IGNIFICANT I I TEMS TEMS INTR INTRODUCTION ODUCTION AGRIPR - - PowerPoint PPT Presentation
R IDLEY C ORPORATION FY2009 R ESULTS P RESENTATION INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK A GENDA INTRODUCTION INTR ODUCTION AGRIPR
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Group NPAT from continuing operations of $20.3m Continuing normalised NPAT of $28.1m Record EBIT result for Agriproducts of $24.4m Reduction in borrowings to $69.1m following sale of Ridley Inc Significant reduction in working capital Operating cash flow before dividends received, interest and tax of $58.1m Annual dividend of 7c per share maintained
Continuing Op’s 2009n Adj 2009 Sales Revenue 819.4
EBIT - Agriproducts
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26.4 2.0 24.4 EBIT - Cheetham
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17.7 4.8 12.9 Salt Joint Ventures 7.1
Corporate Costs (6.8)
Result from Operations 44.4 6.8 37.6 Net Finance Expense
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(8.0) 4.4 (12.4) Tax Exp. excl sig. items
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(8.3) (3.4) (4.9) Net Profit pre sig. items 28.1 7.8 20.3
Notes:
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Sale of Ridley Inc Debt reduction and extension of banking facilities Restructuring of Australian businesses Consolidation of Corporate, Agriproducts and Cheetham offices in Melbourne Improvement of Agriproducts Progression of land development opportunities Significant cost reduction Cheetham impacted by some large unusual costs but well positioned for growth New ERP implemented in Cheetham and underway in Agriproducts
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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Record EBIT result of $24.4m normalised to $26.4m is sustainable and the business is well positioned for further growth Sales of Wondai, Rockhampton, Pills and Atherton JV, closure of Colac, Northam and Toowoomba Admin and mothballing of Clifton mill Number of feed mills now 17, plus 2 supplements plants, an aquafeed plant and an investment in 2 liquid feed plants Organisational Restructuring: 140 (20%) less staff since April 2008 (now 549) Annualised cost reductions of ~$5.0m (~$3.0m embedded in FY09 results) Centralised sales, procurement, nutrition and supply chain functions within the new Melbourne head office
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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Poultry: growth from Inghams relationship, growth of second tier independent broiler processors, market growth of chicken consumption and growth in niche turkey, layer and duck market sectors Pig: increased imports of further processed pig meat and Australia reverting to a predominantly fresh market Dairy: dramatic fall in global and farm gate milk price Aquafeed: market growth and growth in market share Beef: sales of Rockhampton and Wondai mills and Atherton JV as well as depressed market generally Horse: a slight decline in demand from economic environment and reasonably good pasture conditions Supplements: favourable pasture growing conditions in
believe in the long term future of this business as the prices of grazing lands increase, bringing more pressure to obtain higher meat yields per hectare Sheep: volumes up slightly, reflecting the growing market
Species (kt) 2009 2008 Poultry 746 678 Pig 332 375 Dairy 293 323 Aqua 37 29 Beef 37 76 Horse 32 37 Supplements 24 30 Sheep 11 8 Other 61 54 Total Tonnes 1,573 1,610
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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Record EBIT result of $24.4m is sustainable and the business is well positioned for further growth EBITDA per tonne increased by 44%
Profit & Loss 2009n 2009 2008 Sales 716.9 716.9 742.3 EBITDA before add-backs 31.1 31.1 22.6 Add-back Cost Improvements 2.0
33.1 31.1 22.6 Depreciation (6.7) (6.7) (7.6) EBIT 26.4 24.4 15.0 EBITDA per tonne $21.04 $20.27 $14.04
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK Note: 2009n is per normalisations on page 3
