QUESTIONS ANSWERS ANSWERS PROPERTY AND AND CHEETHAM - - PowerPoint PPT Presentation

RIDLEY CORPORATION FY2010 RESULTS PRESENTATION

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

FINANCIAL HIGHLIGHTS

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 G NPAT f $29 1 $8 8 43%  Group NPAT of $29.1m, up $8.8m or 43%

• n 2009 before significant items; up

$16.2m or 125% after significant items  Second successive record EBIT result for Consolidated result 2010 $m 2009 $m Sales Revenue 728.0 819.4  Second successive record EBIT result for AgriProducts of $29.0m despite Dairy sector weakness  Cheetham returns to historical level of EBIT - AgriProducts 29.0 24.4 EBIT - Cheetham 16.8 12.9 earnings  Highly reliable earnings and cash streams from joint ventures Salt Joint Ventures 7.2 7.1 Corporate Costs (6.8) (6.8) Result from Operations 46 2 37 6  Corporate costs in line with budget  Net interest down by $4.3m, or 35%, on lower borrowings Result from Operations 46.2 37.6 Net Finance Expense (8.1) (12.4) Tax Exp. excl sig. items (9.0) (4.9) g  Higher tax attributable to pre-tax earnings improvement  No significant items for FY10 Net profit pre sig. items 29.1 20.3 Significant items

• (7.4)

2  No significant items for FY10 Net profit after significant items 29.1 12.9

FINANCIAL HIGHLIGHTS

Includes Ridley Inc Post Ridley Inc.

Sale

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

FY06 FY07 FY08 FY09 # FY10f FY10a ROFE (%) 8.2% 6.7% 3.2% 4.7% 9.2 – 9.8% 10.4% Includes Ridley Inc. Post Ridley Inc.

ROFE in double figures for first time

( ) EBITDA ($m) 81.5 74.4 48.3 41.3 54 - 59 58.5 EBIT ($m) 59.7 51.7 36.3 30.2 43 - 48 46.2

NPAT above c.FY06 levels

NPAT ($m) 27.7 22.7 10.4 12.9 28 - 30 29.1 Net Debt ($m) 171.5 171.8 199.2 69.1 70 - 75 72.0 Net Debt / EBITDA 2 1x 2 2x 3 9x 1 7x 1 3x - 1 5x 1.2x

Strongest debt

Net Debt / EBITDA 2.1x 2.2x 3.9x 1.7x 1.3x 1.5x 1.2x Op Cash flow * ($m) 39.5 37.4 16.4 53.0 50 - 55 39.4 EPS (cents) 10.0 7.9 3.5 4.3 9.1 - 9.7 9.5

servicing capacity for years

Cash flow conversion (%) 48% 50% 34% 128% 93% 93% EPS growth (%)

• 12%
• 21%
• 55%

20% 117 - 131% 126%

Strong EPS growth

3 Business Transformation

# FY09 result excludes loss on sale of Ridley Inc. and any Ridley Inc. result.

• Operating cash flow is EBITDA plus JV dividends
• and w orking capital

RIDLEY AGRIPRODUCTS RESULTS PRESENTATION

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

HIGHLIGHTS

 R d EBIT l f $29 0 b i ll i i d f f h

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 Record EBIT result of $29.0m, business well positioned for further growth  Clifton mill recommissioned to service Queensland demand from new  Clifton mill recommissioned to service Queensland demand from new long term Inghams and Darwalla poultry contracts  Improved margin and logistics management of Packaged Products  Doubling of capacity for Aqua-feed through new facility at Inverell, NSW  I d k t t ti f A f d  Increased market penetration for Aqua-feed  Further $2.5m turnaround for Supplements positive, EBIT contribution for the year y  Full year benefit of prior year cost reduction initiatives

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SALES VOLUMES

S t 2010 2009

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 Poultry: growth from new long term customer contracts Sector 2010 (kt) 2009 (kt) Poultry 764 708  Poultry: growth from new long term customer contracts, market growth of chicken consumption and growth in niche turkey and duck sectors  Aqua-feed: sales growth and market penetration continued Aqua-feed 47 37 Packaged 90 106

