Ricegrowers Ltd. Class B · ASX:SGLLV

Ricegrowers Ltd. Class B — Investor Presentation (March 2019)

18 slides from Ricegrowers Ltd. Class B's investor presentation, Mar 7, 2019

  1. Slide 1: Rice Industry Field Day: Global Market and Sustainability Update

    Rice Industry Field Day Global Market and Sustainability Update Rob Gordon - Chief Executive Officer Thursday 7 March 2019

  2. Slide 2: Global Outlook / Sustainability Update

    Global Outlook • Global Market • California Developments • Global Stockpiles • Foreign Exchange Sustainability Update 2

  3. Slide 3: Medium Grain Prices: Tender Markets

    Medium Grain Prices: Tender Markets US$/tonne (FOB Origin Port) Japan Minimum Access Pricing (Since 2007) 1,300 Period since last Field Day 1,200 1,100 1,000 900 800 700 600 500 400 Source: Creed Report 3

  4. Slide 4: California Annual Plantings

    California Annual Plantings '000 acres California Rice Acres Planted 600 595 585 567 561 560 550 562 558 541 Forecast Range 533 534 526 500-530 520 528 519 506 509 480 473 4… 440 445 Long term aveage of CA plantings has been lowered (to ~500,000 acres) 429 due to competition from increased permaname

  5. Slide 5: California: Conditions for our Major Competitor

    California: Conditions for our Major Competitor  While it is still early in the cycle, there is presently ample water in California and 2019 plantings are expected to be in the range between 500,000-530,000 acres  The years of +540,000 acres of rice plantings are unlikely given the expansion of al

  6. Slide 6: Global Stockpiles still High

    Global Stockpiles still High Million tonnes Rice Stockpiles: China / Thailand / Egypt + 'Rest of World' 180 China Thailand Egpyt Rest of the World 160 140 120 100 80 60 40 20 0 Source: USDA 6

  7. Slide 7: Chinese Stockpiles and Exports Increase

    Chinese Stockpiles and Exports Increase  As a result of high floor prices for domestic farmers, China stockpiles have increased by around 6% to 116 million tonnes, which accounts for 69% of overall global stockpiles  China continues to increase exports, especially into lower returning markets such

  8. Slide 8: Foreign Exchange Movements – A$/US$

    Foreign Exchange Movements – A$/US$ A$/US$ (since January 2015) 0.85  Weaker A$/US$ exchange rate is favourable for international rice sales 0.80  SunRice’s rice price is sensitive to exchange rate fluctuations 0.75  US central bank commentary suggests US rates are presently in neutral position 0

  9. Slide 9: Is the A$ Set for Further Depreciation?

    Is the A$ Set for Further Depreciation? US Ten Year Yield 10 Year Rate Spread - Aus v US (Since 2012) AUD/USD 3.0 1.10 1.05 2.5 1.00 2.0 We flagged that SunRice anticipated the 0.95 depreciation of the AUD at the 2018 Field Day 1.5 0.90 1.0 0.85 0.80 0.5 0.75 0.0 0.70 -0.5 0.65 10 Year Bond Spread A

  10. Slide 10: Iron Ore Pricing versus AUD/USD

    Iron Ore Pricing versus AUD/USD Iron Ore Price US$ Iron Ore Price versus AUD/USD AUD/USD 180 1.10 160 1.05 1.00 140 Movements since 2018 Field Day 0.95 120 0.90 100 0.85 80 0.80 60 0.75 40 0.70 20 0.65 Iron Ore AUD/USD 0 0.60 Source: Bloomberg 10

  11. Slide 11: Crop Size and Milling Yield

    Crop Size and Milling Yield Crop Size and Average MG Milling Yield '000 tonnes Milling Yield (%) Crop Size ('000 tonnes) - LHS Milling Yield 1,200 60 59.3% 58.5% 57.4% 57.2% 1,000 55 54.9% 800 55.4% 51.5% 600 50 48.3% 400 45 200 800 963 1,161 829 802 625 690 244 50 0 40 Source: SunRice 11

  12. Slide 12: Pricing Indicators: On Balance Remain Positive

    Pricing Indicators: On Balance Remain Positive World Rice Prices Foreign Exchange Milling Yields Crop Size Branded Markets & Sale of Premium Varieties Ensure Stronger Pricing 12

  13. Slide 13: SunRice Provides Reliable Paddy Price Indicators

    SunRice Provides Reliable Paddy Price Indicators  SunRice continues to provide growers with A$/tonne Crop Size and Paddy Price (since CY11) 450 reliable price range $415 C18 Range $385-410 indicators and guidance $405 400 $395  Regular adjustments to $379 350 price range guidance are $317 communic

  14. Slide 14: Sustainability – A local and global responsibility

    Sustainability – A local and global responsibility 14

  15. Slide 15: Sustainability is a Key Focus – Why?

    Sustainability is a Key Focus – Why? Companies that focus on sustainability and anchor sustainability within the strategies and activities of their businesses, create a competitive advantage for their business, while working towards addressing social, environmental and ethical issues. 15

  16. Slide 16: Sustainability is a Key Focus – Why?

    Sustainability is a Key Focus – Why?  China is an example of a market where the consumer is demanding sustainable and safe food: increasing portion of regular spending (~87%) is on food rather than non-food products  Characteristics of food deemed most important by consumers in China Scale: 1  5

  17. Slide 17: Sustainable Rice Platform (SRP)

    Sustainable Rice Platform (SRP) 17

  18. Slide 18: Questions

    Questions 18

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