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Funds employed reduced in line with working capital reduction following a fall in commodity prices from high levels last year and from lower sales following the sale of underperforming assets ROFE increase to 18.8% associated with the sales of underperforming assets and improvement in operating results Operating Cash flow has improved significantly Cash Conversion of 143% high in FY09 due to significant working capital reduction
Balance Sheet 2009n 2009 2008 Funds Employed 129.9 129.9 156.8 ROFE (EBIT/Funds Employed) 20.3% 18.8% 9.6% Cashflow 2009n 2009 2008 Net Cashflow before int. & tax 46.5 44.5 (14.4) Net Cash flow % EBITDA 140% 143% (64%)
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK Note: 2009n is per normalisations on page 3
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Macro Economic Environment Different drivers to broader economy Increasing world population Increasing demand for protein Limits to the availability of arable land Increasing food safety pressures ….all leading to increased pressure to achieve greater and safer animal productivity Market Environment Growth in poultry markets Growth in aquaculture markets Dairy impacted by the dramatic fall in milk prices
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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Strategic Actions for FY10 Focus on intensive industries Re-opening of Clifton mill supported by contracted relationship with Inghams Expansion of Aquafeed capacity Continued efforts to turn around the under-performing supplements business Growth from new product lines in dairy concentrates Implementation of the new ERP platform Full year benefits from cost reduction
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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Underlying EBIT result of $17.7m impacted by abnormally large costs of $4.8m pairing the result back to $12.9m Continued steady growth of after tax Joint Venture distributions from $6.9m to $7.1m in line with inflation Underlying result for division flat at $24.8m ($20.0m statutory) Re-opening of Port Alma salt field Corio refinery relocation to Sea Lake complete with full year benefits for FY10 Bajool refinery upgrade – completion expected in first-half FY10 Indonesian refinery replacement – completion expected in first-half FY10 Implementation of the new ERP system Relocation of Corio head office to Melbourne
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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Soda Ash volumes grew only slightly Chemical volumes down with one less bulk shipment Food down slightly with reduced use of salt in food Pool volumes growing with increased demand from both new pools, a higher than normal rainfall in Queensland as well as consumer preference for salt over chlorine Hide volumes down due to lower slaughter numbers Stockfeed flat due to good pasture growing conditions Export volumes to New Zealand JVs and Japan stable Indonesia stable but expect to grow with new refinery Other volumes growing steadily
Segment 2009 2008 Soda Ash 580.4 574.3 Chemical 143.4 172.1 Food 93.9 96.0 Pool 63.3 58.3 Hide 68.5 71.8 Stockfeed 39.4 38.9 Export 118.2 118.1 Indonesia 69.7 68.1 Other 24.9 23.4 Total Tonnes 1,202 1,221
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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Sales growth of 6.5% despite a 1.5% fall in volumes as a result of an improved margin management Crude salt write-offs of $3.5m mostly associated with reopening the Port Alma field ERP implementation costs of $1.3m Higher than normal cost structures associated with:
volumes of salt from South Australia to Queensland to meet market demand JV distributions increased by 2.9% Normalised result stable at $24.8m
Profit & Loss 2009n 2009 2008 Sales 101.5 101.5 95.3 EBITDA before add-backs 17.6 17.6 22.1 Add-back: Crude salt write-off 3.5
1.3
22.4 17.6 22.1 Depreciation (4.7) (4.7) (4.2) EBIT (excl. JVs) 17.7 12.9 17.9 JV distributions (after tax) 7.1 7.1 6.9 Result from Operations 24.8 20.0 24.8
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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Funds Employed decreased with a devaluation of the salt fields by $22.8m Underlying returns increased from 9.9% to 10.7% Cash Conversion lower at 63% for the year following higher than normal development capital expenditure associated with:
Consolidated Cheetham 2009n 2009 2008 Cheetham Funds Employed 187.2 187.2 205.3 Salt JV Investments 44.2 44.2 44.2 Funds Employed & Invested 231.4 231.4 249.5 Combined ROFE/ROI 10.7% 8.6% 9.9%
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Cashflow 2009n 2009 2008 EBITDA plus Salt JV NPAT 29.5 24.7 29.0 Net Cashflow before int. & Tax 18.6 13.8 23.1 NCF / EBITDA plus Salt JV’s 63% 56% 80%
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Macro Economic Environment Salt demand typically grows in line with population growth and GDP Cost pressures mirror those in the mining and transport industries Market Environment Increasing demand for pool salt Food salt demand stable as reductions in the salt content of food products is being offset by population growth and a switch to iodised salt in baking Strategic Actions Completion of Bajool and Indonesian refinery upgrades in first half of FY10 Manufacturing and supply chain efficiency improvements Efficiency benefits to flow from ERP implementation
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Strategy Unlocking the potential value of land close to urban centres and surplus to
Some small initial sales with potential larger sales offering more significant longer term revenue streams Stephen Butler appointed Property Manager in November 2008 Corio Site Corio hide plant relocated to an upgraded Sea Lake site Cheetham head office moved from Corio to new Melbourne corporate office Corio site then sold for $2.5m and settled in August 2009 Lara Site Cheetham owns a 912ha site adjacent to Avalon airport Plans for airport expansion, including potential international passenger terminal
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Avalon air strip Avalon Airport Lara Salt Fields
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Avalon air strip Avalon Airport Lara Salt Fields
Potential PropertyDevelopment Area
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Aerial view of Dry Creek Crystalliser Ponds
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Key asset is the potential Dry Creek redevelopment, 12kms from Adelaide CBD In May 2008 Ridley entered into a Heads of Agreement with Delfin Lend Lease to investigate the feasibility of redeveloping the salt fields for residential and/or mixed-use development State Government 30 year plan for Greater Adelaide, within which the Dry Creek salt field has been nominated as a “key urban expansion” site Phase 1 technical feasibilities now completed and a preliminary Project Master Plan prepared, key components of which are:
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Initial Phase 1 feasibility complete More detailed Phase 2 feasibility expected to be complete by December 2009 Land Management Corporation committed to feasibility extension Detailed investigations into relocation of salt field to Cheetham northern leases are continuing Property related costs expected to be $1.0m in FY10
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Continuing Operations 2009n 2009 2008 Sales Revenue 819.4 819.4 838.4 EBIT - Agriproducts 26.4 24.4 15.0 EBIT - Cheetham 17.7 12.9 17.9 Salt Joint Ventures 7.1 7.1 6.9 Corporate Costs (6.8) (6.8) (7.6) Result from Operations 44.4 37.6 32.2 Net Finance Expense (8.0) (12.4) (14.7) Tax Expense excl sig. items (8.3) (4.9) (1.6) Net Profit pre sig. items 28.1 20.3 15.9
Group NPAT before significant items from continuing operations toward the high end of market guidance Record result for Agriproducts Relatively flat underlying result in Cheetham diminished by some unusually high costs Net finance cost skewed to first half year prior to debt retirement Effective tax rate well below 30% due to
JV distributions, R&D tax concession and other perennial deductions Receipt of prior year tax refund in 2009
Note: 2009n is per normalisations on page 3
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Continuing Operations 2009n 2009 2008 Net Profit pre sig. items 28.1 20.3 15.9 Significant items after tax (7.4) (7.4) (10.4) Net Profit post sig. items 20.7 12.9 5.5 Average Shares (million) 303.1 303.1 295.9 EPS post sig. items (cps) 6.8 4.3 1.9 Interim dividend per share 3.5 3.5 3.5 Annual dividend per share 7.0 7.0 7.0