• ver FY10 Aqua-feed now a market leader in all major fin fish

and prawn species in Australia.  Packaged Products: volumes down primarily due to the downturn in the dairy sector but earnings maintained through Dairy 215 282 Pig 325 330 downturn in the dairy sector but earnings maintained through improved margin management  Dairy: significant drop in volumes as farmers reacted to milk price reductions and sought to cut feed input costs. Supplements 30 19 Beef & Sheep 35 34  Pig: producer profitability and stabilised pig numbers have seen unchanged volumes over the period  Supplements: significant volume increase through favourable seasonal conditions and improved customer & p Other 64 57 Total Tonnes 1 570 1 573 favourable seasonal conditions and improved customer engagement  Beef & Sheep: volumes remain largely unchanged across the period 6 Total Tonnes 1,570 1,573

FINANCIAL SUMMARY

 R d EBIT lt f $29 0 i

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 Record EBIT result of $29.0m is sustainable and the business is well positioned for further growth  Sales decline largely reflect loss Profit & Loss 2010 $m 2009 $m Sales 620.0 716.9 g y

• f Dairy volumes offset by gains

in poultry and Aqua-feed  EBITDA per tonne increased by $3 04 or 15% on 2009 result EBITDA 36.6 31.1 Depreciation (7.6) (6.7) EBIT 29.0 24.4 $3.04, or 15% on 2009 result EBIT 29.0 24.4 EBITDA per tonne $23.31 $20.27 Balance Sheet  ROFE greater than 20% recorded Funds Employed 135.7 129.9 ROFE (EBIT/Funds Employed) 21.4% 18.8% g for the first time following an increase of 2.6% to 21.4% 7

CASH FLOW

 $5 5 (18%) i t i

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 $5.5m (18%) improvement in EBITDA over 2009  Net working capital movement

Cash flow 2010 $m 2009 $m EBIT 29.0 24.4

• increase of $2.5m in FY10

to reflect inventory positions at year end;

• l

f ll i FY09 fl ti

Depreciation 7.6 6.7 EBITDA 36.6 31.1

• large fall in FY09 reflecting

fall in raw materials prices from 30/6/08 to 30/6/09.  Higher than normal Capex -

EBITDA 36.6 31.1 Net Working Capital Movement (2.5) 23.3 Operating Cash flow 34 1 54 4

 Higher than normal Capex ERP $5.5 million  FY10 Cash flow percentage to EBITDA influenced by working i l i d C

Operating Cash flow 34.1 54.4 Capex less asset sale proceeds (11.1) (9.9) Net Cash flow pre interest

capital increase and Capex

Net Cash flow pre interest and tax 23.0 44.5 Op Cash flow / EBITDA (%) 63% 143% 8

SEGMENT OUTLOOK

Macro Economic Environment

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

ac o co o c

• e t

 Different drivers to broader economy  Limits to the availability of arable land and increased focus on intensive  Limits to the availability of arable land and increased focus on intensive feeding  2050 world growth requirements#:

• 70% increase in food production required by growing population
• Meat production to increase by 200mt to 470mt
• Cereal production to increase by 1bt to 3.1bt

p y  World population growth & increased demand for protein  Higher food quality standards g q y  Increasing food safety pressures ….all leading to increased pressure to achieve greater and safer animal

9

g p g productivity

#: UN Food & Agriculture Organisation, Sept 2009

GROWTH PROSPECTS

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

Growing poultry market Growing poultry market  Increasing consumer preference for fresh white meat products  Increasing Ridley market penetration supported by long term contracts g y p pp y g Growing market for aquaculture products  Increasing reliance on aquaculture given diminishing wild fish stocks  Technological advantage in Aqua-feed solutions  Production constraints removed  Ridley unrestrained to target and secure additional market share  Ridley unrestrained to target and secure additional market share Recovery in Dairy sector  Signs of recovery in Dairy sector rising milk prices and confidence  Signs of recovery in Dairy sector - rising milk prices and confidence  Return to “normal” demand volumes – will take 12 to 24 months to return to 2008 levels

