ANNUAL GENERAL MEETING 2019 ROB GORDON, CHIEF EXECUTIVE OFFICER SunRice (ASX:SGL/SGLLV) 1 Thank you Laurie and good morning to everyone. It is a great pleasure to be here with all of you today for SunRice’s 2019 AGM – on behalf the Board and management team, we appreciate your attendance at today’s meeting. Today’s meeting is the first general meeting since we listing on the ASX in April of this year, and I am looking forward to providing an update today on the company, covering the year just passed, as well as what lays ahead for the business.
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AGENDA FY19 results: delivering through the cycle SunRice Group segment performance Additional highlights for the year The Riverina landscape Australian supply and global sourcing Maximising SunRice’s competitive advantages Share price performance and liquidity Looking ahead at FY20 Questions 3 We have a full agenda today covering: • Our recent Financial Results for 2019; • An overview of how individual segments of the Group performed during the year; • Broader highlights for the business; • The current Riverina landscape, supply, sourcing and demand; • An update on our 2022 Growth Strategy; • Some commentary on issues affecting current liquidity and share price; and, finally, • A look ahead at Financial Year 20. Without further ado, let’s get started.
FY19 RESULTS SNAPSHOT FY19 has been a significant year for SunRice with NPAT delivered in line with guidance, despite FX challenges – key highlights for the business include: nue $1.2 .2 billion 1.3% (year-on Consolidate lidated d reve venue on on-year) T) $32.8 million 27.3% (year-on-year) Net Profit it after Tax (NPA PAT) nd 33 cents (per B Class share) No Change (year-on-year) Fully franked Fu d divide dend ce $411.19 per tonne (Reiziq) 8.6% (year-on-year) Final l C18 full-ye year ar paddy dy price Earnings per share 54.5 cents (per B Class share) 28.2% (year-on-year) Reiziq is a medium grain rice variety developed by SunRice to be grown in the temperate climate of the Riverina of New South Wales. Crop or C means a Riverina Rice crop identified by the Year End Gearing Return on Capital 19.1% 9.9% calendar year in which the crop is harvested. For (net debt / (net debt + equity)) Employed - ROCE example, the 2018 Crop (C18) refers to the Riverina Rice harvested during April/May 2018. This 2018 Crop will be accounted for by SunRice in its financial year from 1 May 2018 to 30 April 2019 (FY19). 4 Here we have a snapshot of our Full Year 2019 Financial Results which we released to the market back in June. Before getting into specific commentary, let me just say that our management team and Board are very proud of the result which SunRice has achieved this year in a very challenging environment, and believe we have significantly strengthened the company’s positioning over the last 12 months as an international and diversified ‘Fast Moving Consumer Goods’ business. While we have experienced some challenges in different parts of the Group – predominantly in relation to foreign exchange exposure – our model is both unique and resilient, and as we have shown this year, able to deliver through the cycle. Consolidated revenue for the Group was $1.2 billion, up 1.3% on the prior year, and Net Profit After Tax was $32.8 million, which was slightly above the midpoint of guidance, although a 27% decrease compared to the previous year. We declared a fully franked dividend of 33 cents per B Class share, the same as last year, and had earnings per share of 54.5 cents, which was down 28%. Year-end gearing was 19%, and we had a 9.9% return on capital employed.
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