Minimal equity issues other than DRP EPS of 4.3, however on a normalised basis would be 6.8 Unfranked final dividend of 3.5 cps Annual dividend of 7c per share maintained Suspension of Dividend Reinvestment Plan
Note: 2009n is per normalisations on page 3
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A$m 2009 2008 Change NPAT from continuing
significant items 20.3 15.9 27.6% Less: Significant items net of tax (7.4) (10.4) (28.9%) NPAT from continuing
12.9 5.5 135% (Loss)/Profit from discontinued
(52.4) 7.3 Net (Loss)/Profit after tax (39.5) 12.8 Minority Interest
Profit/(Loss) attributable to Ridley members (39.5) 10.5
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Continuing NPAT result of $12.9 reflected earlier Loss of $52.4m associated with the sale of Ridley Inc as reported at the half year
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A$m 2009 2008 Corporate Restructuring Costs (pre tax) 1.2 2.5 Takeover Defence Costs (pre tax) 0.1 1.7 Impairment of Supplements business (pre tax) 7.8
and impairments (pre tax)
Significant Items (pre tax) 9.1 14.8 Tax on significant items (2.4) (4.4) Tax Losses written off 0.7
7.4 10.4
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Corporate restructuring costs of $1.2m associated with relocation of Sydney corporate head office to Melbourne GrainCorp takeover defence costs of $139K following the $1.7m spent last year $7.8m impairment of the Supplements business as reported at the half year Previously recognised start up tax losses associated with the Cheetham Japanese business written off
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Balance Sheet (A$m) 2009 2008 Total Current Assets 175.7 207.2 Total Current Liabilities 121.1 120.2 Net Current Assets 54.6 87.0 Property Plant and Equipment 224.8 256.7 Investments 44.2 44.2 Intangibles 23.9 20.1 Other Non Current Assets
Total Non Current Assets 292.9 322.4 Borrowings 67.4 182.9 Deferred Tax Liabilities 2.3 10.4 Provisions 1.6 1.7 Total Non Current Liabilities 71.3 195.0 Net Assets excl Ridley Inc 276.2 214.4 Net Assets in Ridley Inc
Net Assets 276.2 369.4
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Reduction in Net Current Assets reflecting the significant working capital reduction PPE reduced with write-down of salt fields and sale of underperforming assets in Agriproducts Investments in the salt joint ventures stable Increase in intangibles associated with the new ERP platform Reduction in borrowings associated with debt retirement following the sale of Ridley Inc. Reduction in deferred tax liabilities Net assets in Ridley Inc now zero
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Working Capital (A$m) 2009 2008 Cash 0.3 1.8 Trade Debtors 88.4 102.2 Other Debtors, Prepay’ts and Div’s Receivable 6.0 13.0 Inventory 79.2 89.2 Tax Receivable 1.8
Total Current Assets 175.7 207.2 Trade Creditors 97.1 104.5 Provisions 11.5 14.0 Current Tax Liabilities 7.2
2.0 1.7 Derivative Financial Instruments 3.3
121.1 120.2 Working Capital (excl. Cash, Tax, Borrowings, Deriv’s) 65.0 86.0 Net Movement in Working Capital 21.0 (25.0)
Increased focus on timely debt collection A combination of lower input prices, less sites and tighter control over inventory levels and stock turnover has reduced working capital Tax receivable is prior year refund received after balance date Current tax liabilities of A $7.2m is liability to Canadian tax authorities re Ridley Inc., payable by end August 2009 Derivatives comprise fair value of interest rate positions required under banking covenants
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Items ($m) Agri Salt Total Sea Lake
3.3 Bajool Refinery
0.9 Port Alma
1.5 Indonesia
1.4 Cheetham Development
7.1 ERP 3.8 1.3 5.1 Total Development Capex 3.8 8.4 12.2 Maintenance Capex 6.1 1.4 7.5 Total Capex 9.9 9.8 19.7 Depreciation 6.7 4.7 11.4
$7.1m of development capital expenditures in salt $5.1m of ERP related capital expenditures Maintenance Capital Expenditures
$11.4m
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Continuing Operations A$m 2009 2008 Operating Cashflow before dividends received, interest and tax 58.1 7.9 Salt Joint Venture distributions 7.6 7.4 Net interest paid (13.2) (14.1) Tax payments received / (made) 0.5 (2.1) Operating Cashflow before Capex 53.0 (0.9) Capex – Property, Plant & Equipment (14.2) (19.1) Capex - ERP (5.1) (3.9) Proceeds from sales of NCA 2.9 0.3 Operating Cashflow after Net Capex 36.6 (23.6)