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SEGMENT STRATEGY

Strategic Actions for FY11

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

Strategic Actions for FY11  Aligning Ridley poultry focus to regional growth areas in South Australia and South East Queensland  Securing additional Aqua-feed volumes through continuous improvement of specialised diets for domestic customers and further growth in Asia-Pacific growth in Asia Pacific  Replacing lost pig volume with new customer base  Growing Packaged Products through new product offerings channel  Growing Packaged Products through new product offerings, channel relationships, and product differentiation  Providing innovative, cost effective feed solutions for the Dairy sector  Generating Ridley hurdle rate from Supplements assets in final year of turnaround strategy  I l ti th ERP l tf th h t th b i

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 Implementing the new ERP platform throughout the business  Continue to examine appropriate ‘bolt on’ acquisitions

CHEETHAM SALT RESULTS PRESENTATION

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

HIGHLIGHTS

 EBIT lt f $16 8 $3 9 30% 2009

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 EBIT result of $16.8m, up $3.9m or 30% on 2009  Steady growth in Joint Venture NPAT to $7.2m, with major expansion in progress in New Zealand progress in New Zealand  Robust domestic sales with growth across most sectors  Continued earnings growth in Japan and Indonesia C g g J p  Completion of state of the art refinery in Indonesia  Completion of Bajool refinery upgrade although some one-off p j y pg g

• perational costs incurred during transition

 Sustainable salt field management with successful implementation in Queensland of severe rain event emergency plan Queensland of severe rain event emergency plan  New ERP system leveraged to improve productivity, visibility and control

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SALES VOLUMES

 Soda Ash

• l mes do n slightl

d e to eaker

S t 2010 2009

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 Soda Ash volumes down slightly due to weaker demand from Penrice  Chemical includes one additional chlor-alkali water treatment shipment

Sector 2010 (kt) 2009 (kt) Soda Ash 566.8 580.4

water treatment shipment  Food population increase offset by some reduction in salt intake  Pool volumes increased slightly due to

Chemical 164.6 143.4 Food 94.4 93.9

 Pool volumes increased slightly due to consumer preference for salt over chlorine  Hide volumes down due to lower slaughter numbers and strong competitive pressures

Pool 64.2 63.3 Hide 56.4 68.5

g p p  Stockfeed slightly up on last year due to drier conditions in Queensland  Export volumes to Japan have increased by

Stockfeed 41.2 39.4 Export 120.9 118.2

 Export volumes to Japan have increased by 2.7kt  Indonesia volumes stable  Oth i t d b ff l i li

Indonesia 70.1 69.7 Other 93.2 24.9 14

 Other impacted by one-off low margin recycling services for 2 customers.

Total Tonnes (kt) 1,272 1,202

FINANCIAL SUMMARY

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 Sales revenue growth of 6.3% in line with 5.8% volume increase  No one-off crude salt losses or ERP implementation costs in 2010 (2009:

Profit & Loss 2010 $m 2009 $m Sales 107.9 101.5

implementation costs in 2010 (2009: $4.8m)  Approximately $2m higher than normal cost structures associated with:

EBITDA (excl. JVs) 21.3 17.6 D i ti (4 6) (4 7)

• Delayed commissioning of Bajool; and
• freight to transport significant volumes
• f salt from South Australia to

Depreciation (4.6) (4.7) EBIT (excl. JVs) 16.8 12.9

• f salt from South Australia to

Queensland to meet market demand  Share of JV after tax earnings up by 2.9%, but cash withheld to finance capital

JV earnings after tax 7.2 7.1 Operating result 24 0 20 0

p project  Result of $24.0m up $4.0m, or 20%, on 2009.

