Ricegrowers Ltd. Class B · ASX:SGLLV
Ricegrowers Ltd. Class B — Shareholder Meeting (August 2011)
23 slides from Ricegrowers Ltd. Class B's shareholder meeting presentation, Aug 26, 2011
Slide 1: 2011 Annual General Meeting
2011 Annual General Meeting Gary Helou CEO Report 26 August 2011
Slide 2: AGM Agenda
AGM Agenda • C10 Review - Group highlights - Full year results • C11 Outlook - World rice trade update • Closing Comments and Questions 2
Slide 3: Australian Paddy Production
Australian Paddy Production Paddy Delivered, ‘000 tons 1,744 Paddy Delivered, ‘000 tons 1,381 1,241 1,088 1,038 800 529 390 305 167 205 66 19 99 00 01 02 03 04 05 06 07 08 C09 C10 C11 Crop Years 3
Slide 4: C2010 Review
C2010 Review • May 10 – April 11 = 205KT • Continued reliance on global sourcing in our last year of drought • Ongoing innovations in Rice Foods • Preparation for the return to a normal crop was a major focus 4
Slide 5: C10 Marketing Highlights - Domestic
C10 Marketing Highlights - Domestic • Total volume share of rice category is 59% – SunRice volume share is 58% • Microwave Rice is 18% of total rice category in value – SunRice volume share is 62.7% • Rice Cakes: SunRice volume share is 55% • Ready-to-Go Meals: SunRice volume share is 62% * Aztec Mo
Slide 6: C10 Marketing Highlights - Domestic
C10 Marketing Highlights - Domestic • Successful extension of microwave range to include Quick Cups • Strong growth in Ready-to-Go Meals segment, incorporating the launch of new Indian meals • New sweet flavoured rice cakes released, creating new snacking opportunities • Promotional arrangements est
Slide 7: C10 Marketing Highlights - International
C10 Marketing Highlights - International Middle East • Maintained consistent sales and share in Levant and Gulf regions United States • Achieved national accounts listings for HINODE Pacific • Sunwhite and Island Sun performed well, despite strong competition Asia • Growth in Double Ram and Kangaroo
Slide 8: C10 Operational Highlights
C10 Operational Highlights • Milling – Deniliquin Mill reopened and ramped up ready to supply local and international markets, including Japan, Middle East and the Pacific • Supply Chain – Significant initiatives were implemented to support the return to a normal crop and the reopening of Deniliquin
Slide 9: C10 Operational Highlights (cont)
C10 Operational Highlights (cont) • Safety and Environment – We continued to implement world class safety systems. Our Aqaba facility was also awarded a Certificate of Excellence in OH&S • Quality – Deniliquin Mill achieved HACCP and AQIS accreditation. Our continuous improvement initiatives drove f
Slide 10: Business Highlights
Business Highlights $902 $817 $809 $77 $710 $15 $12 $13 co7 cos cog c10 co7 cos cog C10 Revenue (millions) Net Profit (millions) The Rice Food Experts
Slide 11: Business Highlights (cont)
Business Highlights (cont) • Net profit of $13.1 million, up 11.5% on last year • Revenue of $809 million, down only 1% on last year • A fully franked dividend of 18 cents per B Class Share • Premium Pool paddy price of $550 per tonne • Number Two Pool paddy price of $320 per tonne • Increased capit
Slide 12: Crop C11 Outlook
Crop C11 Outlook 12
Slide 13: C11 Outlook
C11 Outlook • 800 KT delivered • Good outlook for water availability for C12 and C13 • Sales and Marketing Team has been set aggressive targets to secure new business and reclaim markets lost during the drought 13
Slide 14: World Rice Stocks
World Rice Stocks Average Global Consumption ~445 MMT 160 40 140 30 120 Million Tons 100 20 % 80 10 60 40 0 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11e 11/12p Ending Stocks Stocks-to-use ratio USDA WASDE July 2011 (Milled Basis) 14
Slide 15: Long Grain Global Price Benchmarks
Long Grain Global Price Benchmarks US$ / metric ton 15
Slide 16: Global Factors Affecting Long Grain Rice
Global Factors Affecting Long Grain Rice • Surplus rice in the world at present....but Governments are constricting world trade: – India has over 25 million tons of stock with a large crop to be harvested in October, but the Government is limiting exports due to concerns about domestic food inflatio
Slide 17: Medium Grain Global Rice Price Benchmarks
Medium Grain Global Rice Price Benchmarks US$ / metric ton 17
Slide 18: Global Factors Affecting Medium Grain Rice
Global Factors Affecting Medium Grain Rice • Australia and California are currently the only sources of Medium Grain in world trade: – China is limiting exports to key WTO markets – Japan and Korea – Egypt has stopped exports – the political situation will take some time to resolve – Upcoming crop i
Slide 19: Foreign Exchange Impact
Foreign Exchange Impact • For example, an export selling price of US$850 per tonne was A$1,417 per tonne October 2008 ( fx low of 0.60 ) and is A$773 per tonne at an exchange rate of 1.10 US$/A$ A$/ton 1.2 1.2 1600 A$1,417 1400 1.0 1.0 1200 0.8 0.8 1000 0.6 0.6 800 A$773 600 0.4 0.4 400 0.2 0.2 200
Slide 20: C11 Outlook – Brands and Markets
C11 Outlook – Brands and Markets • Recover market share in traditional markets: – SunRice has aggressively targeted its traditional markets to recover share from California and other suppliers – This marketing commitment has a high cost – SunRice is maximising sales in a market where prices continue
Slide 21: C11 Outlook – Brands and Markets (cont)
C11 Outlook – Brands and Markets (cont) • Support of the growers is essential to recover these markets: – Producing the varieties in the quantities based on market demand is critical to maximise the price e.g. Reiziq variety – Early harvest helps better manage the milling and marketing program in th
Slide 22: Our Brands....
Our Brands.... mn HUH on ST GF go OS =—™ solrais TASTIC _ ES tino 6 2 The Rice Food Experts
Slide 23: Closing Comments and Questions
Closing Comments and Questions
Ricegrowers Limited (SunRice) — Shareholder Meeting (August 2011) on 6ix