Operating Cashflow of $58.1m Salt joint venture distributions increase in line with inflation Net interest paid skewed to first half year prior to debt retirement Net tax received in 2009 year from refund of prior year tax Capex intangibles incurred on new ERP system for Ridley Agriproducts Sales proceeds arising from sale of non- performing assets
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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Continuing Operations A$m 2009 2008 Operating Cashflow after Net Capex 36.6 (23.6) Net Proceeds from Sale of Ridley Inc 91.6
(115.3) 34.6 Dividends Paid (13.7) (12.5) Net purchases of equity under employee equity plans (0.7) (0.6) Net Cashflow (1.5) (2.1) Operating Cash Conversion* 134% 35%
Proceeds from sale of Ridley Inc. of A $91.6m applied as part of the debt retirement for the year Cash dividends paid were 65% of the total dividend of $21.0m, the balance being from Dividend Reinvestment Plan Employee equity plan requirements to grant shares coming from on market purchases rather than issue of new capital
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
* Operating Cash Conversion = (Result from Operations + Depreciation) / (Operating Cashflow before dividends, interest and tax + Salt Joint Venture Distributions)
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK Note: Closing debt at 30 June 2009 of $69.1m includes both current and non-current borrowings
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
2009n 2009 2008 Net Debt 69 69 199 Equity 276 276 369 Total Assets 345 345 568 Gearing (Net Debt / Equity) 25.0% 25.0% 53.9% Equity / Total Assets 80% 80% 65% Net Debt / EBITDA* 1.2 1.4 2.5 EBITDA / Net Interest* 7.0x 4.0x 4.8x EBIT / Net Interest* 5.6x 3.0x 3.6 ROE* 8.5% 6.8% 7.1% ROE (11.6%) (13.2%) 2.8% EPS* 9.3 6.8 5.4 EPS 6.8 4.3 1.9 * Before significant items n = interest normalised at an assumed $8.0m for reduced net debt balance over full year (post sale of Ridley Inc,)
Gearing reduced from 54% to 25% Interest cover ratios show the low debt level relative to earnings ROE has improved on a normalised basis EPS growth is significant Term loan facilities approved through until December 2011
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FY09 a watershed year for simplifying the business Strong growth in underlying results Focus on our core business of processing value added agricultural products Strategic initiatives are well on track
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
Full year benefit of cost reduction in Agriproducts Absence of unusually large costs impacting on Cheetham Full year benefit of Corporate cost reductions offset by increase in property related costs Low debt and associated lower interest Slowdown in Dairy as a result of the GFC expected over FY10, offset by growth in poultry and aqua-feed volumes Reopening of Clifton mill supported by long term contractual arrangements to progressively deliver returns over the next 3 years Progressive growth over the medium term from consolidation and upgrades to the salt refineries and reopening of Port Alma salt field
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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Segment 2009n 2009 2008 Agriproducts
1,573 26.4 6.7 33.1 129.9 20.3% 1,573 24.4 6.7 31.1 129.9 18.8% 1,610 15.0 7.6 22.6 156.8 9.6% Cheetham
1,202 101.5 17.7 4.7 22.4 187.2 9.5% 1,202 101.5 12.9 4.7 17.6 187.2 6.9% 1,221 95.3 17.9 4.2 22.1 205.3 8.7% Salt JVs
7.1 44.2 16.1% 7.1 44.2 16.1% 6.9 44.2 15.6% Corporate Costs
6.8 6.8 7.6
INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
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INTR INTRODUCTION ODUCTION AGRIPR GRIPRODUCTS ODUCTS CHEETHAM CHEETHAM PR PROPER OPERTY TY FIN FINANCIALS ANCIALS OUTL OUTLOOK OOK
* A$ / tonne
*** US$ / bushel *** US$ / short ton
Australia* 2006 2007 2008 2009 % Change Feed Wheat 204 310 440 280 (36%) Barley 184 320 390 225 (42%) Canola 400 540 790 550 (30%) Fish Meal 1,371 1,890 1,200 1,700 42% United States 2006 2007 2008 2009 % Change US Corn** 2.80 4.00 7.24 3.47 (52%) Soybean** 5.85 8.25 16.05 12.26 (24% Soymeal*** 178 226 434 412 (5%)