introduction agriproducts cheetham property financials outlook · 2017. 9. 15. · 3 financial...
TRANSCRIPT
RIDLEY CORPORATION FY2009 RESULTS PRESENTATION
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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AGENDA
INTRODUCTION
FINANCIALS
AGRIPRODUCTS
CHEETHAM SALT
PROPERTY
OUTLOOK
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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FINANCIAL HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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 - 819.4
EBIT - Agriproducts 1 26.4 2.0 24.4
EBIT - Cheetham 2 17.7 4.8 12.9
Salt Joint Ventures 7.1 - 7.1
Corporate Costs (6.8) - (6.8)
Result from Operations 44.4 6.8 37.6
Net Finance Expense 3 (8.0) 4.4 (12.4)
Tax Exp. excl sig. items 4 (8.3) (3.4) (4.9)
Net Profit pre sig. items 28.1 7.8 20.3
Notes: 1. Agriproducts normalised for full year benefit of cost savings 2. Cheetham normalised for crude salt write off and ERP 3. Interest normalised for reduced net debt balance over full year (post sale of Ridley Inc.) 4. Tax on adjustments of 30%
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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
OPERATIONAL HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
RIDLEY AGRIPRODUCTS RESULTS PRESENTATION
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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HIGHLIGHTS
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
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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SALES VOLUMES
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 Queensland. Whilst still underperforming we continue to 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
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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PROFIT AND LOSS
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 - -
EBITDA 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
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Note: 2009n is per normalisations on page 3
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FINANCIAL SUMMARY
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%)
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Note: 2009n is per normalisations on page 3
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SEGMENT OUTLOOK
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
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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SEGMENT STRATEGY
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
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
CHEETHAM SALT RESULTS PRESENTATION
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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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
HIGHLIGHTS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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SALES VOLUMES
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
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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PROFIT AND LOSS
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:
reopening Port Alma; and
the need to transport significant 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 - -
Add-back: ERP 1.3 - -
EBITDA (excl. JVs) 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
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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RETURNS AND CASHFLOW
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:
Corio to Sea Lake relocation
Bajool upgrade
Indonesian plant replacement
Port Alma salt field
ERP
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%
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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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SEGMENT OUTLOOK
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
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
PROPERTY INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Strategy Unlocking the potential value of land close to urban centres and surplus to
operating requirements
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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LARA INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Avalon air strip
Avalon Airport
Lara Salt Fields
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DRY CREEK SALT FIELD INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Avalon air strip
Avalon Airport
Lara Salt Fields
Potential PropertyDevelopment Area
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DRY CREEK DEVELOPMENT AREA INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Aerial view of Dry Creek
Crystalliser Ponds
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DRY CREEK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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:
Site area 980ha of which Ridley owns 316ha
Approx 10,000 dwellings housing over 20,000 residents
Creation of 11km of developable waterfront land
A 40ha town centre and mixed use precinct
Two neighbourhood precincts
A 120ha saltwater recreational lake with ocean access and marina facilities
Creation of dedicated areas for new mangrove habitats and wetlands
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NEXT STEPS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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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FINANCIALS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
PROFIT AND LOSS
CAPITAL EXPENDITURE
NON TRADING ITEMS
BALANCE SHEET
WORKING CAPITAL
DEBT BRIDGE
CASHFLOW
FINANCIAL RATIOS
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PROFIT AND LOSS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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 ongoing permanent differences from salt 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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PROFIT AND LOSS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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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PROFIT AND LOSS
A$m 2009 2008 Change
NPAT from continuing operations before significant items
20.3 15.9 27.6%
Less: Significant items net of tax (7.4) (10.4) (28.9%)
NPAT from continuing ops post sig. items 12.9 5.5 135%
(Loss)/Profit from discontinued operations
(52.4) 7.3
Net (Loss)/Profit after tax (39.5) 12.8
Minority Interest - (2.3)
Profit/(Loss) attributable to Ridley members
(39.5) 10.5
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Continuing NPAT result of $12.9 reflected earlier
Loss of $52.4m associated with the sale of Ridley Inc as reported at the half year
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SIGNIFICANT ITEMS
A$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 -
Plant restructuring, closures and impairments (pre tax)
- 10.6
Significant Items (pre tax) 9.1 14.8
Tax on significant items (2.4) (4.4)
Tax Losses written off 0.7 -
Total Significant Items 7.4 10.4
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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
$7.8m impairment of the Supplements business as reported at the half year
Previously recognised start up tax losses associated with the Cheetham Japanese business written off
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BALANCE SHEET
Balance Sheet (A$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 - 1.4
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 - 155.0
Net Assets 276.2 369.4
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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
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 -
Derivative Financial Instruments - 1.0
Total Current Assets 175.7 207.2
Trade Creditors 97.1 104.5
Provisions 11.5 14.0
Current Tax Liabilities 7.2 -
Borrowings 2.0 1.7
Derivative Financial Instruments 3.3 -
Total Current Liabilities 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$7.2m is liability to Canadian tax authorities re Ridley Inc., payable by end August 2009
Derivatives comprise fair value of interest rate positions required under banking covenants
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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CAPITAL EXPENDITURE INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Items ($m) Agri Salt Total
Sea Lake - 3.3 3.3
Bajool Refinery - 0.9 0.9
Port Alma - 1.5 1.5
Indonesia - 1.4 1.4
Cheetham Development - 7.1 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 of $7.5m as against depreciation of $11.4m
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CASHFLOW
Continuing Operations A$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 $58.1m Salt joint venture distributions increase
in line with inflation Net interest paid skewed to first half
year prior to debt retirement Net tax received in 2009 year from
refund of prior year tax Capex intangibles incurred on new ERP
system for Ridley Agriproducts Sales proceeds arising from sale of non-
performing assets
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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CASHFLOW
Continuing Operations A$m 2009 2008
Operating Cashflow after Net Capex 36.6 (23.6)
Net Proceeds from Sale of Ridley Inc 91.6 -
Net debt (retirement) / draw down (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
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
* Operating Cash Conversion = (Result from Operations + Depreciation) / (Operating Cashflow before dividends, interest and tax + Salt Joint Venture Distributions)
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DEBT BRIDGE F08 TO F09 INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
Note: Closing debt at 30 June 2009 of $69.1m includes both current and non-current borrowings
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FINANCIAL RATIOS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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
Underperformance of Agriproducts is addressed
Options for the commercialisation of the Dry Creek property development opportunity continue to be developed through FY10
CONCLUSIONS INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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OUTLOOK INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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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INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
QUESTIONS AND
ANSWERS
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APPENDICES INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
SEGMENT SUMMARY
INPUT PRICES
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SEGMENT SUMMARY
Segment 2009n 2009 2008
Agriproducts - Tonnes (kt) - EBIT - Depreciation - EBITDA - Funds Employed - ROFE
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 - Tonnes (kt) - Revenue - EBIT - Depreciation - EBITDA - Funds Employed - ROFE
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 - Profit from Associates - Funds Invested - Return on Investment
7.1 44.2
16.1%
7.1 44.2
16.1%
6.9 44.2
15.6%
Corporate Costs - Actual 6.8 6.8 7.6
INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
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INPUT PRICES INTRODUCTION AGRIPRODUCTS CHEETHAM PROPERTY FINANCIALS OUTLOOK
* 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%)