Operating result 24.0 20.0 15

FINANCIAL SUMMARY (cont’d)

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 Dominion Salt JV has retained funds to internally finance major capital works rather than distribute cash from after tax profits, thereby

Balance sheet 2010 $m 2009 $m Cheetham Funds Employed 188.2 187.2

p y increasing the value of the investment  ROFE up 1.5% on 2009 and into double figures at 10 1%

Salt JV Investments 49.6 44.2 Funds Employed & Invested 237.8 231.4

double figures at 10.1%  Cash Conversion higher at 66% for the year despite higher than normal development capital expenditure

p y Combined ROFE / ROI 10.1% 8.6%

de e op e t cap ta e pe d tu e associated with:

• Bajool upgrade
• Cilegon refinery (Indonesia)

Cash flow EBITDA plus Salt JV after tax fi 28.5 24.7

• Cilegon refinery (Indonesia)

profits Net Cash flow before int. & Tax 18.8 13.8 Net Cash Flow / EBITDA plus 66% 56% 16 Net Cash Flow / EBITDA plus Salt JV’s 66% 56%

SEGMENT OUTLOOK

M E i E i t

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

Macro Economic Environment  Salt demand typically grows in line with population growth and GDP  C t i th i th i i d t t i d t i  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 products is being offset by population growth Strategic Actions  Delivery of benefits from capital upgrades at Bajool  Delivery of benefits from capital upgrades at Bajool  Supply chain efficiency improvements  Sustainable salt field management

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 Sustainable salt field management  Harness new refinery at Cilegon for growth in Indonesia

PROPERTY

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

Strategy Strategy  Strategy remains to unlock the potential value of land close to urban centres and surplus to operating requirements  Some small initial sales but with potential larger scale sites the focus is on delivery of longer term revenue streams offering shareholders greater value in real terms greater value in real terms  Alternative use opportunities emerging and under evaluation for a number of sites  Corio site sold for $2.5m and settled in August 2009  Pakenham site subdivision completed in preparation for asset li ti realisation  Desktop planning and investigations underway for 912ha Lara site adjacent to Avalon airport, in the public forum as Melbourne’s second adjacent to Avalon airport, in the public forum as Melbourne s second international airport

LARA

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

Avalon Airport Lara Salt Fields

Avalon air strip

912ha site adjacent to Avalon airport, Vic Preliminary discussions on re-zoning held Preliminary discussions on re-zoning held Medium term 1-3 years Land available now

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Carrying value ~$0.5m

DRY CREEK SALT FIELD

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

Avalon Airport Lara Salt Fields

Development of the Dry Creek site is consistent w ith Government’s 30 year plan for Ad l id Ridl i ki ith

• Adelaide. Ridley is working w ith

all stakeholders to establish a pathw ay to address the

• utstanding issues and facilitate

Salt condensing ponds being the dark land masses extending north

Avalon air strip

• utstanding issues and facilitate

a development of the site in the long term.

g w est up the coast line

Primary potential property development area

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PROFIT AND LOSS

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

P fit d l 2010 2009  Group NPAT of $29 1m slightly above Profit and loss 2010 $m 2009 $m Sales Revenue 728.0 819.4  Group NPAT of $29.1m slightly above midpoint of guidance of $28-$30m given at half year  Second successive record result for EBIT - AgriProducts 29.0 24.4 EBIT - Cheetham 16.8 12.9 S lt J i t V t 7 2 7 1  Second successive record result for AgriProducts  Severe rain event plan successfully averted repetition of 2009 crude salt Salt Joint Ventures 7.2 7.1 Corporate Costs (6.8) (6.8) Result from Operations 46 2 37 6 losses in Northern Queensland  High 2009 interest cost prior to December 2008 $96m debt retirement; 2010 debt levels within a tightly Result from Operations 46.2 37.6 Net Finance Expense (8.1) (12.4) Tax Expense excl sig. items (9.0) (4.9) 2010 debt levels within a tightly controlled range affected by dividend timing.  24% effective tax rate for FY10 well Net profit pre sig. items 29.1 20.3 Significant items

