slide 6: GrainCorp Segmented EBITDA & Financials
GrainCorp Segmented EBITDA & Financials For personal use only ($ millions) FY04 FY05 FY06 FY07(1) H1 FY08 Grain receivals 12.0Mt 10.2Mt 12.1Mt 3.0Mt 4.6Mt Grain carry-in 0.9Mt 3.0Mt 3.2Mt 4.9Mt 1.2Mt Grain handled 12.9Mt 13.2Mt 15.3Mt 7.9Mt 5.8Mt Storage & Handling 66.8 56.3 81.0 10.4 13.8 Port Term
Slide 7: Global Price Outlook
Global Price Outlook For personal use only Food and Agriculture Organisation (FAO) Food Outlook May 2008 • “…International prices of most agricultural commodities….are unlikely to return to the low price levels of previous years…due to a host of reasons, including the escalated cost of inputs. Moreo
Slide 8: GrainCorp Transformation
For personal use only GrainCorp Transformation
Slide 9: Key factors driving transformation
Key factors driving transformation For personal use only Removal of wheat • Additional earnings available from export monopoly removal of the wheat export monopoly GrainCorp ‘foundation share’ • GrainCorp Board reduced from 11 to 6 removed February members 2008 • AWB still has grower only ‘A’ class
Slide 10: Complex Supply Chain Integration
Complex Supply Chain Integration For personal use only GrainCorp’s Integrated Business Model Export Port O’seas Grain Terminal Customers Storage & Supply Grain Marketing Handling Chain Domestic Allied Food Grain Mills Customers Producer Mill run Domestic Farm Supply Customers Meals Farm inputs Ferti
Slide 11: Post July 2008 Business Unit Structure
Post 1 July 2008 Business Unit Structure For personal use only New Business Structure Storage and Ports and New Marketing Handling Business International sales & Silo network, Supply chain Port Terminals, Hunter marketing desk, grain logistics, AG Haul Road & Grain, AG Plus pools, container exports,
Slide 12: Storage and Handling
Storage and Handling For personal use only Integration of grain accumulation assets with AG Haul Road and Rail • More efficient service provided to customers from receival to delivery • Full control of ‘take or pay’ train deployment driving efficiency gains • Lowering logistics costs = higher margin
Slide 13: Ports and New Business
Ports and New Business For personal use only Integration of bulk and container grain export services, Hunter Grain imports and non-grain exports • Focus on driving asset usage and increasing ROCE • Growing Hunter Grain protein meal import business • Optimising AG Plus merchandise business • Strategi
Slide 14: Review of Ports
Review of Ports For personal use only The 9 port terminals will contribute a greater share of revenue in the future • Investigation of handling alternative products at Mackay (coal) and Gladstone (minerals) • Co-location of a barley malt house at Pinkenba • Construction of a new container packing fa
Slide 15: Portland – Woodchip exports
Portland – Woodchip exports For personal use only
Slide 16: Marketing
Marketing For personal use only New services for customers to drive value extraction and increase margins • International sales and marketing desk to expand global customer base • New focus on bulk wheat exports • Integrating grain procurement with supply chain capability • Leveraging existing exper
Slide 17: Mergers and Acquisitions
For personal use only Mergers and Acquisitions
Slide 18: Allied Mills - 2002
Allied Mills - 2002 For personal use only Focus on margin growth and continuous improvement • Supply of in-store bakery flour mixes to Coles and Woolworths • Commissioning of new flour mill at Picton (NSW) end of 2008 (replacing the existing Summer Hill facility) • New product development 17
Slide 19: Hunter Grain - 2007
Hunter Grain - 2007 For personal use only Complements port and domestic market strategies Core business Existing GrainCorp facilities • Largest importer and distributor of protein meal, stock feed inputs and feed grains for domestic market • AQIS approved supply chain arrangements for imports Suppor
Slide 20: Ridley Corporation Take Over Bid
For personal use only Ridley Corporation Take Over Bid
Slide 21: Ridley Bid – Situation Report
Ridley Bid – Situation Report For personal use only Takeover • GrainCorp announced on 16th May that it announcement intended to takeover Ridley Corporation • Statement lodged with ASX and ASIC on 6th Bidder Statement June 2008 • Ridley is expected to respond to GrainCorp Target Statement bidder stat
Slide 22: Ridley Corporation - Snapshot
Ridley Corporation - Snapshot For personal use only Business Unit z Cheetham Salt z Ridley AgriProducts z Ridley Inc markets produces, refines sells a broad range feed rations, and distributes salt of products for the nutritional for food and livestock, supplements, feeding industrial markets aquacu
Slide 23: Ridley Bid - 2008
Ridley Bid - 2008 For personal use only There is a natural fit • Ridley stockfeed milling is a natural extension of the between GrainCorp GrainCorp storage, handling and transport supply and Ridley chain Key customers are • Common stockfeed customers benefit from shared by both geographic match betw
Slide 24: GrainCorp - Integration Capabilities
GrainCorp - Integration Capabilities For personal use only GrainCorp has a successful history of integrating over $400 million of ‘natural fit’ agribusinesses in the last eight years • Total cost savings and synergies of more than $40 million • In 2007, GrainCorp acquired Hunter Grain, at that time
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