• (7.4)

 24% effective tax rate for FY10 well below 30% due to ongoing permanent differences from salt JV distributions, R&D tax concession and other perennial deductions 21 Net profit after significant items 29.1 12.9  No significant items

BALANCE SHEET

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 I i C t A t fl ti h Balance Sheet 2010 $m 2009 $m Total Current Assets 179.6 173.6  Increase in Current Assets reflecting cash

• n hand of $7.0m, $10.2m reduction in

debtors offset by $11.3m of inventory build  $17.1m of P,P&E additions offset by $3.2m Total Current Liabilities 117.1 121.1 Net Current Assets 62.5 52.5 Property, plant & ( & ) 225.2 224.8 , y

• f disposals, including sale of Corio

property; $11.2m of depreciation  Investments increased due to:

• Dominion Salt joint venture retaining

equipment (P,P&E) Investments 50.3 44.2 Intangibles 29.2 23.9

• Dominion Salt joint venture retaining

funds to finance profit-improving capital project; and

• Investment for new Aqua-feed plant at

Inverell Total Non Current Assets 304.7 295.0 Borrowings 77.1 67.4 Deferred Tax Liabilities 3.9 2.3 Inverell  Increase in intangibles due to capitalisation of costs associated with implementation of new ERP platform Provisions 1.0 1.6 Total Non Current Liabilities 82.0 71.3  Level of borrowings consistent with last year (after allowing for $7.0m cash on hand) due to full cash dividend of $21.5m for the year and settlement of $7.9m of Canadian tax liability from operating cash 22 Net Assets 285.2 276.2 Canadian tax liability from operating cash flows

WORKING CAPITAL

Working Capital 2010 2009

 Increased focus on credit limit

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

g p $m $m Cash 7.0 0.3 Trade Debtors 77.7 88.4

 Increased focus on credit limit management & timely debt collection  Inventory increase of $11.3m

Other Debtors and prepayments 4.4 3.9 Inventory 90.5 79.2 Tax Receivable

• 1.8

y reflects $9.0m of longer raw material positions compared to falling market at prior year end plus salt inventory build in Queensland

Total Current Assets 179.6 173.6 Trade Creditors 96.1 97.1 Provisions 10.5 11.5

y  Prior year tax receivable received in full in 2H FY10  Current tax liabilities of A$7 3m is

Tax Liabilities 7.3 7.2 Borrowings 2.0 2.0 Derivative Financial Instruments 1.2 3.3 T t l C t Li biliti 117 1 121 1

 Current tax liabilities of A$7.3m is current year liability to ATO; prior year was owing to Canadian tax authorities re Ridley Inc., and was settled in August 2009

Total Current Liabilities 117.1 121.1 Working Capital (excl. Cash, Tax, Borrowings, Derivatives) 66.0 62.9

settled in August 2009  Slight increase in working capital a conscious strategy decision on raw material pricing and salt inventory 23

Net Movement in Working Capital 3.1 21.0

p g y levels

CAPITAL EXPENDITURE

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 $7 3 f d l t it l Items Agri $m Salt $m Total $m Bajool Refinery

• 4.8

4.8  $7.3m of development capital expenditures in Cheetham Salt, primarily to complete the refinery upgrade program Indonesia Refinery

• 2.1

2.1 Other 3.5 0.4 3.9  $5.5m ERP implementation with first site achieved in the year  Clifton mill upgraded to ERP 5.5

• 5.5

Total Development 9 0 7 3 16 3 pg accommodate new Inghams and Darwalla Queensland volumes  Maintenance Capex of $5.9m t d i ti f $12 3 Total Development Capex 9.0 7.3 16.3 Maintenance Capex 2.6 3.3 5.9 compares to depreciation of $12.3m  Inverell investment of only $1.2m to effectively double Ridley Aqua-feed capacity Inverell investment 1.2

• 1.2

Total Capex 12.8 10.6 23.4 capacity  Significant outlay of $23.4m from

• perating cash flow, 70%

developmental in nature 24 p

CASH FLOW

C h fl 2010 2009  Strong operating cash flow of $49.4m;

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

Cash flow 2010 $m 2009 $m Operating Cash flow before dividends received, interest and 49.4 58.1 2009 inflated by working capital reduction from high opening debtor and inventory positions  Salt joint venture distributions normally dividends received, interest and tax Salt Joint Venture distributions 5.4 7.6 Net interest paid (8 6) (13 2)  Salt joint venture distributions normally 100% of after tax profits but funds retained for Dominion Salt capital project  Net tax paid for 2010 principally Net interest paid (8.6) (13.2) Tax payments received / (made) (6.8) 0.5 Operating Cash flow before 39.4 53.0  Net tax paid for 2010 principally comprises payment of prior year Canadian tax liability of $7.9m offset by $1.8m ATO tax refund received in 2H Capex Capex – P,P&E, ERP & Inverell (23.4) (19.3) Proceeds from sale of Corio 3.0 2.9  Sales proceeds include $2.5m from sale

• f former Cheetham Salt head office at

Corio vacated after centralisation to Melbourne Dividends paid (21.4) (13.7) On market purchase of equity under employee share scheme (0.8) (0.7)  Dividends paid wholly in cash in 2010; balance was paid by DRP in 2009  Slight increase in net debt following 100% h di id d hi h d l t 25 under employee share scheme Net Cash flow (3.2) 22.2 100% cash dividends, high development capex, and Canadian tax liability settlement

FINANCIAL RATIOS

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

2010 $m 2009 $m * Net Debt 72.0 69.1  Gearing stable at 25%  Very strong debt servicing capacity Net Debt 72.0 69.1 Equity 285.1 276.2 Total Assets 484.3 468.6  ROE has improved significantly to exceed 10% for the first time  EPS growth is significant, up Gearing (Net Debt / Equity) 25.2% 25.0% EBITDA 58.5 41.3 N t D bt / EBITDA 1 2 1 7  EPS growth is significant, up 121% or 5.2 cents per share  Persistent high conversion of earnings to cash Net Debt / EBITDA 1.2x 1.7x EBIT / Net Interest 5.7x 2.4x Operating cash flow / 93% 128%  Term loan facilities approved through until December 2011 but to be renegotiated by 31 D b 2010 p g EBITDA ROE/ROFE 10.4% 4.7% EPS* 9.5c 4.3c December 2010 26 EPS 9.5c 4.3c

* Before Ridley Inc. but after significant items in prior year

CONCLUSIONS

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 2009 was a watershed year for simplifying the business that has enabled the 2010 result to have transparency and simplicity  Focus on our core business of processing value added agricultural products is generating rewards  Strategic initiatives are delivering as planned  Completion of AgriProducts ERP implementation  Completion of AgriProducts ERP implementation  Options for the development of the Dry Creek and other sites have been advanced with further progress expected in 2011 been advanced with further progress expected in 2011  Strong growth in results clearly evidenced by $29.1m NPAT

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 Final 2010 dividend increased to 3.75 cents per share

OUTLOOK

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

 Recovery in Dairy has commenced, will take 12-24 months, but will see uplift in volume and earnings for Ridley  Continued growth in poultry and Aqua feed volumes  Continued growth in poultry and Aqua-feed volumes  Continued volatility in raw material input prices  New refineries expected to provide a step up in Cheetham Salt  New refineries expected to provide a step up in Cheetham Salt earnings and rationalisation of freight costs  Low, stable levels of debt with significant headroom in debt servicing capacity  Strong cash conversion with capital expenditure back to levels closer to depreciation than in 2010 and cash dividend stream maintained to depreciation than in 2010 and cash dividend stream maintained  Continued focus on effective management of working capital  Opportunities for “bolt-on” acquisitions in AgriProducts

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 Opportunities for bolt on acquisitions in AgriProducts

INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK

QUESTIONS AND AND ANSWERS ANSWERS

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